SmartWinnr Entry Strategy

for the United States

Sam Kraus
Jia Song
Sheldon Ballom
Cole Enmon
Ruoyi Wang
The Current Market of Gamification Sales Platform

As Karl Kapp, professor of Instructional Technology at Bloomsburg University, puts it,

"Gamification is using game-based mechanics, aesthetics and game thinking to engage people,
motivate action, promote learning, and solve problems". Following this definition, the idea
behind gamification in the workplace is not playing games at work but taking useful elements
from games to get desired results from your clients and employees (Tal Valler, n.d.).

The gamification sales platform industry is nascent and growing. According to EGC Analysts,
the Gamification Sales Platform Industry is Nascent and Growing. Enterprise Gamification
Consultancy (Mak, H. W, 2016, April 26) has released its latest report on the state of sales
platforms that offer gamification solutions. After researching twenty-four different hat use
gamification solutions, Enterprise Gamification Consultancy has concluded the following:

 The sales gamification space is nascent, growing, and in demand

 Most vendors are less than four years old
 The number of vendors that offer pure sales gamification platforms is expected to double
by 2017
 The number of customers looking to gamify their sales is expected to triple by 2018

According to the report, a major reason for this strong demand is that millennials are entering the
sales force. Millennials have shown distinctly different behaviors, expectations, and motivations
compared to past generations, and Enterprise Gamification Consultancy expects their preferences
to drive companies to adapt their sales processes and tools. Gamification is a solid, strategic
offering to improve employee engagement, productivity, and performance processes, and the
data created through gamification activities will enable companies to monitor and improve their
processes to better fit the next generation of sales representatives.

The issue of specialization in software development

Software development is a highly specialized skill set that is in high demand from a variety of
industries. Attracting and keeping highly skilled software developers is a key to continued
business success in this industry. Software publishers must spend large sums of revenue on
research and development to release more innovative products to a broader customer base.
Enterprise software vendors that offer related products and services (e.g. database software
packages, IT consulting) are more successful than specialized vendors.

The Decision Matrix for Industry Selection

We created the decision matrix for industry selection to compare the financial services and
pharmaceutical industries, and to rank them accordingly. The matrix is shown below, followed
by the indicators we decided to use. The evidence how we arrived at these numbers is shown in
the later sections of this report.
We decided to use four indicators to measure the favorability of both the financial services and
pharmaceutical industries. The indicators are listed and detailed below:

 Revenue Growth (30%): This indicator represents the revenue growth within the
industries. This factor is important for selecting an industry, because it represents
opportunities for future growth if SmartWinnr enters the industry. We determined the
growth in both industries, and ranked them accordingly.

 Competition (20%): This indicator shows the presence of competitors in both industries,
as well as the strength of the competition in the industry. Since most of SmartWinnr’s
competitors compete across several industries, and a dominant player has not been
established, both financial services and pharmaceuticals received a score of three out of
five.

 Risks (20%): The risk indicator demonstrates the amount of risk associated with entering
the industry as a gamification platform. The financial services industry involves valuable
customer information, making it a target for hackers and other security breaches.
Pharmaceutical patient data, on the other hand, is less likely to be targeted, since it is
closely protected. Therefore, the pharmaceutical industry received a score double that of
financial services on this indicator.

 Opportunities for Exposure (30%): This indicator represents the opportunities for
SmartWinnr to showcase its products and network with professionals in both industries.
This factor is very important because SmartWinnt must first learn about how it can help
businesses in both industries and gain contacts in the industry to work with. Both
industries are abundant in these opportunities, mostly in the forms of conferences in
events, giving them both the highest possible score of five for this indicator.

Competition in Gamification is Gaining Momentum

Gamification is gaining momentum in salesforce optimization across many industries in the

United States. Most companies that will compete with SmartWinnr do not specialize in one
industry, but perform optimization functions across several industries. Many of SmartWinnr’s
competitors have also established partnerships and customer bases across these industries,
meaning that SmartWinnr will have to look for growing industries in which to compete. The
competitors’ names are listed below, along with details of their operations, missions, and current
customers that they work with. These aspects will help SmartWinnr discover what industries are
saturated with competitors, and which ones are advantageous to enter. Pricings were not
available on the companies’ websites, but information should become available as they continue
to grow.
Qstream:

Qstream is a salesforce gamification app that aims to improve user experience and knowledge
retention through data-driven coaching and CRM integrations. This company is one of the largest
gamification companies in the United States, and is the competitor that is most similar to
SmartWinnr. Just like SmartWinnr, it is compatible across several platforms, such as any iOS,
Android, or Windows device and system through the native app, Web mail, or Salesforce.com.
The intuitive user interface, which requires no training, uses single-click actions to simplify the
games and results for employees and management. This interface, along with the application’s
ability to automatically sync across devices, make Qstream’s user experience very similar to
SmartWinnr’s. (Qstream, n.d.)

