manager at back bay battery company who must balance · pdf filemanager at back bay battery...
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Supply Chain: Root Beer GameThis version of the classic Beer Game is enhanced by powerful administrative features:
instructors can run any number of configurations simultaneously in the same class; results are
tracked in real time on the administrator screens and are immediately available in debrief-
ready graphs at the end of the game.
#3101
Pricing: Universal Rental CarThis simulation teaches pricing principles in a dynamic setting, as students play the role of
a regional marketing manager responsible for pricing a fleet of rental cars across cities in
Florida. Ideal for undergraduate and MBA courses in Marketing, Strategy, Microeconomics,
and Operations Management.
#2093
Finance: M&A in Wine CountryStudents play the role of CEO at one of three wine producers:
Starshine, Bel Vino, or International Beverage. Each player
evaluates merger and/or acquisition opportunities among the
three companies and then determines reservation prices, values
targets, and negotiates deal terms before deciding to accept
or reject final offers. This simulation is ideal as a capstone
experience in a first-year MBA Finance course and is also
appropriate for courses in Mergers and Acquisitions, Valuation,
Negotiation, General Management, and Strategy.
#3289
Finance: Blackstone/CelaneseThis simulation re-creates the landmark acquisition of Celanese
AG by the Blackstone Group in 2003. Students take on the role
of either Celanese or Blackstone and conduct due diligence,
establish deal terms, respond to bids and counterbids, and
consider the interests of other stakeholders. This internationally
based scenario uses euros as currency and is ideal for second-
year MBA courses in Private Equity, Valuation, Due Diligence,
Deal Structuring, and Mergers and Acquisitions.
#3712
Leadership and Teams: EverestThe dramatic setting of a Mount Everest summit expedition
teaches group dynamics and leadership. Teammates must share
information to maximize group achievement. This simulation
is ideal for Organizational Behavior, Group Dynamics, and
Leadership courses.
#2650
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Video assets �
Debrief-ready results in graphical form �
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Other Online Simulationsfrom Harvard Business Publishing
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Strategic Innovation: Back Bay BatteryIn this online simulation, students play the role of a business unit manager at Back Bay Battery Company who must balance a portfolio of R&D investment strategies (over 8 simulated years) across products in the portable power market.
The process of sampling and adopting any of our online simulations is simple:
from Harvard Business Publishing
Other Online Simulations
by Clayton M. Christensen and Willy Shih
BAck BAY BAtterY
Strategic Innovation SimulationfOr cOurses iN:
cOmPetitive strAtegY
OPerAtiONs mANAgemeNt
mANAgiNg techNOLOgY
iNNOvAtiON
Simulations re-create real-world settings to reinforce student
learning. Flexible administrative options let professors set
learning experiences for a range of course levels, from
undergraduate to specialized graduate courses. Each simulation
includes a detailed Facilitation Guide, a “how to play” video
overview, and recommendations for class play and debrief.
The simulation can be taught alone or used as a complement to
the Clay Christensen case, “Hewlett-Packard: The Flight of the
Kittyhawk” (A) (#606088).
Strategic Innovation: Back Bay Battery is used in the
Harvard Business School course Building and Sustaining
a Successful Enterprise.
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Strategic Innovation Simulation Back Bay Battery
decideanalyzeprepare
Dashboard Overview - 2008Profitability
log out high scores archived runs © 2008 Harvard Business Publishing. All rights reserved. Developed in partnership with Forio Business Simulations.
dashboardoverview
desiredfeatures
featureperformance
total unitsales
incomestatement
salesvariance
potentialcustomers
marketnews
9.0%
Market Sales
Power Tools: 15.1 M
Two-Way Radios: 5.0 M
Power-Packs: 1.0 M
NiMH: $4.0 M
Ultracapacitor: $0.0 M
Power Tools: 28.1 M
Two-Way Radios: 17.4 M
Power Packs: 3.3 M
R&D Investment Installed Base
Product Sales Revenue
NiMH: $185.9 M
Ultracapacitor: $51.0 M
NiMH: $6.4 M
Ultracapacitor: $24.6 M
NiMH: 18.6 M
Ultracapacitor: 2.5 M
NiMH: 31%
Ultracapacitor: 11%
Unit Costs Sales Variance
2008
2009
2010
2011
2012
2013
2014
2015
2016
Strategic Innovation Simulation Back Bay Battery
user accountsscenario setupclass summary
Scenario Setup
log out © 2008 Harvard Business Publishing. All rights reserved.
dashboardoverview
Open simulation to students
Session Name (visible to students):
Session Description (visible to students):
Power Tools:
Two-Way Radios:
Power Packs:
3%
-1%
1%
Set Scenario Cancel
Limit students to no limit
Model Assumptions Market Growth
Power Tools:
Two-Way Radios:
Power Packs:
90.0
30.0
26.0
Initial Market Size Learning Curve Coefficient
Performance Requirements Auto-generated Sales Estimates (basic)
NiMH:
Ultracapacitor:
95%
95%
In this setting, the simulation will determine thesales estimate based on last year’s sales. Users will not be held accountable for variance from thisestimate.
Manual Sales Estimates (advanced)
In this setting, users will be required to enteryearly pro forma sales estimates on the Decidescreen. The sales estimate will generate the projected revenue, and 3% of that value will betheir available R&D spending.
If users have a significantly negative salesvariance in one year, or a consistently negativesales variance for three years in a row, they willbe fired.
Students prepare once (with how-to video, summary, and a foreground reading); and then each round of play requires students to analyze market information and make investment decisions over 8 simulated years.
The simulation illustrates the difficulty of pursuing innovation under constraining financial performance expectations and an organization’s impatience for growth.
Students must assess 3 market opportunities and make investment decisions under financial constraints.
Each simulated year, students are given market news updates and dynamically generated feedback based upon choices made in prior rounds.
The Scenario Setup tab offers flexible configuration options and user management tools.
The simulation fosters a sense of competition among players by allowing students to view other students’ cumulative profit scores and notes on strategy.
Each round, students make decisions about the timing and level of investment for existing and emerging technologies. Depending on the configuration, students also must use sales and market data to predict sales estimates for the subsequent years.
Students face the management challenge of balancing investments between the core business and a potentially disruptive new technology.
Professors can view a brief video covering administration tools.
A comprehensive Teaching Note covers key learning objectives to highlight in the post-play discussion:
n The nature and impact of disruptive technologies
n Management challenges of simultaneously investing in core business and innovation
n Optimizing the timing and level of investment in innovation
n The difficulty of innovation under constraining financial criteria and an organization’s impatience for growth
n Principles of the S-shaped growth curve associated with technology diffusion and substitution
The Class Summary tab offers real-time student performance data and ranks students based on cumulative profit.
Simple administration tools allow professors to configure the simulation and access student results for class discussion.
The simulation dashboard provides a snapshot of information and navigation options.
Strategic Innovation Simulation: Back Bay Battery Approximate seat time: 90 minutesProduct #2656
stuDeNt DAshBOArD ADmiNistrAtiON screeN
Authored by:
Clayton M. Christensen, Professor, Harvard Business School
Willy Shih, Senior Lecturer, Harvard Business School
Developed in partnership with Innosight LLC and
Forio Business Simulations