Olympe and game simulation Co Daatselaar & Niels Tomson Agricultural Economics Research Institute LEI/ Agrocenter for strategic entrepreneurship

Contents Context for Olympe and game simulation Interactive Strategic Management (ISM) Place of game simulation Interface with Olympe Input data Measures and quantification Calculations Role and use of Olympe Coffee-break Try-out Discussion/conclusions: try-out, other points of interest

Interactive Strategic Management (ISM): Fewer or no general solutions, then: The entrepreneur as pivot Advisor in facilitating role Strategy is leading Sustainability integrated in whole strategy balance between People, Planet and Profit In interaction with environment Dialogue with stakeholders Interactive Strategic Management has been developed to support the farmers in their new role in an uncertain environment.

Interactive Strategic Management (2) Entrepreneur as pivot Initiative and responsibility with entrepreneur Focus on drive and competences of farmer Advisor facilitates (process-guidance) Improving indicators within strategic framework For farmers individual indicators are no goal itself Start with mission and strategy of entrepreneur From general strategy to improvement plans Know where you are: SWOT Develop general strategy with Game Simulation Make improvement plans fitting with general strategy

Game Simulation (1)

Game Simulation (2) Farmer’s own data Farmer runs program!! Chooses management measures Makes management measures concrete Looks at the results (technical, financial, environmental) Adapts management measures Compares packages Chooses best plan Farmer gets printed version of best plan

2006: A way to fit Olympe to ISM-context Use of principles of Game Simulation Farmer runs program! Facilitator gives an introduction (one hour) Interface to enter measures and their quantities Interface invokes Olympe to do calculations Farmer looks at results in Olympe ‘en cours’/’resultats’; explanation during introduction Scenario must be saved After closing ‘resultats’ direction goes back to Interface Farmer can change measures: new scenario

Interface Olympe 1 2 Internet data input

Interface Olympe 1 2 Internet data input

Game Simulation: Interface and Olympe (1) Input data

introduction 1 quantification 7 choose measures 6 edit company specific data (prices etc.) 4 choose sector + company 2 Olympe show company data 3 edit prices 5 detail screen/popup crops & manure 8 Interface Calc-sheet (XLS)

introduction 1 quantification 7 choose measures 6 edit company specific data (prices etc.) 4 choose sector + company 2 Olympe show company data 3 edit prices 5 detail screen/popup crops & manure 8 Interface Calc-sheet (XLS)

Game Simulation: Interface and Olympe (2)

introduction 1 quantification 7 choose measures 6 edit company specific data (prices etc.) 4 choose sector + company 2 Olympe show company data 3 edit prices 5 detail screen/popup crops & manure 8 Interface Calc-sheet (XLS)

Game Simulation: Interface and Olympe (3)

introduction 1 quantification 7 choose measures 6 edit company specific data (prices etc.) 4 choose sector + company 2 Olympe show company data 3 edit prices 5 detail screen/popup crops & manure 8 Interface Calc-sheet (XLS)

Game Simulation: Interface and Olympe (4)

introduction 1 quantification 7 choose measures 6 edit company specific data (prices etc.) 4 choose sector + company 2 Olympe show company data 3 edit prices 5 detail screen/popup crops & manure 8 Interface Calc-sheet (XLS)

Game Simulation: Interface and Olympe (5)

Game Simulation: Interface and Olympe (6) Calculations to convert input data, whether or not affected by measures, to data for Olympe Calculations in Excel Interface reads data from Excel-input-workbook Interface places input data together with measure values into Excel-calculation-workbook Excel-calculation-workbook contains output-sheet: Interface converts this sheet into csv-file for Olympe Interface starts Olympe Olympe reads from csv-file

Game Simulation: Interface and Olympe (7) More rounds Close Olympe Choose other measure(s) Change quantifications Start Olympe Compare within Olympe One round Different rounds in graphs Create own ‘comparison’-output-screens

Game Simulation: calculations (1) Farm-specific calculations Some revenues (dairy part) and some variable costs Use of Farm Adjusted Standards Example: veterinary costs per cow Data from about 250 dairy farms in Dutch FADN Regression: dependent variable = veterinary costs per cow independent variables: kg milk per cow, square (kg milk per cow), young stock (for replacement: in LSU) per cow, other cattle (in LSU) per cow Farm result

Game Simulation: calculations (2)

Game Simulation: calculations (3) Crops Crop already on farm Yield corrected for difference between farm result and standard, originating from research results Formulas for yield reaction on change in N and P-fertilizer New crop Revenues and variable costs taken from standards Correction for seeds, pesticides and contract work Sum of standards for crops already on farm, divided by sum of farm results for crops already on farm Yet no corrections for fixed costs

Game Simulation: presentation results (1)

Game Simulation: presentation results (2)

Game Simulation: Interface and Olympe (8) To be done: (simple) method for calculation of fixed costs Financing (loans) Income tax, maybe other taxes Transfer of calculations from Excel-calculation- workbook to Olympe as much as possible? Region/country-specific calculations Translation: now different oly-files, with same content, for every language

Try-out

Experiences Short discussion Experiences/problems/possible improvements Conclusions Are you going to use this tool? How would you use it? Recommendations

Further developments (1) Integration of tools Benchmarking (Face-It) and game simulation (Olympe) under one interface (ISM) Tools must become more independent of agricultural sector Change tools to internet tools

Further developments (2) Building up a network of institutes to exchange methods, knowledge and tools (AgroCenter Europe) In 2006 Global Dairy Farmers was founded. An international network of dairy farmers (Europe, USA, Brazil, Australia, New Zealand) Create a platform for knowledge exchange Develop projects to get high level knowledge input (e.g. World Wide Dairy Monitor and Outlook) Connect global knowledge with national networks

A challenging job to do © Wageningen UR

More information English: Dutch: Co Daatselaar: / +31 (0) Olympe, Stars, GSD (concerning content), ISM Niels Tomson: / +31 (0)320 Tools general (technical), ISM, Olympe interface Other tools we use: Strategic Management Report: Personal report that guides the entrepreneur through the ISM process. Strategic Management Tool: calculates competences, internal and external factors through strategies. Face-IT: Face-IT is a bench-mark tool. Farm results are compared with results of a group of farms. The farmer can use the comparison to trace strengths of his farm management or to establish were there is room for improvement. www3.lei.wur.nl/LEI_WebTools/ (on this moment only Dutch)