Prior to using wargames in a business landscape, strategic plans were often contrived from a succession of brainstorming meetings to produce new business opportunities, set financial projections and develop a detailed plan. This often lead to lackluster results. Business wargames aim to bring forth a much better method to analyze and strategically think about potential future developments and competitor actions.
Enterprises utilize wargaming to help it with strategic, operational and tactical planning. It is a spin on military wargaming that is set in a business environment.
A wargame is a role-played simulation of an business situation and is generally one that involves a set of teams representing a market or customer, a set of competitors and a series of other uncontrollable factors.
Wargaming entails a series of rounds representing a set timeframe. Teams act at the same time with missing pieces of information regarding what the competition is currently doing, or what is happening among the uncontrollable factors. After a round is completed team discover the impact its decisions and actions have made.
Depending upon the situation a company is faced with, wargaming offers several goals. Wargaming helps to turn data and information about a market, competition and other factors into actionable intelligence that adds value to the planning process.