Just as an airline pilot must practice many hours in a simulator before flying, these digital tools are also available for business managers, business leaders and entrepreneurs.
To understand why Business Simulators are included in any of the major Business Administration or MBA training programs today is simple: they provide a good channel to practice business decisions.
Airlines use simulators for their pilots to learn how to deal with the worst weather conditions or when aircraft failures occur. Knowing the results of the maneuvers undertaken by the pilots in a short time is one of the facilities that only these games can provide. The same is true in the business world.
For example, they can measure how their new products sell, how their work teams perform (and the social benefits they provide), as well as the types of partners that can help or affect the profitability of a company, all in a simulated environment.
What is a business simulator for?
Do you want to start a business and would like to predict how your business will work? Discover why business simulators are one of the best tools of the digital evolution to improve your processes and create a preview of their behavior.
Among other possibilities, the participants you choose can compete to achieve sustainable growth or gain more market share against their opponents. And, under certain rules, just as in a real corporate situation, instructors and trainees can visualize both the strategic procedure they performed in the test and its impact on their decision-making.
If you’ve heard of video games, the term RPG (role-playing game) is one of the best known. They are those in which people adopt an avatar, with which they travel through worlds and must complete missions to climb the ranks. Something similar happens with business simulators of this type, except that the tasks performed by each participant are related to crucial aspects of the company.
Some studies have revealed that most businesses fail due to inexperience of the owner, administrative issues, financial conflicts, and many others due to fiscal problems, sales and collections, or production issues.
To prevent this from happening as an entrepreneur or formal businessman, you can resort to business simulators that will help you test strategies and generate changes. Business simulators are based on a virtual business simulation game that aims to give entrepreneurs their first contact with the business world and businessmen the possibility of making decisions without risk in the real world.
What is the objective? They serve as a support to help people experiment in a business environment by making their own decisions, which involves the management of their own business.
In general, Business Games or business games can be used for various business trainings such as: general administration, finance, human resources, etc… the aim is to simulate business environments and thus promote the training of players in business skills, management, marketing, etc…
Computer-supported business simulation originated from military war games and emerged in the late 1950s. Business simulation games, including non-computer-based board games and experiential activities, have since been used as a learning tool for teaching management, but are also regularly used in universities and, in particular, in leading business schools. As an example, the University of Washington has been using business simulation games in classes since 1957.
I admit that the first hour and a half of the game was a bit complex. Theoretical and riddled with new knowledge. Surely the terminology used, as well as some of the concepts that I was not used to, took me out of my comfort zone. But once I learned what a premium is, what a combined ratio is, reinsurance and a few other terms, it all started to make sense.