Emerging Virtual Institutions - Second Life

Remember when you were young and your parents told you that you could be anything you wanted? Well now you can! Emerging Virtual Institutions are virtual worlds like Second Life, Cyworld and Entropia which allow users (residents) to create characters and interact with each other over the internet. The technology behind virtual worlds like Second Life is an application software called a viewer. The viewer allows the user to access the virtual world through their home computer and internet connection. In the case of Second Life, the viewer allows users to access the network of servers that are used to power the virtual world of Second Life. The beauty of the viewer technology is its ease of use, limitless expandability and its low storage space. Linden Labs is the company that developed Second Life made the viewer able to process very large amounts of information that are highly compressed. The users of Second Life only need to download the viewer file of 31 megabytes to be able to access their virtual character and because all of their information is stored on the servers, users can access their characters from any computer that has the viewer software.

It is hard for companies to avoid the growing popularity of virtual online worlds like Second Life. Each virtual world posses their own economy, laws and currency. On Second Life alone, US$1.5 million are exchanged between residents every day, that is big business. People are willing to spend real money on their virtual characters and companies should cash in. Some companies like Sony, Dell, IBM and American Apparel all have virtual stores in Second Life, were users can buy virtual products. Companies can cash in big because of the free advertising and revenues from selling virtual products. Some companies are even developing virtual prototypes through their viewer to see if customers like their products. These prototypes save companies thousands of dollars because there is almost no cost associated with creating things in the virtual world. The CEO of W Hotels recently had a hotel built in Second Life that is a virtual prototype of a W Hotel. The W Hotel president recently stated that this project was a huge success and gave the company amazing feedback. Recently a woman named Anshe Chung became the first millionaire by using Second Life. She made her US$1 million by selling and renting virtual real estate and investing in Second Life’s virtual stock market. Virtual worlds can also be used for marketing a certain demographic. An example of this can be seen in South Korea were 90% of the population under 20 have a Cyworld account.

The disadvantage of the virtual world and the viewer technology is once again safety and security. Companies must be careful that there products do not get copied and sold by independent users. Software developers are working to improve safety in the virtual world so that companies and users can enjoy the benefits of the online virtual world

References:

Bray, David A. and Konsynski, Benn, "Virtual Worlds, Virtual Economies, Virtual Institutions" (May 2007). Available at SSRN: http://ssrn.com/abstract=962501

Hof, R. (2006). Second Life’s first millionaire. Retrieved September 22, 2007, from
http://www.businessweek.com/the_thread/techbeat/archives/2006/11/second_lifes_fi.html

Jana, R. (2006). Starwood hotels explore Second Life first. Retrieved September 22, 2007, from http://www.businessweek.com/innovate/content/aug2006/id20060823_925270.htm

Linden Research Inc., Technology page. (2007). Retrieved September 22, 2007, from
http://lindenlab.com/press/factsheets/technology

Wikipedia, Emerging Virtual Institutions page. (2007).
Retrieved September 22, 2007, from
http://en.wikipedia.org/wiki/Second_Life

Bloomberg Terminal and Software

Fortune magazine recently published an article in which twelve stock analysts were given the choice of keeping their Bloomberg Terminal or having their bonuses increased by $15,000. Eleven of the twelve said that they would keep their Bloomberg. This article shows the attachment that people have with their Bloomberg terminals. The Bloomberg terminal is the platform on which the Bloomberg application software technology and the Bloomberg Professional service run. The beauty of the Bloomberg terminal is its pairing with the software technology through which users can access real-time financial data from virtually any terminal on the planet. In order to use the technology, consumers must subscribe to the Bloomberg Professional service. The pairing of the software and service allows users to customize their terminal screens to access whatever data they like. Users can access many different types of information on their terminal such as news services, television services, stock quotes, graphs and more. The Bloomberg technology operates on the largest privately owned network in the world. The extent of the network also allows users to access their Bloomberg information from their laptop or even their BlackBerry.

The Bloomberg terminal incorporates many other technologies seamlessly in order to provide its customers with a product like none other. Bloomberg LP developed a patented keyboard (input device) which enhances the security of each terminal by using biometric fingerprint technology. The Bloomberg terminal also uses a high-quality webcam which allows for video-conferencing between terminals.

Bloomberg LP is currently the only company that offers this terminal based technology but competition in Bloomberg’s original market, the financial news sector, is fierce. Companies like Dow Jones, Thompson Corporation and Reuters are all competitors in the financial information but none have a financial software technology that compares to that of the Bloomberg terminal.

Most large financial service companies have Bloomberg terminals, but at $1500 a month they are not cheap. Companies like Morgan Stanley, Goldman Sachs and many hedge funds use the Bloomberg terminal as an up to the minute stock, news and bond tracker. The technology is so customizable that more and more terminals and Professional services are being sold to law firms and personal investors. Companies can also use the Bloomberg technology to sell their own products or services such as television and broker services. As more banks, hedge funds and markets adopt the technology, advertising your company or providing a service can be targeted at a specific demographic or social class through the Bloomberg terminal.

