10 ReasonsWhy Simulations are the Ideal Learning ToolFor your Business

Computer-aided simulations should be a part of every business’s toolkit.

The ability to test a plan and learn about its strengths and weaknesses through simulations creates a safe learning environment to help you “see” the possibilities and maintain business resilience.

Here are 10 reasons why simulations are the ideal

learning tool for your business:

1. They Provide Experiential Learning.

In the 90’s, there was a lot of talk about developing learning organizations. Every organization makes mistakes, it was thought, but organizations that fail to learn from their mistakes will not lead the pack. Simulations raise the bar by providing you, the leader, with a decision space.

A computer-aided simulation allows you to test a plan and determine what decisions are needed and at what time they are most effective. By making and running successive iterations of the plan, you can learn the nuances of the initiative you are crafting and be a more effective decision-maker.

2. There Are No Consequences for Failure.

Money, risk, people and effort are all represented in the computer. If your plan has weaknesses, they can be highlighted by the simulation before you spend a dime, accept risk, move people or change organizational priorities.

Simulations provide you with a realistic portrayal of your major business systems.

3. Simulations Provide a Great Testing Environment.

The inter-relationships between data are not replicated, so a change in one data set will not affect another data set. Computer-aided simulations can account for those systemic relationships

Computer simulations help you test a plan before making the investment in time, money and people. Implementing a new strategy is inherently risky and leaders strive to find reasonable assurances from their data that the plan will succeed. But leaders are constrained by data that is often presented in “silos.”

4. They Are Easily Repeatable.

Simulations enable you to test fire your plan, multiple times, make adjustments, and get it right.

Probability for success improves when you can test in multiple iterations.

While developing the V-2 rocket, the Germans launched 42 very expensive rockets over two years, each one resulting in failure. While you may not be launching rockets, any corporate strategic plan represents a large investment and a great deal of risk.

5. Simulations Flatten Complex Organizations and Processes.

Because simulations help leaders to visualize their decision space, they effectively flatten the organization.

Once more, if there are changes that need to be made, leaders can easily see how improvements in their function will work out for the rest of the organization.

Anyone who has experience managing a large organization knows that it is often difficult to get one department manager to see what their department is doing to other downstream departments.

Leaders in one end of the business are able to see the effects of their function on leaders in the other end of the business.

This virtual environment effectively accounts for these capacities and their interactions with each other.

6. They Offer a True Test of Capacity.Simulations effectively link your data sets together and replicate the ways that the functions interact.

These systems all work at a certain capacity, that is determined by the amount of manpower or machine power available to work.

A computer-aided simulation is easily scalable. You can painlessly add different functions, resources or relationships.

7. They Are Scalable.

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When compared to the investment necessary to support a strategic plan, simulations represent less than 1% of the total cost. Once more, they can be repeated over-and-over for no additional cost.

8. They Are Inexpensive.

Simulations are economical. The more times they are used, the less expensive each use becomes.

9. They Are Economical

Flexibility is the key feature. Requirements for your decision making can change over time.

10. Simulations Are Flexible.

As you develop more data and understand more clearly the interplays within your business, your simulation can flex to model them.

© Takouba Security, LLC.

James Rollins is Managing Partner of Takouba, a firm that provides consultation and planning for companies in the areas of business continuity, incident management and business operations recovery. He manages the day-to-day operations of Takouba and its foreign subsidiaries, and is the site author of the Takouba Blog.