Virtual World
Opportunities:
Second Life and Beyond
Siemens Global Web Conference
Kloster Seeon, June 1, 2007

Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

The future is here.
It‘s just not widely
distributed yet.
William Gibson
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Since 1997 CScout reports
directly from
the global Hot-Spots
keeping your fingers
on the pulse.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

CScout is translating
new market developments
into new profit opportunities.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

We are Screening & Monitoring
Trends from
early signals to
radical innovations.
High
Climax:
Mass Market
Early Adoptors:
Impact
Trend-Setters Followers:
Fast & Late Followers
Innovators:
Lead Users
Retro Trends
Low
Low High
Duration
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What we also do...
Trend Management System Executive Trend Tours TrendPool - Database
Trend Reports
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Executive TrendTour
New York City,
18. - 20. July 2007
3 days of Trends & Innovation:
- „The Future of Media“
- „The Future of Marketing“
- „Consumer Generated Media“
Request your
TrendTour today.
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The new Web 2.0
is a social-amplifier.
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Media becomes
„Human“
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„Everybody
is an artist“ Joseph Beuys
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Today software enables anybody
to become an author, journalist
or film maker.
Attention Economy -
Self-representation
‣through avatars (online gaming),
‣voice (podcast) and
‣as actor (video) or
‣author (weblogs).
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Participatory culture -
sharing and participating is
spreading in the digital world.
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Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

The average Gamer
is 32 years old.
The average age of the most
frequent game buyer is 40 years old.
69% of American heads of households play
computer and video games.
Thirty-eight percent of all game players are women.
* From the Entertainment Software Association. The stats are a
combination of both computer and console gaming.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

There are over
400 million
active gamers
worldwide.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

A virtual world is a
computer-based simulated
environment intended for its
users to inhabit and interact
via avatars.
Definition - Virtual World
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6,5 Mio People create their
virtual Second Life.
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Second Life (www.secondlife.com) was created in 1999
by Linden Labs, a privately held company.
The founder is Philip Rosedale,
the former CTO of RealNetworks.
The creator, Rosedale, says he got the idea back in
1992 when his wife handed him a copy of the book
Snow Crash by Neal Stephenson.
Snow Crash is basically a sci-fi
story about a hero in the future
who unravels a mystery that
transverses both the real world
and the
“Metaverse.”
“Metaverse” is a 3-D virtual
universe online.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Second Life’s First Millionaire
At the end of November of 2006, Second Life spit out
its first millionaire.
The millionaire is Anshe Chung, whose fortune in
Second Life includes virtual real estate, cash holdings in
Linden dollars, and several brands in Second Life.
She also has significant virtual stock market
investments in Second Life. Born in China, she is
currently a citizen of Germany.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Why is Second Life so successful?
‣ User Generated: SL is a completely
personalized environment. Residents can view and
modify the world, create, buy and sell property,
houses, services and other virtual items (from
clothing to technology)
‣ Own Currency: Second Life has its own
economy and a currency referred to as Linden
Dollars (L$). Though the exchange rate fluctuates,
as of February 2007 it is reasonably stable at
around L$ 270 to one US dollar. Residents trade
real currency via credit card or paypal into L$
The Second Life Currency Exchange acts as a real
financial market
‣ Explorative Interaction &
Communication: Users are called residents
and appear as avatars. Second Life provide an
advanced level of a social network service
combined with general aspects of a metaverse
(3D virtual world).
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Real Life Companies in Second Life.
Several real world brands are starting to set up a
presence in SL and translate real-life products and
services into the virtual domain of Second Life.
20th Century Fox, Adidas Reebok, American Apparel,
American Cancer Society, Axel Springer AG- Bild.T-
Online, BBC Radio, Centric, Creative Commons, Dell,
Disney, Endemol - Big Brother, Eudoxa, Gabetti
Property Solutions, Harvard Law School, IBM, Leo
Burnett, Lichtenstein Creative Media, Max March
Industries, Mazda, MLB.com, MTV, Intel, The New
Media Consortium, PA Consulting Group, Reuters,
Starwood Hotels, Sun Microsystems, TELUS Mobility,
Text 100, Toyota, Universal Motown Records Group,
Mercedes Benz, BMW, Deutsche Post, T-Online,
Pontiac, Wired Magazine, Sony BMG, Calvin Klein,
Loreal... ABN Amro, BCV, BNP Paribas, ING Bank, Saxo
Bank, Wells Fargo.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Strategies in Second Life.
Advertising & Promotion: Most of the
companies are currently investing in SL as an
alternative advertising and promotional platform (for
example Sony BMG Artists Promotion).
Generating a buzz worldwide
Virtual Business: The virtual shops are mainly used
to display and sell virtual items (for example Adidas
Store).Virtual spaces are usually connected to an
external online website.
Education & Future Market: Stage events,
speeches and seminars (Intel in Second Life New York
Live Window)Experiment a new type of interaction
with the users Use Second Life as a test laboratory for
the future of the internet (IBM) E-Learning,
Recruitment, Internal Workshop and conferences.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

CScout initiated a Innovation Project
for Bild.T-Online AG
(Axel-Springer Verlag).
CScout developed
the concept for
„The Avastar“ and
realized the concept
within Second Life.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

The Avastar
is the most efficient
marketing activity for
Bild.T-Online ever.
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A real newspaper
for a virtual world.
23rd Issue
L$150,-
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Regis Braathens,
alias Rowan Barnett, is
Chief Editor
of the Avastar.
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Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Avastar Areas:
Main Sphere
Newbie Lounge
Star Lounge
Style Lounge
Style Lounge
Travel Lounge
Beach Club
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Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Future Virtual Worlds
- Playstation „Home“.
Home is a real-time online 3D, networked
community available on the Playstation 3. It allows
users to interact, communicate, join online games,
shop, share private content and even build and
show off their own personal spaces to others in
real time.
With an avatar uniquely customized according to
each user’s preference, users can explore the 3D
community that is Home – a sleek, modern
environment featuring spacious common areas;
custom spaces dedicated to specific games; and
personal apartments.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Future Virtual Worlds - Playstation „Home“.
Official Trailer (Quicktime Video)
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Do you know this country?
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

8,5 Mio
People.
World of Warcraft
is a massive
multiplayer online
role-playing game
(MMORPG).
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

eSports
is becoming a
serious
sport-business.
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Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Everything
in 3D in real life
will be illustrated in
3D in virtual life, too.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Shopping is different
in Virtual Worlds.
Different...
... Payment Methods
... Consumer Behavior
... Needs & Wishes
Same...
... Identity
... Products
... Brands?
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

vBusiness Strategy has
three main characteristics.
‣ Innovative
‣ Global
‣ Sustainable
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Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

The Power
of Virtual Worlds
... changes the way
we think about the
World Wide Web.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Virtual Worlds
CScout is helping
will be relevant
you to keep
for your business.
ahead of time.
You can profit from
There are new
virtual business to gain
emerging
real business.
Virtual Worlds.
Siemens Global Web Conference, Juni 2007 © 2007 CScout Trendberatung

Let‘s get it started....
CScout thank you for listening
CScout USA, Headquarters
CScout Trendberatung GmbH
Trogerstrasse 48
81675 München, Germany
Monty Metzger
Managing Director
CScout Japan eMail: monty@cscout.com
Tel:. +49 (0) 89 - 23 22 56 75
TrendBlog & Newsletter
www.cscout.com
CScout China
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