Characterizing Business Games Used in Distance Education Developments in Business Simulation and Experiential Learning, Volume 33, 2006 CHARACTERIZING BUSINESS GAMES USED IN DISTANCE EDUCATION Ricardo R. S. Bernard Federal University of Santa Catarina – Brazil bernard@cse.ufsc.br ABSTRACT The Internet created new opportunities for business simulation applications in general and business gaming applications in particular. Two approaches are currently in use for the latter. The First approach comprises devising web-based simulators, both new and converted ones. The second approach encompasses all conversion types of existing simulators. This paper is twofold. First, it proposes a taxonomy to the different types of business games used in distance education, presenting their characterizations, advantages and disadvantages. Second, it presents an example of an Advanced Hybrid Model with applications both in distance education and traditional courses. KEYWORDS: Simulation, business games, distance education, e-learning. INTRODUCTION Business games are profiting from the advances in information technology. The first models were spreadsheet based and they were handled without any computer assistance. Andlinger (1958) shows an example of this type. Such models were quite simple and they were very susceptible to processing errors. In the next generation, business games were converted, or devised, to mainframes. Therefore, more complex models were created and the errors were drastically reduced. However, the portability problem arose; i. e., the models could only be played when a mainframe computer was available. The personal computer (PC) eliminated the problem of portability by permitting to emergence of a next generation of business games. Consequently, its use was widespread. The Internet extended the question of portability by giving the possibility to eliminate the traditional face-to-face interactions. Actually, the participants of a business game course can have access to the simulation when they want and where they are. Internet brought new possibilities not only to management simulation, but also to the business education field in general. Fritzsche and Cotter (1992) were the first authors to highlight the benefits of the Internet for simulation and experiential exercise in the ABSEL conferences. Twelve years later (2004), ABSEL recognized its importance by creating a new research track to examine online education. However, the Internet has also created a dilemma for developers, especially for those that have already well established implemented models: what to do with existent models considering that the future lies in running simulations based on the Internet? One option is rewriting the existing algorithms using Internet programming languages. The Java language has been the natural choice because of its capabilities (Kuljis and Paul, 2003; Pillutla, 2003). If this option is made, developers have to be conscious that high funding will be necessary, time has to be considered, and software stability will be lost, at least in a first moment. In other words, a new software cycle life has to be started. Considering the problems to recreate a business game based on an existing one, an affordable option is to adapt existing models to the Internet. In both options, it is important to highlight that in additional to language programming, designers should also be concerned with other required skills such as graphical user interface, visualization, media features, and other functionalities (e.g., include a help option) considering that the face-to-face contacts are supposed to be reduced, or eliminated, and made in an asynchronous way. Teach (1997), Peach and Platt (1998) and Palia et al. (2000) were some of the first authors to discuss how to adapt current simulation to online environment. Nowadays, many business games are still running without any adaptation to the Internet. For example, ABSEL website has 28 business simulation game packages listed. Seventy percent of them are DOS-based or Windows based (Mak and Palia, 2005). This paper will addresses two issues related to business games used in distance education. First, general characteristics of business games used in distance education are discussed and a taxonomy is proposed showing advantages and disadvantages of each model proposed. Second, an example of an Advanced Hybrid model is presented and some applications to both distance education and traditional courses are discussed. BUSINESS GAMES USED IN DISTANCE EDUCATION A first attempt to classify business games used in distance education courses was presented by Pillutla (2003), who classified simulation games according to how distributed they are distributed. The categories are Client- Server Based, Internet Based and Web Based. Client-Server Based model runs on a Local Area Network (LAN), it is limited to a building or campus and it requires installation of the client software on users’ computers. Internet Based Model uses components such as File Transfer Protocol (FTP) and e-mail other than the World Wild Web (WWW). It can be global, but it can also require client software to be 124 