System dynamics is the study and application of how the system works and how it could be improved upon and made more efficient.
From the management point of view, system dynamics is an indispensable tool without which any attempt at effective decision making is fraught with grave risks and danger to the enterprise. Even so, decisions based on meticulous implementation of system dynamics are no guarantee for sure success, although they may help to some extent in maintaining the status quo after thorough trial and testing.
As an aid to decision making, system dynamics has no alternative. It monopolizes the entire realm of factors, utilities, activities, tools, elements, and even incentives and motivations that go into the outcome of a single product. It is the root from which the management could hope to draw the fruits, and the pruning from which better growth could be ensured .
The origins of system dynamics encompass the entire management hierarchy. It is a process which is as much relevant on the shop floor as it is at the highest management level. The theory of system dynamics is based on certain assumptions relevant to the creation and operation of the system that runs the enterprise.
The guiding principles for the management of the ecosystem are interlin ...