A System Dynamics Modelling (SDM) Application applied for Information System Investment Appraisal (ISIA) ----The Case Study of Recreating System Dynamics Models for Domestic Manufacturing Company (DMC) using STELLA Software Package

摘要

Traditionally System Dynamics modelling was used in flight simulation or qualitative system dynamics. With its successful development in the above area, SD modelling is introduced to be applied in changing management settings. SD modelling has proven its usefulness in Information System Investment Appraisals (ISIA) over the years. The purpose of this paper is to study, how SD modelling can provide assistance for ISIA in corporate companies. In stead of theoretical considerations,I build arguments on a detailed case study of recreating the SD models for Domestic Manufacturing Company (DMC) of Coyle (1996) using 'STELLA' simulation.software package instead of the 'COSMIC' package used by Professor Coyle. Findings of this paper are that SD modelling can be supportive for ISIA in regards to reviewing the actual benefits and costs of the investments in advance by simulating the operation system of the company, by which the managers can make proper decisions for the investments before they actual investing into them. Research implications consist of the further assessments of the SD modelling approach and the discussion of potential issues.