This is the presentation from our first Webinar conducted on 5th, January, 2013. In this presentation, we build a case for the use of Business Simulations and Games in Education, Learning and Training. To join in our future Webinars, please login to www.epiphanylearning.co.in.

1. Introduction to
Business
Simulations for
Learning
Competition | Winning | Learning
Facilitator: Ajay Dasgupta
Epiphany Learning
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2. Epiphany Learning
Join Us
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Visit – www.EpiphanyLearning.co.in
2 Tuesday, January 08, 2013

3. Epiphany Learning
Setting The
Stage for
Business
Simulations
How we make decisions
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3 Tuesday, January 08, 2013

4. Epiphany Learning
Choices We Make
Imagine that a country is preparing for the outbreak of an unusual
disease, which is expected to kill 600 people. Two alternatives
programs to combat the disease have been proposed. Assume
that the exact scientific estimates of the consequences of the
programs are as follows:
Choose an option from below
1. If Program A is adopted, 200 people will be saved.
2. If Program B is adopted, there is one-third probability that 600 people will
be saved and two-thirds probability that no people will be saved.
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Which of the two programs would you favour?
From Daniel Kahneman and Amos Tversky – Choices, Values and Frames
4 Tuesday, January 08, 2013

5. Epiphany Learning
Choices We Make
Imagine that a country is preparing for the outbreak of an unusual
disease, which is expected to kill 600 people. Two alternatives
programs to combat the disease have been proposed. Assume
that the exact scientific estimates of the consequences of the
programs are as follows:
Choose an option from below
1. If Program C is adopted, 400 people will die.
2. If Program D is adopted, there is one-third probability that nobody will die
and a two-thirds probability that 600 people will die.
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Which of the two programs would you favour?
From Daniel Kahneman and Amos Tversky – Choices, Values and Frames
5 Tuesday, January 08, 2013

6. Epiphany Learning
Choices We Make
In experiments run by Kahneman and Tversky, Most people
selected options A and D (Did you as well?)
The outcome of Program A, B are indistinguishable from outcome
of Program C and D. However, people often chose Program A in
Question 1 and Program D in Question 2
The choices seems to be more
Program A Risk Averse
heuristic (thumb rule) in nature.
Be risk averse when you have a gain
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Program D Risk Taking and risk taking when you are about to
incur a loss.
From Daniel Kahneman and Amos Tversky – Choices, Values and Frames
6 Tuesday, January 08, 2013

7. Epiphany Learning
Choices We Make
“The reliance on heuristic
causes predictable biases
(systematic errors) in judgments
and predictions.”
Daniel Kahneman, Thinking, fast and slow
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So where does this takes us?
7 Tuesday, January 08, 2013

8. Epiphany Learning
Decision
Making In A
Complex
World
An increasingly complex world
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8 Tuesday, January 08, 2013

9. Epiphany Learning
It’s A Complex World Out There
V-U-C-A
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http://beyondplm.com/wp-content/uploads/2012/04/complexity2.jpg
9 Tuesday, January 08, 2013

10. Epiphany Learning
It’s A Complex World Out There
• V = Volatility. The nature and dynamics of
change, and the nature and speed of change forces
and change catalysts.
• U = Uncertainty. The lack of predictability, the
prospects for surprise, and the sense of awareness
and understanding of issues and events.
• C = Complexity. The multiplex of forces, the
confounding of issues and the chaos and confusion
that surround an organization.
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• A = Ambiguity. The haziness of reality, the potential
for misreads, and the mixed meanings of conditions;
cause-and-effect confusion.
http://en.wikipedia.org/wiki/Volatility,_uncertainty,_complexity_and_ambiguity
10 Tuesday, January 08, 2013

11. Epiphany Learning
So We Got Two Things
• We are programmed to take decisions
based on the heuristics that we build
• The world outside is getting more
complex and several problems need
more thought and thinking
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http://en.wikipedia.org/wiki/Volatility,_uncertainty,_complexity_and_ambiguity
11 Tuesday, January 08, 2013

