Smart model-based governance: Taking decision making to the next level by integrating data analytics with systems thinking and system dynamics

Although Big Data initiatives are currently presenting promising results, there is still some skepticism about their real capabilities as they are contextual dependent, and their objective and accuracy are somehow misleading (Armenia et al., 2018). Approaches underlying the extraction of knowledge from a large amount of data are surely important to understand how a system has behaved until a certain point in time. However, they, unfortunately, lack a real and effective capability to infer future system's behaviour and its relationship with other systems (some of which might even have counter-intuitive behaviours). As a direct consequence of this, the Systems Thinking approach may help fill the gap, as it advocates the ability to see the world as a complex system where everything is connected. Joining Analytics techniques and Systems Thinking models brings us to the definition of a new governance approach, based on "smart" models (Armenia et al., 2017). The aim of this work is to propose a new conceptual governance framework based on a systemic approach and translated into a system dynamics model for knowledge management within organizations: Smart Model-based governance. The purpose of this model is to overcome the bias linked to the models of governance and knowledge management either from a purely procedural point of view or from a purely declarative point of view. The former, in fact, have as their main limit that of the total absence of the tacit dimension of knowledge related, for example, to the ways in which processes are actually implemented in organizations and how management perceives the structure. The latter, instead, have the main limitation of not considering the effective functioning of the organization as regards IT processes and often generate cognitive bias. The proposed model of Smart Model-based governance, therefore, allows to overcome the limits of both, considering both types of knowledge at the same time and, through system dynamics processes, allows us to understand how different and complementary elements (Big Data, thought systems, models and simulation) can be combined to facilitate the achievement of good governance (Grove et al., 2018; Rokundo, 2017; Seetharaman et al., 2016) based on knowledge governance as a strategic resource for all organizations

The Dynamics and Economic Impact of the Cultural Event “La Notte Bianca Romana”

This paper analyzes the cultural and artistic event “La Notte Bianca Romana”, which has been designed and realized by the Municipality of Rome. It consists in a territorial marketing tool to promote the “Eternal City” all over the world. This event turned out to be an important incentive to the economic and entrepreneurial development of the city, putting in relationship very important issues like “economic growth”, “quality of life”, “social development”. Our work aims to show that, by correctly implementing the strategies designed by the Municipality of Rome (the strategic coordinator of the event), all the actors in the system may have good chances in successfully developing the potentialities of this cultural event, both in terms of participation and territorial and temporal expansion, with positive social and economic downfalls on the territory.System Dynamics; Cultural Network; Strategic Management; Local Government

Marketing competition on a new product introduction - a structural analysis using systems thinking

Launching a new product on the market is a strategic activity that needs specific investments and a specific organisation. There are multiple factors that determine the success of a new product on the market but their direct effects are not often very well observable (marketing for example). With this study, we analysed the systemic structure underlying the dynamics related to the introduction of a new product on the market. In particular, we built a qualitative model based on the systems thinking methodology of causal-loop diagrams (CLDs), starting from the main structure and assumptions of the well-known Bass model. The model provides a systemic perspective on the interdependencies among various aspects that interact in important organisational areas. The presented causal-loop diagram tries to describe the systems structure which is intrinsic to the introduction and diffusion of a new product on the market, and how ultimately the related dynamics could be manage

Training in systems thinking and system dynamics as an effective way to tackle complexity in the management of organisations

The biggest challenge for today’s organisations is to address the growing complexity of their internal and external environment while gaining a competitive advantage. To do this, the leaders of the organisations must be able to understand this complexity through the knowledge of the environment and the implementation of a governance system based on a decision-making process that considers the enormous amount of data available. Such data must lead to the availability of information that guides the organisations themselves in the learning process. Sustainable development requires organisations to rethink their goals and/or business models, with effects on their day-to-day activities. Pursuing to become more sustainable is not only a need for marketing reasons but also an opportunity for growth and alignment with emerging trends. However, managing the complexity of sustainability is not straightforward and requires cognitive and practical tools that are able to capture and jointly consider a wide variety of interrelated factors. Modelling the processes that characterise complex organisations is not an easy task. The aim of this contribution is thus to identify a methodology that helps managers in tackling the challenges that organisations have to adopt when faced with a growing complexity of their internal and external environment, and that might help managers at all levels when analysing various business and management situations, to account for non-linearities, path-dependency and time lags, and that may allow also for organisational and social learning. The study shows how the System Dynamics approach, identified as a methodology for modelling and simulation, is able to lead to the development of effective skills and strategic learning for the management of organisations and hence support the dynamic evaluations of strategies and performance. The System Thinking and System Dynamics approach may prove a useful combined tool for next-generation decision-makers, but this approach needs to be understood and learned in order to develop the necessary skills. In particular, this study will show the results of a test conducted with the collaboration of undergraduate university students, who have attended a course about System Dynamics, in order to test their ability to understand the dynamics underlying counterintuitive system behaviour

