nordic virtual worlds network research_feb 2011

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Stepping into the Internet: Stepping into the Internet: Exploring a new world of Exploring a new world of value-creation value-creation February 2011 February 2011 www.hhs.se www.hhs.se

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My keynote presentation on virtual worlds and research by the Nordic Virtual Worlds Network research project (www.nordicworlds.net) to the MIT Research Group in February 2011in Sweden at the School of Business at Stockholm University.

TRANSCRIPT

Page 1: Nordic Virtual Worlds Network Research_Feb 2011

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

creation creation

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

Page 2: Nordic Virtual Worlds Network Research_Feb 2011

Today’s presentationToday’s presentation

• What are Virtual Worlds?What are Virtual Worlds?• What is NVWN What is NVWN

researching?researching?• QuestionsQuestions

Page 3: Nordic Virtual Worlds Network Research_Feb 2011

Here comes the Immersive InternetHere comes the Immersive Internet

O’Driscoll 2009O’Driscoll 2009

Page 4: Nordic Virtual Worlds Network Research_Feb 2011

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: Nordic Virtual Worlds Network Research_Feb 2011

But what else can they be?But what else can they be?

•Ability to manipulate/create contentAbility to manipulate/create content•Virtual economy and currencyVirtual economy and currency

http://www.youtube.com/watch?v=Quh2OiPHkm8

Page 6: Nordic Virtual Worlds Network Research_Feb 2011

Tomorrow’s education & training?Tomorrow’s education & training?

Learning virtual Learning virtual teaming skills teaming skills

through experiencethrough experience

http://www.youtube.com/watch?v=N8XPmp0qGyghttp://www.youtube.com/watch?v=N8XPmp0qGyg

Page 7: Nordic Virtual Worlds Network Research_Feb 2011

The last generation to “attend” college?The last generation to “attend” college?

http://features.csmonitor.com/innovation/2009/10/15/the-future-of-college-may-be-http://features.csmonitor.com/innovation/2009/10/15/the-future-of-college-may-be-virtual/virtual/

Page 8: Nordic Virtual Worlds Network Research_Feb 2011

Facilitating the virtual workforce Facilitating the virtual workforce

Welch et al 2010Welch et al 2010

Professional Collaboration and Productivity in Virtual Worlds (2009-2012) - ProViWo

http://vmwork.net/proviwo/

Page 9: Nordic Virtual Worlds Network Research_Feb 2011

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 10: Nordic Virtual Worlds Network Research_Feb 2011

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

Page 11: Nordic Virtual Worlds Network Research_Feb 2011

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 12: Nordic Virtual Worlds Network Research_Feb 2011
Page 13: Nordic Virtual Worlds Network Research_Feb 2011

Today’s presentationToday’s presentation

• What are Virtual Worlds?What are Virtual Worlds?• What is NVWN What is NVWN

researching?researching?• QuestionsQuestions

Page 14: Nordic Virtual Worlds Network Research_Feb 2011
Page 15: Nordic Virtual Worlds Network Research_Feb 2011

NVWNNVWN

• Team of 9 PartnersTeam of 9 Partners• Interdisciplinary: Communication, Design, Economic Interdisciplinary: Communication, Design, Economic

Geography, Entrepreneurship, Information Geography, Entrepreneurship, Information Technology, Innovation, Strategy Technology, Innovation, Strategy

• International: Denmark, Finland, Iceland, Norway, International: Denmark, Finland, Iceland, Norway, Sweden, USASweden, USA

• Interorganizational: Academia, Industry, Public SectorInterorganizational: Academia, Industry, Public Sector

• Timing: March 2010 to February 2012Timing: March 2010 to February 2012• Total budget approx. USD 1 mlnTotal budget approx. USD 1 mln

• Nordic Innovation Center: USD 500,000Nordic Innovation Center: USD 500,000• Co-financing by partners: USD 500,000Co-financing by partners: USD 500,000

Page 16: Nordic Virtual Worlds Network Research_Feb 2011

An international and interdisciplinary An international and interdisciplinary teamteam

Sweden Sweden Stockholm School of Economics, Stockholm School of Economics,

Center for Strategy & Center for Strategy & CompetitivenessCompetitiveness− Associate Professor Robin TeiglandAssociate Professor Robin Teigland− Assistant Professor Göran LindquistAssistant Professor Göran Lindquist− Research Associate Eilif TrondsenResearch Associate Eilif Trondsen− Research Assistant Serdar TemizResearch Assistant Serdar Temiz

