System Dynamics


The origins of systems dynamics and its focus on explaining 'how things change through time’ is presented alongside case study evidence from various industries and sectors, of how companies have used system dynamics in practice.

Technique Overview

System Dynamics

System Dynamics Definition

System Dynamics (SD) combines theory, methods and philosophy to explain system behaviour in a wide range of disciplines such as business management, politics, economics, engineering, environmental change, medicine and other fields. System dynamics methodology provides a framework for analysing how actions and reactions cause and influence each other, and how and why elements and processes in the system change. In this way, it allows interested parties to understand how the system works and to predict how situations might develop over time (Forrester, 1991).

System Dynamics Description *

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Business Evidence

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Examples of System Dynamics *

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Business Application

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Measures of System Dynamics *

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Professional Tools

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Further Reading

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System Dynamics References (4 of up to 20) *

  • Angerhofer, B.J. and Angelides, M.C. (2000) System Dynamics Modelling in Supply Chain Management: Research Review, Published in the proceedings of the 32nd Winter Simulation Conference.
  • Cavana, R. Y., and Clifford, L. V. (2006) Demonstrating the Utility of System Dynamics for Public Policy Analysis in New Zealand: The Case of Excise Tax Policy on Tobacco, System Dynamics Review, Vol. 22 (4), pp. 321-348.
  • Dangelico, R. M., Garavelli, A. C. and Petruzzelli, A. M. (2010) A System Dynamics Model to Analyze Technology Districts’ Evolution in a Knowledge-Based Perspective, Technovation, Vol. 30 (2), pp. 142-53.
  • Engelen, S., Meersman, H. and Voorde, E. (2006) Using System Dynamics in Maritime Economics: An Endogenous Decision Model for Ship Owners in the Dry Bulk Sector, Maritime Policy and Management, Vol. 33 (2), pp. 141-158.

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