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.

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:

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

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!

When a technology innovation appears on the horizon, one would stereotypically expect that the younger generation will sign on to it faster than older adults. This was the same expectation I had with Second Life. Like many people, I thought of Second Life as a playground for mostly Gen Y’s and the occasional Gen X’s. As I am about to reach 33, I thought I would be “old” in SL. But my two recent encounters in SL made me rethink this issue.

The two avatars that I encountered in these situations were both in their mid-fifties. They were very adept at creating their own images and environments within Second Life, much better than a newbie like me is able to. Entering into the interaction, I never intended to find out about their real-life age, but it somehow just came out during the conversation. Both avatars were very kind and helpful, both were happy with their real life, and both expressed a newly found youthfulness in Second Life, as if they were taken back to that time when they were much younger.

These conversations made me rethink the value of SL to different age groups and the real-life demographics of SL participants. If we were to look at three generations of people: the baby boomers and above, the Gen X, and the Gen Y and younger groups, it is actually not that difficult to see the appeal of SL to the first group. As the idea of living a second life allows someone to create an ideal self that s/he cannot fulfill in real life, Second Life allows the older generation to either relive or recreate their life. Now that most of their kids have grown up, they also have much more time to enjoy the virtual world, once they master the technology needed to use it. For Gen Xers like me, in contrast, we are so busy dealing with our real-life responsibilities at home or at work that it is hard to find the time to truly escape to the wonderland. The even younger text-messaging generation may have more time but may not have the patience for the amount of time it takes for 3D worlds to load and function.

Of course, these thoughts came from only two recent encounters, and they are very likely to be biased. I do not have concrete data to support my argument. Digging around on the Internet only landed me on an older set of statistics on Second Life’s real-life demographics in early 2006, which showed a median age of 36. But I truly believe in the power of Second Life for the older generation. The sweeping Internet revolution has already brought this generation to be more on par with the rest of the population in terms of technology use, and it has prepared them for the even newer 3D Web. Once the technology barrier has been removed, these virtual worlds could mean great additions to their life that cannot be found anywhere else in real world. This may explain the findings I posted in a previous blog on how SL enhances individuals’ happiness in real life.