Approach

Lexidyne uses the Dynamic Modeling methodology to help our clients understand, communicate, quantify, and improve the performance of a wide range of complex processes. Dynamic Modeling has 5 key concepts:

Dynamic Modeling Key Concepts

• An icon-based language
• Feedback between system components
• Behavioral data
• Simulation
• Integration of various analytical methods

An Icon-Based Language

• An Icon-based Language that operationally describes how dynamic processes actually work. The language distinguishes between things that accumulate (stocks) and actions that fill or drain those accumulations (flows).
• Augmenting the picture are auxiliaries, which can serve as model inputs, house simple algebra, or depict dependent relationships between system elements.
• Information conduits (connectors) show how model variables relate to one another.

Feedback Between System Components

• Feedback between system components details the chain of cause-and-effect relationships that drive system behavior.
• Often such feedback relationships include decision rules which result in unintended, sub-optimal outcomes.

Behavioral Data

• Behavioral data, often collected from disparate data sources, which is analyzed and incorporated into the model structure to serve as inputs for various parameter estimates and/or metrics to which model results can be compared.

Simulation

• Simulation of dynamic processes allows for the behavior of a system over time to be calibrated to historical data, evaluated for effectiveness, and tested for ways in which performance metrics can be improved.

Integration of Various Analytical Methods

• Integration of various analytical methods such as regression analysis, logit choice algorithms, and utility functions which flesh out the operational stock/flow model structure with well-established approaches from the world of economic research.
• Current simulation engines such as iThink™ , AnyLogic™ and Vensim® are equipped with powerful optimization routines to provide yet another level of analytical rigor.

• Click image to learn about our approach in greater detail.