Reshaping Business Organizations Through Gamification

Reshaping Business Organizations Through Gamification

Sukhvinder Singh (Maharaja Agrasen Institute of Technology, GGS Indrapratha University, India) and Vandana Gupta (Amity University, Noida, India)
DOI: 10.4018/978-1-7998-0131-3.ch002

Abstract

Gamification is the application of game-design elements, mechanisms, and principles in non-game contexts, typically as an online marketing technique to encourage engagement with a product or service, improve organizational productivity, crowdsourcing, learning, and employee recruitment. The global gamification market was valued at USD 2.17 billion in 2017, and is expected to reach USD 19.39 billion by 2023, at a CAGR of 44.06% over the forecast period (2018-2023). The growth of smartphone and smart devices have attributed towards the growth of a vast base of gamification market. This growth is also supplemented by the increasing recognition of gamification systems as a method to architecture human behavior to induce innovation, productivity, or engagement. This chapter explains the role of gamification in reshaping business organizations with reference to select cases on gamification used by corporates for promotion, active customer and employee engagement, and brand loyalty.
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Literature Review

The term Gamification was initially coined by Nick Pelling in 2002. Gamification is essentially the implementation of game design techniques and elements into non-game contexts and activities (Deterding, Dixon, Khaled, & Nacke, 2011; Zichermann & Cunningham, 2011).

‘Gamification’, has become today's latest business buzzword and is rapidly gaining attention. However, the concept of using gamified elements to drive engagement, interest, and learning, dates back to almost a century ago. In one of the first evidence of gamification, Kellogg's cereals, in 1910, offered its first “premium,” Moving-Pictures book, free with every two boxes, to increase sales.

In 1959, a garment factory in Chicago introduced a daily ritual game in which workers steal a banana to stave off boredom and monotony. Games are believed to elevate satisfaction and productivity, inspiring research into this field. In the 1980s, professors at the Massachusetts Institute of Technology began considering the possibility of using gamified elements in the field of education.

In 2011, Volkswagen divulged a gamified campaign of crowdsourcing in China, where consumers were invited to design vehicles and rate other entries, online, results being tracked on leaderboards. (McCormick, 2013). Zickermann (2010) explored that the educational games industry has released various attractive and successful games. He also said that very few games in the past have been proved to be successful. McGonigal (2011) supported the Zickermann’s statements and further explained that educational games or game-based learning is short-lived and thus do not meet the needs of today’s customer. He also argued that educational games are not making significant and long term association with the customers.

The Gamification technique has worked its way into various industries. The purpose of converting gamification into competitive games fulfills multiple training needs. (Millet, 2017).

Key Terms in this Chapter

Gamification: The use of game-thinking and game mechanics to engage users and solve problems, it involves the use of game elements and game design techniques in non-game contexts. The motivations to use gamification may include extrinsic motives (tangible intangible rewards), intrinsic motives (status, achievements, self-expression, and competition) and so on.

Learning: Is a holistic and circular process, which includes experiencing, reflecting, thinking, and acting accordingly.

Internal Gamification: The use of “gamification to improve productivity within the organization in order to foster innovation, enhance camaraderie, or otherwise derive positive business results through their own employees.

External Gamification: The use of gamification involving customers as a “way to improve the relationships between businesses and customers, producing increased engagement, identification with the product, stronger loyalty, and ultimately higher revenues.

Human Resource Management (HRM): Is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

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