mailto:bernard@cse.ufsc.br Developments in Business Simulation and Experiential Learning, Volume 33, 2006 Stan Basi Ad (E Co B (Tr Orig (Tr installed on users’ uses solely Web br makes use of use deployment and a p 114). This paper exte business games pre Internet, and by sep Based models in Internet is classified millions of compute information” (Long Based category cou Internet Based mod all tools conceived t The Internet pro simulation courses. used only as an in Category Software Characteristic Advantage Disadvantage d-Alone Based Model No changes made in the existent business game No necessary funding and no technical expertise required to convert the simulator No new features available c Hybrid Model Computerized process to input data and to visualize / print out reports No web site available to integrate with the business game Low necessary funding Low technical expertise required Few new features expected to be available vanced Hybrid Model mulated Web Model) Business game is directly linked to a web site Some additional tools of distance education also integrated The model can have all features present in a true Web-Based Model High demand of funding and technical expertise to conversion nverted Web- ased Model ue Web Model) Business game algorithm implemented with a traditional programming language, but running in a web server Stability of existent business game not lost because its algorithm is not modified Possible low performance if compared to an Original Web-Based Model inal Web-Based Model ue Web Model) Brand new business games using only Internet programming tools Highest performance when compared with all other business games used to distance education Highest cost and time involved Table 1 – Different types of business games used for distance education computers. Finally, Web Based model owser as interface. It can be global; it r friendly interface, it has an easy owerful functionality (Pillutla, 2003, p. nds Pillutla’s taxonomy by considering pared to be used exclusively in the arating the Internet Based and the Web five distinct categories. Actually, the as “…a computer system that allows r users around the world to exchange man, 2001). In this sense, the Web ld be considered as a special case of el because FTP, e-mail and WWW are o be used in the Internet. vides two environments to management In the first environment, the Internet is terface device, i. e., to transmit and receive information or to enter decisions and to access reports generated by the simulator. In this case, the core program, i. e., the unit which makes the processing needed to generate the outputs, still continues to run in a local computer or in a Local Area Network (LAN). Types of business games used in this environment are Stand-Alone Based model, Basic Hybrid model and Advanced Hybrid model. The second environment uses a Web-based simulator, where the core program is located in a Web server. Conversely, Pillutla (2003, p. 113) defines the Web-based simulation game as an environment that “… uses a Web- browser as the sole interface for game participants and administrators in running and administrating a simulation game”. This way, the notion of “anytime” and “anywhere” is applicable not only to participants, but also to instructors as well. Types of business games used in this environment are the Converted Web-Based model and the Original Web- 125 Developments in Business Simulation and Experiential Learning, Volume 33, 2006 Anytime and Anywhere Notion Category Instructor Participant Time involved to prepare and to use the game Stand-Alone Based Model No No High Basic Hybrid Model No No Moderately High Advanced Hybrid Model No Yes Moderately Low Converted Web- Based Model Yes Yes Low Original Web-Based Model Yes Yes Low Table 2 – Perceived characteristics of different business games used for distance education Based model. They can be characterized as true web-based models. Table 1 presents the different types of business games used in distance education based on developers perspective; that is, software identification, advantage and disadvantage from a technical viewpoint. Table 2 shows some characteristics of the each type business game from an application perspective. Both tables are discussed next. Stand-Alone Based Model - All business games can be used in distance education even though no adjustments are made in their software. For example, the instructor can ask participants to send their decisions by e-mail. In a next step, the instructor enters the data sent by participants into the business game. After all data are entered, the instructor processes the period, prints out the reports, and scans them. Finally, he sends the scanned reports to participants by e- mail. The main characteristic of this category is that it has no automated link between the business game and any Internet tool. Its advantages are that it is cost free to adaptation to a web site and that no programming technical skills are required, thus, permitting everyone to apply a business game in distance education. Its main disadvantages are the highest demanding time required to run a simulation and no new features are