How Serious Gaming Narrows the Gap Between Risk and Reward

Exadel Serious Gaming Studio Business October 9, 2024 9 min read

What if you knew exactly how your company would respond to a global crisis, a market crash, or a critical product launch before they happen? That’s the power of Serious Gaming: it allows businesses to simulate these high-stakes scenarios safely.

But what exactly is Serious Gaming?

Serious gaming involves using game engines, a technology initially developed for video games, in non-entertainment applications such as business. These range from scenario planning and crisis management to marketing campaigns and disaster recovery simulations. By combining the interactive qualities of gaming with real-world business goals, serious gaming transforms how we make decisions, train our staff, and develop strategies.

Serious Gaming promises a world where you could repeatedly make wrong decisions, learn from them, and move forward—without your business paying the price.

Game Engines Have Been Around Longer Than You Think

Serious gaming may seem like a recent innovation, but its roots go back decades. Game engines emerged in the 1990s with id Tech 1, the engine behind the iconic Doom. This engine revolutionized game development by being modular and allowing developers to license and modify it for their purposes. Its modular feature paved the way for Unity and Unreal Engine, which are now widely used in business simulations.

By the early 2000s, companies like IBM began tapping the potential of 3D business simulations. One of their first iterations was Innov8, a tool that helped businesses learn about process management. Since then, game engines have become indispensable to many industries.

What Makes Serious Gaming Such a Big Deal?

One of the game engines’ great strengths is their ability to render real-time, immersive environments. They deliver a realistic visual experience and interactive mechanics that make these simulations feel like the real thing. Your people can see the consequences of their actions play out in real-time—albeit in a safe ‘parallel’ environment.

From a technical perspective, game engines offer several advantages for business simulations:

  • Rendering realistic graphics: They create lifelike business scenarios.
  • Simulating real-world physics: This ensures the virtual world behaves realistically.
  • Artificial Intelligence (AI): They add dynamic elements, such as virtual customers or competitors, that respond intelligently to user actions.

The Many Uses of Serious Gaming in Business

Serious Gaming offers engaging solutions to real-world challenges. Little wonder then, that it’s found a receptive audience across numerous industries. Here are some of its most valuable applications:

  • Marketing Campaigns

    Brands can test new products and engagement strategies virtually before going live. Many businesses already use a simulated market environment to observe customer behavior and fine-tune their approach.

  • Finance and Insurance

    Here, game engines are used for crisis simulations, such as market crashes, to test resilience and manage risk. Insurance companies simulating natural disasters to assess claim volumes and adjust policies accordingly is a good example.

  • Disaster Recovery and Emergency Response

    Simulations help industries like logistics and public safety prepare for inevitable emergencies. Consider logistics firms testing their supply chain resilience to ensure continuity during crises (such as COVID-19).

Serious Gaming offers similar benefits in healthcare, architecture, military and defense, and corporate development, where virtual simulations are used for everything from medical training to immersive employee development programs. Once you adopt the serious gaming mindset, you will realize that everything in your business is a game and that its applications are virtually limitless!

Data Sources and Technical Challenges

Serious gaming is effective because it relies on real-world data from databases, customer information, and market analytics to create lifelike scenarios. However, integrating game engines with legacy systems and enterprise software is complicated. This is especially true for finance and healthcare, where handling large datasets and ensuring real-time processing is crucial.

In finance, game engines aren’t naturally optimized for managing large-scale financial data or running real-time predictive models, which are vital for crisis simulations. Customizing engines to handle data analytics and stay on top of regulatory compliance takes significant development.

In healthcare, compliance with regulations like HIPAA adds even more complexity. Game engines must securely handle patient data, and the simulations must accurately replicate medical procedures. Generating such detailed and precise modeling requires costly and time-consuming customization.

There isn’t a single industry that’s immune to the challenge of integrating game engines with existing systems. Many companies rely on ERP or CRM platforms to manage their data, and connecting these systems to game engines requires custom development, often involving middleware or APIs.

Not Everyone is a Believer

Despite its growing potential, many businesses must learn to adopt Serious Gaming. You might even count yourself among them, and your reluctance would be understandable. There are several valid concerns to address, including:

  • Cost

    Developing game-engine-based simulations can be expensive, especially if your company lacks in-house expertise. With game engines requiring 3D modeling, physics programming, and longer development times, it’s natural to worry about the investment needed. However, you can manage this risk by starting with a Proof of Concept (PoC) to gauge the potential benefits before fully committing resources.

  • Perception

    If you see game engines purely as tools for entertainment, you’re not alone. Many business decision-makers share this skepticism. It helps to see real-world examples of Serious Gaming delivering measurable results, like solving complex business problems. Siemens and General Electric spearhead this movement, integrating this technology into multiple business units.

  • Integration with Legacy Systems

    Integrating game engines with your existing systems may seem daunting. So, why not start with simulations that don’t require full integration or focus on one area of your business? You can gradually step up integration for a more manageable and cost-effective process.

  • Specialized Tools vs. Game Engines

    You may already rely on highly effective, specialized tools like MATLAB or SPSS. However, game engines have a unique advantage—their immersive, interactive simulations are perfect for scenario-based learning. By combining these tools, you can leverage game engines for ease of usability and specialized tools for data analysis.

Serious Gaming is Going Places

The game engine market is primed for significant growth. From a market valuation of USD 2.42 billion in 2023, it is expected to register compound annual growth of over 12.3% between 2024 and 2032. This growth is mainly fueled by the rapid rise of VR and AR applications, which also witness increased adoption across healthcare, education, and corporate training.

As AI continues to be integrated into game engines, simulations will offer deeper insights and enhanced decision-making capabilities. This will transform how companies train employees, plan strategies, and prepare for an uncertain future.

What Does That Mean for You?

From our experience, nothing beats a Proof of Concept (PoC). We created a simulation for a major telco: a massive storm disrupts their network. The PoC visualized the wider impact of the storm, allowing the company to rehearse its recovery plan, see how well it worked, and identify areas for improvement.

But it’s not just about disaster recovery.

Behind the scenes, game engines aggregate vast amounts of data, make complex scenarios ‘playable,’ and develop dynamic solutions to real-world challenges.

The magic lies in defining the rules—the “game”—and establishing the win conditions for your specific business problem. Only by asking yourself, “How can I turn my problem into a game?” do you unlock the true potential of this technology to help your business level up.

Ready to simulate your unique business scenarios?

Our team can help you visualize and simulate your real-world conditions and turn business challenges into good game.

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    ABOUT THE AUTHOR

    Mark Bolz,

    Head of Serious Gaming

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