Qstream uses interval reinforcement to increase retention in users. Brief, scenario-based

challenges are delivered to reps’ mobile devices every few days, and are repeated over
determined intervals of time until the new information or skill is mastered. Each rep
automatically receives a personalized experience to optimize reinforcement and engagement,
limiting human interaction in a similar way to SmartWinnr. Unlike other competitors, Qstream
focuses solely on knowledge retention, creating direct competition with SmartWinnr. (Qstream,
n.d.)

Qstream’s customers include TDS Telecom, Philips Healthcare, Black Duck Software, Xerox,
Exactech, illy caffè, Intuitive Surgical, SDL Trados Studio, Sun Life Financial, and American
Medical Systems. These customers spread across the healthcare, life sciences,
telecommunications, computer software, coffee & snack, and financial services industries.
Therefore, this company competes with SmartWinnr in the majority of industries that we
selected for entry. (Qstream, n.d.)

MySalesGame by CallidusCloud:

MySalesGame motivates sales reps by breaking down high-level objectives into manageable
missions. The missions are customizable to align with customers’ corporate and team objectives,
and place the organizational goals within a sales game. While SmartWinnr provides leaderboards
and points systems to motivate employees and create positive competition, MySalesGame allows
participants to redeem points with their prefered rewards vendor. This type of motivation can be
effective, but also costly, because CallidusCloud must coordinate with partners and vendors to
provide physical rewards. (MySalesGame by CallidusCloudSales, n.d.)

MySalesGame has customers in several industries, including financial services, travel, consumer
electronics, technology, telecommunications, medical services, mass media, healthcare, energy,
and public relations. These customers include AAA, Barclays, Cree, DirecTV, MarketWired,
Nokia, Solta Medical, Thomson Reuters, TruStar Energy CNG, and Zumba Fitness. SmartWinnr
can outcompete CallidusCloud by focusing on a few target industries, and by establishing its
expertise and leadership in these industries. (MySalesGame by CallidusCloudSales, n.d.)
MindTickle:

MindTickle is another competitor for SmartWinnr that serves a wide range of industries in the
United States. This application allows management to create and assign any form of content as a
training module for its representatives. Bite-sized updates, such as push notifications, testing and
reinforcement, and content search and discovery, inform teams of their progress. Similarly to
SmartWinnr, MindTickle automatically assigns training based on manager observations and uses
visual models, such as charts, to understand team and individual performance. The application is
compatible with Salesforce.com and integrates content into a dedicated tab within
Salesforce.com. (MindTickle, n.d.)

Unlike SmartWinnr’s other large competitors in the United States, such as Qstream and
MySalesGame, MindTickle focuses on delivering solutions for companies that perform data
analytics functions. MindTickle’s existing customers include Cloudera, mongoDB, Qualtrics,
MuleSoft, Appdynamics, Fuze, Dabur, Couchbase, and Crowdstrike. SmartWinnr can avoid
major competition with MindTickle by focusing on potential customers from different industries.
(MindTickle, n.d.)

Bunchball:

Bunchball uses its Bunchball Nitro software to help its customers: increase motivation and
loyalty, measure audience engagement in a way that aligns with Key Performance Indicators,and
provide support for strategy, tactical gamification, and ongoing support services throughout
engagement. It assigns challenges based on group, role, geography, past behavior, and more.
Managers can then gain insights into robust analytics and expert reports that Nitro provides, as
well increase their Return on Investment with powerful integrations from Salesforce.com, BMC,
Remedyforce, IBM Connections, Jive , NICE Systems, and SAP. Bunchball Nitro is similar to
SmartWinnr because it engages employees through leveling, goal-setting, and meaningful
rewards, as well as through leaderboards, notifications, and newsfeeds. (Nitro Platform, 2017)

