**2. Overview of the current state**

#### **2.1. Brief introduction in the area of business simulation games**

Wikipedia explains that business simulation games are not a new phenomenon. Computersupported business simulation has an origin in the military war games and came into existence during the late 1950s [10]. By the beginning of the 1960s, 89 different business games have been developed by industrial firms, business associations, educational institutes, or governmental units [11]. They have been used as a learning tool for teaching management [12, 13]. They are regularly in use at the universities with business and management programs, and in particular at the world's major business schools. As an example, the University of Washington has been using business simulation games in classes since 1957 [14]. As an educational tool, business simulation games have grown considerably in past 50 years and have moved from being a supplemental exercise in business courses to a central mode of business instruction [15].

Up to the present time, numerous business games appeared to be of different types or genre. To establish the adequate comparison between all of them and to make the proper survey, it is almost impossible due to the expanding list of business games, as new games are growing day to day. According to the studied literature and Internet reviews, this chapter attempts to present the survey of several games found to be typical for the business environment as they cover the most important educational content that can be gamified.

#### **2.2. Study framework**

games with an educational intent despite the lack of supporting evidences about their effectiveness in the learning process. Their popularity in the past decade has increased significantly and continues to increase [2]. It is widely accepted by the educators that the games used in education should be engaging, although not necessarily funny, while the learning can be implicit or explicit. Despite the fact that many games to be used in education are now readily available, commercial off-the-shelf, no uniform game pedagogy was developed and it could be said that does not exist. It is safe to be assumed also that in the literature a deep research is missing, which links the games to various properties with the type of learning [3]. Earlier games tended to be based on the behaviorist model but there were other games that tried to incorporate experiential, situated and socio-cultural pedagogical models [4]. Among the researchers in the field, it was widely accepted that the learning outcome, when the games are incorporated in the educational process, is dependent upon the appropriate pedagogy and the

Serious games are also used as part of the treatment of some mental disorders such as attention deficit in children, as a way of training for keeping long period attention [6]. Several authors also point out that games can be used to improve self-monitoring, problem recognition and solving, decision making, better short-term and long-term memory, increase social skills such as collaboration, negotiation and shared decision-making as pointed out in ELSPA [7] and by

As a part of serious computer games, the games known as business simulation games support training and learning focused on the management of economic processes. Business simulation games bring effective methods of learning and experience through business challenges that students usually need to meet before setting foot in the real world [9]. In a business simulation game, the participants can select different decisions without any fear for a real loss to the organization in case participants make mistakes. Participants can select actions and can have

The selection of business simulation games for assessment purpose has been made with an intention to demonstrate what kind of business knowledge and skills can be acquired through the gaming. The discussion that follows the assessment points to the limitations of the selected game set. Overall, with game parameters presented and assessment discussed, this chapter attempts to bring educators closer to the real expectations they can have, regarding the achievement of the learning objectives, when an adequate combination of business simulation

Wikipedia explains that business simulation games are not a new phenomenon. Computersupported business simulation has an origin in the military war games and came into existence during the late 1950s [10]. By the beginning of the 1960s, 89 different business games have been

underlying game mechanics [5].

Mitchell & Savill-Smith [8].

experience regarding the consequences of those actions.

228 E-Learning - Instructional Design, Organizational Strategy and Management

games and training is applied in a particular education process.

**2.1. Brief introduction in the area of business simulation games**

**2. Overview of the current state**

Business simulation games can be usually presented as a training technique in which partici‐ pants consider sequence of problems required to be solved by them or to take decisions. The main component of most of the games is the simulation of the ecosystem. They model the realities of the business world by simulating basic – and in some cases advanced – business theories and practices in controlled game environments. Because they simulate the real-world system, they can often be used as a teaching method for executive education as well [16]. The benefits of business simulations are in the possibilities of the students to experience and test themselves in situations before encountering them in real life, give them the chance to experiment and test hypotheses. Within the business simulations offered within a serious game, subjects seem much more "real" to the students or learners than when taught passively from pdfs, PowerPoint, or from blackboards. Extensively, business game simulations in professional world are used most frequently. The game applied is usually based on a request for sequential decision-making exercise structured around a hypothetical model of the operations of an organization. The participants can select different decisions without any fear for a real loss to the organization in case mistakes are made. Participants get experience through the consequences of those actions that can be positive or negative for the game purpose or goal. The learners/students are using their newly acquired skills and knowledge by applying them to a competitive challenge provided within the game.

