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Understanding Gamification:
 From Commercial to Social
          Bala Iyer
        February 2012
          @balaiyer

                              1
Trends
• Gamification, social layer and virtual currency
  are buzzing.




                                                    2
What is Gamification?
• Integrating game dynamics into a core activity or
  non-game environments in order to
  educate, change attitude or behavior and inspire
  action.
• "taking the best ideas from games and applying
  them to fields where they are not usually used”
  [Gabe Zichermann]
• Core activities -- business
  process, service, community of purpose, content
  management, campaign management or product
  use                                                 3
Purpose
• Drive motivation, participation or
  engagement.
• Education, change habits, attitudes and
  behaviors and inspire action

                                        30-day rule




                                                      4
What can we get out of it?
• The technique can encourage people to
  perform chores that they ordinarily
  consider boring, such as completing
  surveys, employee
  performance, training, remembering to take
  medicine, or shopping.
• Activities are made more game-like (i.e.
  fun, rewarding, desirable, etc.)
• We believe that it can also have loftier
  ambitions like catalyzing social change.
                                               5
More than a technology
• It is a capability
• Requires investments in:
  – People (designers, developers, change
    management)
  – Process (methodology, performance)
  – Technology (gaming platforms, analytics)
  – Governance (policies and review)



                                               6
Skills Video Games Develop




Source: Online Colleges       7
What is a game?
• An environment
• A set of clear rules to win rewards & achieve
  victory
• An objective for victory (a quest)
• A way to measure progress against ourselves and
  others (scoring system)
• Many things in our lives are an implicit game:
  – getting into a good college, landing a good job, finding
    a significant other, and credit scores.

        Source: Tim Chang, Mayfield fund                   8
Not New
• We’ve had this for a long time:
  – Frequent Flyer Miles
  – Frequent Shopper Cards
• We’ve been engaging in it recently without
  calling it Gamification
  – Foursquare and “Check Ins”
  – Wii Fit
  – Progress Bars in Social Media Profiles

                                               9
Categories of gamification
• Consumer Engagement (using game mechanics to
  draw consumer attention and sell more goods
  and services)
• Employee Incentives (using game mechanics for
  more employee productivity or for employee
  training, etc.)
• Collaborative work (to encourage teams to
  discover solutions)
• Social Change (using game mechanics to
  enact social change).
                                              10
Examples   Source: Link




                          11
Why pay attention?
• There are more than a half a billion people
  worldwide who play online games at least an
  hour a day. Gaming is productive. It produces
  positive emotion, stronger social relationships, a
  sense of accomplishment, and for players who
  are a part of a game community, a chance to
  build a sense of purpose. I'm interested in
  bringing this mindset to our real lives and efforts
  to tackle the world's most urgent problems, from
  curing cancer to slowing climate change.
— Game designer Jane McGonigal,

                                                    12
Generation G, Primed for games
• Currently more than half a billion people worldwide playing
  online games at least an hour a day -- and 183 million in the
  US alone.
• More than 230 million active users play Zynga’s games
• 97% of boys under 18 and 94% of girls under 18 report
  playing videogames regularly.
• The average young person racks up 10,000 hours of gaming
  by the age of 21. That's almost exactly as much time as they
  spend in a classroom during all of middle school and high
  school.
• 5 million gamers in the U.S are spending more than 40
  hours a week playing games -- the same as a full time job!


                                                             13
Moral hazard problem
• If you reward people for doing something they
   are not interested in, you de-motivate them in
   the long run
• It's like giving kids a dollar for doing math
   problems. They will do the math problems
   because they like the money, but will become
   conditioned to do it only for the money
-- Michael Wu, Researcher online behavior for
   Lithium Technologies

                                                14
Market
• Gamification market, currently estimated at around $100
  million, will grow to more than $2.8 billion by 2016.
• The enterprise represents the largest vertical segment of the
  gamification market, accounting for nearly a quarter of the
  market.
• Top Gamification vendors are projecting 197% growth in
  2012, up from 155% in 2011.
• Gamification vendors report that 47% of client implementations
  are for user engagement, with brand loyalty accounting for 22%
  and brand awareness 15%.