Bunchball Nitro provides services across many industries, including the health services, clothing,
education, entertainment, financial services, telecommunications, and food & beverage
industries. Customers in these industries include Campusfood.com, J. Hilburn, Course Hero,
Syfy, Telemundo, Sun Life Financial, Adobe, T-mobile, and Wendy’s. SmartWinnr should target
a portfolio of a few industries in order to find new markets and uses for its services that will give
it a larger market share. (Nitro Platform, 2017)

Other competitors:

There are several other apps that compete with SmartWinnr by gamifying sales in companies.
These include:
Monitae
 Badgeville
 AgileCRM Gamification Software
 CRMGamified
 Fantasy Sales Team
  PAKRA Simulation Games
 GamEffective
 XactlyExpress
 CRM.me
 AppAroundCPQ
 Hoopla
(Hogan, 2017)

Analyzing Consumers of Gamification Products in the United States

Gamification is a growing trend in many industries. Whether it is meant to help train employees,
create competition within sales teams, or engage consumers in advertising campaigns, the use of
gamification in the working world is growing rapidly. Specifically, the gamification of sales is
having a large impact on employee’s success in sales. Companies are seeing increased
engagement, focus, competitiveness, and ability to better understand the sales material (Laja,
2016). Gamified sales is mostly used in industries that have large sales teams, who are spread out
and need information quickly and efficiently. According to our research, we have chosen to
focus on the pharmaceutical industry and financial service industry.

Consumer perceptions of SaaS apps and salesforce gamifications

Gamification apps and SaaS platforms have become a welcome and positive trend. According to
Laja (2016) 77% of United States households own video games with an average age of 37, which
transfers well into a working environment, bring fun and enjoyment to work in areas lacking in
fun and enjoyment. Gamification works in a structural system by giving motivation to do
something, giving the ability to complete a task, and triggering or cueing to complete an action.
This flow of steps towards completing a task makes employees more willing to not only
complete a job-task but also enjoy the task they are completing.

Expanding Existing Customers

SmartWinnr has large corporate customers, such as FedEx, Boston Scientific, Mahindra, and
Polycom. With these established customers, SmartWinnr’s success can lead to expansion into
more divisions inside these companies. Specifically, FedEx demonstrates a great opportunity.
Currently, SmartWinnr works with FedEx Freight, which is one of four major divisions,
including FedEx Services, FedEx Express, and FedEx Ground (FedEx, 2017). SmartWinnr’s
expansion within FedEx’s corporate structure would increase the number of licensed
subscriptions, as well as customer loyalty with a well-known international customer.
The FedEx Freight division is one of the smaller divisions of FedEx corporation. So,
SmartWinnr should look to expand into either of the other three divisions of FedEx Corporation.
Currently, FedEx Freight has more than 40,000 team members worldwide, while FedEx Express
has more than 220,000 team members worldwide (FedEx, 2017). Also, as seen in the table
below, FedEx Express has the highest revenue of all of the FedEx Corporation divisions. This
implies the FedEx Express division has a highest disposable income as well the drive to increase
their divisional performance. On the other hand, FedEx Services has the lowest revenue and has
room for improvement, so by using SmartWinnr they can bridge the gap in revenues between
their division and the othe FedEx divisions.

Division Revenue 2017 Number of Team Members Rank

Express $34.8 billion >220,000 1
Ground $18.1 billion >95,000 2
Freight $6.4 billion >40,000 3
Services $1.6 billion >15,500 4
Office N/A >14,500 5
Supply Chain N/A >12,000 6

Trade Networks N/A >5,000 7

Custom Critical N/A >1,500 8

Another company that currently uses SmartWinnr is Boston Scientific Corporation. We were not
informed on the specific business within Boston Scientific that SmartWinnr works with, but here
are the businesses and possible opportunities within Boston Scientific. Boston Scientific is made
up of six different businesses: interventional cardiology, rhythm management, endoscopy,
peripheral interventions, urology & pelvic health, and neuromodulation. Expanding within
Boston Scientific Corporation has endless opportunity with the large amount of operational
income available within each business. The two to focus on would be Interventional Cardiology
and Rhythm Management, because they have the highest operating income with sustainable
growth, as shown in the table below. It is also worth mentioning the opportunity that lies in the
Urology and Pelvic Health business with the highest growth rate of 45%, which will lead to
higher operating income in the future, as shown in the graph below.

