What is a Business Simulation?
A business simulation is an experiential learning tool where participants learn by running a virtual business in an interactive, risk-free, and realistic environment. Business simulations games help practice and improve business skills, such as business acumen, financial and market penetrations, decision making, problem solving, teamwork, communication, and leadership.
Reasons for using a business simulation
Put theory into practice
The dynamic environment of business simulations allows participants to put theory into practice in a risk-free environment. Through this kind of experimentation, participants can put theories to the test, see what works, and become innovative in their solutions to problems.
Boost participant engagement
Learning outcomes are highly dependent on the conditions and motivation for learning. Business simulations are hands-on learning tools that involve competition between teams/participants. The game-like nature of business simulations is proven to engage participants and develop deep-learning skills such as collaboration, critical thinking and problem solving.
Practical environment for soft skills development
When playing a business simulation participants need to apply and practice important soft skills. These include but are not limited to adaptability and reliability, teamwork, conflict resolution, critical thinking, communication, and problem solving.
Increase entrepreneurial and enterprise skills
Business simulations develop participants’ holistic thinking, commercial acumen, decision-making, and strategic skills.
Higher knowledge retention
Experiential learning methodology is the foundation of business simulations, and provides a higher level of knowledge retention compared to other instruction methods.
Learning to fail and to cope with uncertainty
Failure is never pleasant, but learning from your own mistakes is key part of self-improvement. Business simulations provide a risk-free environment where failure is safe, yet the lessons learned are genuine and applicable in real life. Studies have shown that failure in a business simulation actually improves learning, as participants are more likely to reflect on and analyze their decisions when faced with suboptimal results.
Flexibility
Online business simulations can be applied in a classroom, hybrid, or virtual format. Groups can consist of fewer than 10 participants to thousands. Simulation content can be adjusted according to the target group, and facilitation can be handled by the organization’s own resources or externally.
A business simulation is a powerful tool for organizational learning and development. Business simulations enable your people to align your people on strategy, improve their business acumen and business finance skills, and ultimately improve your bottom line.