Stockholm UniversityStockholm University− PhD Candidate Hanna von Schantz PhD Candidate Hanna von Schantz − PhD student Elia GiovacchiniPhD student Elia Giovacchini

Uppsala Univ, CIND - Centre for Uppsala Univ, CIND - Centre for Research on Innovation and Research on Innovation and Industrial DynamicsIndustrial Dynamics− Professor Dominic PowerProfessor Dominic Power

MindArk ABMindArk AB− Christian Björkman, Chief Marketing OfficerChristian Björkman, Chief Marketing Officer

Silver Design ABSilver Design AB− Ulf Berlin, CEOUlf Berlin, CEO− Patrick GeuderPatrick Geuder

DenmarkDenmark Roskilde Univ, Dept of Comm, Roskilde Univ, Dept of Comm,

Business and Info TechnologiesBusiness and Info Technologies− Professor Sisse Siggaard Jensen Professor Sisse Siggaard Jensen − Assistant Professor Lisbeth FrAssistant Professor Lisbeth FrØØlundelunde

FFinlandinland Univ of Turku, Institutions and Univ of Turku, Institutions and

Social MechanismsSocial Mechanisms− Professor Antti Ainamo Professor Antti Ainamo − Dr. TitianaDr. Titiana-Petra Moldovan-Petra Moldovan

TEKES TEKES − Development Manager Riku MäkeläDevelopment Manager Riku Mäkelä

IcelandIceland Icelandic Academy of ArtsIcelandic Academy of Arts

− Director Fashion Dept Linda Björg Director Fashion Dept Linda Björg ArnadottirArnadottir

NorwayNorway Univ of Agder, Center for Univ of Agder, Center for

EntrepreneurshipEntrepreneurship− Professor Jan Inge Jenssen Professor Jan Inge Jenssen − Assistant Professor Björn-Tore FlåtenAssistant Professor Björn-Tore Flåten− PhD Student Ahmad AlarajPhD Student Ahmad Alaraj

USAUSA Western Carolina UniversityWestern Carolina University

− Assistant Professor Paul M DiGangiAssistant Professor Paul M DiGangi

Page 17: Nordic Virtual Worlds Network Research_Feb 2011

Project ObjectivesProject Objectives

− To explore how entrepreneurs and To explore how entrepreneurs and SMEs globally use and could use VWs SMEs globally use and could use VWs to improve competitiveness to improve competitiveness

− To create a Virtual Center for VW To create a Virtual Center for VW Entrepreneurship & InnovationEntrepreneurship & Innovation

Page 18: Nordic Virtual Worlds Network Research_Feb 2011

““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 19: Nordic Virtual Worlds Network Research_Feb 2011

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 20: Nordic Virtual Worlds Network Research_Feb 2011

“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

Page 21: Nordic Virtual Worlds Network Research_Feb 2011
Page 22: Nordic Virtual Worlds Network Research_Feb 2011

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 23: Nordic Virtual Worlds Network Research_Feb 2011

The rise of Avapreneurs and Born Virtuals?The rise of Avapreneurs and Born Virtuals?

−Microworkers and pro-amsMicroworkers and pro-ams−Markets and market Markets and market

knowledgeknowledge−Microtransactions Microtransactions

Challenging multinational Challenging multinational corporations’ traditional corporations’ traditional

resource advantage?resource advantage?www.slentre.com/second-life-style-photolife-for-second-life/

“Avapreneur” = Avatar + entrepreneur

Teigland, JVWR, 2010Teigland, JVWR, 2010

Page 24: Nordic Virtual Worlds Network Research_Feb 2011

EntrepreneurshipEntrepreneurship

Leveraging the affordances of the emerging Leveraging the affordances of the emerging 3D internet for entrepreneurial ”next 3D internet for entrepreneurial ”next practices”: Selected case studies from the practices”: Selected case studies from the Nordic creative industriesNordic creative industries−Machinima, Education, HealthMachinima, Education, Health

Lisbeth Frölunde & Björn-Tore FlåtenLisbeth Frölunde & Björn-Tore Flåten

To be presented at BCERC 2011:Babson To be presented at BCERC 2011:Babson College Entrepreneurship Research College Entrepreneurship Research ConferenceConference

