A timely treatise on virtual worlds and enterprise

I’ve mentioned next week’s Enterprise 2.0 forum in Sydney previously. At Stanford University in the US, an event called MetaverseU is well underway and in recent hours a session was completed on the role of virtual worlds and work. It’s a timely coincidence of events. This excellent report is worth a read but I thought I’d highlight some of the key points from that information:

“The opportunity for these worlds to be entertaining pales in their opportunity for work,” said Reeves. “If we could figure out how to entertain a couple thousand call center employees and keep them in a virtual world while they were working and they stayed around for three months longer at their jobs, I think we’d have a multi-million dollar business on our hands.”

This is a key component that most businesses fail to grasp with virtual worlds and enterprise: it’s one of the likely ways in which productivity can be enhanced whilst ensuring some degree of entertainment. I doubt anyone would argue the reason for widespread use of the internet for non-work purposes on work time is anything other than boredom and a time-constrained lifestyle. Imagine a call centre employee being able to interact with a customer in a virtual world context, demonstrating the product they’re supporting or selling.

“Something the industry needs to understand is to put yourself in your customers shoes,” he explained. “They have a lot of risk in taking this technology on. They might get a lot of benefit, but there’s the risk that this technology isn’t going to be there tomorrow. We need to, as an industry and as customers, put a lot of work together to make this more of an affirming cycle.”

There’s no doubt that the majority of customers don’t see virtual worlds as an obvious business route, but as the opportunities that route offers combines with easier access and improved usability, the business equation becomes a lot more attractive.

The immediate use case for virtual worlds in the enterprise, said Steiger, isn’t dealing with his clients and partners. 70% of his business is with people he’s never met. The difference is in an employee-to-employee relationship. A hosted, behind-the-firewall solution could make that easier.

And that’s where the big success stories like IBM have demonstrated their key wins and why Australian companies like Westpac have made the investment.

“You can’t understand the primitive engagement that comes from puppeteering a cartoon character that looks kind of like us,” said Reeves. “When you look at the physiological response when an avatar gets touched, there’s a complementary reaction in the user. Brining those responses in for an ROI presentation is tough, but those responses that we see in the lab give me confidence that the bandwidth for communication is a value add for the engagement.”

Business is rightly skeptical about anything proposed for core operations that can’t demonstrate ROI - but the intrinsic nature of human interactions and the power virtual worlds bring to that can’t be underestimated. And the key point from the presentation for me:

The scary thing for executives, he says, is that guild leader gamers could be reporting to stockholders.

“IBM just did such a survey [looking for those gamers in management] and found 1000s,” said Reeves.

As the gamer generation is growing up and leading the workforce, game mechanics become much more appealing than spreadsheets for getting work done.

“To do that is not going to be quick in the enterprise,” said Reeves. “One strategy we’re looking at is to look at the recipe for why these worlds are engaging or why games are engaging and see what you can extract. Can you take the economies from the virtual environment? They’re fun and we know they light up the same neurological regions in the lab as real money does. They leave behind self-representation and 3D environments, but they’re worth looking at.”

It’s fair to say that developments in virtual worlds are something that enterprise needs to be at least aware of. Ideally they’ll have the resources to dip their toe in the water or even jump right in. The only option not on the table from an enterprise viewpoint is denial.

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Will virtual worlds get a guernsey at Rudd’s summit?

In recent weeks there’s been significant coverage of Prime Minister Kevin Rudd’s summit (two examples here and here). Some commentators see it as an opportunity to get some ideas on the table bt it’s fair to say most see it as a talk-fest unlikely to generate any lasting policy initiatives. I wouldn’t be quite as cynical as that, but I have my doubts on how much can be achieved with a thousand people in a room for two days. The ego quotient alone will pose a challenge.

Given the focus is Australia’s future in 2020 you’d hope there’s at least a studied mention of the impact virtual worlds are likely to have in the future. The potential downsides of heavy virtual world use on its own should draw some interest let alone all the great opportunities to be had in the virtual sphere that could benefit Australia in coming years. Some of the more obvious challenges for government in regard to virtual worlds include:

1. Australia’s lagging broadband infrastructure;
2. Consumer protection in virtual world transactions;
3. Clarity on taxation and financial regulation;
4. Appropriately trained addiction and counselling services;
5. Expansion of research and development funding for business, non-profit, education and health in the virtual world sphere.

Who would you like to send to the summit to wave the flag? What questions / issues would you like to see raised?

(I’ve already declined an invitation - I’m washing my hair that night ).

