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 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
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
1 comment:
I don't understand the significant benefits from existing in an online fantasy world. If some analytical knowledge is gained from technology, that is good. If people make money, good too. I think a small percentage of the world population will have access to these fantasy world resources though. But if we imagine that over time a higher percentage of people were utilizing such tools, it would actually lead to a slow destruction of natural society and evolution.
I think people with skills in business and finance are incredible. ...If applied in a cultural of life sustainability. I think you should learn about social businesses and the constructive and long term benefits for human existence and proliferation.
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