A systems approach to the Digital Transformation of Public Administration

The dematerialization with the progressive increase in digital management of documents and processes, leads to digital transformation redesigning all internal processes to increase efficiency and improve the organizational performance. Digitizing the organization activities, is not a mere replacement of the paper document with its electronic version, means designing and managing all organizational processes in an integrated and collaborative way changing the business models, operational processes, and customer experiences. To understand how digital transformation deeply affects the organizational processes in Italian Public Administration, we use the Systems Thinking (ST) and System Dynamics (SD) approaches to analyze the advantages that be can pursue through the digitalization of their processes, in terms of organizational change, productivity and economic savings

Analyzing Food Supply and Distribution Systems using complex systems methodologies

This paper discusses how a complex-systems perspective can shed light on the analysis of complex food-systems meeting urban food needs. The common features between complex systems and Food Supply and Distribution Systems (FSDS) are explored. A brief review of the major approaches - agent-based models (ABM), social network analysis (SNA), and system dynamics (SD) - is developed in order to make an assessment on the analysis performance of different complex system methodologies while dealing with FSDS. After sifting out the most suitable methodology for the study of FSDS, a system archetype analysis of the FSDS dynamics is elicited from the methodological guide of FAO, the United Nations Food and Agriculture Organization. To finalize, three basic points for the analysis of FSDS obtained from the current research are explained. This content is part of the content leading the SD updates to FAO’s FSDS methodological guide

A systemic perspective on racism in football: the experience of the BRISWA project

The objective of this paper is to present the process for the development of a causal loop diagram that captures the relevant aspects of racism in football, through a holistic, top-down approach. To do so, a series of workshops/sessions has been organised with experts in the field and with the purpose of designing a tool that could be used to get better insights into how racism in football emerges and where are the potential areas where policymakers could use as leverage for effective counter-measures. The diagram demonstrated the multi-faceted nature of racism, the phenomena that might give rise to it and the elements that could serve as leverage in potential counter-measures. Some of the most interesting results include the following: the power structures of society and football should adapt to represent the actual demographic make-up of each country. Furthermore, policymakers should involve media more directly in every attempt to fight racism. Finally, racism in football is a mirror of racism in society. Hence, any attempt to combat racism in football should be interlinked with corresponding efforts to fight discrimination in society

Use of System Dynamics Models as Part of a Game-based, Urban Sustainability Course for Students in Higher Education (SUSTAIN Project)

The difficulty with sustainability arises from its abstract nature and the fact that these problems have long term horizons. The objective of the SUSTAIN course is to promote sustainability literacy among students of higher education through an innovative and student-centered education that makes use of system dynamics (SD) models embedded in game-based learning. In this project, as part of the SUSTAIN course, we try to develop small illustrative SD simulation models that will allow for experimentation in a consequence-free environment. These simulation models will then be translated to game elements, mechanics and potential playing scenarios for a table top / board game that deal with sustainability issues. The purpose of this project under development is to help students of higher education achieve competences such as the ability of constantly assessing the environment, operating and adapting to it through continuous and iterative individual process of revision from their frames of reference, and to provide the material to comprehend systemic complexity. We expect these competences to allow them to deal with complex decisions and decision making processes in their future careers in private and public organizations, and provide insights into the complexity and the effort required to achieve the Sustainable Development Goals (SDGs)

The Rural-Urban Food Systems’ Links with the Agenda 2030: From FAO Guidelines on Food Supply and Distribution Systems to a Dairy Sector Application in the Area of Bogota

What should be the policy to meet urban food needs in developing countries and those in transition? This is a key question of the Food and Agriculture Organization of the United Nations (FAO), which was posed into the “FAO’s methodological and operational guide to study and understand Food Supply and Distribution Systems (FSDS) to cities in developing countries and countries in transition” in order to face the current overwhelming increase of urban population and the increasing urbanization pressures on food systems. Following some previous work in the field where it was argued that clarifying the various problems and structure behind Food Supply and Distribution Systems (FSDS) in urban environments is vital to assess policies that aim at meeting urban food needs, the purpose of this paper is to show that the methodological approach known as system dynamics modeling and simulation can lead, in terms of knowledge and/or theoretical contribution, to the unfolding of complexity in this area of research as well as bring into the analysis the relationships across a few goals of the Agenda 2030. As an additional result, we show how the developed model can be applied (case of the production of milk for consumption in the city of Bogota, Colombia) to analyze the dynamics of food supply and distribution systems in urban environments