This document discusses using virtual worlds for real-world innovation through avatar-based collaboration. It presents opportunities for open innovation using virtual worlds' interactive collaboration and user-generated content capabilities. Several case studies are described that involved identifying needs, concept development, testing, and launches in virtual environments. The research aims to understand what creates a compelling co-creation experience in virtual worlds by examining elements like challenge, desirability, interactivity, usability, and community. Preliminary results suggest these elements are important for effective avatar-based innovation.

1. Avatar-Based Innovation Using Virtual Worlds for Real World Innovation Thomas Kohler, Kurt Matzler, Johann Füller University of Innsbruck :: Department of Strategic Management, Marketing and Tourism

2. Armed with new connective tools, consumers want to interact and co-create value... Prahalad and Ramaswamy, 2003 „ “

4. Virtual Worlds Computer-generated physical space Represented graphically in three dimensions Experienced by many people at once

6. Virtual Worlds Open Innovation Avatar-Based Innovation = +

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

10. Need identification and idea generation Concept and design Test and launch Alcatel-Lucent Innovation Competiton

11. Steelcase Chair Designs Need identification and idea generation Concept and design Test and launch

12. Need identification and idea generation Concept and design Test and launch Aloft Testing the Virtual Hotel

13. The Challenge < Participation

15. WHAT CREATES A COMPELLING CO-CREATION EXPERIENCE WITHIN VIRTUAL WORLDS ?

16. COMP CO-CRE EXPER ELLING ATION IENCE Virtual Worlds Open Innovation

17. Research Design context process users Expert Interviews Compelling co-creation process Participant Interviews and Observation Compelling co-creation in virtual worlds Focus Groups Compelling virtual world place

19. Ideation Quest

20. Sustainable living in 2020 The future motor biking experience

25. Challenge Desirability Interactivity Usability Community

28. Discussion