Let the games begin using game mechanics to drive digital transformation capgemini consulting - digital transformation

Let the Games Begin
Using Game Mechanics to Drive Digital Transformation

Why Gamification Matters Now?
55% of companies
surveyed cited company
culture, particularly
employee resistance
to job changes, to be a
major hurdle to digital
transformation.
A US insurance giant was
struggling with inefficient
claims processing leading to
long turnaround times for its
customers. It wanted to streamline
its complex processes and used a
gamified social innovation tool to
draw ideas from its employees.
The initiative saw self-driven
participation without any attached
reward component. The chance
to collaborate on simplifying
their workflow was the primary
driving factor for the participants.
The activity resulted in a new,
simplified process, which saved
the company $18 million a
year and increased worker
satisfaction.1
Over-hyped or duly justified,
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, world over.
Enterprise gamification is expected
to exponentially increase over the
next couple of years. Research
indicates that by 2015, more than
40% of global 2000 organizations
will have at least one application
where gamification will be used.2
Gamification is an
Enabler for Digital
Transformation
While organizations have ramped
up their investments in digital
tools and technologies, two-thirds
of digital transformation projects
fail mainly due to workforce
behavioral issues.3 Our latest
research with the MIT Center for
Digital Business indicates that
55% of companies surveyed cited
company culture, particularly
employee resistance to job
changes, to be a major hurdle to
digital transformation (see Figure
1).4 We believe that enterprise
gamification, when designed and
implemented effectively, can help
accelerate digital transformation
by driving employee engagement
and supporting change
management.
In this paper, we explore the
building blocks of successful
gamification and provide an
outline for how organizations
should approach gamification
as part of their digital
transformation.a
Figure 1: Execution Challenges in Digital Transformation
Note: Percentage of firms encountering gaps in skills, IT or culture as mentioned by their
executives. Some firms are encountering more than one gap.
Source: “Digital Transformation: A Roadmap for Billion Dollar Organizations”, Capgemini
Consulting and MIT Center for Digital Business, 2011
77%
55%
50%
Missing Skills
Culture Issues
Ineffective IT
a Scope of this paper is limited to addressing the application of gamification for employee engagement; customer engagement is not
covered in this paper.
2

Gamification Helps Overcome Key Digital
Transformation Hurdles
Enterprise gamification drives
positive outcomes in five
key business areas: change
management, employee
engagement, employee training
and learning, innovation and
process efficiency (see Figure 2).
Gamification
Accelerates Change
Management
Gamification mimics elements
of real-world business situations
and makes it more engaging by
giving real-time feedback and
awards which help employees
nimbly adapt to new processes,
systems and business models.
Higher employee engagement
in game-like settings leads to
lower resistance to change which
helps in accelerating digital
transformation.
For instance, after installing a
new event logging system for its
salespeople, a mid-sized firm saw
very poor adoption rates from its
employees since the team was
comfortable with the old system.
In order to increase adoption, the
company ran a week-long sales
competition where every event
logged would get a point and the
employee with the highest points
would get a $100 gift certificate to
a local restaurant. During the week
of the contest, the number of
events logged shot up over 750%
and four weeks after the contest
was over, the number of events
logged per week held steady at
around 6x of earlier values due
to effective behavioural change
of the salespeople – a significant
increase from the pre-contest
results.5
Gamifying Processes
Helps Drive Employee
Engagement and
Compliance
Engaged employees often show
higher productivity and are
likely to be more loyal to the
organization. Research reveals
that engaged employees put forth
57% more effort and are 87%
less likely to leave their company
than employees who consider
themselves disengaged.6 Clear
rules of engagement, short-term
achievable goals, accelerated
feedback cycles and recognition of
accomplishments in gamification
helps drive employee engagement
and motivation. This leads
to successful transformation
By 2015, 40% of global
1000 organizations will
use gamification as the
primary mechanism
to transform business
operations.
Gamified processes
at LiveOps Inc.’s call
centers reduced call
times by 15% and
improved sales by 12%.
programs and quantifiable
business benefits.
LiveOps Inc., which runs virtual
call centers, offers a good example
of using gamification to drive
engagement and compliance.
The company gamified its
processes by converting them
into a competition, in order to
help improve the performance
of its 20,000 call agents. It began
awarding agents with virtual
badges and points for tasks such
as keeping calls brief and closing
sales. Leaderboards allowed
the agents to compare their
achievements with their peers.
Such gamified processes reduced
call times by 15% and improved
sales by 12%.7
Figure 2: Business Impact of Enterprise Gamification
Source: Capgemini Consulting Analysis
Enterprise
Gamification
Change
Management
Employee
Training and
Learning
Innovation
Process
Efficiency
Employee
Engagement
3

