entrepreneurship in virtual worlds nov3

Entrepreneurship in Virtual Worlds

November 2011www.nordicworlds.net

Programme 10:30 Welcome and Presentation

− Virtual Worlds: Just a game or what?   11:00 Presentation of a Pan-Nordic Research Project

− Professor Robin Teigland (Stockholm School of Economics, UiA) presents the project “NVWN - The Nordic Virtual Worlds Network”

 Showcases  11:30 RunAlong

− Entrepreneur Heidi Harman presents her experiences with the running initiative, RunAlong in Second Life

  11:45 Virtex

− Founder Sverre Lunøe-Nielsen presents Virtex, a company developing software applications for interactive data visualization

  12:00 ICYou Group

− Project Manager Serdar Temiz presents ICYou, a company that develops interactive media platforms

12:15 Lunch

Bjørn-Tore FlåtenBear-Toru Floresby in SL

Centre for EntrepreneurshipAgder University

Virtual Worlds: Just a game or what?

Entrepreneurship in Virtual WorldsNovember 2011

Jack

Welc

h

...when the rate of change outside an

organization is greater than the rate of change

inside, the end is near......

7

Social Media

Increase in integration and rapidly more interactivity

Characterised by user participation, openness, and network effects (Musser and O’Reilly, 2006)

Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user generated content (Kaplan & Haenlein, 2011)

Definition

Social media

Drivers of changeIn

crease

dIn

tera

ctivity

DiGangi 2010

Types of Social Media

Shneor 2011, Kaplan & Haenlein 2011

Social Presence/ Media Richness

Low Medium High

High Blogs Social Networking Sites

Virtual Social Worlds

Low Collaborative Projects

Content Communities

Virtual Game Worlds

Self

-p

resen

tati

on

/ S

elf

-dis

clo

su

re

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 currencyTeigland 2010

Learning virtual

teaming skills

Mahaley & Teigland 2009, http://bit.ly/rUMfcO

Tomorrow’s education?

3D Avatar School

Flåten & Hansen 2011

VWs moving out of “Gartner Hype Cycle” trough

Virtual World

s today

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

>1.2 bln

users

May 2006

July 2007

Teigland 2011

970 mln VW accounts under age 16

http://www.slideshare.net/nicmitham/kzero-universe-q2-2011 Teigland 2011

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

will go there as well.” Castronova, 2006

Teigland 2011

Pay through PayPal and have delivered to any virtual world

http://www.totalavatarshop.comTeigland 2011

US$ 635,000 for a virtual 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 mlnTeigland 2011

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/Teigland 2011

Welch et al 2010

Merck’s Global R&D

IBM’s Innovation Jam

Virtual Collaboration

Teigland 2011

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

Teigland 2011

http://www.slideshare.net/helgetenno/post-digital-marketing-200922

Moving into the Experience Economy

Pine Jr. & Gilmore 1998, 1999; DiGangi 2010

Hooker et al 2010, Teigland 2011

State of flow- Greater purchase

intent - Positive brand attitudes

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

Prahalad and Ramaswamy, 2003

„“

Slide from Kohler 2011

Exploring VW affordances

Teigland et al 2010

SimulationAvatar

design

Multi-modal

communication

Co-creationArchiving

Immersion

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” JacobsTeigland 2011

RobinTeiglandKarinda Rhode in SLStockholm School of Economicswww.knowledgenetworking.orgnordicworlds.net

November 2011

Some “Nordic” players

International, multidisciplinary team

− Denmark, Finland, Iceland, Norway, Sweden, USA

− Academia, Industry, Public Sector

Objectives− To explore how entrepreneurs and SMEs can

use VWs to improve competitiveness

− To create a Virtual Center for VW Entrepreneurship & Innovation

March 2010 to February 2012

Two primary levels of investigation

“Platform business”Providing a platform

for a virtual world

“User business”Using a virtual world for

business purposes

A spectrum of business virtuality

Virtuality

Fully real Fully virtual

NO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm

uses

VW tech

nology

as tool

Avapreneur &

VW firm part

of

VW ecosy

stem of

economic

activity

A spectrum of business virtuality

Virtuality

Fully real Fully virtual

NO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm

uses

VW tech

nology

as tool

Avapreneur &

VW firm part

of

VW ecosy

stem of

economic

activity

VWs as tool for RL firms for design, training,….

