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Enhancing innovation through virtual worlds


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My presentation in February 2011 to students in the Mastering Innovation Class at the McCombs School of Business at UT at Austin.

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Enhancing innovation through virtual worlds

  1. 1. Stepping into the Internet: Exploring opportunities for innovation ------ UT Austin, Managing Innovation February 2011
  2. 2. Today’s presentation <ul><li>Intro to Virtual Worlds </li></ul><ul><li>Some examples of using VWs for innovation </li></ul><ul><li>Co-creation workshops </li></ul><ul><li>Looking into the future </li></ul><ul><li>Questions </li></ul>
  3. 3. Here comes the “Immersive Internet” O’Driscoll 2009
  4. 4. How many usually think of virtual worlds… Computer-generated, persistent space Three-dimensional, immersive environment Experienced by many people at once/interactivity
  5. 5. Virtual social worlds vs virtual gaming worlds
  6. 6. So, what can you do? <ul><li>Ability to manipulate/create content </li></ul><ul><li>In some cases, virtual economy and currency </li></ul>
  7. 7. Improving corporate training Learning virtual teaming skills through doing
  8. 8. Facilitating virtual collaboration IBM’s Innovation Jam Welch et al 2010 ProViWo: Professional Collaboration and Productivity in Virtual Worlds, Merck’s Global R&D
  9. 9. Working with customers
  10. 10. Today’s presentation <ul><li>Intro to Virtual Worlds </li></ul><ul><li>Some examples of using VWs for innovation </li></ul><ul><li>Co-creation workshops </li></ul><ul><li>Looking into the future </li></ul><ul><li>Questions </li></ul>
  11. 11. Understanding customer needs Developing products that meet those needs + = Successful innovation Innovation From Kohler 2011
  12. 12. Slide from Kohler 2011 Armed with new connective tools, consumers want to interact and co-create value... Prahalad and Ramaswamy, 2003 „ “
  13. 13. <ul><li>Avatar </li></ul><ul><li>Virtual representation </li></ul><ul><li>Appearance </li></ul><ul><li>- Looks </li></ul><ul><li>Clothing </li></ul><ul><li>Accessories </li></ul>Slide from Kohler 2011
  14. 14. Technological advances <ul><li>Technological advances </li></ul><ul><li>Real-time </li></ul><ul><li>Media richness </li></ul><ul><li>Interactive collaboration </li></ul><ul><li>“ When you are at you are actually there with 10.000 concurrent other people, but you cannot see them or talk to them. At Second Life, everything you experience is inherently experienced with others.” (P. Rosedale) </li></ul>Slide from Kohler 2011
  15. 15. “ They could use their virtual-world sensibility to design products with real-world potential.. (Hemp, 2006) „ <ul><li>User-generated content </li></ul><ul><li>Native creativity </li></ul><ul><li>Playful environment </li></ul><ul><li>Freedom to experiment </li></ul>Slide from Kohler 2011
  16. 16. Need identification and idea generation Concept and design Test and launch Philips Ideation Quest Kohler 2009
  17. 17. Steelcase Chair Designs Need identification and idea generation Concept and design Test and launch Kohler 2009
  18. 18. KTM Ideation Quest Need identification and idea generation Concept and design Test and launch Kohler 2009
  19. 19. Today’s presentation <ul><li>Intro to Virtual Worlds </li></ul><ul><li>Some examples of using VWs for innovation </li></ul><ul><li>Co-creation workshops </li></ul><ul><li>Looking into the future </li></ul><ul><li>Questions </li></ul>
  20. 20. Kohler, Teigland, Giovacchini, Helms 2011 <ul><li>RunAlong </li></ul><ul><li>Swedish web startup </li></ul><ul><li>Web community for female runners </li></ul><ul><ul><ul><li>Goal: Enable knowledge exchange from disperse locations about local markets </li></ul></ul></ul>Travel for Change Non-profit project Volunteer travel platform Goal: Co-design of Service Experience
  21. 21. Bringing together runners from across globe Helms, Giovacchini, Teigland, Kohler, JVWR 2010
  22. 22. What should you think about? VIRTUAL CUSTOMER ENVIRONMENTS Nambisan and Nambisan 2008 PRAGMATIC SOCIABILITY USABILITY HEDONIC
  23. 23. Provide clear navigation structure Provide individual support Design to inspire Create immersive environments Provide challenging tasks Nurture playfulness Encourage collaboration Engage in multi-modal conversations Nambisan and Nambisan 2008 USABILITY PRAGMATIC HEDONIC SOCIABILITY
  24. 24. What role does avatar appearance play? <ul><li>Avatar appearance influences one’s behavior and that of others </li></ul><ul><ul><li>More attractive avatars involve others better and more likely to be included in conversations and interactions </li></ul></ul><ul><ul><li>Taller avatars are more confident, stronger negotiators </li></ul></ul><ul><ul><li>People whose avatars resemble their physical selves focus more closely on task and more motivated to perform better </li></ul></ul>See speaker notes for sources
  25. 25. “ I’m currently in my work avatar, which is an extension of my professional life and when I show up in SL with this avatar I’m a representative of my company and therefore I adjust what I’m saying and doing accordingly. While during the workshop I showed up with my personal avatar, that I use for volunteer efforts in SL for a not-for-profit organization. So, I think I adjusted my behavior just a little bit, by being a little bit less worried and more relaxed about just meeting people without being under a particular pressure to make a lot of sense.
