This paper concerns two system-based approached for organizational intervention - soft system methodology (SSM) and system dynamics (SD). After a brief description of the theoretical and methodological assumptions of the two a partial critique is presented. SSM is strong on the generation and representation of diverse perspectives, or Weltanschauugen and attempts to deal with the socio-political elements of an intervention. But SSM is weak in ensuring what is termed here ‘dynamics coherence’: consistency between the instinctive behavior resulting form proposed changes and behaviour deduced from ideas on causal structure. Hence, in situations where causal structure and instinctive behaviour are meaningful, the intervention is blind to the dynamic complexity of the proposed changes. SD examines the causal structures capable of explaining and exploring the dynamics interactions of different policies. However, whilst SD emphasises the need for a clear issue focus for a study, the approach has little theory regarding the generation and explicit representation of diverse issues. A proposal is made regarding the dove-tailing of the two to form a synthesis. After an SSM intervention a second stage is described. This continues the socio-political analysis and draws on the previous Weltanschauuugen. It operates within a new Weltanschauuug which values dynamic consistency of the holon which is able to represent the proposed changes. A model of this holon is constructed using SD to represent causal structure and deduce behavior. Using SD methods, the changes are thus rendered 'systemically desirable' in the additional sense that dynamic consistency has been confirmed. With due regard to respective theories and the preservation of ontological consistency, 'holon dynamics is utilized to describe the process. This paper closes with reflections on the proposed synthesis, particular emphasis being attached to the need for theoretical consistency when mixing tools.
What other activities and techniques exist that are interest to system dynamicists? Are there possibilities for system dynamics itself to contribute to them? These questions have been of interest to the authors for some time and now the 1994 System Dynamics conference is helping to advance the debate. This paper tries to help things along. We consider two areas of interest: the problem structuring techniques of ‘soft’ operational research and the wide range of system thinking concepts employed in the systems movement. Both involve valuable ideas and experiences. Both have a more European-orientated perspective, in contrast to the mainly-US viewpoint of system dynamics. In this two-part paper we therefore offer a selection from the literature of the two as well as brief annotations.
This paper explores the social theories implicit in past, present, and future (envisaged) SD practice. Previous work on the theory of SD is first reviewed. A framework for studying social theories is then introduced; the assumptions underlying its axes discussed and the four paradigms of social theory which these yield described. Various grouping of SD practice are then defined and these are placed in the framework, primarily within functionalist sociology. Motivated by alternative paradigms, two new and potentially productive forms of practice are envisaged. The term “holon dynamics” is proposed to describe them both. These are subjectivist and they are described briefly along with the new type of research approach necessary to advance them.
What other activities and techniques exist that are interest to system dynamicists? Are there possibilities for system dynamics itself to contribute to them? These questions have been of interest to the authors for some time and now the 1994 System Dynamics Conference is helping to advance the debate. This paper tries to help things along.
Ongoing research at the Rockefeller College is exploring the ability of subjects in a computer-based management laboratory to manage the implementation of welfare reform. Reflection on the design of such research have pushed us to develop a firmer theoretical foundation to guide our research on distinguishable submodels focused on ends (goals), means (strategies, tactics, policy levers) and connection between them (the means/ends model). These distinctions, coupled with a view of human judgment from Brunswikean psychology, lead to a rich integrated theory of perception, planning, actions, and learning in complex dynamic feedback systems. From that theory we derive classes of testable research hypotheses about decisions making in dynamic environment in particular, design logic and operator logic hypotheses that have serious implications for system dynamics research and practice. The operator logic hypothesis suggests that system intervention focused on understanding detailed system structure will have little impact if they are not captured in easy-to-digest chunks of strategic insights that managers can integrate into relatively simple means-ends associations. Compounding the difficulties of mental research is the likelihood that individuals’ mental models can not be directly elicited without distortion.
This paper addresses the dynamics of energy development projects. Nationalization has repeatedly squandered the economic, physical and mental resources of large joint-ventures between multinational oil companies, and developing countries. A deteriorating relationship between multinational oil (MNOC) management and regional hosts consistently leads to nationalization. This cultural gulf between corporation and regional host, while existent in many regions is most significant in high conflict areas, which is why petroleum managers, with most of their experience in low conflict areas, have mostly ignored and cultural gulf. To form strong relationships that bridge the cultural gulf requires cultural sensitivity. Neighbor conflict studies show this problem to be most prevalent in developing countries, but also existent in emerging areas such as offshore California, Florida and Alaska. The proposed microworld trains first world petroleum managers, through cause-effect analysis, that while cultural-sensitivity to the developing country's need increases marginal costs, it's lower the probability of nationalization, generating positive project economics and raising expected payouts from extended project life.
