Enterprise 2.0 and virtual worlds and a free discussion paper download

enterprise20shortpaper Today, I had the pleasure of facilitating four small group sessions at the Enterprise 2.0 Executive Forum 2009. The topic was virtual worlds and enterprise, and thanks to the participants in the groups, it turned into a very interesting exchange of ideas. The agenda of the overall forum was much wider: the use of Web 2.0 technologies in business. What’s impressive about this forum is the breadth of roles amongst participants – CEOs, CIOs, learning and development professionals, marketing professionals and general operational staff were in attendance.

As I’ve found before at these events, there are a growing number of people in business who see the potential of virtual worlds, but they struggle to get the same recognition throughout the business. That said, Australian business continues to lead the way in the area and it was great to see the level of passion for the opportunities virtual worlds provide.

Some other points that came out of the groups for me:

  • There’s a genuine acceptance of the potential of virtual worlds as an effective collaboration tool;
  • The awareness around the power of telepresence is growing steadily – close to half of the group members already understood the concept well and most had experienced its superiority over teleconferences or videoconferences first hand;
  • Enterprises want pilot virtual worlds but arguing the ROI case remains the main barrier, along with the significant end-user resistance that occurs;
  • That Second Life’s interface and the fact it’s a standalone application are major barriers to implementation;
  • There remains very high desirability for web-based worlds that deliver the level of complexity of Second Life
  • As part of my involvement I produced a four-page discussion paper: Virtual Worlds in the Enterprise – hype or high-performance?. It’s a bare-bones overview of the opportunities virtual worlds provide for business and a brief summary of five virtual worlds to watch (Second Life, VastPark, OpenSim grids, OLIVE and Metaplace) – there are obviously many more but as an overview they provide a good snapshot.

    Anyone regularly exposed to virtual worlds won’t get a lot out of the document, but if you’re one of our readers who’s just dipping their toe in the water, it provides a basic launch pad for a wider exploration.

    You can download Virtual Worlds in the Enterprise – hype or high-performance? for free by going to this page.

    You only need to provide your name and email address to be able to download a PDF of the paper.

    Virtual worlds: the next online banking

    westpac Aside from the group discussions on virtual worlds I facilitated yesterday, the only other time I witnessed them discussed at the Enterprise 2.0 Executive Forum 2009, was when Westpac’s David Backley spoke. As we reported last year, Westpac had trialled the use of Second Life to induct new employees in more remote locations.

    Backley reflected back on the pilot, stating that it “had worked well and had been a good idea”. That said, the pilot did not continue due to the departure of the project sponsor – there was no key person to keep the momentum going. The learnings for Backley were that it was a concept ahead of its time, and that until the cost of implementation and maintenance came down, it would be difficult to argue a cost-saving case. Given the tens of thousands of employees Westpac has, it’s a pretty downcast assessment of virtual meetings as cost-saver. That said, Westpac’s platform of choice was Second Life. With the growth in alternate platforms, those costs are reducing, but there’s still a long way to go in that respect.

    Aside from that, Backley provided some very interesting statistics around Westpac’s internet banking service. Presently, up to 6000 people are logged in to Westpac’s online banking service at any given time, with close to 700 thousand sessions a day. More value is transacted with online banking per day than is done in Westpac’s branches or call centres. When it was launched a little over a decade ago, the expectation was that perhaps a few thousand people Australia-wide would use the service. For me, that’s a key parallel with virtual worlds. It may be a ‘niche’ for business at present, but like internet banking, the public’s takeup is likely to surprise enterprises in a big way.

    The other similarity is in platform: the original internet banking options tended to be standalone applications, then they evolved to be web-based. That’s when the rate of adoption exploded. There’s a very obvious lesson there.

    ‘Life On Line’ launches

    lifeonline I received a media release yesterday, announcing the launch of a virtual TV show, Life On Line.

    It’s the latest project by Australian Steve Cropper, who produced a virtual worlds community called My Metaverse as well as a previous offering: The Late Show.

    I watched the pilot episode and like any pilot, it’s pretty raw. The overall theme of the show is the multitude of ways that people spend time online, from Facebook to Wikis. The topics are covered in a fairly breezy way and it works to an extent. What doesn’t work for me in any way is the canned laughter. To say it’s annoying is an understatement – at points it harks back to some early TV shows in the 60’s where laughter appears in spots where there’s nothing to laugh at.

    The news section featuring blogger Sigmund Leominster has promise, but the rest of the show to me seems to have a long way to go. It’s always great to see new options appear, and here’s hoping this is one that goes from strength to strength. The first episode launching today will determine to a large extent whether that’s the trajectory we’ll see.

