February 27, 2015
Create a business-simulation: from A to Z. Part 1
Сreating a business simulation is always connected with a detailed survey of customer's needs, a thorough study of the company's operation system, and a deep immersion in the business processes, being the key to a future product. In this article, I would like to clarify this complex, but incredibly exciting process in a detailed way.
This part of the article is devoted to the objectives of business simulation and its general concept development. Please note: this algorithm is suitable for online simulations without face-to-face sessions with a trainer.
This part of the article is devoted to the objectives of business simulation and its general concept development. Please note: this algorithm is suitable for online simulations without face-to-face sessions with a trainer.
What are the benefits of business simulation?
- People gain experience through trial and error in a risk-free environment. Making a decision in a real life leads to unavoidable consequences, since you can make any mistakes in the game and see how they affect the final result.
- The player gets the opportunity to hone skills and knowledge gained. The game experience helps you structure theoretical knowledge and determine the most successful models of behavior. While playing, you can practice in choosing the best options for actions and decisions.
- The game experience has a positive impact on the player's involvement and motivation.
Generally, a business simulation is quite an expensive development, thus, in most cases, it is worth creating them for 100 managers or more. It is economically sound to develop the business simulations for 1000 individual employees or more.
What goals does the business simulation pursue?
- Train specific skills, e.g. to identify clients' needs or to decide on project resource allocation.
- Build a holistic picture of company performance, understand working principles in different departments, their connection, and mutual influence.
- Broadcast the corporate culture in general and in particular.
The first step of development: create a project plan
First of all, you need to identify the main target audience of the project. Then, you should identify educational goals for each segment of the audience. You need to indicate what knowledge the participants should get, what skills they should develop, how should they change their behavior after the business simulation is over.
Sometimes, one of business simulation goals is the employees' assessment. It may include the knowledge and analytical skills of the participant. The evaluation of communication skills may either have a complex structure or only cover the basics. The participants progress is being assessed to improve their motivation. You may check the example of the progress assessment in the well-known "Lumosity" service. You don't get there any assessment of your skills, but you can track your progress: where you have started and how your answers (solutions) have improved during your work with the service.
Sometimes, one of business simulation goals is the employees' assessment. It may include the knowledge and analytical skills of the participant. The evaluation of communication skills may either have a complex structure or only cover the basics. The participants progress is being assessed to improve their motivation. You may check the example of the progress assessment in the well-known "Lumosity" service. You don't get there any assessment of your skills, but you can track your progress: where you have started and how your answers (solutions) have improved during your work with the service.
Use limitation
It is worth paying attention to the operating conditions for a business-simulation: whether you will use it at home or in the office, on a tablet or on a laptop, what is the data flow-rate.
It is worth paying attention to the operating conditions for a business-simulation: whether you will use it at home or in the office, on a tablet or on a laptop, what is the data flow-rate.
Off top
Historically, the main genre of business simulations is step-by-step strategies. Considering that management activities go hand in hand with finance, business simulations are often economic strategies. The player's actions are not limited in time: the player makes all necessary decisions and starts the move. At that time a range of parameters is calculated, they depend on the player's decisions and force majeure circumstances. It can be a single user or a multi user strategy: in the former case, the participant should get the maximum result without any interactions with other participants; in the latter case, it is a team game or a competitive game. The player may either be a part of a team and manage different units or play in a competitive market when each participant develops his own company. Modern business simulations use the elements of a real-time strategy when it is possible to talk to a mentor if the participant has faced any issues. Thus, the consultation time or the number of attempts to solve the client's issue is limited.
The second step: concept design
The business simulation concept should solve a range of issues
The plan of the main screens and the management areas
To identify the suitable game for the participant, you should study the subject area out. E.g. if we are talking about the management of an industrial enterprise, then we may create a model of the main production areas, starting from input resources and the technological process up to the final product. In the sphere of retail sales, we may provide the following screens: location selection map, screens for sales management, logistics, human resources, procurement, administrative and economic part.
