Corporate Presence in Second Life

By now, you probably have heard of Second Life, the popular 3D virtual world that allows its residents to live, interact, buy/sell, and collaborate all under a virtual identity. Where these residents lived, real-world companies have been experimenting too. In my research with Dr. Bill Judge, we have seen more than 50 of the Global Fortune 500 companies who have established an official presence in Second Life. We spoke with some of these companies to find out what drove them to Second Life, how they use it, and how they have benefited from it. Here is a quick summary of what we found:

1. Why Companies Enter Second Life?

Most of the companies we surveyed/interviewed entered SL in 2006. The decision to enter SL varied from an innovative mentality to jumping onto the wagon under competitive pressure. Usually, an individual or a small team of employees were personally involved in SL at first, and they eventually became champions within the company. Interestingly, European companies’ decision to enter SL were driven more by potential for media exposure rather than by the actual functionality or use of the virtual world itself, suggesting important cross-cultural differences in corporate innovation.

2. What Companies Use Second Life for?

Below are six ways the companies have been using SL, ranked by their popularity. The list makes it obvious that communication and learning represent important uses of SL.

Usage of Second Life

3. How Do Companies Benefit from Second Life?

Most companies considered their SL venture to be worthwhile, although only one-third of them acknowledged realizing financial gains. Here is a list of the benefits companies believe they have received from their SL presence, ranked from most-often mentioned to least mentioned:

Benefits of Second Life

What do you think about these findings? Has your company ever experimented with Second Life?  I’d love to hear about your experience.

Simulation in Second Life

A student of mine shared this article on CNN.com with me: “Can second Life Help Teach Doctors to Treat Patients?”  It is an interesting illustration of the potential best use of Second Life, at least in the short-term.  While the original idea of Second Life was to create a virtual world where individuals can take on the role of an alter ego, the true business appeal of Second Life really lies in its capability to bring computer objects to life.  Within the 3D environment, individuals can reenact real-world scenarios in a semi-real setting, a departure from the 2D dominated Internet.  Thus, what is most useful about Second Life is not really the hundreds of thousands of users in the network, in contrary to other social networks such as Facebook.  Rather, it is the ability to simulate real-world scenarios that may be difficult or expensive to take place in reality.  Such applications include product development and demonstration; customer collaboration; teleconferencing; education and other types of simulation; and team work across geographic areas.  While businesses have entered Second Life a few years ago to build a “presence” in Second Life for marketing purposes, I envision continued use of Second Life to focus more in these other business areas and applications.

Study on Second Life and Corporate Innovation

Together with Linden Lab, the creator of Second Life, my research team is conducting a study on corporate innovation as reflected by companies’ participation in the virtual world Second Life.  In particular, we are interested in why corporations engage in cutting-edge innovations such as Second Life, despite the risks involved, and the benefits that are received through such ventures.  If your company has conducted any activities in Second Life, we would like to invite you to participate in a survey that constitutes part of the research project.  The survey will take only 10-15 minutes to complete, and we would be pleased to share the results of our research with you after the project’s completion in the form of an executive summary.  Please note that although Linden Lab has been working with us on facilitating the data collection process, we are not working with any commercial interests, and we will not share any data that can be tracked back to individuals or firms unless you first provide written permission to do so.

If you are interested in participating, please click on this survey link to launch the survey.  If you have any questions about the project, please feel free to contact us through the Contact Yuping form or via email to wjudge@odu.edu.  Thank you!