'Representing' value creation: a combined approach of system dynamics and integrated reporting for the airline sector. (2016)

• Record Type: Journal Article
• Authors: Barnabè, Federico
• Is Part Of: International journal of applied systemic studies. Volume 6:Number 3(2016)
• Page Start: 202
• Page End: 222
• Publication Date: 2016
• Subjects: system dynamics -- integrated reporting -- simulation -- value creation -- business models -- airlines -- low cost carriers -- airline industry; System analysis -- Periodicals; 003
• Languages: English
• ISSNs: 1751-0589

Abstract

This article explores the potentialities of system dynamics (SD) as a support to integrated reporting () for a more transparent representation of value creation processes as well as strategy design and implementation. The article aims to demonstrate that the contribution of an SD approach to is at least twofold: a) SD is suitable for providing an explanation about how a specific business system actually operates, and for making available the basis for understanding past, present and future paths of value creation; b) SD - in the form of both qualitative maps and formal simulation models - may support decision-makers in their exploration of possible trajectories for future performance, according to the strategy that is being designed and implemented. To pursue these aims the article presents a simulation SD model and discusses three different scenarios that have been developed by taking into consideration the airline industry's low cost carriers.