This paper describes a simple model of a manufacturing firm in which a successful productivity improvement program is implemented. This model is an attempt to generalize an earlier theory developed to explain one company's paradoxical experience with Total Quality Management (Kofman, Repenning and Sterman, 1994). The model describes a dynamic hypothesis concerning the firm's financial performance. In this model the Half-life Equation suggested by Schneiderman (Schneiderman 1988) is used to determine the maximum rate of improvement. The spread of skills and commitment is modeled as a diffusion process, and the allocation of resources to support that commitment is represented as a dynamic adjustment process with a multi-dimensional utility function and fixed resources constraint. This formulation, with the assumption of locally rational decision rules, results in differential rates of improvement in the capacity and demand generating areas of the firm. This differential, when coupled with traditional accounting, pricing, and human resource policies, can create unanticipated side effects that result in sub-standard performance or failure of the program.
This paper examines some of the experience of using business simulations, for management teaching, in an academic environment. It is particularly concerned with simulations which promote groups and collaborative working, and which encourage students to review their interaction within the group. Using this experience, and examining the nature of managers’ work in business, it discusses the extension of these principles to in-service management training. In the business context, the emphasis on group work translates to an emphasis on enabling managers to recognize and use their individual skills, and personalities, to the best effect. Management training, especially in the UK, has long been regarded as a luxury, only to be indulged in where money and time are plentiful. To encourage the use of simulations in business, some ideas for evaluation of their effectiveness in training are also discussed.
Research regarding the examination and evaluation of work climate in understanding organizational functioning has enabled us to formulate strategies that not only improve the behavioral aspects in institutional functioning, but also result in more effective organizational performance. While sufficient studies exist on examination of work climate for industrial, service and allied sectors, relatively few researchers have considered government-funded Research and Development (R&D) institutions as their unit of study. Further, most of the studies reported have been conducted for scientists working in R&D units in developed countries. System Dynamics methodology as applicable to studying organizational behavior have found limited acknowledgement in literature. Moreover, most of these studies are based upon theoretical understanding of the subject with little empirical support. The present study is an offshoot of a serious of studies which were undertaken in the National Institute of Science Technology and Development Studies on different aspects of R&D Management with primary emphasis on organizational behavior. An attempt is made here to model the work climate of an R&D laboratory using the System Dynamics methodology with support from the studies carried out earlier as mentioned above. The motivational conditions prevailing in an R&D laboratory was studied in order to understand the factors and forces which are necessary to provide a climate which will motivate the scientists. Likewise, factors and forces that contribute significantly to the overall satisfaction with the work group were also studied. The question whether operating within an environment as is prevailing with the R&D laboratory stimulating or a debilitating effect on the work enthusiasm of the scientists were addressed to them. The aspect of R&D effectiveness of the research group was also probed into and the factors and forces contributing to the same identified. A detailed flow diagram was then developed relating to above factors to the project flow dynamics. Trail runs of the model using the DYMOSIM package have been carried out and project-related data collection are currently in progress to evaluate the constants and multiplier factors and for validation of the model structure.
The increasing rate of change to which organizations are exposed, along with the growing complexity of projects and of the environment, has highlighted some weaknesses of traditional approaches in coping with the strategic issues of project management. System Dynamics models provide a useful tool for a more systematic management of these strategic issues. There have been a number of applications of System Dynamics in project management; this experience permits a tentative comparison with the more traditional approaches and to examine the particular benefits of system dynamics. The conflicts of options between their supporters stress the different perspective underlying the two approaches. The comparison of the two approaches is focused on the "view" of the project management process. Although they both assume a system perspective, identifying a cycle of planning, implementation and control, the level of detail in which they consider the project system is different. Traditional models support the project manager in the operational problems within the process, while System Dynamics models provide more strategic insights and understanding about the effectiveness of different managerial policies. For effective project management both operational and strategic issues have to be handled properly. This paper suggests an approach to combining the lessons of system dynamics and traditional models within a single, integrated project management methodology.
