Jump to first page International Management Game Center For Interactive Simulations Carnegie Mellon University Bringing The Real World Into Business Education

Jump to first page Center For Interactive Simulations Carnegie Mellon University Who are we? n Professor u David Lamont n Administrator u Jean Wiehagan n Systems Administrator u Steve Vargo

Jump to first page Center For Interactive Simulations Carnegie Mellon University How do you find us? n GSIA 222 u Second floor / old building n PRIMARY CONTACT - n Dave Lamont - u Jean Wiehagen - u Steve Vargo -

Jump to first page Center For Interactive Simulations Carnegie Mellon University Outline n Management Game u Scope u Objectives u Structure n Team Formation n Early Schedule

Jump to first page Center For Interactive Simulations Carnegie Mellon University Scope n Capstone Course n Course in strategic management using a computer simulation n Focus on interactions with real- world participants n Started first computer simulation for business education

Jump to first page Center For Interactive Simulations Carnegie Mellon University Scope n 500 Master Students (probably 100 teams) – CMU – Full-time, 255, (50 teams) – CMU – Flex-time, 50, (10 teams) – CMU – Flex-Mode, 25, (5 teams) –3 Connecticut, 2 South Carolina – Other Universities –3 teams in Japan,3 in China –5-10 teams in Chile –1-2 teams in Argentina –12 teams in Ukraine –5 teams in Russia

Jump to first page Center For Interactive Simulations Carnegie Mellon University Scope n These 100 teams will be divided into 20 INDEPENDENT worlds of 5 teams each. n These 100 worlds will be organized into 4 independent stock markets n The CMU teams will be distributed so each CMU team will have 1 or 2 competitors outside of the US

Jump to first page Center For Interactive Simulations Carnegie Mellon University Philosophy n Trend in 70s and 80s: increase complexity of the simulation logic to mirror real markets Complex, slow, rule based learning n Late 90s and 00s: Emphasis on u Simple simulation abstracted away from real market complexity u International u Competitive dynamics u Connections between simulation and people

Jump to first page Center For Interactive Simulations Carnegie Mellon University Why The Shift In Philosophy? n Reality is too complex and slow to learn from n People learn best from other people – not from software n No simulation is as adaptive as a human based experience (yet?) n Learning based on a human experiential environment will be remembered and more relevant

Jump to first page Center For Interactive Simulations Carnegie Mellon University Educational Objectives n Learn how to compete in a dynamic, international environment n Learn how to develop and present coherent strategic plans n Learn how to cooperate within a team under uncertainty and time pressure n Learn how to defend your ideas with analysis and argument n Learn key corporate governance concepts

Jump to first page Center For Interactive Simulations Carnegie Mellon University This Is A Strategy Class n Competitive issues u Main source of uncertainty = competitors and customers – NO stochastic processes in the simulation u The emphasis is heavily placed on strategy implementation and on adaptive competitive dynamics u Analysis is valuable but not sufficient to drive success

Jump to first page Center For Interactive Simulations Carnegie Mellon University Strategy – Organizational Process view n Strategic planning u Comprehend your competitive environment and develop tools to monitor u Build coherent strategic plans and then make them happen. Execution is the hard part. – Three times u Get approval from business executives – Three board meetings u Adjust to competitive environment – Adapt and modify strategy

Jump to first page Center For Interactive Simulations Carnegie Mellon University Organizational Dimensions n Team work under uncertainty n Disintegrate ->add value ->reintegrate->communicate n Too complex for individuals to be successful u Need for real coordination u Work under time pressure u Time: MOST VALUABLE RESOURCE u Be responsive to external pressures (board members, competitors, etc.)

