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

creation

RobinTeiglandKarinda Rhode in SLStockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteiglandnordicworlds.net

November 2014

Who am I? (LinkedIn Inmaps)

SSE

Exec Ed

Swedish IndustryResearch

Wharton

Stanford

McKinsey

vonorange.com

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

Some “Nordic” players

InNordicRegionExpats

http://www.amazon.com/The-Immersive-Internet-Reflections-Entangling/dp/1137283017

Published April 2013

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/

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

Overview

Introduction to Virtual Worlds

Immersion Benefits and Challenges

Future of Value Creation

Here comes the “Immersive Internet”

O’Driscoll, 2009

How many usually think

of virtual worlds…

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

Building skills in virtual environments

What are Virtual Worlds?

• Persistent, computer-simulated, immersive environments

• Shared socialization spaces with interactive content• Economic activity and transactions

VWs moving out of “Gartner hype cycle” trough

Virtual worlds today

http://www.gartner.com/it/page.jsp?id=1447613

May 2006

July 2007

The number of virtual worlds and users continues to rapidly increase

http://www.slideshare.net/nicmitham/kzero-universe-q1-2012

≈1.9 bln accounts

≈100 worlds

“Clearly, if social activity migrates to synthetic worlds, economic activity will

go there as well.” Castronova, 2006

The rise of Avapreneurs and Born Virtuals?

Leveraging global reach−Microemployees and pro-ams

−Global markets and local market knowledge

Challenging multinational corporations’ traditional resource

advantage?Teigland, JVWR 2010

“Avapreneur” = Avatar + entrepreneur

Clothes/shoes

MODELLING AGENCIES

Topmodels

Photo-graphers

Photo studio makers

Modelling furniture

Poses and animations

Furniture

HairSkins

Event builders

MAGAZINES

MODELLINGSCHOOLS

Shop builders

Accessories

Body shapes

DJs

Viachka, Giovacchini, Teigland, Lindqvist 2011

Virtual fashion

ecosystem

US$ 635,000 for a virtual asteroid!

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$ 500,000 profit in 5 years by Jon “Neverdie”

Jacobs• Entropia Universe with GDP

>US$ 440 mln

VWs for effectiveness through virtual collaboration and visualization

ProViWo: Professional Collaboration and Productivity in Virtual Worlds, http://vmwork.net/proviwo/

City planning in Uppsala and Stockholm

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

A spectrum of business virtuality possibilities

Virtuality

Fully real Fully virtual

NO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm

uses

VW tech

nology

as tool

Avapreneur &

VW firm part

of

VW ecosy

stem of

economic

activity

Cloud Party just acquired by Yahoo!

Overview

Introduction to Virtual Worlds

Immersion Benefits and Challenges

Future of Value Creation

Hooker et al 2010

State of flow- Greater purchase

intent - Positive brand attitudes

Marketing and branding

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

Learning virtual

teaming skills

http://www.youtube.com/watch?v=uQa6vyG8Dkg

Armed with new connective tools, consumers want to interact and co-create value...

Prahalad and Ramaswamy, 2003

„“

Slide from Kohler 2011

Accelerating innovation to meet global needs

Teigland et al. 2010

Integrating users in development

process

http://www.youtube.com/watch?v=2kMNWBU1Yb8

VWs offer significant affordances

Teigland et al 2010

Simulation Avatar

design

Multi-modal

communication

Co-creationArchiving

Immersion

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.….

Attitudes

Behaviors

Technology

Overview

Introduction to Virtual Worlds

Immersion Benefits and Challenges

Future of Value Creation

The Firm

The Collective

vs

E.g., Microsoft~ Built by employees within

organizational boundaries

E.g., Linux~ Built by users and distributed freely regardless of affiliation

Models of Knowledge Creation

Teigland, Di Gangi, & Yetis 2012

Only a matter of time….

O’Driscoll 2009

A “Born Virtual” organization

Teigland, JVWR, 2010

Core teamMembers

Meetings

$$

OpenSimulator: An open source value-creation ecosystem

AcademicEntrepreneurHobbyistLarge FirmNon-profitLocal PublicFederal PublicResearch InstSME EmployeePeriphery

Teigland, Di Gangi, & Yetis 2012

USD 5.5mln in development

costs

Companies competing and collaborating on through an open source platform

Moving into the Experience Economy

Pine Jr. & Gilmore 1998, 1999; DiGangi 2010

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

≈1.4 bln VW accounts under age 16

http://www.slideshare.net/nicmitham/kzero-universe-q1-2012

290 mln

220 mln

>200 mln

290 mln42 mln (and 12 mln bought)

Developing international entrepreneurs?

3D printing becoming more commonplace…

Kids exploring the link between VWs and 3D printing

http://www.minecraftprint.com/

The future of immersion…

http://www.bbc.com/news/technology-19568451

ExploitationImproving

existing value creation activities

ExplorationDeveloping new value creation activities

Adapted from March 1991

From the mobility of goods to the mobility of financial capital to …

Teigland, JVWR, 2010

...the “mobility” of labor?

From factories to office parks to….

Here today, gone tomorrow?

Where is the Firm?24x7 Global Internet Collaboration + Open Source + 3D

Printing

http://mashable.com/2013/02/13/robohand/

$60,000

$150

Available for free download on

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

Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net @RobinTeigland

If you love knowledge, set it

free…

If you like this presentation and would like to contribute to our research, we accept bitcoins: 14hs4JbnQLXE87GGzu84uXGaspmxmnLpwC.Thank you!!!!!