We have found that many people have heard about the use of simulation in computer games, but few know that it is one of the most powerful business analysis tools there is.

This is the first of a series of articles describing what simulation is all about; with the focus on business use. Over the next few months, we will cover: a bit of historical background, to set the scene; different types of simulation disciplines; how simulation can be put to use in a business context; and some case studies.

Hundreds (maybe thousands) of years ago, Generals saw the need to train soldiers for battle; so they started to practice skills like swordsmanship, archery and jousting.

Over the years, these Learning by Doing activities have evolved into complex simulations that often replicate reality with impressive accuracy.

Technology has now taken simulation into areas of Learning by Watching, where working models of real-life scenarios help analysts view and understand how things work, or might work in the future.

Today we look at how simulation started and evolved into a business tool.

What is Simulation?

The simulation industry covers some disparate disciplines that all coincidentally fake reality in some way.  The principles are fairly common across the disciplines but the activities and descriptions can vary significantly, so there’s no standard definition. However, it’s generally agreed that simulation is defined as the dynamic imitation of an activity or process.  This means that, as well as a reasonable replication of real life scenario, there needs to be an element of control and variability of the results.

There is some overlap, but there are three main areas of simulation: Live, Virtual & Constructive.

Live simulation involves real people role-playing with real kit, and has been around for thousands of years. Soldiers train for battle during peace time, so they need to spar and simulate battle scenarios in order to practice and learn. The level of detail (or Fidelity) can vary from shooting a target to full-scale army manoeuvres. Role-playing in business is the simulation of potential situations, such as practicing interviewing & sales techniques.

Virtual simulation is where real people operate in a synthetic environment; this tends to include the likes of flight simulators. A simulator is a device that may use any combination of the tricks (eg.  seating,  touch, sound, movement & visuals) to make you feel that you are experiencing an actual situation; arcade games are a good example of this. Early simulators were really basic but technology has taken simulators to such a level that Airline Pilots can train in an exact replica of, say, a Boeing 747, and notch-up official flying hours without leaving the ground. And surgeons can practice rare procedures without the risk of killing someone.

The controllable and replicable nature of simulation allowed performance to be compared, which may in turn result in some friendly competition amongst the participants.

This early (c.1910) flight simulator was used to test potential pilot’s balance and coordination before they were allowed into a real one. Modern-day simulators are a bit more advanced.

We saw a demo of this high-tech baby (from Laerdal). All sorts of procedures can be practiced on it; it’s that life-like that we got somewhat distressed when it started to choke and turn blue!

It doesn’t take much imagination to see how much influence that peace-time training had in the beginnings of sport, such as Jousting.

Live and Virtual simulations tend to classed as Immersive, where participants are immersed (take part) in the simulation. Simulations that involve an arm’s-length management of an activity are known as Constructive Simulations,

As with Immersive simulation, Defence was likely the first user of Constructive simulation, when battle tactics were developed into war games that could be played out on a table.

These days simulation technology and user expectations are greatly influenced by the computer game industry, where simulation is one of the biggest gaming genres. Indeed, Serious Games is a growing sector, where emergency services can “experience” dangerous situations and practice making difficult decisions, all in the safetry of the training environment.

Simulation Modelling & Analysis

Analytical flavours of simulation came out of Operations Research (aka Management Science), which is the discipline of using rigorous scientific research methodologies to tackle operational or business problems.

Early simulation modelling & analysis was mathematically based. A simulation in, say, a Manufacturing environment would involve linking multiple resources, queues, processes, etc. -  the simulation would identify where bottlenecks and idle times occurred. This was particularly powerful if inputs and process times were variable; the model would be run multiple times to identify min/max/average timings in key areas of the simulation – something that maths alone couldn’t achieve.

This multiple-run simulation is known as Monte Carlo Simulation; it was introduced as early as 1940’s and involved modelling a scenario, with random inputs, many many times to determine a confidence level that a particular result would be reached. e.g. 95% confident that a process would take between 10 and 12 minutes.

The level of 3D graphics available now has taken simulation modelling to new levels; but it’s important to remember that behind the slick graphics and animation, everything that moves, queues & breaks down is tracked and reported on.

Simulation has firmly established itself as the conduit between theory and experiment, testing ideas and generating new ones. And it shows no sign of giving up that position.

Other Chapters…

Part 2: What to simulate, and why. -  http://tmnsimulation.com.au/what-is-simulation-part-2/

Part 3: Will cover the simulation tools available to the analyst, and the jobs they do. (due in November)