Early adopters of Business Simulation are using it primarily to enable strategic change. Business Simulation applications immerse the student in a simulated environment where he or she can practice tasks to master skill and gain understanding. It has been shown in study after study that the learner will achieve higher degrees of retention and cognition than by other methods of instruction. Business Simulations are commonly described as flight simulators for business.
LEARN BY DOING
The overarching theme in a business simulation is
that the student learns by doing. The actual work environment is simulated
and the student performs the tasks that they will have to perform on the job.
In a flight simulator, the pilot takes off, flies a pattern, and lands. Along
the way, unpredictable incidents may occur and the pilot must address and
resolve them or risk crashing. In a business simulation, the student performs
activities such as starting a company, creating a production strategy, and
defending an investment plan to a board of directors. Unexpected events or
changes in the business climate arise that the student is challenged to resolve.
RISK FREE
Business simulations allow the student to learn how
to navigate very treacherous situations without risk. In a flight simulator,
a pilot can learn to recover from wind shear or land a plane with an engine
fire by trying different techniques until he or she is very skilled at knowing
what works and what doesn't. In a business simulation, a student can repeatedly
attempt to recover from poor cash positions, labor disputes, manufacturing
snafus, and the like, without risking the financial health of a real company.
All the while the student is learning from successes and failures.
TIME COMPRESSION
In real life it may take years to become very skilled
in a particular field, largely because it may take years to encounter all
of the business situations that may arise in the field. It also may take years
for the results of strategic business decisions to unfold and it may be difficult
to see how specific outcomes tie back to the original decisions. Business
simulation compresses time-to-competency in two ways. It exposes the student
to a broad array of scenarios in a short period of time, and the student can
see the results of decisions play out in a few seconds, so it's easier to
relate to outcomes.
REALISTIC SIMULATION
Flight simulators have varying degrees of fidelity.
Some have cartoon-like graphics, some have photo-realistic graphics, some
have very accurate representations of the cockpit and controls. Some even
have walk-in cockpits that move and roll to give physical feedback. Similarly,
business simulations have varying degrees of fidelity and sophistication.
Some have relatively simple tasks, like balancing a checkbook, and the student
is only told if the task has been completed correctly or incorrectly. Others
have very complex tasks with a variety of solutions, none of which is completely
correct. The student must evaluate subtle tradeoffs like how much money to
invest in machinery to reduce labor costs, or whether to rely on contractors
rather than hire full time employees.
INTELLIGENT INTERACTION
One feature of business simulations that helps make
them effective is the use of simulated personalities that interact with the
student. These agents may play the role of subordinates, peers, mentors, or
adversaries. They can help guide the student to successfully navigate the
simulation, or they may challenge the student to find innovative ways to succeed
in the face of competition. For example, the student might get advice from
several simulated team members in creating a business plan. The student might
then defend the plan to a panel of simulated investors to get startup money.
BASED ON SOUND LEARNING THEORY
Business simulations wrap the content and the learner
in an engaging story where the learner pursues business objectives. Humans
have evolved to learn well from stories and cognitive research has borne this
out. Also, content is not pushed at the learner at a moment when he or she
might not be receptive to it. Instead the learner pulls content as needed
to achieve the goal, thus increasing retention.
LEARNER PACED/ LEARNER DIRECTED/ LEARNER LOCATED/
LEARNER SCHEDULED
Because business simulations are computer-based, the
student can go as slowly or as quickly as appropriate. The learner can repeat
parts of the simulation as frequently as desired to hone skills. Business
simulations can be delivered via the Web or even on CD-ROM to maximize location
and scheduling convenience for the learner.
EXPERT CONTENT AND ADVICE
One of the most value-enhancing features of new business
simulations is the pervasive integration of expert content and advice. Media-intense
reference materials can introduce the learner to the content in a structured,
intuitive fashion, leaving the learner able to explore at will. Video war
stories from veteran experts can help the student get an insider's viewpoint
into the business area being simulated. Artificially intelligent agents can
watch every move and decision the student makes to provide customized, intelligent
feedback that fosters understanding and motivates learning.
COMPREHENSIVE LEARNING EXPERIENCE
When coupled with online reference materials and expert/peer
discussion sessions, business simulation can act as the centerpiece of a comprehensive
learning experience. Learning by doing in a risk-free, time-compressed environment
with intelligent interaction and support is the fastest and most effective
way to build confidence and competency in your workforce.
© 2000 Knowledge Dynamics, Inc.