Business Networking Game (BNG)

Business Networking Game (BNG)

The Business Networking Game is developed as part of the continuing research about modularity and the effect of reduced transaction costs enabled by IT on the organisation of a business network. The Business Networking Game is a management game that simulates modular business networks. A modular business network is an organisational form that allows for the production of customised products or services without a disproportional cost increase. Through the use of modern IT firms are able to ‘quick-connect’ to each other and thereby are able to organise the business network that matches the customer demand. The current version of the game has an insurance industry game scenario. 

The Business Networking Game has two objectives: 

  1. It functions as an experimental research tool that is used for PhD research. As a research tool, it is used to examine the relationship between properties of a network structure and organisational performance.
  2. It is a management game that is used for third and fourth year students of the Business Administration program and managers to teach them about modular business networks and functions as a tool for strategy formulation and to evaluate the role and position of a firm in a business network.

Participants are challenged to think at the network level in which their firm operates and have to formulate a strategy and execute this strategy to achieve a competitive advantage. The players have to make the trade-off between internal production and outsourcing. In brief, are you going to invest in capabilities so you can produce certain products yourself, or are you going to invest in new relationships so you are able to outsource the capabilities you do not own? The winner of the game is the company with the highest gross margin. 

More information: Otto Koppius.