For each management sphere, it is worth identifying and reflecting the key management parameters and macro-indicators in the concept. E.g. the key features for retail sales management are a line of goods, prices, promotions, loyalty programs, etc., as well as the seasonal factors which are beyond the player's control. Traffic, conversion, average purchase amount would be considered as the macro indicators.
A script and a plot
A script and a plot are illustrative of the initial conditions of the game, goals, player's capabilities, scenario and the result, expected after the simulation is over. Below are three examples of the script.
Testing
The description of the built-in testing mechanism, the evaluation of advance in the participant's knowledge and skills, and the feedback mechanism. It is typically located in the player's profile and reflects the current progress and the overall result in the business simulation. If the model of knowledge assessment allows interpreting the results, then the system can provide participant's results assessment, and identify development areas and recommended activities.
Game mechanics and engagement tools
Simple game mechanics include ratings, levels, badges (various small rewards provided to the player for his activity). More complex mechanics are the tutorial scripts and training quests, that display the advance in knowledge and skills in the player's profile.
Basic game and training cycle
The game cycle is a detailed version of the game performance with its timing of each action. It helps you determine the approximate time needed to complete the game.
Evaluation of development period and costs
When you have created the concept that solves all the mentioned issues, the iterative process of the business simulation development goes into action. I'm going to talk about it in the second part of the article.
The plan of the main screens and the management areas
To identify the suitable game for the participant, you should study the subject area out. E.g. if we are talking about the management of an industrial enterprise, then we may create a model of the main production areas, starting from input resources and the technological process up to the final product. In the sphere of retail sales, we may provide the following screens: location selection map, screens for sales management, logistics, human resources, procurement, administrative and economic part.
For each management sphere, it is worth identifying and reflecting the key management parameters and macro-indicators in the concept. E.g. the key features for retail sales management are a line of goods, prices, promotions, loyalty programs, etc., as well as the seasonal factors which are beyond the player's control. Traffic, conversion, average purchase amount would be considered as the macro indicators.
A script and a plot
A script and a plot are illustrative of the initial conditions of the game, goals, player's capabilities, scenario and the result, expected after the simulation is over. Below are three examples of the script.
- In the beginning, the player can work on a low-capacity production area. When the game is underway, the player should increase the enterprise capacity, efficiently allocate resources at each step, and plan product release and sales. The player's goal is to get the maximum profit. Some unforeseen events happen during the game, e.g. raw materials prices rise, loan rates change.
- The player has some fixed resources: the store and a flow of customers, the last one depends on the season and is beyond the players' control. The player's goal is to manage available resources to maintain balance at every step. At the beginning of the game, the store runs at a low level, and the player's task is to debug and to improve processes, to reduce costs, to increase sales and to attract more customers. The player's success criterion is the store's profit.
- The player has some area (region or district), where he needs to place some objects (outlets, branches, centers) with a specific influence area, costs, and indicators. When the game is underway, the player should gain the greatest influence on the given area, he should expand all available resources and allocate them effectively. The player's goal is to gain the maximum influence and get the maximum profit. Some unforeseen events happen during the game, e.g. new players may appear, the political situation may change.
Testing
The description of the built-in testing mechanism, the evaluation of advance in the participant's knowledge and skills, and the feedback mechanism. It is typically located in the player's profile and reflects the current progress and the overall result in the business simulation. If the model of knowledge assessment allows interpreting the results, then the system can provide participant's results assessment, and identify development areas and recommended activities.
Game mechanics and engagement tools
Simple game mechanics include ratings, levels, badges (various small rewards provided to the player for his activity). More complex mechanics are the tutorial scripts and training quests, that display the advance in knowledge and skills in the player's profile.
Basic game and training cycle
The game cycle is a detailed version of the game performance with its timing of each action. It helps you determine the approximate time needed to complete the game.
Evaluation of development period and costs
When you have created the concept that solves all the mentioned issues, the iterative process of the business simulation development goes into action. I'm going to talk about it in the second part of the article.
by DMITRY KOSHELEV
Privacy policy
1. Any information transfered by the Parties to each other when using the Website resources is considered to be confidential.
2. The user gives permission to the Level LLC Company to collect, process and store their personal data, as well as to send text and graphic advertising information.
