Should the Business World Merge with Virtual Worlds? (Part II)

SLCN brings virtual television -- a professional video network designed to expand the in-world audience as well as deliver virtual entertainment to the real-world. SLCN has become a virtual entertainment conduit of Second Life programming.

As with traditional TV segments, SLCN segments feature talking heads -- of the avatars, that is. The avatars move around, but their mouths don't move, one of several reasons these segments are disconcerting. One

In one segment about IBM's Second Life outpost, IBM Business Center, what's odd is that the interviewer, Cybergrrl Oh, and Joanne Bald, Program Director, move to several locations around the IBM Business Center. Rather than cutting to the next location, the two avatars fly -- that's right, like super heroes, they fly from location to another, and Cybergrrl actually -- no, make that virtually, says, "Up, up and way!" (Apparently they decided against teleporting.) At one point, when they land, they're still talking with each other, but aren't in the same picture because one of the avatars landed in a different place. (They eventually find each other.) When they walk around the center, at one point, one of them walks backwards or zig-zags across the floor.

There's no one in the IBM Business Center, staffed 24/5, except for Cybergrrl Oh and the IBMer. Well, there's a concierge -- staffed by an IBMer volunteer from somewhere around the globe -- but he doesn't interact with the two guests.

There's even an online game for teens.

Seems like a lot of time, resources and effort has gone into developing the IBM SL site. It looks really cool. I wonder if it's generating any business for Big Blue -- or is the point of it not sales leads at all (though they spend time on information that can be downloaded). If the purpose is a recruiting tool to show that IBM is cool, then I think on that level, the IBM Business Center is a success. They did say there was a seven-month breakeven point.

By the way, most of the content available for download on SL is available on IBM's regular website.

For Part II about business and virtual worlds, check out my post from 5/22.

Businesses, Virtual Worlds don't mix

Interesting Wall St. Journal article about virtual worlds and businesses. Apparently they don't mix.

The article, "Businesses Take Avatars, Go Home," (available at http://blogs.wsj.com/biztech/2008/05/15/businesses-take-their-avatars-and-go-home/?mod=WSJBlog), found that 90% of businesses fail within 18 months, according to Gartner.

I'm not surprised that so many virtual world initiatives fail. Most people go to virtual worlds to avoid the real one. There was an amazing Journal profile last year of a man who spends hours and hours in Second Life, spending time with a woman who is not his wife -- even though he's married, in fact something of a newlywed. (His real-life was none too happy about his past time.)

What I did find surprising is that Gartner predicts that 70% of businesses will have their own virtual branded worlds -- and that these will be more effective than placing a brand in the context of some other company's virtual world.

Makes sense from a branding perspective. But that means there are more virtual worlds trying to grab people's attention. There are already too many social networking sites.

My prediction: the future will belong to mashups that combine social networking sites with virtual worlds.

Business Week's asks if there's is life beyond Second Life?

The online virtual world Second Life has become enormously popular, and has received massive hype as a place where businesses should set up a "virtual shingle" and connect with young, educated, wealthy people -- even though it could cost $15,000 or more. Reuters even "opened" a bureau to report on life in Second Life.

Our main concern: can a virtual presence serve as a lead generation tool in the real world?

Now, Business Week is reporting the first of what may be the Second Life backlash: "Beyond Second Life: Companies thinking twice about the popular virtual world are finding more security and flexibility in alternatives." http://www.businessweek.com/magazine/content/07_24/b4038417.htm.

As Business Week points out, there may be some real value to virtual worlds -- for education purposes (Stanford University’s Medical Media and Information Technologies center is using virtual worlds to give "medical students to practice responding to a triage situation in a mass-casualty event such as a chemical, biological or radiological attack—situations the students typically don’t have much opportunity to experience in reality). Or as an alternative to video conferencing.

But not necessarily for lead generation, making the upfront investment difficult to justify for B2B companies. Adidas and GM sell digital versions of Reeboks and Pontiacs, according to the article; I wonder if they post their virtual earnings each virtual quarter. Even some consumer companies -- like Coke and Starwood Hotels, have found Second Life gives them a virtual headache.

On the other hand, participating in online communities and networks may certainly serve as a worthwhile lead generation tool.