People trained on
virtual games retain
more facts, attain
higher skill levels and
retain information
longer.
Gamification Speeds up
Employee Training and
Learning
Lack of requisite skills can be a
significant impediment to digital
transformation.8 Many firms have
launched digital training programs
to bridge this gap; for instance,
Intel launched “iQ”, an employee-curated
social media and learning
platform. Gamifying digital training
programs accelerates the learning
Gamification of the
On-Boarding Process at InMobi
During 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 such
as 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 orientation
as an online social game. The new hires learnt about different aspects of the company through a gamified
experience 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.
4
process. This is especially true for
the technology-savvy Generation
Y (Gen Y) workforce, which
struggles to sit through lengthy,
non-interactive presentations. A
recent study found that trainees
using video games had 11% higher
factual knowledge levels, 14%
higher skill-based knowledge
levels and 9% higher retention
rates compared to trainees within
a passive learning environment.9

5
Research predicts that
by 2015, more than
50% of organizations
will gamify their
innovation processes.
Gamification Drives the
Pace of Innovation
Gamification helps create
an environment that
facilitates creativity, fosters
peer collaboration in a fun,
competitive environment and
moves innovation out of a siloed
structure. Innovation games are
useful for problem solving and
in shortening “time to revenue”
through their ability to leverage
crowd-sourcing. Crowd-sourcing
new ideas through competition
and reward-based systems are all
applications of game mechanics
and are already popular across
organizations (see insert on UK
DWP).
Gamification Driving Innovation at the
UK Department for Work and Pensions
The UK Department for Work and Pensions (DWP) created a market game called “Idea Street” to decentralize
its 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 earned
points but also rank and social status within the community. Within the first 12 months, this exercise generated
1,400 ideas, 63 of which went forward for implementation. The employees thrived on the challenge of finding new
solutions 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 2011
Gamification Improves
Process Efficiency
Process redesign, digitization and
streamlining play a critical role in
an organization’s cost reduction
strategy. Gamification helps
drive these elements forward.
For instance, Google reduced its
travel expenditure by using game
mechanics. Employees were
given the option of saving the per
diem amount provided for their
business trips and using it towards
another trip (which would have
had no budget) or upgrade to a
higher class or cash out a part of
it. The initiative proved successful,
resulting in over 90% compliance
with the process.10
In the next section, we dig deeper
into the psychological aspect of
gamification and what makes it
successful.

Up until the recent past, enterprise
gamification was perceived
as an experimental activity.
Gamification today however, has
moved mainstream, as a result of
increased research and enhanced
understanding, thereby making
it better suited for enterprise
application. Another key factor in
its growing popularity is the rise
of the Gen Y demographic in the
workforce and their affinity to
game-like environments.
Gamification Masks a
Science beneath Badges
and Awards
Social games create an
environment that is inherently
engaging and competitive. Gaming
mechanics incentivize humans
through intrinsic motivators such
as status, sense of achievement,
sense of pride and through
external motivators such as
financial rewards, badges and
promotions.
B.J. Fogg, an experimental
psychologist at Stanford University,
USA developed the Fogg Behavior
Model (FBM), in 2009, which
shows that three factors need to
be present to influence human
behavior: motivation, ability and
trigger (see Figure 3).
Why Gamification Works
Figure 3: Science of Gamification - The Fogg Behavior Model
Source: Lithosphere, Science of Social Blog – “Gamification 101: The Psychology of Motivation”
Willingness to participate
Desire to engage - personal interest
Perceived value of potential outcome
Reflects individual’s skill, time and
mental capacity to perform task
Trigger to prompt target behavior
It can be either explicit (directing
the user to take action) or experiential
MOTIVATION
TRIGGER ABITLITY
GAMIFICATION
6

