System dynamics- background, methodology and applications. 1. Background and methodology

System dynamics is a methodology for modelling and redesign of manufacturing, business, and similar systems which are part man, part machine. It has been around for over 30 years. Some management consultants make extensive use of system dynamics, whilst others do not. Why is this so, and is it primarily an educational problem? The author describes the methodology, traces its history, and shows how it fits into a problem-solving spectrum in between, but overlapping with, system theory and system thinking. He shows how both servotheory and cybernetics have influenced system dynamics and examines the linguistic, investigative and numerical information sources which can be used for model building. Central to this exercise is the use of input-output analyses which are the system dynamics equivalent of writing down balance equations for hardware systems. The author also comments on the important role of system dynamics `user friendly´ software in business games, and the relevance of the method as perceived by a very experienced management consultant