Saturday, July 05, 2008
   
 
 
 
 
 
 
Methodology
  Powersim's simulation models are based on the System Dynamics (SD) modeling paradigm, a methodology developed at MIT in the 1960s to help introduce computer simulation into management and social sciences. The SD methodology is an integrated multi-disciplinary modeling approach for identifying, conceptualizing, representing, and analyzing operational, tactical, as well as strategic business issues.
SD is an experimental approach to System Analysis and a way of understanding complex systems and modifying or changing them in some way. It is also an approach for validating and assessing the consequences of implementing analytical (prescriptive) models or recommendations of a case study report. System Dynamics is both -
  • a theory of structure in systems, and
  • an approach to policy design and implementation.
System Dynamics comprises two concepts:
  • Feedback Theory, which provides general guidelines for organizing system structure
  • Computer Simulation, which provides a means to deduce the behavior arising from a particular system structure
System Dynamics involves the construction of graphical and mathematical computer-based models, with detailed descriptions, that tells us how the conditions at one point in time lead to subsequent conditions at later points in time. The constructed model can then be simulated and its behavior observed over time. A system dynamics simulation model integrates and runs all variables of the system in a dynamic way. The model structure contains the objects, relationships, processes and decisions of the system, which it uses to generate the system's behavior. Such simulation models can be used beneficially at all levels of decision-making in an organization.
In short, SD is about studying complex and dynamic systems, systems that change over time, and finding the 'why' (causes) and 'how' (patterns) of a system's dynamic behavior (changes) over time.

 
Creating a custom model
In instances where we need to create a simulation model from scratch our simulation experts employ the following three-phased approach in collaboration with our clients to build models that are relevant to the client's unique needs.
These phases are designed, based on our PACE™ Framework, to support the conceptualization, creation, authentication delivery of simulation models either for use in strategy communication and management training or execution of strategy.
   
 
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