A guide on how to win CapSim and understand all of its parts and win the simulation in MBA course

Capsim R&D Strategy – Perceptual map, Size, Performance and MTBF

So in the last post I have introduced the simulation and in this post I am going to help you understand the Research and Development (R&D) module better. In Capsim, R&D department develops new products, or sensors, and changes the specifications for existing sensors (sizes, performance and MTBF – I will explain these later). This is called reposition, or I just call it an upgrade because you want your products to be better, unless you make mistake and mess it up. I have seen some teams re-positioned their sensors in the wrong way and they got trouble in the next rounds as these sensors did not sell very well. Refer to your Industry Conditions Report for products repositioning (it is very important that you read Industry Conditions Report carefully before starting and Courier report after each round). In some next articles I will help you to deal with these reports.

Back to the R&D in Capsim, first thing you should look at are the position of your products in the Perceptual map. It should look like this and your product should stay inside the black circle. From Round 1 to Round 8, they should move toward the bottom right corner of the Perceptual map.

Perceptual map in R&D module in Capsim

Move onto the specifications of the products. Products in each segment will have their Sizes, Performance and a reliability rating called MTBF. Understanding these specifications is the key to win Capsim. MTBF is the Mean Time Before Failure, the average number of hours a product last before it breaks down. So you want your sensors to be smaller in Sizes and have better Performance over time whille keeping their MTBF higher than competitors. However, you should be careful not to make your sensors “too good” as they will be out of the Perceptual Circle and the costs of production would be too high, hurting your Profits margin.

For products reposition, check the Industry Condition Report for detail, the center of the Perceptual map circles should look like the table below. Note that this is just an example from my report and these numbers can change. Also, these are the Centers of Circles, not actual repositioning point you want your sensors to be. I will write more about R&D Strategy in Capsim in the next article.

Industry Condition Report R&D Capsim

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