Gamification is a two-edged sword. Gamification represents both danger and opportunity. But first, what is “gamification”?
According to IT Research and Advisory firm, Gartner, “Gamification is the use of game design and game mechanics to engage a target audience to change behaviors, learn new skills or engage in innovation.” For me, gamification involves the seamless use of game strategies, tactics, and tools to entertainingly transform the behavior of customers and non-customers. Consequently, gamification offers us a huge opportunity to make this world a happier place while achieving serious goals. The Happiness Economy is here!
The business opportunity for gamification is huge: M2 Research, a market research consultancy in San Diego, projects that by 2015, companies would spend over $2 billion in gamification services. Gartner estimates that “By 2015, 40% of all Global 1000 organizations will be using gamification as the primary mechanism to increase customer engagement, improve employee engagement, and manage innovation projects better.” Surely, gamification is positioned as one of the Next Big Things.
And now for the danger. According to Gartner, “By 2014, 80% of current gamified applications will fail to meet business objectives primarily due to poor design.” In short, 80% of businesses would waste money, time, and other resources in trying to gamify their business models. So, how can we more systematically and successfully gamify business models?
Although there exist successful cases of gamified business models such as for Facebook, LinkedIn, and Nike, I have yet to come across a simple, fast, and fun process for gamifying business models especially for lean startups and small businesses. Many frameworks are emerging for organizing and presenting ideas on gamer archetypes, gamification tools, and mechanics. However, these frameworks are fragmented and little effort is being made to integrate them. I therefore set out to develop a one-page framework that visually integrates different approaches to gamification as well as facilitates the design of gamified business models. The Business Gamification Pyramid is the result. The targeted customer is a Red Ocean Disruptor (ROD); see http://goo.gl/ZyAJBP
For the design of a gamified business model, 5 Gamification Design Questions should be asked and iteratively answered (in the shortest possible time).
5 Gamification Design Questions
#1: WHY gamify?
#2: WHO to gamify for?
#3: WHAT to gamify?
#4: TO WHAT to gamify?
#5: HOW to gamify?