                                                               15
            Source M2 Research
IT Stack
     Users

    Services
                    Behavioral
    Gaming          Change Layer

     Social

  Applications

Operating Systems


    Hardware
                              16
Why does it work?
• Meaning
  – Connect actions to personal goals
  – Tells a story
• Mastery
  – Learning is fun
  – Scaffolding challenges
• Autonomy
  – Play is voluntary

                                                                      17
   Sebastian Deterding Meaningful Play: Getting Gamification Right
Don’t Play Games With Me, Sebastian Deterding   18
What are game mechanics?
• They are principles, rules, and/or mechanisms
  (much like mechanics in physics) that govern a
  behavior through a system of
  incentives, feedback, and rewards with
  reasonably predictable outcome




      Source: Micheal Wu                       19
Examples of Game Mechanics
•   Points
•   Badges
•   Leaderboards
•   Levels
•   Challenges
•   Virtual Goods
•   Gifts

                                  20
Human desires
•   Rewards
•   Status
•   Achievement
•   Self expression
•   Competition
•   Altruism



                                21
Motivation
• Extrinsic
   – Points
   – Leaderboards
   – scores
• Intrinsic
   – Challenge
   – Learning


                                 22
Motivation Triggers
• Personal
  – You came back to this site 7 days in a row
• Within network
  – You wrote more reviews than your friend
• Across networks
  – You are the first to kill all enemies


      Source: Badgeville White Paper

                                                 23
Behavior
•   Uploading content
•   Viewing a page
•   Sharing an item
•   Leaving comments
•   Writing reviews
•   Return visits to a site
•   Watching videos
•   Buying a product
•   Adding an item to your shopping cart, or
•   Any other behavior trackable with a click or mouse-
    over
                                                          24
Source: Bunchball
                    25
Gamification Advantages
•   Accelerated feedback cycles.
•   Clear goals and rules of play.
•   A compelling narrative.
•   Tasks that are challenging but achievable.




       Source: Catherine Aurelio                 26
Risks
• Poor execution
   – It’s boring, it’s incompatible with your goal, etc. As a
     result, at best it distracts your user; at worst it damages
     your brand
• Mismanaging engagement
   – In the “social” era, everyone believes that he or she is a
     part owner of brands and content and they believe they
     have a vested interest in the direction of the brand
     or content
   – And every user engaged through gamification has a free
     non-legal remedy if the engagement was mismanaged.
• Legal risks

                                                                   27
Challenges
• Extrinsic rewards, like monetary bonuses, are
  great at encouraging rote behavior
• They actually hinder performance for tasks
  that require creativity
• People are motivated by three main things:
  autonomy, mastery, and purpose
• Any ethical issues with behavior
  manipulation?

                                                  28
Challenges
• Margaret Robertson: Can’t Play, Won’t Play
  [2010]
 “Gamification is an inadvertent con. It tricks
  people into believing that there’s a simple way
  to imbue their thing
  (bank, gym, job, government, genital health
  outreach program, etc) with the
  psychological, emotional and social power of a
  great game.”
• Exploitationware
                                                29
Examples




           30
Health
• Being healthy isn’t inherently fun per se, but
  could be made more engaging and actionable if
  it’s gamified, which starts with
• Measuring daily actions and decisions,
• Providing instant feedback and data back to
  users,
• Adding interactivity and game-like mechanics
  around this data to make health “playable” by
  users.
  Source: Tim Chang, Mayfields
                                                   31
32
Source: Wired Magazine, 2008
                               33
34
Other Examples
• Sustainability - Nissan Myleaf
• Get fit : NextJump
• Financial – Mint.com
• Save the planet: RecycleBank
• Make research and evangelism count:
  Crowdtap
• The biggest loser

                                        35
Common across good use
• Applying principles of game design to non-
  game activities can be done
  carefully, artfully, and with wonderful results
• Necessary condition: your
  brand, product, service has to make users
  better at something
• Just make people better at something they
  want to be better at. Kathy Sierra

                                                    36
Platform Providers
•   Bunchball, Nitro
•   Cubepoints
•   Badgeville
•   Get Glue
•   Bigdoor




                                  37
Capabilities Supported
• Game mechanics
• Social fabric analysis
• Integration with social platforms
• Engagement analytics
• API based SaaS pricing
• Personalized challenges, not "one size fits all" badges
• The opportunity to compete and collaborate alone or
  in teams
• Meaningful rewards for accomplishing things.



