Using game mechanics to drive your digital transformation


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Enterprise gamification - the application of game design techniques to a business setting in order to make tasks more fun and engaging - is garnering attention from business leaders the world over.

This paper from Capgemini Consulting defines the key elements of gamification and game design, the benefits it can drive and the common pitfalls to watch.

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Using game mechanics to drive your digital transformation

  1. 1. Let the Games BeginUsing Game Mechanics to DriveDigital Transformation
  2. 2. Why Gamification Matters Now?55% of companiessurveyed cited companyculture, particularlyemployee resistanceto job changes, to be amajor hurdle to digitaltransformation.A US insurance giant wasstruggling with inefficientclaims processing leading tolong turnaround times for itscustomers. It wanted to streamlineits complex processes and used agamified social innovation tool todraw ideas from its employees.The initiative saw self-drivenparticipation without any attachedreward component. The chanceto collaborate on simplifyingtheir workflow was the primarydriving factor for the participants.The activity resulted in a new,simplified process, which savedthe company $18 million ayear and increased workersatisfaction.1Over-hyped or duly justified,enterprise gamification — theapplication of game designtechniques to a business setting inorder to make tasks more fun andengaging — is garnering attentionfrom business leaders, world over.Enterprise gamification is expectedto exponentially increase over thenext couple of years. Researchindicates that by 2015, more than40% of global 2000 organizationswill have at least one applicationwhere gamification will be used.2Gamification is anEnabler for DigitalTransformationWhile organizations have rampedup their investments in digitaltools and technologies, two-thirdsof digital transformation projectsfail mainly due to workforcebehavioral issues.3Our latestresearch with the MIT Center forDigital Business indicates that55% of companies surveyed citedcompany culture, particularlyemployee resistance to jobchanges, to be a major hurdle todigital transformation (see Figure1).4We believe that enterprisegamification, when designed andimplemented effectively, can helpaccelerate digital transformationby driving employee engagementand supporting changemanagement.In this paper, we explore thebuilding blocks of successfulgamification and provide anoutline for how organizationsshould approach gamificationas part of their digitaltransformation.aFigure 1: Execution Challenges in Digital TransformationNote: Percentage of firms encountering gaps in skills, IT or culture as mentioned by theirexecutives. Some firms are encountering more than one gap.Source: “Digital Transformation: A Roadmap for Billion Dollar Organizations”, CapgeminiConsulting and MIT Center for Digital Business, 201177%55%50%Missing SkillsCultureIssuesIneffectiveITaScope of this paper is limited to addressing the application of gamification for employee engagement; customer engagement is notcovered in this paper.2
  3. 3. Gamification Helps Overcome Key DigitalTransformation HurdlesEnterprise gamification drivespositive outcomes in fivekey business areas: changemanagement, employeeengagement, employee trainingand learning, innovation andprocess efficiency (see Figure 2).GamificationAccelerates ChangeManagementGamification mimics elementsof real-world business situationsand makes it more engaging bygiving real-time feedback andawards which help employeesnimbly adapt to new processes,systems and business models.Higher employee engagementin game-like settings leads tolower resistance to change whichhelps in accelerating digitaltransformation.For instance, after installing anew event logging system for itssalespeople, a mid-sized firm sawvery poor adoption rates from itsemployees since the team wascomfortable with the old system.In order to increase adoption, thecompany ran a week-long salescompetition where every eventlogged would get a point and theemployee with the highest pointswould get a $100 gift certificate toa local restaurant. During the weekof the contest, the number ofevents logged shot up over 750%and four weeks after the contestwas over, the number of eventslogged per week held steady ataround 6x of earlier values dueto effective behavioural changeof the salespeople – a significantincrease from the pre-contestresults.5Gamifying ProcessesHelps Drive EmployeeEngagement andComplianceEngaged employees often showhigher productivity and arelikely to be more loyal to theorganization. Research revealsthat engaged employees put forth57% more effort and are 87%less likely to leave their companythan employees who considerthemselves disengaged.6Clearrules of engagement, short-termachievable goals, acceleratedfeedback cycles and recognition