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Readings

We have noted the days for which the articles and cases should be prepared (before the class in which we discuss them). The table below also indicates which sections of the text you should be sure to read to learn the material you will need to do the assignments, and which sections you can skim ('skim' ≠ 'skip').

"BD" refers to the course textbook: Buy at Amazon Sterman, J. Business Dynamics: Systems Thinking and Modeling for a Complex World. Irwin/McGraw Hill, 2000. ISBN 0-07-238915-X (Text and CD-ROM); see the textbook's web site for information about the book, including software models.

SES # TOPICS READINGS
1 Introduction and Overview: Purpose, Tools and Concepts of System Dynamics Business Dynamics [BD], Ch. 1
2 System Dynamics Tools Part 1: Problem Definition and Model Purpose BD, Ch. 3, Ch. 4
3 System Dynamics Tools Part 2: Building Theory with Causal Loop Diagrams BD, Ch. 5 (Skim Sections 5.4, 5.6)
4 System Dynamics Tools Part 3: Mapping the Stock and Flow Structure of Systems BD, Ch. 6 (Skim Sections 6.2.7, 6.2.8, 6.2.9, 6.3.4, 6.3.6)
5 System Dynamics Tools Part 4: Dynamics of Stocks and Flows BD, Ch. 7
6 System Dynamics Tools Part 5: Linking Feedback with Stock and Flow Structure BD, Sections 8.1-8.4
7 System Dynamics Tools Part 6: Linking Feedback with Stock and Flow Structure (continued) BD, Ch. 8.5 to end
8 Growth Strategies Part 1: Modeling Innovation Diffusion and the Growth of New Products BD, Ch. 9.1 (Skim 9.1.2, 9.1.3); 9.2, 9.3 (Skim Sections 9.3.5 to end)
9 Growth Strategies Part 2: Network Externalities, Complementarities, and Path Dependence BD, Ch. 10 (Skim Section 10.2)
10 Growth Strategies Part 3: Modeling the Evolution of New Medical Technologies Please Prepare: Homer, Jack, edited by J. Sterman. The Evolution of a Radical New Technology: The Implantable Cardiac Pacemaker. MIT Sloan School of Management, 1996/1984.
11 Interactions of Operations, Strategy, and Human Resource Policy: People Express Please Prepare: Schlesinger, Leonard A., and Debra Whitestone. People Express (A). Boston, MA: Harvard Business Publishing, 2000. Case No. 9-483-103.
12 Guest Lecture: Business Dynamics at General Motors (Nick Pudar, Mark Paich) Please Prepare: Christensen, Clayton M., and Erik A. Roth. OnStar: Not Your Father's General Motors. Boston, MA: Harvard Business Publishing, 2002. Case No. 9-602-081.
13 Managing Hyper Growth: Lessons from People Express.

End of 15.871 		 
14 System Dynamics in Action: Re-engineering the Supply Chain in a High-Velocity Industry BD, Ch. 11 (Skim Sections 11.6, 11.7)
15 Managing Instability Part 1: Formulating and Testing Robust Models of Business Processes BD, Sections 13.1, 13.2.1-13.2.7, 13.3 and 13.4
16 Managing Instability Part 2: The Supply Line and Supply Chains BD, Sections 14.1, 17.1, 17.2 and 17.3
17 Managing Instability Part 3: Forecasting and Feedback: Bounded Rationality or Rational Expectations? BD, Ch. 16
18 Managing Instability Part 4: Business Cycles: Real Estate and Oil Tankers BD, Sections 17.4 and 17.5
19 Guest Lecture: Jay W. Forrester Forrester, Jay W. From the Ranch to System Dynamics: An Autobiography. In Management Laureates: A Collection of Autobiographical Essays. Edited by Arthur G. Bedeian. Vol. 1 of 3. Greenwich, CT: JAI Press, 1992.
20 System Dynamics in Action: The Dynamics of Project Management-On Time and Under Budget BD, Sections 2.3 and 6.3.4
21 System Dynamics in Action: Applications of System Dynamics to Environmental and Public Policy Issues Meadows, D. H., D. L. Meadows, J. Randers, and W.W. Behrens, III. Groping in the Dark: The First Decade of Global Modeling. New York, N.Y.: Wiley, 1974. (Excerpts)

Meadows, Donella H., and Donella Meadows. The Global Citizen. Island Press, 1991. (Selections)
22 System Dynamics in Action: Process Improvement in the Semiconductor Industry Please Prepare: Kaplan, Robert S. Analog Devices, Inc.: The Half-Life System. Boston, MA: Harvard Business Publishing, 1993. Case No. 9-190-061.

Stata, Ray. Organizational Learning: The Key to Management Innovation. Boston, MA: Sloan Management Review, Spring 1989.
23 Guest Lecture: System Dynamics in Action - Jim Lyneis  
24 System Dynamics in Action: The Implementation Challenge Conclusion: How to Keep Learning, Follow-up Resources, Career Opportunities, Course Evaluations BD, Ch. 22