System dynamics and agent-based modelling to represent intangible process assets characterization

• Published in: Kybernetes 2018-02, Vol.47 (2), p.289-306
• Main Authors: Sanchez-Segura, Maria-Isabel, Dugarte-Peña, German-Lenin, Medina-Dominguez, Fuensanta, García de Jesús, Cynthya
• Format: Article
• Language: English
• Subjects: Agent-based models; Comparative studies; Competition; Competitive advantage; Decision making; Intellectual capital; Knowledge management; Objectives; Scientific visualization; Simulation; Software engineering; Strategic management; Strategic planning; Success; System dynamics; Valuation
• ISSN: 0368-492X; 1758-7883
• DOI: 10.1108/K-03-2017-0102

Purpose This paper aims to address the use of modelling and simulation tools to enhance intangible process assets management by simulating and automating their characterization depending on their quality and impact on an organizational business goal. Design/methodology/approach The authors conducted a study comparing two simulation-based approaches to characterize intangible assets: system dynamics and agent-based simulation. Findings Strategic business studies have not yet considered the use of simulation techniques to characterize the intangible assets at length. The proposed solution introduces significant improvements for strategic data visualization, providing company stakeholders with a practical and helpful prism through which to view an easily adaptable, cheap and meaningful source of information about their company’s process assets, and their behaviour based on operation indicators. Practical implications This research offers decision-makers in knowledge-intensive organizations alternatives for effective strategic decision-making and for leveraging prospective views based on the specification of the organization’s knowledge. To do this, stakeholders will be able to use very promising low-cost simulation-based tools to create practical scenarios and potential situations that generate inputs for debate and decision-making by senior and middle management. Originality/value This paper reports an unprecedented comparative study of system dynamics and agent-based simulation to speed-up the characterization of the intangible process assets based on their quality and impact on strategic goals. It stresses the benefits and implications of the use of these techniques for better strategic management.