Stanford Media X Event: Virtual Worlds Entrepreneurs Show The Way

August 20, 2010

Introduction

Media X at Stanford University hosted a workshop titled “Cashing In on Virtual Worlds: Entrepreneurial Insights for the Healthcare Industry.” The workshop was organized by Parvati Dev and Laura Kusumoto, who combine leading edge research, expertise and hands-on experience with virtual worlds and virtual worlds platforms.

In her introductory remarks, Ms. Kusumoto provided a perspective on the current state of virtual worlds. While the consumer-focused virtual worlds have seen notable platform closures (e.g. Google Lively, Metaplace, There.com, etc.), there has been positive activity on the enterprise side of virtual worlds, including virtual events and virtual trade shows.

Virtual Worlds: On An Upswing?

Kusumoto referenced a recent Gartner Hype Cycle Report that positioned “public virtual worlds” in a phase of “Trough of Disillusionment.”  The good news is that the subsequent phases are called “Slope of Enlightenment” and “Plateau of Productivity.”  Web 2.0, Tablet PCs and Wikis are positioned in this “Slope of Enlightenment” phase in Gartner’s cycle.

In the afternoon, we heard 5-minute pitches from entrepreneurs who were looking to launch virtual worlds businesses related to health care. These entrepreneurs showed me how virtual worlds (and notably, the surviving virtual worlds platforms) can embark on an upward path towards enlightenment.  Here’s my view on how virtual worlds are evolving:

Circling back to the Gartner Hype Cycle, I look back at the following progression:

  1. Technology Trigger: Artists and Hobbyists discover this technology for self-expression
  2. Peak of Inflated Expectations: Fortune 500 brands enter the mix, expecting a transformation of marketing and advertising
  3. Trough of Disillusionment: An assortment of virtual worlds platforms fold
  4. Slope of Enlightenment: Entrepreneurs develop innovative businesses that ride on top of virtual worlds platforms

The entrepreneurs who presented are leading the way towards enlightenment and the virtual worlds platforms (e.g. Second Life, Unity, OLIVE, etc.) stand to benefit.  The new business model is the purchasing of virtual land (or, the licensing of virtual world platform technology) that entrepreneurs leverage to drive monetization and revenue.

In a sense, this is similar to the smartphone app store – the entrepreneur creates intellectual property that rides on top of a “platform”.  The entrepreneur then leverages that platform to drive revenue to a direct sales channel (customers).

Noted Entrepreneurs

I’d like to highlight some of the presenting entrepreneurs (and their businesses).

Club One Island

Lose weight in a virtual world, on Club One Island.  Celeste DeVaneaux gave a fascinating overview of how participation in a virtual world program can facilitate habit change.  It’s one thing to urge people to eat slower – it’s another thing to show them how.  And, to have their own avatars practice the habit of doing so.  Club One Island runs on top of the Second Life platform.

Related: How I lost 20 pounds in Second Life (featuring Club One Island – by Hypergrid Business)

CliniSpace


CliniSpace is a collaborative virtual medical environment created by Innovation in Learning, Inc. (the company led by Parvati Dev, one of the event’s organizers).  The goal of CliniSpace is to provide virtual world-based training to physicians, nursing students, etc.  A virtual patient can start out completely healthy, but then be programmed to worsen, such that s/he requires CPR within 15 minutes.  The service runs on top of the Unity platform.

InWorld Solutions


InWorld Solutions “incorporates a wide range of avatars, content and features specifically designed to facilitate clinical and educational applications.”  InWorld can facilitate treatment for substance abuse by having patients in a virtual world, with their doctors observing from the same physical space – or, from within the virtual world.  Patients can experience peer pressure (virtually) and be advised and coached on how to respond.  InWorld runs on top of Forterra’s OLIVE platform.

Conclusion

These were just a few of the innovative business concepts brewing in one particular industry (health care) around virtual worlds.  As more entrepreneurs launch virtual worlds businesses, the platform vendors (e.g. Linden Lab / Second Life, Unity, Forterra / OLIVE) stand to benefit.  And importantly in this vertical, another entity stands to benefit: the human condition.

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Posted by Dennis Shiao

For Software Development Teams, The World is Flat (And Virtual)

October 18, 2009

Source: flickr (User: reinholdbehringer)

Source: flickr (User: reinholdbehringer)

Software development teams are traditionally located in the same (or nearby) physical office location(s).  It’s useful for these teams to work from adjacent cubicles (or offices) as the close proximity facilitates collaboration, mentoring and joint code reviews.  In fact, the increasingly popular agile software development methodology lists the following in its Agile Manifesto: “The most efficient and effective method of conveying information to and within a development team is face-to-face conversation”.

I won’t debate this particular point, but I do think that the trends are pointing towards distributed (vs. centralized) software development teams.  Some of the factors that are causing this trend:

  1. Outsourcing and off-shore development – while the core software development team may be based out of a single physical location, corporations are increasingly leveraging off-shore development – both for its lower costs and its ability to tackle ad-hoc product requirements and requests.
  2. Working from home / telecommuting trend – whether it’s a child’s doctor’s appointment or the local outbreak of the H1N1 virus, workers are spending more and more time getting their work done outside of the office.  Ever walk into a large software development shop’s offices during the afternoon?  You probably noticed that more than half the developers’ cubicles were unoccupied.
  3. Good developers can be hard to find – your software development team’s most attractive developers may be located half-way around the globe.  Talented developers are hard to find these days – so why not extend your team’s depth but bringing on remote workers?  As an example of a distributed team working together on a large project, consider the development of the Linux kernel – according to the Linux Foundation, “over 3700 individual developers from over 200 different companies have contributed to the kernel”.
  4. Software developers and product owner in separate locations – it’s not uncommon for the software developers to be in a different location than the business or product owner who’s driving the product and project’s requirements.  As the internal customer, the product owner is obviously a key member of the team.

With all of these factors at play, it seems reasonable that alternatives need to be in place when face-to-face meetings are not possible.  And I have good news on that front – with the emergence and maturation of virtual worlds / virtual meeting technologies, there are plenty of solutions available.

Some technologies available to distributed software development teams:

  1. Virtual Meetings – e.g. WebEx Meetings, GoToMeeting, Adobe Breeze, etc.  These technologies allow users to share their desktops and participate in shared whiteboards.  With the desktop sharing, this allows one developer to “look over the shoulder” as another developer codes.  The New York  Times recently published an interesting article on pair programming – with virtual meeting technology, the “pair” can reside in separate physical locations.  A shared whiteboard may not be useful for writing code together – however, it could certainly come in handy during the pre-coding stage, to map out an architectural diagram or outline a software program’s flow chart.  For a no-cost alternative, developers can interact with audio and video on Skype, which now includes a free desktop sharing feature.
  2. 3D / Immersive Technologies – these solutions provide similar features to a virtual meeting, but add a layer of 3D and immersiveness.  There’s Second Life, of course – and there are also solutions tailored for very specific enterprise use.  Options include Teleplace (formerly Qwaq) and Forterra Systems.  Teleplace offers a solution called Program Management that seems well suited to the distributed software development team – it offers text chat, VoIP chat, video via webcam, shared documents and shared applications (all in an immersive 3D environnment).  Similarly Forterra’s OLIVE platform enables collaborative meetings, training and more.

In this “flat world” that we now live in, I expect software development teams will increasingly collaborate virtually.

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Posted by Dennis Shiao

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