Escaping the Linearity Trap : Better Simulation Models for Management Support

This contribution aims to show a way towards better models for management support. We compare linear and nonlinear models in terms of their respective performance. Based on a case study, the respective benefits and shortcomings are fleshed out. A linear spreadsheet model and a nonlinear System Dynamics model are used to deal with one and the same issue: capacity planning in a large telecommunications company. Our analysis refers to both the qualities of the models and the process of model building in that firm. The necessity of non-linear models, when dealing with complex dynamic issues, is substantiated, and strategies for the implementation of such models in organizations are outlined.