DEMONSTRATING A NEW, CROSS-FUNCTIONAL BUSINESS SIMULATION: VISION+ Developments In Business Simulation & Experiential Exercises, Volume 22, 1995 150 DEMONSTRATING A NEW, CROSS-FUNCTIONAL BUSINESS SIMULATION: VISION+ Pete Mazany, University of Auckland, New Zealand Andrew Sharpe, University of Auckland, New Zealand ABSTRACT We will demonstrate a new, cross-functional computerised business simulation environment, called Vision+, and discuss how it can be used for tertiary-level teaching and in the business world. INTRODUCTION Vision+ is a business simulation environment being developed by VALU Ltd, based at the University of Auckland. It allows small teams to act as managers of manufacturing firms, which are competing in a market. Each period the teams make a set of decisions. These decisions are then analyzed, results computed and reported back to the teams, ready for the next period’s decision. Players enter their decisions through a Windows application, which has been written specifically for the task. Reports are generated through a separate Excel-based module. PRIMARY OBJECTIVES OF A VISION+ SIMULATION • To improve understanding of strategic planning and implementation. • To improve the integration of the different functional areas: product development, marketing, distribution, production, manufacturing capacity and process, and finance. • To develop understanding of the role of team dynamics in effective decision-making. • To provide practice in the use of computer systems in making decisions. A STANDARD SCENARIO A standard scenario has been developed for use with Vision+. It has been set up to model a bicycle industry similar in size, scope and culture to that of Australia and New Zealand. We call the country in which it exists “New Australia” for the lack of a better name. It requires each team to make decisions for a specific company, which they manage. All companies start out as identical, giving them equal opportunity to explore different strategy options. They take the company on as a going concern and must leave it as a going concern. TEACHING USES During September and October 1994, a beta version of Vision+ was run with a class of executive MBA students using the bicycle scenario. The simulation formed part of a one-semester course on “Advanced Strategic Management”. The program’s remote access system enabled simulation decisions and results to be quickly communicated. An initial briefing document describing the scenario was distributed a few days before the first class. Along with logistics the first class also included a presentation covering the key aspects of the scenario. The first decision was due later the same day. From then on, the decisions were due twice a week. Although this put the students under time pressure, it was necessary to have at least seven decision periods to allow the strategic nature of the scenario to unfold sufficiently. In conjunction with the decisions, teams completed assignments analyzing their decision-making processes and their companies’ strategies. This was to encourage them to reflect on the experience as it progressed, and to improve their learning. At the conclusion of the simulation, students received a debrief of the logic of the model underlying the simulation. This was in preparation for an exam question requiring them to prepare a Vision+ decision for a company in a similar situation to those they had faced in the simulation. An important point is that students received marks only for their assignments and the exam. It was made very clear that no marks were allocated to their company’s performance during the simulation. This was to encourage experimentation and to de-emphasize the competitive nature of the situation. TEACHING RESULTS At time of writing a Masters thesis is being completed, evaluating the effectiveness of the exercise as a Developments In Business Simulation & Experiential Exercises, Volume 22, 1995 151 learning experience for an executive MBA class. We expect to have results from this thesis to present by March. However the following are some observations that may be made at this stage: • A high level of “buy-in” was achieved as indicated by time spent on the exercise. Students indicated that they were spending 6-10 hours a week on the simulation (in addition to class time). • A high overall rating of the experience. Of a class of around 45 students, all except three rated the learning experience as “Very Good” or “Excellent”. TEACHING PLANS Although the executive MBA class rated the exercise a success, there are several ways to improve it as a learning experience. These include: • An initial familiarization phase before starting the simulation proper. • Running the simulation over a longer time period, reducing time pressure on individual decisions. • Incorporating teaching modules addressing specific areas related to the simulation, such as strategy formulation, team processes, marketing, production, and finance. • For a few periods focus on specific areas in turn, by restricting the decision set available. WHAT DIFFERENTIATES VISION+? Vision+ is: • Windows-based. • Designed to be used on a network. • Produces Excel spreadsheets as outputs. • Team-oriented. • Stores its data in a standard database format, allowing flexible retrieval for experimental analysis. BIOGRAPHIES Pete Mazany PhD (Management Science, Yale University), BSc, MCom(Hons) (University of Auckland). Pete Mazany is currently a Senior Lecturer in the Management Science and Information Systems Department at the University of Auckland, New Zealand, and is Managing Director of The Veritas Accelerated Learning Unit (VALU) Ltd, a small company that specializes in facilitating the development of strategy in mid-size organizations. His research interests include the use of experiential tools (outdoor and interactive workshops, computer simulation) for strategy development and team building. He received his PhD in Operations Research from Yale University in 1987, and then worked for the Boston Consulting Group, before returning to New Zealand. Andrew Sharpe BSc (Hons) Computer Science, BCom (University of Auckland). Andrew Sharpe is a full-time member of the VALU team. His