ABW Simulations - IT

IT Simulation

The ABW IT simulation is an extension to the manufacturing-based simulation and further challenges participants to make decisions on the implementation of performance enhancing Information Technology. This model is concerned with not only the revenues and the costs of production but also the best choice of IT solutions to make the company as successful as possible by further reducing costs to a level where the revenue from sales exceeds the cost of making, advertising and selling that number of products.

Participants progress through a two stage process in introducing them to the challenges of running a business. The challenge is to find a sound combination of IT solutions and the correct level of investment in each within a budget of $200,000 per quarter initially. Participants will not only be making prudent decisions for the base manufacturing business, but will also be attempting to leverage their basically sound decisions by applying technology appropriately. Stage 1 requires participants to takeover an established old technology, manufacturing business which they run for up to six periods to become proficient with skills necessary to run a business. Stage 2 gives the opportunity to introduce a variety of IT applications to make the business more efficient and competitive.

A variety of proven IT methods are available for selection by the student companies:

• Supplier integration
• Factory Robotics
• Data Warehousing
• Mobile Technology
• CRM System
• Accounting System
• IT Salaries
• Security System
• Programmable Machinery
• Internet Website
• Call Centre
• Planning Software
• Knowledge Management

The IT simulation has added flexibility allowing the games administrator to run up to 12 decision periods (previously limited to 8). Due to time constraints, most games administrators may still choose to run with no more than 8 decision periods. Games administrators can also choose how many of these decisions are manufacturing and how many include the IT option. As an example of a possible configuration with an 8 decision period game, the first three decisions might be manufacturing and the last five might be IT.

What is the company like?

The company manufactures sporting goods with a price range of $200 - $600 and sells its products through salespeople to sporting stores in the company’s home state, other states nationally and the export market (overseas). The company purchases raw materials which it processed to produce finished goods for sale.

What will IT do for this company?

The IT options available provide the company with the facility to process information swiftly and to deliver that information when and where it is needed. By testing a range of IT options students can reduce costs, increase sales and/or production, accelerate throughput, improve efficiency and give management access to superior information on which to base decisions.

How is the company managed?

Each company elects a Chief Executive Officer and then a Marketing, Operations and Corporate team.
The IT Executive/CIO (Chief Information Officer) is responsible for guiding the organisation in the use of information and communications technology, ensuring that there is a strategic IT plan, overseeing the selection of technologies and the timing of their implementation and managing the investment so that it’s within budget and will monitor the success of the implemented IT, act as a company spokesman for IT matters and will ultimately keep the rest of the company informed of the performance of the implemented IT solutions.