Archives for February 2008

Enterprise 2.0 forum – Business IS getting it

At today’s Enterprise 2.0 Executive Forum at Sydney’s Luna Park, I was encouraged to see that business is actually starting to get its head around virtual worlds as something much more than a brand recognition exercise. There were two events during the day that confirmed it:

Westpac and Second Life

Westpac’s Chief Technology Officer, David Backley, gave a wide-ranging presentation on Westpac’s use of Enterprise 2.0 tools. Part of the discussion was centred on the company’s use of Second Life for the induction of new employees.

The impetus for the move into Second Life was the geographical reality of Australia-based operations and the desire to look at a better way of inducting people into the organisation. Instead of waiting for a large enough group to start employment in Perth and then sending a trainer across, the induction can occur with individuals spread across different locations.

Backley claims that the feedback from the SL-based training was good and there was some amusement around feedback that some avatars dominated the induction process. Sound familiar?

On the future, Backley is upbeat on continuing involvement with virtual worlds. “We want to explore further” was the summary. He also alluded to Westpac questioning whether they would continue on the Second Life platform or investigate an internal virtual world option.

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Roundtable on virtual worlds and organisations

During the lunch break I hosted a roundtable discussion on virtual worlds with five interested business people. I was really impressed with the absolute open minds displayed on virtual worlds and their opportunities and challenges. These were people who work in very large organisations and there’s obviously momentum building toward establishing business cases for new technology approaches to business.

For a perspective on the wider Enterprise 2.0 discussions (Wikis, Blogging etc), check out the forum blog.

The media and marketing myths of virtual worlds

Gwyneth Llewelyn is a veteran Second Life blogger and has spent a lot of time digesting a very comprehensive market research report on virtual worlds and the myths that have been promoted by parts of the mainstream media. It’s a very detailed analysis of an even more detailed report but it’s well worth spending the time reading it.

The six myths expounded are:

1. Everybody is a freak or geek;

2. Users don’t know what’s real;

3. People think and act differently on a virtual world;

4. Virtual worlds are a lawless, anarchic jungle;

5. It’s all about pornography;

6. Virtual worlds alienate us and turns the society into something dangerous.

What do you think – are there other myths you’ve run across or do you believe some of those listed above are facts?

(Thanks to Massively for the heads-up)

The Watch – virtual worlds in the news

1. CNET – Mitch Kapor: 3D cameras will make virtual worlds easier to use. “Mitch Kapor, like many people, is well aware that virtual worlds are often very difficult to use. The founder of Lotus 1-2-3, who also happens to be the first investor in Second Life publisher Linden Lab and its chairman, spoke at the Metaverse Roadmap meeting here today on the topic of what can be done to make using virtual worlds a better experience”.

2. CNN money – IBM Launches PowerUp, a New Free 3D Multiplayer Virtual Science Game for the Classroom. “IBM (NYSE: IBM) is launching a free multiplayer online game, PowerUp (www.powerupthegame.org), challenging teenagers to help save the planet “Helios” from ecological disaster. The game is part of IBM’s TryScience initiative and will be launched at Engineer’s Week 2008 opening on February 16 in Washington, D.C. The game, which can be played alone or together, features a planet in near ecological ruin where three exciting missions for solar, wind and water power must be solved before sandstorms, floods or SmogGobs thwart the rescue”.

3. The Emory Wheel – Emory Conference Discusses New Reality of Virtual Worlds. “With graying hair, a grizzled face and a penchant for bow ties, Benn Konsynski, professor of business administration at Goizueta Business School, doesn’t fit the typical stereotype of an online gamer. But you should never judge a book by its cover: Konsynski takes his games very seriously — and he isn’t the only one. In fact, on Monday, Goizueta was filled with a variety of people from across the nation — academics, businessmen, tech enthusiasts and IT professionals — who all share the belief that gaming is much more than child’s play”.

4. Government Executive.com – Blogging the Virtual Government.”Not long from now, we will make laws, set policies, write regulations and create programs by first “playing” the likely consequences in synthetic worlds, says Anne Laurent, longtime observer of federal management and creator, just this year, of a new blog, “The Agile Mind.””.

5. Kotaku – Hello Kitty Online Detects No Sarcasm. “Hello Kitty Online hopes to transport its players into a world of sweetness and light. A world without hate. A world without fear. A world, apparently, without a sense of sarcasm. This morning I was pointed towards the main page for Hello Kitty Online, which features a quote I swear I’ve read before”.

