How Game Thinking Can Revolutionize Your Business

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Presentation on gamification to Wharton's Lifelong Learning session for alumni, September 2012

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  • And now there is Coursera training available with this topic! Thanks for hearing thoughts Professor and may the Gamification Force be with you=)
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  • Dear Professor Werbach! Oneday It would be an honor for me to listen to your lecture or become a student of yours! Becuse these ideas you share, will for sure change our 21st century world! There was a slide (based on Gartner reearch) that showed that closer to 2015 there will 50% of organisations that will somehow use this, so the new market will appear. I think it happened and will grow even more rapidly next years!
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  • That is really a great presentation!
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  • You are indeed a true prof!
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  • 30 million angry birds players per day, 300 million total downloads
  • 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.
  • 30 million angry birds players per day, 300 million total downloads
  • 30 million angry birds players per day, 300 million total downloads
  • 2 billion hours per month on Xbox Live.
  • 9 billion hours in 2003
  • Consumers aren’t motivated either, and things like exercise.
  • WoW at it’s peak had over 12 million paying players. Close to a $2 billion annual business
  • so if games are hugely popular, and they create their own meaning, how could we leverage them.
  • 1 hour of coding. 20% increase in profile length.
  • 1 hour of coding. 20% increase in profile length.
  • Advergames are one example. But they are just games, not integrated with the brand. Can we do more than that.
  • After all, video gamesare a $70 billion global industry that is 40 years old
  • Average profit margin is 3%Reduced turnover of staff
  • Because of the power of games.
  • I’ve got some answers to that, but first, let’s play a game.
  • 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?
  • So I began to study application of game design to business, held first ever symposium, first ever course,
  • The inventor of the game of chess was asked by the emperor what reward he wanted. Ask people how many grains there will be?
  • 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…
  • How Game Thinking Can Revolutionize Your Business

    1. GAMIFICATION HOW GAME THINKING CANREVOLUTIONIZE YOUR BUSINESS Prof. Kevin Werbach Email: werbach@wharton.upenn.edu / |Twitter: @kwerb Wharton Lifelong Learning, September 2012KNOWLEDGE FOR ACTION
    2. When I say the word GAMESwhat do you think of? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    3. GamesKNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    4. GamesKNOWLEDGE 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.jpgKNOWLEDGE 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 billionKNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    12. 2 billionKNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    13. 9 billionKNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    14. 70%of employeesare not fullymotivated KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 14
    15. fully motivatedKNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 15
    16. Real World Activity Game ConceptMonthly sales competition ChallengeFrequent flyer program tiers LevelsWeight Watchers group TeamGrades ScoresAssignments QuestsFree coffee after 10 purchases at Starbucks RewardAmerican Express Platinum Card BadgeKNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    17. KNOWLEDGE FOR ACTION
    18. what can welearn fromgamesto 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
    21. GAMIFICATIONKNOWLEDGE FOR ACTION
    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 manageinnovation 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 QuestsAvatars Social Graph BadgesKNOWLEDGE 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 modelingdesign 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 financeKNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    32. Marketers Get Psyched Avatars Points Rewards BadgesChallenges 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 GAMEKNOWLEDGE 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 TheoryCompetence 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. gamesare 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 from151 countriescan’t be wrong…can they? https://www.coursera.org/course/gamification KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach 53
    54. ONE FINAL STORYKNOWLEDGE FOR ACTION
    55. Place a single grain of rice onthe first square of a chessboard.Double the amount on eachsubsequent square.How many grains in total atthe end of the board? KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    56. Place a single grain of rice onthe first square of a chessboard.Double the amount on eachsubsequent square.How many grains in total atthe end of the board? 18,446,744,073,709,551,615 KNOWLEDGE FOR ACTION Gamification / Prof. Kevin Werbach
    57. thank you! Prof. Kevin Werbachwerbach@wharton.upenn.edu Twitter: @kwerb Available October 30 http://wdp.wharton.upenn.edu/books/ KNOWLEDGE FOR ACTION
    58. Q&AKNOWLEDGE FOR ACTION

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