work areas include the implementation of PC networks and Performance Measurement/Executive Information Systems in mid-size organizations, and the development of a computerised business simulation: Vision+. Andrew is a graduate of both the Science and Commerce Faculties and hence is at home in both technical and commercial environments. His underlying strengths are in the area of analysis and modellings. Table of Contents Volume 22, 1995 Simulation Performance, Learning and Struggle Are Good Simulation Performers Consistently Good? Cognitive and Behavioral Consistency in a Computer-Based Marketing-Simulation-Game Environment: An Empirical Investigation of the Decision-Making Process Chalk & Cheese: Executive Short-Course vs. Academic Simulations Revisiting Personality Bias in Total Enterprise Simulations Are Good Strategies Consistently Good? Investigating the Use of a Computer Simulation as an Effective Pedagogical Tool for the Application of a Strategic Model The Problem of determining an Individualized Simulation's Validity as an Assessment Tool A Simulation Based Analysis of the Value of Information in the Hrebiniak Joyce Typology of Adaptation Relative to Porter's Generic Strategies The Impact of Sales and Income Growth on Profitability and Market Measures in Actual and Simulated Industries A Comparison of a Stand Alone Version of a Simulation with the Traditional Competitive Version Computer-Assisted Gaming of International Business Analyzing Simulations with Computer-Based Programs and Applying the Experience to a Real-World Business A Preliminary Investigation of the Use of a Bankruptcy Indicator in a Simulation Environment Graduates' Views on the Use of Computer Simulation Games Versus Cases as Pedagogical Tools An Analytical Advertising Model Approach to the Determination of Market Demand Dealing with the Complexity Paradox in Business Simulation Games A Prototyping Approach for Incorporating Large Data Bases into Media Planning Simulations: An Example Using Magazine Media Through the Looking Glass, Inc: Superior-Subordinate Personality Type and the Leniency effect Evaluating the Effectiveness of Role Playing Simulation and Other Methods in Teaching Managerial Skills Student and Teacher Perceptions of a Management Simulation Course Performance Evaluation: The Effect on the Propensity to Create Budgetary Slack Management Team Formation for Large Scale Simulations Comparative Static Analysis with the Complete PPA Package: A Strategic Market Planning Tool Consistency in Intent: Learning Objectives at the 1994 Intercollegiate Business Policy Competition A New Twist on an Old Game: The Business Strategy Game: A Global Industry Simulation 3ed Evaluation of Performance in Management Simulation: A Management Coefficients Model Building SimuWorlds: Strategic Management Games of the Future Bulls and Bears: A Stock Market Simulation A Systems Thinking Paradigm and Think Computer Simulation Model of Broadcast and Cable Television Industry Competition Jacket Factory The Sales Management Simulation The Marketing Management Simulation A Demonstration of Promodel Demonstrating A New, Cross-Functional Business Simulation: Vision+ A Cost Chain For The Business Strategy Game Simulation Special Session On Experiential Teaching Compensation Dilemmas: An Exercise In Ethical Decision-Making Organizational Storytelling: Telling Tales In The Business Classroom Evaluating Experiential Training: Case Study And Recommendations The Internship Portfolio: An Innovative Tool For Experiential Learning, Critical Thinking, And Communication An Ethnographic Analysis Of The Pedagogical Impact Of Cooperative Communicating Consumer Behavior: A Long-Term Integrated Exercise Using Personal Consumption Journals And Consumer Analysis Papers An Experiential Paradigm For Teaching Business Problem Solving Developing Leadership Skills The Spss® Student Assistant: The Integration of A Statistical Analysis Program Into A Marketing Research Textbook Negotiating With Your Students Using TQM Principles To Transform Accounting Systems Into An Experiential Exercise Enhancing The Effectiveness Of Outdoor-Based Experiential Training Using Virtual Reality Concepts Case Writing In A Developing Country: An Indonesian Example Experiential Learning Using Focus Groups How Real Should Experiential Pedagogy Be? A Viewpoint From Our Students Reengineering The Internship: A New Approach To Experiential Learning Utilizing The Cosmopolitan/Local And Marginal Man Constructs To Measure Students' Propensity For Creativity Developing Experiential Processes For Teaching Quantitative Techniques For Business Team Learning Roles: A Cooperative Learning Technique Creating the Ultimate Small Business Student Experience: Melding Score/Ace with SBI The Development of Trust in Work Teams: The Impact of Touch Some Outcomes of Experiential Learning: How the Cultural Dynamics of Different Countries are reflected in Workplace Norms & Values Incorporation of Job Analysis Results in Various Forms of Selection Interviews Chudesno, Inc.: An Evaluation of an Experiential Training and Development Simulation An Exercise for Exploring the Relationship between Jungian Psychological Types and Organizational Dynamics Partnership: A Radical Approach to Experiential Learning Partnership: A Nice Idea, But How Do I Get Started? Recognizing Discrimination at Work Using Critical Incident Skills Questions to Help Students Become More Successful at Job Interviewing The Video Project Introduction to Psychological Type Theory Come On Down Understanding Facilitation for Development and Continuous Learning: A Micro-Workshop Leadership and Empowerment: An Experiential Exercise in Decision Making Experiential Exercises and Pedagogy Track Workshop: Selecting a Manager for Maquiladora, Inc. Experiential Training In Multi-Cultural Corporate Settings The Role of Facilitation as an Aid to Complete Learning An Experiential Exercise to Illustrate Difference in Information Processing Behaviors and Styles How to Deliver Accessible Survey Results Age Diversity in the Workplace- Family Feud Style Nafta Standoff: A Cross-Cultural negotiating Role-Play Three Strikes and You're Out!: A Downsizing Experiential Exercise