Expanding Business Intelligence Power with System Dynamics

Abstract

This chapter explores the opportunities to expand the forecasting and business understanding capabilities of Business Intelligence (BI) tools with the support of the system dynamics approach. System dynamics tools can enhance the insights provided by BI applications — specifically by using data-mining techniques, through simulation and modeling of real world under a “systems thinking” approach, improving forecasts, and contributing to a better understanding of the business dynamics of any organization. Since there is not enough diffusion and understanding in the business world about system dynamics concepts and advantages, this chapter is intended to motivate further research and the development of better and more powerful applications for BI.