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KEYNOTE:Proving the Value ofGamification in the Enterprise         R “RAY” WANG         CEO & Principal Analyst         Co...
TM     San Francisco | Andalucia | Belfast | Boston | Brussels | Chicago | Colorado Springs | Cupertino | Denver | Irvine ...
Proving the Value of      Gamification in the Enterprise      Moving Beyond Transactions to Engagement      August 8, 2012...
Where will your business be in 2015?                                                                                      ...
Organizations face massive and1. Macro economic forces    unprecedented levels of change   • Loss of faith in capitalism  ...
Social tools are pretty crude                                                           Twitter – I need to pee           ...
Email faces Fatal Fatigue, will social?  Source: September 2011, A Weber Communications                                   ...
Fatal fatigue in adoption is near..                                          5. Revival and                               ...
The enterprise is shifting from         transaction to engagement to experience © 2011 - 2012 R Wang & Insider Associates,...
Gamification is the solution…                                                                       … to influencing© 2010...
The shift starts with active listening for         rewards, achievement, broader trends.© 2010 - 2012 Constellation Resear...
Gamification is not about at technology.         It’s about solving a business problem…        How disruptive technologies...
Move beyond gamification tactics…   © 2011 R Wang & Insider Associates, LLC. All rights reserved. Source: 2012 Q1 Gamifica...
Apply the 9C’s of engagement to create      business value for brands and enterprises            People Centric           ...
Use non-monetary rewards to influence          behavior          Level 1: Recognition                                     ...
Drive value across the entire ecosystem                                                                  Organizations:   ...
Start with the DEEPR to drive business         value across the organization                                              ...
Early adopters starting to identify         meaningful metrics and business models   © 2011 R Wang & Insider Associates, L...
Six simple steps to success                                                                     1. Identify               ...
Questions And Answers                                                                                        20© 2010 - 20...
Thank you                                                                  R “Ray” Wang                                   ...
TM     San Francisco | Andalucia | Belfast | Boston | Brussels | Chicago | Colorado Springs | Cupertino | Denver | Irvine ...
Badgeville Summit, Engage 2012 - KEYNOTE:   Proving the Value of  Gamification in the Enterprise
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Badgeville Summit, Engage 2012 - KEYNOTE: Proving the Value of Gamification in the Enterprise

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R “RAY” WANG, CEO & Principal Analyst · Constellation Research

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  • "Enterprise Gamification"IntroductionGamification for WorkAnd, per Kevin's request: the Ecosystem that's popping up. You seem to best articulate our story about how gamification is being embedded across the enterprise in all employee-facing apps, enterprise systems, business processes, that social software and social CRMBadgeville is at the beginning of something and what we do is the next evolution, etc. 
  • We’ve had some great presentations today. Social media
  • This is a seamingly innocent question. It’s just 2 to 3 years from now. But Imagine what’s happened in the past 24 months. Did you have control or any semblance of control over your profits, revenues, idea creation, new products were introduced, collaboration points, your community, or customer experience? Were you able to effect and affect change? Did you have the right tools to create the conditions to manage the change ahead?Now put yourselves in the mindset of an enterprise or brand. How can you improve your business outcomes?These are the questions you and your organization face amidst massive changes ahead…
  • There are 4 massive forces of change ahead of us. Of the 4 only 3 we can control and let me focus a little on these. Each of these can be improved by influencing the behavior to drive improved outcomes.5 generations of workersWhere, how, when, what, how you work,and even why. We’ve seen compensation surveys that show that salary alone may not be enough to attract, motivate, or retain folks.For one of our clients, it turns out that mentorship, a day off, being put on special projects is more of an incentive for 20 to 30 year olds and 30 year old veterans than a bonus.Business models – products are excuses to sell services. Services are excuses to sell information. If you’ve activated the advocates, you can cut create force multipliers and shift support staffing from 1 to 100 customers to 1 to 500 and even 1 to 1000. Providing a crowdsourced support solution can give you. Swarming game mechanics can improve outcomes, identify experts.Tech adoption – One big shift is also how we put together a series of disruptive technologies, payment mechanisms, social, mobile, cloud, big data, gamification. What technologies to we adopt and what we pass on become signifcant decisions. One thing is sure, the convergence of these technologies is driving adoption and social is the gateway in.
