Author: Brian M. Wallenhorst

Overview

In his book, The Fifth Discipline, Peter Senge states, "Systems thinking is a conceptual framework to make the full patterns clearer, and to help us see how to change them effectively."1 This notion has provided a backbone for system dynamics modeling as it provides a powerful methodology for solving complex, multi-faceted problems. This methodology focuses on the interrelationships of all components in a complete system and how the interactions create behavior. A systems model can be used as a predictive tool to understand the effects of probabilistic uncertainty in a given system. Models are developed to provide the user with the ability to create "what-if" scenarios that reflect possible shocks to the system, and to allow the user to develop an understanding of the resulting behavior. System dynamics modeling in the professional arena allows for in-depth understanding of how systems work and can help facilitate cost-effective responses. The range of applications is diverse, from learning systems to policy analysis to business competitive analysis.