This tutorial discusses the layered approach to system design and improvement. It shows the way to a process that is more agile than the traditional plan driven methods and, at the same time, maintains the disciplined system view avoiding the pitfalls of component engineering. We will discuss the concept of systems thinking and approach. We will see the importance of understanding the business process components of the system. We will explore the delivery of capability that is value-adding for the customer in a meaningful time frame without losing sight of the system context.