Wharton Learning Lab Launches Three New Simulations
Now Totaling 20, Offerings Broaden Wharton Commitment to Using Technology to Transform Teaching, Learning and Research

April 4, 2005 — The Wharton School of the University of Pennsylvania has introduced three new learning simulations that enable richer classroom exploration of concepts in international corporate finance, entrepreneurship and operations and information management. With these new offerings, the Wharton Learning Lab has developed and deployed 20 experience-based learning simulations, which are broadly used throughout the curriculum, and challenge students to apply principles they have learned across multiple disciplines, including finance, marketing, negotiations and forecasting.

Wharton’s Learning Lab was founded in 2001 through a $10 million gift from alumnus Alfred West Jr., and is committed to exploring empirically the impact technology can have on learning. Twenty-five faculty authors have worked with Wharton’s IT staff to develop these simulations, which have been used by more than 6000 students at Wharton and dozens of other educational institutions.

“Without Learning Lab simulations, many types of learning would be off-limits to students, since the concepts require real-time interaction if they are to be understood,” said Deirdre Woods, chief information officer and associate dean at the Wharton School. “These simulations enhance professor-student interaction in the classroom and push the envelope in terms of how professors can teach and what students can learn.”

Three New Offerings
HEDGE, used by students in Wharton’s International Corporate Finance classes, was developed under the faculty leadership of Professor Karen Lewis. HEDGE provides three different types of simulations that focus on different sources of cash flow currency risk. The simulations give students hands-on experience as international corporate financial managers facing foreign exchange risk from various sources. Within the simulation, students make decisions about how much currency to hedge and which instruments to use.

“Before HEDGE, it was very difficult for students to grasp many of these concepts, since a whiteboard does not allow them to get directly involved in a scenario and quickly see the causes and effects of their hedging decisions,” said Professor Karen Lewis. “The simulation incorporates cases I have developed to teach these concepts, but takes them to another level by enabling students to experience an actual outcome.”

Wharton’s Innovation Toolkit simulation is used by students in the school’s Innovation and Entrepreneurship courses and was developed under the faculty leadership of Professor Ian MacMillan. It provides a comprehensive set of online course modules that lead students through competitive product design, competitive business design, business design optimization and competitive market segmentation.

The simulation makes it possible for students to see how all the elements of the consumption chain relate to each other and provides a framework for students to think through each step of the product lifecycle. The simulation is based on MacMillan and Rita MacGrath’s business best-seller, The Entrepreneurial Mindset.

The third new simulation is for students in Operations and Information Management 101 and was developed under the faculty leadership of Professor Steven Kimbrough. It is comprised of a two-population genetic algorithm developed as an add-in to Microsoft Excel. Students using this tool learn evolutionary programming techniques for constrained optimization problems, such as those occurring within marketing, manufacturing or logistics.

“Students have indicated that computer-based tools are more effective than both case-based and lecture-based classes in enhancing attention and engagement, retaining material and promoting team collaboration,” said Woods. “We believe these new interactive offerings will help solidify Wharton’s position as the leader in creating and disseminating business knowledge through the use of technology.”

A survey of Wharton students conducted in October 2004 found that 87% believe computer based tools enhance learning in class. Of students surveyed last year, 77% were either very satisfied or satisfied with computer-based tools in classes.

The Wharton School of the University of Pennsylvania is recognized around the world for its academic strengths across every major discipline and at every level of business education. Founded in 1881 as the first collegiate business school in the nation, Wharton has approximately 4,600 undergraduate, MBA, Executive MBA, and doctoral students, more than 8,000 participants in its executive education programs annually, and an alumni network of more than 80,000 worldwide.