About This Report

In December 2006, the Learning-on-Demand (LoD) Program published Virtual Worlds for Learning and Training as a high-level introduction to the topic of three-dimensional (3-D), immersive, avatar-mediated environments. The report responded to the explosion of media interest in the topic of virtual worlds, in particular Second Life, in 2006. The current report continues our assessment of the topic but adopts a more ground-level and operational perspective.

This report looks at the potential to use four existing platforms to create virtual worlds for sales training. All these platforms—from Linden Lab (the developer of Second Life), Forterra Systems, ProtonMedia, and Caspian Learning—are already finding use in learning and training applications. Their approaches differ widely, however: Second Life is an open, primarily consumer-focused virtual environment, whereas the other platforms are closed, enterprise-focused solutions. This report also describes current work at SRI International to use the Second Life environment to explore innovative behaviors, specifically by designing and evaluating team exercises in this virtual environment.

New developers of virtual-worlds platforms and technologies are emerging, and their activities are accelerating innovation in technology, applications, and business models. Linden Lab's decision to share the code for its client software with the open-source community—and to consider doing the same with its server software at some point—is just one example of the growing role of open source in the area of virtual worlds. The report describes some major open-source projects that could have significant implications for users and other vendors.

The report also examines the likely impacts of virtual-worlds projects in an organization, including in information technology (IT), research and development, sales and marketing, and work processes. As with any new technology, deploying virtual worlds is likely to generate considerable excitement about new and interesting opportunities but is also bound to raise some operational concerns.

The final two sections of the report discuss some of the challenges and uncertainties of using virtual worlds and offer recommendations and action steps for organizations preparing strategic and operational plans for virtual worlds. Risks and uncertainties will always exist. The difference between success and failure could be how well an organization plans for and executes virtual worlds using available information and intelligence.

We welcome feedback about this report and the program, and we encourage you to contact us with any questions or suggestions. For more information, contact Eilif Trondsen, director, Learning-on-Demand (LoD) Program; telephone: +1 650 859 2665; fax: +1 650 859 4544; e-mail: etrondsen@sbi-i.com. We appreciate your support of our program and look forward to working closely with you as a Learning-on-Demand sponsor.

Table of Contents

About this Report	1
Executive Summary	2
Connection, Collaboration, and Learning in Virtual Worlds	2
Design and Implementation: Examples	2
Operational Issues	4
Challenges and Uncertainties	4
Recommendations and Action Steps	5
Connection, Collaboration, and Learning in Virtual Worlds	7
Design and Implementation of Virtual Worlds for Sales-Force Training	10
Linden Lab: Creating New Vision for Learning in Second Life	12
Training Scenario	12
Benefits and Use	13
Forterra: Leveraging a Robust Technology Platform into New Corporate Markets	15
After-Action Review for Assessment and Learning	15
Realism to Enhance Virtual-World Learning	16
ProtonMedia: Providing Learning through a Rich Communications Platform	17
Sales Training through ProtoSphere	17
Informal Learning and Social Networking	19
Caspian Learning: Building 3-D Game Worlds for Learning	19
Essential Knowledge Acquisition	20
Learning Processes and Procedures	21
Customer Conversations	21
Considerations in Planning for Virtual-Worlds Platform	25
Operational Issues	30
A Mix of Excitement and Concerns	30
The Experience of the New Media Consortium in Second Life	34
Challenges and Uncertainties	36
Mind-Set and Corporate Culture	38
User Attitudes, Preferences, and Needs	38
Industry Competition and Direction	39
Gaming and Virtual Worlds	40
Recommendations and Action Steps	40
Enterprise Adopters	41
Learning-Product and -Service Providers	43
Tables
Developers of Virtual Worlds for Learning and Training	11
Open-Source Projects That Use Virtual-Worlds Platforms	26
Operational Perspectives on Virtual Worlds	31
Minimal System Requirements for Virtual Worlds	34
Figures
Virtual Worlds As Holistic Learning and Training Environments	7
Success Factors for Corporate Virtual-Worlds Adoptions	37
Phases of Corporate Virtual-Worlds Adoption	41
Boxes
Cost Elements of Second Life	14
Cost Variables for OLIVE	17
ProtonMedia Pricing	19
Learning Innovation Behaviors through Team Exercises in Virtual Worlds: An SRI International Perspective	22
Multiverse Network: Enabling Virtual Worlds with a Unique Business Model	29