insights into its theoretical and practical implications. The 4-layer modern system comprises instrumentation, information systems, business intelligence, and gamification, which are the core components of a smart system. Each layer plays a crucial role in data collection, information processing, business analysis, and gamification implementation at the top layer. The integration of these layers forms a solid foundation for the development of efficient and innovative smart systems. In addition, activity theory is utilized to analyze the interactions among users, technology, and the environment within the context of smart systems. From an ontology standpoint, this research views smart systems as complex socio-technical entities involving human, technological, and process aspects. In terms of epistemology, a multidisciplinary approach is employed to combine knowledge from areas such as computer science, information systems, and human-computer interaction. In the realm of axiology, this study recognizes the ethical values and social implications that must be considered in the development and implementation of smart systems. By integrating the new smart system paradigm using the 4-layer modern systems and activity theory, this research contributes to the understanding of the dynamics and development potential of smart systems. The results of this study can provide guidance for practitioners, researchers, and decision-makers in developing more effective, efficient, and user-oriented smart systems in various contexts.