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2 "What is system dynamics and how is it different from systems thinking?"

2023.06.28

What is system dynamics?

In the early 1970s, the Rome Club commissioned a group of young researchers at the Massachusetts Institute of Technology (MIT) to study what scenarios our economic activities and global environment could take in the future. The results of the simulation on a super computer were published in the book "The Limits of Growth" in 1972. The shocking content of "We must avoid the collapse" has received a great deal of attention all over the world. A technique called "system dynamics" was used for computer simulation at this time.

System dynamics is a methodology for analyzing systems with complex feedback such as economics, society, and the natural environment to create desirable changes. Feedback means that a causal relationship such as from X to Y affects the original X. It is a structure that is widely found not only in the fields of natural science such as biology and physics, but also in the fields of social science such as economy and society.

In the economy, for example, there is feedback that as prices change, so does the amount of supply and demand, which in turn affects prices. In addition, there is a feedback structure in which the parent's reaction to the child's behavior influences the subsequent child's behavior even when raising a child. Whether at home, at work, in the market, or in the international community, feedback structures are almost always present in systems where many factors are connected.

System dynamics captures things as a whole system, models the feedback structure between elements, and performs simulations to analyze the causes of problems and finds solutions, so that the effects of various problems that exist in the real world can be achieved. It is an approach worth trying to solve such system problems.

1. Differences between systems thinking and system dynamics

Then, what is the difference between systems thinking and system dynamics, which was introduced last time as "an approach that focuses on the interaction between elements by grasping things as a whole, as a system"?

Put simply, systems thinking is a method of system dynamics that eliminates the complex mathematics that uses computers. Systems thinking uses only the most basic processes, while system dynamics uses systems thinking to see if the structure of the problem is correctly understood and what the solution to be considered can produce. It uses computer modeling.

This is because "computing" the results of complex interactions between many variables is too complex and goes beyond the capabilities of ordinary humans. One example is the simulation "World 3 model" used in the "Limits of Growth" introduced at the beginning. The interaction of factors such as population, economy, food, technology, and environment are dauntingly repeated to create future scenarios.

2. The role of systems thinking

Systems thinking, which does not use computer modeling, cannot be simulated in an accurate sense, but it can play a large enough role in terms of understanding the structure of problems in society and providing guidelines for solutions. Even if you don't have numbers or simulations, knowing the type of feedback structures and their combinations will tell you common approaches to solutions.

For example, the same feedback structure actually works when we have a quarrel with family and friends, when companies fall into excessive price competition, or when there is an arms race between nations. Once a pattern of such a structure becomes recognizable, a conceptually common approach can be used when trying to change that structure.

3. Systems thinking that can be used by anyone, from children to adults

There are also merits unique to systems thinking. To master system dynamics, it is necessary to build mathematical models and master computer software, and not everyone can use it. However, with systems thinking, anyone from children to adults can learn the way of thinking and methods. In the United States and elsewhere, there are many teachers who actually teach systems thinking for children.

Various people are involved in the problems that are occurring in organizations and societies. Simple and easy-to-understand tools for systems thinking are very useful for understanding and solving problems with people from different fields and backgrounds.

In this ML, we will introduce systems thinking as a tool that anyone can use normally, based on the theory of system dynamics. Next time, let's take a look at its history to better understand systems thinking.

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