System Dynamics
Systems Thinking

Knowledge Center

The study and management of complex feedback. Explanation of Systems Thinking of Forrester. System Dynamics.

All about System Dynamics & Systems Thinking

Join now. Completely free.

All about System Dynamics & Systems Thinking. Join now. Completely free.

What is Systems Thinking? Definition

Systems Thinking is an approach for studying and managing complex feedback systems, such as one finds in corporations and other social systems. In fact it has been used to describe practically every sort of feedback system.

System Dynamics is more or less the same as Systems Thinking, but emphasizes the usage of computer-simulation tools.

The term System means an interdependent group of things forming a unified pattern. Feedback refers to the situation of X affecting Y, and Y in turn affecting X. Perhaps through a chain of causes and effects. One cannot study the link between X and Y and, independently, the link between Y and X and predict how the system will behave. Only the study of the whole feedback system will lead to correct results.

What is System Dynamics?

System Dynamics is based on Systems Thinking, but takes the additional steps of constructing and testing a computer simulation model. The System Dynamics field developed initially from the book "Industrial Dynamics" of Jay W. Forrester.

Steps in the System Dynamics methodology

Identify a problem,
Develop a dynamic hypothesis explaining the cause of the problem,
Build a computer simulation model of the system at the root of the problem,
Test the model to be certain that it reproduces the behavior seen in the real world,
Devise and test in the model alternative policies that alleviate the problem,
Implement the solution.

Often these steps have to be reviewed and refined, going back towards an earlier step. For instance, the first problem identified may be only a symptom of a still greater problem.

Typical applications of System Dynamics

strategy and corporate planning
business process development
public management and policy
biological and medical modeling
energy and the environment
theory development in the natural and social sciences
dynamic decision making
complex nonlinear dynamics

Book: John Sterman - Business Dynamics: Systems Thinking.. -

Special Interest Group - System Dynamics & Systems Thinking

Special Interest Group (351 members)

Forum - System Dynamics & Systems Thinking

Discussions about System Dynamics & Systems Thinking.

	Soft, Hard and Viable Systems Three systems methods are normally used: 1. Soft systems method - complex messy situations 2. Hard (...)

	Systems Thinking is Considering Issues Holistically Systems Methodology can aid our analysis of organisations because its key assumption is to consider (...)

	Nonlinear Dynamical Systems Nonlinear dynamical systems can be linearized, if the relationship between elements of this is infor (...)

	Strategy > SD > Performance? Could we use System Dynamics to assess if a firm's strategy is responsible for its performance? (...)

Best Practices - System Dynamics & Systems Thinking

Here you find the most valuable discussions from the past.

	Complexity in Systems Approach Complexity exists due to a multitude of worldviews held by organisational members and external stake (...)

	Value of System Approach What value does the system approach have to understanding and analyzing behaviour in oganisations? (...)

	Systems Thinking Schools and Approaches - PLANNING SCHOOL - systems thinking is a holistic approach to planning complex systems. Pioneers of (...)

Expert Tips - System Dynamics & Systems Thinking

Here you will find advices by experts.

	Complex Adaptive Systems Organizational Theory (...)

	Structure your Organization at the Edge of Chaos Organizational Development (...)

	How to Use Counterintuition to Fight 5 Frequent Decision Making Errors Strategic Decision Making, Dealing with Complexity, Dealing with Uncertainty, Strategy (...)

	Complexity Principles Organizational theory (...)

Resources - System Dynamics & Systems Thinking

Here you find powerpoint presentations, micro-learning videos and further information sources.

	Systems, Systems Thinking and Soft System Methodology (SSM) Systems Thinking, Soft System Methodology, SSM, Checkland (...)

	Are you Facing Complexity? Systems Thinking 101 Systems Thinking, Dealing with Complexity, Strategic Complexity (...)

	Systems Thinking for Leaders Systems Thinking, Leadership, Gestalt Theory, Complexity (...)

	Introduction Into Systems Thinking Systems Thinking, Communication (...)

	Simple, Complicated, Complex and Chaotic Decision Making Contexts Decision Making, Situations, Context, Types, Complex Circumstances, Chaos, Crisis Management (...)

	Efficiency of Mass Communication Retail Communication (...)

More Management Methods, Models and Theory

Special Interest Group Leader

You here? Sign up for free