Business Operational Sales Growth Rank

Interventional Cardiology 2.5 Billion 13% 1

Rhythm Management 2.3 Billion 3% 2

Endoscopy 1.6 Billion 10% 3
4
Urology and Pelvic Health 1.1 Billion 45%

Peripheral Interventions 1.1 Billion 12% 5

Neuromodulation 574 million 12% 6
Opportunities within Financial Services and Pharmaceutical Industry
SmartWinnr can uniquely benefit financial services firms in the United States that have had
compliance and communication issues. Many of these firms have to constantly educate their
employees about financial policies, whether federal, local, or company-specific, in a cost-
effective, efficient manner. The issue surrounding these firms is that they are unable to
effectively educate their employees, and typically do not have the technological capabilities in-
house that are necessary for spreading information among employees (Goyal & Stepanel, 2017).
Financial services firms are also struggling with customer loyalty, due to lowered switching costs
and technological changes (Goyal & Stepanel, 2017). These two issues, combined with rising
mobile technology usage and payments, have created opportunities for SaaS optimization
companies, such as SmartWinnr, to enter and establish themselves in this fast-growing market.

The pharmaceutical industry is a booming industry with tremendous opportunity for gamified
sales. The competition is extremely high for gamification of sales companies in the industry with
companies such as Qstream, Pulse Learning, and Atrivity being the primary players in the
industry. Also, some pharmaceutical companies are making their own gamified platforms in-
house, such as Bayer pharmaceuticals with “Rep Race: The Battle for Office Supremacy” (Baer,
2017). The pharmaceutical industry benefits greatly from gamified sales, and over the past few
years has become a successful trend in the industry.

Both industries are currently growing, but are predicted to stabilize in terms of revenue growth
over the next few years. The percentage growth of revenues in both industries are shown below:

Financial Data Service Providers in the U.S. Pharmaceutical Contract Management

Consulting in the US

Gaining traction in financial services through conferences and events

In order to successfully enter the financial services market, we must first understand the
environment surrounding the industry, including innovations in technology and methods. One of
the best ways to understand and learn about the current situation in financial services is by
attending conferences and events that have to do with the industry. SmartWinnr’s sales team will
also be able to showcase their product at some of these events, giving them an opportunity to
establish a large customer base in the US.

We have found three major conferences and events that deal with financial services in the United
States. These events will be great opportunities for SmartWinnr to compete for customers and
gain an understanding of the current needs and opportunities in the industry.

Laser App Software Financial Services Conference:

The Laser App Software Financial Services Conference showcases many of the new financial
technology solutions that are gaining popularity in financial services firms and among
professionals. Held on August 14, in San Francisco, California, the conference includes 10 guest
speakers, 25 partners, and 35 presentations over the course of 3 days. Many of the sponsors are
either insurance or financial services companies, giving SmartWinnr an opportunity to learn
about potential applications in the industry, while gaining customers in the process. (LaserApp
Software Financial Services Conference 2017, n.d.)

Money20/20 USA:

Money20/20 is one of the largest conferences that deals with payments and financial services in
the United States. At the 2016 event, there were over 11,300 attendees. These attendees included
over 2,500 executives, 1,700 CEOs & Presidents, and 4,500 companies. This conference is the
industry-standard platform for developing partnerships, driving business growth, making major
announcements, and raising brand awareness. SmartWinnr can use this conference not only as a
platform to gain customers, but also as a channel to expand brand awareness through the media
presence there. In 2016, over 300 journalists covering 200 announcements created over 700
original articles on-site. These companies included CNBC, Fast Company, Financial Times,
Forbes, Fortune, and The New York Times. (OVERVIEW, n.d.)

Finovate Fall:

Held in New York City, from September 24-27, 2018, this conference features fast-paced demos
of cutting-edge financial technology. At FinovateFall 2018, SmartWinnr will have the
opportunity to connect with financial services companies and network with key financial
technologies decision-makers. The conference includes over 1,500 attendees from over 70
companies, as well as 270 financial institutions, making it an ideal event to gain a foothold in the
industry. (FinovateFall, n.d.)

Understanding the Current State of the Pharmaceutical Industry

SmartWinnr has the ability to make a big impact in the pharmaceutical industry by bringing
quality cognitive engaged learning functions at a reasonable price. Our research indicates that
competitors in the industry have a few advantages over SmartWinnr currently. Some advantages
competitors have over SmartWinnr are early entry and company in-house creations. Competitors,
such as Qstream, have already entered the market and demonstrated success, while others, such
as Bayer Pharmaceuticals, have created their own versions of gamified sales to engage their
workforce. Smart Winnr’s success in the United States is dependent on its facetime with
pharmaceutical sales directors and possible partnerships with conferences or companies.

