Big Picture by Sheryle Moon

As children, parents and teachers were our mentors, but as adults in the working world, mentors can be hard to find. In Big Picture, industry leaders share their views, experience, advice and tips on making today’s followers tomorrow’s leaders.

Getting a Second Life

Posted by Sheryle Moon @ 18:01 6 comments

Australians are early adopters of technology. Think of the rapid rate of take up of ATMs, mobile phones and flat screen TVs. So, it is hardly surprising that Australian companies are beginning to enter the brave new world of Second Life.

Second Life, with population of almost eight million (according to some sources), is changing the way businesses think about what their customers want, and whether "virtual" is a viable way to give it to them.

In Second Life, US presidential candidates are snapping up real estate, musician Jay Z is performing online, and the American Cancer Society is generating hundreds of thousands of dollars through in-world fundraising drives. It's clear that the virtual world is 2007 is the place to be.

Second Life is still in its nascent phase, and the commercial returns on such sites remain unclear. That said, it's important that this doesn't sideline Australian companies.

When Telstra is offering to remove the cap limitations for broadband used to explore SL by its customers, when the tax office is releasing commentary about how to assess in-world earnings, and when legal firms such as Deacons are writing white papers and client briefings outlining the legal risks of undertaking business in-world -- then places like Second Life are no longer a game or an experiment.

Gone are the days when a business can disregard an emerging technology until it is completely mature. As Gartner analyst Steve Prentice warns, "Don't ignore this trend. It will have a significant impact on your enterprise during the next five years."

By the end of 2011, Gartner predicts that 80 percent of active Internet users -- and Fortune 500 enterprises -- will have a "second life" in one virtual world or another.

Industry analysts are predicting that collaborative and community-related aspects of virtual environments will soon dominate and that the majority of active Internet users and leading enterprises will find value in virtual worlds.

What Australian companies need to understand is that Second Life is a global micro-economy -- and that there has never been one before. It may take time, but this is going to change the way companies relate to their customers, and change the way people relate to brands.

Second Life provides companies with an opportunity to be at the leading edge of technology and marketing. It's no longer good enough to be a follower -- the emergence of the Internet has demonstrated that you can be left behind. To make it in the 21st century global economy, you need to be a leader, and that means embracing new technologies like Second Life.

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Talkback 6 comments

    Covering our A are we? Anonymous -- 18/10/07

    This sounds like nothing so much as an attempt to justify your pointless creation of an AIIA presence in Second Life.

    Can you play third life in second life? Anonymous -- 02/11/07

    80% may have a "second life" but how many of those would have been lived for half an hour, once or twice before the user became bored with it?

    I can see the appeal with games like World of Warcraft but personally, except for a potential business opportunity, I have little interest in second life. I am quite happy with my real life and too busy to try and start another one.

    If I could pause one life while playing the other... now that would be cool.

    Presence yes, but revenues? Anonymous -- 06/11/07 (in reply to #320088974)

    I would love to know if any company (and not just some sole trader offering avatars) can actually account for real profits from their second life presence.

    Sorry...Second Life =Emperor's New Clothes! Anonymous -- 13/11/07

    Hmm...I'm an early adopter and, indeed, an evangelist for many new technologies and applications which have a practical use or beneficial outcomes....

    ....But, after spending some time there and trying to 'get it'. I regret to advise that Second Life falls into the category of WOFTAM. At its very best, it is nothing other than a complex and time consuming way of testing markets, concepts and whether you can persuade someone to do something that, in real life, is probably stupid, illicit, immoral..or simply banal!

    Despite the divinations of Gartner (who invented the hype curve, after all), I reckon Second Life is proof once again of PT Barnum's often forgotten aphorism about one being born every minute. Ultimately, there WILL be a crash associated with Second Life (as in the late '90's dot.com boom/crash), and my concern is (one which AIIA might seriously consider) that this will be wrongly attributed to the technology industry, not to the real culprits....those shysters who take unfair advantage of other by promising 'get rich quick' schemes.

    Surely, we all now realise that with all the benefits of ICT, we are -- more than anything else -- now 'time poor'. Our time is now valuable; we need to avoid wasting it...and Second Life is, above all else, a time thief!

    Second Life Anonymous -- 22/01/08 (in reply to #320089688)

    Regardless of what people say that dislike Second life, the virtual world does have its population and is growing rapidly, i myself have a business implemented in second life.
    For some people its nice to just log in another world and do whatever you like and just have fun, for others its about business.

    In my case, http://www.sldesires.com, An Australian owned business on Second Life that does Real business management projects into second life, i help businesses make their presence in second life. You want a building in second life? i do all the work for you including the marketing.

    It's just another form of advertising, as well as interacting with each other, presentations etc...

    In regards to presentations, i am currently doing a building and boardroom for an Australian marketing business who needs a virtual boardroom and video presentation.

    I guess we all have different tastes, lets learn to accept and respect each others differences.

    ;)

    American Cancer Society? Anonymous -- 04/07/09

    You write that the "American Cancer Society is generating hundreds of thousands of dollars through in-world fundraising drives" but give no references to this. Are there any?

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Sheryle Moon

Sheryle Moon

CEO, Australian Information Industry Association

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