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A personal comparison of Second Life and World of Warcraft

I’ve been a Second Life resident for well over a year now. In November I finally took the plunge and signed up for World of Warcraft and have been grinding through the early levels. I’ve reached Level 15 as both a Dwarf Warrior and Human Mage and have reached a little below that as a Night Elf. I feel I’ve spent enough time to grasp the basics of the game and to at least partially understand its appeal. I thought it might be worth doing a short critique of both platforms as they sit in a wider virtual world context.

A disclaimer - this is probably only going to interest someone who hasn’t used both platforms. Veteran users of both will find most of the points below fairly obvious. For brevity I’ll use WoW for World or Warcraft and SL for Second Life.

Onto the critique:

1. Second Life is by far the most ‘free’. WoW by its very nature requires rigidity as far as areas you can explore at particular stages of the game. If you’re a Level 1 human mage in WoW then you won’t be exploring the Westfall area as it’s inhabitated by critters of well over Level 10. You can go there but you’ll spend your time being killed time after time or constantly running to avoid each critter. This isn’t a criticism of WoW, just a gameplay reality. Second Life in comparison only has limitations set by users - if someone owns land in Second Life and doesn’t want you to be able to access it, then you won’t. Because there are no overarching game objectives in Second Life, you’re free to explore at will.

You’ll get used to being dead in the early stages of WoW - unless you have more experienced friends willing to help while you level up

2. Both are extremely social experiences. It’s a very obvious statement but when I signed up for WoW I was actually expecting that the gameplay would interfere with the great social interaction achieved in SL. What I didn’t realise was the social fun to be had in the main cities like Stormwind and Iron Forge. Plus, groups of avatars tend to congregate pretty much anywhere for a chat, some dueling or even some dancing.

Aussies socialising in SL

3. Graphically, it’s no contest. WoW has stupendous graphics that make SL look pretty poor in comparison, even with Windlight on its way. Of course, it’s very easy for WoW to provide great graphics when the main grunt work is being done by your own computer. SL’s centralised server model makes that much more difficult - it remains one of SL’s biggest challenges but it’s also one of it’s strengths - see point 1.

Even the barren areas are damn pretty

4. ‘Safety’ is an issue for both. The media attention on Second Life in regard to ageplay, gambling and addiction. WoW has similar challanges but they’re less overt than SL. Addiction is an issue that spans across all virtual worlds and it’s one that isn’t well understood, though that is changing. SL does have its Teen Grid but it’s under-utilised and arguably under-supported by Linden Lab.

5. Fun is provided differently. I’m going to make some broad statements here. Both WoW and SL are immense fun but in very different ways. For pure gaming / questing fun, WoW wins hands down. For more whimsical, sophisticated and free-ranging amusement, SL has the upper hand. No, that doesn’t mean WoW users are unsophisticated, nor that SL users are not interested in games / quests - the fact is they are very disparate beasts. There’s also no doubt there’s a significant cohort of people who participate in both worlds and my hunch is they do so because of the different experiences they offer.

It’s all about education in Second Life

So which is ‘best’? The answer of course is neither. I need to spend more time in WoW to fully grasp its possibiities but my gut feel at this stage is I prefer the less constrained environment of SL - it’s educational opportunities alone keep me coming back day after day. But if I want some fast paced gaming, then WoW is the place to be.

I’d be really interested to hear your thoughts. Have I got it totally wrong or does your experiences match those I’ve outlined above?

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Australia and Virtual Worlds - 2008 predictions

It wouldn’t be the end of a calendar year without making some predictions for the coming twelve months. Here’s a handful of predictions - some are fairly safe, others push the envelope a little:

1. Australia will see its first legal action in regards to a virtual world - Second Life is likely to be the battlefield and it’s likely to involve an intellectual property dispute or financial regulation issues.

2. Second Life viability will remain under question - there’s not likely to be a sudden improvement in the technical issues confronting the platform. The reality for Australian users of Second Life is at least another 6 months of laggy virtual world experience. There’s been rumours of a deal between Linden Lab and Telstra to locate Second Life servers locally - we can only hope. Expect lots of negative mainstream and Second Life blogosphere press if the status quo remains.

3. VastPark will flourish - we’ve covered the VastPark virtual world platform a few times and its evolution has been promising. If the platform delivers what it promises during 2008, much interest should be garnered. I wouldn’t be surprised to see VastPark acquired by one of the bigger players. Vastpark’s Australian operations make this one we’ll be watching closely.

4. Google will not launch a virtual world - they may have launched OpenSocial and continued to develop Google Earth but 2008 will not be the year of Google truly entering the virtual world domain.

