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GAMIFICATION
  HOW GAME THINKING CAN
REVOLUTIONIZE YOUR BUSINESS
                  Prof. Kevin Werbach
    Email: werbach@wharton.upenn.edu / |Twitter: @kwerb


         Wharton Lifelong Learning, September 2012




KNOWLEDGE FOR ACTION
When I say the word

      GAMES
what do you think of?
 KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Games




KNOWLEDGE FOR ACTION     Gamification / Prof. Kevin Werbach
Games




KNOWLEDGE FOR ACTION     Gamification / Prof. Kevin Werbach
Games




                           http://www.flickr.com/photos/mikaelmiettinen/4237381930/


KNOWLEDGE FOR ACTION     Gamification / Prof. Kevin Werbach
Games




                                          CREDIT: http://capl.washjeff.edu/4/m/223.jpg

KNOWLEDGE FOR ACTION     Gamification / Prof. Kevin Werbach
Games?

KNOWLEDGE FOR ACTION      Gamification / Prof. Kevin Werbach
Games?

KNOWLEDGE FOR ACTION      Gamification / Prof. Kevin Werbach
Games?

KNOWLEDGE FOR ACTION      Gamification / Prof. Kevin Werbach
KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
1 billion
KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
2 billion

KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
9 billion
KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
70%
of employees
are not fully
motivated
 KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach   14
fully
        motivated
KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach   15
Real World Activity                               Game Concept


Monthly sales competition                         Challenge

Frequent flyer program tiers                      Levels

Weight Watchers group                             Team

Grades                                            Scores

Assignments                                       Quests

Free coffee after 10 purchases at Starbucks       Reward

American Express Platinum Card                    Badge




KNOWLEDGE FOR ACTION               Gamification / Prof. Kevin Werbach
KNOWLEDGE FOR ACTION
what can we
learn from
games
to help with

 KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach   19
KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach   20
GAMIFICATION

KNOWLEDGE FOR ACTION
A Big Deal?
  “Suddenly, gamification is
  the hot new business             “Striving to make everyday
  concept, with many               business tasks more
  of the world’s most              engaging, a growing number
  admired companies                of firms... are incorporating
  signing on.”                     elements of videogames into
                                   the workplace.”
  - Fortune, Oct. 17, 2011
                                   – Wall St. Journal, Oct. 10,
                                   2011


“By 2015, more than 50 percent of organizations that manage
innovation processes will gamify those processes.” - Gartner Group


    KNOWLEDGE FOR ACTION           Gamification / Prof. Kevin Werbach
Guess Who’s Gamifying?
• Microsoft              • Samsung                  • eBay
• Nike                   • EMC                      • Cisco
• SAP                    • Foursquare               • Recyclebank
• American               • Stack Overflow • Universal Music
  Express                • USA Networks • Siemens
• Major League           • LiveOps                  • Yelp
  Baseball                                          • Nissan
                         • Dell
• Salesforce.com                                    • Verizon
                         • Kaiser
• AXA Equitable            Permanente
• CodeAcademy            • Foot Locker
• Deloitte               • Opower
  KNOWLEDGE FOR ACTION               Gamification / Prof. Kevin Werbach   23
Gamification is…




  KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
game elements




                            Not just games for
                            business purposes!



 KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach   26
Points




                           Resource                                                    Levels
                           Collection                             Progression




             Quests                     Avatars




                                                  Social Graph




         KNOWLEDGE FOR ACTION                     Gamification / Prof. Kevin Werbach      27
Progression




                                                                 Levels
                                            Points



                        Rewards




                       Quests
Avatars



                                                                 Social Graph

                       Badges



KNOWLEDGE FOR ACTION        Gamification / Prof. Kevin Werbach                  28
game design techniques


• Think like a game designer
 – Note: not “think like a gamer”
 – Goal is to get players to play, and continue playing

• Making something fun isn’t easy!




   KNOWLEDGE FOR ACTION                                   29
game                                   Player modeling



design
                                               Iteration
                                            Prototyping
                                            Scaffolding
                                              Balancing
                                            Playtesting
                                                    etc.

KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
non-game contexts:

                   • External
                       – Marketing
                       – Sales
                       – Customer engagement

                   • Internal
                       – HR
                       – Productivity enhancement
                       – Crowdsourcing

                   • Behavior change
                       – Health and wellness
                       – Sustainability
                       – Personal finance


KNOWLEDGE FOR ACTION                Gamification / Prof. Kevin Werbach
Marketers Get Psyched


                                                           Avatars
                                 Points




   Rewards


                                           Badges



Challenges




                                       Leaderboard
      KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Marketers Get REALLY Psyched

• Overall traffic on the USA Network site increased 30%

• Online merchandise sales increased 50%

• Pageviews increased 130%

• Psych content shared 300,000 times on Facebook,
  reaching 40 million users.

• Twitter-based activity nominated for an Emmy




  KNOWLEDGE FOR ACTION       Gamification / Prof. Kevin Werbach
Who Wants to Test Dialogue Boxes?




  KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach   34
Windows 7 Language Quality Game



• 4,500 participants
• Reviewed over 500,000 dialog boxes
• 6,700 bugs reported
• Hundreds of significant fixes




  KNOWLEDGE FOR ACTION      Gamification / Prof. Kevin Werbach   35
Restaurant Servers




  KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach   36
Objective Logistics




• 2-4% revenue increase
• Improved job satisfaction




    KNOWLEDGE FOR ACTION      Gamification / Prof. Kevin Werbach   37
Speed Limit Enforcement




  KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Speed Limit Enforcement




  KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Speed Limit Enforcement




                         • Average speed in
                           Stockholm trial decreased
                           from 32 to 25 kmph (22%).




  KNOWLEDGE FOR ACTION     Gamification / Prof. Kevin Werbach
Even Al Qaeda Uses It!




  KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
HOW DO
  games
                       MOTIVATE?
KNOWLEDGE FOR ACTION     Gamification / Prof. Kevin Werbach
TIME FOR
      A GAME
KNOWLEDGE FOR ACTION
Look in your wallet or purse.
 Pull out the oldest coin.




KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Winner!



KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Why was this a bad game?




KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Self Determination Theory



Competence               Autonomy               Relatedness




  KNOWLEDGE FOR ACTION       Gamification / Prof. Kevin Werbach   47
Games Promote Intrinsic Motivation
                         • Problem solving

 Competence              • Sense of progress toward mastery
                         • Frequent and direct feedback

                         • Player-centered
                         • Experimentation (less fear of failure)
  Autonomy
                         • Customization

                         • Sense of purpose or goals
                         • Creation of meaning
 Relatedness
                         • Social interactions


  KNOWLEDGE FOR ACTION             Gamification / Prof. Kevin Werbach   48
Competence              Autonomy               Relatedness

                         equals




 KNOWLEDGE FOR ACTION       Gamification / Prof. Kevin Werbach   49
games
are designed to be                              fun


 KNOWLEDGE FOR ACTION   Gamification / Prof. Kevin Werbach
Gamification
       esign
                         1. Define business objectives

                         2. Delineate target behaviors

                         3. Describe your players

                         4. Devise activity loops

                         5. Don’t forget the fun!

                         6. Deploy appropriate tools

  KNOWLEDGE FOR ACTION     Gamification / Prof. Kevin Werbach   51
• Management         • HR                    • Analytics

• Marketing          • Psychology            • Social Media

• Operations         • Design                • Law & Ethics

  KNOWLEDGE FOR ACTION          Gamification / Prof. Kevin Werbach   52
78,000 (and counting)
students from
151 countries
can’t be wrong…

can they?




                         https://www.coursera.org/course/gamification


  KNOWLEDGE FOR ACTION       Gamification / Prof. Kevin Werbach     53
ONE FINAL
   STORY
KNOWLEDGE FOR ACTION
Place a single grain of rice on
the first square of a chessboard.

