This is especially true for corporate development and training divisions. Today’s posting could be viewed as a controversial one coming from a business simulations and business games provider. The topic today is how to substantially save money while delivering more. Another way to look at this is a method to deliver world class simulations program for substantially less. Here we go:
Here are three costs saving strategies for delivering a business simulations based training course that can save you an estimated 63%. WOW!
Tip 1: Go from a two or more day solution to one
Tip 2: Require only one facilitator from the simulations firm
Tip 3: Buy a Hybrid Business Simulation Solution
The details:
Tip 1: The One Day Business Simulations-
Let’s assume you have 25 participants in the program. Lets also assume these executives make approximately US$200K per year. This means each participant’s time is worth approximately $563 per day (assuming 10 days vacation). 25 * $563=$14K in savings. Oh, but wait, there is also hotel, food, space rental, consulting time, consulting travel costs. Wow! This is expensive. All in all, going from a two day program to one can save you an estimated $40K or about 17% on total program costs. This is amazing savings and in many cases, a very aggressively filled full day will be an appreciated cut back while still delivering world class cutting edge business simulation based training.
Tip 2: Demand Only 1 Facilitator or Consultant-
We understand that the conventional trend is to have 2 consultants from the simulation development company. Well, its time to be unconventional. There are two benefits of requiring only 1 consultant.
When combined with tip one, saving can be at least 18%
You’re internal facilitators will have more exposure and be given more responsibility with delivering the program. This is fundamentally important because it builds the relevancy, skills, and job satisfaction within your own department.
Tip 3: Go with a Customized Hybrid Simulation (what the heck does that mean?)
Ok, this is going to get a little technical, but read through because this is important.
Customized IT simulations are usually made of 5 pieces.
1. User Interface: This is what the participants see when they make decisions
2. I/O (input output) interfaces: This is what the simulation talks to that makes magic happen. For example, when decisions are made, how does it magically make it’s way into powerpoint? This is where the I/O interface comes in.
3. Logic Kernel (what?): This is where much of the calculations happen. Its the icky models, math, assumptions, and other data that calculates the results of the participant’s decisions.
4. Low Level Interface: This is the portion of the simulation that enables the simulation to speak with computer. For example, this is what enables simulations to create print outs, create color on the screen, etc...
5. I know I said 5, but there are usually two I/O interfaces so take a look at 2 above.
So now this is where it gets interesting. As someone who has developed and delivered many IT simulation solutions I can tell you I live most of the time in part 3: the Kernel. This is because if it doesn’t work well, everything falls apart. Bad data in creates bad data out. What’s interesting here, is that many of the models I create have much of the same logic or methods.models. The real difference is that assumptions are different. With this logic, why can’t much of the kernel be reused? Do you think the participants care if the Kernel has been reused from a standardized model? Think of it like this? Do people care if the same motor in a BMW appears in the 330i and X5? Nope! Its a darn good motor (one of BMW’s best) and reusing the motor saves consumers money (a lot).
The questions is why not have a hybrid of custom and reusable components in a custom business training simulation or business games? The answer is it should be done this way. The interface and learnings are customized for your needs. This saves an amazing amount of time and thus money. The results for you are an inexpensive custom business simulation or inexpensive custom business game.
The result: We’ve estimated that the cost saving for a custom business simulation is about 63% with these 3 relatively simply steps for you. Heck, most of the work is passed off on the business simulation provider so its even better for you. With some basic assumptions the cost of a program can go from about $225K to $84K. Wow! That is less then half the cost.
In other words, you’re doing more with less! Comments?
