NEWS

Launching Ideas on the Cheap (Virtually)

MSNBC
September 23, 2008
By Eve Tahmincioglu

I recently interviewed a small business owner in a lavish conference room where he showed me his new idea for large screen video ads, but I kept walking into walls and the conference room's table.

No, I wasn't drunk folks. I was doing a bad job navigating my avatar.

An avatar is a computer simulation of you. I created one in the virtual world known as Second Life. I made the mistake of having my eight-year-old daughter help me design the avatar, which looks like a six-foot Lara Croft bunny rabbit.

My avatar met up with entrepreneur John Westra's avatar in Second Life so he could show me a video system he has created using large flat panel screens that he wants to sell to big retailers and airports to advertise products.

Westra didn't have to spend a dime on the hardware to build a prototype for his idea. Why? Because he created a simulation of the video system in Second Life.

I know, most of you probably thought virtual worlds were only for technology nerds who want to play weird games online and avoid interaction with humans.

But you'd better get your head out of the sand. More and more entrepreneurs are turning to virtual worlds for a low-cost way to design, test and even launch new business ideas.

I wrote the cover story this month for BusinessWeek's Small Biz magazine. It's titled "First Stop: Second Life. How to use virtual worlds to test your business ideas," and the article delves into this growing phenomenon.

During my research it really blew my mind to see how entrepreneurs were using virtual worlds to test their ideas and products, and it makes total sense -- why spend money on equipment, raw materials and focus groups if you can do everything virtually?

One business owner designed a toy in Second Life and met up with an engineer from a Hong Kong factory in Second Life to show him the design and have him create a real model.

Another small business owner who runs an architectural firm created simulated homes in the virtual world and has his customers create avatars so they can virtually walk through the homes before a single brick is laid.

It's all about thinking inside the box -- your computer.

You don't even need a real office anymore to meet clients.

When I met Westra in Second Life we were able to communicate via instant messaging, so our conversation was essentially held in real time.

Even though I had trouble navigating my avatar I was able to eventually walk over to the simulation of his new product and go through a presentation (I have difficulty making my avatar sit down, so we stood throughout the meeting).

Strangely, after the meeting was over I felt like I had actually met Westra.

The potential for virtual worlds is just beginning to be tapped. I suggest all of you get over to Second Life, or any of a host of cyberworlds available to the public.

I'm not saying every business can benefit from testing products in cyberspace, but maybe there's some potential for exploiting these worlds for the greater good of your company, or future company.

What do you have to lose?