3. The Parties are obliged to adhere this agreement, which regulates legal relations for the establishment, modification, and termination of the privacy mode for the Parties' personal information, and not to disclose confidential information to third parties.
4. The Level LLC company collects two types of information about the User:
1) the personal information deliberately disclosed by the User to the Level LLC Company to use the Website content;
2) the technical information automatically collected by the Website software at the time of its visit. During the User's visit, the information from the standard server logs is automatically available for the Help Desk. It includes the IP address of the User's computer (or the proxy server if it has been used to get access to the Internet), the ISP name, the domain name, the type of browser and operating system, the information about the website used to transit the Website, the website pages visited by the User, the date and time of these visits, the files that the User has downloaded. This information is analyzed by the software in the aggregated (depersonalized) form to examine the Website traffic; it is used in proposal development for its improvement and progress. The connection between the IP address and the User's personal information is never disclosed to third parties, except where required by the law of the User's residence country.
5. The Level LLC Company takes the User's personal data security very seriously and never provides the User's personal information to anyone, except upon the direct request of the authorized government body (such as, upon written request of the court). All personal information of the User is used to communicate with him, to execute the order concluded between the Website Users with the use of the Website resources, to analyze the Website traffic, to develop proposals for its improvement and progress, and may be disclosed to other third parties only with his/her permission.
6. The Level LCC Company protects the User's personal information and applies common security methods to protect information from loss, distortion and unauthorized distribution. Its security is implemented by software network protection tools, access control procedures, cryptographic data protection tools, and the privacy policy compliance.
7. The website implements a user authentication technology based on the cookies. The cookies are small files saved on the user's computer through a web browser. The cookies may be saved in the computer used to access the Website and will be used later for automatic authorization, for collecting statistic data, website traffic data in particular. The Website Administration does not store personal data or passwords in cookies. The user has the right to prohibit the cookies saving on the computer for website access, by proper configurations in his/her browser. It is well to bear in mind that all services using this technology may not be available.
2. The user gives permission to the Level LLC Company to collect, process and store their personal data, as well as to send text and graphic advertising information.
3. The Parties are obliged to adhere this agreement, which regulates legal relations for the establishment, modification, and termination of the privacy mode for the Parties' personal information, and not to disclose confidential information to third parties.
4. The Level LLC company collects two types of information about the User:
1) the personal information deliberately disclosed by the User to the Level LLC Company to use the Website content;
2) the technical information automatically collected by the Website software at the time of its visit. During the User's visit, the information from the standard server logs is automatically available for the Help Desk. It includes the IP address of the User's computer (or the proxy server if it has been used to get access to the Internet), the ISP name, the domain name, the type of browser and operating system, the information about the website used to transit the Website, the website pages visited by the User, the date and time of these visits, the files that the User has downloaded. This information is analyzed by the software in the aggregated (depersonalized) form to examine the Website traffic; it is used in proposal development for its improvement and progress. The connection between the IP address and the User's personal information is never disclosed to third parties, except where required by the law of the User's residence country.
5. The Level LLC Company takes the User's personal data security very seriously and never provides the User's personal information to anyone, except upon the direct request of the authorized government body (such as, upon written request of the court). All personal information of the User is used to communicate with him, to execute the order concluded between the Website Users with the use of the Website resources, to analyze the Website traffic, to develop proposals for its improvement and progress, and may be disclosed to other third parties only with his/her permission.
6. The Level LCC Company protects the User's personal information and applies common security methods to protect information from loss, distortion and unauthorized distribution. Its security is implemented by software network protection tools, access control procedures, cryptographic data protection tools, and the privacy policy compliance.
7. The website implements a user authentication technology based on the cookies. The cookies are small files saved on the user's computer through a web browser. The cookies may be saved in the computer used to access the Website and will be used later for automatic authorization, for collecting statistic data, website traffic data in particular. The Website Administration does not store personal data or passwords in cookies. The user has the right to prohibit the cookies saving on the computer for website access, by proper configurations in his/her browser. It is well to bear in mind that all services using this technology may not be available.