Strategic Planning: The Role of Hybrid Modelling

Strategic management simulation is an increasing field of practice mostly driven by the big consulting firms. While System Dynamics (SD) is a widely used simulation method in given its advantage on global aggregates and deterministic model, hybrid modelling can achieve similar popularity. This paper presents some suggestions on how to use hybrid modelling with AnyLogic strategic management software.

Traditionally System Dynamics has been used as a methodology to support strategic management and policy analysis. Although Hybrid Simulation is a widely used modelling technique in business, after reviewing the literature, the application of Hybrid Simulation in strategic management has not been performed previously. Thus, the motivation of this paper is to propose a modelling process using the strategic management software to be applied in business decision making. An integrated approach using System Dynamics, Agent Based Simulation (ABS) and Discrete Event Simulation (DES) models can reflect the micro and macro changes that can vary depending on a situation, such as the implementation of a new policy after a project is underway.


Screen shot of the System Dynamics and Agent Based Simulation sub-models’ linkages

Screen shot of the System Dynamics and Agent Based Simulation sub-models’ linkages

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