Gamification simultaneously utilizes all the three factors stated in Fogg’s behavior model, which positively influences human behavior and results in a successful gaming system.11 For instance, Target Corporation, a US-based retail giant, gamified its cashier checkout system (trigger) for driving behavioral change and process efficiency. Employees were scored based on the transaction’s speed and accuracy (ability). A feedback mechanism using visual and audio cues was built into the system as a way to create positive reinforcement (motivation). This resulted in increased job performance, reduced checkout times, and improved employee morale.12 Most enterprise gamification tools leverage Fogg’s three factors simultaneously in such a way that once connections are made with the players, the tools sustain these interactions, thereby promoting an environment that is both enjoyable and productive.
Most enterprise gamification tools leverage Fogg’s three factors simultaneously in such a way that once connections are made with the players, the tools sustain these interactions, thereby promoting an environment that is both enjoyable and productive.
Gamification Appeals to the Growing Younger Demographic in the Workforce
Research indicates that Gen Y represents 25% of the current global workforce and their numbers are growing rapidly.13 A recent survey indicated that Gen Y employees expect their jobs to be social and fun, with clear goals to succeed, and which provide personal satisfaction. They want regular feedback on their performance and recognition for their work.14
Gamification creates new methods to reach out to the specific requirements of Gen Y employees. For instance, global hospitality major, Marriott Hotels used gamification as a recruitment tool. It launched the app My Marriott Hotel on Facebook for motivating potential Gen Y hires to participate in managing a virtual hotel restaurant. Players earned points for happy customers, lost points for poor service and won rewards when their operation turned a profit. Players with high scores were considered for next levels of the recruitment process.15
The concept of game mechanics resonates with the motivational requirements of the Gen Y workforce. Further, it also helps address potential skill gaps in large-scale digital transformation, accelerates the pace of change and shortens business cycles. In the next section, we discuss some of the common pitfalls of enterprise gamification that firms should keep in mind.
The Fogg Behavior Model shows that three factors need to be present simultaneously to design effective Gamification – motivation, ability to complete a task and a timely trigger to act.
7

Many firms are adopting
gamification due to the current
hype around it but most
implementations lack thorough
planning and understanding of
the concept and its business
application. It is estimated that
by 2014, 80% of current gamified
projects will fail due to poor
design.16 There are multiple
challenges in the implementation
of Gamification. The most
common issue is low adoption of
the gamified platform due to poor
game design and game fatigue.
Excessive Focus on
Extrinsic or Intrinsic
Motivators Leads to
Sub-Optimal Results
Flawed game design causes many
gamification implementations
to fail. An excessive focus on
extrinsic motivators (badges,
points, or leader boards) rather
than on more important intrinsic
motivators (status, sense of
achievement, and collaboration)
results in poor game design.
On the other hand, too much
focus on intrinsic motivators,
without any focus on rewards may
not motivate all employees and
can fail to achieve the intended
results. Best results are seen
when the game design efficiently
balances both- external and
intrinsic motivators. For instance,
a professional services firm
in the US gamified its internal
communication process to help
employees learn the names and
faces of their 2,000 colleagues
across the country. To encourage
participation, a leaderboard was
created, which failed to draw
interest from employees as people
did not bother to check their
personal score. However, when
teams were created, it triggered
the intrinsic human motivational
factor of collaboration and
participation increased from 5% to
90%.17
Inability to Sustain User
Interest Leads to Game
Fatigue
A well-designed gamification
system aims to keep players
engaged without getting
prematurely bored (if too simple)
or disillusioned (if too complex).
User fatigue is a common issue
associated with long-term use of
gamification. Even with a well-
According to Gartner,
by 2014, 80% of current
gamified projects will
fail due to poor design.
What are the Common Pitfalls
to Effective Gamification?
designed gamified application, it
is not easy to sustain user interest
over prolonged periods. Games
that rely heavily on badges and
points can lead to undesirable
outcomes such as “loyalty
backlash” or active disengagement
when an employee realizes their
behavior has been manipulated
with no personal gain.
Employees need to be constantly
challenged to remain motivated.
Introduction of enterprise
gamification should be preceded
by a clear long-term vision for
employee engagement. This vision
should be articulated clearly to
ensure clarity of objective as
well as drive participation from
employees.
8