Double the amount on each
subsequent square.

How many grains in total at
the end of the board?




    KNOWLEDGE FOR ACTION      Gamification / Prof. Kevin Werbach
Place a single grain of rice on
the first square of a chessboard.

Double the amount on each
subsequent square.

How many grains in total at
the end of the board?




                 18,446,744,073,709,551,615
    KNOWLEDGE FOR ACTION      Gamification / Prof. Kevin Werbach
thank you!
   Prof. Kevin Werbach
werbach@wharton.upenn.edu
     Twitter: @kwerb




                                    Available October 30
                            http://wdp.wharton.upenn.edu/books/
    KNOWLEDGE FOR ACTION
Q&A

KNOWLEDGE FOR ACTION

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How Game Thinking Can Revolutionize Your Business

  • 1. GAMIFICATION HOW GAME THINKING CAN REVOLUTIONIZE YOUR BUSINESS Prof. Kevin Werbach Email: werbach@wharton.upenn.edu / |Twitter: @kwerb Wharton Lifelong Learning, September 2012 KNOWLEDGE FOR ACTION
  • 2. When I say the word GAMES what do you think of? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 3. Games KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 4. Games KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 5. Games http://www.flickr.com/photos/mikaelmiettinen/4237381930/ KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 6. Games CREDIT: http://capl.washjeff.edu/4/m/223.jpg KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 7. Games? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 8. Games? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 9. Games? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 10. KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 11. 1 billion KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 12. 2 billion KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 13. 9 billion KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 14. 70% of employees are not fully motivated KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 14
  • 15. fully motivated KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 15
  • 16. Real World Activity Game Concept Monthly sales competition Challenge Frequent flyer program tiers Levels Weight Watchers group Team Grades Scores Assignments Quests Free coffee after 10 purchases at Starbucks Reward American Express Platinum Card Badge KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 18. what can we learn from games to help with KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 19. KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 19
  • 20. KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 20
  • 22. A Big Deal? “Suddenly, gamification is the hot new business “Striving to make everyday concept, with many business tasks more of the world’s most engaging, a growing number admired companies of firms... are incorporating signing on.” elements of videogames into the workplace.” - Fortune, Oct. 17, 2011 – Wall St. Journal, Oct. 10, 2011 “By 2015, more than 50 percent of organizations that manage innovation processes will gamify those processes.” - Gartner Group KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 23. Guess Who’s Gamifying? • Microsoft • Samsung • eBay • Nike • EMC • Cisco • SAP • Foursquare • Recyclebank • American • Stack Overflow • Universal Music Express • USA Networks • Siemens • Major League • LiveOps • Yelp Baseball • Nissan • Dell • Salesforce.com • Verizon • Kaiser • AXA Equitable Permanente • CodeAcademy • Foot Locker • Deloitte • Opower KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 23
  • 24. Gamification is… KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 25. game elements Not just games for business purposes! KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 26. KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 26
  • 27. Points Resource Levels Collection Progression Quests Avatars Social Graph KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 27
  • 28. Progression Levels Points Rewards Quests Avatars Social Graph Badges KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 28
  • 29. game design techniques • Think like a game designer – Note: not “think like a gamer” – Goal is to get players to play, and continue playing • Making something fun isn’t easy! KNOWLEDGE FOR ACTION 29
  • 30. game Player modeling design Iteration Prototyping Scaffolding Balancing Playtesting etc. KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 31. non-game contexts: • External – Marketing – Sales – Customer engagement • Internal – HR – Productivity enhancement – Crowdsourcing • Behavior change – Health and wellness – Sustainability – Personal finance KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 32. Marketers Get Psyched Avatars Points Rewards Badges Challenges Leaderboard KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 33. Marketers Get REALLY Psyched • Overall traffic on the USA Network site increased 30% • Online merchandise sales increased 50% • Pageviews increased 130% • Psych content shared 300,000 times on Facebook, reaching 40 million users. • Twitter-based activity nominated for an Emmy KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 34. Who Wants to Test Dialogue Boxes? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 34
  • 35. Windows 7 Language Quality Game • 4,500 participants • Reviewed over 500,000 dialog boxes • 6,700 bugs reported • Hundreds of significant fixes KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 35
  • 36. Restaurant Servers KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 36
  • 37. Objective Logistics • 2-4% revenue increase • Improved job satisfaction KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 37
  • 38. Speed Limit Enforcement KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 39. Speed Limit Enforcement KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 40. Speed Limit Enforcement • Average speed in Stockholm trial decreased from 32 to 25 kmph (22%). KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 41. Even Al Qaeda Uses It! KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 42. HOW DO games MOTIVATE? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 43. TIME FOR A GAME KNOWLEDGE FOR ACTION
  • 44. Look in your wallet or purse. Pull out the oldest coin. KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 45. Winner! KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 46. Why was this a bad game? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 47. Self Determination Theory Competence Autonomy Relatedness KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 47
  • 48. Games Promote Intrinsic Motivation • Problem solving Competence • Sense of progress toward mastery • Frequent and direct feedback • Player-centered • Experimentation (less fear of failure) Autonomy • Customization • Sense of purpose or goals • Creation of meaning Relatedness • Social interactions KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 48
  • 49. Competence Autonomy Relatedness equals KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 49
  • 50. games are designed to be fun KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 51. Gamification esign 1. Define business objectives 2. Delineate target behaviors 3. Describe your players 4. Devise activity loops 5. Don’t forget the fun! 6. Deploy appropriate tools KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 51
  • 52. • Management • HR • Analytics • Marketing • Psychology • Social Media • Operations • Design • Law & Ethics KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 52
  • 53. 78,000 (and counting) students from 151 countries can’t be wrong… can they? https://www.coursera.org/course/gamification KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 53
  • 54. ONE FINAL STORY KNOWLEDGE FOR ACTION
  • 55. Place a single grain of rice on the first square of a chessboard. Double the amount on each subsequent square. How many grains in total at the end of the board? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 56. Place a single grain of rice on the first square of a chessboard. Double the amount on each subsequent square. How many grains in total at the end of the board? 18,446,744,073,709,551,615 KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
  • 57. thank you! Prof. Kevin Werbach werbach@wharton.upenn.edu Twitter: @kwerb Available October 30 http://wdp.wharton.upenn.edu/books/ KNOWLEDGE FOR ACTION

