A Guide To Business Simulations: Part 3 -The Case for Simulations Now and in the Future

Welcome to the final instalment of our three-part interview with Technology For Learners on business simulations. In the first part of the interview , we explored the basics of business simulations and their role in modern training and education. In the second instalment , we took you through the history, development, and design process behind business simulations, and explored their unique pedagogical power. In this finale, we examine the ways in which the impact of simulation-based training can be measured, before delving into future trends and the impact of AI.

Whether you are an educator, a business professional, or simply curious about the power of simulations, this article promises to provide valuable insights into the impact of using these sophisticated educational tools, and how they can future-proof your training initiatives.

In this article, we will cover: 
- Measuring the Impact of Simulation-based Training
- Navigating the Future: Collaborations and AI
- Tips on Vendor Selection        

Measuring the Impact of Simulation-based Training

Corporate Impact

Will: Jeremy, when it comes to measuring the outcomes of simulation-based training, how do you gauge the actual impact on participants' decision-making capabilities?

Jeremy: That's an excellent question, Will. The effectiveness of simulation-based training is backed, in multiple domains, by logic, extensive experience, and research. Still, especially for larger implementations, measuring impact is an integral part of the training solution, typically assessed by the customer organization’s learning and development team.

To assess impact accurately, organizations need to employ a mix of quantitative and qualitative methods to clearly differentiate the effects of simulation-based training from other variables. This typically begins with pre- and post-training assessments that track specific skill improvements. Also, using control groups for comparative analysis and applying statistical techniques like regression analysis to adjust for external factors helps pinpoint the training’s true impact. This approach should be supplemented by gathering real-world evidence from case studies and feedback from supervisors and peers.

Will: It sounds like you're able to directly link simulation-based training to business outcomes. Can you give an example?

Jeremy: With the caveat that it was beyond our purview to demonstrate a clear causal link, our most impressive story from recent implementations was a client in Asia—a large equipment supplier—that managed to double their sales within a year after a simulation workshop. The workshop focused on helping their commercial teams understand the importance of reallocating resources from low to high-potential opportunities, which ultimately led to a massive uptick in sales.

Of course, competencies and the training thereof is only one of the many components that need to be in place for an organization to improve its performance. Our partner IIBD Ltd. uses the 6 pillars of strategy framework to describe this: ultimately, an organization's performance is only as strong as the weakest link in the chain.

Will: Does HFX Technologies focus on long-term relationships with clients to be better able to support them in their competency training initiatives?

Jeremy: Absolutely, Will. We view our engagements with clients as long-term partnerships, which allows us to deeply understand their unique challenges and goals. This approach helps us continuously refine and optimize our simulations to meet their evolving needs. By maintaining relevance and delivering ongoing value, we help develop key leadership and strategic skills that drive real business results.

Academic Context

Accrediting bodies like AACSB, EQUIS, and AMBA view the use of simulations positively and as a result, forward-looking institutions are actively seeking simulation software that best fits their programs.

Will: How do you measure the impact of simulations in academic settings?

Jeremy: In academia, simulations are now well recognized as effective teaching tools that leverage both gamified and experiential learning. Accrediting bodies like AACSB, EQUIS, and AMBA view the use of simulations positively and as a result, forward-looking institutions are actively seeking simulation software that best fits their programs.

The pedagogical impact of simulations in academia is well understood. However, the effectiveness of simulations can be compromised if there are any user experience challenges for either faculty or students. Therefore, impact measurement often focuses on student and teacher satisfaction surveys. We at HFX certainly strive to give both faculty and students an excellent user experience and our deliveries always come with extensive support from our team. As a result, we find that the simulation components of any program score very highly in participant surveys.

One thing we are starting to notice is that many programs are supplementing or even replacing traditional capstone projects or internships with simulations. This is driven by the need to give all students equal access to high-quality, practical experiences that mimic real strategic business challenges—something that can be hard to find in the real world consistently.

Will: That’s fascinating! It sounds like simulations not only provide a risk-free environment for learning but also help equalize access to educational opportunities.

Jeremy: Exactly, Will. Naturally, internships vary in quality - and rarely will they give interns an exposure to the C-suite's major challenges. Simulations on the other hand can offer a controlled yet realistic exposure to strategic decision-making, allowing learners to experiment and learn from their decisions without the fear of real-world consequences. This method boosts confidence and enhances decision-making skills, preparing them for the actual challenges they will face in their careers.

Personal Takeaways

Every training session is unique, and each simulation plays out differently. This variability has taught me a great deal about business strategy and the importance of adaptability. By observing how different strategies play out in simulations, I've gained insights into how businesses can effectively differentiate themselves in the market.