Business simulations are also in experiments related to learning and cognition. These experi‐ ments and the studies that followed have revealed that people often have an attitude for mastering systems without the necessity to comprehend the underlying principles [17]. As a consequence, business education is nowadays criticized for being mainly theoretically driven and without a component that triggers critical thinking, creativity and innovation [18, 19, 20]. These properties, which are considered as major challenges in university-level education nowadays, were found to be missing in many graduated students. As the process of the globalization and liberalization of the business world has changed the types and qualities of the human capital required by the corporate sector, the business graduates are expected to have not only theoretical understanding of business but also communication and thinking skills [21], in addition to the ability to apply the multi-disciplinary knowledge acquired during their study. The current popularity of business simulation games in education follows from these findings. The interest in using simulation games is also driven by the effectiveness in presenting knowledge and theory. Instructional simulation researchers believe that a gamebased method is effective because of the full-mind involvement in the learning process [22]. The activities in simulation games used in the area of business teaching usually involve observation and reflection, the creation of concepts, the integration of observations into theories and the application of theories into decisions and problem-solving. Students learn through the sequential process of cause and effect, and learning by doing. The underlying sequential processes are intended to motivate the students to explore, to experiment and to learn independently [23].

#### **2.3. Terminology used**

According to the variety of literature in this area, several mixed response about the definition of the business simulation games and its terminology is possible to be found.

Wikipedia (2014) [24] gives the following description of business simulations games: *They are games that generally focus on the management of economic processes, usually presented in the form of a business process. They allow students to practice business by use of relevant economic terminology and concepts. In most cases, the term business (simulation) game and management (simulation) game can be used interchangeably and there is no well-established difference between these two terms.* Wikipedia also mentions the approach of Greenlaw et al. (1962) [25] in game definition as a sequential decision-making exercise structured around a model of a business operation, in which participants assume their role of managing the simulated operation offered in the game. Keys and Wolfe (1993) [26] have defined a management game as a simplified simulated experimental environment that contains enough illusion of reality enabling real-world-like responses by those participating in the exercise.

Other authors define business simulation games as games that are designed for a primary purpose other than pure entertainment [27]. Serious games are considered by Squire [28] as an important response from the education technologist to the "digital natives", which is a generation of students who are raised on digital gadgets and interactive games. For them, the expectation to have interactive experiences in the education media seems very natural.

There are also other views that contribute to the conclusion that there is no pure agreement regarding the definition what exactly can be defined as business simulation games. However, in this chapter for the purposes of the study carried out the following definition is used: Business simulation games are considered as a type of serious games that focus on simulating management or business processes, using the economic terminology and real-life business environment simulation.

#### **2.4. Use of the business games (The "Why and How")**

Business simulation games are used in several educational areas; however, their purpose is to provide effective training. Schurr and Thole et al [29, 30] state that usage of business simulation games is mainly focused on acquiring skills as they permit students to experience and test themselves in situations before they encounter them in the real life; in addition, they permit students to experiment with business hypotheses and test them. Faria et al [15] state in their study based on review of the 304 business simulation educations and learning articles that the capabilities/properties of the business simulation games are related to provision of:

**•** Getting experience,

have not only theoretical understanding of business but also communication and thinking skills [21], in addition to the ability to apply the multi-disciplinary knowledge acquired during their study. The current popularity of business simulation games in education follows from these findings. The interest in using simulation games is also driven by the effectiveness in presenting knowledge and theory. Instructional simulation researchers believe that a gamebased method is effective because of the full-mind involvement in the learning process [22]. The activities in simulation games used in the area of business teaching usually involve observation and reflection, the creation of concepts, the integration of observations into theories and the application of theories into decisions and problem-solving. Students learn through the sequential process of cause and effect, and learning by doing. The underlying sequential processes are intended to motivate the students to explore, to experiment and to

230 E-Learning - Instructional Design, Organizational Strategy and Management

According to the variety of literature in this area, several mixed response about the definition

Wikipedia (2014) [24] gives the following description of business simulations games: *They are games that generally focus on the management of economic processes, usually presented in the form of a business process. They allow students to practice business by use of relevant economic terminology and concepts. In most cases, the term business (simulation) game and management (simulation) game can be used interchangeably and there is no well-established difference between these two terms.* Wikipedia also mentions the approach of Greenlaw et al. (1962) [25] in game definition as a sequential decision-making exercise structured around a model of a business operation, in which participants assume their role of managing the simulated operation offered in the game. Keys and Wolfe (1993) [26] have defined a management game as a simplified simulated experimental environment that contains enough illusion of reality enabling real-world-like

Other authors define business simulation games as games that are designed for a primary purpose other than pure entertainment [27]. Serious games are considered by Squire [28] as an important response from the education technologist to the "digital natives", which is a generation of students who are raised on digital gadgets and interactive games. For them, the expectation to have interactive experiences in the education media seems very natural.

