Managing Business Complexity: Discovering Strategic Solutions with Agent-Based Modeling and Stimulation

Hardcover
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Author: Michael J. North

ISBN-10: 0195172116

ISBN-13: 9780195172119

Category: Management - Technology

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Agent-based modeling and simulation (ABMS), a way to simulate a large number of choices by individual actors, is one of the most exciting practical developments in business modeling since the invention of relational databases. It represents a new way to understand data and generate information that has never been available before—a way for businesses to view the future and to understand and anticipate the likely effects of their decisions on their markets and industries. It thus promises to have far-reaching effects on the way that businesses in many areas use computers to support practical decision-making.Managing Business Complexity is the first complete business-oriented agent-based modeling and simulation resource. It has three purposes: first, to teach readers how to think about ABMS, that is, about agents and their interactions; second, to teach readers how to explain the features and advantages of ABMS to other people and third, to teach readers how to actually implement ABMS by building agent-based simulations. It is intended to be a complete ABMS resource, accessible to readers who haven't had any previous experience in building agent-based simulations, or any other kinds of models, for that matter. It is also a collection of ABMS business applications resources, all assembled in one place for the first time. In short, Managing Business Complexity addresses who needs ABMS and why, where and when ABMS can be applied to the everyday business problems that surround us, and how specifically to build these powerful agent-based models.

The Challenge     3Why This Book?     3The Who, What, Where, When. Why, and How of Agents     3Why Agent-Based Modeling and Simulation Is Needed Now     4The Foundation of ABMS     5Why ABMS Is Useful, Usable, and Used     6How ABMS Works: An Overview     8Incremental Discovery, Design, and Development     8How This Book Is Organized     8Case Studies     9Note     9References     9The ABMS Paradigm     11Parts Make the Whole     11The Two Fundamental Types of Models     11Nondeterminism     13The Cycle of Innovation     14Other Angles on Nondeterminism     16Choosing Behaviors to Model     17The Spectrum of Model Uses     18Discovering That the Whole Is Greater Than the Parts     22Summary     22Note     23References     23Agents Up Close     24Agents: An Overview     24Agent Attributes     24Agent Behaviors     27Simple Agents or Proto-Agents     27ComplexAgents     31A Market Example     41Discover, Design, and Develop     43Notes     43References     43The Roots of ABMS     45ABMS in Context     45Historical Roots     45Complexity Science     46The Diffusion of ABMS     55Plectics Redux     56References     56The Role of ABMS     59The Big Picture of Modeling and Simulation for Business Applications     60A Supply Chain Example     63A Survey of Modeling Approaches     66When to Use Agents?     93Blended Modeling Approaches     93Summary     94Note     95References     95Discovering Agents and Agent Behaviors     97Agents Are What They Do     97Social Agents     97Examples of Behavioral Theories     97Agent Diversity     101Other Agents     101Multi-Agent Systems     101Artificial Intelligence     102Discovering Agents     102Discovering Agent Behaviors     102A Market Example     112Acting Up     114References     114Office ABMS     116Progressive Development     116Prototyping     116ABMS Environments     117The Four Model Growth Paths     117Leveraging Change     118Returning to the Questions     121Office ABMS Architectures     122The Office ABMS Continuum     123Examples     126Back at the Office     128Notes     128References     128How to Do Desktop ABMS     130ABMS on the Desktop     130Agent Spreadsheets     130Dedicated ABMS Prototyping Environments     161A Market Example     171Summary     182Notes     182References     182How to Do Participatory ABMS     183Live and In Person!     183The Start of It All     183Strengths and Weaknesses     184Developing Strong Minds     186Turning Over Rocks     187Details, Details, Details,     187A Market Example      190Summary     194Note     194References     194How to Do Large-Scale ABMS     195From Desktops on Up     195Features Galore!     195Current Toolkits     206The Large-Scale Modeling Life Cycle     209Designing Large-Scale Models for Use     210Agent Patterns and Antipatterns     215Examples     217Summary     219Notes     219References     219ABMS Verification and Validation     221V&V Overview     221Verification     222Validation     226Related Aspects of V&V     231Summary     233References     233A Visual Approach to Data Collection and Cleaning     235Tasty Morsels     235The Fact Food Pyramid     235A Model Diet     239Marshmallows and Campfire Stories     239Cooking Times Vary     240Data Quality     241A Recipe for Success     248Dinner Is Served     253A Market Example      258Summary     259References     260Understanding and Presenting ABMS Results     261Analyzing ABMS Results     261Presenting ABMS Results     278Seven Steps     282Notes     282References     282ABMS Project Management     283The ABMS Business Function     283The Fundamentals     283Project Goals     284Stopping Mission Creep     284Champions     285The Domain Skills Pyramid     285ABMS Project Structures     286The ABMS Business Process     292Growing Up     296References     297Rising to the Challenge     298The Who, What, Where, When, Why, and How of Agents     298Useful, Usable, and Used     299Index     303