1. Fad or Future - What Do Virtual Worlds Have to Offer? Dr. Robin Teigland Stockholm School of Economics [email_address] www.knowledgenetworking.org Second Life & Virtual Worlds November 2007

4. A world of rapidly growing knowledge …. > A person’s lifetime 18th century One week 2007 Fischbowl 2007

5. …that becomes quickly outdated …. 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

6. ..making it more difficult to keep up Growth Time Output of information and knowledge Human absorptive capacity Junks 1989

8. Numerous networking possibilities!

13. Recruiting Job Fairs

14. Springtime Training with avatars from Shanghai, Beijing, Stockholm, and Gotland Internal communications

15. In-house training and education IFL at SSE and Duke Corporate Education Co-developing and running virtual team building exercise

17. Critical mass is restricted due to technology * Municipality (kommun) wikipedia.org 1,391 138 195,250 Richmond, VA 1,479 0.06 98 Online, Mon, Sep 3 8:15 pm (GMT+1) Freebie Planet #1 popular site 10,316 786 8,143,000 New York 24,759 87 2,153,600 Paris 1,083 450 489,760 Gothenburg* 4,164 188 782,890 Stockholm* Density (people per km 2) Land area (km 2) Population Location

18. And is anyone making money? What are these individuals selling? Real estate & land rentals Simulation & training environments, games Clothing, accessories, skins, animations Art, design, furniture SL, Sept 3, 2007 Total of 424 >$5000 $2000-5000

19. What about Return on Investment in SL? We have a long-term approach to costs and RoI. We have qualitative goals, to expand and develop our presence. - BMW We have no targets for RoI. -ABN Amro There needs to be some RoI eventually, but this is a long-term project and we are just looking at the potential . - Vodafone Financial Times , May 2007

21. What can we do that we “ cannot” do in real life?

22. Improving skills Learning to sail with the Starboards Yacht Club

23. Training for natural disasters A tsunami simulator by National Oceanographic and Atmospheric Administration

24. Collaborating and co-creating Open source museum with open source art

25. Experiencing the “impossible” UC Davis Medical Center has simulated schizofrenia

26. What is happening in other virtual worlds?

34. So, what about the future of virtual worlds?

35. Gartner Group, April 2007 By the end of 2011, 80% of active Internet users (and Fortune 500 enterprises) will have a “second life”, but not necessarily in Second Life.

39. What should you do in virtual worlds? Experiment, “play”, and learn Stay on the look-out Consider creating independent operations Don’t forget other emerging media

40. “ I think there’s a world market for maybe five computers.” Thomas Watson, Chairman of IBM, 1943 “ There is no reason anyone would want a computer in their home.” Ken Olson, President, Chairman and Founder of Digital Equipment Corporation, 1977 “ Heavier-than-air flying machines are impossible.” Lord Kelvin, President, Royal Society, 1895

41. We digitized audio and video, why can’t we just digitize, you know, Earth” Philip Rosedale, CEO Linden Lab

43. Appendix

44. An increasingly connected world new friends family local colleagues old friends old colleagues colleagues at other offices Just a click away… virtual communities local communities old classmates

45. The number of unique users in Second Life has increased exponentially within one year SL, September 3, 2007

46. Who’s in world in Second Life? Number of active avatars SL, September 3, 2007 Sweden is #17

47. US avatars spend the most hours in world SL, September 3, 2007 Total number of hours in world Sweden is #17

48. 25-34 year olds spend most time in world SL, September 3, 2007 Total number of hours in world ~40% Female

49. “ We think it has potential as a way of doing business. We’re just experimenting with it ourselves but we see massive potential in the human interaction you can bring. It’s a big browsing environment in many ways.” - IBM Director

50. Is there critical mass on Second Life? * Municipality (kommun) wikipedia.org 43 988 42,060 Motala* 63 712 44,750 Online, Mon, Sep 3 8:35 pm (GMT+1) Second Life 177 41,284 7,252,330 Switzerland Density (people per km 2) Land area (km 2) Population Location

51. Toyota educates teenagers on credit

53. Man-made disasters

55. MyCoke

56. External communities are growing in importance! Online communities Schoolmates Avatars Previous work colleagues Large portion of new ideas and formal collaboration relationships come from external contacts Organization Physical Networks

57. Encourage an open innovation attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. If you make the best use of internal and external ideas, you will win. Closed attitude Open attitude Chesborough 2003

58. The wisdom of crowds (Surowiecki 2004) Closed Expensive Complex Accurate Open Inexpensive Simple Close enough Hinton 2007

60. What can organizations do? Innovation Product development Content generation Decision making Funding Sales & marketing Distribution Brayrie 2007

61. Innovations - www.innocentive.com

62. Problem solutions - The Goldcorp Challenge

63. Decision making & funding Brayrie 2007

64. Product development - www.ideastorm.com Brayrie 2007

65. Building the Dell community Brayrie 2007

69. All the things right, but not the right thing!

70. Increasing pace of change! Spread of Technology (Penetration rates years after introduction, Year I =Year Invented)