Recent experience with existing businesses in the newly added eastern states of Germany has shown a tendency toward the immediate (and often rash) acquisition of current information systems technology for the support of operations. In many cases, the lack of planning reflected in these actions has led to disappointments and subsequent requests for help. The scenario evinced by these situations is reminiscent of the principles espoused in Richard Nolan’s stage hypothesis for information systems growth (1979). In this paper, possibilities are discussed for better understanding the unique set of circumstances presented by these situations, in light of the Nolan hypothesis, with a system dynamics approach.
Various factors like price, delivery delays and product quality influence the diffusion of innovations. This paper discusses-among other aspects- the impacts of research and development (R&D) strategies on the technical know- how of a product as a strategic factor. To investigate the interrelations of R&D, market performance of products, pricing and profits and to draw conclusions for corporate strategy, an innovation diffusion model is needed, which represents the underlying problem structure adequately. This paper presents such a model.
Currently there are three methods for conceiving company wide quality control strategies, the participative approach, the simulation approach and benchmarking approach. All of these methods present shortcomings. This paper presents a new qualitative method based on system dynamics and an expert system that includes this new method. The expert system is applied to conceive the company wide quality control strategy of a manufacturing firm.
When modeling and simulation in System Dynamics, we can find many different uses of the term “model”. Although these uses are very interrelated among them, and with other uses this term in science, technology and philosophy, they serve to very specific and diverse goals and purposes. This paper tries to sketch a general framework in order to analize that wide variety of uses the term “model” has in System Dynamics. Sometimes, the differences among some of these uses will be so important that more than different uses of a term associated with a single concept, we could speak of different and mutually irreductible concepts. Nevertheless, whether theses uses of the term “model” are associated with a single underlying concept or with different concepts, all of them are perfectly integrated in System Dynamics. Our point is that this is one of the main sources of its great success for making clear our ideas and for managing our actions trought complexity.
What organisational decisions actually cause diversity? Does diversity in mix of employees lead to diversity in range of output? This paper puts forward a set of hypotheses regarding the systems that generate (or limit) diversity in organisations. Our client organisation is the British Broadcasting Corporation (BBC), whose stated goal is to provide a broad, diverse range of programming –such diversity being appropriate to the BBC’s very broad and diverse audience. To achieve this goal, the BBC has set forth a human resources strategy of hiring and promoting diverse groups of people. Their premise is that diversity of people, under certain measurable conditions, will lead to diversity of output. Our model allows experimental study of the effects of feedback on the dynamics of diversity. This research is relevant to organisations concerned with diversity, with matching their market composition, or with fostering innovation. Results of recent studies will be available at the conference and by written request.
Streamlining a production process shortening leadtimes and sqeezing inventories and cost are the highlights of any company restructuring. Efficient factory planning is in the end usually good logistic system design. But to master the many concurrent problems of an efficient logistic system design in a company it either takes time to digest all the local improvements or one needs an integrative method to structure these intertwined problems.Applying SDA opens the second method, which consistently proved to be faster and more efficient. This also includes the problem of proper embedding the MRP-system. Analysis of the process-chains of an important machine-tool production including sales and supply is reported as an illustrative exemple.
This paper describes work and experience gained by a system dynamics team in developing a microworld to support a strategic management learning laboratory at Venezuela’s international airline Viasa and a computerized case study at IESA. The opportunity for this experience arose from an atmosphere of change produced by Viasa’s transition from state to private ownership. This work is intended to form part of a managerial development effort at Viasa and as a teaching and research tool at our business school.
When performing interventions with practising managers, questions arise concerning the approach which should be used to generate and select the issues to study without biasing the process towards a system dynamics framework. This paper describes a project in which care was taken to observe the stages of the process to facilitate reflection on the project’s development. The case involved two managers from an information technology department and evolved into a study of the dynamics of their new programmer recruitment policy. Early use of the ‘magnetic hexagon’ approach allowed articulation of the issues and focussing of interest on one issue. Policy structure diagramming was used to elicit a model and computer implementation and scenario generation followed naturally. The paper closes by recording the insights gained by the clients and by proposing some general lessons on techniques for structuring the early stages of consultancy projects.
The People Express Management Flight Simulator (Sterman 1992) developed a new area of research in the use of interfaces to enhance the learning value of system dynamics simulation models. Participants impressed with the learning power of the People Express learning laboratories frequently ask how they can have such a simulator customized for their own company or industry. This case study describes the rapid creation of a simple, yet highly dynamic and descriptive model (with a graphical interface) of a national oil company, and the experimental introduction of that model into an already established new employee training program in that organization.
This tutorial gives a survey of strategic issues in the statistical design and analysis of experiments with System Dynamics models. These models may be either deterministic or random. The strategic issues include what-if analysis and optimization. The analysis uses regression (meta) models and Least Squares. The design uses classical experimental designs such as 2 k-p factorials, which are efficient and effective. If there are very many inputs, then special techniques such as group screening and sequential bifurcation are useful. Some applications are discussed briefly.