1. Eilif Trondsen, Ph.D. Program and Research Director SRI Consulting Business Intelligence (SRIC-BI) Virtual Worlds for Learning & Training: Should You Care—And Why? Workforce ADL Colab and Cure4Kids February 28, 2008 http://www.sric-bi.com/VWC bringing the future into focus

2. 2 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Agenda  Background: Me, SRIC-BI and VWC  Virtual Worlds (VWs): Definition and Evolution  Growing Diversity and Dynamics  Applications and Players  VWs for Learning & Training: What are Our Clients and Others Starting to Implement and Explore  What’s Ahead?  Demo of Second Life

3. 3 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Background My Work in Learning and VWs  Have been working for SRI International (formerly Stanford Research Institute) or SRIC-BI—a spin-out from SRI located on the SRI campus in Menlo Park, CA)—for 28 years  Launched and led Learning on Demand (LOD) research program for 10 years—focusing on the use of emerging technology in learning and training (clients in Asia, Europe and North America). Authored 35 research papers and reports.  Founder and chairman of eLearning Forum—Open Silicon Valley-based forum for discussion of learning technology issues.  Recent publications: Virtual Worlds for Learning and Training (Dec 06); Implementation and Operating Perspectives on Virtual Worlds for Learning (Mar 07); Co-authored Another Life: Virtual Worlds as Tools for Learning (eLearn Magazine, Mar 07)

4. 4 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Background SRI Consulting Business Intelligence (SRIC-BI) Explore/Research  Scan™  Explorer  VALS™  Virtual-Worlds Consortium  Consumer Financial Decisions Focus/Consulting  Strategy Development  Opportunity Discovery  Technology Management  Digital Futures  Technology and Market Assessment  New Product Strategy

5. 5 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Background Work on Innovation and Learning at SRI and SRIC-BI SRI Consulting Business Intelligence:  Scan™: Examines emerging developments in technology and business that will affect virtual worlds  Explorer: Monitors numerous technologies that enable or complement virtual worlds  VALS™: Researches consumer behavior online and offline  SRIC-BI Consulting:  Innovation and Commercialization  Opportunity Discovery  Technology and Market Assessments SRI Consulting Business Intelligence:  Scan™: Examines emerging developments in technology and business that will affect virtual worlds  Explorer: Monitors numerous technologies that enable or complement virtual worlds  VALS™: Researches consumer behavior online and offline  SRIC-BI Consulting:  Innovation and Commercialization  Opportunity Discovery  Technology and Market Assessments SRI’s Center for Technology in Learning:  Design of Virtual-Worlds Learning Environments  Learning Assessment SRI’s Center for Technology in Learning:  Design of Virtual-Worlds Learning Environments  Learning Assessment  Innovation Partnerships  AI Lab  Speech Tech and Research Lab  Computer Science  Engineering and Systems Division  Innovation Partnerships  AI Lab  Speech Tech and Research Lab  Computer Science  Engineering and Systems Division

6. 6 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Background SRI and SRIC-BI Virtual-World–Related Research and Technology Development  A 2002 National Science Foundation grant to SRI’s Center for Technology in Learning (CTL) supported a starter kit for educational virtual worlds.  Today, CTL is developing learning environment and activity in Second Life for language learning and to foster innovative behavior.  SRI’s Engineering Systems Group and Artificial Intelligence Center have worked on many virtual-reality projects with potential application in virtual worlds.  In summer 2006, SRI hosted first Metaverse Roadmapping Summit.  SRIC-BI’s Explorer service has been monitoring and researching virtual environments for a number of years.  SRIC-BI’s LoD program published two reports: Virtual Worlds for Learning and Training and Implementation and Operating Perspectives on Virtual Worlds for Learning.

