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Towards the integration of system modelling with scenario planning to support strategy: the case of the UK energy industry

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  • G Burt

    (University of Strathclyde Business School)

Abstract

A key aspect of strategy is sense-making of the unfolding uncertainty in the business environment and responding appropriately to achieve organisational objectives. However, uncertainty means that there is more than one future open to an organisation. Sense-making is therefore problematic. Scenario planning is one approach to sense-making that helps to explore and understand uncertainty, aiming for the identification of potential predetermined elements in the business environment. In this paper we propose the integration of systems modelling with scenario planning to support the exploration of uncertainty, identify knowledge gaps that set a (subsequent) research agenda, understand the role and usefulness of historical data, and model research outcomes to help reveal potential predetermined elements. Specifically, scenario planning identifies potential predetermined elements in the business environment; system modelling in the form of behaviour-over-time graphs, causal mapping and feedback loops helps in structuring and linking variables and their interaction to provide an understanding of the systemic drivers of these predetermined elements. Methodological integration of this type enhances modellers’ ability to support strategy in organisations.

Suggested Citation

  • G Burt, 2011. "Towards the integration of system modelling with scenario planning to support strategy: the case of the UK energy industry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(5), pages 830-839, May.
    • Handle: RePEc:pal:jorsoc:v:62:y:2011:i:5:d:10.1057_jors.2010.47
    DOI: 10.1057/jors.2010.47
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    References listed on IDEAS

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    3. Roberts, Simon H. & Foran, Barney D. & Axon, Colin J. & Warr, Benjamin S. & Goddard, Nigel H., 2018. "Consequences of selecting technology pathways on cumulative carbon dioxide emissions for the United Kingdom," Applied Energy, Elsevier, vol. 228(C), pages 409-425.

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