Gamification typically involves applying game design thinking to non-game applications to make them more fun and engaging. Gamification has been called one of the most important trends in technology by several industry experts. Gamification can potentially be applied to any industry and almost anything to create fun and engaging experiences, converting users into players.
An example of this in the real world would be say if you had an app which tracked your every moment of every day and say when you got up in the morning you would gain points for brushing you teeth, putting on your clothes, eating your breakfast and completing other daily tasks and once you ha ranked up enough points you would then be rewarded with something. This has been happening for years even if we didnt notice, it is only lately that people have been giving it a name. It has been in the work place for years in the form of bonuses such as if you got a project done before a certain time you would get a cash bonus or a paid for activity with your group. It is even evident on social network sites such as Facebook and LinkedIn as if you dont have your profile 100% complete it will tell you that by having it fullly complete you are more lilkly to attract attention to your profile thus helping you improving your image.
For me I think Gamification is a useful application that can be applied to many things. It is something which I think improves producitivity and motivation. It gives the person an ulterior and more rewarding goal in their eyes to get something done.