    Update – Episode 1 is now live, so you can judge for yourself the real deal:

    Introducing: Tateru Nino

    about_tat-smlIt’s an understatement to say I’m really pleased to announce a further addition to the writing team at The Metaverse Journal.

    Tateru Nino is a significant addition too – she’s one of the first Second Life writers I read and she was incredibly supportive of our initial efforts when we started in 2006. It’s also worth reading our 2007 profile of Tateru to glean more of a picture of her.

    Tateru will be providing stories most weeks and she has a totally open brief. If you’ve read her work on Massively or its predecessor Second Life Insider, you’ll know how thorough her research is.

    No-one knows Second Life better and I for one am already excited about the stories she’ll be writing over coming weeks.

    Welcome Tateru!

    Victorian Bushfire support continues in Second Life

    Across the Second Life grid, fundraisers continue to occur for the victims of the Victorian bushfires. Tonight I heard about a fundraiser occurring at Bringiton’s Music Hall of Fame.

    bushfire_fundraiser

    Australian owner Bringiton Paine is hoping to raise up to half a million Linden Dollars overnight, so if you’ve got some spare time and want to have a dance, join the party and make a donation. There were more than 40 people having a good time when I jumped in, including a significant proportion from Austria, Germany and France to name a few. Another example of grass-roots fundraising at its best.

    Don’t forget there’s a growing list of Second Life vendors selling goods to raise money for the cause.

    Second Life vendors: Victorian bushfire relief

    lynne-bushfireAustralians and friends of Australians in Second Life have not surprisingly rallied to support the ongoing tragedy in Victoria. There’s a growing number of vendors selling goods in Second Life – a list of participating vendors is here.

    The picture above is one of the many examples of goods available. If you’ve got some spare Linden Dollars, it’s another great way to show support.

    Also, don’t forget our own t-shirt range on sale, with 100% of profits to the Red Cross appeal.

    Thanks to Mal Burns for the heads-up.

    Avatar Dog T-Shirts: Victorian Bushfire fundraiser

    avatardog_fundraiser Although there’s no shortage of fundraisers going on for the ongoing bushfire tragedy in Victoria, we want to do our own little bit to help.

    For February and March, 100% of profits from the sales of the t-shirt range will go to the Red Cross Bushfire appeal. We’ve kick-started things with a donation and it’d be great to add more to the total. More than a third of our readers are from Victoria and any gesture that can assist is worth a try.

    Check out the t-shirt range here – if anyone’s looking for customised wording we can set that up for orders of three t-shirts or more. We’ll report back on proceeds raised and donated at the end of March.

    A very honourable mention to Crikey’s fundraiser as well, featuring the work of our t-shirt’s artist, First Dog on the Moon – there’s three great signed cartoons available for purchase there.

    2009: the year the ATO wakes up?

    In recent weeks over on Terra Nova, Julian Dibbell has raised the issue again of taxation and virtual worlds. It’s worth a read purely to gain some insight into the complexity of the issue. As Dibbell states, it’s a lot more than the concept of taxing the sale of virtual goods, although that’s likely to be the driving force of any actions by governments.

    linden-exchange

    On the Australian front, back in October 2006 the Sydney Morning Herald and The Age reported on advice from the Australian Tax Office (ATO), which was:

    People trading in virtual worlds should consider very carefully whether they are conducting a business or a hobby

    Since then, there’s been no real change in approach from the ATO – I’m not aware of any campaign to enforce taxation on earnings in virtual worlds. One assumption would be that enforcement is so fraught with difficulties that it remains in the ‘too-hard’ basket, and rightly so. Even in the two or so years since the ATO made that comment, there are even more complicating factors, not least of which is the continued growth in virtual world platforms. Imagine trying to audit a virtual world entrepreneur who makes money in Second Life that he /she partly cashes out in US dollars whilst keeping the bulk in-world in Linden Dollars. If they then operate their business on an OpenSim grid with a different virtual currency, you can imagine the compliance nightmares for the entrepreneur, let alone the ability of the ATO to make any sense of the whole operation.

    That said, in a real-world environment of shrinking tax revenues and the growing focus by the US Government on the issue, it’s hard to imagine the ATO are going to continue to sit on their hands for another year. A sensible start would be an inquiry into the challenges of virtual taxation, with the opportunity for virtual world users to provide submissions on a way forward. It would be potentially disastrous if a heavy-handed approach eventuated, that impacted on the multitude of small business people operating successfully in worlds like Second Life now.

    The hobby/business continuum has always been a grey area – the only sensible approach for those operating business in virtual worlds is to assume they have a business, not a hobby. With that approach, whenever regulation does eventuate the transparency is already established. Increased regulation seems an inevitability – it’s how that regulation is implemented that will need to be watched closely.

