Development and Manipulation of Business Models Using System Dynamics Approach

In today’s ever-changing world of business, organizations are required to align with environmental changes and it is also extremely necessaryfor organizations to forecast the impacts of managers’ decisions on business model change. In response to these requirements, this study addressesdesigning dynamic business models. Simulating management decisionscenarios is an effective way to investigate the impact of decisions on business model components, relationshipsamongthe components, and business results and benefits of resolution. Therefore, the main purpose of this research is to takeadvantage of system dynamics approach as an operational, quantitative, andflexible approach for business model simulation. In this study, relatedliterature has been thoroughly reviewed, proportionate to the leveland approach of the current study, Business Model Ontology (BMO) wasselected to serve as the model of this study. The modelwas then designed using system dynamics approach and its structure wasevaluated using expert judgments. In the next step, some scenarios were developed and executed to confirmthe behavior of the model and also to evaluatethe importance of applying system dynamics approach in business model simulationespecially in the process of business model design and change. Although systemdynamics approach precedents in business studies, this research contributes to operationalization of this approach in BM design and analysis.