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System Dynamics Modeling for Strategy Implementation of Service Innovation

System dynamics have over the years proven its usefulness in corporate strategy forming. The purpose of the paper is to investigate, how system dynamics modeling can be supportive for strategy implementation of service innovation in organizations. In order to do so, we briefly discuss the problem about strategy implementation of service innovation and propose methodology based on the quantitative model for service innovation strategy (QMSIS). Besides conceptual considerations, we base our arguments on a detailed case study from an auto financing company. Findings of this paper are that system dynamics modeling can be helpful for strategy implementation in regards to both strategy refinement and transfer of insights and understanding underlying the innovation process. The originality of this paper lies in the proposition of the usage of system dynamics modeling in strategy implementation of new service development (NSD), where the field of system dynamics traditionally make use of flight simulators or qualitative system dynamics, rather than formal modeling and simulation.