available. Because Internet tools are very user-friendly, this category of business games is not supposed to be used in distance education. At least a minimal adaptation in the business game is advisable to ease its usability; otherwise the instructor will be work loaded. Basic Hybrid Model – The main characteristic of this model is that it is used only when only data entry and released reports processes are automated, i.e., a device is used to execute these processes. Usually, e-mail or FTP components are used to transmit information. An alternative option is having auxiliary software running in a stand-alone PC to make the input and output communication with the business simulator. No specific web site is used to data entry, reports visualization, and print out. The main advantages of the Basic Hybrid Model are the low necessary funding to perform the changes, and the low technical expertise required. As to the disadvantage, it main one is the limited exploration of the Internet resources. Advanced Hybrid Model – The Advanced Hybrid Model uses a web platform linked to the business game based on stand-alone PC. It is heavily dependent on web programming language. Communication is made directly between the business game and a website environment devised specifically for this purpose. Additionally, some tools of distance education are also integrated in the web site, such as announcements, space to download material, etc. This model has two main advantages: It can have all features present in a Web-Based Model and participants playing the game are not able to differentiate between this type and one true Web-Based Model. Its main disadvantages are the high cost involved to convert the model and the strong technical expertise in programming language to the Internet that is required. The instructor is still dependent of a stand-alone PC business game to process the simulation. The notion of “anytime” and “anywhere” is not applicable to the instructor, only to participants. In other words, the Advanced Hybrid Model only emulates a true Web-Based Model. The business games used by Bernard (2004) are hybrid models. Converted Web-Based Model – This model is a natural extension of an Advanced Hybrid model. The basic difference between the Converted Web-Based model and the Advanced Hybrid model is that the latter still runs the simulation on a stand-alone PC. Converted Web-Based model is a true web model, that is, the developers have to make the core program of the business simulator run in a web server. In other words, the algorithm implemented in a traditional programming language (e.g. Fortran, Pascal, Delphi) is maintained, but units of conversions are implemented. This model did not lose the stability achieved by the existent business games because the algorithm implemented remains the same. A disadvantage to be pointed out is the probability of having low performance, when compared with an Original Web-Based Model. Pillutla (2003) presents a good example of how to convert a stand-alone based 126 Developments in Business Simulation and Experiential Learning, Volume 33, 2006 F business game into a We technologies used. Original Web-Base considered the state-of-th distance education, but courses. The conception capabilities. It can be ba can create an entirely ne used, there is a possibilit functionalities to the busin Nowadays, the Orig exception in the busine Internet programming lan supposed to be the defau directly in the Internet, i performance when comp models. The main disadv are the cost and time inv disadvantages if a new bu the Original Web-Based business games in distanc EXAMPLE OF AN M The business games this author as one of the programmed in the Pasca the DOS platform in the business games were upg programming language t Finally, in this decade, converted to a Web participant interfaces ar specifically devised to b igure 1 – A structure of an Advanced Hybrid Model of a business game b-Based model. He also shows all d Model - This category can be e-art business games, not only for also for face-to-face interaction process is made to use all Internet sed on an existent algorithm or it w one. If an existent algorithm is y to improve it, aggregating new ess game. inal Web-Based Model is still an ss gaming field, but as long as guages popularize, this category is lt. Once it was conceived to run t is expected to have the highest ared with the previous analyzed antages associated with this model olved. However, they are not real siness game is to be created. If so, Model is the best option to run e education. ADVANCED HYBRID ODEL to be exemplified in this item had designers. They were originally l programming language to run in latter 1980s. In the 1990s these raded using the Delphi orientated o run in the Windows platform. the business games are being Based category. Nowadays, all e running through a Web site e used in management simulation courses. Many features of distance education web site were already incorporated using the Java and the PHP programming languages. However, the core program units are still running in the stand-alone PC. Therefore, these business games are characterized as