  • The big push to social businesses provide an opportunity to reengage the customer. But keep in mind, none of these tools sustain engagement on their own. These are communications channels that can be enhanced with engagement. Social alone won’t get you there for both internal and external. Which is why, we need gamification. Recent data on number of users at the Big 4 of social media show that we are in the middle of ubiquitous usage:Facebook (901M users as of Feb 2012)Twitter (500M users as of March 2012)LinkedIn (161M users as of March 2012)Google+ (100M users as of Feb 2012)
  • Overload, too many social channels – internal networks, external networks, personal networks, a new social media tool launched once every 24 hours. Everyone wants to collaborate, work with each other. Every brand wants you to join their community. Can we handle all the pressure?76% of brand conversations happen offline 14% of brand conversations happen by phone8% of brand conversations happen onlineHave we hit a social media plateau?  In recent client conversations on usage of social media, the trendsetters appear to be “socialed out”.   Most early adopters seem to be overwhelmed with their personal (Facebook, Google+), corporate (Yammer, Jive, Chatter, SharePoint), and professional (LinkedIn) social networks.  In fact, respondents feel that adding any additional network for anything social is quite overwhelming.  While early adopters are moving from ubiquitous usage to relevant rationalization, the majority remains in ubiquitous usage (see Figure 1). Have we hit a social media plateau?  In recent client conversations on usage of social media, the trendsetters appear to be “socialed out”.   Most early adopters seem to be overwhelmed with their personal (Facebook, Google+), corporate (Yammer, Jive, Chatter, SharePoint), and professional (LinkedIn) social networks.  In fact, respondents feel that adding any additional network for anything social is quite overwhelming.  While early adopters are moving from ubiquitous usage to relevant rationalization, the majority remains in ubiquitous usage (see Figure 1). Recent early adopter surveys identify five key phases of social media adoption:Phase 1: Eager early adopters. Users eagerly experimented in the newness of the medium.   Early adopters attempt to apply the medium to everything.Phase 2: Ubiquitous usage. Rapid adoption put the medium in the hands of the masses.  Adoption exceeds 50 million users.Phase 3: Relevant ratonalization. Brands and enterprises apply the medium to the right business use cases and processes.Phase 4: Desensitization and fatal fatigue. Inundated with marketing, bombarded with irrelevant content, and tired of the newness of the medium, customers begin tuning out.Phase 5: Rejuvenation. Maturation of the medium ushers an improved era of engagement apply the Six C’s of Engagement.
  • So what’s going on.. The shift in business is moving from transactions to engagement and ultimately experience. Internal work forces and external.We’ve moved from monologues to dialoguesWe’ve moved from just in time to right timeWe’ve moved from business rules t
  • Gamification describes a series of design principles, processes and systems used to influence, engage and motivate individuals, groups and communities to drive behaviors and effect desired outcomes. For brands and enterprises, results include improving marketing response among external communities, sustaining long-term customer loyalty, encouraging collaboration among internal teams, or driving onboarding success with new hires.Gamification is more than bolting on feature sets to an existing process or system. Simply adding a badge, points, leaderboards and levels will not drive results. Success requires a design that fits into the architecture of the system and considers the relative value of rewards for the actions being incentivized. This level of influence or behavior management must start during the initial design and account for the relative value systems and culture of the individuals.Interviews with 55 early adopters show gamification being applied across many use cases. Adoption spans a wide variety of roles from marketing to human resources (see figure 1). Based on interviews and analysis, Constellation has identified three core pillars of enterprise gamification (see figure 2):
  • Everyone says this but what are we listening for? Start with what will move the needle – what are the rewards that matter.These are the metrics!Motivational factorsTrust signalsMonitoring performance over timeWhat competitors are sayingWhere the market rends are headingHow’s employee sentimentWhy? These are your leverage points, these are how you’ll build your engagement and gamification strategy.