Penetrating the Pharmaceutical Market through Conferences

In order to penetrate the United States pharmaceutical industry, SmartWinnr needs to attend or
partner with United States pharmaceutical conferences. Our research indicates the best
conference options for this industry are Pharmaforce and EyeforPharma. Pharmaforce is one of
the largest pharmaceutical conferences in the United States. It is meant for Vice Presidents and
Directors of sales, marketing, and brand strategist to attend, in order to learn how the industry is
changing and what new innovations are available. Pharmaforce 2018 will take place September
26-28 in Boston, Massachusetts. EyeforPharma is a large pharmaceutical conference held in the
United States. It’s the largest gathering of commercial pharmaceutical executives in North
America. In 2018, EyeforPharma will be held April 10-11 in Philadelphia, Pennsylvania
(EyeforPharma,2017). Both conferences are large in attendance and create opportunity for
SmartWinnr. By partnering with one these conferences SmartWinnr can have face-to-face time
with multiple sales representatives and directors, as well as pharmaceutical executives.

Communicating with customers in financial services and pharmaceutical industry

\
SmartWinnr can tap into the regulatory side of financial services to gain an upper hand on the
employee side of these customers. Many of SmartWinnr’s competitors in this sector focus on
bringing gamification elements to the consumers of the financial institutions’ products. If
SmartWinnr focuses on the compliance and regulatory side of financial services, especially
employee education of new policies and management decisions, it can gain a niche market share
in this sector as a first mover.

The pharmaceutical industry is a booming industry with tremendous opportunity for gamified
sales. The competition is extremely high for gamification of sales companies in the industry with
companies such as Qstream, Pulse Learning, and Atrivity being the primary players in the
industry. Also, some pharmaceutical companies are making their own gamified platforms in-
house, such as Bayer pharmaceuticals with “Rep Race: The Battle for Office Supremacy” (Baer,
2017). The pharmaceutical industry benefits greatly from gamified sales, and over the past few
years has become a successful trend in the industry.

Risks in entering the financial services and pharmaceutical industry

Gamification companies, such as SmartWinnr, face unique risks in the financial services and
pharmaceutical industries. These risks include issues of privacy in the financial services industry,
as well as data protection issues in the pharmaceutical industry.
The issue of privacy in the financial services industry
The financial services industry operates and deals with a significant amount of confidential client
and customer data for daily business transactions. Due to the perceived value of this data, the
financial services industry is one of the primary targets for data breaches.
Hospitality, retail, and financial services have been among the industry verticals that were most
affected by data breach events in 2010. with financial services accounting for almost 22% of
total breach cases reported across industries in 2010 (Capgemini.com, 2017). According to a
report on threats to the financial services sector, 41% of financial services organizations polled
had experienced a data breach or failed a compliance audit in the previous year, and 57% listed
preventing a data breach as their top IT priority (Data Privacy Monitor, 2016).
On a regular basis, financial service firms deal with large amounts of personal and confidential
customer information including bank account information, debit or credit card data and other
business confidential customer data.
Data protection issues in the pharmaceutical industry
Data protection is also an important aspect of the pharmaceutical industry. There is many
personal information about the patients and drugs they are using. Those personal information is
used extensively and increasingly in the sales and marketing, clinical operations, and human
resources management segments of pharmaceutical and medical device companies
(Athenaprivacy.com, 2010).
Therefore, privacy of customer information and personal data protection should be taken into
account when SwartWinnr entering into the financial services and pharmaceutical industry.
SmartWinnr need to use advanced techniques to ensure the safety of their clients’ information.
What’s more, SmartWinnr should set up policies regarding data privacy. For instance, when they
finishing providing services for their clients, SmartWinnr should delete their clients’ data
completely.

Final Entry Strategy Recommendations

SmartWinnr can take advantage of several promising opportunities in the United States. Both the
pharmaceutical industry and financial services industry are abundant in potential clients and
partners for SmartWinnr. The issue with these industries is that they involve high-value
information, and the security risks can lead to legal troubles if the proper security measures are
not implemented.

SmartWinnr can also take advantage of opportunities with existing customers, such as FedEx and
Boston Scientific, to strengthen their foothold in the industry. Further successes with these
customers will lead to new customer adoption of their product, as SmartWinnr can gain even
more credibility and strengthen its reputation through such successes.
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