enhancing innovation through virtual worlds

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Stepping into the Internet: Stepping into the Internet: Exploring opportunities for Exploring opportunities for innovation innovation ------ ------ UT Austin, Managing UT Austin, Managing Innovation Innovation February 2011 February 2011 www.hhs.se www.hhs.se

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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. www.knowledgenetworking.org.

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Page 1: Enhancing innovation through virtual worlds

Stepping into the Internet: Stepping into the Internet: Exploring opportunities for Exploring opportunities for

innovationinnovation------------

UT Austin, Managing InnovationUT Austin, Managing Innovation

February 2011February 2011www.hhs.sewww.hhs.se

Page 2: Enhancing innovation through virtual worlds

Today’s presentationToday’s presentation

• Intro to Virtual WorldsIntro to Virtual Worlds• Some examples of using VWs for Some examples of using VWs for

innovationinnovation• Co-creation workshopsCo-creation workshops• Looking into the futureLooking into the future• QuestionsQuestions

Page 3: Enhancing innovation through virtual worlds

Here comes the “Immersive Internet”Here comes the “Immersive Internet”

O’Driscoll 2009O’Driscoll 2009

Page 4: Enhancing innovation through virtual worlds

How many usually think of virtual worlds…How many usually think of virtual worlds…

Computer-generated, persistent space Three-dimensional, immersive environmentExperienced by many people at once/interactivity

Page 5: Enhancing innovation through virtual worlds

Virtual Virtual socialsocial worlds vs virtual worlds vs virtual gaminggaming worldsworlds

Page 6: Enhancing innovation through virtual worlds

So, what can you do?So, what can you do?

•Ability to manipulate/create contentAbility to manipulate/create content•In some cases, virtual economy and currencyIn some cases, virtual economy and currency

Page 7: Enhancing innovation through virtual worlds

Improving corporate trainingImproving corporate training

Learning virtual Learning virtual teaming skills teaming skills through doingthrough doing

http://www.youtube.com/watch?v=uQa6vyG8Dkghttp://www.youtube.com/watch?v=uQa6vyG8Dkg

Page 8: Enhancing innovation through virtual worlds

IBM’s Innovation Jam

http://freshtakes.typepad.com/http://freshtakes.typepad.com/sl_communicators/2006/09/sl_communicators/2006/09/ibms_second_lif.htmlibms_second_lif.html

Facilitating virtual collaborationFacilitating virtual collaboration

Welch et al 2010Welch et al 2010

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

Merck’s Global R&D

Page 9: Enhancing innovation through virtual worlds

Working with customersWorking with customers

http://www.youtube.com/watch?http://www.youtube.com/watch?v=wsYVF25jHqw18v=wsYVF25jHqw18

Page 10: Enhancing innovation through virtual worlds

Today’s presentationToday’s presentation

• Intro to Virtual WorldsIntro to Virtual Worlds• Some examples of using VWs for Some examples of using VWs for

innovationinnovation• Co-creation workshopsCo-creation workshops• Looking into the futureLooking into the future• QuestionsQuestions

Page 11: Enhancing innovation through virtual worlds

Understanding customer needs

Developing products that meet those needs

+=Successfulinnovation

Innovation

From Kohler 2011From Kohler 2011

Page 12: Enhancing innovation through virtual worlds

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

Prahalad and Ramaswamy, 2003

„“

Slide from Kohler 2011Slide from Kohler 2011

Page 13: Enhancing innovation through virtual worlds

AvatarVirtual representationAppearance - Looks- Clothing - Accessories

Slide from Kohler 2011Slide from Kohler 2011

Page 14: Enhancing innovation through virtual worlds

Technological advancesTechnological advances

Technological advances

Real-timeMedia richnessInteractive collaboration

“When you are at Amazon.com 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)

Slide from Kohler 2011Slide from Kohler 2011

Page 15: Enhancing innovation through virtual worlds

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

User-generated content

Native creativityPlayful environmentFreedom to experiment

Slide from Kohler 2011Slide from Kohler 2011

Page 16: Enhancing innovation through virtual worlds

Need identification and idea generation

Concept and design Test and launch

Philips Ideation Quest

Kohler 2009Kohler 2009

Page 17: Enhancing innovation through virtual worlds

Steelcase Chair Designs

Need identification and idea generation

Concept and design Test and launch

Kohler 2009Kohler 2009

Page 18: Enhancing innovation through virtual worlds

KTM Ideation Quest

Need identification and idea generation

Concept and design Test and launch

Kohler 2009Kohler 2009 http://www.youtube.com/watch?http://www.youtube.com/watch?v=urIrLzFxPz0v=urIrLzFxPz0

