Flashcards in Lecture #4 Network Effects & Gamification Deck (17):
What is MCD core competency
What should incentives support
What does gamification provide an incentive for?
customer action or retention or loyalty
Good gamification does not start with game elements but starts with our...
What are exapmles of core drives
meaning, accomplishment, ownership, scarcity, avoidance, unpredictability, social influence, empowerment
Diff games appeal to diff core drives
What are the 5 steps in developing a gamification strategy?
1 use bus metrics to define the objective 2 define users/players 3 define desired actions and the winstate 4 define feedback trigggers 5 define incentives/drives
What is Metcalf's law
it says that the value of a network grows with the square of its users
What are complementary benefits
a characteristic of network effects that says that related products add value to a base product by adding complemtary benefits ( games for XBOX)
What is Exchange value
a tyope fo network effecgt that refcers to the amount of people yiu can interact with while using it (ex World of Warcraft)
What are congestion effects
negative network effects that occur when too many users bottlneck a resouce and crash it or increase waittimes
Whatare one sided markets and two sided markets
one sided- derive most of value from one class of users (email)
2 sided- two classes of users create value (ex:ebay, Xboxplayers and gamedevelopers)
also there are same side and cross sided benefits
What is a tipping point & what do they cause
a point where the network effects crown a winner in a market, cause a mad dash at the beginning to caputre market share
How do you make sure that you are the person that reached the tipping point first and wins?
Subsidize Adoption (Google subsidized andriod app dev & MSFT Biz spark)
MAke product alliances
Open vs closed/propreitary pros & cons
proprietrary insures total control, but restricts ownership, open standards allow for more user base expansion
What are the 3 sources of value for network effects
exchange value, staying power(switchingcosts) compleentary benefits
Why are network effects not bad for innovation?
encourages developmetn within the standard and allows for a degree of consistency for sharing and cooperation