Agent-Based Modelling, a Quiet Revolution in Asset Management

Abstract

Over the past 20 years sophisticated technical models of the asset management process have been created, but asset management is a socio-technical process with the interaction between the social and technical systems directly impacting strategy development and the long-term evolution of the asset. To combine both the social and technical systems into one model a small number of researchers have started to use agent-based modelling. By creating these models, stakeholders’ reactions to proposed policies can be explored prior to policy implementation. This ability to explore stakeholder reactions means that, for the first time, asset management strategies can be developed that meet stakeholder expectations, while ensuring the on-going functionality of the asset. This paper provides an introduction to this new modelling technique. This paper also describes how agent-based models can be used to improve performance measurement and management, thus creating a framework for improved decision making.