Page 19: Enhancing innovation through virtual worlds

Today’s presentationToday’s presentation

• Intro to Virtual WorldsIntro to Virtual Worlds• Some examples of using VWs for Some examples of using VWs for

innovationinnovation• Co-creation workshopsCo-creation workshops• Looking into the futureLooking into the future• QuestionsQuestions

Page 20: Enhancing innovation through virtual worlds

RunAlong

Swedish web startup

Web community for female runners

Goal: Enable knowledge exchange from disperse locations about local markets

Travel for Change

Non-profit project

Volunteer travel platform

Goal: Co-design of Service Experience

Kohler, Teigland, Giovacchini, Helms 2011Kohler, Teigland, Giovacchini, Helms 2011

Page 21: Enhancing innovation through virtual worlds

Bringing together runners from across Bringing together runners from across globeglobe

Helms, Giovacchini, Teigland, Kohler, JVWR 2010Helms, Giovacchini, Teigland, Kohler, JVWR 2010http://www.youtube.com/watch?http://www.youtube.com/watch?

v=2kMNWBU1Yb8v=2kMNWBU1Yb8

Page 22: Enhancing innovation through virtual worlds

PRAGMATIC SOCIABILITY

USABILITY HEDONIC

VIRTUAL CUSTOMER

ENVIRONMENTS

Nambisan and Nambisan 2008

What should you think about?What should you think about?

Page 23: Enhancing innovation through virtual worlds

Provide clear navigation structure

Provide individual support

USABILITY

PRAGMATICDesign to inspire

Create immersive environments

HEDONICProvide challenging tasks

Nurture playfulness

SOCIABILITYEncourage collaboration

Engage in multi-modal conversations

Nambisan and Nambisan 2008

Page 24: Enhancing innovation through virtual worlds

What role does avatar appearance play?What role does avatar appearance play?

Avatar appearance influences one’s behavior and that of others

•More attractive avatars involve others better and more likely to be included in conversations and interactions

•Taller avatars are more confident, stronger negotiators

•People whose avatars resemble their physical selves focus more closely on task and more motivated to perform better

See speaker notes for sourcesSee speaker notes for sources

Page 25: Enhancing innovation through virtual worlds

“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.

Page 26: Enhancing innovation through virtual worlds

What role does the environment play?What role does the environment play?

Environment influences behaviorEnvironment influences behavior− Heightened telepresence, or sense of “being there”, leads to Heightened telepresence, or sense of “being there”, leads to

highly immersive virtual experience in which individual's highly immersive virtual experience in which individual's avatar becomes extended-self of participant in virtual world avatar becomes extended-self of participant in virtual world and individual concentrates acutely on his/her activitiesand individual concentrates acutely on his/her activities

Page 27: Enhancing innovation through virtual worlds

“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.”

Page 28: Enhancing innovation through virtual worlds

28

Interested in joining a

workshop?

Please register at

tiny.cc/t4c or email me

at [email protected]

Travel for ChangeTravel for Change

Kohler, Teigland, Giovacchini 2010Kohler, Teigland, Giovacchini 2010

Page 29: Enhancing innovation through virtual worlds

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1. Become aware

4. Get critical

3. Get creative

2. Get inspired

Page 30: Enhancing innovation through virtual worlds

30

Page 31: Enhancing innovation through virtual worlds

How does participation through an avatar impact the co-creation process?

How does participation through an avatar impact the co-creation process?

How does the environment impact the co-creation process?

How does the environment impact the co-creation process?

