System Dynamics
System dynamics (SD) deals with understanding how complex systems change over time. SD studies the world around us without breaking it into small parts. It focuses on the interrelations between the parts.
The world is viewed on three levels:
The dynamic structure is studied by logical cause-effect chains; the most essential parts of the structure are those that form closed feedback loops.
Systems
create their own future:
“ We have finally found the enemy and it is us”
System Dynamics was originally developed by Professor Jay W. Forrester at the MIT to understand the interactions of human decision-making. System Dynamics was popularized by Peter Senge in his book "The Fifth Discipline". System Dynamics and Systems Thinking are based on Feedback Control Engineering disciplines (Process Control, system theory)
Our approach does not accept any industry belief, management philosophy or economic theory as a fact without a rigorous proof. This proof consists of accurate and reliable data, solid reasoning and sound logic. Special effort is required to separate industry “facts” from industry “beliefs” -- no matter how long, or how widely held the beliefs are.
At its heart, the method is based upon accurately portraying the existence and role of a “dynamic structure.” It includes all the physical attributes of the industry, but has also other, behavioral aspects, such as the market rules, which are very important part of the dynamic structure.
Copyright © STE Oy 2007