Business War Games

A business War Game allows organizations to test their beliefs and assumptions about their business environment. (http://www.marketing-intelligence.co.uk/services/CI/War-Gaming.htm).

War Games are commonly used by the military to evaluate strategies, explore scenarios and reveal unexpected weaknesses. (May 31st 2007 From The Economist print edition). This can be used in corporate planning also. As in a war, the same applies to business too; the outcome depends on what the others do, as well as one’s own action. Most of the traditional planning tools do not take opponents response to a changing environment.

Objective of Business War Games:
Ø Better understanding of the changing environment
Ø Identifying emerging opportunities
Ø Identifying threats
Ø Making decisions by considering how other organizations would react to change.
Ø Testing corporate understanding about business and competitive environment.
The objective of a War Game should be to improve corporate planning processes, and use the lessons learned from the War Game in business strategy. (http://www.marketing-intelligence.co.uk/services/CI/War-Gaming.htm)


War games involve a number of teams representing different players in the industry. For example:
Ø Competitors
Ø Key consumers
Ø Regulatory bodies

However there is no single way to arrange a War Game - and each should take into account the particular circumstances involved. Some War Games may involve several different players, while others can be much simpler and only focus on one key competitor.

Benefits of War games:
Ø A full understanding of the current situation, opportunities, threats and issues that may arise in the short-medium terms;
Ø Plans for the future can be tested during a war game.
Ø Identification of vulnerabilities and weakness.
Ø Better response to threats and emerging opportunities.


War Games and Scenario Planning:

In some ways War Games resemble Scenario Planning. (http://corporateplanningforum.com/tools/)

Common Characteristics:
Ø Engage the participants.
Ø Excite imagination
Ø Power full critical decision tool.
Ø Tool for developing strategies and tactical situations.

Differences:
Ø Business War games results are more tangible and less creative.
Ø Business War games is equally appropriate for critical tactical as well as strategic decisions. (http://corporateplanningforum.com/tools/)
Ø Longer periods are also uncommon, in War games, as the uncertainty factors mean that War Gaming gives less direction. For such longer-term cases, scenario planning often provides a safer approach.

Through Business war gaming, organizations can develop a clear view of potential implications of a disaster, disruption or competitive challenge. They can build or adjust strategies that reach across the range of possibilities and guide future business decisions. War games provide opportunities to assemble functional experts (inside and/or outside the organization) familiar with corporate and industry trends and examine a future environment from a multi-disciplined approach. Functional expertise might include operators, lawyers, corporate intelligence or other disciplines. In a disciplined and interactive way, war game players are able to apply existing plans, policies and procedures to examine the competitive market and interact with that future market or environment.