EGHAM UK: Nine out of ten business forays into virtual worlds fail within 18 months but their impact on organisations could be as big as that of the Internet, according to Gartner Inc. Analysts said that focusing on the technology rather than understanding user requirements is one of the key reasons for failure.

"Businesses have learned some hard lessons," said Steve Prentice, vice president and fellow at Gartner. "They need to realise that virtual worlds mark the transition from web pages to web places and a successful virtual presence starts with people, not physics. Realistic graphics and physical behaviour count for little unless the presence is valued by and engaging to a large audience."

Gartner analysts are to examine the trends, implications and next steps for corporate virtual worlds at the Gartner Emerging Trends Symposium/ITxpo 2008, taking place in Barcelona through 15 May.

Further reasons for the high failure rate include starting projects for the 'cool' factor or because competitors are doing it. Many were closed down or abandoned by a lack of clear objectives and a limited understanding of the demographics, attitudes and expectations of virtual-world communities. "An effective project starts by focusing on the audience's needs and ultimately delivering the technology to support the community of people," Prentice added.

A benefit of virtual worlds is the rich collaboration experience they offer by adding a real-time visual dimension via avatars, so interactions can include emotional information in the "conversations" between individuals, setting them apart from simpler networking applications. They also differentiate themselves from Web-based interactions (which can be asynchronous) by requiring both parties to be present at the same time.

The cost of implementing a corporate virtual platform is also marginal, typically from around $50k and trials can start from as little as $5k, which can further incentivise companies to experiment with them. It could also save costs from reduced use of expensive videoconferencing facilities and eliminate the need to bring employees from multiple locations and time-zones to a single site, with substantial savings in travel and associated costs and time, thereby also supporting corporate environmental initiatives.

As an additional form of communication, virtual worlds have potential. "Companies need to start thinking what their virtual world strategy is, incorporate it into their Internet strategy and merge their two-dimensional web pages to support a "3D Web place". Virtual world presence is not to replace the "2D world" but to supplement it," Prentice said.

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