Business Simulations for Education VS Forecasting VS Entertainment?
When designing or choosing a business simulation, there are three categories to consider, based on the objective of the program:
- Entertainment
- Education
- Forecasting
Three Categories
Entertainment*simulations are games designed for fun. Some of the most famous have been Capitalism, Sim City, Roller Coster Tycoon, and more. Keep in mind that this article is about *business simulations, not other subjects.
Educational simulations are designed to teach business. My GoVenture line of games and simulations falls into this category.
Forecasting simulations are designed to predict the future — or perhaps to model or identify possible outcomes. Process simulations may also fall into this category.
Interchangeable?
A business simulation designed for one objective may indeed be used for another. Although you may be less likely to achieve your core objective. For example, I have written about how All Games Are Educational — even if they are not designed for this purpose.
I have also written about the benefits and challenges of Using Entertainment Games for Education.
But what about forecasting? Can educational or entertainment games be used for forecasting? Yes and no — it depends on what you want to predict.
For example, playing my GoVenture Entrepreneur business simulation has been shown to predict how well students will do with creating new venture business plans (they do better). Similarly, students playing my GoVenture CEO simulation do better on standardized tests. And I'm certain that anyone who starts a real business will be better prepared to avoid common mistakes and increase the chances of success.
But there is another type of forecasting which I will illustrate with this question that I often get asked about our restaurant simulation:
I'm thinking of starting a new restaurant. Can I plug my numbers into your simulation to see how well I will do?
The answer to this question is "not really." Our GoVenture simulations are designed for learning, not forecasting. As realistic as our simulations are, and as beneficial as they may be with what I've described above, they are not designed to predict the future. They are designed to prepare you for the future.
And there are two things that we do to prepare learners for the future that do not align with predicting the future.
- First, we accelerate the consequences of the business. Our simulations are so realistic and comprehensive that they can take several hours to play the full experience. Most players only run their virtual businesses for several simulated months — not years. So we must speed up the consequences of certain actions so that the player can experience them. This may include having employees underperform or not show up for work sooner than they might in the real world. Or your personal health dropping fast due to overworking.
- Second, we exaggerate the consequences of the business. If the result of an action is too subtle to see, then the player is unlikely to learn from that consequence. So, sometimes, we make a result more impactful so that it is easier to identify and learn from.
One might argue that these design methods make a business simulation less realistic. That may be true from a forecasting perspective, but not necessarily for learning. For example, the educational objective may be to teach you that price affects sales — but not necessarily that a 10% price increase equals a 12% reduction in sales. The latter would be a forecasting objective — but it's too specific and unpredictable to be a learning objective.
The Right Tool For the Job
As with many other things, success depends on choosing the right tool for the job. Choose the right simulation to achieve your objective.
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I'm Mathew Georghiou and I write about how games are transforming education and learning. I also share my experience as an entrepreneur inventing products and designing educational resources used by millions around the world. More about me at Georghiou.com