Advanced Hybrid Models (SIMCO, 2005; SIND, 2005; SISERV, 2005). The Advanced Hybrid Models encompass the web site, called Web Simulator (www.websimulador.com) and the business games integrated to it. Communication between the Web Simulator and the business games is carried out by using the technical eXtensible Markup Language (XML). Figure 1 presents a diagram of communication between the business games and the Web Simulator. The Web Simulator architecture is composed of three layers, as represented in Figure 2. The first layer is dedicated to the administrator in order to manage the web site. The administrator’s main attributions consist of managing institutions and instructors’ profiles, and releasing simulations to be used. The release process involves defining who will use the simulation (institution and instructor), which simulation will be used (manufacturing, retailing, or service); for how long, and if additional softwares will be used, such as the Decisions Supporting Systems – DSS and the Individual Assessment Tool (options in implementation phase). The second layer is instructor orientated. Each instructor can navigate in all simulations he is associated with. In each simulation the instructor can manage not only the simulation, but also the web site tools. The available tools are access control (by participant or team), announcements, schedule, and an area to download files. The communication between web site and simulator occurs in this layer. There are options to download decisions taken by participants and to upload XML files to be used by the Web Simulator so as to construct reports and graphics. 127 http://www.websimulador.com/ Developments in Business Simulation and Experiential Learning, Volume 33, 2006 Figure 3 presen showing its functi The third lay decisions and vis the main characte participants will n with a true Web they need is acce words, the access the Internet. Thus access is presente ADVA The Adv used by this a traditional course capstone courses University of San Catarina – UFSC) The course is p sessions. Students The professor p simulator and upl Students access r security environm The use enriched the tradi aspects: (i) the acc and anywhere; (ii (iii) students are professor’s time t reports print out i Figure 2 – Layers of a web site devised to support business simulations ts the interface of the Web Simulator onalities. er is accessed by participants to enter their ualize / print out reports and graphics. As ristic of an Advanced Hybrid Model, the ot perceive any differences in comparison Based Model because all the information ssed directly in the web browser; in other can be made by any browser connected to , the notion of “anytime” and “anywhere” d to the participants. NCED HYBRID MODEL APPLICATIONS anced Hybrid Model exemplified has been uthor to both distance education and s. The latter applications are performed in to undergraduate levels at Federal ta Catarina (Universidade Federal de Santa , and in many other Brazilian universities. erformed using face-to-face interaction deliver their decisions at the end of class. rocesses the decisions in the business oads an XML file to the Web Simulator. eports and graphics of the simulation in a ent by using login and password. of distance education technologies tional business simulation course in many ess to reports is made by students anytime ) performance graphics are also available; pleased with the technology; (iv) the o release outcomes is reduced because no s necessary; (v) new Internet features were added, such as space for announcements and area to download files. In addition, two other benefits were also observed: first, the access to the Web Simulator can be made, either by a team or individually. In both cases, the site monitors the navigation, showing which web site areas were accessed. An access report is also available. The professor uses the individual access to include an additional criterion to assess students, thus reducing the dependency of team criteria assessment; a common limitation of business simulations. Second, the use of Internet tools enhanced the image of the course as technologically advanced. The distance education applications have been used to business educations and to contest gaming. Both kinds of applications use similar asynchronous technologies, i.e., there is no timing requirement for transmission of information. As a result, this environment does not allow for instant communication between participant and instructor (Duck, 2005). So far, the asynchronous environment was not considered an important limitation to the applications performed because the simulated companies were composed of a single person or of a team that had constant face-to-face interactions. Consequently, the only desired moment to a synchronous environment; that is, instantaneous communication between participants is the debriefing session. It is in this session that participants have the single opportunity to share the lived experiences and enhance their achieved learning. The debriefing session, as well as other sessions such as the briefing one, can be performed by using a chat room or other more