This paper describes a way of using systems thinking concepts and a system dynamic model to help clients design strategic approach. The client, a large information services corporation, knows the market it is serving now and the market it wants to serve in the future. It also knows the core competencies necessary to meet the benefits needed in each market. A can-do attitude and limited time for reflection limit the client's ability to design the policies necessary to achieve this strategic transition. Systems thinking concepts help the client understand the urgency of the situation and the difficulties faced in achieving a strategic transition. The model is designed around the client’s perception of the corporation's present and desired market, and around Gary Hamel's strategy concepts. It is not designed to answer a specific question, but rather to allow the client to address strategic issues. The model incorporates every implied casual link that the developer could collect from diverse constituencies within the company to increase the chances that users will find topics from which to build a discussion. Reports are made to look like corporate reports to ground the model in the client’s mind. The model runs on MicroWorlds. It is used like other existing management flight simulators.
In the study presented here we have modeled a firm with various production sections managed along traditional lines. We also include in the model the structural changes necessary for the company to be managed according to OPT. It is possible to work with the two philosophies alternately. We have thus created a tool which allows us to check the validity of the various basic rules from which professor Goldratt works in developing his theory, and also to establish its strengths and/or possible weaknesses for different business situations.
Although there have been many System Dynamics models written in DYNAMO, which are the common property in the society now, there are many obstacles recognized in studying these models using STELLA. This paper shows a conversion table of the basic DYNAMO rules into STELLA II in order to overcome these obstacles. First, we refer to the recent graduate increase of the papers System Dynamics Review, etc. which used STELLA I or STELLA II, and then we expect STELLA II for windows will be used more for model building in the future. Second, we refer to the general features of five differences between DYNAMO and STELLA II in terms of terminology, an equation, a time script, a time related character, and the relationship of Level and Rate (or stock and Flow), and then we refer to one similarity in terms of value chain. Third we show a comparison table of DYNAMO functions with STELLA II functions according to the categories of Delay and Smooth Functions, Logical Functions, Table Functions, and then we show a conversion table of DYNAMO functions into STELLA II functions using simple examples respectively. In addition, we show the applications of Sub-Model and Space Compression Object (SCO) of STELLA II functions, which are the new methods available in Stella II (Mac v3.0.4, 1993). In conclusion, we successfully convert the model of Saturday Evening Post written in DYNAMO (Hall 1973) into a model in STELLA II according to these our findings in order to estimate them.
The current interest in learning organizations makes clear the need for more open, more collaborative communication practices in the workplace. "To compete in today's fast moving business environment," says one corporate communication expert, "organization must create a culture of shared understanding" (Locke, 1992,245). However, a major obstacle to facilitating open communication and the generation of new ideas required in learning organizations is the inadequacy of traditional communication models. These models tend to use information for control in organizations; to see information as signals or bits separate from meaning; to see the brain as analogous to a computer; and to seek accurate transmission and replication of messages rather than creation of new information. The purpose of this paper is to show that the confluence model of negotiating differences in interpretation is better suited to understanding interpersonal communication than the traditional cybernetic and information theory models based on Wiener and Shannon and Weaver. Furthermore, it argues that information for control is an outdated model that binds us to old scripts, to replicating traditional patterns rather than creating new ones.
In recent years an important component of the research agenda in the field of system dynamics has focused on the definition and use of archetypal structures. Although the primary objective of such research is to develop an intrinsic set of system structures that can be used to categorize insights in dynamic systems, the ultimate goal is to provide an effective mechanism by which information can be transferred from a system dynamics model to a client in an easy to comprehend manner. To date, a number of archetypal structures have been presented by Richmond, Senge, and Wolstenholme. This paper discusses two systems archetypes proposed by Senge: "shifting the burden" and "fixes that fail." By developing sets of precise code and simulating the models, the authors document the written descriptions of these two archetypal structures and explore the extent to which the structures behave as expected. The authors demonstrate that the development of formal models for systems archetypes is not an easy task.