                                                            38
          Source: Quora
Question
• Can gamification be used to solve societal
  problems?




                                               39
40
41
Gamification for Social Good
•   Balancing the federal budget
•   Reducing poverty
•   Decreasing waste of natural resources
•   Reducing energy consumption
•   Measuring consumer confidence
•   Leading healthier lifestyles
•   Other topics will be considered, but
    – Must show strong links to a social issue &
    – Must have macroeconomic content or context

                                                   42
Framework
•   Define Problem
•   Identify Stakeholders
•   List Critical Success Factors
•   Identify Current Challenges
•   Apply Gamification
    – Mechanics
    – Human needs or motivators
    – Align incentives with goals
• Perform Risk analysis
• Track Success measures
                                    43
Apply Gamification
•   Define player motivation
•   Define your victory conditions
•   Set the rules of the game
•   Make it social




       Source: Addingplay with Playgen   44
Alignment
• Define your site’s business goals.
  – Which behaviors do you want to encourage?
    (Visits, comments, etc)
• Identify & segment site visitors.
  – Use deep engagement analytics to understand the
    site audience
• Reward Engagement
  – Recognize and reward engagement that aligns
    with strategic business objectives in real time.

                                                       45
Gamification best practice
•   Be clear about business outcomes
•   Map your goals with your user’s interests.
•   Prioritize the actions you want your users to take.
•   Add rewards and prevent users from gaming the system.
•   Reward behavior based on the value of the action.
•   Use levels to keep users coming back.
•   Use real-time feedback on progress.
•   Leverage groups and teams to collaborate and push one another.
•   Integrate social media.
•   Integrate into business processes or core activity
•   Measure, analyze and refocus
                                                                46
Virtual currencies
• Are the incentives/rewards that you
  offer convertible into real goods
  and, therefore, run afoul of virtual currency
  regulations?
• Are the incentives/rewards effectively gift
  cards and, therefore, run afoul of state gift
  card rules?
• Are the games structured in a way so that they
  are a legal contest or sweepstakes?

                                               47
What next?
•   Add gamification capability to your toolkit
•   What processes do you want to gamify?
•   Join gamification communities
•   Perform strategic experiments
•   Analyze success and failure stories
•   Understand the risks
•   Make sure that preconditions are validated
•   Measure success

                                                  48
Resources
• Catherine Aurelio, TED Talk
• 11 Tips for a Winning Gamification Strategy




                                                49

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Understanding Gamification of Business