  • FOW – recruiting, sales team collaborationCXP – customer service swarming, activating advocates, Matrix commerce – mobile shopping, nfc and paymentsD2D– rewarding outcomes and A/B testingTechnology optimization – optimizing usageCoIT and the New Suite – engaging the organization
  • The evolution of gamification for the enterprise–Define enterprise to be large companies. Brands ad well as internalShift to influencing behaviors, incentives, actions.Converging trends. – community, loyalty, gamificationGamification powers social business use casesHow to make enterprise apps social?
  • Customer Experience Metrics Company CultureDoes company support a culture of putting customer satisfaction ahead of profits?Does culture promote creativity and cross functional employee collaboration?Does culture accept different views of multi-generational workforce?Does culture promote employee training and skills developmentDoes culture support upward mobility and long term retention?Does culture support work-life balance?Does the culture provide rewards for employee for outstanding customer support?ChannelsWhat are the current primary channels for customer communications?What do you think will be the primary channels in two years?Is company developing support model for emerging channels?Do all channels consistently deliver the same level of customer support?Do you know the cost per transaction across all channels?Do you engage customers proactively across multiple channels?Do all channels have access to the same customer information?CommunityDoes company extend customer support into virtual communities of interest?Does company facilitate educating users through its virtual communities?Does company mine its customer’s experience into useful data?Does company increase the value for customers through using data to deliver new products and services?Does company support two way interactions with its customers through communities of interest?Does company actively support social CRM, online communities and social media markets?CredibilityDoes company market its trustworthiness through external certificates such as business licenses, BBB certificates or other validations?Does company promote trust through customer testimonials and case studies on ethical business practices?Does company promote truthful market campaignsDoes company make it easy for customers to complain?Does company build its reputation for standing behind its products with guarantees for satisfaction?Does company protect its customer data with high security measures>ContentWhat sources do you use to create customer content?Does company mine social media and blogs for customer content?How does your company sort, store and retain its customer content?How frequently does content get updated?What external sources do you use for customer content?How many responses are typically received from a knowledge management system inquiry?Does your company use customer content to design and develop new product and services?ContextDoes your company market to customers in clusters or individually?Does your company customize its messages and personalize them to specific needs of each individual customer?Does your company store customer data based on their past behaviors, purchases, sentiment analysis and current activities?Does your company manage customer context according to channels used? For example identify personal use channels versus business channels?What is your frequency of collecting customer activities across various touch points?How is your customer data stored and analyzed?Is contextual data used for future customer outreach?CadenceWhich channels does your company measure-web site visits, phone calls, IVR, store visits, face to face, social media?Does company make effective use of cross channel marketing to promote more frequent customer engagement?Does your company rate the patterns relevant for your product or service and monitor usage against this pattern?Does your company measure the frequency of both online and offline channels?Does your company apply metrics to the frequency of customer engagements with product or services revenues?Does your company consolidate data for customer engagement across various channels for a complete view of its customer?CatalystDoes company offer coupon discountsDoes company have a customer loyalty program or a VIP membership program?Does company mine customer data to target specific groups of buyers?Do internal employees serve as ambassadors for customer programs?Does company drive loyalty through social media loyalty programs?Does company build rewards based on using loyalty data?Does company offer an employee incentive program to drive customer loyalty?Currencies (I find it hard to differentiate this element from catalyst-they seem too closely connected)  
  • Level 1: Reputation. This first level focuses on highlighting success and engaging novices. The key themes drive extrinsic behavior. On average, early adopters find that 15-25 percent of a community will engage for recognition. Over 60 percent will be influenced by recognition.2. Level 2: Access. This second level builds demand for association and attracts intermediate users. Non-monetary incentives create value and scarcity around access to resources, people and tools for improvement. Early adopters find that 5-10 percent of a community will seek access as an intrinsic motivator. Over 80 percent will be influenced by a desire for greater access.3. Level 3: Impact. While this third level mainly appeals to power users and advanced users, impact appeals to the entire community from an aspirational level. At this level, bragging rights and incentives align with impact to the organization. Early adopters have found that 1-5 percent of a community will achieve this status. Less than 10 percent of the community will be influenced by impact. However, those that achieve Level 3 demonstrate the greatest levels of allegiance and loyalty.