advanced technologies such as teleconferencing and videoconferencing. Contest simulations are applied in both open and private formats. The open contest occurs once a year, having a pre- defined schedule (www.torneiogerencial.com.br), and there is no limit to participants. In a first round, simulated 128 http://www.torneiogerencial.com.br/ Developments in Business Simulation and Experiential Learning, Volume 33, 2006 companies c forming an in the number o kind and th company wit group after fi round. At thi consists in re and in perfor known. In th participants determined in Simulator is companies to Also, no conf companies. B with the hig analyse busi companies. Private conte periods. Aud aiming at int as to stimu associates. In role played prepares a si will have 8, Simulator r Additionally, Figure 3 – Web site devised to integrate business games with the Internet CONCLUSIONS ompete in groups of eight companies, thus dustry. The number of industries depends on f participants. All industries are of the same ere are no interactions between them. The h the highest stock share value in each industry ve simulated periods passes to the next contest s point, there are two possibilities: the first one peating the methodology used in the first round ming additional rounds until the winners are e second one, considering that the number of can achieve thousands, the winners can be the second round. In order to do that, the Web prepared to rank the stock shares of all gether, despite which industry they are in. idential business reports can be assessed by all y so doing, it is possible to observe companies hest stock shares, period to period, and to ness strategies used by the best performed Business games using the Internet capabilities are a reality and they are expected to be the default in the future. However, many existent business games are supposed to be adapted so as to be run in the Internet. The question then lies in “how to adapt the existent business games to the Internet environment” This paper proposed a taxonomy to help both developers of business games and instructors to have the same terminology when discussing the use of business simulations through the Internet. Additionally, an example of advanced hybrid business game was shown and some applications discussed. It was observed that the Hybrid Business Games Model can be successfully used in both distance business education and traditional courses as well. This author is convinced that the Internet is a powerful tool to facilitate the managerial learning through business simulation applications. However, new pieces of research have to be conducted in order to analyse whether the combination of business games with the Internet is also an enabler of additional learning, as stressed by Smith (2005). Moreover, new researches can also extend this paper by including not only developer and instructor’s perspective, but also participant perceptions about the use of business games for distance education. sts usually are run in a single round of 6 to 10 iences are generally formed by universities egrating all students and trade associations so late the managerial learning among their both kinds of contests (open or private) the by the instructor is not so hard because he ngle scenario, no matter whether the contest 100 or 1,000 simulated companies. The Web eplicates this scenario to all industries. all data entry process is automated. REFERENCES Andlinger, G. R. (1958) “Business Games – Play One!” Harvard Business Review. V. 36, N. 02, 115-125. 129 Developments in Business Simulation and Experiential Learning, Volume 33, 2006 130 Bernard, R. R. S. (2004) “Assessing Individual Performance in a Total Enterprise Simulation” Developments in Business Simulations and Experiential Learning, 31, 197-203. Duck, J. (2005) “Creating Dynamic Interaction in a Virtual World: Add Value to Online Classrooms Through Live E-Learning and Collaboration: A Demonstration” Developments in Business Simulations and Experiential Learning, 32, 101-103. Fritzsche, D. J. and Cotter, R. V. (1992) “Benefits of Internet Computer Networks for ABSEL Members” Developments in Business Simulations and Experiential Learning, 19, 5153. Kuljis J. and Paul, R. J. (2003) “Web-based discrete event simulation models: Current states and possible futures” Simulations & Gaming, 34, 1, 39-53. Longman, (2001). Dictionary of Contemporary English. Person Education Limited. England. Mak, W. K. and Palia, A. P. (2005) “Educational Perspective of Collaborative Virtual Communication and Multi-user Virtual Environments for Business Simulations” Developments in Business Simulations and Experiential Learning, 32, 200-207. Palia, A. P., Keong, M. W., and Roussos, D. S. (2000) “Facilitating Learning in the New Millennium with the COMPETE Online Decision Entry System” Developments in Business Simulations and Experiential Learning, 27, 250-251. Peach, E. B. and Platt, R. G. (1998) “Total Enterprise Simulations and the Internet: Improving Student perception and Simplifying Administrative Workloads” Developments in Business Simulations and Experiential Learning, 25, 44-50. Pillutla S. (2003) “Creating