6. Courant.com – The Pitfalls Of Online Role-Playing Games. “How would you change your life if you could simply flip a switch? If you could start it all over again, what would you do differently? Thousands of people are doing just that — in the virtual sense. Byork and Alyssa are young, attractive millionaires — married for less than a year. Byork made his fortune in the stock market and has retired at the ripe old age of 36. Alyssa, a former runway model, met Byork at a local dance club, and three week later, they were engaged”.

7. Terra Nova – Organising Virtual Events. “On the 18th December 2007 Twofour Learning and the Beyond Distance Research Alliance at the University of Leicester launched the Second Life Media Zoo project. The Island showcases a range of learning initiatives put forward by the Beyond Distance Research Alliance and is intended as a learning and research platform, aimed at gathering data on social interaction, behaviour and the importance of learning within a virtual 3D environment”.

8. Second Life Herald – Second Life Economy is in a Recession. “After the banking ban, there are commentators who state that the Second Life Economy is in a recession and then there are the opposing commentators that say that the Second Life Economy is not in a recession”.

A timely treatise on virtual worlds and enterprise

I’ve mentioned next week’s Enterprise 2.0 forum in Sydney previously. At Stanford University in the US, an event called MetaverseU is well underway and in recent hours a session was completed on the role of virtual worlds and work. It’s a timely coincidence of events. This excellent report is worth a read but I thought I’d highlight some of the key points from that information:

“The opportunity for these worlds to be entertaining pales in their opportunity for work,” said Reeves. “If we could figure out how to entertain a couple thousand call center employees and keep them in a virtual world while they were working and they stayed around for three months longer at their jobs, I think we’d have a multi-million dollar business on our hands.”

This is a key component that most businesses fail to grasp with virtual worlds and enterprise: it’s one of the likely ways in which productivity can be enhanced whilst ensuring some degree of entertainment. I doubt anyone would argue the reason for widespread use of the internet for non-work purposes on work time is anything other than boredom and a time-constrained lifestyle. Imagine a call centre employee being able to interact with a customer in a virtual world context, demonstrating the product they’re supporting or selling.

“Something the industry needs to understand is to put yourself in your customers shoes,” he explained. “They have a lot of risk in taking this technology on. They might get a lot of benefit, but there’s the risk that this technology isn’t going to be there tomorrow. We need to, as an industry and as customers, put a lot of work together to make this more of an affirming cycle.”

There’s no doubt that the majority of customers don’t see virtual worlds as an obvious business route, but as the opportunities that route offers combines with easier access and improved usability, the business equation becomes a lot more attractive.

The immediate use case for virtual worlds in the enterprise, said Steiger, isn’t dealing with his clients and partners. 70% of his business is with people he’s never met. The difference is in an employee-to-employee relationship. A hosted, behind-the-firewall solution could make that easier.

And that’s where the big success stories like IBM have demonstrated their key wins and why Australian companies like Westpac have made the investment.

“You can’t understand the primitive engagement that comes from puppeteering a cartoon character that looks kind of like us,” said Reeves. “When you look at the physiological response when an avatar gets touched, there’s a complementary reaction in the user. Brining those responses in for an ROI presentation is tough, but those responses that we see in the lab give me confidence that the bandwidth for communication is a value add for the engagement.”

Business is rightly skeptical about anything proposed for core operations that can’t demonstrate ROI – but the intrinsic nature of human interactions and the power virtual worlds bring to that can’t be underestimated. And the key point from the presentation for me:

The scary thing for executives, he says, is that guild leader gamers could be reporting to stockholders.

“IBM just did such a survey [looking for those gamers in management] and found 1000s,” said Reeves.

As the gamer generation is growing up and leading the workforce, game mechanics become much more appealing than spreadsheets for getting work done.

“To do that is not going to be quick in the enterprise,” said Reeves. “One strategy we’re looking at is to look at the recipe for why these worlds are engaging or why games are engaging and see what you can extract. Can you take the economies from the virtual environment? They’re fun and we know they light up the same neurological regions in the lab as real money does. They leave behind self-representation and 3D environments, but they’re worth looking at.”

It’s fair to say that developments in virtual worlds are something that enterprise needs to be at least aware of. Ideally they’ll have the resources to dip their toe in the water or even jump right in. The only option not on the table from an enterprise viewpoint is denial.

Hello Kitty virtual world on the way

Hello Kitty Online is likely to be one of the larger virtual world launches in 2008. If you know any child under twelve you’ll likely have been exposed to this franchise and it also has a teen / young adult following in some countries. It’s development is currently in the closed beta phase with a launch expected second half of this year.

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The description of the environment:

“This game is not just about fighting monsters – there are many activities for players to choose from. Aside from the monster-filled adventure areas, players can dig for ore in a mine, or range the forests to pick fruit from trees. Farming allows you to plant, grow and harvest your own crops; be sure to take good care of your crops so you will have a good harvest, and if you have a healthy farm you can even show it off to your online friends! You can use many other skills like cooking, tailoring, making furniture, and building houses. Commerce with other players will allow you to make a living and – perhaps – even get rich!”

