Long-Term Business Modelling Using System Dynamics

This paper presents an overview of the methodology used to model the resource allocation decisions of a research organisation using system dynamics. The resulting model combined the concept of 'aging chains' and 'co-flows' of System Dynamics with conventional spreadsheet analysis, and included representations of staff development and turnover; patent development and licensing revenue; and revenue from other sources. Using the model, senior management were able to evaluate the impact over the coming years of different resource allocation strategies. [PUBLICATION ABSTRACT]