This paper systematically presents, with the help of flow diagrams, the development of a system dynamics model for an activated sludge plant which is used to treat the waste water biologically under aerobic conditions. Three different physical flows (hydraulic flow, biomass flow and flow of substrate) are considered in the model. The model is simulated with the help of IGRASP. The transient and steady-state behaviour of the growth of biomass, sludge production and the treatment efficiency, and their sensitivity to variations of physical (both environmental and physical) parameters are studied in detail. Strategies for recirculation of activated biomass in the treatment plant are evaluated. At the end, the paper indicates the merit of system dynamics modeling as a tool for conceptualizing relationships, integrating knowledge about separate parts and evaluating control strategies in environmental systems.
All socioeconomic systems are characterised by a complexity of interacting influence patterns that would usually incorporate institutional, environmental, technological, and behavioural relationships. The challenge for management is to develop a sufficiently detailed understanding of these influences in order to develop effective opportunities and mechanism for control. This challenge is heightened by the tradition of 'partial' or non-holistic thinking that continues as the conventional wisdom in the management field. Though the imperative for holistic thinking is intuitively supported by most mangers, the difficulties associated with implementing these ideas into management practice may be perceived as being 'too hard' or 'open ended' for practical application. System dynamics modelling is an appropriate process for developing an holistic understanding of any socio economic system. A realistic model can be applied to the development of management strategies and decision support. To a novice modeller, however, model construction can be intimidating process lacking in the kind of systematic procedural support seemingly offered by the more conventional, non-holistic management school. To a large degree, the integration of the qualitative social fabric matrix with quantitative system dynamics presents a more system modelling process for practical application. The proposed amalgamation also yields some added conceptual insights into the nature of management processes and prospects for control.
A firm's end-product waste problem motivated us to investigate the structure underlying a polymer coating process (PCP) by combining system dynamics simulation modeling with statistical process control (SPC). Our bipartisan approach proved to be rather powerful: not only it provides insight about the negative feedback-loop structure between temperature distribution and polymer thickness but also allows assessing the potential affects of leverage points on the stability of the polymer manufacturing process directly from the process capability and control charts. The new knowledge gained yields a dramatic improvement in the firm's end-product quality and productivity. Worth nothing is our transforming of the heat control equations--which correspond to the gelling operations of polymer foam and be solved using standard Runge-Kutta methods. Consequently, our essay illustrates how to effectively handle parabolic partial differential equations using conventional system dynamics simulation software.
To comply with accreditation standards of the American Association of Collegiate Schools of Business (AACSB), B-schools in the United States have to maintain a low student to faculty ratio. AACSB standards also affect the process of reviewing full-time faculty (FTF) members for promotion and tenure (P&T), so that the P&T review process safeguards the continued development of educational and intellectual activities in US B-schools. AACSB requires the FTF of its members to enhance the reputation of their B-schools through research and publications. This essay extends the work of Georgantzas, Hamilton, & Drobnis (1994) on the implementation of AACSB standards through feedback-loop planning, showing how a system dynamics simulation model complete with computed scenarios has been helping a small but prestigious B-school assess its future in term of student to faculty ratios.
This abstract extends the merger and acquisition (M&A) model of Georgantzas, Schmid, & Walton (1994), showing the dynamic evolution of markets into hierarchies or other transactional exchange governance (TEG) forms resulting from the creation of a climate of trust and its effect on the internalization cost of control. The extended M&A model offsets the shortcomings of transaction cost economics (TCE) and points to the potentially rich contribution of system dynamics to exploring governance structures beyond the ideal-type forms of markets and hierarchies that dominate the TCE literature.
The CC- STADUS project has trained more than eighty pre- college science, mathematics and social science teachers in the basics of computer modeling and system dynamics. In the process of teaching these teachers to build single content area and cross- curricular models, the project has experience some major successes and a variety of problems. More than twenty- five major cross- curricular models and many more single discipline models have been developed by the participants, working both individually and in teams. The training which was provided has evolved continuously in response to feedback from the teachers and formal evaluation. Most major difficulties were eliminated in the second year, allowing consideration of other less obvious problems. The third and final year of the program includes substantial revisions in the focus of the initial training, topics presented by guest speakers, the formation of modeling teams, and the amount of time dedicated to construction of cross- curricular models. Similar changes have been planned for the assessment and support of participants in the year following the training. Consideration of the successes and problems encountered by the CC-STADUS staff can provide valuable insights to those attempting training of pre-college teachers in modeling or system dynamics. A variety of key factors have been identified that can enhance the effectiveness of the training and the subsequent support provided during the academic year.
