Presentation for GCAP December 2009

1. SERIOUS GAMES FOR SERIOUS BUSINESS
Marigo Raftopoulos ~ Director Strategic Essentials
GCAP December 2009, Melbourne

2. ABOUT ME
• Strategyconsultant for public &
private sector
• Strategy
& capability development
& knowledge management
• Existing
business tools in strategy Yeah,
and L&D are becoming ineffective dream on
• Researchingserious games for last
2 years (newb & ABC finalist)
•I come to you with a challenge

3. WHY AM I HERE?
• Significantopportunities in
immersive learning and
development
• My focus will be on corporate
training & development
• Widely recognised need for new,
more effective business & learning
tools such as SG, VR, SIMS
• But are YOU ready?
• First, a
little more on where the
corporates are at...

4. IT’S THE END OF
“BUSINESS AS USUAL”

5. WHAT DOES THIS MEAN?
• Tomorrow will not be like yesterday. This
is no mere recession: it's a tectonic global
shift in savings, consumption, and investment
20th century business isn't fit for 21st century
economics. Yesterday's businesses were built
for a world of over-consumption, artificially
cheap production, symmetrical competition, and
macroeconomic stability. That was yesterday.
Tomorrow's market leaders have new DNA. The
next-generation leaders look and feel radically
different because they are built for 21st century
economics not 20th century economics
Umair Haque 2008, Harvard University

6. THE FUTURE LABOR MARKET
Predictions are that by
2010 the top 10 in-demand
jobs did not exist in 2004

7. CHANGE IS PERMANENT
• Volatile, unsustainable
& unethical
business practices over last 20yrs
culminated in the GFC
• Growth in a culture of stakeholder
collaboration & consultation
• Disruptivetechnologies changing
the way we do business e.g. social
media, social networks
• Changing of the guard in business
leadership e.g. Gen X & Y

8. A NEW ERA HAS EMERGED
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9. THE IMPLICATIONS FOR BIZ
• Develop new skill sets
• Creativity & innovation critical
• Strategy is everyone’s job
• Leveraging networks
• Working in virtual teams
• Democratization of leadership
• Agile structures & processes

10. THIS IS WHERE SG COME IN
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11. BECAUSE LEARNING COMES THROUGH THIS

12. AND NOT THIS

13. AN EXAMPLE: IBM INNOV8
• http://www.youtube.com/watch?
v=hXplJ6ZNEs0

14. THE IBM EXPERIENCE - AIMS
• Innovative solution to learning
• Find the fun in the content
• Linkuser experience to social
networks to share & collaborate
to ‘extend the life of the game’
• Intrinsic
motivators - story,
heroes, score, competition
• Understand audience needs,
expectations, motivations

15. THE IBM EXPERIENCE - EXPECTATION
• Understand your value
proposition in 5 minutes!
• Proof of concept, playable demo
• Capture data, metrics, show ROI
• Level of effort to be ‘worth it’
• Immersive & reusable
• Platform cost-effective to update
& modify

16. ARE YOU READY?
• Game studios focusing on the
entertainment market are showing
interest in SG
• Emergent supply chain developing for
SG in corporate training & education
• Restrictive business focus? ”we’re an
entertainment company”
• Business model predominantly a
publisher-driven, “work for hire”
approach for retail distribution

17. THE NUMBERS
• Global video games market is at $42b
& set to grow by $26b over next 2
yrs (PwC)
• SG global market estimated at $2b
• Other estimates suggest the health
games market alone is $6b (incl wii fit)
• Australian data is hard to estimate
• However we should be looking at this
another way...

18. CORPORATE TRAINING IN AUSTRALIA
Organisational investment in training on personal and
professional development is $4.02billion (ABS 2002)
On the job 55%
Internal workshops, etc 42%
External workshops, etc 76%
Computer assisted training 33% *
Audio visual 11%**
Other 14%
NB: Organisations engaged more than one method therefore will not round to 100%
* up to 60% for orgs employing 100+ staff
** up to 30% for orgs employing 100+ staff

19. CORPORATE TRAINING IN THE US
Organisational investment in corporate training is
US$56.2billion (Bersin & Associates 09)
This market is bigger than the global video games industry
Virtual classrooms,
60%
advanced technology
SIMs & rapid e-learning 30%
Training & e-learning businesses are already repositioning
themselves by investing in game technology

20. VOCATIONAL TRAINING IN INDIA
Private investment in vocational training is
US$2.5billion & growing fast (AUSTRADE 09, ZDNetAsia08)
Flexible, technology driven, multi-media solutions to
vocational training are highly sought after to fill skill gaps
(young, tech savvy workforce)
Scalable e-learning, on-line tools for staff to learn in their
own time and not disrupt day-to day work commitments

21. WHAT IS HOLDING YOU BACK?
• Lackof research and hard
data on market size and ROI
• Highly fragmented industry
• Studio capabilities
• Lack of buyer need awareness
• Lack of industry standards
• Lackof a profitable &
sustainable business model for
SG (a global issue)

22. BUT A DIFFERENT MODEL IS NEEDED
(FROM THIS)
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23. TO THIS:
INTEGRATED, COLLABORATIVE, SOLUTIONS BASED
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24. PEDAGOGY IS JUST AS
IMPORTANT AS ENGAGEMENT
Engagement
Reflection
Learning Motivation Feedback/ Learning
goals Results Outcomes
Comprehen-
sion
Learning by
doing
Which makes partnerships with clients, subject matter expert and
learners themselves important in the development process

25. THE TRICK IS TO MAKE THIS

26. AS FUN AS THIS

27. BACK TO THE BUSINESS OF GAMES
• Success Factors:
• Sustainable business model
• Scalable products
• Profitable ventures
• Think outside the box
• Studio capability development
• Partnering or strategic alliances

28. BACK TO THE BUSINESS OF GAMES
• What are you selling?
• Time
• Software
• Content
• Toolsets
Define your business: Motorola’s mission “applying technology to benefit
the public” moved their business from producing TVs to a major tech player

29. BACK TO THE BUSINESS OF GAMES
• Due Diligence:
• Market research
• Targeted
business
development
• Partnering
• Distribution
• Marketing & sales

30. IDEAS WORTH CONSIDERING
• Cross-Industrycollaboration
for SG in Australia?
• e.g. Serious
Games Institute
(Coventry University)
• ANGILS a UK non-profit org
promoting the growth of SG
• e.g. Institute for the Future
• e.g. ABC/Screen Australia SG
competition

31. DON’T GET LEFT BEHIND!
CORPORATES ARE REINVENTING THEIR BUSINESS
MODELS - ARE YOU??

32. THANK YOU!
Marigo Raftopoulos
Email: marigo@strategicessentials.com.au
Twitter: @marigo
Skype: marigo.raftopoulos
http://talesfromthecasbah.blogspot.com