12. Epiphany Learning
What Do Managers Do When Faced With Problems?
• Fight – Need to do something quick
and fast
• Flight – Someone else is going to
solve it
• Freeze – I don’t know what to do
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• Flow – I am in control, I am enjoying
it and I can work it out
12 Tuesday, January 08, 2013

13. Epiphany Learning
What We Can Learn From Other Industries - Aviation
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Pilots receiving simulator training
13 Tuesday, January 08, 2013

14. Epiphany Learning
What Can We Learn From Other Industries - Military
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Sand Table simulations in military training
http://www.army.mil/article/11936/History_of_Military_gaming/
14 Tuesday, January 08, 2013

15. Epiphany Learning
What Can We Learn From Other Industries - Medicine
Simulated training for doctors
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Cybram 001 simulator helps doctors practice brain surgery without
risking lives
http://www.engadget.com/2012/04/18/cybram-001-brain-surgery-simulator/
15 Tuesday, January 08, 2013

16. Epiphany Learning
Business
Simulations
in Learning
and Training
How we make decisions
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16 Tuesday, January 08, 2013

17. Epiphany Learning
Decision Making In The Real World?
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http://en.wikipedia.org/wiki/File:OODA.Boyd.svg
17 Tuesday, January 08, 2013

18. Epiphany Learning
What Do We Have For Managers?
Business simulations
allow learners to:
1. Observe data and
information from the
environment
2. Orient themselves to
the information
3. Decide from options
based on logic and
analysis
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4. Act on decisions and
receive immediate
feedback
The loop repeats itself
18 Tuesday, January 08, 2013

19. Epiphany Learning
What Do We Have For Managers?
Explore 2 Business Games
• http://www.coolmath-games.com/lemonade/
• http://forio.com/sim-store/demos/big-picture-
marketing-strategy.html
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Observe the OODA loop as you explore these
simulations
19 Tuesday, January 08, 2013

20. Epiphany Learning
The Power of Business Simulations
Simulations provide an
High
Live environment in which learners
Projects
can take critical decisions in a
safe environment and receive
effect, correlation, and uncover hidden
Business feedback on their decisions
Simulations
almost immediately. This
Active Exploration
Learners establish cause and
Case Studies facilitates active exploration of
Assignments
relationships and inter-
connectedness of
Lowrelationships.
Lecture
components in a system.
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In simulations, making
Low High
Decision Making and Feedback
mistakes is a norm that leads
Learners apply knowledge and make decisions. to insights and reflections.
Feedback is immediate.
20 Tuesday, January 08, 2013

21. Epiphany Learning
How Simulations Work?
Reality
Learner’s Mental Model
• Active exploration of phenomenon and relationships
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• Challenge and test mental models
• Experiment in simple settings
• Establish cause and effect relationships
21 Tuesday, January 08, 2013

22. Epiphany Learning
Simulations and Games
Competition
Cooperation
A model
Simulations Games Rules
of reality
Participants
Roles
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Simulation games
22 Tuesday, January 08, 2013

23. Epiphany Learning
Feedback is Embedded Into Games
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From – Enterprise Games, Using Game Mechanics to Build a Better Business
Michael Hugos, O’REILLY Publication
23 Tuesday, January 08, 2013

24. Epiphany Learning
Business Simulations and Learning
“While case method teaching is a wonderful way
to examine theories or frameworks statically,
simulations give students a temporal dimension,
an opportunity to experience outcomes that
change based on their inputs over time. Students
get the tacit experience of making mistakes,
Professor Willy Shih of
learning from those mistakes, and then refining
Harvard Business School their decision making.”
+ People to Know
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24 Tuesday, January 08, 2013

25. Epiphany Learning
Join Us
© Epiphany Learning | Course Name
Visit – www.EpiphanyLearning.co.in
25 Tuesday, January 08, 2013

26. Introduction to
Business
Simulations for
Learning
Thank You!
Facilitator: Ajay Dasgupta
Epiphany Learning
Image Courtesy: http://4.bp.blogspot.com/-jsGpaFpcmKs/Tw8Av8ywKxI/AAAAAAAAAwQ/3c_-hOiq-_0/s1600/stock-market-today-results.jpg Learning | Talent Management | Change Management