This study aims at exploring the polices for the order arrival rate from decision making bodies in order to smooth down the activities of production by lowering the set up time of machines. The impact of scheduling techniques is examined and production and market operations are observed carefully in order to solve the problem of reduced proportion of machine running time. Everything seems to be okey but the proportion of machine running time has the declining trend. Especially, the production and market operations are considered with the positive and negative feedback loops that influence the proportion of machine running time. Ultimately, the decision is made to solve the problem by the construction of formal System Dynamics Model to analyze the interaction of different components of the company. The model provides a detailed, integrated framework among separate facets of the issue addressed representing the past behavior of the production sector. Experimentation with the model attempts to identify the appropriate policies concerning proportion of machine running time.
The United Kingdom National Health Services (NHS) delivers 95% of the country's health care. It is a public sector organization, which delivers health care free of charge at the point of access. With the exception of emergency services, patients cannot refer themselves directly to NHS hospitals. Instead they must be referred by a family practitioner, who acts on the "gatekeeper" to hospitals health care. If referrals give rise to excess demand, rationing takes place in the form of waiting list for non- emergency procedures. There is a small private sector which is used by some patients who have the means to bypass the NHS queues.
In the contemporary era, the subjects of technology transfer (e.g. a nation or an enterprise) exist as a non- linear open system of disequilibrium. However, while we step into the 21st century, the environment in which the said system operated will take place great changes. There are some new features emerged from technology transfer and it will encounter with a range of new problems. The traditional theories guiding technology transfer will have met lots of challenges. This paper brings forward a new theory that is adaptable to need of the new century. In this paper, we view the opportunity as its core.
The main objective of this research is to construct an interactive dynamic simulation model, on which a range of problems concerning the academic aspects of a university management system can be analyzed and certain policies for overcoming these problems can be tested. More specifically, the model focuses on long-term strategic university problems that are dynamic and persistent in nature, such as growing student-faculty ratios, poor teaching quality, low research productivity. The model generates teaching, research and professional projects. To construct such a game, a systemic feedback model of the major academic aspect of a university system is built. The model consist of twelve sectors: Graduate Instruction, Undergraduate Instruction, Graduate Instruction Quality, Undergraduate Instruction Quality, Graduate Faculty Instruction Overhead, Undergraduate Faculty Instruction Overhead, Graduate Faculty Research, Undergraduate Faculty Research, Graduate Faculty Projects, Undergraduate Faculty Projects, Laboratory Facilities and Assistant sector.
Systems dynamics modelers normally develop models and implement findings from a deterministic perspective. This approach has great merit. It focuses attention on system structure and behavior as well as ways to change them. Once developed, however, a good system dynamics model is an excellent tool for analyzing systems behavior under a wide variety of parametric assumptions. Though such sensitivity analysis can (and should) be done manually through repeated simulation, automated tools allow more complete exploration. Moreover, they can provide information on the distribution of outcomes that strongly effects decision-making. In this paper we present the basic ideas behind doing multivariate sensitivity simulations (MVSS) and describe how these have been implemented in Vensim. Then, we present a case study that uses MVSS in the pharmaceutical industry.
This paper describes how those trained in systemic thinking (whether system dynamics or systems thinking) avoid the reasoning pitfalls among those not trained to think systemically. I will discuss how systemic thinking provides advantages in two fundamental areas: in avoiding underestimation or misattribution of relationships when constructing an understanding of a situation, and in providing better action based on that understanding. Its strength in these areas gives it a great advantage over the thinking commonly employed by those who have not been trained systematically and is, I believe, one of the main reasons for the superior results obtained by interventions based on systems thinking versus those based on other methodologies.
Pollution control policy has relied on the use of command and control (e.g. emission standards) and market based (e.g. emission taxes or permits) instruments, to promote the attainment of established environmental quality objectives. In the design of such instruments a process-oriented approach, directed to the control of emissions in production processes has traditionally been followed. More recently, the adoption of a product- oriented approach, where the environmental performance of products is controlled, namely through a lifecycle analysis, has been viewed as an alternative and a complement to traditional environmental policy instrument.
