Unit 13: Systems Thinking & Business Structure Integratedness

Systems Thinking

An approach to understanding problems holistically by considering all interacting entities and their relationships.

Causal Loop Diagram (CLD)

A graphical notation showing relationships among system elements, including feedback loops.

Feedback Loop

A closed sequence of causes and effects where an element indirectly influences itself.

Positive Feedback Loop

A loop that reinforces change in the same direction (e.g., bank balance growth from interest).

Negative Feedback Loop

A loop that counteracts change to stabilize the system (e.g., temperature regulation).

System Behavior

Patterns exhibited by systems, which can be fixed, periodic, or transient over time.

Vensim

Software used to demonstrate systems thinking processes through modeling and simulation.