  • 1. Understanding Gamification: From Commercial to Social Bala Iyer February 2012 @balaiyer 1
  • 2. Trends • Gamification, social layer and virtual currency are buzzing. 2
  • 3. What is Gamification? • Integrating game dynamics into a core activity or non-game environments in order to educate, change attitude or behavior and inspire action. • "taking the best ideas from games and applying them to fields where they are not usually used” [Gabe Zichermann] • Core activities -- business process, service, community of purpose, content management, campaign management or product use 3
  • 4. Purpose • Drive motivation, participation or engagement. • Education, change habits, attitudes and behaviors and inspire action 30-day rule 4
  • 5. What can we get out of it? • The technique can encourage people to perform chores that they ordinarily consider boring, such as completing surveys, employee performance, training, remembering to take medicine, or shopping. • Activities are made more game-like (i.e. fun, rewarding, desirable, etc.) • We believe that it can also have loftier ambitions like catalyzing social change. 5
  • 6. More than a technology • It is a capability • Requires investments in: – People (designers, developers, change management) – Process (methodology, performance) – Technology (gaming platforms, analytics) – Governance (policies and review) 6
  • 7. Skills Video Games Develop Source: Online Colleges 7
  • 8. What is a game? • An environment • A set of clear rules to win rewards & achieve victory • An objective for victory (a quest) • A way to measure progress against ourselves and others (scoring system) • Many things in our lives are an implicit game: – getting into a good college, landing a good job, finding a significant other, and credit scores. Source: Tim Chang, Mayfield fund 8
  • 9. Not New • We’ve had this for a long time: – Frequent Flyer Miles – Frequent Shopper Cards • We’ve been engaging in it recently without calling it Gamification – Foursquare and “Check Ins” – Wii Fit – Progress Bars in Social Media Profiles 9
  • 10. Categories of gamification • Consumer Engagement (using game mechanics to draw consumer attention and sell more goods and services) • Employee Incentives (using game mechanics for more employee productivity or for employee training, etc.) • Collaborative work (to encourage teams to discover solutions) • Social Change (using game mechanics to enact social change). 10
  • 11. Examples Source: Link 11
  • 12. Why pay attention? • There are more than a half a billion people worldwide who play online games at least an hour a day. Gaming is productive. It produces positive emotion, stronger social relationships, a sense of accomplishment, and for players who are a part of a game community, a chance to build a sense of purpose. I'm interested in bringing this mindset to our real lives and efforts to tackle the world's most urgent problems, from curing cancer to slowing climate change. — Game designer Jane McGonigal, 12
  • 13. Generation G, Primed for games • Currently more than half a billion people worldwide playing online games at least an hour a day -- and 183 million in the US alone. • More than 230 million active users play Zynga’s games • 97% of boys under 18 and 94% of girls under 18 report playing videogames regularly. • The average young person racks up 10,000 hours of gaming by the age of 21. That's almost exactly as much time as they spend in a classroom during all of middle school and high school. • 5 million gamers in the U.S are spending more than 40 hours a week playing games -- the same as a full time job! 13
  • 14. Moral hazard problem • If you reward people for doing something they are not interested in, you de-motivate them in the long run • It's like giving kids a dollar for doing math problems. They will do the math problems because they like the money, but will become conditioned to do it only for the money -- Michael Wu, Researcher online behavior for Lithium Technologies 14
  • 15. Market • Gamification market, currently estimated at around $100 million, will grow to more than $2.8 billion by 2016. • The enterprise represents the largest vertical segment of the gamification market, accounting for nearly a quarter of the market. • Top Gamification vendors are projecting 197% growth in 2012, up from 155% in 2011. • Gamification vendors report that 47% of client implementations are for user engagement, with brand loyalty accounting for 22% and brand awareness 15%. 15 Source M2 Research
  • 16. IT Stack Users Services Behavioral Gaming Change Layer Social Applications Operating Systems Hardware 16
  • 17. Why does it work? • Meaning – Connect actions to personal goals – Tells a story • Mastery – Learning is fun – Scaffolding challenges • Autonomy – Play is voluntary 17 Sebastian Deterding Meaningful Play: Getting Gamification Right
  • 18. Don’t Play Games With Me, Sebastian Deterding 18
  • 19. What are game mechanics? • They are principles, rules, and/or mechanisms (much like mechanics in physics) that govern a behavior through a system of incentives, feedback, and rewards with reasonably predictable outcome Source: Micheal Wu 19
  • 20. Examples of Game Mechanics • Points • Badges • Leaderboards • Levels • Challenges • Virtual Goods • Gifts 20
  • 21. Human desires • Rewards • Status • Achievement • Self expression • Competition • Altruism 21
  • 22. Motivation • Extrinsic – Points – Leaderboards – scores • Intrinsic – Challenge – Learning 22
  • 23. Motivation Triggers • Personal – You came back to this site 7 days in a row • Within network – You wrote more reviews than your friend • Across networks – You are the first to kill all enemies Source: Badgeville White Paper 23
