Stepping into Internet-Virtual Worlds and Future of Value Creation


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My slides from a lecture for Erasmus University in February 2014.

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  •, persistent spaceThree-dimensional, immersiveenvironmentExperienced by many people at once/interactivity
  •, persistent spaceThree-dimensional, immersiveenvironmentExperienced by many people at once/interactivity
  • Platforms for unleashing creativity and revolutionizing value creationPersistent, computer-simulated, immersive environments ranging from 2D "cartoon" imagery to more immersive 3D environmentworld exists regardless of whether users logged inUsers can manipulate and/or alter existing content or even create customized content Shared space or co-presencenumerous users, or ‘avatars’, simultaneously participate, interact, and share experiences through gestures, text chat, and voiceSocialization/community formation of in-world social groups such as teams, guilds, clubs, cliques, housemates, neighborhoods, etc the world allowed and encouraged
  • are the 5 phases of a Hype Cycle?1. "Technology Trigger"The first phase of a Hype Cycle is the "technology trigger" or breakthrough, product launch or other event that generates significant press and interest. 2. "Peak of Inflated Expectations"In the next phase, a frenzy of publicity typically generates over-enthusiasm and unrealistic expectations. There may be some successful applications of a technology, but there are typically more failures. 3. "Trough of Disillusionment"Technologies enter the "trough of disillusionment" because they fail to meet expectations and quickly become unfashionable. Consequently, the press usually abandons the topic and the technology. 4. "Slope of Enlightenment"Although the press may have stopped covering the technology, some businesses continue through the "slope of enlightenment" and experiment to understand the benefits and practical application of the technology. 5. "Plateau of Productivity"A technology reaches the "plateau of productivity" as the benefits of it become widely demonstrated and accepted. The technology becomes increasingly stable and evolves in second and third generations. The final height of the plateau varies according to whether the technology is broadly applicable or benefits only a niche market.Virtual worlds have reached a stage where new users continue to build, even though the media has moved on to fan the fires of Facebook and Twitter, says Douglas Thompson, CEO of Remedy Communications, a Toronto marketing firm. Second Life says the time spent on the site by users increased 21 percent in 2009. Most paying customers on Second Life are purely social, but it still boasts 1,400 business-related organizations as users. Thompson says traffic on Metanomics, his company’s Second Life video presence, has picked up in the past year, with 50 percent of new users coming from small or medium-size companies. “People no longer ask what an avatar is,” says Thompson. “We can thank Jim Cameron for that.”Read more: Entrepreneurs Doing Business by Avatar - Personal Finance - Employment - SmartMoney.com
  • RT: traditional leadership further challenged as we move to a world of web 3.0 or the immersive internet…
  • Hurkommerdet sig att vi identifierarosssåstarkt med avatarer? Frågangår till HenrikEhrsson, professor påKarolinskainstitutet, somforskarikognitivneurovetenskap, somär en blandningavpsykologiochneurofysiologi. Han ärpionjärinomdettaområdeochhansforskningsgruppsresultatharuppmärksammatsinternationellt. – När vi spelardataspelsäger vi ofta: ”Vemär du? Jag är den därgrönagubben.” Detfinns en koppling till vårkropp. När vi kontrolleraravatarensrörelser, får vi en känslaavatt jag är ”den där” och vi börjartalaomatt vi är ”den där”. Vi har en känslaavatt vi styrvårkroppochdärförhar vi känslanatt vi ärvårkropp.– Hjärnanharettmultisensorisktområde, somskapar en inremodellavvårkropp, såatt vi kanhållaredapåkroppennär vi röross. När jag spelar tennis måstehjärnanhållaredavaravar mina armaroch ben är. Ochdetmåstegåväldigtsnabbt under en tennismatch, därförharnervcellerna, somfinnsi de härområdena, grovupplösning.
  • 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
  • (1) Enabling people to do things we already know how to do and (2)creating collaborative environments that allow people to develop new ideasand concepts to address unanticipated opportunities or challenges.Productive learning focuses mostly on the individual and on helpingthat individual to adopt a pattern of behavior that improves productivity.Generative learning, by contrast, is a collaborative endeavor. Shared meaningand insights are developed at the group level, and these insights driveenterprise transformation to ensure growth and sustainability. Today, thelearning function is focused primarily on productive learning. As a result,it appears that trainers are more likely to want to maintain the status quo,rather than challenge it.Learning is a far more complicated phenomenon than can ever be limitedto the classroom context. If we convey knowledge about tasks we alreadyknow how to do, we call it productive learning . If we share knowledge abouttasks that are new and different, we call it generative learning . Productivelearning serves largely to maintain the status quo within an enterprise byconveying what is already known, while generative learning involves notonly absorbing existing information but also creating new solutions to unanticipatedproblems. Information age learning requires that individuals andorganizations change the way they think about and act on what is knownand what needs to be known in order to innovate, change, and win.
