Abstract for: Integrating System Dynamics with traditional management tools: a case study in the Apparel Industry
This case presents an exploratory example of how System Dynamics can be combined with other management tools and mode methodologies in order to produce an effective and agile strategic analysis process. Since its inception (Forrester, 1961), System Dynamics has been successfully used to tackle support the strategic process and to give managers value insights to solve complex problems (e.g. Rich et al., 1995; Vennix, 1995 or Warren, 2005). However, System Dynamics effectiveness is some times constrained by: the short time available, high uncertainty and problems to integrate it with the current databases. This paper analyzes a System Dynamics based intervention conducted in the Apparel industry in Latin America. In this case, System Dynamics was combined with other management tools to support an agile (six weeks) process of rethink the company's strategy. The paper presents the approach used to build the System Dynamics model and combine it with the company's Balance score card, Discrete operation models and Montecarlo simulations. Finally the results and client evaluation of the intervention cases are provided.