35

Interested in joining a

workshop?

Please register at

tiny.cc/t4c or email me

at tkohler@hpu.edu

Kohler, Teigland, Giovacchini 2010

…and co-creation

A spectrum of business virtuality

Virtuality

Fully real Fully virtual

NO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm

uses

VW tech

nology

as tool Avapreneur &

VW firm part

of

VW ecosy

stem

of eco

nomic

activity

BOSL & CO

Web Radio

Beauty Pageant

Lifestyle Magazine

Auditorium

Model Agency

Shopping Mall

Modelling Academy

Lindqvist 2011

Clothes/shoes

MODELLING AGENCIES

Topmodels

Photo-graphers

Photo studio makers

Modelling furniture

Poses and animations

Furniture

HairSkins

Event builders

MAGAZINES

MODELLINGSCHOOLS

Shop builders

Accessories

Body shapes

DJs

Viachka, Giovacchini, Teigland, Lindqvist 2011

Virtual fashion

ecosystem

But few firms span the RL/VW boundary

Virtuality

Fully real Fully virtual

NO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm

uses

VW tech

nology

as tool

Avapreneur &

VW firm part

of

VW ecosy

stem

of eco

nomic

activity

Why?

Lack of ……economies of scale?

…economies of scope?

Different consumer

groups between RL & VW

https://marketplace.secondlife.com/p/MG-Dungeon-Lord-black-male-coat-outfit-by-Marlene/1447251

Two primary levels of investigation

“Platform business”Providing a platform

for a virtual world

“User business”Using a virtual world for

business purposes

“Opposing” forces: Current business models

limit overall VW industry growth

VW platform provider

s

“Closed”

business

models

SMEs Need for

seamlessness between

VWs

Income model

RL entrepreneurs keeping out…….

“I’m not going to risk my money and

time…..”

“The modeling and simulation technology is

crap…”

But it is only a matter of time….

O’Driscoll 2009

Open source VW platforms growing

OurBricks

Charities bridging RL/VW boundary

Teigland 2010

Core teamMembers

Meetings

$$

“Fashion allowsfor self-identification

and is driver for economic value”

Fashion industry leading the way....

“Entertainment more meaningful than real life”

“Meaningful interactionsbetween real peoplecreates real value”

Eyjólfur Guðmundsson, CCP Games, 2011

Stardoll launches JC Penney clothes line

http://socialtimes.com/stardoll-online-fashion-community-launches-jc-penney-clothes-line_b38360

970 mln VW accounts under age 16

http://www.slideshare.net/nicmitham/kzero-universe-q2-2011

My 10 year old cousin is addicted to Stardoll and doesn’t see why I

like Facebook since I can only read what other people send me. For her it is just natural for all her

friends to be moving around the Stardoll website.

- Masters Student at Stockholm School of

Economics

Tomorrow’s international entrepreneurs?

The rise of Avapreneurs and Born Virtuals?

Leveraging global reach−Microemployees and pro-ams

−Global markets and local market knowledge

Challenging multinational corporations’ traditional resource

advantage?Teigland 2010

“Avapreneur” = Avatar + entrepreneur

Pine Jr. & Gilmore 1998, 1999; DiGangi 2010

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

...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!”

Programme 10:30 Welcome and Presentation

− Virtual Worlds: Just a game or what?   11:00 Presentation of a Pan-Nordic Research Project

− Professor Robin Teigland (Stockholm School of Economics, UiA) presents the project “NVWN - The Nordic Virtual Worlds Network”

 Showcases  11:30 RunAlong

− Entrepreneur Heidi Harman presents her experiences with the running initiative, RunAlong in Second Life

  11:45 Virtex

− Founder Sverre Lunøe-Nielsen presents Virtex, a company developing software applications for interactive data visualization

  12:00 ICYou Group

− Project Manager Serdar Temiz presents ICYou, a company that develops interactive media platforms

12:15 Lunch