  • Level 1: Reputation. This first level focuses on highlighting success and engaging novices. The key themes drive extrinsic behavior. On average, early adopters find that 15-25 percent of a community will engage for recognition. Over 60 percent will be influenced by recognition.2. Level 2: Access. This second level builds demand for association and attracts intermediate users. Non-monetary incentives create value and scarcity around access to resources, people and tools for improvement. Early adopters find that 5-10 percent of a community will seek access as an intrinsic motivator. Over 80 percent will be influenced by a desire for greater access.3. Level 3: Impact. While this third level mainly appeals to power users and advanced users, impact appeals to the entire community from an aspirational level. At this level, bragging rights and incentives align with impact to the organization. Early adopters have found that 1-5 percent of a community will achieve this status. Less than 10 percent of the community will be influenced by impact. However, those that achieve Level 3 demonstrate the greatest levels of allegiance and loyalty.
  • Recent interviews with over 100 early adopters of social business (i.e. social crm, E2.0, social media marketing, etc.) indicate five phases of maturity (see Figure 1).  Social CRM progress through five phases including: Discovery. A few individuals begin the process of discovering new tools.  Individuals identify consumer tech innovations that impact enterprise business processes.  Leaders must discern hype from reality and garner executive support.Experimentation. Small teams experiment with new tools.  They fail fast on experiments, learn, and move on.  Leaders must foster internal collaboration and begin the process of vendor selection.Evangelization. Small department leaders seek repeatable processes and begin test pilots of technology.  Momentum begins to build for projects.  Leaders incorporate social into business models and track meaningful business metricsFormalization. Successful evangelization leads to enterprise wide acceptance.  Processes become repeatable and predictable.  Leaders scale to match demand and ensure long term-funding.Realization. With a successful project at hand, the enterprise seeks to expand the usage to ecosystem stakeholders.  Suppliers, partners, and customers are brought into the fold.  Leaders anticipate convergence and develop social business governance plans.
  • The evolution of gamification for the enterprise–Define enterprise to be large companies. Brands ad well as internalShift to influencing behaviors, incentives, actions.Converging trends. – community, loyalty, gamificationGamification powers social business use casesHow to make enterprise apps social?
  • Transcript of "Badgeville Summit, Engage 2012 - KEYNOTE: Proving the Value of Gamification in the Enterprise "

    1. 1. KEYNOTE:Proving the Value ofGamification in the Enterprise R “RAY” WANG CEO & Principal Analyst Constellation Research
    2. 2. TM San Francisco | Andalucia | Belfast | Boston | Brussels | Chicago | Colorado Springs | Cupertino | Denver | Irvine | London | Madrid New York | NOVA |Pune | Sacramento | Santa Fe | Santa Monica | Sedona | South Portland | Sydney | Tokyo | Toronto | Washington, D.C.© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential www.ConstellationRG.com
    3. 3. Proving the Value of Gamification in the Enterprise Moving Beyond Transactions to Engagement August 8, 2012 R “Ray” Wang (@rwang0) TM Principal Analyst & CEO© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    4. 4. Where will your business be in 2015? 4© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    5. 5. Organizations face massive and1. Macro economic forces unprecedented levels of change • Loss of faith in capitalism • Commodity shortages • Changing workplace norms • Political instability • Distributed nature of work2. •Dynamic and force Sustainability work • New work force models environmental focus • Mixed generations • Economic crisis • Aging workforce • Price spikes Macro Workplace • Global talent conditions dynamics • Temporary talent3. • Pace ofbusiness models New obsolescence increasing faster than the rate of Pace of tech Business • Project based adoption • Consumer tech ahead adoption Models • Globalization of enterprise • New stakeholders • Digital divide closing around the • Goliath vs start-up4. Disruptive tech adoption world • Public/ private /hybrid • Connected ubiquity drives new • Regulation/ deregulation adoption models • Business process outsourcing 5 © 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    6. 6. Social tools are pretty crude Twitter – I need to pee Facebook – I peed Google+ - More pee FourSquare – I’m peeing here Pinterest– My pee scrapbook You Tube – Watch me pee LinkedIn – I pee well © 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved. 6© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    7. 7. Email faces Fatal Fatigue, will social? Source: September 2011, A Weber Communications 7© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    8. 8. Fatal fatigue in adoption is near.. 5. Revival and 1. Eager rejuvenation early adopters 4. Fatal 2. Ubiquitous fatigue usage 3. Relevant rationalization© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    9. 9. The enterprise is shifting from transaction to engagement to experience © 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved. 9© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    10. 10. Gamification is the solution… … to influencing© 2010 - 2012 Constellation Research, Inc. All rights reserved. behavior and outcomes Client Confidential
