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think  about the big picture

Working too closely to the problem creates blind spots. Step back and take a big picture approach to help you see more. You may be thinking about details without seeing the whole system.

model  simple and complex systems

Problems don't occur in a vacuum, they occur within a system. Developing a model around that system allows you to view and understand key relationships that cause the system behavior.

learn  in a risk-free environment

In developing your model, you inherently learn more about the system. Simulating models provides a risk-free environment to test What-if scenarios, identify solutions, and avoid unwanted behavior.

share  your simulation with everyone

Simulations are incredibly valuable learning tools. Easily share knowledge with interactive, engaging graphical user interfaces. Stakeholders can quickly come up to speed on the gained knowledge.

meet  Emily

Meet Emily. Emily has a great job in the healthcare industry with an income of $4,000 per month. She lives modestly in a studio flat and has fixed living expenses of $2,000 per month. Generally, she allows herself $2,000 per month on luxury spending. This allows her to enjoy a relaxed fun lifestyle and indulge her favorite pastime, biking.

examine  current situation

Emily likes to stay organized. To help track her finances, she uses her credit card for all her expenses. On the first of each month, she pays off her credit card in full, so she starts off each month with a zero balance. Her current credit limit is $8,000, but her dad always told her to maintain an emergency fund, so she keeps a credit cushion of $4,000.

explore  scenarios

While at work one day, Emily receives an email from her biking community saying someone has dropped out of their upcoming European bike tour and there is now an opening available. Emily has always wanted to bike through Europe to see the sights and jumps at the opportunity. Since she does not have time to save for her trip, she decides to use her credit card and dip into her credit cushion to cover the trip.

discover  unintended consequences

Emily has a spectacular time on her trip. However, when she gets home she realizes how much she spent! Emily only has enough income to pay her normal $4,000 towards her credit card bill. This leaves a $2,000 balance. Thinking she will be able to pay it off slowly in the future, she continues with her normal spending habits.

understand  the numbers

Upon returning from her trip, Emily meets up with her friend Stella to tell her about it. While looking at pictures from the trip, Stella inquires how Emily paid for her extended trip. Emily explains that she used her credit card as it would not affect her day-to-day spending and she could pay the trip off slowly over time. Stella is concerned with this idea as she knows credit card interest rates are high. She suggests they build a model of this with her dynamic modeling software to see the possible outcomes.

experiment  with possibilities

After running various scenarios, they discover that if Emily reduces her luxury spending for several months, she can pay of the debt quickly and pay only $142 in interest, versus $8,000 if she doesn't. Fascinated with the possibilities and benefits of dynamic modeling, Emily and Stella spend lots of time discussing the different areas dynamic modeling can be used.

leverage  Stella for your next project

Using premium modeling tools offered in Stella software, test concepts and unlock your understanding of systems around you.

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