Dr Robin Teigland aka Karinda Rhode in SL Stockholm School of Economics wwwknowledgenetworkingorg wwwslideshareneteteigland Serdar Temiz Royal Institute of Technology Photo Lundholm Metro ID: 588577
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Leveraging Virtual Worlds for Real World Results
Dr. Robin Teigland, akaKarinda Rhode in SLStockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteiglandSerdar TemizRoyal Institute of Technology
Photo: Lundholm, Metro
September 2009Slide2
Today’s discussion
Some facts and figures on virtual worldsA look at virtual entrepreneurshipSome real life benefits of virtual worldsBreakA look at some of my virtual world activitiesA tour of Second LifeSlide3
History tends to repeat itself….
Innovation, financial crisis, industrial revolution, … Steam engineInternal combustion engineMicroelectronics
Late 18
th C
Late 19
th
C
Late 20
th
C
Schön 2008
Third
industrial
revolution?Slide4
Towards 3D Internet
Level of Interaction
Time
Individual
-
Web 1.0 Thinking
Mosaic, Prodigy, Compuserve, AOL, Netscape
Connected
Web 2.0 Thinking
Facebook, Friendster, Yahoo, Blogger, Wikipedia, eBay, Typepad, LinkedIn. Amazon, MySpace, Textamerica, Delicious, HubPages
SENSORY
3D Internet
Thinking
SecondLife, Active Worlds, There, SimsOnline, Club Penguin, World of Warcraft, 3D planets, ToonTown, Habbo, VSlide, Protosphere
Hamilton 2008Slide5
A growing universe of Virtual WorldsSlide6
What are Virtual Worlds?
Persistent, computer-simulated, immersive environmentsShared space/co-presence with possibility for socialization and community In some cases, ability to manipulate/create contentIn some cases, virtual economy and currencyhttp://www.youtube.com/watch?v=0CijdlYOSPcSlide7
Virtual Worlds
Open-ended–built by residents Social environment, affinity groups Boundaries for access and building Commerce, education, innovation, and…?MMORPGs Scripted narrative – created by game designers Goals and objectives, ranking systems
Rules for gameplay, winners and losers
Entertainment only?Slide8
What financial crisis?
Increasing membersIncreasing salesIncreasing companies
WonderlandSlide9
Why VWs ? Is there
any market?Today around 150 virtual worldsQ1 2009: US$68 million invested in 13 virtual worlds-related companiesQ2 2009: Total number of accounts at 579 million, 39% increase from Q1 2009 End 2009 – US$ 2bln revenues from subscriptions, marketing, and microtransactions
Virtual Worlds News, KZEROSlide10
Around 150 virtual worlds
Q1 2009: $68 mln invested in 13 virtual world companiesSlide11
Number of Accounts-Age (Cumulative)
39% increase from Q1 2009 Slide12
Slide13
40 mln members 135 mln membersTwo popular Kids & Tweens worldsSlide14
Building skills in virtual environments
My CVLeading a virtual team of 30 individuals from across the globeCreating and successfully executing strategies under pressureManaging cross-cultural conflict without face-to-face communicationSlide15
“Clearly if social activity migrates to synthetic worlds, economic activity will go there as well.”
Castranovahttp://www.youtube.com/watch?v=-ahqjBeknT0Slide16
Gartner’s hype cycleSlide17
Virtual World revenues
USD 2bln in 2009 Slide18
Microtransactions business model
Zynga:- Majority revenues comes from 2% to 10% of users who pay $1 an hour to play premium games or buy virtual goods- Annual sales of about USD 100 mlnPlaydom:
- Estimated USD 50 mln in sales per year from virtual goods
Social Gaming Network:
- Estimated USD 50 mln sales mainly from virtual goods
Weeworld:
-
Estimated 2008 revenue USD 10 mln+ mainly from virtual goods
Habbo:
- Estimated 2008 revenue USD 50 mln from virtual goods
- 10% monthly players pay $10.30/month
http://www.businessweek.com/technology/content/apr2009/tc20090429_963394_page_2.htmSlide19
780,000 users
USD 420 mln turnover 2008Slide20
Entropia Universe by MindArk
Ability to develop skills and sell virtual goodsIsland sold for USD 26,500 in 2004Asteroid space resort sold for USD 100,000 in 2005Clothes Against Violence – limited edition virtual jackets sold for more than same model of real world jacketsVirtual universe with real cash economyFixed exchange rate to US Dollar, 1 USD = 10 PEDFive banks auctioned for USD 404,000 in 2007Real life bank license granted by Swedish Government to MindArk Bank in March 2009A business model like the real worldRaw materials and skills required to build / create
Goods deteriorate and need to be replenishedSlide21
Jon “Neverdie” Jacobs in Entropia
http://www.youtube.com/watch?v=Mg4TwOqVprw&feature=relatedUSD 100,000 for asteroid space resortUSD 90,000 for bank licenseSlide22
Entropia uniquely positionedSlide23
Virtual currency and a virtual economy
1.4 million residents logged in/60 day period70,500 logged on Sunday, Sept 20Average age=32, 43% female, 55% non-US270 Linden dollars ≅ USD 1350,000 hours of use per day
87,500 hours devt time/day
$1.6 bln worth of free work / year
68,000 people making profit
Joe Miller, Linden Lab, 2009 Slide24
What do these virtual entrepreneurs sell?
