REPLY "Flawless Consulting" and SD (SD6638)

[SDMAIL Richard Stevenson]

Posted by  Richard Stevenson <rstevenson at valculus.com>

One more thought, to clarify my comments on data.  I was, indeed  being 
somewhat contentious - but largely to make an important point.

My particular business and interest is concerned with strategy  
modelling - not with detailed operational modelling.

Most often, when seeking to create a truly insightful strategy model,  
the 'data' simply doesn't exist at the level of aggregation  required.  
Indeed, it is inevitably the case that some data  relationships won't 
exist at all - such as important (non-linear)  relationships between 
(say) rewards, motivation and productivity.  If  such relationships are 
strategically important, then their effects  might overwhelm other 
relationships in the model for which good data  exists.

Of course we should use best efforts to build models with appropriate  
data.  But an absence of detail data does not invalidate the impact  
of an insightful model.  Indeed, some of the most insightful models  
of all time are not based on real data at all (e.g. Forrester's  
"Market Growth as Influenced by Capital Investment").

It all depends on the purpose for modelling.  Clearly, if building a  
detail operational model of (e.g.) a supply chain or production line,  
then data is important.  But although SD can be applied at that  
level, there are probably better modelling approaches.  I have often  
been asked if SD models can be "hard wired" to a company's ERP  
system.  Indeed, Powersim provides a means to do so with SAP.  But in  
a strategy model, why would you bother?

I repeat my contention.  The data has to be chosen or fitted to the  
purpose of the  model - and not the other way around.

Richard Stevenson
Valculus Ltd
Posted by  Richard Stevenson <rstevenson at valculus.com>
posting date  Wed, 19 Sep 2007 14:32:18 +0100