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Arvetica: Second Life for Businesses - Introduction

This is an introduction to Second Life for businesses, which we presented in an arveticast at our premises.

Check out more at www.arvetica.com

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Arvetica: Second Life for Businesses - Introduction

  1. 1. Second Life for Businesses what is your company’s strategy for the virtual world? January 2007
  2. 2. Second Life level of expertise? Second Life I can do it novice expert
  3. 3. agenda understand execute explore design 1 2 3 4
  4. 4. UNDERSTAND what SL is?
  5. 5. Second Life (abbreviated to SL) is an Internet-based virtual or synthetic (3D) world in which everything is built by its residents.
  6. 6. SL is inhabited by residents , which is how the users of SL are called. They “live” in this virtual world in the form of an avatar .
  7. 7. AVATAR = USER
  8. 8. analogy: think marionette
  9. 9. " avatar " stands for a user's “virtual” representation (e.g. three-dimensional model). It is derived from the Sanskrit word Avatāra:incarnation.
  10. 10. your virtual marionette : your avatar socialize exchange trade
  11. 11. exploring identity
  12. 12. Second Life has most ingredients of a society sociology politics culture conversation entertainment no comment symbols economics property
  13. 13. user numbers accounts (curiosity): 4.1+ mio. logged last 60 days: 1.5+ mio. online simultaneously: 16k – 32k premium accounts ($): growing user hours: growing
  14. 14. Second Life actors coding authority represent collaborate engage hold events trade test « live » create/build socialize trade create govern sell land users companies
  15. 15. architecture & building activities entertainment selling fun selling relaxation
  16. 16. does SL have an economy?
  17. 17. basics of a market economy economics is usually defined as the study of choice under scarcity. [Scarcity] forces us to choose where to allocate our resources as to obtain the best mix of desires that we can. Castronova 2005 A market economy is an economic system in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a free price system [...]. In a market economy businesses and consumers decide what they will produce and purchase. Wikipedia 2007
  18. 18. <ul><li>you retain copyright and intellectual property rights of all content you create in Second Life </li></ul><ul><li>Linden Lab retains ownership of the account and related data, regardless of intellectual property rights [..] </li></ul>creating objects & property rights
  19. 19. owning land & building islands price: US$1,675 (65’536 m2) monthly land fee: US$295
  20. 20. trade in SL
  21. 21. Linden Dollar : L$ Second Life &quot;currency&quot; is a limited license right available for purchase or free distribution at Linden Lab's discretion, and is not redeemable for monetary value from Linden Lab.
  22. 22. currency exchange SL operates a currency exchange, the LindeX. Use and regulation of the exchange is at Linden Lab's sole discretion. Daily Volume: 200’000+ USD
  23. 23. banking in SL source: 239 New Accounts L$60’599’122 Total Volume 7 day Statistics 47.9 Avg. Transactions/hour 13’944 Total account L$117’745’637 Total deposits Ginko Financial Statistics, Feb 1, 2007
  24. 24. Greenspan vs. Rosedale source: Aggressively adding money to the currency supply as the overall size of the economy increases. Reducing the supply of money by aggressively raising interest rates when inflation begins to rise. Means of maintaining price stability Jeff Bezos, CEO of Amazon.com Four US presidents Powerful backer Ensures that the L$ doesn’t appreciate against the US$ by making it impractical and unattractive to keep Linden Dollars in savings accounts. Ensured low interest rates by making it impractical and unattractive to keep US$ in savings accounts. Technique to encourage maximum spending Second Life doesn’t really have regulations Youthful acolyte of objectivist Ayn Rand Libertarian tell Controls currency rate by manipulating money supply Controlled currency rate by manipulating money supply God-like power $7.7 million per month $1 trillion per month Size of economy supervised
  25. 25. EXPLORE the SL business space
  26. 26. RL company presence in SL represent/ advertise events trade collaborate engage/ build relations user/avatar (client) interaction business utility (future revenue) prototype and test