    11. 11. The shift starts with active listening for rewards, achievement, broader trends.© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential 11
    12. 12. Gamification is not about at technology. It’s about solving a business problem… How disruptive technologies and new business models affect business operations Technology NextGen Future of Matrix From Data to Optimization CoIT and the Customer Work Commerce Decisions and New C-Suite Experience Innovation Moving From Transactions To Personal Fulfillment Systems © 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved. 12© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    13. 13. Move beyond gamification tactics… © 2011 R Wang & Insider Associates, LLC. All rights reserved. Source: 2012 Q1 Gamification Early Adopters Best Practices, n - 55 13© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    14. 14. Apply the 9C’s of engagement to create business value for brands and enterprises People Centric Delivery and Right Time Drivers Values Comm Styles Culture Channel Context Community Content Catalyst Credibility Cadence Cause © 2012 R Wang & Insider Associates, LLC. All rights reserved. 14© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    15. 15. Use non-monetary rewards to influence behavior Level 1: Recognition Level 2: Access Level 3: Impact • Influence tracking • Community • Raise personal & • Leaderboards resources and community profile • Achievement badges tutorials • Participate in • Featured placement • Virtual goods feedback surveys • Awards and contests • Special groups • Influence product • Key executives direction • PR and media placement • New features • Drive business • New products outcomes • Speaking slots • Beta versions • Provide proof point • Virtual currencies references and points • Public events • Evangelize products • Private events and concepts 2011 Constellation Research Q1 & Q4 qualitative survey on community engagement incentive drivers 15© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    16. 16. Drive value across the entire ecosystem Organizations: Accountability Individuals: Networks: Portable Facilitation of Reputation Trust The new world of outcomes 2011 Constellation Research Q1 & Q4 qualitative survey on community engagement incentive drivers 16© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    17. 17. Start with the DEEPR to drive business value across the organization R P Level 5: Realization E Level 4: Pervasiveness • Keeping up with social innovations E Level 3: Evangelization • Scaling to match demand • Developing social business D Level 2: Experimentation • Choosing the right tools • Fostering • Ensuring long term funding governance Level 1: • Identifying Discovery Internal meaningful collaboration metrics • Discerning hype from reality • Incorporating gamification • Garnering into business executive models support © 2011 R Wang & Insider Associates, LLC. All rights reserved. 17© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    18. 18. Early adopters starting to identify meaningful metrics and business models © 2011 R Wang & Insider Associates, LLC. All rights reserved. Source: 2012 Q1 Gamification Early Adopters Best Practices, n = 55 18© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    19. 19. Six simple steps to success 1. Identify the business outcomes 6.Refine 2. Design and the use improve cases Engagement Best Practices 3. Apply 5. the 9C’s Measure of and engageme analyze 4. Gamify nt the business processes 19© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    20. 20. Questions And Answers 20© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    21. 21. Thank you R “Ray” Wang 650.918.6619 R@ConstellationRG.com Twitter: @rwang0 http://blog.softwareinsider.org www.ConstellationRG.com 21© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential
    22. 22. TM San Francisco | Andalucia | Belfast | Boston | Brussels | Chicago | Colorado Springs | Cupertino | Denver | Irvine | London | Madrid New York | NOVA |Pune | Sacramento | Santa Fe | Santa Monica | Sedona | South Portland | Sydney | Tokyo | Toronto | Washington, D.C.© 2010 - 2012 Constellation Research, Inc. All rights reserved. Client Confidential www.ConstellationRG.com
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