Stepping into the Internet: Exploring a new world of value-

creation------

May 2011

RobinTeiglandKarinda Rhode in SLStockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteigland

History tends to repeat itself….Innovation, financial crisis, industrial revolution,

…

Steam engine

Internal combustion

engine

Microelectronics

Late 18th C Late 19th C Late 20th C

Schön 2008

Third industrial revolution?

Here comes the “Immersive Internet”

O’Driscoll 2009

Drivers of changeIn

crease

dIn

tera

ctivity

DiGangi 2010

What are Virtual Worlds?

• Persistent, computer-simulated, 3D immersive environments

• Shared space/interactivity with others• In some cases, ability to manipulate/create content

• In some cases, virtual economy and currency

VWs moving out of “Gartner hype cycle” trough

Virtual worlds today

http://www.gartner.com/it/page.jsp?id=1447613

>1 bln usersMay 2006

July 2007

7

How many usually think

of virtual worlds…

My CV• Leading a virtual team of 30

individuals from across the globe

• Creating and successfully executing strategies under

pressure• Managing cross-cultural conflict

without face-to-face communication

Building skills in virtual environments

> 560 mln VW users under age 15

http://www.slideshare.net/nicmitham/kzero-radar-q1-2011?from=ss_embed

…..we’re all on Facebook 24/7. But if I ask my 10 year old cousin, who

is addicted to Stardoll, she does not see why I like Facebook so

much since I can only read what other people send me. For her it is just natural for all of her friends to

be moving around the Stardoll website.

- Masters Student at Stockholm School of

Economics

Practicing international entrepreneurship

“Clearly if social activity migrates to synthetic worlds, economic activity will go

there as well.” Castranova, 2006

http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-1240578@N23/

• US $3 bln in virtual good sales in 2009 to grow to US $12 bln

in 2012

• US $222,000 raised at American Cancer Society Relay

in Second Life

• Swedish government granted bank license to Mind Bank in

2009

Pay through PayPal and have delivered to any virtual world

http://www.totalavatarshop.com

US$ 635,000 for an asteroid!

http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-just-made-a-cool-half-million-from-the-sale-of-virtual-property/

• US$ 500,000 profit in 5 years by Jon “Neverdie”

Jacobs• Entropia Universe with GDP

>US$ 440 mln

HP rolls out virtual banking with Avaya’s Web.alive

http://www.hypergridbusiness.com/2011/04/hp-rolls-out-virtual-banking-with-avayas-web-alive/

Welch et al 2010

Merck’s Global R&D

NVWN Monthly Project Meeting

http://freshtakes.typepad.com/sl_communicators/2006/09/

ibms_second_lif.html

Virtual collaboration

ProViWo: Professional Collaboration and Productivity in Virtual Worlds,

http://vmwork.net/proviwo/

Increasing pace of VW/3Di development!

VWs on stick

Browser-based VWs/hyperlinked

3D

Seamlessness between VWs

http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://mediagrid.org/groups/technology/OFF.TWG/

"Create Once, Experience

Everywhere” Expanding uses

For smart phones and tablet PCs

Open source VW platforms

Virtual Worlds on Demand

www.kitely.com

Easy to….

Set up your own virtual world with own web presence (each world has World Page with own URL and sharing buttons

Manage who can access each world via Facebook integration (LinkedIn, Twitter, and other login options are coming) and track this

Run multiple worlds so can host hundreds of simultaneous events while still paying just $0.20 per user per hour

Finance since charged by minute so actual visitor costs for partial hours are lower

http://getsatisfaction.com/kitely/topics/how_to_change_default_viwer_on_a_mac#reply_5484936

http://www.slideshare.net/helgetenno/post-digital-marketing-2009

Moving into the Experience Economy

Pine Jr. & Gilmore 1998, 1999; DiGangi 2010

The rise of social shopping

http://www.interactivecity.com/

3D interactive marketing

Hooker 2010

State of flow -> greater purchase intent and positive brand attitudes

Armed with new connective tools, consumers want to interact and co-create value...

Prahalad and Ramaswamy, 2003

„“

Slide from Kohler 2011

Interacting with customers in the development process

Helms, Giovacchini, Teigland, Kohler, JVWR 2010http://www.youtube.com/watch?

v=2kMNWBU1Yb8

Exploring VW affordances

Nonaka & Toyama 2003, Teigland et al 2010

SimulationAvatar

design

Multi-modal

communication

Co-creationArchiving

Immersion

30

Interested in joining a

workshop?

Please register at

tiny.cc/t4c or email me

at tkohler@hpu.edu

Kohler, Teigland, Giovacchini 2010

“ They could use their virtual-world sensibility to design products with real-world potential.. (Hemp, 2006)

„

User-generated content

Native creativityPlayful environmentFreedom to experiment

Slide from Kohler 2011

As soon as the Facebook generation wakes up and

embraces virtual reality, we are going to see a giant wave of virtual world millionaires.

-Jon “Neverdie” Jacobs

Purchase with credit card, PayPal, mobile phone or in physical stores (such as Walmart),

Facebook takes 30% of revenue In study with 3000 respondents: Will you be buying

and spending Facebook Credits? – 17 % Yes, absolutely – 58 % No, absolutely not– 25 % I have to learn more

Predictions by Social Times Pro, May 2011− Facebook Credits will likely have nearly 25 million users in

next 12 mos.− By 2016 Facebook Credits will probably have 100 million

users

Group 8b , Course 2304, Media Management 2011

Facebook Credits – A new economy?

From the mobility of goods to the mobility of financial capital to …

Teigland, JVWR, 2010

...the “mobility” of labor?

Karinda Rhode

aka Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net RobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

“We ain’t seen nothin’ yet!”