System Dynamics

Overview

Class Central Tips

This course equips learners with the skills to analyze dynamic relationships within systems, create causal loop diagrams, and simulate the behavior of interconnected variables. Participants gain insights into system behavior, enabling them to make informed decisions and design effective interventions in diverse contexts.

Syllabus

System Thinking

By the end of week 1, you will be able to: • Comprehend the foundational concepts of System Dynamics and systems thinking and recognize their importance in understanding and addressing complex problems in various disciplines. • Develop the ability to distinguish between analytical thinking and systems thinking approaches and appreciate the value of problem orientation and clear problem articulation for effective problem-solving. • Acquire a deeper understanding of the perspectives and contributions of key figures in the field, such as Jay W. Forrester and Russ Ackoff, and explore the practical applications of systems thinking in management and decision-making.

Causal Loops

By the end of week 2, you will be able to: • Develop a deep understanding of systems thinking, with a focus on feedback processes, causal loop diagrams, and the impact of delays on system behavior. • Understand how to create and interpret causal loop diagrams as a tool for analyzing relationships and feedback processes within complex systems. • Learn to identify and apply system archetypes and modes of dynamic behavior to real-world scenarios, enhancing decision-making and problem-solving abilities in various contexts.

Stocks and Flows

By the end of week 3, you will be able to: • Understand the fundamental concepts of stocks, flows, and auxiliary variables in System Dynamics, and learn how to differentiate between causal loop diagrams and stock-flow diagrams. • Gain hands-on experience with the Vensim software, including the installation process, creating and simulating System Dynamics models, and analyzing the behavior of models through simulations. • Apply the acquired System Dynamics modeling skills to real-world examples, such as the Retirement Fund model, to analyze the impact of different variables and explore the behavior of complex systems over time.

Bass Model

Examines the Bass Model for forecasting product adoption across markets. Students will explore diffusion Models, including advanced aspects like product obsolescence and repurchases. Vensim simulations will be employed to enhance critical thinking and problem-solving skills while analyzing real-world scenarios.

Dynamics of Growth

Focuses on the Dynamics of Growth, exploring various aspects such as product awareness, production costs, and product differentiation. Learners will analyze these dynamics through strategic modeling and systems thinking, applying their knowledge to real-world business scenarios. The module emphasizes understanding the role of feedback loops in growth dynamics and developing informed corporate strategies for long-term success.