MASTERARBEIT Titel der Masterarbeit Avatar-based Innovations – Virtual Worlds as Breeding Grounds for Innovations Verfasserin Niina Maarit Novak, BSc angestrebter akademischer Grad Master of Science (MSc) Wien, 2013 Studienkennzahl lt. Studienblatt: A 066 914 Studienrichtung lt. Studienblatt: Masterstudium Internationale Betriebswirtschaft Betreuerin: ao. Univ.-Prof. Mag. Dr. Christine Strauß Eidesstattliche Erklärung Ich erkläre hiermit an Eides Statt, dass ich die vorliegende Masterarbeit selbständig und ohne Benutzung anderer als der angegebenen Hilfsmittel angefertigt habe. Die aus fremden Quellen direkt oder indirekt übernommenen Gedanken sind als solche kenntlich gemacht. Die Arbeit wurde bisher in gleicher oder ähnlicher Form keiner anderen Prüfungsbehörde vorgelegt und auch noch nicht veröffentlicht. Ich habe mich bemüht, sämtliche Inhaber der Bildrechte ausfindig zu machen und ihre Zustimmung zur Verwendung der Bilder in dieser Arbeit eingeholt. Sollte dennoch eine Urheberrechtsverletzung bekannt werden, ersuche ich um Meldung bei mir. Wien am 12. September 2013 ___________________________________ (Niina Maarit Novak) I II Acknowledgment I would like to thank Professor Christine Strauss for all the help and support she offered me during my time at the department for e-Business at the University of Vienna. My sincere thanks also go to Andreas Mladenow, whose assistance, encouragement and guidance have been of great value to me. Personally, I would like to thank my entire family for their continuous and infinite support during the course of my studies. This thesis is dedicated to my family. III IV Table of Content Table of Content Eidesstattliche Erklärung ............................................................................................................. I Acknowledgment....................................................................................................................... III Table of Content ......................................................................................................................... V List of Figures and Tables ........................................................................................................ VIII List of Abbreviations .................................................................................................................. IX 1. Introduction ................................................................................................. 1 2. Avatars – Users and their Graphical Counterparts ........................................ 3 2.1. Different Identities ..................................................................................................... 3 2.2. Affective Computing, Emotions and Body Language ................................................. 4 2.3. Fields of Application ................................................................................................... 5 2.3.1. Gaming, Entertainment, Socializing .............................................................................. 5 2.3.2. Business Spokespersons and Sign Language Interpreters ............................................ 6 2.3.3. Virtual Teaching, Education and Conferences .............................................................. 6 2.3.4. Simulation and Training ................................................................................................ 7 2.4. Motivational Drivers ................................................................................................... 8 2.4.1. Functional .................................................................................................................... 10 2.4.2. Experiential .................................................................................................................. 10 2.4.3. Social ........................................................................................................................... 11 3. Innovations ................................................................................................ 13 3.1. Types of Innovations ................................................................................................ 15 3.2. Innovation and Technology Management ............................................................... 16 3.3. Innovation and Technology Life Cycle Concepts ...................................................... 18 3.4. User Introduced Innovations and Co-Creation ........................................................ 20 3.4.1. Innovator-Communities .............................................................................................. 22 3.4.2. Property Rights ............................................................................................................ 24 3.4.3. Innovation Toolkits ...................................................................................................... 25 4. Virtual Worlds – The Home of Avatars ....................................................... 27 4.1. Important Developments and Milestones ............................................................... 29 4.1.1. The early Days of Virtual Reality ................................................................................. 29 4.1.2. Online Gaming ............................................................................................................. 31 4.1.3. Social Networking ........................................................................................................ 33 V Table of Content 4.1.4. The Age of Social Media .............................................................................................. 35 4.2. Types and Target Groups of Virtual Worlds ............................................................. 36 4.3. Popularity of Virtual Worlds among Kids ................................................................. 41 4.4. Culture in Virtual Worlds .......................................................................................... 43 4.5. Gamification and the Experience Economy ............................................................. 45 5. Excursus: Business in Virtual Worlds .......................................................... 49 5.1. Business Opportunities ............................................................................................ 49 5.1.1. Advertising................................................................................................................... 49 5.1.2. Virtual-Commerce ....................................................................................................... 51 5.1.3. Market Research ......................................................................................................... 52 5.1.4. Human Resource Management .................................................................................. 54 5.1.5. Internal Management ................................................................................................. 54 5.2. Overcoming Business Challenges ............................................................................. 55 5.2.1. Catch Traffic ................................................................................................................ 55 5.2.2. Reward Presence ......................................................................................................... 56 5.2.3. Be Innovative ............................................................................................................... 56 5.2.4. Establish a Learning Environment ............................................................................... 57 5.2.5. Show that You Care ..................................................................................................... 57 5.3. Own vs. Collective Virtual Worlds ............................................................................ 58 6. Case Studies ............................................................................................... 61 6.1. Business Process Modeling in a Virtual World ......................................................... 61 6.2. Coca-Cola’s Virtual Thirst Contest ............................................................................ 64 6.3. IBM’s Global Innovation Outlook ............................................................................. 66 7. Conclusion ................................................................................................. 71 7.1. Key Findings .............................................................................................................. 73 7.1.1. International, Interdisciplinary and Concurrent Collaborations ................................. 73 7.1.2. Avatar-Communities and Motivators .......................................................................... 74 7.1.3. Improved Communication .......................................................................................... 74 7.1.4. Reduction of Costs, Time and Risk .............................................................................. 75 7.1.5. Creativity and Imagination as Sources for Innovations ............................................... 75 7.2. Challenges and Recommendations .......................................................................... 75 7.2.1. Distractions.................................................................................................................. 76 7.2.2. Virtual World Novices ................................................................................................. 76 7.2.3. Real World Potential