A

B

Food

for

Food

for

thou

ght

thou

ght

……

Page 32: Enhancing innovation through virtual worlds

Follow-up Follow-up survey and survey and interviewinterview

Page 33: Enhancing innovation through virtual worlds

Today’s presentationToday’s presentation

• Intro to Virtual WorldsIntro to Virtual Worlds• Some examples of using VWs for Some examples of using VWs for

innovationinnovation• Co-creation workshopsCo-creation workshops• Looking into the futureLooking into the future• QuestionsQuestions

Page 34: Enhancing innovation through virtual worlds

VWs moving out of “Gartner hype cycle” VWs moving out of “Gartner hype cycle” troughtrough

Virtual worlds today

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

>1 bln usersMay 2006

July 2007

Page 35: Enhancing innovation through virtual worlds

http://www.slideshare.net/nicmitham/kzero-radar-q1-2011?from=ss_embed

>1 bln users

Page 36: Enhancing innovation through virtual worlds

Building skills in virtual environmentsBuilding skills in virtual environments

My CVMy CV•Leading a virtual team of 30 Leading a virtual team of 30

individuals from across the globeindividuals from across the globe•Creating and successfully Creating and successfully executing strategies under executing strategies under

pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict

without face-to-face without face-to-face communicationcommunication

Teigland 2010

Page 37: Enhancing innovation through virtual worlds

““Practicing” entrepreneurshipPracticing” entrepreneurship

Page 38: Enhancing innovation through virtual worlds

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

there as well.”there as well.” Castranova, 2006Castranova, 2006

http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-1240578@N23/1240578@N23/

•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in

20122012

•US $222,000 raised at American Cancer Society Relay

in Second Life

•Swedish government granted Swedish government granted bbank license to Mind Bank in

2009

•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in

20122012

•US $222,000 raised at American Cancer Society Relay

in Second Life

•Swedish government granted Swedish government granted bbank license to Mind Bank in

2009

Page 39: Enhancing innovation through virtual worlds
Page 40: Enhancing innovation through virtual worlds

USD 635,000 for an asteroid!USD 635,000 for an 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/

USD 500,000 profit in 5 yearsUSD 500,000 profit in 5 years-Jon “Neverdie” Jacobs-Jon “Neverdie” Jacobs

Page 41: Enhancing innovation through virtual worlds

Emergent organizing in VWsEmergent organizing in VWs

Collaborating with Collaborating with like-minded like-minded

individuals to pursue individuals to pursue a visiona vision

Teigland, JVWR, 2010Teigland, JVWR, 2010

Page 42: Enhancing innovation through virtual worlds

Increasing pace of VW development!Increasing pace of VW development!

VWs on VWs on stickstick

Browser-Browser-based VWsbased VWs

SeamlessnessSeamlessness

http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://mediagrid.org/groups/technology/OFF.TWG/http://mediagrid.org/groups/technology/OFF.TWG/

"Create Once, "Create Once, Experience Experience

Everywhere”Everywhere” Expanding Expanding usesuses

For smart For smart phones and phones and tablet PCstablet PCs

Page 43: Enhancing innovation through virtual worlds

OpenSim: The open source of VWsOpenSim: The open source of VWs

CERN control CERN control room and room and particle particle

acceleratoraccelerator

Page 44: Enhancing innovation through virtual worlds

Coming soon!Center for

Entrepreneurship and

Innovation

Contact Serdar Temiz at

Page 45: Enhancing innovation through virtual worlds

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” -Jon “Neverdie” JacobsJacobs

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-Cory Ondrejka

Page 46: Enhancing innovation through virtual worlds

ConclusionVWs offer new opportunities for innovation and co-creation

Advances mostly in creation of innovation-related knowledge

Technological challenges remain but improving rapidly

Preliminary insights on how to manage co-creation workshops

Page 47: Enhancing innovation through virtual worlds

Today’s presentationToday’s presentation

• Intro to Virtual WorldsIntro to Virtual Worlds• Some examples of using VWs for Some examples of using VWs for

innovationinnovation• Co-creation workshopsCo-creation workshops• Looking into the futureLooking into the future• QuestionsQuestions

Page 48: Enhancing innovation through virtual worlds
Page 49: Enhancing innovation through virtual worlds

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@hhs.se

www.knowledgenetworking.owww.knowledgenetworking.orgrg

www.slideshare.net/www.slideshare.net/eteiglandeteigland

www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland

Karinda RhodeKarinda Rhode

aka Robin Teiglandaka Robin [email protected]@hhs.se

www.knowledgenetworking.owww.knowledgenetworking.orgrg

www.slideshare.net/www.slideshare.net/eteiglandeteigland

www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

If you love knowledge, set it

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