Notas do Editor

  1. 30 million angry birds players per day, 300 million total downloads
  2. Great. We’ve started to identify some of the complexity around games. The work I’m going to discuss with you looking at the potential of games. When I say “games”, this may be what you have in mind.
  3. 30 million angry birds players per day, 300 million total downloads
  4. 30 million angry birds players per day, 300 million total downloads
  5. 2 billion hours per month on Xbox Live.
  6. 9 billion hours in 2003
  7. Consumers aren’t motivated either, and things like exercise.
  8. WoW at it’s peak had over 12 million paying players. Close to a $2 billion annual business
  9. so if games are hugely popular, and they create their own meaning, how could we leverage them.
  10. 1 hour of coding. 20% increase in profile length.
  11. 1 hour of coding. 20% increase in profile length.
  12. Advergames are one example. But they are just games, not integrated with the brand. Can we do more than that.
  13. After all, video gamesare a $70 billion global industry that is 40 years old
  14. Average profit margin is 3%Reduced turnover of staff
  15. Because of the power of games.
  16. I’ve got some answers to that, but first, let’s play a game.
  17. What makes something fun? Puzzles, challenges, everyone involved, skill, autonomy, social interaction.Cash prize – how much? 10 cents? $100,000. Overjustification effect. What if I then took away the prize?
  18. So I began to study application of game design to business, held first ever symposium, first ever course,
  19. The inventor of the game of chess was asked by the emperor what reward he wanted. Ask people how many grains there will be?
  20. 18.4 quintillionLessons: Sometimes things grow more quickly than you expect. Little changes can have big results. And also, you always need to understand the rules of the game. Because…