Multi-agent simulation of business processes: a theoretical model to manage and report carbon footprint in an emergent organisation

Abstract

This paper proposes the use of multi-agent simulation model for making decisions on business process design in emergent organisations. Empirical and theoretical evidence makes it explicit that theoretical models are useful in defining and solving business problems. It is difficult to gauge the value of new business ideas in a real life business environment and simulation of complex business processes is a potential solution. The simulation process can be repeated as theoretical experiments until simulated results fall within the recommended level. These decisions can then be incorporated with confidence into the real life decision-making process. We critically discuss challenges and opportunities in the areas of managing carbon-footprint and environmental reporting. We show how to build a multi-agent simulation model of business processes as complex adaptive systems and how it can form a decision making tool. In this process, the theory of deferred action is invoked as the base theory.