ofaccomplishments in gamificationhelps drive employee engagementand motivation. This leadsto successful transformationBy 2015, 40% of global1000 organizations willuse gamification as theprimary mechanismto transform businessoperations.Gamified processesat LiveOps Inc.’s callcenters reduced calltimes by 15% andimproved sales by 12%.programs and quantifiablebusiness benefits.LiveOps Inc., which runs virtualcall centers, offers a good exampleof using gamification to driveengagement and compliance.The company gamified itsprocesses by converting theminto a competition, in order tohelp improve the performanceof its 20,000 call agents. It beganawarding agents with virtualbadges and points for tasks suchas keeping calls brief and closingsales. Leaderboards allowedthe agents to compare theirachievements with their peers.Such gamified processes reducedcall times by 15% and improvedsales by 12%.7Figure 2: Business Impact of Enterprise GamificationSource: Capgemini Consulting AnalysisEnterpriseGamificationChangeManagementEmployeeTraining andLearningInnovationProcessEfficiencyEmployeeEngagement3
  4. 4. People trained onvirtual games retainmore facts, attainhigher skill levels andretain informationlonger.Gamification Speeds upEmployee Training andLearningLack of requisite skills can be asignificant impediment to digitaltransformation.8Many firms havelaunched digital training programsto bridge this gap; for instance,Intel launched “iQ”, an employee-curated social media and learningplatform. Gamifying digital trainingprograms accelerates the learningGamification of theOn-Boarding Process at InMobiDuring their rapid expansion, InMobi, an Indian mobile advertising startup, increased their headcount by 10%each month. The HR team was not prepared to handle this growth, which resulted in several challenges suchas on-boarding delays, unavailability of executives to deliver training sessions and lack of systems to track on-boarding progress.The firm partnered with a gamification company to leverage its learning platform to deliver new hire orientationas an online social game. The new hires learnt about different aspects of the company through a gamifiedexperience in a team setting, with badges, points and prizes for top scorers. This approach proved to be effective,resulting in a more engaged and productive workforce within a shorter time frame than previously experienced.Source: Case study from Mindtickle – a firm providing companies with gamified learning solutions.4process. This is especially true forthe technology-savvy GenerationY (Gen Y) workforce, whichstruggles to sit through lengthy,non-interactive presentations. Arecent study found that traineesusing video games had 11% higherfactual knowledge levels, 14%higher skill-based knowledgelevels and 9% higher retentionrates compared to trainees withina passive learning environment.9
  5. 5. 5Research predicts thatby 2015, more than50% of organizationswill gamify theirinnovation processes.Gamification Drives thePace of InnovationGamification helps createan environment thatfacilitates creativity, fosterspeer collaboration in a fun,competitive environment andmoves innovation out of a siloedstructure. Innovation games areuseful for problem solving andin shortening “time to revenue”through their ability to leveragecrowd-sourcing. Crowd-sourcingnew ideas through competitionand reward-based systems are allapplications of game mechanicsand are already popular acrossorganizations (see insert on UKDWP).Gamification Driving Innovation at theUK Department for Work and PensionsThe UK Department for Work and Pensions (DWP) created a market game called “Idea Street” to decentralizeits innovation process and to crowd-source ideas from across the organization. Game mechanics such as points,leader boards and a “buzz index” were used to motivate the employees. The ideas submitted not only earnedpoints but also rank and social status within the community. Within the first 12 months, this exercise generated1,400 ideas, 63 of which went forward for implementation. The employees thrived on the challenge of finding newsolutions and getting recognized for it, while the organization is expected to save £20 million by 2014-2015.Source: Government Computing, “Gamification for the public good”, June 2011Gamification ImprovesProcess EfficiencyProcess redesign, digitization andstreamlining play a critical role inan organization’s cost reductionstrategy. Gamification helpsdrive these elements forward.For instance, Google reduced itstravel expenditure by using gamemechanics. Employees weregiven the option of saving the perdiem amount provided for theirbusiness trips and using it towardsanother trip (which would havehad no budget) or upgrade to ahigher class or cash out a part ofit. The initiative proved successful,resulting in over 90% compliancewith the process.10In the next section, we dig deeperinto the psychological aspect ofgamification and what makes itsuccessful.