    What are your thoughts – can you see the ATO getting more active in the area or is the cost of ensuring compliance too great for the potential returns?

    Australian classification of MMOGs

    Massively’s Tateru Nino has written a fascinating piece on the issue of games classification in Australia. Specifically, she’s confirmed with the Federal Attorney General’s Department that:

    “Where a sale is within the jurisdiction of the relevant State or Territory legislation,” Heffernan informed us, “it is a criminal offence under those laws to sell unclassified computer games. Enforcement of those laws is a matter for the States and Territories.”

    There may be no surprise in that to many people, but Tateru’s discovery is that most MMOs have no displayed evidence of having applied for Australian classification. After doing some digging for the story, she believes it’s a case of oversight combined with governmental miscommunication.

    Personally, I find it hard to believe that the major MMO publishers wouldn’t understand that Australia had a classification regime. The claim is that such publishers were advised in the past that MMOs didn’t need to comply, which is plausible given their nature in comparison to a standard 1-person game at the beginning. Now, MMOs are so widely used it’s a problematic argument to uphold. Behemoths like Blizzard’s World of Warcraft and its expansion packs aren’t labeled with any Australian classification – an unusual thing unless historic advice has been provided to say local classification wasn’t required. WoW in particular has nothing to fear from classification given how innocuous its gameplay is and its well implemented moderation options.

    crigil-westfall

    It’s more an issue of principle: the government only assesses applications made to it, there’s no proactive work done on ensuring new releases are classified. There’s an obvious problem here – if a less responsible publisher arrives on the scene to release an MMO that would rate R18+ , it can still hit the shelves if that publisher doesn’t apply for classification rather than being refused classification if they did apply. As Tateru mentions in her piece, Australia has the farcical situation of having no R18+ or X18+ categories for games, so everything at that level is refused classification. Add to that the fact that State governments are responsible for enforcing the law and it’s not hard to see how this situation has arisen.

    Essentially, the current voluntary application process combined with no ‘adult’ games ratings and the old Federal / State blameshifting actually fosters an environment where a non-ethical publisher would be mad not to release their MMO product unclassified. If they’re ever caught (which seems unlikely unless the MMO is beyond the pale), there’s a growing precedent of other MMOs selling tens or hundreds of thousands of locally unclassified copies. I’d have thought that would be one hell of a defense.

    Hopefully the Australian Attorney General’s department has another look at the issue, particularly the lack of adult game classifications, because the status quo is becoming more untenable as MMOs continue their growth in popularity. The risk is that a crackdown will occur without an expansion of the classification options – that would be nearly as bad as the status quo.

    Update: Tateru Nino has posted a follow-up story on the issue

    Announcing: Avatar Dog t-shirts

    avatar_dog2

    I’m really thrilled to announce we’ve got some t-shirts for sale. The primary purpose of the t-shirts is to raise money for Kiva, our charity of choice. Kiva provide funds to small businesses in developing countries and to date well over 57 million dollars have been lent, with over 97% of that repaid so that it can be reinvested in other businesses.

    Here’s how it works. Buy one of our Avatar Dog or Real Life Avatar t-shirts, and 50% of the proceeds go to Kiva. To clarify actual amounts – each t-shirt generates 20% commission, of which half goes to Kiva. The other half goes to us to assist in meeting our costs (paying writers, hosting, cost of t-shirt design etc). So on a standard t-shirt purchase, a minimum of $2.50 goes to Kiva.

    There’s a number of variants on offer including:

    – Avatar Dog in colour, no text
    – Avatar Dog in black and white, no text
    – Avatar Dog in colour: “What’s a metaverse? I call it home”
    – Avatar Dog in colour: “Furry for life”
    – Avatar Dog in black and white: “It’s an avatar’s life”

    We’re selling the t-shirts through Red Bubble, an Australia-based company that ship worldwide (they have offices in the UK and US as well). Their shipping costs are very reasonable: one t-shirt delivered to the USA is $29 US dollars shipped at present (only AU$36 or so delivered within Australia). There’s a choice of up to 22 different colours and four t-shirt styles.

    Most importantly, I’d like to give major kudos to the artist we commissioned to create the Avatar Dog. His name is First Dog on the Moon, and he provides a daily piece of brilliance for Crikey – read First Dog’s blog to see more of his excellent work. I’ve been a fan ever since seeing his work appear in Crikey and I was rapt when he accepted the commission.

    Comments welcome – we will be uploading further t-shirts (same design with different text) in coming months, and if popular enough we’ll also be commissioning First Dog for a second design. Enjoy!

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