Jump to first page Center For Interactive Simulations Carnegie Mellon University Main Source of Learning n Interactions with Real World u Board of directors – Strategic plans, compensation u Labor Negotiators u Direct competitors (students) u Other worlds

Jump to first page Center For Interactive Simulations Carnegie Mellon University The computing environment n The web page – IE5.0 or newer u – Input interface – stock market/surveys/utilities/lots of information and feedback on performance n The shared file server u softrade-10.gsia.cmu.edu – mailbox – Simulations –History –Practice – Team_shared – Website_XXXX

Jump to first page Center For Interactive Simulations Carnegie Mellon University Team Formation n Full-time and Flex-time teams are segregated but do compete n We elect presidents n We collect vita information from all of you. n The presidents draft teams

Jump to first page Center For Interactive Simulations Carnegie Mellon University Team Formation n Presidential election u You should vote for people who you think would make effective leaders You can re-edit your ballot many times up to the deadline u You can lobby for votes u You can vote for yourself u You can choose to lose

Jump to first page Center For Interactive Simulations Carnegie Mellon University Team Formation n Vita Information u Be complete and be honest with yourself and others u You can edit your data up to the deadline

Jump to first page Center For Interactive Simulations Carnegie Mellon University Team Formation n Personnel Exemptions – You earn them by voting – You can not exempt people for whom you voted – independent of whether the win or not – Primary VS secondary conflicts

Jump to first page Center For Interactive Simulations Carnegie Mellon University Team Formation n Presidents role – Coordinate the teams efforts – Liaison with board of directors – Integration mechanism and in some cases, dispute resolution – Negotiate (not decide) roles within the team – Organize the team and develop direction for the team – Build consensus

Jump to first page Center For Interactive Simulations Carnegie Mellon University Team Formation n NON-Presidents role – Take ownership of some aspect of the business – Coordinate activities with other team members – Integrate your activities with team – Support your president

Jump to first page Center For Interactive Simulations Carnegie Mellon University Team Formation n After the draft – Absolutely the most important part of the team formation process – Negotiate roles and responsibilities – Organize how you will communicate and cooperate – Integrate talents into team capabilities Groups of individuals are doomed to failure

Jump to first page Center For Interactive Simulations Carnegie Mellon University Schedule n February – Form the teams u Today you should go to the web page Retrieve your password – change it if you want to Find the team formation link Read the rules (flex and full) View the presidential ballot to see if you appear and your name is listed as you would like it to appear. If no, send mail to n Feb 3 to 7 Cast votes for President Complete the Vita information

Jump to first page Center For Interactive Simulations Carnegie Mellon University Schedule n February 7 – Presidents announced n February 9 – Presidents workshop n February 14 – Draft occurs u Flex-time 6:00 PM u Full-time Noon u Proxies n February 19, (maybe a bit earlier) – Distribute historical data

Jump to first page Center For Interactive Simulations Carnegie Mellon University Schedule n Notice that teams are formed 3+ weeks before class begins – Why? u Past students have asked for this – You need time to create a cohesive unit – You need time to define structure – You need time to build information systems – You need time to learn from second year students. You are paired with a team from last year to help you get started.

Jump to first page Center For Interactive Simulations Carnegie Mellon University Overview of March n Analyze competitive environment n Develop a strategy n Practice simulation cycle n Begin the Real game u Stock market will open u We will run 2 cycles before Spring Break

Jump to first page Center For Interactive Simulations Carnegie Mellon University Overview of April n Finish the first year of the game n Board lunch 11 April – noon (presidents or proxy) n Practice board meeting in the week of 7 April n First board meeting in the week of 14 April or as fits your boards schedule n Labor negotiations 24,25 with second session on May 1,2 if needed

Jump to first page Center For Interactive Simulations Carnegie Mellon University Overview of May/August n Finish up Labor negotiations n Marketing plans – 9 May n Operations plans – 9 May n Peer Evaluations and communications surveys n You should be back in Pittsburgh after the summer on 23 August

Jump to first page Center For Interactive Simulations Carnegie Mellon University What should you do now? n Read the manual n Review the syllabus and schedule n Go to the web page Get your password Use password to check that your name appears correctly in the ballot Complete vita and vote by Friday noon Look at the public documents if you wish n Talk to second years u Especially presidents n Talk to your classmates u Maybe lobby for votes?