The Usage of System Dynamics in Strategic and Operational Decisions in the Financial Sector
The Usage of System Dynamics in Strategic and Operational Decisions in the Financial Sector
Author(s): Nicoleta Liliana RobuSubject(s): Economy, Financial Markets, ICT Information and Communications Technologies
Published by: Facultatea de Management, Academia de Studii Economice din Bucuresti
Keywords: Analytical method; Simulation; Interpretation; Decision making; Feedback systems; Systemic correlations; Managerial methodology;
Summary/Abstract: This paper proposes an additional technique in the decision-making process in the financial sector – the application of the system dynamics method in strategic and operational decisions. The applicability of this method is substantiated by an analysis of its relevance for the financial sector, the analysis of opinions of 35 experts (primary research through direct interviews and surveys), and by exploring its usage through two case studies, and the evaluation of the insight obtained and its benefits for an organization in the financial sector. Decisionmaking is a fundamental component of strategic and operational management; it requires the ability to interpret and act on feedback quickly. System dynamics is a way of studying complex systems to understand their behavior and decisions outcomes.
Journal: Business Excellence and Management
- Issue Year: 5/2015
- Issue No: 4
- Page Range: 16-25
- Page Count: 10
- Language: English