Problem solving through interactive video simulation

1. Problem solving through interactive video simulation Harm-Jan Steenhuis College of Business and Public Administration Eastern Washington University

2. Contents • Context • Case background • Learning objectives • Sample • Learning outcomes • Findings • Student perspective • Instructor perspective • Conclusion

3. Context (1) • Many business courses use case studies, i.e. descriptions of business situations. • These cases are for analysis purposes, i.e. applying models etc. to ‘solve’ the case. • The information in these cases is by necessity limited and the variety of information is limited as well (typically 20-30 pages). • Typically, one case is handled in one class session of 2-4 hours.

4. Context (2) • Innobus deviates from this type of case. • It utilizes modern technology that allows much more information. • 7 video interviews (owner, CEO, VP Finance, VP Marketing, VP Engineering, Plant manager, Planning manager) • 2 video plant tours • 30+ documents including: product information, market information, newspaper articles, government studies, planning documentation, financial documentation. • Focus is on only one case for the entire quarter. • With analysis on many different aspects of the business.  The focus is on in-depth understanding of the problem, the methods to analyze the problem, the different aspects etc.

5. Case background (1) • The situation: • The Innobus company (Canadian bus manufacturer) is in serious trouble • It expects major losses during the current year. • The bank is asking for immediate payment of all outstanding debts. • Market is declining and competition is fierce • Briefly; bankruptcy may soon be faced • Students are ‘hired’ as consultants to save the company • They can access the information in any order they want to. (this can affect their understanding) • More real-life situation: • Large amount of information • Conflicting information • Unreliable information • Lacking information

6. Learning objectives • Learning to analyse a company • Learning to acquire relevant information; learning to cope with insufficient and contradictory information • Developing integral managerial assessment abilities • Solving integral management problems • Making decisions in uncertain circumstances, based on uncertain information and under time pressure • Bridging the gap between theory and practice

7. Sample material • Interview fragment • Susan Prescott (1:50-2:45) • Document: • Newspaper article (doc 7) • Delcan report (doc 8) • Sample assignment

8. Part 2. External and internal analysis (assignments 3-11) • In order to gain more insight in the background of the problems of InnoBus you are asked to make an external and internal analysis of the company. The focus of this analysis is on the political, economical and social context, on the competition and competitors, on the stakeholders and customers, on the product and the market, on the resources and the value chain of the company. • 3. Political, economical and social context • How can you characterize the political, economical and social context of bus manufacturing for public transport in Canada and the USA. • 4. Competition • What are the forces which drive the competition in bus building and give a description of the main players in that competition. • 5. Competitors • Describe the competitors InnoBus in terms of market share, strengths and weaknesses.

9. 7. Customers • How can you typify the customers of InnoBus. • 8. Market • What is the market like. What kind of market segmentations can be made. Identify the order winning and qualifying criteria in the market. State the importance of the diverse product characteristics such as price, functionality, durability, appeal maintainability, service, delivery time and reliability, customisation, innovativeness • 9. Products • Give basic information about every product group including turnover, profitability, market share, market growth, economic trends and technological developments

10. Learning outcomes (1) • First presentation (internal/external analysis and assessment competitive situation) • Groups didn’t use existing tools, i.e. used common sense. • Groups moved ahead to solutions instead of focusing on facts • First interim report (detailed problem description and analysis) • Much trouble; students ‘just came up’ with issues rather than applying analysis techniques from the MBA program. • Second presentation (short term recovery plan) • Much improvement. Students became more critical of their approach. • Still missing; thinking through the consequences • Second interim report (long term orientation) • Fall back; problems with integrating, defending choices applying techniques etc. • Final report and defense • Much improvement

11. Learning outcomes (2) • Issues: each improved over the quarter • “Analysis”: Difficulties of breaking-up in parts and motivating this break-up. • “Information”: Typically handled well. • “Integral assessment”: Typically handled reasonably well (more towards the end). • “Problem solving”: Difficulties in causal analysis and using theories to get to solutions. • “Decision making”: Difficulties with defending choices. • “Theory vs practice”: Difficulties of knowing versus understanding/applying

12. Results – student perspective (1) • The Innobus class has facilitated a different learning process than all the other classes in the MBA program. This one has challenged us to apply our knowledge and not just restate it. • Overall, the classes in the MBA program are about taking a formula or theory and learning what it means. Typically, there was a quiz or assignment over the material. However, in this Innobus course our group was responsible for taking the theory, explaining it, defending why we chose it, and ultimately applying it. This was a new experience. • In this Innobus course, it wasn’t enough to explain the use of a model by saying that it was presented in our MBA courses. We had to incorporate outside sources to support our decisions. We searched for articles and books that supported the use of particular models. The hands-on approach to applying these techniques has not been an easy path this quarter. We would not say that the models or formulas have changed, they have just been used differently.

13. Results – student perspective (2) • Course evaluation (5-point scale) • Difficulty M: 5.0 A: 4.67 • Course overall M: 5.0 A: 4.83 • Intellectual challenge M: 5.0 A: 5.0 • Compared to other EWU business courses you’ve had, how much have you learned in this course? M: 5.0 A: 5.0 • Time spent on this course including class time M: 9-12 h

14. Results – instructor perspective • Main issue: students had severe problems with applying the theories they learned in other courses. • Early in the course, students typically just went ahead, i.e. didn’t delve into theory or comparing/evaluating theories. • Students had learned theories but had severe difficulties applying them. • Students had a lot of difficulties with defending their choices.

15. Conclusions • The Innobus course differs from many existing courses. • The use of technology allows a more practically oriented situation with a lot of information. • The course is oriented on application, not knowledge/memorization. • Due to this orientation, students learn the practical value of their theories.

16. PROBLEM Is this the real problem? Or is there another (underlying) problem? THEORY What do you know from the literature about this type of problem?  Provides insight into analysis issues & analysis steps ANALYSIS Undisputable Are you using the right ‘tools/techniques? FACTS Unknown ‘facts’ but required to perform analyses ASSUMPTIONS Not integrated “thoughts” on issues of analyses How do you evaluate solutions? PARTIAL SOLUTIONS These are feedback loops. They allow you to determine how different assumptions and/or different criteria change your outcome. Note therefore that your outcome is flexible! The key is a correct ANALYSIS. CRITERIA SOLUTION

17. Evaluation (appreciation) Synthesis (create) Analysis(logical order, components) Application (independent problem solving) Comprehension (understanding) Knowledge (information/recall)