We recently put some questions to a panel of experts related to virtual outsourcing. We were thinking about the impacts of SaaS on the IT outsourcing world.During this conversation Dave Elchoness blew us all away with some thinking on real virtual worlds and how they could revolutionize the way we work in the consulting game.
Dave is the Founder & CEO at VRWorkplace, Inc. An experienced attorney and HR consultant, he founded VRWorkplace to help geographically distributed companies, educational institutions, associations, organizations, and social networks overcome the traditional obstacles that arise due to lack of interpersonal connectedness and benefit from virtual worlds.
His insights are refreshing and unique, and it is easy to see why he is one of the leading thinkers on how to take advantage of emerging technologies such as virtual worlds. We invited him back for 5 Quick Questions related to the emerging virtual workplace, and how this could affect consultants throughout the world.
1) Second Life has really taken off with the "facebook" crowd as a social phenomena, we are also starting to see the rise of Second Life entrepreneurs emerging out of the crowds. But, what use could this tool be for the managing consulting discipline? Are we looking at a place where virtual offices will be established, or could it go much farther than that? (E.g Strategic learning games in a virtual world?)
We are still in the very early days of virtual worlds technology. At present, there are many virtual worlds out there – many for kids and teens, some geared for adults. There are virtual reality type environments that are meant to be private i.e. inside a company’s firewall. There are environments that are generally publicly accessible with areas that may be limited to those on an access list.
Second Life is public, but companies have been using it for various internal purposes but limiting access, generally to isolated private islands on the Second Life grid. These islands are not inside their own corporate firewall, but maintained by Linden Lab along with the public spaces inside of Second Life.
With that as background – Second Life and other virtual worlds and environments will doubtless be a tool for the managing consulting discipline. Virtual worlds allow for immersive, as if in person interactions in a 3D space.
Meetings can happen there. Office hours can be spent there. Socializing can happen in virtual space. All of this can be achieved without travel or delay and essentially spontaneously. So imagine meeting a client on the other side of the world within a virtual environment. You could meet in nearly any sort of atmosphere you could dream of.
For example, my VRWorkplace sim in Second Life has both conventional office park like spaces (e.g. meeting spaces, offices, amphitheater) but also a coffee house and amusement park. This was done very deliberately. In a virtual environment we can be wherever we like. So, short answer, yes – virtual spaces can be used as a tremendous tool for management consultants.
A few steps further: Imagine building within the virtual world, a prototype, or a replica of an existing structure, or a 3D model of an existing process or practice. With this interface, we can virtually examine a flow “from all sides.”
Now, imagination and creativity. Think of a brainstorming session inside of a virtual world, not in a typical office building but in an underwater conference room with fish swimming past and swans above. I built one of this on my sim to prompt lively discussion, imagination, and creativity (for those who appreciate the uniqueness of such a space.)Last points: Air travel reductions, pollution reductions, reductions in disruption to work and family life. If 10% of Accenture’s travel expense could be saved by using a virtual world-type interface, that would be something, wouldn’t it?
Now on to what can be done currently: Voice communication, text communication, streaming media, powerpoint. Some of these things don’t need to happen inside of virtual worlds – BUT – as the interface changes from the keyboard and screen to something else, being able to share these technologies in the 3D space will be just like “being there.”
I know many people who have offices in Second Life as their primary business location (if not only location.) I lease space, consult on how to use space, build etc.
As for training, consider a piece of “land” in Second Life that can be an obstacle course one day, or an office space the next. Training can be that versatile. Games can be developed. A tracking system that measures achievement of certain goals or results within Second Life can be developed. You can truly make a game out of applying best practices – or adopting strategy.
2) Do you think this is going to be something that will provide competitive advantage? Or merely a curiosity?I think within the next several years, virtual reality will take hold as a way to bridge distance, promote interpersonal bonding, and allow people more freedom and flexibility in their lives. We can both work at home AND spend more time with our colleagues around the world within a virtual environment.
By the way, a virtual environment on your computer screen also allows for what I call the “hallway meeting” in a way that nothing else can. We know that real work gets done in the hallway or when someone stops by your office – a “drive by” we used to say in my law firm days. Well, keep your virtual environment on your screen for certain agreed upon hours of the day and we can replicate that even for people working on the opposite sides of the world from eachother. From my desk in the US, my India colleague can “run into me” in the hallway.
For proof, in my view, that this is not a passing fad consider the investments being made by IBM, Cisco, Sun and others in virtual worlds. Also, the China Recreational District (CRD) a tremendous effort in China that I understand intends to bring 150 million Chinese into virtual worlds by 2010. http://www.virtualworldsnews.com/2007/11/a-close-look-at.html.
3) Are there any first movers in there in the area of consulting already? Or is it an area that remains wide open? (Beyond using it for IBM style meetings)A number of consulting companies have become engaged. Two that come to mind immediately are Accenture and PA Consulting. IBM, Cisco, Sun and many other technology companies are engaged. Wipro was the first major India player to engage (but others are sure to follow.) As for what they’re doing – much of this is private, but it is well-known that IBM has upwards of 50 islands in Second Life, some of which are private for all sorts of business uses. Many companies, including Cisco, have done job fairs in Second Life. Manpower is in SL as is Kelly Services.
That said, we are in the very early days. I am trying my best to become a pioneer in the field.
4) You have mentioned before that there are several virtual worlds that look like coming online within the next year or so. How will this affect things? Will it make virtual consulting more likely do you think? Could there be a new virtual world that is like LinkedIn is for professional networking?The number of virtual worlds will certainly increase in the next year. There will be both public and private worlds hitting our radar. I suspect that this will cause existing players like Second Life to improve their product including stability, ease of use, etc rapidly.
There is no question that as virtual worlds becomes more mainstream as a concept, there will be more virtual working, consulting, training, recruiting, etc. It’s just a matter of time.
LinkedIn and other social networks will get involved heavily in virtual worlds. What is more obvious than taking a relationship started in text in LinkedIn to a new level inside a virtual world boardroom, coffee house, etc.?
I am actually having two LinkedIn related networking events at my Second Life sim, VRWorkplace, one on January 17th at 6pm PT and the second on January 24th at 11am PT. I’ve invited all of the members of the LinkedIn “Virtual Worlds” group that I founded and moderate as well as those who expressed interest in response to a question I asked in the Q&A section.
5) Presumably the big players will enjoy the usual advantage that comes with size. However, do you think there is a place for innovative smaller companies to carve out a niche rapidly? And if so, then what final advice would you give to small consultancies looking for that edge?Actually, I think smaller companies are better positioned than larger ones to benefit from virtual worlds today. The cost of entry is manageable and smaller companies are generally better able to take a plunge into a new paradigm more quickly than larger ones.
This is a business I’m passionate about. Anyone interested in trying this out should contact me and I will help them every step of the way. Dave can be found on his LinkedIn profile or on his email address dave@vrworkplace.com