Page 25: Nordic Virtual Worlds Network Research_Feb 2011

Understanding customer needs

Developing products that meet those needs

+=Successful innovation

Innovation

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

Page 26: Nordic Virtual Worlds Network Research_Feb 2011

InnovationInnovation

How are Nordic virtual world platform How are Nordic virtual world platform providers managing innovation processes?providers managing innovation processes?−Habbo, MindArk/Entropia Universe, RealXtend, IC Habbo, MindArk/Entropia Universe, RealXtend, IC

YouYou

Antti Ainamo, Titiana MoldovanAntti Ainamo, Titiana Moldovan

Page 27: Nordic Virtual Worlds Network Research_Feb 2011

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

Prahalad and Ramaswamy, 2003

„“

Innovation

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

Page 28: Nordic Virtual Worlds Network Research_Feb 2011

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 2010Kohler, Teigland, Giovacchini 2010

Page 29: Nordic Virtual Worlds Network Research_Feb 2011

A design research approach to co-A design research approach to co-creationcreation

Helms, Giovacchini, Teigland, Kohler, JVWR 2010Helms, Giovacchini, Teigland, Kohler, JVWR 2010

Integrating users in Integrating users in development development

processprocesshttp://www.youtube.com/watch?http://www.youtube.com/watch?

v=2kMNWBU1Yb8v=2kMNWBU1Yb8

Page 30: Nordic Virtual Worlds Network Research_Feb 2011

Leveraging VW affordancesLeveraging VW affordances

Simulation Avatar

design

Multi-modal

communication

Co-creationArchiving

Immersion

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

Page 31: Nordic Virtual Worlds Network Research_Feb 2011

Enhancing knowledge creation through Enhancing knowledge creation through VWsVWs

Nonaka & Toyama 2003; Teigland, Kohler, Giovacchini, Helms 2010Nonaka & Toyama 2003; Teigland, Kohler, Giovacchini, Helms 2010

ImmersionAvatar design

Multi-modal

communication

Interactivity &

Archiving

Page 32: Nordic Virtual Worlds Network Research_Feb 2011

How do users’ representations as avatars influence their contribution to

co-creation workshop?

What is the real value of virtual co-creation?

A

B

Open Open questionquestion

ss

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

Page 33: Nordic Virtual Worlds Network Research_Feb 2011

33

Interested in joining a

workshop?

Please register at

tiny.cc/t4c or email me

at [email protected]

Travel for Change

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

Page 34: Nordic Virtual Worlds Network Research_Feb 2011

OpenSim Project: OpenSim Project: Exploring private-collective model Exploring private-collective model

in virtual world development in virtual world development communitiescommunities

Teigland, Giovacchini, DiGangi, Flåten 2011Teigland, Giovacchini, DiGangi, Flåten 2011

Page 35: Nordic Virtual Worlds Network Research_Feb 2011
Page 36: Nordic Virtual Worlds Network Research_Feb 2011

Organizational AgentsOrganizational Agents

Dahlander & Wallin (2006)

Page 37: Nordic Virtual Worlds Network Research_Feb 2011

A Private-collective Community Model

von Hippel & von Krogh (2006)

Page 38: Nordic Virtual Worlds Network Research_Feb 2011

User Interests

Balancing the needs of both parties

Organizational Interests

vs

Page 39: Nordic Virtual Worlds Network Research_Feb 2011

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

DJsVirtual

agglomerations

Fashionindustry

Viachka, Giovacchini, Teigland, Lindqvist 2011Viachka, Giovacchini, Teigland, Lindqvist 2011

Page 40: Nordic Virtual Worlds Network Research_Feb 2011

Which professions and industriesWhich professions and industrieswill will notnot be revolutionized? be revolutionized?

40

Page 41: Nordic Virtual Worlds Network Research_Feb 2011

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

...the “mobility” of labor?...the “mobility” of labor?Teigland 2010Teigland 2010

Page 42: Nordic Virtual Worlds Network Research_Feb 2011

Today’s presentationToday’s presentation

• What are Virtual Worlds?What are Virtual Worlds?• What is NVWN What is NVWN

researching?researching?• QuestionsQuestions

Page 43: Nordic Virtual Worlds Network Research_Feb 2011

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

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