Creating real world results through VWs: Investigating entrepreneurship and innovation in virtual worlds ----NICe proposal Dr. Robin Teigland, aka
Karinda Rhode in SL Stockholm School of Economics www.knowledgenetworking.org www.slideshare.net/eteigland
Photo: Lundholm, Metro
October 2009
Project objectives • To explore how entrepreneurs and SMEs globally are using and could use VWs to improve competitiveness – To examine how work and business processes, such as product and service design, customer and supplier interaction, learning and training, may be transformed and made more effective through VWs
• To create a Virtual Center for VW Entrepreneurship & Innovation – To stimulate and facilitate knowledge network among organizations and individuals working in VWs in Nordic region and beyond to promote Nordic regional competitiveness through innovation, knowledge sharing and effective use of resources
Project’s focus
A pan-Nordic and multi-disciplinary team Sweden • Stockholm School of Economics, Center for Strategy and Competitiveness – – –
Associate Professor Robin Teigland Assistant Professor Göran Lindquist Research Associate Eilif Trondsen
• Uppsala Univ, CIND - Centre for Research on Innovation and Industrial Dynamics –
Professor Dominic Power
• MindArk AB –
Christian Björkman, Director of Special Projects
Finland • Univ of Turku, Institutions and Social Mechanisms –
Professor Antti Ainamo
• TEKES –
Development Manager Riku Mäkelä
Denmark • Roskilde Univ, Dept of Comm, Business and Info Technologies – –
Associate Professor Sisse Siggaard Jensen Post-Doc Lisbeth FrØlunde
Norway • Univ of Agder, Center for Entrepreneurship – –
Professor Jan Inge Jenssen Research Associate Björn-Tore Flåten
• StatoilHydro –
Principal Researcher Knut-Olav Fjell, Research and Technology
• Stormfjord –
Director of R&D Thorolf Toenjum
Iceland • Icelandic Academy of Arts –
Director Fashion Dept Linda Björg Arnadottir
Timing and Budget • Timing: March 2010 to February 2012 • Total budget NOK 5.9 mln – NICe: NOK 3.1 mln – Co-financing: NOK 2.8 mln
• Decision expected in December-January
My current VW activities • Building relationship with MindArk • Understanding brand equity and customer engagement in VWs • User-based innovation in SL • Virtual teaming with Duke CE • Center for Entrepreneurship in SL with Univ of Agder Center for Entrepreneurship • Networks of VW entrepreneurs with Reykjavik
800,000 users USD 420 mln turnover 2008
Entropia Universe by MindArk Virtual universe with real cash economy
− Fixed exchange rate to US Dollar, 1 USD = 10 PED − Five banks auctioned for USD 404,000 in 2007 − Real life bank license granted by Swedish Government to MindArk Bank in March 2009
Ability to develop skills and sell virtual goods
− Island sold for USD 26,500 in 2004 − Asteroid space resort sold for USD 100,000 in 2005 − Clothes Against Violence – limited edition virtual jackets sold for more than same model of real world jackets
A business model like the real world
− Raw materials and skills required to build / create − Goods deteriorate and need to be replenished
Jon “Neverdie� Jacobs in Entropia
Self-made millionaire in Entropia USD 100,000 for asteroid space resort USD 90,000 for bank license http://www.youtube.com/watch?v=Mg4TwOqVprw&feature=related
Increasing effectiveness in traditional industries “Soon all fashion designers will be originating their designs and managing the production in virtual worlds….Why such a dramatic change? Economics, pure and simple.” Shenlei Winkler, Director Fashion Research Institute
Learn how to become an SL Fashion Designer at Fashiontech.wordpress.com/
Understanding brand equity and customer engagement in VWs
• With Florida State University fashion design • New brands designed and showcased during annual Miss Calypso on Planet Calypso • Users / players vote on designs • Clothing potentially produced in real life
Understanding brand equity and customer engagement in VWs • RQ: How does creation of corporate brand presence within VW coupled with customer engagement activities enhance brand perception and lead to greater purchase intention? • Theoretical background: Flow and brand equity • Practical application: Intersection of user involvement, brand equity perceptions, and consumer behavior in VWs • International Team (Listed alphabetically): – – – –
Ph.D. Candidate, Rob Hooker, The Florida State University, United States Dr. David Paradice, The Florida State University, United States Dr. Robin Teigland, The Stockholm School of Economics, Stockholm Dr. Molly Wasko, The Florida State University, United States
Enabling SME user-driven service innovation through virtual worlds
Enabling SME user-driven service innovation through virtual worlds • RQ: Can user innovation activities in VWs enable SMEs to acquire foreign market knowledge necessary for internationalization? • Theoretical background: User innovation, international entrepreneurship • Research methodology: Design research • Process design inputs: – Lead user method, co-creation – Virtual Customer Environment components of customer experience: » Hedonic, Pragmatic, Sociability, Usability
• Research artifact: 4 step process, complemented by workshop environment in Second Life
Our innovation workshops bring together users from across the globe
Improving virtual teaming and crosscultural skills in virtual worlds
Designed with Duke Corporate Education Task: To build a bridge in a virtual team
My current VW activities • Building relationship with MindArk • Understanding brand equity and customer engagement in VWs • User-based innovation in SL • Virtual teaming with Duke CE • Center for Entrepreneurship in SL with Univ of Agder Center for Entrepreneurship • Networks of VW entrepreneurs with Reykjavik
See you in world! Karinda Rhode
Photo by H. Lindholm, Metro
aka Robin Teigland robin.teigland@hhs.se www.knowledgenetworking.org www.slideshare.net/eteigland