  26. 26. What role does the environment play? <ul><li>Environment influences behavior </li></ul><ul><ul><li>Heightened telepresence, or sense of “being there”, leads to highly immersive virtual experience in which individual's avatar becomes extended-self of participant in virtual world and individual concentrates acutely on his/her activities </li></ul></ul>
  27. 27. “ At first I thought that it  running around track  was really goofy…but honestly after I ran the first time around, I remember it pulled for me some memories of actually running, the last time I was actually running on the sidewalk or through my neighborhood. That was really interesting, and it has stuck with me that you used the SL environment with scripted animation to actually give people an experience to ground them to prepare them mentally for what we were going to be talking about. So I thought that was fantastic.”
  28. 28. Interested in joining a workshop? Please register at or email me at [email_address] Travel for Change Kohler, Teigland, Giovacchini 2010
  29. 29. 1. Become aware 4. Get critical 3. Get creative 2. Get inspired
  30. 30.
  31. 31. How does participation through an avatar impact the co-creation process? How does the environment impact the co-creation process? A B Food for thought…
  32. 32. Follow-up survey and interview
  33. 33. Today’s presentation <ul><li>Intro to Virtual Worlds </li></ul><ul><li>Some examples of using VWs for innovation </li></ul><ul><li>Co-creation workshops </li></ul><ul><li>Looking into the future </li></ul><ul><li>Questions </li></ul>
  34. 34. VWs moving out of “Gartner hype cycle” trough Virtual worlds today >1 bln users May 2006 July 2007
  35. 35. >1 bln users
  36. 36. Building skills in virtual environments <ul><li>My CV </li></ul><ul><li>Leading a virtual team of 30 individuals from across the globe </li></ul><ul><li>Creating and successfully executing strategies under pressure </li></ul><ul><li>Managing cross-cultural conflict without face-to-face communication </li></ul>Teigland 2010
  37. 37. “ Practicing” entrepreneurship
  38. 38. “ Clearly if social activity migrates to synthetic worlds, economic activity will go there as well.” Castranova, 2006 <ul><li>US $ 3 bln in virtual good sales in 2009 to grow to US $ 12 bln in 2012 </li></ul><ul><li>US $222,000 raised at American Cancer Society Relay in Second Life </li></ul><ul><li>Swedish government granted b ank license to Mind Bank in 2009 </li></ul>
  39. 40. USD 635,000 for an asteroid! USD 500,000 profit in 5 years -Jon “Neverdie” Jacobs
  40. 41. Emergent organizing in VWs <ul><li>Collaborating with like-minded individuals to pursue a vision </li></ul>Teigland, JVWR, 2010
  41. 42. The rise of Avapreneurs and Born Virtuals? <ul><ul><li>Microworkers and pro-ams </li></ul></ul><ul><ul><li>Markets and market knowledge </li></ul></ul><ul><ul><li>Microtransactions </li></ul></ul><ul><li>Challenging multinational corporations’ traditional resource advantage? </li></ul> “ Avapreneur” = Avatar + entrepreneur Teigland, JVWR, 2010
  42. 43. Clothes/ shoes MODELLING AGENCIES Top models Photo- graphers Photo studio makers Modelling furniture Poses and animations Furniture Hair Skins Event builders MAGAZINES MODELLING SCHOOLS Shop builders Accessories Body shapes DJs Fashion industry in SL Viachka, Giovacchini, Teigland, Lindqvist 2011
  43. 44. Increasing pace of VW development! VWs on stick Browser-based VWs Seamlessness &quot;Create Once, Experience Everywhere” Expanding uses For smart phones and tablet PCs
  44. 45. OpenSim: The open source of VWs CERN control room and particle accelerator
  45. 46. Coming soon! Center for Entrepreneurship and Innovation Contact Serdar Temiz at
  46. 47. 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 As modeling and simulation technology improves, more and more real world items will be successfully designed in collaborative spaces that can be leveraged both by corporations and ad hoc groups. -Cory Ondrejka
  47. 48. Which professions and industries will not be revolutionized?
  48. 49. Conclusion <ul><li>VWs offer new opportunities for innovation and co-creation </li></ul><ul><ul><ul><li>Advances mostly in creation of innovation-related knowledge </li></ul></ul></ul><ul><ul><ul><li>Technological challenges remain but improving rapidly </li></ul></ul></ul><ul><li>Preliminary insights on how to manage co-creation workshops </li></ul>
  49. 50. Today’s presentation <ul><li>Intro to Virtual Worlds </li></ul><ul><li>Some examples of using VWs for innovation </li></ul><ul><li>Co-creation workshops </li></ul><ul><li>Looking into the future </li></ul><ul><li>Questions </li></ul>
  50. 52. Karinda Rhode aka Robin Teigland [email_address] RobinTeigland Photo: Lindholm, Metro Photo: Nordenskiöld Photo: Lindqvist If you love knowledge, set it free…
  51. 53. 7 Work Packages March 1 St 2010 - February 29 th 2012 Work Package WP Title WP Coordinating Organization WP Supporting Academic Organization WP Advisor Organization WP 1 Nordic VW Network SSE Roskilde WP 2 Best Practices in VW Innovation Univ of Turku Iceland Academy of Arts TEKES Silver WP 3 Best Practices in VW Entrepreneurship Roskilde Agder MindArk WP 4 Future of Entrepreneurship and Innovation in VWs SSE Roskilde TEKES WP 5 Virtual Center for Entrepreneurship and Innovation Agder SSE TEKES WP 6 Communication Uppsala Univ of Turku WP 7 Project Administration SSE Uppsala