  • Abandoned factory in Michigan: building:
  • Liam Dippenaar couldn't catch a ball with both hands. Holding two objects at once was a feat and, though right-handed, the 5-year-old used his left. Born with Ambiotic Band Syndrome, Liam lacks the instrument critical for most tasks: fingers. Thanks to two strangers halfway around the world and the magic of 3D printing, Liam is now able to color and write to his heart's content. Ivan Owen and Richard Van As created Robohand, an open-sourced device built with customized prosthetic fingers. Owen, of Washington state, and Van As, of South Africa, collaborated via the Internet to create the prosthetic. The duo decided to make the design in the public domain to help others who can benefit from the technology.Their journey started in 2011, when Van As came across a video of Owen's costume piece, a robotic hand built for amusement. Van As lost most of the fingers on his right hand in a woodworking accident and cast a net out for those willing to help build a prosthetic. Owen was the only one who agreed. "I had started with the first prototype prior to meeting Ivan. But yes, there were so many obstacles and one of the main ones was contacting people and them just saying, 'No, it can’t be done,'" Van As tells Mashable. Long nights on Skype and a 10-hour time difference took some getting used to, but the two kept the project going through email and file sharing. Owen and Van As initially used a milling machine and spent hours engineering parts until MakerBot donated two Replicator2 Desktop 3D Printers. The donation exponentially cut production time for prototypes. What used to take up to three days to complete can now be done in only 20 minutes. Using OpenSCAD, a free software application, Owen and Van As can exchange files and make changes in minutes. Jenifer Howard, MakerBot's PR director, says the cross-continent collaboration fits perfectly with the company's mission. "We love to see our printers being used for amazing life-changing and life-validating projects like this," Howard says. The two men document their progress on a blog called "Coming up Short Handed." Liam's mother, Yolandi, saw the site and reached out to Van As for help. Liam, who has no fingers on his right hand, received his own Robohand at no cost after several trials and prototypes. "At first it was quite amazing to see the smile on his face when they made the first prototype and he put it on his hand," Yolandi says. "His expression was, 'Oh wow, it’s copying me.'
  • Stepping into Internet-Virtual Worlds and Future of Value Creation

    1. 1. Stepping into the Internet: Exploring a new world of value-creation
    2. 2. Who am I? (LinkedIn Inmaps) Swedish Industry Research Stanford SSE Wharton McKinsey Exec Ed
    3. 3.  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
    4. 4. Expats In Nordic Region Some “Nordic” players
    5. 5. Published April 2013
    6. 6.  Overview − − − − EU funded, 3 year multilateral and transversal network (LLP EACEA, KA3 (ICT)) December 2011 – December 2014 Project Leader: University of Hull (Darren Mundy, Luisa Panichi) 19 partners from Austria, Cyprus, France, Germany, Israel, Italy, Netherlands, Norway, Portugal, Sweden, UK  Network Aims −Collect good practice examples in teaching and learning in virtual worlds from different subjects and national and local contexts − Facilitate transfer of core knowledge to new contexts − Provide framework for creation of pan-European virtual-world university  Expected Outcomes − Increased number of experts in virtual world education − Policy for long-term sustainability of network and its outcomes − Model for knowledge transfer − Range of dissemination events More information:
    7. 7. Learning Objectives  To gain an overview of virtual worlds and the 3D Internet  To experience immersion in virtual worlds through a variety of activities  To reflect on the benefits and challenges of virtual worlds for business organizations
    8. 8. Overview  11:00 – 11:45 Introduction to Virtual Worlds  12:00 – 12.45 Immersion Benefits and Challenges  13:00 – 13:45 Future of Value Creation
    9. 9. Here comes the “Immersive Internet” O’Driscoll, 2009
    10. 10. How many usually think of virtual worlds…
    11. 11. Building skills in virtual environments My CV •Leading a virtual team of 30 individuals from across the globe •Creating and successfully executing strategies under pressure •Managing cross-cultural conflict without face-to-face communication
    12. 12. What are Virtual Worlds? •Persistent, computer-simulated, immersive environments •Shared socialization spaces with interactive content •Economic activity and transactions
    13. 13. VWs moving out of “Gartner hype cycle” trough May 2006 July 2007 Virtual worlds today
    14. 14. The number of virtual worlds and users continues to rapidly increase ≈1.9 bln accounts ≈100 worlds
    15. 15. “Clearly, if social activity migrates to synthetic worlds, economic activity will go there as well.” Castronova, 2006
    16. 16. The rise of Avapreneurs and Born Virtuals? “Avapreneur” = Avatar + entrepreneur Leveraging global reach − Microemployees and pro-ams − Global markets and local market knowledge Challenging multinational corporations’ traditional resource advantage? Teigland, JVWR 2010
    17. 17. DJs Event builders MODELLING SCHOOLS MODELLING AGENCIES Photo studio makers Photographers Modelling furniture Poses and animations Top models Virtual fashion ecosystem Clothes/ shoes Accessories Furniture Shop builders Hair MAGAZINES Skins Body shapes Viachka, Giovacchini, Teigland, Lindqvist 2011
    18. 18. US$ 635,000 for a virtual asteroid! •US$ 500,000 profit in 5 years by Jon “Neverdie” Jacobs •Entropia Universe with GDP >US$ 440 mln
    19. 19. VWs for effectiveness through virtual collaboration and visualization ProViWo: Professional Collaboration and Productivity in Virtual Worlds,
    20. 20. City planning in Uppsala and Stockholm
    21. 21.