What are the Key Success Factors for
Enterprise Gamification?
Enterprise gamification plays a
crucial role in helping address
the firm’s cultural and skill-based
gaps for a successful digital
transformation. Based on our
experience, there are six distinct
key success factors that determine
the adoption/failure of gamified
processes (see Figure 4).
Identify a clear goal
Gamification finds its application
across multiple business areas-engagement,
compliance, and
learning. However, organizations
should ideally pick only one goal
at a time in order to achieve
best results. Picking multiple
focus areas for application of
gamification dilutes the goal of a
gamified environment.
Define the user group
upfront
Understanding the behavior of
the people performing the task,
their skill levels and abilities,
their intrinsic and extrinsic
motivators and their triggers will
aid in choosing the right game
mechanics and keeping the players
engaged. For instance, motivation
and rewards for a group of senior
research scientists would typically
be different from those of call-center
employees.
Set up internal
capabilities for
gamification
Gamification is more than just
implementing a digital tool.
It is a capability that requires
significant investment in people
(game designers, developers, and
change managers), processes
(methodology, performance) and
technology (gaming platforms,
analytics).18 Firms need to plan
along these aspects and evaluate
which capabilities need to be built
in-house, which to partner for and
identify people to champion the
gamification initiative internally
in order to effectively implement
gamification.
Figure 4: Key Success Factors for Enterprise Gamification
Source: Capgemini Consulting Analysis
Adopt an
Iterative Approach
Identify
a Clear Goal
Define
the User
Group
Proactively
Manage
Game
Completion
Key
Success
Factors
Continuously
Measure
and Adjust
Set up Internal
Capabilities
9

Continuously measure
and adjust
Firms need to put in place
the systems and processes to
capture and accurately interpret
gamification data. Measuring
output from gamified applications
is an ongoing effort and is
needed to ensure continued
relevance and to monitor and
adjust gamification applications.
Continuous measurement of
results such as adoption rates,
game abandonment stage,
number of visits in a day, etc.
provides insights into the efficacy
of the gaming mechanics. This
allows for real-time tweaking
of gamification parameters
(levels of complexity needed,
collaboration, point systems, etc.)
leading to higher success rates.
This continuous measurement
is also essential for periodic
benchmarking against predefined
performance parameters and
for understanding ROI impact.
Proactively manage
game completion
Each gamification initiative has
its own shelf life but eventually
engagement of the user group
declines over time as “game
fatigue” sets in. Good game
mechanics design and continuous
feedback help determine the
optimal time for running the
initiative. Subsequently, the
completion should be managed
proactively and quickly to prevent
active disengagement or “loyalty
backlash”.
Adopt an iterative
approach to
gamification
Initial failures in gamification are
OK and should be embraced as
learning experiences. Gamification
is a complex area which needs
customized game mechanics based
on the goal and the user group. It
is usually not possible to achieve
the desired results in a one-shot
manner, but requires an approach
of constant feedback, adjustment
and learning. Development of a
culture of testing and iterative
learning is key to the creation of a
digitally-enabled enterprise.
Enterprise gamification requires
thorough planning, considerable
investment and management
commitment. By altering
organization culture, gamification
has the potential to change the
overall employee experience.
The scope of gamification, in an
enterprise context, can indeed
be vast – from recruitment right
upto managing alumni networks.
There are pitfalls to getting it
right; however, the benefits
clearly outweigh implementation
challenges. We believe that
gamification and digital
transformation are a winning
combination and firms cannot
afford to ignore it.
10