7. 7 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Background Virtual-Worlds Consortium for Innovation and Learning (VWC) Global initiative of leading practitioners and researchers to explore current and future practices in the use of virtual worlds in innovation and learning— with primary focus on the corporate environment. VWC draws on resources and networks of SRI, SRIC-BI, and our partners and clients worldwide. SRIC-BI’s VWC offers:  Meetings and workshops around the world, including in Menlo Park, California; London, England; and Tokyo, Japan  Presentations and discussions in Second Life and in webinars  Comprehensive research—driven by client input and needs  Prototype evaluations to understand emerging innovation and learning applications for virtual worlds  Monthly Viewpoints reporting insights from our ongoing monitoring activities

8. 8 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds (VWs): Definition and Evolution Key Characteristics of Virtual Worlds  Shared Space: The worlds allow many users to participate at once.  Graphical User Interface: The worlds depict space visually, in styles ranging from 2-D “cartoon” imagery to more realistic 3-D environments.  Immediacy: Interaction takes place in real time.  Interactivity: Many worlds allow users to alter, develop, build, or submit customized content—but differences exist among virtual worlds.  Persistence: The worlds continue to exist regardless of whether individual users are logged in and active.  Socialization or community: The worlds allow and encourage the formation of in-world social groups like guilds, clubs, cliques, housemates, and neighborhoods.

9. 9 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds (VWs): Definition and Evolution VWs: Virtual Social Worlds + MMOGs  VW platforms  VW/MMOG subscriptions  Enterprise systems  Using VW to make internal and external business process improvements MMOGs Social VWs Open* Closed/ Private** *Second Life; PlayStation Home, There etc **Forterra, Protonmedia, Caspian MMOGs: Massively Multiplayer Online Games Selected Trends:  Fast growing VW economies  Adoption of open source VWs  VW Technology innovation  VW for collaborative work Selected Questions:  How will M&A impact market?  Will a 3D Web emerge?  Will Google Earth merge with virtual worlds? Applications Entertainment Commerce Marketing/Advertising Collaborative Work Training/Education Opportunities  149 MMOGs listed in Wikipedia  These include:  3D Dungeons & Dragons Universe  Final Fantasy  Guild Wars  Lineage II  World of Warcraft  Wde range of SVWs exist—targeting pre-teens, teens and adults  Recent analysis shows that $1 billion invested in 35 virtual worlds companies in the past 12 months

10. 10 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds (VWs): Definition and Evolution Virtual Worlds and Technologies  Open Croquet  Open-Source Metaverse  Uni-verse (EU)  Beyond 2  ProtonMedia  Forterra  Caspian Learning  Second Life  There.com  Active Worlds  Runescape  Habbo Hotel  MapleStory  Cyworld  Wonderland (Sun)* Closed  Sony Playstation Home* Platforms/Architectures Enabling VWs: Open-Source Projects Open  Qwaq Forums  Multiverse Network 2D/3D * Under development; 2D: Two dimensional

11. 11 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds (VWs): Definition and Evolution The Evolution of Virtual Worlds Buzz/ Consumer and Investor Interest Virtual Reality Video Games MMORGs Virtual Worlds 2007 1990s VR 1.0 Bust: Hype was too loud. Computers were too slow. Networking was too complicated. Motion sickness was a problem. Source: Business Week, 2 April 2007 Second Life VR 2.0 Growing Recognition of Benefits and Value of Video Games VR = Virtual Reality; MMOGs = Massively Multiplayer Online Games

12. 12 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Growing Diversity and Dynamics Drivers, Dynamics and New Opportunities from Virtual Worlds Increasing Diversity of VW platforms, Tools and Technologies Rapid Growth in Numbers of Users in Consumer and Enterprise Markets Users Exploring and Finding new Applications for Entertainment and Business Increasing Dynamics  Growing Experimentation  New Innovation Frontier  Extensive Learning and Sharing  Tool for Global, Collaborative Work Increasing Dynamics  Growing Experimentation  New Innovation Frontier  Extensive Learning and Sharing  Tool for Global, Collaborative Work New Opportunities  Linking RWs and VWs  New Services and Experiences  New Efficiencies and Work Processes New Opportunities  Linking RWs and VWs  New Services and Experiences  New Efficiencies and Work Processes RW: “Real” World VW: Virtual World

