Slides from my lecture on Virtual Worlds and Virtual Reality for the Course Contemporary Research Issues in Marketing at SSE in November 2014.

1. Stepping into the Internet:
Exploring a new world of value-creation

2. Who am I? (LinkedIn Inmaps)
Swedish
Industry
SSE
Exec Ed
Research
Wharton
Stanford
McKinsey
vonorange.com

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. Some
“Nordic”
players
In
Nordic
Expats Region

5. Published
April 2013
http://www.amazon.com/The-Immersive-Internet-Reflections-Entangling/dp/1137283017

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: http://www.euroversity.eu/

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, e.g., marketing

8. Overview
 Introduction to Virtual Worlds
 Immersion Benefits and Challenges
 Future of Value Creation

9. Here comes the “Immersive Internet”
O’Driscoll, 2009

10. How many
usually think of
virtual worlds…

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. What are Virtual Worlds?
•Persistent, computer-simulated, immersive environments
•Shared socialization spaces with interactive content
•Economic activity and transactions

13. VWs moving out of “Gartner hype cycle” trough
Virtual
worlds
today
May 2006
July 2007
http://www.gartner.com/it/page.jsp?id=1447613

14. The number of virtual worlds and users
continues to rapidly increase
≈1.9 bln accounts
≈100 worlds
http://www.slideshare.net/nicmitham/kzero-universe-q1-2012

15. “Clearly, if social activity migrates to
synthetic worlds, economic activity will
go there as well.” Castronova, 2006

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. MODELLING
AGENCIES
Clothes/
shoes
Top
models
Photo-graphers
Photo
studio
makers
Modelling
furniture
Poses and
animations
Furniture
MODELLING
SCHOOLS
Virtual
fashion
ecosystem
Hair
Skins
Event
builders
MAGAZINES
Shop
builders
Accessories
Body
shapes
DJs
Viachka, Giovacchini, Teigland, Lindqvist 2011

18. US$ 635,000 for a virtual asteroid!
•US$ 500,000 profit in 5 years
by Jon “Neverdie” Jacobs
•Entropia Universe with GDP
http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-just-
made-a-cool-half-million-from-the-sale-of-virtual-property/
>US$ 440 mln

19. VWs for effectiveness through virtual
collaboration and visualization
ProViWo: Professional Collaboration and Productivity in Virtual Worlds, http://vmwork.net/proviwo/

20. City planning in Uppsala and Stockholm

21. http://www.bbc.co.uk/news/technology-20492908

22. A spectrum of business virtuality possibilities
Virtuality
Fully real Fully virtual
NO activities
conducted in-world
ALL activities
conducted in-world

23. Cloud Party just acquired by Yahoo!

26. Overview
 Introduction to Virtual Worlds
 Immersion Benefits and Challenges
 Future of Value Creation

27. Hooker et al 2010
Marketing and branding
State of flow
- Greater purchase intent
- Positive brand attitudes

28. 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

29. Learning virtual
teaming skills
http://www.youtube.com/watch?v=uQa6vyG8Dkg

30. “ „
Armed with new connective tools,
consumers want to interact and
co-create value...
Prahalad and Ramaswamy, 2003
Slide from Kohler 2011

31. Accelerating innovation to meet global needs
Teigland et al. 2010
Integrating users in
development process
http://www.youtube.com/watch?v=2kMNWBU1Yb8

32. VWs offer significant affordances
Teigland et al 2010

33. 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.
 ….

34. Overview
 Introduction to Virtual Worlds
 Immersion Benefits and Challenges
 Future of Value Creation

35. Models of Knowledge Creation
The Firm
E.g., Microsoft
~ Built by employees within
organizational boundaries
vs The Collective
E.g., Linux
~ Built by users and distributed
freely regardless of affiliation
Teigland, Di Gangi, & Yetis 2012

36. Only a matter of time….
O’Driscoll 2009

37. A “Born Virtual” organization
Teigland, JVWR, 2010
Members Core team
Meetings
$$

38. OpenSimulator:
An open source value-creation ecosystem
Academic
Entrepreneur
Hobbyist
Large Firm
Non-profit
Local Public
Federal Public
Research Inst
SME Employee
Periphery
Teigland, Di Gangi, & Yetis 2012
USD 5.5mln in
development costs

39. Companies competing and collaborating on
through an open source platform

40. Moving into the Experience Economy
Pine Jr. & Gilmore 1998, 1999; DiGangi 2010

41. 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

42. ≈1.4 bln VW accounts under age 16
http://www.slideshare.net/nicmitham/kzero-universe-q1-2012
290 mln
220 mln
>200 mln
290 mln
42 mln (and 12 mln bought)

43. Developing international entrepreneurs?

44. 3D printing becoming more commonplace…

45. Kids exploring the link between
VWs and 3D printing
http://www.minecraftprint.com/

46. The future of immersion…
http://www.bbc.com/news/technology-19568451

47. Exploitation
Improving existing
value creation
activities
Exploration
Developing new
value creation
activities
Adapted from March 1991

48. From the mobility of goods
to the mobility of financial capital to …
Teigland, JVWR, 2010
...the “mobility” of labor?

49. From factories to office parks to….

50. Here today, gone tomorrow?

51. Where is the Firm?
24x7 Global Internet Collaboration + Open Source + 3D Printing
$60,000
$150
Available for free
download on
http://mashable.com/2013/02/13/robohand/

52. 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, e.g., marketing

53. If you love knowledge,
set it free…
Robin Teigland
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland
www.nordicworlds.net
@RobinTeigland
If you like this presentation and would like to
contribute to our research, we accept bitcoins:
14hs4JbnQLXE87GGzu84uXGaspmxmnLpwC.
Thank you!!!!!