Business Dynamics
Business Dynamics- Ventana Systems
Name:
Institution:
28th March, 2013.
Business Dynamics: Systems Thinking and Modelling for a Complex World
Introduction
The problems that arise today often do so as a result of the resolutions that were arrived at yesterday. Social systems today suffer from what is known as policy resistance. This is the tendency for interventions implemented with a good will to be defeated by the reactions or retaliatory responses of the system to the same intervention. As such, System Dynamics is a tool that is designed to help learn about the configurations or structures and dynamics that are associated with complex systems in which we are surrounded, design high control policies for continuous improvement, and fasten or increase successful applications and transformation (Sterman, 2000). These systems are built on the theoretical application of engineering control and the present paradigm of non-linear dynamical systems. Dynamics of a system entails the advancement of official and recognized models and managing flight simulators to represent complex dynamics, and to create a context for discovery, learning and design of policies (Sterman, 2000). Contrary to the problems linked to engineering, if any exists, the human systems portray characteristic challenges that include issues that cross boundaries of discipline, long time perspectives, the desire to design reliable human behaviour models, and the bigger complicatedness of experimental or practical testing.
System Dynamics System Dynamics are associated with the say, “And it will fall out as in a complication of diseases, that by applying a remedy to one sore, you will provoke another; and that which removes the one ill symptom produces others”, (More, 1516). This shows that policies that are designed in business to help solve a problem, may later after implementation lead to other problems, policy resistance (Sterman, 2000). As such, any individual in a business cannot
Name:
Institution:
28th March, 2013.
Business Dynamics: Systems Thinking and Modelling for a Complex World
Introduction
The problems that arise today often do so as a result of the resolutions that were arrived at yesterday. Social systems today suffer from what is known as policy resistance. This is the tendency for interventions implemented with a good will to be defeated by the reactions or retaliatory responses of the system to the same intervention. As such, System Dynamics is a tool that is designed to help learn about the configurations or structures and dynamics that are associated with complex systems in which we are surrounded, design high control policies for continuous improvement, and fasten or increase successful applications and transformation (Sterman, 2000). These systems are built on the theoretical application of engineering control and the present paradigm of non-linear dynamical systems. Dynamics of a system entails the advancement of official and recognized models and managing flight simulators to represent complex dynamics, and to create a context for discovery, learning and design of policies (Sterman, 2000). Contrary to the problems linked to engineering, if any exists, the human systems portray characteristic challenges that include issues that cross boundaries of discipline, long time perspectives, the desire to design reliable human behaviour models, and the bigger complicatedness of experimental or practical testing.
System Dynamics System Dynamics are associated with the say, “And it will fall out as in a complication of diseases, that by applying a remedy to one sore, you will provoke another; and that which removes the one ill symptom produces others”, (More, 1516). This shows that policies that are designed in business to help solve a problem, may later after implementation lead to other problems, policy resistance (Sterman, 2000). As such, any individual in a business cannot
References: Sterman, J. (1989a) Modeling managerial behavior: Misperceptions of feedback in a dynamic decision making experiment, Management Science 35(3), 321-339. Sterman, J. (1989b). Misperceptions of feedback in dynamic decision making. Organizational Behavior and Human Decision Processes 43(3), 301-335. Sterman, J. (1989c). Deterministic chaos in an experimental economic system. Journal of Economic Behaviour and Organization 12, pp. 1-28. Sterman, J. (2000) Business Dynamics: Systems Thinking and Modeling for a Complex World. Boston: Irwin/McGraw-Hill. Senge, P. (1990) The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Doubleday. Morecroft, J. and J. Sterman, (eds.) (1994) Modeling for Learning Organizations. Portland, OR: Productivity Press.