  27. 27. represent <ul><li>buy land or island </li></ul><ul><li>build presence </li></ul><ul><li>announce (press) </li></ul><ul><li>wait for SL residence </li></ul>
  28. 28. advertise <ul><li>create billboards </li></ul><ul><li>buy ad space </li></ul><ul><li>advertise to SL residents </li></ul>
  29. 29. collaborate in-world <ul><li>enter SL with your employees </li></ul><ul><li>find/build meeting space </li></ul><ul><li>invite </li></ul><ul><li>collaborate </li></ul>
  30. 30. <ul><li>buy land or island </li></ul><ul><li>build object or prototype to test </li></ul><ul><li>announce (e.g. press/SL) </li></ul><ul><li>wait for SL residence </li></ul><ul><li>gather feedback and improve </li></ul>prototype & test
  31. 31. <ul><li>buy land or island </li></ul><ul><li>create playful experience </li></ul><ul><li>announce (e.g.press/SL) </li></ul><ul><li>(advertise to SL residents) </li></ul><ul><li>wait for SL residents </li></ul><ul><li>engage visitors </li></ul>engage
  32. 32. trade <ul><li>buy land or island </li></ul><ul><li>build object to trade </li></ul><ul><li>announce (e.g.press/SL) </li></ul><ul><li>(advertise to SL residents) </li></ul><ul><li>wait for SL residents </li></ul><ul><li>trade </li></ul>
  33. 33. events <ul><li>buy land or island </li></ul><ul><li>organize event </li></ul><ul><li>announce (e.g.press/SL) </li></ul><ul><li>(advertise to SL residents) </li></ul><ul><li>wait for SL residents </li></ul><ul><li>hold event </li></ul>
  34. 34. build relations <ul><li>plan cross-channel relationship </li></ul><ul><li>buy land or island </li></ul><ul><li>announce (e.g.press/SL) </li></ul><ul><li>cross-channel marketing </li></ul><ul><li>build & maintain relationships </li></ul>
  35. 35. innovative projects <ul><li>brainstorm for innovative projects </li></ul><ul><li>design & implement </li></ul><ul><li>succeed </li></ul>
  36. 36. what about the future?
  37. 37. which scenario is more likely? <ul><li>2009: Second Life was nothing than a fad - nobody talks about it anymore </li></ul><ul><li>2009: Second Life is &quot;business as usual&quot; – the majority of big brands is present in SL </li></ul>
  38. 38. LIFT’07 workshop virtual worlds will play an important role for Fortune Global 500 companies YES or NO
  39. 39. SL – condemned to fail (NO) 7 of 15 people believe that virtual worlds will NOT play a major role in Dec 2009 (5 of these persons believe that virtual worlds will eventually play an important role within an extended timeframe) 7 NO votes
  40. 40. SL – the party goes on? (YES) 8 of 15 people believe that virtual world will play an important role in Dec 2009 (of these 8 nobody believed SL would be this virtual world) 8 YES votes
  41. 41. DESIGN & IMPLEMENT a SL presence
  42. 42. do’s <ul><li>know your « customers » </li></ul><ul><li>provide fun, sticky interaction </li></ul>don’ts <ul><li>don’t slow down things </li></ul><ul><li>don’t do a one-shot </li></ul>Second Life lessons do’s / don’ts
  43. 43. lack of interactivity / they got the SL concept wrong learn from BMW
  44. 44. understand execute explore design 1 2 3 4 develop a SL presence
  45. 45. http://nwn.blogs.com/nwn/2006/10/why_mixed_reali.html#more statistics
  46. 46. design studios
  47. 47. THE END http://www.slideshare.net/Alex.Osterwalder/arvetica-second-life-for-businesses-introduction
  48. 48. 2 day Second Life immersion workshop 19-20 April 2007 Arvetica, Geneva
  49. 49. next arveticasts <ul><li>Improving the Strategy Process – what strategists can learn from architects </li></ul><ul><ul><li>Thu, April 12, 2007 </li></ul></ul><ul><li>Strategy Grand Tour </li></ul><ul><ul><li>Thu, April 26, 2007 </li></ul></ul>
  50. 50. Arvetica. who we are.
  51. 51. We believe that superior economic performance comes from sharing knowledge and not from keeping it. Open Knowledge
  52. 52. We do not try usual formulas. We deliver unique solutions through multidisciplinary approaches, ad-hoc teams, visual thinking , and rigorous project management . We have high impact. Consulting
  53. 53. <ul><li>Arvetica is a management consulting company. </li></ul><ul><li>We design strategies , develop business models and manage projects for private equity investors, start-ups and large organizations. </li></ul>
  54. 54. arvetica.com