13. 13 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Growing Diversity and Dynamics Emerging “Serious Applications” of Second Life and other VWs  Collaborative workAll industries with distributed project work (IBM)  Learning & TrainingUniversities and industry (Harvard; NMC; Apple)  Prototyping and ExperimentationArchitecture and Construction (Starwood Hotels)  Customer Service & InteractionFinancial Services and Clothing (Wells Fargo; American Apparel)  Trust Building and SocializationAll industries using virtual, distributed teams (IBM, Sun, Cisco, for example)  Focus Groups with InnovatorsMusic and entertainment (Sony BMG Music Entertainment, Viacom)  Branding and PromotionConsumer product companies (P&G, Pepsi, Dell)  Talent Discovery and RecruitingConsulting industry and hiring agencies (TMP Worldwide Advertising & Communications) ApplicationsIndustries and Companies (early adopters) NMC: New Media Consortium

14. 14 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training Selected Areas Explored by Early Adopters  Environmental, health and safety training: Offshore oil operations, nuclear facilities, chemical refineries, among others  Onboarding: Creating innovative and engaging ways for orientation training and for executives to meet new employees  Sales Training: Bringing together widely distributed employees for experiential learning and team building—cost effectively creating a wide range of sales scenarios  Language learning: Creating varied and realistic environments for rich set of formal and/or informal learning experiences

15. 15 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training Integrating Formal and Informal Learning in VW Environments? Formal Learning Instructor-Led Learning Self-Directed Learning Retirees and alumni serve as coaches and mentors to younger employees, enabling the transfer of experience and tacit knowledge. Podcasts Video Blogs Wikis Others Coaching Facilities Social Networking and Informal Learning Virtual Prototyping and Demonstrations Entertainment Area Storytelling Role-Playing Simulations Profile Web Link to

16. 16 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training Some of Challenges Facing Early Adopters  So far, relatively few publicly available examples that interested companies can access and learn from  Many focus too much on building VW facilities to replicated learning experiences of 2D environments and don’t exploit unique environment and affordances of VWs  Operational Challenges in many VW platforms:  High technology threshold  Technology infrastructure problems often still exist  Steep learning curve for users  Security and privacy concerns

17. 17 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training University Classes and Educational Research in SL—Growing Activity  Rich 3D demonstration models in SL allow students to experience phenomena of interest.  Power of visualization and multimedia can improve delivery of learning materials over pure text.  Growing experimentation and innovation— including integration of Learning Management System with SL.  Integration of formal and informal learning—the latter including more social activities. SL: Second Life (VW of Linden Lab)

18. 18 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training New Era for Architectural Education? “Instead of pinning pieces of paper onto a wall in front of a jury, and trying to explain a design concept, why not invite them into an immersive environment where they can actually experience it? Jurors and students alike could take the virtual model and help it evolve through real-time suggestions made by actually transforming the design and really helping the student learn about architecture through immersive experience. Perhaps a studio project starts as a collaborative exercise, enabling students to collectively co-create a 3D representation of the project statement. The Wikitecture process could become an integral and potentially very powerful aspect of architectural education.” Source: The ARCH; Blog; http://archsl.wordpress.com/

19. 19 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training International Space-Flight Museum and NOAA Island  The International Spaceflight Museum (ISM) hosts exhibits and events about real-world spacecraft, rockets and space travel.  Cal Tech's Jet Propulsion Lab built "Explorer" near ISM and unveiled new exhibits, and has held lectures and demonstrations.  NOAA has built a number of fully interactive educational demonstrations about the ocean and weather. NOAA: National Oceanographic and Atmospheric Administration

20. 20 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training European Oil Company X  Has not been very public about their activities so far but starting to open up  Known to be testing a number of different platforms, including Second Life, Qwaq and Forterra—and learning and training (L&T) is one of areas of interest  Office of Chief Technology Officer is one of leading proponents for exploring VWs  Company has been planning major Summit to examine VWs  VP for IT Operations now allows staff to use the company’s infrastructure to connect to Second Life

21. 21 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training European Oil Company Y  Company has at least two groups that have been looking into VWs and potential applications—including L&T.  Significant focus is on use of VWs in exploration and production – including developing innovative approach to accelerate and improve knowledge sharing processes.  Some of work is part of 3-year innovation program to find new, break- through solutions that leverage emerging technology.  Company has for many years been on leading edge in use of simulations, visualization, and collaborative technology—and now wants to take this to the next level.