    22. 22. A spectrum of business virtuality possibilities Virtuality Fully real Fully virtual NO activities conducted inworld ALL activities conducted inworld
    23. 23. Cloud Party just acquired by Yahoo!
    24. 24. Overview  11:00 – 11:45 Introduction to Virtual Worlds  12:00 – 12.45 Immersion Benefits and Challenges  13:00 – 13:45 Future of Value Creation
    25. 25. Marketing and branding State of flow - Greater purchase intent - Positive brand attitudes Hooker et al 2010
    26. 26. VWs as a tool for training • Browser-based, multiuser, voice-enabled simulated medical spaces • Medical interactive narrative requires learner action • Learn through practice and debrief: fail early and learn through failure
    27. 27. Learning virtual teaming skills
    28. 28. “ Armed with new connective tools, consumers want to interact and co-create value... „ Prahalad and Ramaswamy, 2003 Slide from Kohler 2011
    29. 29. Accelerating innovation to meet global needs Integrating users in development process Teigland et al. 2010
    30. 30. VWs offer significant affordances Teigland et al 2010
    31. 31. Today’s challenges  I’m “afraid” of the technology.  Isn’t a webconference better?  It’s just a game.  Who’s behind that avatar?  Here today, gone tomorrow….  You’re only as good as your technology.  The technology isn’t stable.  I can’t read their body language.  ….
    32. 32. Overview  11:00 – 11:45 Introduction to Virtual Worlds  12:00 – 12.45 Immersion Benefits and Challenges  13:00 – 13:45 Future of Value Creation
    33. 33. Models of Knowledge Creation E.g., Microsoft ~ Built by employees within organizational boundaries The Firm vs The Collective E.g., Linux ~ Built by users and distributed freely regardless of affiliation Teigland, Di Gangi, & Yetis 2012
    34. 34. Only a matter of time…. O’Driscoll 2009
    35. 35. A “Born Virtual” organization Members Core team Meetings $$ Teigland, JVWR, 2010
    36. 36. OpenSimulator: An open source value-creation ecosystem USD 5.5mln in development costs Academic Entrepreneur Hobbyist Large Firm Non-profit Local Public Federal Public Research Inst SME Employee Periphery Teigland, Di Gangi, & Yetis 2012
    37. 37. Companies competing and collaborating on through an open source platform
    38. 38. Moving into the Experience Economy Pine Jr. & Gilmore 1998, 1999; DiGangi 2010
    39. 39. My 10 year old cousin is addicted to Stardoll and does not 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 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
    40. 40. ≈1.4 bln VW accounts under age 16 290 mln 220 mln >200 mln 42 mln (and 12 mln bought) 290 mln
    41. 41. Developing international entrepreneurs?
    42. 42. 3D printing becoming more commonplace…
    43. 43. Kids exploring the link between VWs and 3D printing
    44. 44. The future of immersion…
    45. 45. Exploitation Exploration Improving existing value creation activities Developing new value creation activities Adapted from March 1991
    46. 46. From the mobility of goods to the mobility of financial capital to … ...the “mobility” of labor? Teigland, JVWR, 2010
    47. 47. From factories to office parks to….
    48. 48. Here today, gone tomorrow?
    49. 49. Where is the Firm? 24x7 Global Internet Collaboration + Open Source + 3D Printing $60,000 $150 Available for free download on
    50. 50. Learning Objectives  To gain an overview of virtual worlds and the 3D Internet  To experience immersion in virtual worlds through a variety of activities  To reflect on the benefits and challenges of virtual worlds for business organizations
    51. 51. If you love knowledge, set it free… Karinda Rhode aka Robin Teigland RobinTeigland Photo: Lindholm, Metro Photo: Nordenskiöld Photo: Lindqvist