The only downside to the technology is the price. Subscription to the Professional service and unlimited use of the technology costs $1700 a month for one terminal and $1500 a month for several. This leaves smaller companies at a disadvantage because they cannot afford the real time financial access that the Bloomberg technology provides.

References:

Jelveh, Z. (2007). Screen Gems. Retrieved September 19, 2007, from
http://www.portfolio.com/culture-lifestyle/goods/gadgets/2007/07/09/Bloomberg-

Loomis, C. (2006). Bloomberg’s money machine. Retrieved September 19, 2007, from
http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/16/8404302/index.htm

Wikipedia, Bloomberg page. (2007).
Retrieved September 19, 2007, from
http://en.wikipedia.org/wiki/Bloomberg_Terminal

Bluetooth Technology

Since its introduction in Scandinavia in 1998, Bluetooth technology has become increasingly popular and is being adopted by more and more companies every day. The creation and use of Bluetooth has lead to the need of far less wires in and around the workplace. The list of Bluetooth enabled devices is ever expanding and includes cell phones, printers, desktops, laptops, peripherals, medical devices and many more. Recently both Sony and Nintendo adopted Bluetooth technology for the wireless controllers in their seventh generation gaming stations, the Playstation3 and the Wii.

According to the company’s website, Bluetooth technology works by sending data wirelessly through an open wireless frequency ISM band between 2.4 and 2.4835 GHz. Once paired, up to eight Bluetooth devices can connect automatically by using the ISM (industrial, scientific and medical) bands which force other ISM equipment to accept any signal being sent over the frequency. This group of eight devices is called a Personal Area Network or a piconet and the technology also allows for communication between piconets.

What distinguishes Bluetooth devices from other devices that operate at 2.4 GHz is the use of extremely low power signals produced by their low cost microchips. The technology also avoids other non-Bluetooth devices by using a technique called spread spectrum frequency hopping. By using this technique, once paired Bluetooth devices will communicate wirelessly by changing to one of 79 frequencies over 1600 times a second. This reduces the chances of interference from a wireless phone or a local Wi-Fi signal.

In the past, questions of security have always been present when talking about wireless technologies. Bluetooth has several security features built in so that companies and users can feel safe about adopting the technology. A passkey is needed when pairing Bluetooth devices and once the pairing is established it uses 128bit encryption to protect the information from being stolen. As newer versions of Bluetooth are developed and the current range of 30 feet is extended, new security features will also be implemented to keep the information being shared secure.

Bluetooth has been adopted globally by many industry leaders including Apple, Microsoft, Lenovo, Audi, Motorola, Nokia, Toyota and many more. As Bluetooth becomes more recognized companies will benefit from the fact that people will began to search out products that are Bluetooth enabled adding value to the products being sold. Companies could also send advertisements to Bluetooth enabled cell phones or PDAs as people walked by their stores announcing deals and promotions.

In the future Bluetooth devices could communicate in certain locations and adjust the devices settings accordingly. An example of this could be as you enter a classroom or a movie theatre a device would send a signal to your cell phone telling it to turn off the ringer. Other applications could be used in the hotel or car rental industries. When someone would go to check into a hotel, the persons PDA or cell phone would be able to send personal information to the teller at the desk. It could also be used in supermarkets where someone’s credit card information could be transferred to the cash register and in return a receipt could be sent back to the PDA or cell phone eliminating the need for paper.

Companies could create virtually wireless offices and because Bluetooth is automatic, companies could save large amounts on IT. Bluetooth technology could also have a huge impact on the health care industry eliminating the use for wires and allowing for doctors to get constant updates about a patient’s health without visiting the room. Best of all, it’s CHEAP !

As mentioned above, the downside to Bluetooth is the security of wireless technology. The threat of being hacked and information being stolen is always greater with wireless technologies. Several securite concerns like Bluejacking, Bluesnarfing and Bluebugging also exist. Bluejacking (video) is similar to spam mail in that people send information that is unwanted and possibly dangerous to the device. Bluesnarfing is done by professional hackers and allows the hacker to use the cell phone as if it was their own and Bluebugging is similar to Bluesnarfing but it also allows the hacker to listen to the persons conversations.

The usages for Bluetooth technology and the devices that will use the technology are limitless. Wireless technologies are the way of the future and Bluetooth technology will be a main player in the expansion of this market.

References:

Accenture (2007). Six cool uses for Bluetooth beyond the desktop. Retrieved September 20, 2007, from http://www.accenture.com/Global/Services/By_Industry/Communications/Access_Newsletter/Article_Index/SixDesktop.htm

Bluetooth Web site. (2007).
Retrieved September 20, 2007, from
http://www.bluetooth.com/Bluetooth/Learn/Technology/


The Bluetooth Guide Web site. (2007).
Retrieved September 20, 2007, from
http://www.bluetomorrow.com/


Wikipedia, Bluetooth page. (2007).
Retrieved September 20, 2007, from
http://en.wikipedia.org/wiki/Bluetooth#Social_concerns