There are also other views that contribute to the conclusion that there is no pure agreement regarding the definition what exactly can be defined as business simulation games. However, in this chapter for the purposes of the study carried out the following definition is used: Business simulation games are considered as a type of serious games that focus on simulating management or business processes, using the economic terminology and real-life business

Business simulation games are used in several educational areas; however, their purpose is to provide effective training. Schurr and Thole et al [29, 30] state that usage of business simulation

of the business simulation games and its terminology is possible to be found.

learn independently [23].

**2.3. Terminology used**

environment simulation.

responses by those participating in the exercise.

**2.4. Use of the business games (The "Why and How")**


Each of these properties can be found in more than 20% of the business education and learning articles published in Simulation & Gaming Journal [15].

However, other authors, e.g. Whicker et al. [31], argue that business simulation games are used merely to enhance students' decision-making skills, especially under conditions defined by limited time and information. They vary in their focus from how to undertake a corporate takeover and how to expand a company's share of the market. Typically, the player feeds information into a computer program and receives back a series of optional or additional data that are conditional upon the player's initial choices.

Business simulation games can be also potentially used to manage skills mediation. Riedel [32] pointed out two types of skills that can be mediated or promoted by usage of games for business and industry: soft skills (team building, communication, inter-personal skills, negotiation skills, creativity, collaboration skills, learning skills) and hard skills (product/ service knowledge, sales, discipline-based training, customer service, project management, decision-making skills, innovation, risk management, health and safety). Here it should be mentioned that: "the increased usage of the business simulation games [15] has been influ‐ enced by the usage of the emerging technology of Internet and the computer technology power".

The Internet as a vehicle combined with inexpensive hosting and memory storage services has triggered the proliferation of the distributed computing to happen as the national and even international reach for business simulation game providers became very easy. This perspective of business simulation games development enables the grouping of as: web-based and desktop-based group of business simulation games. The business simulation games also may come in different shapes and sizes. Some business simulation games are small and require no download from the Internet and can be played on-line. These types of games are run by modern browsers which have latest java script enabled or fresh updated flash player. Some of them can be played on user's computer once they have been loaded. In this group, it could be found that good examples of small business simulation games do not require a download process and are often described as web-based games. Then there are other business simulation games that require to be downloaded in order to play them. These come in two types: the stand-alone games that users are playing by themselves once they have downloaded the game and installed on their computer (often described as desktop-based), and the multi-player business simula‐ tions that players play online with others once they have downloaded the game. These business simulation games are the most intricate, well designed and engaging. To manage and to play this kind of business simulation games, the following must be done. The game has to be downloaded (with the purchased license, if the game is commercial type) to the user's computer and afterwards an installation must be done. Once the user has the game installed on his/her computer, the playing is enabled. While user's computer is connected to the game's serves online, the multi-player environment is created by other users and amazingly, there can be over 100,000 users or more playing one of these popular business simulation games at a given time, each of whom is running the game they downloaded on their computer with a connection to the central game servers [33].

In some cases when players want to play a massive multi-player business simulation game that requires to be downloaded and installed, they are usually asked to set up a profile at the game's website first, before they download the game. When the game connects to the game's site for the first time after it was installed, the software recognises the user's computer and the game is ready to be played. However, not all business simulation games are available for download; they can also be available only in a form of CD-ROME or DVD format accompanied with an installation guide and game tutorial.

The proliferation of accessible business simulation games has enabled the educators to be capable to set up and conduct business simulation exercises easily and on almost on no cost. Student access to the Internet is pervasive, which makes the administration of the business simulation games to be easy. In addition to the technical advantages offered by the Internet-based simulation games, students are in the same time accustomed to commu‐ nicate and to play on the Internet. They interact within the social networks such as Facebook, LinkedIn. They play MMOG (Massive multi-player real-time online games). Among them, the well-known World of Warcraft (www.worldofwarcraft.com) is very popular. Faira has found that the students expect and prefer computerised simulations games to be administered in this fashion [15].
