Strategy Testing Using Business Simulations

Hello World-

These scenarios are rare, but they do exist and they are exciting. Using a business simulation and/or serious game for strategy testing. How does this work? Its simple in concept, but complex in execution. Here's how it works:

Strategy Testing Using a Business Simulation

The setup: You have a new strategy you're thinking of implementing. The business plan is written, and everyone has approved of it. There's a little voice inside of you saying, "Is this business strategy right? How will the marketplace change once we change? I'd like to test the strategy first."

The concept: A custom business simulation that will take all the economics of your industry, your company, your business plan, your strengths, your weaknesses, etc. This business simulation for strategy testing runs scenarios. The strategy simulation will then show you potential outcomes based on specific variables. Want to try another scenario? No problem. The strategy simulation lets you try before you buy.

The execution: This is complicated. Creating a business strategy simulation is very complex. The complexity lies in the industry research before building the solution. The solution is a combination of 3 business simulations: Economic models, Reaction models, and Outcome models. Even though these strategy testing models run separately, they are totally reliant on each other.

The value: The value is self explanatory. A business strategy simulation gives leaders the option to try before they buy. Shifting strategy is complex and requires significant resource allocation. Needless to say, this takes a lot of time. Its much better to know the potential outcomes ahead of time.

Summary- Using a strategy testing simulation could be time well spent. You may see things you didn't see before. Using these types of business simulations can be valuable, but takes commitment. It also takes a little time. In most cases, leaders want to do do do. A business strategy simulation is more of a test test test type of solution.

Hope this helps!