Application
System dynamics has found application in a wide range of areas, for example population, ecological and economic systems, which usually interact strongly with each other.
System dynamics have various "back of the envelope" management applications. They are a potent tool to:
- Teach system thinking reflexes to persons being coached
- Analyze and compare assumptions and mental models about the way things work
- Gain qualitative insight into the workings of a system or the consequences of a decision
- Recognize archetypes of dysfunctional systems in everyday practice
Computer software is used to simulate a system dynamics model of the situation being studied. Running "what if" simulations to test certain policies on such a model can greatly aid in understanding how the system changes over time. System dynamics is very similar to systems thinking and constructs the same causal loop diagrams of systems with feedback. However, system dynamics typically goes further and utilises simulation to study the behaviour of systems and the impact of alternative policies.
System dynamics has been used to investigate resource dependencies, and resulting problems, in product development.
Read more about this topic: System Dynamics
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