A spreadsheet shows you a snapshot in time. System dynamics shows you the plumbing behind those numbers.
Whether you are modeling a game economy, a viral outbreak, or a SaaS business, complex systems are just collections of accumulation, flows, and feedback loops.
Before diving into the specific simulations, here is how to read the visual canvas.
Every system is built using three core building blocks.
What accumulates over time. This is the water sitting in the system.
e.g., Cash, Active Users
What changes the tanks. These are the rates of change filling or draining.
e.g., Monthly Revenue
The external factors that control the valves. The sliders you tweak.
e.g., Interest Rates
Below is a simple Balancing Feedback Loop. Water flows into the tank, but as the tank fills up, the pressure triggers a drain pipe to open, eventually stabilizing the system.
Try this: Drag the
Target Levelslider up and down. Watch how the pipes automatically adjust their flow rates to hunt for the new balance.
When you start combining tanks and pipes, you create loops. There are only two types you need to know:
Now that you know how the plumbing works, let's look at how these loops dictate the real world.