System dynamics is a methodological approach for modeling complex, dynamic systems using stocks, flows and feedback loops. It supports understanding the causes of behavior over time and analysing policy or design options. Typical applications include strategic planning, policy analysis and organisational simulation. Models are iteratively calibrated and vali…
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A method for analysing complex systems through stocks, flows and feedback over time.
System dynamics was developed in the 1950s by Jay W. Forrester at MIT from work on industrial control and modelling organisational problems. It became a method for policy, business and systems analysis.
Stocks change through inflows and outflows, while feedback amplifies or dampens that change. A causal diagram or simulation model reveals why behaviour can be delayed, nonlinear or surprising.
The approach provides shared language for the system context under consideration.
Relationships, processes or measures make the effects of decisions traceable.
The approach makes feedback and time-dependent side effects discussable through simulation.
System dynamics helps examine delayed and nonlinear effects of interventions in organisations, markets or technical systems.
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