* The first section is not AI generated and written by a human. AI used to check the grammar.

** In the second section, as part of an initial investigation, the following question was posed to an AI model: ‘Are there any post-secondary institutions that incorporate simulated or practice companies as part of training prior to entering the workforce?’ The information provided has not been human-verified but is included to offer context and perspective for the blog.

SecTION 1: enterprise simulation frameworkS *

Why ask this question? My thinking is that, when viewed from a Knowledge Management perspective and at a high level in relation to people, process, and systems, we have entered an era defined by a pre-AI (before November 2022) and post-AI (after November 2022) starting point. For me, AI relates to the process and systems components of Knowledge Management. AI can be seen as a subcategory of systems and is categorized as an information management system, with the added potential for both knowledge creation and knowledge destruction. This is, of course, highly debatable. Let us argue that AI will eventually fulfil all aspects of process and system. As an example, cell phones changed the world—we are reliant on the technology; it is part of human life, trusted, and used daily. If we argue that AI will follow a similar path, what remains? People—but with the caveat that people will be using AI in much the same way. Is knowledge still human knowledge, or human + AI knowledge? Does decision-making still sit with people, or with AI-supported processes? Where do memory and meaning fit in?

If we assume that AI evolves to the point where processes and systems are entirely embedded, what role is left for humans? My argument is that we should start looking at ‘Enterprise Simulation Frameworks.’ I suppose internships are currently being used to help bridge this gap, and visionary countries and companies mentioned in Section 2 are implementing ‘Simulated Company Training'. If the search results are accurate, this appears to be a niche market—but I believe this is likely to change, even if we have not yet reached the stage of fully embedded AI.

Another question is: who is going to start doing this? My list of possibilities is long. Personally, I think institutions employing people who are retired and have a wealth of knowledge should serve as the main knowledge source. The benefits are numerous—not only does it transfer valuable knowledge, but it also provides retired knowledge workers(They aren’t vulnerable from an organizational standpoint. Relates back to Trust and Knowledge Sharing) with extra income. The world of possibilities is endless. Way back in the 1990s, I attended a Business Analysis course at a university. One of the modules involved participants taking on business roles while embodying different personality types. For example, a participant might act as a knowledge hoarder who is reluctant to share information, an angry employee who is frequently frustrated, a passive employee who avoids taking initiative, or an overachiever who takes on too much and tends to micromanage. Other personalities could include a complacent employee resistant to change, a gossip who spreads rumors and distracts the team, a perfectionist who struggles to meet deadlines due to excessive attention to detail, an innovator who constantly pushes new ideas sometimes at the expense of rules, or a skeptic who questions every decision, slowing down processes. All of the above examples ultimately point back to trust and how it is managed. Experiencing these diverse personalities helps participants develop empathy, communication skills, and strategies for managing complex workplace dynamics.

Conclusion

To advance enterprise simulation frameworks, possible approaches could include establishing new educational institutions, creating a dedicated business unit within an organization, or partnering with companies under a central governance process.

If the strategy and implementation are not grounded in Knowledge Management principles (not Information Management principles), they are likely to fail, as these principles are the key dependency. The question is: who will take the lead?

Section 2: Post-Secondary Institutions Using Simulated Companies for Training **

The use of simulated companies—often referred to as "Practice Enterprises," "Virtual Enterprises," or "Practice Firms"—is a well-established educational model designed to bridge the gap between theoretical learning and real-world application. This model allows students to operate a simulated business, conducting transactions with other simulated businesses globally, without the financial risks associated with real-world entrepreneurship. This training method is utilized by various post-secondary institutions, including community colleges, vocational schools, and universities worldwide.

The Practice Enterprise Model

A Practice Enterprise (PE) is a virtual company that runs like a real business, mirroring its structure, procedures, and practices. Students take on roles in different departments such as Human Resources, Marketing, Sales, Finance, and Administration. They engage in market research, develop business plans, and trade products or services with other PEs within a closed, simulated economic network.

"The network connects over 7,000 Practice Enterprises across more than 40 countries, providing a realistic banking system, customs, and tax authorities to simulate a complete macroeconomic environment." [1, 2]

Global Coordination: PEN Worldwide

The most prominent organization overseeing this model globally is PEN Worldwide (Practice Enterprise Network). PEN Worldwide supports education and training organizations in delivering work-based training in business and entrepreneurship skills.

Implementation in Post-Secondary Education

While the simulated company model is widely used in high schools, it is also a critical component of many post-secondary educational programs, particularly in vocational training and applied business degrees.

United States: Virtual Enterprises International (VEI)

In the United States, the model is primarily managed by Virtual Enterprises International (VEI). Bronx Community College partnered with VEI to launch a college-level program, allowing students to engage in advanced business simulations [3]. Institutions like Drexel University's LeBow College of Business utilize competitions and simulations to provide undergraduate students with practical experience [4].

Europe: The "Übungsfirma" Tradition

The Practice Enterprise model has deep roots in Europe, particularly in German-speaking countries, where it is known as an Übungsfirma (Practice Firm). Austria: The model is a mandatory component of the curriculum in commercial academies (Handelsakademien or HAK), supported by the ACT Servicestelle [5]. Germany: Vocational schools (Berufsschulen) and universities of applied sciences form an integral part of the dual education system using this approach [6].

Canada: Practice Firms in Quebec

In Canada, the province of Quebec has a strong tradition of using simulated companies, known as entreprises d'entraînement, particularly within its CEGEP system [7].

United Kingdom and Australia: Business Simulation Suites

United Kingdom: Institutions like Coventry University feature a "Business Simulation Suite" [8], and Cranfield University offers executive programs utilizing simulations to master real-world dynamics [9]. Australia: The Technical and Further Education (TAFE) system relies on simulated workplaces, such as those at South Metropolitan TAFE [10].

Benefits of Simulated Company Training

Benefit	Description
Risk-Free Environment	Safe decision-making without actual financial loss.
Skill Development	Develops hard skills (accounting) and soft skills (leadership).
Global Perspective	Cross-cultural awareness via international simulated trade.
Employability	Ensures graduates are "work-ready" with practical experience.

        Conclusion: Post-secondary institutions around the world recognize the value of simulated companies. By providing an immersive and realistic environment, these programs effectively prepare students for the modern workforce.
    