Nordic Virtual Worlds Network_Some Preliminary Findings

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

creation

RobinTeiglandKarinda Rhode in SLStockholm School of Economicswww.knowledgenetworking.orgnordicworlds.net

Oct 2011

• Background• Some of NVWN’s findings

• Questions

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

will go there as well.” Castronova, 2006

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

Some “Nordic” players

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

Two primary levels of investigation

“Platform business”Providing a platform

for a virtual world

“User business”Using a virtual world for

business purposes

A spectrum of business virtuality

Virtuality

Fully real Fully virtualNO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm uses

VW technology

as tool Avapreneur &

VW firm part of

VW ecosystem of

economic activ

ity

A spectrum of business virtuality

Virtuality

Fully real Fully virtualNO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm uses

VW technology

as tool Avapreneur &

VW firm part of

VW ecosystem of

economic activ

ity

VWs as tool for RL firms for design, training,….

11

Interested in joining a workshop?

Please register at tiny.cc/t4c or email me at tkohler@hpu.edu

Kohler, Teigland, Giovacchini 2010

…and co-creation

A spectrum of business virtuality

Virtuality

Fully real Fully virtualNO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm uses

VW technology

as tool Avapreneur &

VW firm part of

VW ecosystem

of economic

activity

BOSL & CO

Web Radio

Beauty Pageant

Lifestyle Magazine

Auditorium

Model Agency

Shopping Mall

Modelling Academy

Lindqvist 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

DJs

Viachka, Giovacchini, Teigland, Lindqvist 2011

Virtual fashion

ecosystem

But few firms span the RL/VW boundary

Virtuality

Fully real Fully virtualNO activities conducted in-

world

ALL activities conducted in-

world

Entrepreneur

& RL firm uses

VW technology

as tool

Avapreneur &

VW firm part of

VW ecosystem

of economic

activity

Why?

Lack of ……economies of scale?

…economies of scope?

Different consumer

groups between RL & VW

https://marketplace.secondlife.com/p/MG-Dungeon-Lord-black-male-coat-outfit-by-Marlene/1447251

Two primary levels of investigation

“Platform business”Providing a platform

for a virtual world

“User business”Using a virtual world for

business purposes

“Opposing” forces: Current business models

limit overall VW industry growth

VW platform provider

s

“Closed”

business

models

SMEs Need for

seamlessness between

VWs

Income model

RL entrepreneurs keeping out…….

“I’m not going to risk my money and

time…..”

“The modeling and simulation technology is

crap…”

But it is only a matter of time….

O’Driscoll 2009

Open source VW platforms growing

OurBricks

Charities bridging RL/VW boundary

Teigland, JVWR, 2010

Core teamMembers

Meetings

$$

“Fashion allowsfor self-identification

and is driver for economic value”

Fashion industry leading the way....

“Entertainment more meaningful than real life”

“Meaningful interactionsbetween real peoplecreates real value”

Eyjólfur Guðmundsson, CCP Games, 2011

Hooker et al 2010

State of flow - Greater purchase intent - Positive brand

attitudes

Stardoll launches JC Penney clothes line

http://socialtimes.com/stardoll-online-fashion-community-launches-jc-penney-clothes-line_b38360

970 mln VW accounts under age 16

http://www.slideshare.net/nicmitham/kzero-universe-q2-2011

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

Tomorrow’s international entrepreneurs?

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

Pine Jr. & Gilmore 1998, 1999; DiGangi 2010

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

...the “mobility” of labor?

Karinda Rhode

aka Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net RobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

“We ain’t seen nothin’ yet!”