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FOR
                               THE
                               WIN
    Kevin Werbach
    The Wharton School
werbach@wharton.upenn.edu   What Businesses are
                             Learning from the

    Penn Homecoming
                              World of Games
      November 2011
A Famous Growth Story

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?
A Famous Growth Story

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
A Famous Games Story

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
A Contemporary Growth Story
Growth




Zero to 100 million users in   41 days
Growth




             http://blogs.wsj.com/venturecapital/2011/02/26/facebook-groupon-zynga-off-the-chart-revenue/




“Zynga’s profit was also about $400
million in 2010, only its third full year.”
(aka “WoW”)
     Massively Multiplayer Online Game
11+ million players; >$1 billion annual revenue
how?
first,
let’s play
 a game
Look in your wallet or purse.

Pull out the oldest coin (just one).
Who thinks they have
                          the oldest coin in the room
                               (raise your hand)?



http://www.flickr.com/photos/uhuru1701/2247520563
Winner!
GAME 2:

   With your teammates,
make exactly 200 using either
  the denominations or the
 last two digits of the date.
Which was a better game?
What made the games fun
       (or not)?
Why is this Girl so Excited?
fun
games are   fun
digital games
are designed to be   fun
designed to be   fun
designed to be   fun
designed to be   fun
designed to be   fun
growth of
digital games
in the beginning…




                    …AKA 1972
And, the most successful video game of all time…
Windows Solitaire:
9 billion hours in 2003
Today
Games Today
…and mobile, too
…and social, too




…and casual.
Digital Allows Feedback Loops
   “So we put it in a feature we
    can build in a week – it’s a
   ghetto build we AB test it, we
 flow test it, we put it out to one
     percent. We built a data
     warehouse with a testing
    platform so we’re running
   several hundred tests at any
 given time for every one of our
 games. And no single user has
       more than one test.”                                        Mark Pincus
                                                                   Founder & CEO, Zynga
     http://grattisfaction.com/2010/01/                            Wharton alumnus
     how-zynga-does-customer-development-minimum-viable-product/
Put it Together = Monster Growth




  Zero to 100 million users in   41 days
Overall Games Market




                   Source: Digi-Capital
Games are 21st Century Media




In 2011, the games industry will generate
double Hollywood box office revenues.
Games are 21st Century Media




  97% of kids 12-17 play
  videogames (Pew 2008)
lessons
(for business)?
Games for Business
designed to be   fun
what else
might be
designed to be   fun ?
gamification
“Suddenly, gamification is the
hot new business concept, with
many of the world’s most
admired companies signing on.”
- Alex Konrad, Fortune, Oct. 17, 2011
Gamification is…



The use of game elements
and game design techniques
in non-game contexts.
3
keys
points


design
            interest curves
                competition
                   narrative
                 challenges
              appointments
                   rankings
                    surprise
             customization
                      quests
             achievements
                     avatars
                 collections
         social experiences
                        etc.
analytics
      “So we put it in a feature we
       can build in a week – it’s a
      ghetto build we AB test it, we
    flow test it, we put it out to one
        percent. We built a data
        warehouse with a testing
       platform so we’re running
      several hundred tests at any
    given time for every one of our
    games. And no single user has
          more than one test.”
http://grattisfaction.com/2010/01/how-zynga-does-customer-development-minimum-viable-product/
motivation
• competence (mastery)
• autonomy (meaningful choices)
• relatedness (social, purpose)

= Intrinsic engagement




                                  Source: http://www.despair.com/motivation.html
http://www.gamifyforthewin.com
   Twitter: @gamifyforthewin
let’s have
  some fun!




http://www.gamifyforthewin.com
   Twitter: @gamifyforthewin
                                 werbach@wharton.upenn.edu

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For the Win: What Businesses are Learning from the World of Games

  • 1. FOR THE WIN Kevin Werbach The Wharton School werbach@wharton.upenn.edu What Businesses are Learning from the Penn Homecoming World of Games November 2011
  • 2. A Famous Growth Story 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?
  • 3. A Famous Growth Story 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
  • 4. A Famous Games Story 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
  • 6. Growth Zero to 100 million users in 41 days
  • 7. Growth http://blogs.wsj.com/venturecapital/2011/02/26/facebook-groupon-zynga-off-the-chart-revenue/ “Zynga’s profit was also about $400 million in 2010, only its third full year.”
  • 8. (aka “WoW”) Massively Multiplayer Online Game 11+ million players; >$1 billion annual revenue
  • 11. Look in your wallet or purse. Pull out the oldest coin (just one).
  • 12. Who thinks they have the oldest coin in the room (raise your hand)? http://www.flickr.com/photos/uhuru1701/2247520563
  • 14. GAME 2: With your teammates, make exactly 200 using either the denominations or the last two digits of the date.
  • 15. Which was a better game? What made the games fun (or not)?
  • 16. Why is this Girl so Excited?
  • 17. fun
  • 18. games are fun
  • 25. in the beginning… …AKA 1972
  • 26.
  • 27.
  • 28. And, the most successful video game of all time…
  • 30. Today
  • 34. Digital Allows Feedback Loops “So we put it in a feature we can build in a week – it’s a ghetto build we AB test it, we flow test it, we put it out to one percent. We built a data warehouse with a testing platform so we’re running several hundred tests at any given time for every one of our games. And no single user has more than one test.” Mark Pincus Founder & CEO, Zynga http://grattisfaction.com/2010/01/ Wharton alumnus how-zynga-does-customer-development-minimum-viable-product/
  • 35. Put it Together = Monster Growth Zero to 100 million users in 41 days
  • 36. Overall Games Market Source: Digi-Capital
  • 37. Games are 21st Century Media In 2011, the games industry will generate double Hollywood box office revenues.
  • 38. Games are 21st Century Media 97% of kids 12-17 play videogames (Pew 2008)
  • 44. “Suddenly, gamification is the hot new business concept, with many of the world’s most admired companies signing on.” - Alex Konrad, Fortune, Oct. 17, 2011
  • 45. Gamification is… The use of game elements and game design techniques in non-game contexts.
  • 46.
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  • 56. points design interest curves competition narrative challenges appointments rankings surprise customization quests achievements avatars collections social experiences etc.
  • 57. analytics “So we put it in a feature we can build in a week – it’s a ghetto build we AB test it, we flow test it, we put it out to one percent. We built a data warehouse with a testing platform so we’re running several hundred tests at any given time for every one of our games. And no single user has more than one test.” http://grattisfaction.com/2010/01/how-zynga-does-customer-development-minimum-viable-product/
  • 58. motivation • competence (mastery) • autonomy (meaningful choices) • relatedness (social, purpose) = Intrinsic engagement Source: http://www.despair.com/motivation.html
  • 59. http://www.gamifyforthewin.com Twitter: @gamifyforthewin
  • 60. let’s have some fun! http://www.gamifyforthewin.com Twitter: @gamifyforthewin werbach@wharton.upenn.edu