Chapter 11
Organizational Simulation for Economic Assessment
11.1 Introduction
This chapter focuses on using organizational simulation as a method for assessing the economics of human systems integration (HSI), particularly from an investment decision-making perspective, and within the context of systems or product development. In other words, what investments in HSI should be made, when in the system or product life-cycle process should they be made, and what outcomes result from these investments. Organizational simulation is proposed as one means of evaluating such investments before they are made. Simulation is an appropriate method for analyzing investment decision making because it enables modeling of complex organizations and systems that are not amenable to purely analytic approaches, and it incorporates the uncertainty inherent in investing. Organizational simulation is an emerging methodology that incorporates computer simulation technology with organizational modeling, human behavior modeling, and potentially immersive organizational experiences (Carley, 2002; Prietula et al., 1998; Rouse & Boff, 2005). As HSI investment decisions occur within the context of organizations, organizational simulation has the potential for a richer assessment of HSI investments than traditional approaches to simulation.
This chapter considers the system or product life cycle as a sequence of activities ranging from research and development, to system design and integration, ...