  6. 6. Up until the recent past, enterprisegamification was perceivedas an experimental activity.Gamification today however, hasmoved mainstream, as a result ofincreased research and enhancedunderstanding, thereby makingit better suited for enterpriseapplication. Another key factor inits growing popularity is the riseof the Gen Y demographic in theworkforce and their affinity togame-like environments.Gamification Masks aScience beneath Badgesand AwardsSocial games create anenvironment that is inherentlyengaging and competitive. Gamingmechanics incentivize humansthrough intrinsic motivators suchas status, sense of achievement,sense of pride and throughexternal motivators such asfinancial rewards, badges andpromotions.B.J. Fogg, an experimentalpsychologist at Stanford University,USA developed the Fogg BehaviorModel (FBM), in 2009, whichshows that three factors need tobe present to influence humanbehavior: motivation, ability andtrigger (see Figure 3).Why Gamification WorksFigure 3: Science of Gamification - The Fogg Behavior ModelSource: Lithosphere, Science of Social Blog – “Gamification 101: The Psychology of Motivation”Willingness to participateDesire to engage - personal interestPerceived value of potential outcomeReflects individual’s skill, time andmental capacity to perform taskTrigger to prompt target behaviorIt can be either explicit (directingthe user to take action) or experientialMOTIVATIONTRIGGER ABITLITYGAMIFICATION6
  7. 7. Gamification simultaneouslyutilizes all the three factorsstated in Fogg’s behavior model,which positively influenceshuman behavior and results in asuccessful gaming system.11Forinstance, Target Corporation, aUS-based retail giant, gamified itscashier checkout system (trigger)for driving behavioral change andprocess efficiency. Employeeswere scored based on thetransaction’s speed and accuracy(ability). A feedback mechanismusing visual and audio cues wasbuilt into the system as a way tocreate positive reinforcement(motivation). This resulted inincreased job performance,reduced checkout times, andimproved employee morale.12Most enterprise gamificationtools leverage Fogg’s three factorssimultaneously in such a way thatonce connections are made withthe players, the tools sustain theseinteractions, thereby promotingan environment that is bothenjoyable and productive.Most enterprise gamificationtools leverage Fogg’s three factorssimultaneously in such a way thatonce connections are made withthe players, the tools sustain theseinteractions, thereby promotingan environment that is bothenjoyable and productive.Gamification Appealsto the Growing YoungerDemographic in theWorkforceResearch indicates that Gen Yrepresents 25% of the currentglobal workforce and theirnumbers are growing rapidly.13A recent survey indicated thatGen Y employees expect theirjobs to be social and fun, withclear goals to succeed, and whichprovide personal satisfaction. Theywant regular feedback on theirperformance and recognition fortheir work.14Gamification creates new methodsto reach out to the specificrequirements of Gen Y employees.For instance, global hospitalitymajor, Marriott Hotels usedgamification as a recruitment tool.It launched the app My MarriottHotel on Facebook for motivatingpotential Gen Y hires to participatein managing a virtual hotelrestaurant. Players earned pointsfor happy customers, lost pointsfor poor service and won rewardswhen their operation turned aprofit. Players with high scoreswere considered for next levels ofthe recruitment process.15The concept of game mechanicsresonates with the motivationalrequirements of the Gen Yworkforce. Further, it also helpsaddress potential skill gaps inlarge-scale digital transformation,accelerates the pace of changeand shortens business cycles.In the next section, we discusssome of the common pitfalls ofenterprise gamification that firmsshould keep in mind.The Fogg BehaviorModel shows that threefactors need to bepresent simultaneouslyto design effectiveGamification –motivation, ability tocomplete a task and atimely trigger to act.7
  8. 8. Many firms are adoptinggamification due to the currenthype around it but mostimplementations lack thoroughplanning and understanding ofthe concept and its businessapplication. It is estimated thatby 2014, 80% of current gamifiedprojects will fail due to poordesign.16There are multiplechallenges in the implementationof Gamification. The mostcommon issue is low adoption ofthe gamified platform due to poorgame design and game fatigue.Excessive Focus onExtrinsic or IntrinsicMotivators Leads toSub-Optimal ResultsFlawed game design causes manygamification implementationsto fail. An excessive focus onextrinsic motivators (badges,points, or leader boards) ratherthan on more important intrinsicmotivators (status, sense ofachievement, and collaboration)results in poor game design.On the other hand, too muchfocus on intrinsic motivators,without any focus on rewards maynot motivate all employees andcan fail to achieve the intendedresults. Best results are seenwhen the game design efficientlybalances both- external andintrinsic motivators. For instance,a professional services firmin the US gamified its internalcommunication process to helpemployees learn the names andfaces of their 2,000 colleaguesacross the country. To encourageparticipation, a leaderboard wascreated, which failed to drawinterest from employees as peopledid not bother to check theirpersonal score. However, whenteams were created, it triggeredthe intrinsic human motivationalfactor of collaboration andparticipation increased from 5% to90%.17Inability to Sustain UserInterest Leads to GameFatigueA well-designed gamificationsystem aims to keep playersengaged without gettingprematurely bored (if too simple)or disillusioned (if too complex).User fatigue is a common issueassociated with long-term use ofgamification. Even with a well-According to Gartner,by 2014, 80% of currentgamified projects willfail due to poor design.What are the Common Pitfallsto Effective Gamification?designed gamified application, itis not easy to sustain user interestover prolonged periods. Gamesthat rely heavily on badges andpoints can lead to undesirableoutcomes such as “loyaltybacklash” or active disengagementwhen an employee realizes theirbehavior has been manipulatedwith no personal gain.Employees need to be constantlychallenged to remain motivated.Introduction of enterprisegamification should be precededby a clear long-term vision foremployee engagement. This visionshould be articulated clearly toensure clarity of objective aswell as drive participation fromemployees.8
  9. 9. What are the Key Success Factors forEnterprise Gamification?Enterprise gamification plays acrucial role in helping addressthe firm’s cultural and skill-basedgaps for a successful digitaltransformation. Based on ourexperience, there are six distinctkey success factors that determinethe adoption/failure of gamifiedprocesses (see Figure 4).Identify a clear goalGamification finds its applicationacross multiple business areas-engagement, compliance, andlearning. However, organizationsshould ideally pick only one goalat a time in order to achievebest results. Picking multiplefocus areas for application ofgamification dilutes the goal of agamified environment.Define the user groupupfrontUnderstanding the behavior ofthe people performing the task,their skill levels and abilities,their intrinsic and extrinsicmotivators and their triggers willaid in choosing the right gamemechanics and keeping the playersengaged. For instance, motivationand rewards for a group of seniorresearch scientists would typicallybe different from those of call-center employees.Set up internalcapabilities forgamificationGamification is more than justimplementing a digital tool.It is a capability that requiressignificant investment in people(game designers, developers, andchange managers), processes(methodology, performance) andtechnology (gaming platforms,analytics).18Firms need to planalong these aspects and evaluatewhich capabilities need to be builtin-house, which to partner for andidentify people to champion thegamification initiative internallyin order to effectively implementgamification.Figure 4: Key Success Factors for Enterprise GamificationSource: Capgemini Consulting AnalysisAdopt anIterative ApproachIdentifya Clear GoalDefinethe UserGroupProactivelyManageGameCompletionKeySuccessFactorsContinuouslyMeasureand AdjustSet up InternalCapabilities9
  10. 10. Continuously measureand adjustFirms need to put in placethe systems and processes tocapture and accurately interpretgamification data. Measuringoutput from gamified applicationsis an ongoing effort and isneeded to ensure continuedrelevance and to monitor andadjust gamification applications.Continuous measurement ofresults such as adoption rates,game abandonment stage,number of visits in a day, etc.provides insights into the efficacyof the gaming mechanics. Thisallows for real-time tweakingof gamification parameters(levels of complexity needed,collaboration, point systems, etc.)leading to higher success rates.This continuous measurementis also essential for periodicbenchmarking against predefinedperformance parameters andfor understanding ROI impact.Proactively managegame completionEach gamification initiative hasits own shelf life but eventuallyengagement of the user groupdeclines over time as “gamefatigue” sets in. Good gamemechanics design and continuousfeedback help determine theoptimal time for running theinitiative. Subsequently, thecompletion should be managedproactively and quickly to preventactive disengagement or “loyaltybacklash”.Adopt an iterativeapproach togamificationInitial failures in gamification areOK and should be embraced aslearning experiences. Gamificationis a complex area which needscustomized game mechanics basedon the goal and the user group. Itis usually not possible to achievethe desired results in a one-shotmanner, but requires an approachof constant feedback, adjustmentand learning. Development of aculture of testing and iterativelearning is key to the creation of adigitally-enabled enterprise.Enterprise gamification requiresthorough planning, considerableinvestment and managementcommitment. By alteringorganization culture, gamificationhas the potential to change theoverall employee experience.The scope of gamification, in anenterprise context, can indeedbe vast – from recruitment rightupto managing alumni networks.There are pitfalls to getting itright; however, the benefitsclearly outweigh implementationchallenges. We believe thatgamification and digitaltransformation are a winningcombination and firms cannotafford to ignore it.10
  11. 11. 1 Gamification Facts & Figures: www.enterprise-gamification.com2 Gartner, “Gartner Predicts Over 70 Percent of Global 2000 Organisations Will Have at Least One Gamified Application by2014”, Nov 20123 “Transform to the Power of Digital - Digital Transformation as a Driver of Corporate Performance”, CapgeminiConsulting, 20114 “Digital Transformation: A Roadmap for Billion-Dollar Organization”, Capgemini Consulting and MIT Center for DigitalBusiness, 20115 Gamification Facts & Figures: www.enterprise-gamification.com6 “The Role of Employee Engagement in the Return to Growth”, Businessweek7 Gamification Facts & Figures: www.enterprise-gamification.com8 Capgemini Consulting - MIT Center for Digital Business, “Digital Engagement”, 20139 “Video Games Can Be Highly Effective Training Tools, Study Shows: Employees Learn More, Forget Less, Master MoreSkills”, Science Daily, October 201010 Gamification Facts & Figures: www.enterprise-gamification.com11 “Gamification 101: The Psychology of Motivation”, Lithosphere, Science of Social Blog, March 201112 “Gamify Your Workplace, Increase Quality Hires”, Talent Tornado, Feb 201213 “Enterprise Gamification: The Gen Y Factor”, Bunchball Whitepaper, 201214 “Generation Y in the Workforce: Managerial Challenges”, Austin State University, USA, June 201015 “Gamification: Three Ways To Use Gaming For Recruiting, Training, and Health & Wellness”, Forbes, May 201216 Gartner press release, Nov 2012: Gamification Facts & Figures: www.enterprise-gamification.com18 Bala Iyer, “Understanding Gamification: From Commercial to Social”, Feb 2012References
  12. 12. Rightshore®is a trademark belonging to CapgeminiCapgeminiConsultingistheglobalstrategyandtransformationconsulting organization of the Capgemini Group, specializingin advising and supporting enterprises in significanttransformation,frominnovativestrategytoexecutionandwithan unstinting focus on results. With the new digital economycreating significant disruptions and opportunities, our globalteam of over 3,600 talented individuals work with leadingcompaniesandgovernmentstomasterDigitalTransformation,drawing on our understanding of the digital economy andour leadership in business transformation and organizationalchange.Find out more at: around 120,000 people in 40 countries, Capgemini is oneof the world’s foremost providers of consulting, technologyand outsourcing services. The Group reported 2011 globalrevenuesofEUR9.7billion.Togetherwithitsclients,Capgeminicreates and delivers business and technology solutions thatfit their needs and drive the results they want. A deeplymulticultural organization, Capgemini has developed its ownway of working, the Collaborative Business ExperienceTM, anddraws on Rightshore®, its worldwide delivery model.Learn more about usat CapgeminiCapgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary.© 2013 Capgemini. All rights reserved.AuthorsMaggie BuggieVice President and Head ofDigital Transformation Sales, UKmaggie.buggie@capgemini.comTwitter: @maggiebuggiePramod AppukuttanManaging Consultant, DigitalTransformation & Business Analyticspramod.appukuttan@capgemini.comDigital Transformation Research Mistryshiela.mistry@capgemini.comAustriaIngrid Berndtiberndt@capgemini.comBelgiumPeter Speleerspeter.speleers@capgemini.comUKMaggie Buggiemaggie.buggie@capgemini.comChinaJulien Bourdinierejulien.bourdiniere@capgemini.comUSBarbara Spitzerbarbara.spitzer@capgemini.comFinlandMarkus Kärkimarkus.karki@capgemini.comFranceStephan Paolinistephan.paolini@capgemini.comGermanyStephan Wienekestephan.wieneke@capgemini.comImke Keicherimke.keicher@capgemini.comNetherlandJan Brouwerjan.brouwer@capgemini.comNorwayLars Fosslilars.fossli@capgemini.comPortugalVanessa Loureirovanessa.loureiro@capgemini.comFor more information contactJerome Buvat, Swati Nigam, Manik Seth and Subrahmanyam KVJ from the Digital Transformation Research Institute workedon this paper.The authors would also like to acknowledge the contributions of Dan Truman and Michael Welch.