We recently posted a comparison chart of how process modeling, Social Network Analysis (SNA), and Value Network Analysis (VNA) are different. People sometimes also ask how is System Dynamics Modeling different from Value Network Analysis? 

The below example is not VNA. In fact, it is a particularly overwrought example of a system dynamics model has been floating around the Internet since it was first blogged by NBC's Richard Engel. More recently it was lampooned by the New York Times

Anything this complex might be useful for an analyst or a project team running scenarios - but should never be used as a general communication device. In value network modeling we encourage people to leave the complex visuals in the hands of the analysts. For general communication, simpler views with fewer nodes and links are better to make a point. At this level of visual complexity indicators and metrics are far more helpful to aid decisions.

While it is always fun to poke fun at bad examples, there is no question that System Dynamics is a powerful modeling tool that brings sharp insights into complex systems. It deals with internal feedback loops, stocks and flows, and time delays that affect the behavior of the system over time. Originally developed inthe 1950s to help corporate managers improve their understanding of industrial processes, system dynamics is currently being used throughout the public and private sector for industrial design as well as policy analysis and design. It is very useful for understanding how even seemingly simple systems display baffling nonlinearity and repetitive patterns.

System Dynamics modeling and value network analysis are complementary methods but very different. Boeing uses both approaches together as part of their Lean+ toolkit. They use system dynamics modeling to define the complex behaviors of the system and then engage managers in value network modeling to define the roles and interactions that are required for the system to function well. In this image Bob Wiebe, Dan Compton, and Les Music reference a system dynamic model that was used as a guide for the more detailed role-based value network map to the right. You can learn more in the Boeing Frontiers article, Testing the Limits. See the Wikipedia article on System Dynamics for some great animated examples.

So how is value network modeling different? Here is a simple comparison chart of the two methods. System Dynamics can be used to model work processes and human interactions but rarely shows them together. It is notablethat System Dynamics has a pretty steep learning curve, while the basics of value network modeling typically can be mastered in a shorter span of time. Thus System Dynamics is more of an "expert" tool while VNA is a tool for practitioners and managers.

System Dynamics modeling applications are some of the many applications that are compatible with the Value Network Insights application. 

For more on Value Networks see: