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Implementation and Operating Perspectives on Virtual Worlds for Learning March 2007 Author:  Eilif Trondsen Contributors:   Chris Badger Ron Burns Graeme Duncan Rob Edmonds Marcelo Hoffmann About This Report Table of Contents   Download the full report  (PDF) 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@sric-bi.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

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