  • 24. Behavior • Uploading content • Viewing a page • Sharing an item • Leaving comments • Writing reviews • Return visits to a site • Watching videos • Buying a product • Adding an item to your shopping cart, or • Any other behavior trackable with a click or mouse- over 24
  • 26. Gamification Advantages • Accelerated feedback cycles. • Clear goals and rules of play. • A compelling narrative. • Tasks that are challenging but achievable. Source: Catherine Aurelio 26
  • 27. Risks • Poor execution – It’s boring, it’s incompatible with your goal, etc. As a result, at best it distracts your user; at worst it damages your brand • Mismanaging engagement – In the “social” era, everyone believes that he or she is a part owner of brands and content and they believe they have a vested interest in the direction of the brand or content – And every user engaged through gamification has a free non-legal remedy if the engagement was mismanaged. • Legal risks 27
  • 28. Challenges • Extrinsic rewards, like monetary bonuses, are great at encouraging rote behavior • They actually hinder performance for tasks that require creativity • People are motivated by three main things: autonomy, mastery, and purpose • Any ethical issues with behavior manipulation? 28
  • 29. Challenges • Margaret Robertson: Can’t Play, Won’t Play [2010] “Gamification is an inadvertent con. It tricks people into believing that there’s a simple way to imbue their thing (bank, gym, job, government, genital health outreach program, etc) with the psychological, emotional and social power of a great game.” • Exploitationware 29
  • 30. Examples 30
  • 31. Health • Being healthy isn’t inherently fun per se, but could be made more engaging and actionable if it’s gamified, which starts with • Measuring daily actions and decisions, • Providing instant feedback and data back to users, • Adding interactivity and game-like mechanics around this data to make health “playable” by users. Source: Tim Chang, Mayfields 31
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  • 35. Other Examples • Sustainability - Nissan Myleaf • Get fit : NextJump • Financial – Mint.com • Save the planet: RecycleBank • Make research and evangelism count: Crowdtap • The biggest loser 35
  • 36. Common across good use • Applying principles of game design to non- game activities can be done carefully, artfully, and with wonderful results • Necessary condition: your brand, product, service has to make users better at something • Just make people better at something they want to be better at. Kathy Sierra 36
  • 37. Platform Providers • Bunchball, Nitro • Cubepoints • Badgeville • Get Glue • Bigdoor 37
  • 38. Capabilities Supported • Game mechanics • Social fabric analysis • Integration with social platforms • Engagement analytics • API based SaaS pricing • Personalized challenges, not "one size fits all" badges • The opportunity to compete and collaborate alone or in teams • Meaningful rewards for accomplishing things. 38 Source: Quora
  • 39. Question • Can gamification be used to solve societal problems? 39
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  • 42. Gamification for Social Good • Balancing the federal budget • Reducing poverty • Decreasing waste of natural resources • Reducing energy consumption • Measuring consumer confidence • Leading healthier lifestyles • Other topics will be considered, but – Must show strong links to a social issue & – Must have macroeconomic content or context 42
  • 43. Framework • Define Problem • Identify Stakeholders • List Critical Success Factors • Identify Current Challenges • Apply Gamification – Mechanics – Human needs or motivators – Align incentives with goals • Perform Risk analysis • Track Success measures 43
  • 44. Apply Gamification • Define player motivation • Define your victory conditions • Set the rules of the game • Make it social Source: Addingplay with Playgen 44
  • 45. Alignment • Define your site’s business goals. – Which behaviors do you want to encourage? (Visits, comments, etc) • Identify & segment site visitors. – Use deep engagement analytics to understand the site audience • Reward Engagement – Recognize and reward engagement that aligns with strategic business objectives in real time. 45
  • 46. Gamification best practice • Be clear about business outcomes • Map your goals with your user’s interests. • Prioritize the actions you want your users to take. • Add rewards and prevent users from gaming the system. • Reward behavior based on the value of the action. • Use levels to keep users coming back. • Use real-time feedback on progress. • Leverage groups and teams to collaborate and push one another. • Integrate social media. • Integrate into business processes or core activity • Measure, analyze and refocus 46
  • 47. Virtual currencies • Are the incentives/rewards that you offer convertible into real goods and, therefore, run afoul of virtual currency regulations? • Are the incentives/rewards effectively gift cards and, therefore, run afoul of state gift card rules? • Are the games structured in a way so that they are a legal contest or sweepstakes? 47
  • 48. What next? • Add gamification capability to your toolkit • What processes do you want to gamify? • Join gamification communities • Perform strategic experiments • Analyze success and failure stories • Understand the risks • Make sure that preconditions are validated • Measure success 48
  • 49. Resources • Catherine Aurelio, TED Talk • 11 Tips for a Winning Gamification Strategy 49