System Dynamics and Strategic Modelling goes side-by-side. Strategic Modelling employs interactive "management flight simulators" and it helps creating an appealing and operative learning environment that can develop intuition in the reader about complex dynamic systems.
The feedback plays a vital role in success of a company. The focus of the exercise is to assess how corporations can adapt to changing environment and predict the impact of a policy. The target is to formulate models from current procedures to visualize consequences from the results.
System dynamics is a computer-aided approach to policy analysis and design. It applies to dynamic problems arising in complex social, economic, managerial, or ecological systems.
The system dynamics approach involves:
* Defining problems dynamically,
* Inward focus on characteristics of a system that generates/exacerbates the perceived problem,
* Thinking of all concepts in the real system as continuous quantities interconnected in loops,
* Identifying independent levels in the system and their rates of flow,
* Formulating a behavioral model capable of reproducing, by itself, the dynamic problem of concern, and
* Implementing changes resulting from model-based understandings and insights.