22. 22 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training Second Life for Platform EHS Training EHS: Environmental, Health and Safety

23. 23 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Virtual Worlds for Learning and Training Second Life for Platform EHS Training, Con’t

24. 24 © 2007 by SRI Consulting Business Intelligence. All rights reserved. What’s Ahead? Emerging Innovations in VWs?  New innovations as result of more open source VW platforms—including both Second Life (Linden Lab) and Wonderland? (Sun)  Improving ease-of-use by simplifying user interfaces for VWs  Innovations to enable easier navigation—with Wiimote-like devices?  Replicating user movements and gestures through avatar—via better animation or video?  New “enterprise-focused mashups,” perhaps integrating social networking with VWs?

25. 25 © 2007 by SRI Consulting Business Intelligence. All rights reserved. What’s Ahead? Large Players Examining Strategies for VWs  Google  Has massive server farm which could provide low-cost infrastructure for VW.  Has Google Earth and SketchUp tool for creating 3D models (which can be placed in Google Earth).  Cisco  A VW offering could be targeted both at is core, corporate market and consumer segment that Cisco is now targeting more seriously.  Company is currently examining and evaluating platforms, technologies and considering its future strategies.  Sun  Company has a number of projects and technologies that could support a serious VW offering.  Sun recently built MP20—a virtual campus to use internally to test concepts and technologies.

26. 26 © 2007 by SRI Consulting Business Intelligence. All rights reserved. What’s Ahead? More Innovative and Experiential Learning  Next-generation rapid eLearning for language and cultural training to prepare employees for international assignments—experiencing and interacting with avatar natives in virtual Beijing, Tokyo, etc.  Rapid prototyping in virtual environments of new products and facilities to get early feedback from customers and employees  Create “holistic learning environments” where employees from whole enterprise (or extended enterprise) can meet, socialize and learn both formally and informally—and where executives can easily visit and interact with colleagues and employees without exhausting travel  Build game-based learning experiences that can engage generation Y employees that get turned off by today’s training courses  Create sales team competition where virtual teams meet in VWs to compete and socialize—and learn

27. 27 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Phase 3: Beyond Pilot Projects  Executives are more comfortable with virtual worlds and understand them better.  The operational aspects of virtual worlds are clearer.  Companies have greater confidence in the ability of virtual words to ensure business- performance results. Phase 2: Learning and Planning  Early lessons become available from early adopters.  A growing number of organizations see a need to learn about and explore opportunities and possibilities.  Risk and uncertainty decline. Phase 1: Hype and Very Early Adopters  Lots of buzz and publicity greet virtual words.  Early adopters take small steps.  Mainstream companies take notice.  Uncertainty and risk are high. What’s Ahead? Phases of Corporate Virtual-Worlds Adoption 2005–062008–092007

28. 28 © 2007 by SRI Consulting Business Intelligence. All rights reserved. What’s Ahead? Virtual Worlds: Next-Generation Web? Web 1.0 Web 2.0Web 3D?  Democratization of Content  Browser Based  Publishing to Web  Transactions Focused  Participation and Cocreation  User-Generated Content  Mash-ups and Remixing  Richer Media: Audio and Video  Avatar-Mediated Collaboration  New Forms of Interactivity  Laboratory (Petri Dish) for Business and Learning: Rapid Prototyping,  Testing, and Experimentation  Mix of 2D and 3D—with growing use of 3D—is likely  Key to success: Only use 3D when it can bring unique value  Growing range of easy-to-use tools for creating 3D content  Greater integration of TV, 2D Web and VWs

29. 29 © 2007 by SRI Consulting Business Intelligence. All rights reserved. Contact Information Eilif Trondsen, Ph.D. Director Virtual-Worlds Consortium for Innovation and learning, SRIC-BI Chairman, eLearning Forum Telephone: +1 650 859 2665 E-mail: etrondsen@sric-bi.com http://www.sric-bi.com/VWC http://www.elearningforum.com