5. There’ll be failures aplenty - World of Warcraft will remain the dominant gaming MMO and of the swathe of launches touted, some will obviously fail. Claims are being made about the Conan and Warhammer franchises making some serious inroads. I’m not convinced that either will be enormously successful although neither lack significant backing and associated marketing power. And it’s not as if Blizzard will be sitting on their hands - the Wrath of the Lich King expansion for World of Warcraft is on its way.

6. Australian business will remain conservative - 2007 saw the entrance of corporations like Telstra, the ABC and the REA Group into Second Life. I doubt there’ll be as many large presences launched in 2008. There’s still major skepticism out there about virtual worlds as a business tool - it remains only a research and development option in the eyes of business and 2008 is unlikely to change that. One disclaimer - if Google do launch a virtual world product, then all bets are off. On a related note - I predict Telstra’s SydSim development in Second Life will not cut the mustard for larger businesses and for those that do set up in that location, there’ll be consternation of how little traffic is generated.

7. Mainstream media will continue to get it wrong - aside from some of the more savvy technology journalists, mainstream media reporting on virtual world developments will remain hit and miss. 2007 had some real clangers and you can expect that to continue.

Most importantly, what are your predictions for the coming year? Make a comment here and see how right or wring you are when we revisit the predictions in a year’s time.

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Another perspective on virtual worlds as time-wasters

A friend of mine in Second Life, Leyah Renegade, wrote an observation on “wasting time” in Second Life that struck me as being particularly prescient:

“If you feel like you’re already wasting time, SL is as good a way as any to waste time. And it just might inspire you to do some good things in RL, or you might meet some cool people, or even sell some art in RL.

I got into it mainly to play music, with the nice bonus of being able to hang out with some of the homies that I don’t get to see often in RL. But now I’m doing a couple of very worthwhile educational projects, which have also allowed me to develop my building and scripting skills to the point where I’m now about to make quite a lot of real money messing around in SL. None of that would ever had happened if I’d gone into SL with the intention of being “productive,” but I think I’m coming out ahead of most people who do go in with that intent. Not that I would consider my time in SL “wasted” if the work thing had never happened, but it’s funny how things like that often work.

I think if you’re an artistic type, the ability to do things spontaneously and seemingly without purpose (”wasting time”) is actually extremely important, and it’s those activities that often dictate the course of your life moreso than the more goal-directed activities that most people find necessary. And I think we’re better off for that, frustrating as it may be to people with goals and deadlines. And SL is a perfect medium for doing completely spontaneous, imaginative things, as well as finding like minded people who “get” the need for that.”

A fitting perspective on a significant day for many Second Life “time wasters”

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Virtual Worlds and Australia 2007 Part 2

Following on from Part 1 of our 2007 roundup, let’s look at the second half of 2007.

July 2007

- Garden for the Missing was featured.
- we discussed the Australian Federal Police’s monitoring of virtual worlds.
- we interviewed the person who manages Hilary Clinton’s (unofficial) Second Life presence.
- active Australian users of Second Life climbed to nearly thirteen thousand.
- an OECD report confirmed how badly Australia lags in broadband speed.

- we stumbled across The Greenies
- the second Traffic Index was published - due to time constraints we haven’t continued this and no-one seems to have missed it
- Telstra offered land rentals on its suite of Second Life island sims.
- Thursday’s Fictions launched - another interesting Australian collaboration.
- Second Life poker machines were blown up.
- we started our regular Friday Weekend Whimsy posts.
- one of the worst ever pieces of mainstream journalism on Second Life received a little criticism.

August 2007

- the Gold Coast arrived in Second Life
- we went a second round with the World Stock Exchange’s Luke Connell.
- stability issues in Second kept biting.
- VastPark continued its promising evolution

- educator Kim Flintoff was profiled.
- Second Life residents could now get their real life face into Second Life.
- Victoria University joined the growing number of Australian universities in Second Life.
- the number of active Australian users of Second Life rose past 15 thousand.

September 2007

- the AIIA hosted a forum on Second Life and business.
- the CSIRO commenced education sessions on ABC Island.
- VastPark previewed their Worlds Collide upgrade.

- we paid Rezzable’s Toxic Garden a visit.
- a new virtual world, Metaplace, entered the marketplace.
- the number of active Australian Second Life users fell more than a thousand to under 14 thousand.

October 2007

- we discussed furries in-depth with Australian furry, Wolfie Rankin.
- the Melbourne Laneways presence launched in Second Life.
- the much hyped virtual world Project Outback bit the dust.
- we had a walk around La Trobe University Island.
- another significant drop in active Australian Second Life users occurred with the grand total under 12 thousand.