Traditional education long ago stripped its students of tools of integration; indeed, integrated or interdisciplinary studies take place almost exclusively in pre-school and, later, post-graduate work-the sixteen or so years in between stretch out as a wasteland of discrete, rudimentary tasks bearing little or no connection to any other discipline of one's education or aspect of one's life. Our American methodology of keeping subjects separate had dismembered their world, served it up to them as lab reports and vocabulary lists and odd-numbered math problems and history work sheets and standardized test easily graded by Scantron machines. Sometimes there was knowledge, but rarely understanding. What it-along with other factors-produced was a rising illiteracy, a thorough sense of confusion and uselessness about education, and a weeping boredom by about third or fourth grade.
Cyclicality is well-known phenomenon in many capital goods industries. It is especially pronounced in the machine tool industry where peak-to-peak in incoming orders often exceed 100% of mean sales. While extreme cyclicality in the machine tool industry and its resulting problems are well documented (Bowen et al. 1989: Dertouzos, Lester and Solow 1989: Neary 1993), the underlying causes and the potential levers to reduce it are so far not well understood.
The method of system dynamics has relied extensively on feedback loops to explain how system structure leads to pattern of behavior. Yet, beyond simple classroom examples and as guide to intuition, the concept has never been fully developed for large-scale systems with many loops. If the theory of how feedback loops lead to behavior can be developed to the point where it can be implemented as a computer algorithm, it would be enormous help both in analyzing dynamics and explaining results.
A large model describing the dynamics the dynamics of human motivation is currently being implemented as a Learning Environment. This implementation and the corresponding use of the model by young mangers of future managers generated interest but also problems. Some of he reactions to this novel approach are described in this paper.
The Fresh Clean Air Act of 1990 stipulates that states must meet certain air quality requirements during the decade of the 1990's and beyond, and those states choosing to require the sale of Zero Emission Vehicle (essentially electric vehicles) to help meet the standards must follow the mandates put forth by the California Air Resources Board (CARB). CARB originally mandated put forth by the California Air Resource Board (CARB) CARB originally mandated that 2% of the vehicles offered for sale in California be zero emission in 1998, 5% be zero emission in 2001, and 10% be zero emission in 2003. Recently however, CARB voted to ease the mandates although 10% of the vehicles offered for sale on California must still be zero emission in 2003, automakers may decide for themselves how many ZEVs to sell in California before 2003. The mandates were relaxed because automakers convinced CARB that current ZEV technology cannot meet the needs of the mass consumer market. Massachusetts, however, has voted to maintain the "2% in 1998" mandate, regardless of what California does.
Information age comes with network: broadband networks of telecommunication and cable TV, networks of hardware and software, networks of electronic money services, networks of Internet web sites. Recently, some economists have developed a systematic approach to analyze the characteristics of networks. They introduced the concept of network externality and critical mass as building blocks for explaining the positive loop characteristics networks (Katz & Shapiro 1985: Economides 1955). However, their economic model is far from complete and dynamic. Paradoxically enough, the economic model of networks is based on the concept of equilibriums which oppress dynamic behavior of network evolution. In this paper, we developed a system dynamics model of networks focuses in the equilibrium state of networks, the SD model of networks focuses on the historical path towards the evolution of networks.
The shortening of product life cycle is one of the big problems to be solved in the 1990s. So a lot of energy is used to speed up the R&D-processes put more flexibility to the production line. Time is not the only key-variable of the R&D-process and the production, quality and individuality of the products are getting more and more important. These variables are not only significant for production and the R&D but also for decision making. The classical way to enhance the quality of decisions is the use of decision-support-systems (DSS), often based on artificial-intelligence (AI). Another tool to improve the effectiveness of decision making is management simulation. These tools are used to assist the decision maker with the goal of better results.
According to the research-based literature, essence of firm's idiosyncrasies is better investigated looking at the bundle of resources that constitutes them. According to this view, this paper examines the role of cumulated experience in influencing strategy-making process by directing selection of strategic initiatives. Moreover, this work regards it as necessary to look at the organisational and behaviuoral systems in which resources are embedded. For this reason, it places itself in the area of research, within the research-based view of the firm, recently denominated 'Competitive Organizational Behaviour' that studies the strategic consequences of behavioural and social phenomena within the firm jointly with the content of strategy and the competitive context [Barney and Zajac, 1992]. Taking this intraorganisational point of view, it is argued that firms not only cumulate experience that enhances their ability to simulation approach is used to explore the consequences of such assumption. A firm is represented that allocates funds among competing strategic initiatives using evolving routines. On one hand, the firm learns and exploits accumulated knowledge, on the other hand, it is strongly biased by past experiences. A behavioural perspective is therefore, taken in highlighting heuristics and biases in the strategy-making process. As a result, the paper (i) proposes some areas of analysis as crucial to address the paradox of taking advantage of core capabilities without being hampered by their dysfunctional flip side learning ( Leonard-Barton, 1992) (ii) investigates the suitability of system dynamics modelling to this kind of analysis.
