Question

how systems dynamic modelling can be used to improve our understanding of the ways in which an organization's performance is related to its internal structure and operations policies, including those of customers, competitors, and suppliers and then to use that understanding to design high leverage policies for success?

Answer 1

The systems dynamic model can be used to monitor the performance of the particular entity of interest. It is helpful in understanding the states of the progress dynamically and hence is extremely useful in making important decisions that affect the entire business. Thus, we can use the functionality provided by the dynamic modeling to benefit us from the understandings over the organization's performance and its link to the internal structure and operations policies.

The dynamic systems modeling helps in modeling the attributes keeping in mind all the possible aspects that may affect the attributes. This is a process where we learn the effects of various attributes on the performance of the concerned entity, in this case, the performance of the organization. This is why we can utilize the dynamic systems modeling to understand the factors of internal structure and the operations policies to find out how they are affecting the performance of the organization. This helps in coming up with aspects that have a direct effect on the performance of the organization and hence this can be taken care of to ensure it does not affect the organization's performance in a negative way.

These modelling observations can also help us in deterining their relationships with other business stakeholders as well. The other stakeholders include the customers, suppliers among others. This is hence a vary crucial information for the organization where it can determine the various areas that impact the organizational performance the most and thus we can focus on these areas with great effect to ensure the organizational performance is kept high using efficient policies developed using the knowledge we gained from dynamic systems modelling.

Hence, this is how we can use the dynamic systems modeling to come up with methods to understand how organizational performance is being affected because of its internal structure and the underlying operational policies.