The world around us changes all the time. We are continuously challenged by economic, environmental, social, and technological changes. We develop policies to solve problems emerging due to these changes; however, they are not always successful, even so, they sometimes worsen the situation.
System dynamics is a modeling approach to help establish the impact of policy interventions to complex, highly interactive, social systems to produce conditional, imprecise projections of dynamic behavior in social and business systems. It provides a set of conceptual tools to understand the structure and dynamics within complex systems.
Grounded in control theory and nonlinear dynamics, it presents an elegant and rigorous mathematical analysis to support policy making. Using stocks and flows as the building blocks, it incorporates causal links and feedback loops that affect the functioning of a system over time.