Although system dynamics has long been applied to strategic business problems, there has been surprisingly little published work dealing with the topic of diversification and multibusiness firms. Widely cited business models in the field typically deal with dynamics at the level if a single business or else at the level of an industry strategic group. Nevertheless, diversified firms are numerous and have been studied closely by academics working in the area of corporate strategy. Much debate surrounds the question of whether (and under what circumstances) diversified firms can outperform firms that focus on a single core business. Researchers on this area have principally concerned themselves with statistical analyses of the link between financial performance and portfolio relatedness (Markides and Williamson 1994, Robins and Wiersema 1995)
Between 1994 and 1995 the Office of Regulatory and Management Assistance (ORMA) of New York State became interested in reengineering the processes whereby it interacted with the public. Specifically, the agency was having difficultly responding to phone inquiries for business permits automated voice response customer service system. ORMA approached the Center for Technology in Government (CTG), a research and development unit of New York State Government, requesting that such system be developed on a prototype basis and evacuated for feasibility.
This study compares the effects of several strategies for building Korean Information Infrastructure (KII). Korean Government plans to invest about 45 trillion won for the next fifteen years to build Korean Information Infrastructure (Table 1). Using system dynamics model of Korean Information Infrastructure, this paper compare market vs. government initiative strategies for building KII and explain the development pattern of KII under different strategies. Model building was proceeded in accordance with group model building procedure (Richardson & Andersen, 1995).
Computer simulation games, or flight simulators, are often used as learning tools, particularly in corporate settings. The more complex the feedback structure, the more valuable the computer simulation games are thought to be. Yet, performance on these games has historically exhibited wide variation across the individuals. One question that naturally arises is whether this observed variation in ability is explainable. This paper will describe the extent to which individual differences in cognitive style/learning style can help explain individual differences in dynamic decision making in a computer stimulation environment. Specifically, the discussion will focus on three cognitive styles of research instruments. the Myers-Briggs Type Indicator, the Gregorc Style Delineator, and a variation of Gordon's Cognitive Style Indicator. These are coupled with the STRATEGEM-2 Microcomputer stimulation Game of the Kondratiev Cycle developed by Sterman and Meadows (1985) in an experimental setting (beta testing) where system dynamics and flight stimulators are traditionally used. Preliminary results indicate that people who have certain cognitive styles, in particular those who score higher on the Abstract component of the Gregorc test, do have a significantly higher propensity to score well on the Kondratiev flight simulator.
This paper tackles on instabilities and chaos which can occur in production systems whose organisation is based on the just-in-time philosophy. This could be a Kanban system which controls the production flows. In this case, cards or other manual and visual devices, accompanied by parts containers, signalise transfer and/or manufacturing operations thus acting as production orders. For instance, a worker, from an assembly line, needing more components, attaches a transportation Kanban to an empty parts container, that is moved to the previous work centre (according to routing procedure) where it is replenished (with new manufactured parts) and moved back to the assembly line.
In the past six to seven years, a growing consensus has emerged over the powerful role that system dynamics can play in education reform. This consensus has been fueled by educators who have successfully utilized dynamic modeling in their classrooms (Draper and Swanson, 1990; Hopkins, 1992; Roberts, 1978), practitioners of systems modeling and thinking in various professionals (Forrester, 1993), and educational researchers and standards/review bodies (AAAS, 1989; Betts, 1992). These groups hold in common the view that principles of system dynamics- and the computational tools used to illustrate them-can provide a relevant foundation of core concepts and skills to integrate classroom studies, both across subject areas and through time.
Regional economic integration is a trend of modern economic development, and to realize such integration may supporting conditions, especially the coordinated development of regional infrastructure, however, requires proper policies of the governments and cooperation among different areas as well.