Will: What have been some of the biggest challenges you've faced in rolling out simulations at HFX Technologies, and how have you learned from those challenges?

Jeremy: That's a great question, Will. Launching and running HFX has been a significant learning curve in terms of both business operations and the nuances of simulation-based education. As the chief trainer, a substantial portion of my role involves interacting directly with instructors, many of whom are highly qualified PhDs. These sessions are not only about imparting knowledge but also a learning opportunity for me. I face challenging questions that push me to deepen my understanding of our software and its capabilities.

Every training session is unique, and each simulation plays out differently. This variability has taught me a great deal about business strategy and the importance of adaptability. By observing how different strategies play out in simulations, I've gained insights into how businesses can effectively differentiate themselves in the market. It’s a continuous process of learning and iteration, which not only enhances my expertise in strategic management but also prepares me to better lead HFX Technologies towards commercial success.

This hands-on experience has been invaluable, not just in refining our offerings but also in understanding the real impact of our simulations on learning and decision-making. It's a dynamic learning process where each challenge leads to further refinement and better solutions.

Navigating the Future

On the academic front, there’s a pressing need to maintain integrity in the face of challenges like ‘Chat GPT Cheating’. Our simulations naturally combat this issue because they require solutions to complex problems where there is no single correct answer, thereby inherently deterring cheating.

Collaborations and Agility

Will: You mentioned partnerships with universities, schools, and tech hubs. Could you elaborate on how these collaborations shape the development of your solutions?

Jeremy: Absolutely, Will. HFX collaborates with teams that specialize in developing state-of-the-art simulation-based training tools.

These teams possess exceptional skills in designing and building simulation games and this collaboration allows us to offer a much broader portfolio of solutions than if we were to develop simulations in-house. Ultimately, this synergy between experienced design teams and our distribution capabilities ensures that we are able to continually offer cutting-edge training solutions.

Impact of AI

Will: Looking forward, what do you think are the next steps for HFX Technologies, especially in terms of new features or markets that you aim to explore?

Jeremy: That’s an excellent question, Will. At the moment, we are particularly excited about two particular ways in which generative AI is having a significant impact. On the academic front, there’s a pressing need to maintain integrity in the face of challenges like ‘Chat GPT Cheating’. Our simulations naturally combat this issue because they require solutions to complex problems where there is no single correct answer, thereby inherently deterring cheating. I see this as a big commercial opportunity—simulations are standardized, cheat-proof teaching tools that are also powerful and engaging. With this in mind, we are ramping up our marketing initiatives to academia.

On the product development side, we are keenly exploring enhancements that will make our simulations even more engaging and effective. We’re implementing AI-driven chatbots that provide real-time guidance and support, which not only helps users navigate our simulations more effectively but also enriches the learning experience. These chatbots are just one aspect of our broader strategy to leverage AI to enhance user interaction and deepen the educational impact of our simulations.

Overall, AI’s role in shaping the future of HFX Technologies is fundamental. We are only just beginning to unlock its vast potential, aiming to transform how educational content is delivered and absorbed in academic and corporate settings alike.

Vendor Selection: Advice to Training Organizations

it’s essential to seek partners who offer a consultative approach, not just off-the-shelf software

Will: Finally, Jeremy, what advice would you give to executives or those in higher echelons of academia who want to leverage simulation technology to solve management training challenges?

Jeremy: That’s a crucial question, Will. When looking to integrate such technologies, it’s essential to seek partners who offer a consultative approach, not just off-the-shelf software. You need partners who can help you navigate the specifics of your needs, crafting solutions that are not only effective but also user-friendly, adaptable, scalable, and economically viable.

The key is to choose technology partners who act as true collaborators in the development and implementation process. They should thoroughly understand your industry and the unique challenges your organization faces, enabling them to tailor their solutions to best meet your requirements. This partnership approach is what makes the difference between a standard solution and one that truly transforms your operations.

Will: This all sounds incredibly exciting, Jeremy. It seems that HFX Technologies is leading the way in this field. I’m looking forward to seeing how these developments unfold. Thank you so much for your time and for sharing such valuable insights about the application of simulation-based training in business and academia.

Jeremy: Thank you, Will. It’s been a pleasure discussing these topics with you. I’m glad to provide some insights into what we do at HFX Technologies. Hopefully, it sparks some ideas for your projects and helps you see the potential in using simulations to address complex training challenges.

Will: Cheers, thanks a lot, Jeremy.

Jeremy: Take care, bye now.

Will: Goodbye.

To learn more out more about how simulations can be used to train your current and future leaders, please contact us today