Demystifying the World of Business Simulation: What You Need to Know

Simulations navigate complex real-world challenges through highly engaging gameplay. Supported by expert facilitation, participants draw on their own experience coupled with industry best practices to solve these business problems. Participants transform existing processes and systems in ways that can be applied in the workplace.

A well-designed business simulation or serious business game provides an opportunity for employees to learn about the business they work in, key concepts within core business functions, how they are interconnected, and how their individual roles all impact business success.

Business simulations are interactive and immersive learning experiences where participants can experience real-world business scenarios to develop an understanding of industry best practices and their application. They allow the participants to bring their own knowledge and experience and provide the opportunity to test their perceptions and responses, while gaining new knowledge and experience to experiment with and test in a safe environment.

Business simulations can be delivered as in-room events or in a virtual format. There are advantages and disadvantages to both. For example, during the global Covid-19 pandemic, there was a pivot away from in-room simulations to the virtual format.

While virtual delivery methods have improved significantly in recent times, our experience over the last 20 years tells us that in-room business simulations deliver higher levels of business value, participant engagement, adoption, and knowledge retention.

Simulations are often used as key components of cultural change programs to help drive business transformation, particularly in large and complex global enterprises.

The term ‘Business Simulation’ means many different things to many different people. Broadly speaking, simulations in business fall into two main categories: those that are predominately people-centric versus those that are more mathematical, and model-based.

PEOPLE CENTRIC

1. Experiential Business Simulations

Participants are tasked with running a business in a simulated environment based around realistic real-world scenarios. The experiential simulation provides an environment where participants can solve problems, identify solutions, and develop reusable real-world skills in a relatable, risk-free environment that creates an interactive and fun experience.

Experiential business simulations are typically used to support business transformation, engagement, and adoption.

MATHEMATICAL/MODEL-BASED

1. Discrete Event Simulations

These simulation models allow a business to observe specific events that contribute to the development of new or improved business processes.

2. Risk Analysis Simulations

These solutions are designed to create scenarios for risk analysis. They can be particularly useful to organizations that are embarking on large-scale project implementations that are both complex and require changes to technology systems or processes.

3. Process Simulations

Process simulations are designed to model interactions between multiple systems. They attempt to use advanced mathematical modeling to analyze data, such as sales performance and forecasting data, to drive process improvement.

In the context of people-centric business simulations, there are three main types:

1. In-Room Simulations (Synchronous)

A real-time, facilitator-led event that takes place with a group of participants at a physical location. These events are highly immersive and collaborative and provide participants with the opportunity to receive feedback from an expert facilitator with real-world industry experience.

These simulations have a long track record of driving business value, adoption, and knowledge retention. Furthermore, as team-building events, they can be used to bring co-located or disparate teams together, break down silos, and enhance integration.

2. Virtual Simulations (Synchronous)

A real-time, facilitator-led event that takes place with a group of participants online. The use of virtual simulation has increased in recent years with the advent of home-working. These events can be easier to deploy and an effective modality for individual learning. However, their efficacy in driving true transformation is hindered by the limited opportunities they provide participants for team working, collaborative ideation, and immersion.

3. Virtual Simulations (Asynchronous)

These simulations allow participants to access content at times suitable to them in a single-player capacity. Single-player simulations can offer an inexpensive and flexible solution in an individual learning context, but fail to capitalize on key simulation dynamics, such as team building, expert facilitation, and peer feedback.