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It’s classic game-based virtual world fare that when combined with a large fan base, is likely to generate a lot of interest. There’ll be no subscription fees – revenue is will be generated from in-world commerce.

The full media release text:

“Sanrio Digital’s “Hello Kitty Online” accepting players for closed beta

Hong Kong – February 13, 2008: Sanrio Digital (www.sanriodigital.com) today announced the closed beta launch of “Hello Kitty Online”, a Massively Multiplayer Online Role-Playing Game (MMORPG) based on the famous Sanrio characters. Hello Kitty Online allows players to explore and adventure in Sanrio’s fantasy world, a magical land that has recently fallen under the influence of a mysterious and malevolent power.

Players for the closed beta version are invited to apply at the official game site (www.hellokittyonline.com) or community site (www.sanriotown.com) and experience Hello Kitty Online in advance of the game release expected in the second half of 2008. Targeting female players from their pre-teens to twenties, Hello Kitty Online is the first installable MMORPG to set its sights on this demographic profile.

Hello Kitty Online is fully integrated with official Sanrio portal Sanriotown.com, which utilizes blogs, email, video sharing, Sanrio merchandise sales and more to create a digital and social experience accessible at any time. Players of Hello Kitty Online can extend their game experience on Sanriotown.com by interacting with other players, purchasing upgrades for their in-game characters, etc.

In addition to the standard MMORPG features such as customizable avatars, guilds, skill systems, and player economy, some of the outstanding Hello Kitty Online features include:

Unique game world: a persistent, beautifully designed environment where thousands of players and NPCs live, explore and quest in a magical world with real and imaginary zones such as the Flower Kingdom, Tokyo, Paris, Moscow, and more. Real world locations offer players the ability to learn about those places.

Unique NPCs: players will encounter and interact with popular Sanrio characters such as Hello Kitty, Badtz-Maru, My Melody, Keroppi, and many others, all animated with a variety of contextual facial-expressions.

Free to play: Hello Kitty Online is downloaded and played free of charge. There are no subscription fees.

Character upgrades: the Item Mall allows players to use real money to purchase special items and upgrades for characters.

Player housing: players can build and customize their own houses after acquiring the necessary licenses and materials. Houses depreciate over time and need to be maintained properly or will fall in disuse. A homeowner can invite someone to visit by making an in-game telephone call, and the player called will automatically be transported to the house if she agrees.

Crafting system: Hello Kitty Online has an extensive crafting system with output such as tools & weapons, farming implements & furniture, a wide variety of cooked dishes, and clothing for decorative and stat-modifying items. Raw materials include wood, minerals and metals, and crops.

Farming: players can run their own farms, which offer extra storage room and have the potential to produce important raw materials. The farming system incorporates a number of variables such as fertility, pest infestations, and crop characteristics.

A different focus: although it has a sophisticated combat system, unlike other MMORPGs combat need not be a primary objective for players of Hello Kitty Online. There are many puzzles to be solved, mini-games to compete in, story lines to follow, and adventures to experience.”

Weekend Whimsy

1. Play Golf in Hollywood Sim

2. Rollin And Tumblin – Quinton Whitman (live)

3. Silent In The Sanctuary Second Life Events

Enterprise 2.0 forum – Luna Park’s the perfect venue

On Tuesday 19th February, Luna Park will play host to the Enterprise 2.0 Executive Forum. Hosted by Ross Dawson’s Future Exploration Network, this is a forum where Australian business will hear about the innovations occurring with Web 2.0 and virtual worlds like Second Life.

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Yours truly is attending as a media partner for the event and I’m looking forward to discussing with attendees both the challenges and opportunities that virtual worlds provide. If you run a business that’s interested in innovation, it may be worth investigating a late registration for this event.

So why is Luna Park the perfect venue? In the lead-up to next week I was interviewed by Des Walsh from the newly launched Social Media Show. We talked on everything from business interest in virtual worlds to a 3D walkthrough of a human testicle in Second Life – but one point I made was that Luna Park was a metaphor for how businesses tend to see virtual worlds as a game. The reality is a lot different and event’s like next Tuesday’s will help to bring clarity to the issue.

The growth in Massive Multiplayer Online Games (MMOG)

If statistics and charts are your thing then you’ll love this site which provides a roundup of everything MMOG from a metrics viewpoint. Any business wondering whether there’s a market in virtual worlds need only spend a few minutes looking at the graphs to get a pretty clear answer…

Text-to-speech: Cepstral’s CEO speaks

Last week, text-to-speech company Cepstral announced they’d formed a partnership with virtual world IMVU to supply text-to-speech capability.

