| Overview | Benefits | How it works |
Benefits of System Dynamics Modelling
The key benefits of using this approach are:
- They make complexity understandable, without oversimplifying. The diagrams show the big picture, and the model allows viewers to explore the details, and the implications of challenging core assumptions.
- Effectively present your ideas. They are much more concise and graphical than a spreadsheet, and easier to read.
- Rigorous and transparent. Because they are based upon a working simulation model of the business idea or market, they explain the linkages and assumptions that underly the plan (e.g., growth rates, costs, revenue drivers, and linkages between all these). All this is open for view, and can be challenged, either by changing model assumptions, or by posting comments.
- Attractive and engaging. Dynamic Storyboards are much more interesting and interactive than paper-based plans, and can be effective when you want to get and hold attention around a rich idea.
- Present different levels of detail, corresponding to the different needs of different audiences. They do this by explaining the issue using attractive high-level diagrams on which you can click, to reveal more detail. Viewers can look at only the top level, or drill down into more detail.
- Present the long view. Because they are based upon a simulation model, Dynamic Storyboards explicitly take a time-horizon perspective rather than being a snap-shot. This changes the focus from short-term thinking to the bigger picture implications, and can lead to richer strategies.
- Allow everyone to present and see alternative scenarios. Dynamic Storyboards make it easy to try out and compare different scenarios, by selecting assumptions and seeing the results as the model is re-run.
- Look at interactions between the different elements of your plan. In most markets, success requires making sense of the complex interactions between you, your customers, and your competitors, and sometimes other organizations such as regulators. Successful strategies often "engineer" success by building in positive feedback that reinforces growth, or identifying and overcoming emerging limits to growth while there is still time to do something about them.
