ERP Simulation Game in Education of Students - Coursework Example

The ERP Sim game was an excellent learning opportunity. The main aim of the game was to train to tackle problems in a simulated business environment. Important elements of business such as strategy, planning and integration of strategy and planning were taught by this game. The whole practice gave an invaluable insight into real time team environment. The game created a real time business environment which was an opportunity for all the participants involved to acquire experience. I learned the immense usefulness of ERP and their contribution of business success. Experience In the monotonous bookish environment unique methods of teaching are always preferred by students. One of the most admired and appreciated method of teaching is simulation. They provide students with an interesting method of apply their own skills and knowledge. Moreover they provide a very competitive environment where students can challenge themselves and others. Besides the initial excitement of being involved in a simulation game there were still some reservations. First of all the game seemed very complicated. However once the initial hurdles were crossed it became a very satisfying experience. The learning acquired from this simulation would definitely help a lot in the long run. Teamwork There we two different parts to the entire experience. The first one was a practice game. In the practice game we were group C. The graduate student of our team was Mr. Long. The second game was the competitive game. This time the team environment was much more charged. We had teams with five members. A graduate student was part of our competitive team. The group allocated to our team was group G. The experience of working in a team was unique. Instead of only focusing only on our own performance we had to keep in mind the efforts of our team mates. Therefore the focus was not only on doing good but doing everything as a team. One of the key learning’s from this experience of team work was effective delegation of responsibility. Working as an individual I have always tried to do everything myself and take charge. In a team however you have to understand weaknesses and strengths of all your team members, including yourself. Game Strategy The strategy of our team was to steadily increase market activity. This steady approach had a number of advantages. Many different challenges and hurdles were faced which were successfully tackled by the team. The performance in the practice game was not up to the mark. Although our revenue was substantial, low gross margins resulted in bad figures. Practice Game In the practice game the strategy was very simple. The approach was conservative. This is because it was a learning phase and we wanted to understand the system. The highlight of the practice game was the incremental improvement between the first and second quarter. The improvement clearly indicated a learning approach. The main strategy was to reduce marketing expenditure. This reduction in expenditure ensured that a greater percentage of the profit went towards sales. This saving approach however was not a good one. The expenditure from marketing was reduced but it resulted in a reduced price. Promotion allows manufacturers and distributors to charge a premium. As there was no promotional expenditure the price was automatically lower, which explains a smaller gross margin for this period. Competitive Game The lessons learned from the practice game were applied in the competitive simulation. The emphasis on marketing was therefore part of the strategy. The team realized that by spending on marketing it can charge a premium on its products. Therefore in order to ensure that our prices were above average, promotion was given top priority. There is always a balance when it comes to establishing prices according to the supply-demand gap. The demand for product increases because of promotions, however this demand is kept in check by increasing prices. Therefore inventory management was a very essential part of this strategy. The revenues were kept high by charging higher prices as compared to competitors; therefore high prices also reduced our quantity sold. This was the key to our success in this competition. When other companies ran out of inventory we still had inventory to supply the market. This was charged at higher prices and thus the top spot was achieved in the simulation game. Lessons Learned There were many different lessons which range from personal growth to technical increases in knowledge. The team work was an essential feature of this entire practice. The team environment is totally different from working alone. The considerations of working in a team were a big learning step. Following are some important learning highlights of this entire process: 1. The importance of keeping your actions and operations in line with your strategy was revealed. Again and again during the game we had to recheck everything to make sure that our progress was exactly according to our strategy. 2. Moreover some aspects of ‘Lean manufacturing’ such as Kaizen were also learned by the team. Continuously the team improved and revised their operations in order to bring them closer to success. Moreover in this iterative learning process strategy was continuously rethought in order to match it with market realities. 3. The costing and pricing of products was another learning benchmark. The prices of products were matched with the market and especially competitors. However it was ensured at all times that these prices never went below procurement cost, even if that meant losing market share. 4. The phenomenon of cannibalizations and marketing were better understood with this game. We learned that marketing should not eat away at sales of our existing products but should open up new avenues of revenue. 5. One of the most valuable lessons learned was the integration and management of different function. ERP not only increased product but also enhanced efficiency of employees. The increases in efficiently is achieved by reducing surplus work and scheduling tasks effectively. The game has taught made the importance of planning and epically of ERP. The ERP doesn’t only improve efficiency of businesses but make control much easier. A lot of time is saved which can then be used to improve and expand the business. This platform manages all information from a single position which ensures that there is no discrepancy in information. This also provides a central access for the management to the entire organization. Read More