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Text-to-speech has huge potential in the virtual world context and is a feature Second Life users have been wishing for. We caught up with Cepstral’s CEO, Craig Campbell, to get a little more detail:

Lowell: What was the impetus for the Cassiopeian / Cepstral partnership?

Craig: Cepstral has a great deal of experience in the traditional Text-to-Speech marketplace, such as Interactive Voice Response (IVR) units. You know, the systems that allow you to call in to your bank and check the balance in your checking account, that sort of thing. However, one of Cepstral’s strengths has been our ability to create lots of interesting voices, not just the same old “your account balance is….” type of voice. We realized that fast-growing consumer web applications might benefit from Text-to-Speech (TTS) if it were simple to use and the voices had personality, such as the ones we’ve created.

IMVU interested us as a very popular Virtual World. Furthermore, they have an established digital goods marketplace. We wanted to enable an application within IMVU, and Cassiopeian is one of the most popular developers in IMVU. Her products are very professional and have a great reputation among IMVU users. When we approached Cassiopeian, they were very interested in adding voice capabilities to IMVU avatars, and have been a pleasure to work with.

Lowell: Is there any plans for providing the same technology in other virtual worlds like Second Life?

Craig: We’re definitely evaluating where to deploy the technology next. We’re looking at other virtual worlds, as well as other online environments. For example, we’re testing a Facebook application – VoicePoke – that allows users to send interesting messages to each other. Through a mash-up with Google’s translation service, the widget can even speak the message in different languages. We think this creative approach to using speech in web applications has a lot of room to grow; be it real-time surrogate voices for virtual worlds, messaging on social networks, or media shifting activities such as converting blogs and web text to a mobile, eyes-free audio format.

Our tagline is – “VoiceForge, We Make the Internet Talk™” – I share this to point out that we are not application developers, but rather the heart of speech on the Internet. We offer a free API that any virtual world or developer can incorporate. Our Software as a Service (SaaS) model means that developers needn’t ramp any hardware or bandwidth or linguistic knowledge in order to quickly embed a large-scale TTS feature inside their applications.

Lowell: Linden Lab have stated they’re working on the ability for people to morph their voices on the fly – will Cepstral always be focused on text-to-speech or do you see opportunities in live voice morphing?

Craig: Voice morphing technology will be an option that some users will use, as an alternative to using their real world voice in chat. But if you look at why people don’t like using their real world voice, there are four reasons: it suspends the fantasy notion of the character, for anonymity, for gender bending, and for non-native English speakers who may be able to type better than they can speak. We think that Cepstral’s Text-to-Speech solves those issues better than voice morphing. A user with voice morphing still hears their own voice, reducing the fantasy of their avatar; the user can often still be identified; a male voice with a higher pitch is not a female voice; and voice morphing does nothing for non-native speakers.

Of course, traditional Text-to-Speech doesn’t solve those problems, since most vendors offer one or two male and female voices. Cepstral’s differentiator is that we offer over 30 voices today, and we’re adding more. And those voices each have a distinct sound and personality. There’s a male Texan voice, a female British voice, and female African voice, a male Brooklyn voice, even a voice called “Damien” that sounds demonic. The user can select the voice that they want for their avatar, much like they select the clothes for their avatar – to match their avatar’s personality.

Lowell: What further developments in text-to-speech do you see occurring in coming years?

Craig: Cepstral is focusing on adding new voices, to give users more options. We have many new voices in the pipeline and foresee hundreds if not thousands of unique voices in the future. We have an alpha version of a tool that allows users to create their own custom voices called the VoiceBank™. And we’ll continue to improve the quality of the voices so that they sound even more natural.

What are your thoughts? Text-to-speech really appeals to me – is it something you’d use over voice morphing or standard voice chat?

Ad Farms, ABC Valentines and Addiction Survey

Three mini stories in one today:

1. Ad farms are the target of the latest Linden Lab crackdown. There’s likely to be widespread praise for this move.

2. Second Life’s ABC Island is having a Valentine’s Day event:

“Bring your sweetheart or come and make new friends, or both! Celebrate Valentine’s Day (Thurs 14 Feb TODAY!) at ABC Island at 8pm AEDT on the ABC Park ice rink, near the Sandbox, or roller skate around the ‘ABC logo’ path. Join the Valentine Heart Hunt! Free skates available, or bring your own trick skates”.

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3. We received this short missive this afternoon:

“I’m doing research on second life addiciton, it would be a great help if people would take a survey I set up

http://VirtualWorldAddiction.speedsurvey.com

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