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Stepping into the Internet:

Exploring a new world of value-creation
Who am I? (LinkedIn Inmaps)
Swedish
Industry
Research
Stanford

SSE

Wharton
McKinsey

Exec Ed
 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
Expats

In
Nordic
Region

Some
“Nordic”
players
Published
April 2013

http://www.amazon.com/The-Immersive-Internet-Reflections-Entangling/dp/1137283017
 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
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
Here comes the “Immersive Internet”

O’Driscoll, 2009
How many
usually think of
virtual worlds…
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
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

May 2006

July 2007

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

Virtual
worlds
today
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
“Clearly, if social activity migrates to
synthetic worlds, economic activity will
go there as well.” Castronova, 2006
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
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
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
http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-whojust-made-a-cool-half-million-from-the-sale-of-virtual-property/
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 inworld

ALL activities
conducted inworld
Cloud Party just acquired by Yahoo!
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
Marketing and branding

State of flow

- Greater purchase intent
- Positive brand attitudes
Hooker et al 2010
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

Integrating users in
development process
Teigland et al. 2010

http://www.youtube.com/watch?v=2kMNWBU1Yb8
VWs offer significant affordances

Teigland et al 2010
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.
 ….
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
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
Only a matter of time….

O’Driscoll 2009
A “Born Virtual” organization
Members

Core team

Meetings

$$
Teigland, JVWR, 2010
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
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

290 mln

220 mln

>200 mln
42 mln (and 12 mln bought)

290 mln

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

Exploration

Improving existing
value creation
activities

Developing new
value creation
activities

Adapted from March 1991
From the mobility of goods
to the mobility of financial capital to …

...the “mobility” of labor?
Teigland, JVWR, 2010
From factories to office parks to….
Here today, gone tomorrow?
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/
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
If you love knowledge,
set it free…

Karinda Rhode
aka Robin Teigland
robin.teigland@hhs.se
www.knowledgenetworking.org
www.slideshare.net/eteigland
www.nordicworlds.net
RobinTeigland

Photo: Lindholm, Metro
Photo:
Nordenskiöld

Photo:
Lindqvist

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Stepping into Internet-Virtual Worlds and Future of Value Creation

  • 1. Stepping into the Internet: Exploring a new world of value-creation
  • 2. Who am I? (LinkedIn Inmaps) Swedish Industry Research Stanford SSE Wharton McKinsey Exec Ed
  • 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
  • 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
  • 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. 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 May 2006 July 2007 http://www.gartner.com/it/page.jsp?id=1447613 Virtual worlds today
  • 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
  • 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 http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-whojust-made-a-cool-half-million-from-the-sale-of-virtual-property/
  • 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
  • 22. A spectrum of business virtuality possibilities Virtuality Fully real Fully virtual NO activities conducted inworld ALL activities conducted inworld
  • 23. Cloud Party just acquired by Yahoo!
  • 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. Marketing and branding State of flow - Greater purchase intent - Positive brand attitudes Hooker et al 2010
  • 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
  • 28. “ Armed with new connective tools, consumers want to interact and co-create value... „ Prahalad and Ramaswamy, 2003 Slide from Kohler 2011
  • 29. Accelerating innovation to meet global needs Integrating users in development process Teigland et al. 2010 http://www.youtube.com/watch?v=2kMNWBU1Yb8
  • 30. VWs offer significant affordances Teigland et al 2010
  • 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. 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. 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. Only a matter of time…. O’Driscoll 2009
  • 35. A “Born Virtual” organization Members Core team Meetings $$ Teigland, JVWR, 2010
  • 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. Companies competing and collaborating on through an open source platform
  • 38. Moving into the Experience Economy Pine Jr. & Gilmore 1998, 1999; DiGangi 2010
  • 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. ≈1.4 bln VW accounts under age 16 290 mln 220 mln >200 mln 42 mln (and 12 mln bought) 290 mln http://www.slideshare.net/nicmitham/kzero-universe-q1-2012
  • 42. 3D printing becoming more commonplace…
  • 43. Kids exploring the link between VWs and 3D printing http://www.minecraftprint.com/
  • 44. The future of immersion… http://www.bbc.com/news/technology-19568451
  • 45. Exploitation Exploration Improving existing value creation activities Developing new value creation activities Adapted from March 1991
  • 46. From the mobility of goods to the mobility of financial capital to … ...the “mobility” of labor? Teigland, JVWR, 2010
  • 47. From factories to office parks to….
  • 48. Here today, gone tomorrow?
  • 49. 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/
  • 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. If you love knowledge, set it free… Karinda Rhode aka Robin Teigland robin.teigland@hhs.se www.knowledgenetworking.org www.slideshare.net/eteigland www.nordicworlds.net RobinTeigland Photo: Lindholm, Metro Photo: Nordenskiöld Photo: Lindqvist

Editor's Notes

  • #11: https://picasaweb.google.com/lh/photo/cGAPUCiKe6LI6l5fM4rFqAComputer-generated, persistent spaceThree-dimensional, immersiveenvironmentExperienced by many people at once/interactivity
  • #12: https://picasaweb.google.com/lh/photo/cGAPUCiKe6LI6l5fM4rFqAComputer-generated, persistent spaceThree-dimensional, immersiveenvironmentExperienced by many people at once/interactivity
  • #13: 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
  • #14: http://www.readwriteweb.com/archives/number_of_virtual_world_users_breaks_the_1_billion.phpWhat 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.comhttp://www.smartmoney.com/Personal-Finance/Employment/Entrepreneurs-Doing-Business-by-Avatar/#ixzz0pp1H6D7N
  • #16: RT: traditional leadership further challenged as we move to a world of web 3.0 or the immersive internet…http://www.youtube.com/watch?v=-ahqjBeknT0
  • #17: http://journals.tdl.org/jvwr/article/view/866
  • #21: http://www.youtube.com/watch?v=Gl_ZspsTLls
  • #24: https://www.facebook.com/CloudParty
  • #28: 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.
  • #36: http://journals.tdl.org/jvwr/article/view/866
  • #40: 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
  • #43: http://www.youtube.com/watch?v=OhYvDS7q_V8
  • #46: (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.
  • #47: http://journals.tdl.org/jvwr/article/view/866
  • #48: Abandoned factory in Michigan: http://www.nebraskaweatherphotos.org/july2009photos.htmlOffice building: http://homeasnika.com/office-buildings/
  • #50: 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.'