Real estate & land rentalsSimulation & training environments, gamesClothing, accessories, skins, animationsArt, design, furnitureSL, Sep 2009Total of 593
Number of individuals
Monthly USD profitSlide25
RedgraveSlide26
SL’s first millionaire
Started with < USD 10Buys and develops virtual real-estate in Linden DollarsDevelops communities in SLDevelops 3D copies of real life buildings e.
g. Dresden Gallery
Employs almost 80
people in real life
B
ank owner in Entropia Universe
http://acs.anshechung.com/index.phpSlide27
Virtual Things for Real MoneySlide28
New Citizens Inc – A successful non-profit
Provides services for SL residentsEst. 2005Staff of 150Raises more than USD 13,000 / year to cover costsIts instructors and event hosts paid Slide29
Today’s Discussion
Some facts and figures on virtual worldsA look at virtual entrepreneurshipSome real life benefits of virtual worldsBreakA look at some of my virtual world activitiesA tour of Second LifeSlide30
Showcasing current products
IBM’s Green Data CenterSlide31
Developing new products
The Innovision Awards by ElectroluxSlide32
Co-creating solutions
Philips Design GroupLead-user innovation workshopsSlide33
Developing training & education programs
Play2trainNew employee training, eg policies, organizational cultureSkills training, eg salesVirtual teamingSlide34
Facilitating the virtual workforce
Completely private virtual business worlds offering tools to conduct business and collaborateFortune 500: IBM, Intel, Johnson & Johnson, Motorola, Novartis, Unilever Slide35
Finding and recruiting talent globally
Amazon.com job fairBenelux job fairAccenture islandIBM islandEntrepreneursMicroemployeesSlide36
Today’s Discussion
Some facts and figures on virtual worldsA look at virtual entrepreneurshipSome real life benefits of virtual worldsBreakA look at some of my virtual world activitiesA tour of Second LifeSlide37
In-house training and education
IFL at SSE and Duke Corporate EducationCo-developing and running a virtual team building exerciseSlide38
Our innovation workshops bring together users from across the globe
PartnersUtrecht UniversityUniversity of InnsbruckSlide39
Creating a new fashion brand
With Florida State University fashion designNew brand designed and showcased on catwalk during annual pageant on Planet CalypsoUsers / players vote on designs Potentially produced in real lifeSlide40
Pros & Cons
Low entry barriers, software often freeVWs humanize technologyYoung generation already there, “grown virtual”MicrotransactionsMicroemployeesInternational reach
Some hardware requirements
“User friendliness”
Not regulated
Real world skepticism
Creating attraction
Which world?Slide41
Increasing effectiveness in
traditional industries“Soon all fashion designers will be originating their designs and managing the production in virtual worlds….Why such a dramatic change? Economics, pure and simple.”Shenlei Winkler, Director Fashion Research InstituteLearn how to become an SL Fashion Designer at Fashiontech.wordpress.com/Slide42
Revolutionizing professionsSlide43
Four scenarios for 2015
FragmentatedworldsIntegratedworlds
Advanced
usage
Less-
advanced
usage
Digital Divide
Ease of mobility
Self-governance
Dominance by gaming generation
Traditional vs virtual business
One Converged Universe
High penetration
Easy avatar & asset mobility
High scalability & security
Business transformation
Wild Wests
Individual “MMOGs” dominant
Virtual vandalism
Security problems
Retreat
Virtual Silos
Many competing, limited worlds
Difficult avatar & asset mobility
Limited scalability
High security
New business models Slide44
The future of 3D internet
Before the first plate of aluminum is even bent for production, the passengers will have flown the plane, the crew will have serviced the plane, and the pilots will have flown the plane.CEO of Boeing supplierSlide45
China is making efforts in virtual worlds
“The real China is only a piece of land. We believe that there must be a China in the virtual world and the real world.”Robert Lai, Chief Scientist, CRD“Here in China the value of such items is taking off as teens can’t afford the real world items and are compensating by getting a virtual item that has more ‘online’ status.” -KZERO bloggerSlide46
We digitized audio and video, why can’t we just digitize,
you know, Earth” Philip Rosedale, ChairmanLinden Lab Slide47
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Thanks and see you in world!Karinda Rhodeaka Robin Teiglandrobin.teigland@hhs.sewww.knowledgenetworking.orgwww.slideshare.net/eteigland Slide48
LPSO.com
Littlest Pet Shop Onlinehttp://www.youtube.com/watch?v=1DwL1JIvGhcSlide49
Connect the World Through Games
Company makes money by Selling Virtual GoodsFarmVille:"Grow delicious fruits and vegetables and raise adorable animals on your very own farm!"If you don't visit your farm, your vegetables, animals will die.Relased in July 2009 and till the end of August 2009:(In 2 months)33 million people played it.Slide50
Success of Zynga