System Dynamics

Feedback:

• Positive Feedback Drives Growth

• Negative Feedback Limits Growth

• Multiple Feedback Processes Create Complex Behaviors

Value:

• Simulation models offer a means to make assumptions explicit and testable
• Simulation models offer a mechanism to explain the causes behind observed behavior
• Simulation offers a means to explore uncertainty in assumptions and bound likely future behavior
• Simulation offers a means to explore business behavior and gain insight into how the firm/industry/market is likely to change and under what timeframe