a Web-based simulation gaming exercise using PEARL and JavaScript”. Simulations & Gaming, 34, 1, 112-130. SIMCO (2005) Retailing Simulation – Instructor’s Guide. Bernard Sistemas Ltda.. Florianópolis, Brazil: www.bernard.com.br SIND (2005) Manufacturing Simulation - Instructor’s Guide. Bernard Sistemas Ltda. Florianópolis, Brazil: www.bernard.com.br SISERV (2005) Service Simulation - Instructor’s Guide. Bernard Sistemas Ltda. Florianópolis, Brazil: www.bernard.com.br Smith, J. A. (2005) “Evaluating the Direction of Research in Online Education: Are We Going Anywhere?” Developments in Business Simulations and Experiential Learning, 32, 340-343. Teach, R. (1997) “The design of an Internet game.” Developments in Business Simulations and Experiential Learning, 24, 336-343. http://www.bernard.com.br/ http://www.bernard.com.br/ http://www.bernard.com.br/ Table of Contents Volume 33, 2006 Learning Assurance Using Business Simulations Applications To Executive Management Education Team Teaching In An Integrated Business Course Using Critical Problem Based Learning Factors In An Integrated Undergraduate Business Curriculum: A Business Course Success Personality Type And Strategic Planning Business Games As Strategic Management Laboratories The Relationship Between Students' Success On A Simulation Exercise And Their Perception Of Its Effectiveness As A PBL Problem Forecasting Accuracy And Learning: The Key To Measuring Simulation Performance The Business Strategy Game: A Performance Review Of The New Online Edition Using The Socratic Method And Bloom's Taxonomy Of The Cognitive Domain To Enhance Online Discussion, Critical Thinking, And Student Learning Using Negotiation Exercises To Promote Critical Thinking Skills Effective Leadership Experiences For Management Majors In A Futures Class The Role Of Learning Versus Performance Orientations When Reacting To Negative Outcomes In Simulation Games Is Pay Inversion Ethical? A Three-Part Exercise Simulations And Experiential Exercises - Do They Result In Learning? Have We Figured It Out Yet? Examining Program Management In Business Simulations: Student And Faculty Views Validating Business Simulations: Do Simulations Exhibit Natural Market Structures? Characterizing Business Games Used In Distance Education Utilizing Games In A Graduate Level Instructional Game Course Employment Interview Preparation: Assessing The Writing-To-Learn Approach Simulations - Bridging From Thwarted Innovation To Disruptive Technology Creating An Authentic Cultural Lens Using Case Dialogue Learning By Fire: Reflections Of A First Time Online Instructor An International Internship With A Service-Learning Focus Learner Participation In The Online Learning Experience: Help Or Hindrance? Any Given Sunday: Intervention In Pursuit Of Simulation Team Parity Beginning With The End: Creating An Experiential Exercise From Assessment Criteria Simulating Life Cycles: Life Span As The Measure Of Performance In Business Gaming Simulations It's Puzzling: Communications, Competition, And Cooperation Balanced Scorecard Implementation For Strategy Management: Variation Of Manager Opinion In Real And Simulated Companies Cases And Business Games: The Perfect Match! Three-Attribute Interrelationships For Industry-Level Demand Equations Using A Web-Based Module To Teach Information Literacy Decision Support System For Demand Forecasting In Business Games The Invalidity Of Profit=F(Market Share) PIMS Validation Of Marketing Games Online Market Test Laboratory With The MINSIM* Program The Gas Mileage Game - A Policy Simulation Delivered Cost And Differentiation Applied To Threshold 3rd Ed. The Effect Of Team-Leadership Modes On Team Performance: A Preliminary Study The Design And Use Of A Macroeconomics Simulation Using Maple Software: A Pilot Study The Instructor's Toolbox: A Meaning-Centered Framework For The Social Construction Of Experiential Learning Incorporating Strategic Product-Mix Decisions Into Simulation Games: Modeling The 'Profitable-Product Death Spiral' Group Composition And Groupthink In A Business Game A Direct Approach To Teaching Business Ethics A Decision Support System For Planning Sales, Production, And Plant Addition With Manager: A Computer Simulation Polish - American Entrepreneurial Business Cooperation Workshop Utilizing The Income/Outcome Simulation Student Leader Training Exercise Student Preference To Mode Of Learning In Hong Kong Experiential Learning For Technology-Based And Management Programme In Hong Kong: A China Study Tour A Price Game With Product Differentiation In The Classroom Discrete Event Modeling In A New Transportation Simulation Supply-Side Modeling In A Total Enterprise Simulation The Quality Game Towards A Massive Multiplayer Online Business Simulation Making The Connection: Improving Virtual Team Performance Through Behavioral Assessment Profiling And Behavioral Cues Individual Learning Producing A Learning Organization: 'Playing Dice With Polar Bears' Narratology and Ludology: Competing Paradigms or Complementary Theories in Simulation Framework For Evaluating Internet Research Using Children's Games To Illustrate Strategy Concepts: Is Less Better?