1 Gamification Facts & Figures: www.enterprise-gamification.com
2 Gartner, “Gartner Predicts Over 70 Percent of Global 2000 Organisations Will Have at Least One Gamified Application by 2014”, Nov 2012
3 “Transform to the Power of Digital - Digital Transformation as a Driver of Corporate Performance”, Capgemini Consulting, 2011
4 “Digital Transformation: A Roadmap for Billion-Dollar Organization”, Capgemini Consulting and MIT Center for Digital Business, 2011
6 “The Role of Employee Engagement in the Return to Growth”, Businessweek
8 Capgemini Consulting - MIT Center for Digital Business, “Digital Engagement”, 2013
9 “Video Games Can Be Highly Effective Training Tools, Study Shows: Employees Learn More, Forget Less, Master More Skills”, Science Daily, October 2010
11 “Gamification 101: The Psychology of Motivation”, Lithosphere, Science of Social Blog, March 2011
12 “Gamify Your Workplace, Increase Quality Hires”, Talent Tornado, Feb 2012
13 “Enterprise Gamification: The Gen Y Factor”, Bunchball Whitepaper, 2012
14 “Generation Y in the Workforce: Managerial Challenges”, Austin State University, USA, June 2010
15 “Gamification: Three Ways To Use Gaming For Recruiting, Training, and Health & Wellness”, Forbes, May 2012
16 Gartner press release, Nov 2012: http://www.gartner.com/it/page.jsp?id=2251015
18 Bala Iyer, “Understanding Gamification: From Commercial to Social”, Feb 2012
References

Rightshore® is a trademark belonging to Capgemini
Capgemini Consulting is the global strategy and transformation
consulting organization of the Capgemini Group, specializing
in advising and supporting enterprises in significant
transformation, from innovative strategy to execution and with
an unstinting focus on results. With the new digital economy
creating significant disruptions and opportunities, our global
team of over 3,600 talented individuals work with leading
companies and governments to master Digital Transformation,
drawing on our understanding of the digital economy and
our leadership in business transformation and organizational
change.
Find out more at:
http://www.capgemini-consulting.com/
With around 120,000 people in 40 countries, Capgemini is one
of the world’s foremost providers of consulting, technology
and outsourcing services. The Group reported 2011 global
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creates and delivers business and technology solutions that
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Learn more about us
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About Capgemini
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Authors
Maggie Buggie
Vice President and Head of
Digital Transformation Sales, UK
maggie.buggie@capgemini.com
Twitter: @maggiebuggie
Pramod Appukuttan
Managing Consultant, Digital
Transformation & Business Analytics
pramod.appukuttan@capgemini.com
Digital Transformation Research Institute
dtri.in@capgemini.com
Australia
Sheila Mistry
shiela.mistry@capgemini.com
Austria
Ingrid Berndt
iberndt@capgemini.com
Belgium
Peter Speleers
peter.speleers@capgemini.com
UK
Maggie Buggie
maggie.buggie@capgemini.com
China
Julien Bourdiniere
julien.bourdiniere@capgemini.com
US
Barbara Spitzer
barbara.spitzer@capgemini.com
Finland
Markus Kärki
markus.karki@capgemini.com
France
Stephan Paolini
stephan.paolini@capgemini.com
Germany
Stephan Wieneke
stephan.wieneke@capgemini.com
Imke Keicher
imke.keicher@capgemini.com
Netherland
Jan Brouwer
jan.brouwer@capgemini.com
Norway
Lars Fossli
lars.fossli@capgemini.com
Portugal
Vanessa Loureiro
vanessa.loureiro@capgemini.com
For more information contact
Jerome Buvat, Swati Nigam, Manik Seth and Subrahmanyam KVJ from the Digital Transformation Research Institute worked
on this paper.
The authors would also like to acknowledge the contributions of Dan Truman and Michael Welch.

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