In business, training simulation is a virtual medium through which various types of skills can be acquired. Training simulations can be used in a variety of genres; however they are most commonly used in corporate situations to improve business awareness and management skills. They are also common in academic environments as an integrated part of a business or management course.
The word simulation implies an imitation of a real-life process, usually via a computer or other technological device, in order to provide a lifelike experience. This has proven to be a reliable and successful method of training in thousands of industries worldwide. They can be used both to allow specialization in a certain area, and to educate individuals in the workings of the sectors as a whole, making training simulations versatile. Training simulations are not just games; their aim is to educate and inform in an exciting and memorable way, rather than purely to entertain.
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Companies across the world regularly use simulations as a tool to teach employees. With the enormous range of simulation-based activities available, it is unsurprising that the specific aims of the sessions vary widely. Some simulations are focused on making decisions in a particular area of the business, such as personnel or product design, and these are called Functional Simulations. Others give a general overview of a company and give experience of making executive management decisions, and are called Total Enterprise Simulations. In recent years, however, this classification has become somewhat impractical, as increasing numbers of training simulations are involving both elements, and combining both an overall view of the industry with some decisions relating to specific sectors.
Training Simulations normally form part of a program designed to educate employees or students about the skills needed to operate a business, as well as persuade them to "think outside the box" and see the bigger picture.
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Business game (also called business simulation game) refers to simulation games that are used as an educational tool for teaching business. Business games may be carried out for various business training such as: general management, finance, organizational behavior, human resources, etc. Often, the term "business simulation" is used with the same meaning. A business game is defined as "a game with a business environment that can lead to one or both of the following results: the training of players in business skills (hard and/or soft), or the evaluation of players' performances (quantitatively and/or qualitatively)".
Business simulation or corporate simulation is simulation used for business training, education or analysis. It can be scenario-based or numeric-based. Most business simulations are used for business acumen training and development. Learning objectives include: strategic thinking, decision making, problem solving, financial analysis, market analysis, operations, teamwork and leadership. The business gaming community seems lately to have adopted the term business simulation game instead of just gaming or just simulation.
A simulation game is "a game that contains a mixture of skill, chance, and strategy to simulate an aspect of reality, such as a stock exchange". Similarly, Finnish author Virpi Ruohomäki states that "a simulation game combines the features of a game (competition, cooperation, rules, participants, roles) with those of a simulation (incorporation of critical features of reality). A game is a simulation game if its rules refer to an empirical model of reality".
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