Again the term “observation” derives its meaning from the same Latin root word “observare”
http://www.etymonline.com/index.php?allowed_in_frame=0&search=observe
That is the nature of the concept of observation, if perhaps you mean to employ some other concept then you should find a word more suited to that concept.
For example a traffic sign noting the speed limit can be observed (taking note of what the limit is). That limit itself can be observed (the speed can be kept at or below that limit). Even observations can be made about the applicability of that limit (that it may be too fast or too slow for the general road conditions). Whatever makes or can make such observations is by definition an observer. It doesn’t matter how else you might classify them, alive, not alive, human, robotic, conscious or not conscious, the simple ascription that something makes an observation also makes it an observer in that observation.
In the material example I gave before each bar is observer to the other and itself (as some of its own IR is reflected back). Which is observer and which is observed in an observation is generally simply a matter of perspective, or more specifically in terms of relative the selection of a reference frame. For self-observation both observer and the observed are the same thing.