- the REA Group, best known for its realestate.com.au site, entered Second Life.
- the Australian Internet Industry Association also launched in Second Life.
- we documented the impact our ageplay stories had on our website.
- Linden Lab’s new search functionality in its Second Life viewer showed promise.

November 2007

- the Wonderland saga drew a lot of mainstream media attention.
- development of a replica Sydney CBD in Second Life was announced.
- Second Life’s first political party was profiled.
- veteran metaverse writer, Tateru Nino, was profiled.

- Australian musician in real life and Second Life, Dexter Moore, was also interviewed.
- an interesting 2007 Federal Election night was spent on ABC Island in Second Life.
- we celebrated a year reporting on virtual worlds.

December 2007

- age verification in Second Life began.
- ASIC makes a call on the operations of virtual stock exchanges.
- Anglicans in Second Life are led by a passionate New Zealander.
- an Australian company launched a Facebook-based MMOG.

- we profiled Rezzable’s Pavig Lok.
- active Australian users of Second Life stabilised at just under 12 thousand.

Every year contains chains of significant events and the microcosm of virtual worlds have been no different. There’ll be no shortage of predictions for 2008 and we’ll add to the queue in that respect in coming weeks. What is certain is we’ll be around to bring the latest news to you.

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Virtual Worlds and Australia 2007 Part 1

It’s not an understatement to say that it’s been a hell of a year for virtual worlds in the Australian context. So I thought it was worth doing a bit of a retrospective to put in context how much has occurred. Second Life has been our focus the past year but there’s been some other exciting developments.

January 2007
- we started off the year asking if 2007 would be Second Life’s year in Australia;
- Linden Lab announced they were going open source;
- we asserted a need for addiction services for the small proportion of Second Life users who may have some problems;
- ABC began the construction of their Second Life presence;

- the deluge of mainstream media coverage of Second Life continued, something that caught us a little by surprise.

February 2007

- we started to cover the metrics around the number of Australians using Second Life;
- the ABC sought input from residents for its upcoming development;

- we interviewed Logan Linden (Chris Collins);
- Project Outback was touted as a potential Second Life competitor;

March 2007

- we interviewed in-world counsellors, Wellman and Wellman.
- Telstra launched their Second Life presence.
- in the weeks after the Telstra launch, we reported on the significant influx of new Australian residents in Second Life.

- Australian-owned Second Life Cable Network launched.
- ABC launched their island presence, coinciding with a Four Corners documentary on Second Life.
- our own in-world presence launched.
- we profiled Gary Hazlitt

April 2007

- the Chebi Mosque transfixed us.
- we covered the gambling ban put in place by Linden Lab.
- VastPark caught our attention for the first time.
- we questioned the long-term viability of Linden Lab’s centralised server model for Second Life.

- we interviewed the Australian owner of the World Stock Exchange, Luke Connell. This has been one of our most viewed stories and caused a significant reaction at the time as you can see from the story’s comments.
- the number of active Australian users of Second Life reached 8000.

May 2007

- we asked whether Australian-based Second Life servers were on the horizon (oh the naivete!)
- personal boundaries in a virtual world were discussed.
- TMJ must have been in a philosophical mood during May as we also asked whether loneliness rather than community was the norm in Second Life.
- our monthly population update forecast an active Australian Second Life population of close to ten thousand.

- we published a story on Linden Lab’s crackdown on ageplay in Second Life. This has been our most viewed story ever and still receives enormous numbers of views each day - mainly from people typing terms like ‘child pornography’ into search engines.
- ABC Island had some problems. We were one of the only media outlets to not claim the problems were griefing - even ABC News ran the griefing line initially.
- we profiled Gizzy Electricteeth from IBM.
- the Australian Information Industry Association (AIIA) made its debut in Second Life.

June 2007

- our coverage of ageplay and pedophilia implications in Second Life continued.
- Windlight functionality started appearing in the Second Life viewer application.
- Anshe Chung and the World Stock Exchange defined their relationship.
- we briefly toured music-focused virtual world The Music Lounge (now called vSide).

- we completed a roundup of US Presidential Candidates and their presences in Second Life.
- Australia’s active Second Life population was stable at ten thousand.
- our inaugural traffic index of Australian activities in Second Life was published.
- we profiled the Second Life Cable Network (SLCN) team.
- the Australian Women’s Weekly jumped on the mainstream media bandwagon, giving readers a glimpse of Second Life.

Part 2 of the 2007 roundup can be found here.

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