Corporate Learning GamesSerious game development in adult learning & development – going from potentially big to really big.

Kevin CortiCEO, PIXELearning

Saturday 3rd October 2009

Who am I to talk?

CEO, co-founder, PIXELearning

Background includes Mech Eng, Disaster Management & eLearning

Co-founded PIXELearning in 2002, custom development studio (transitioning to content/product company)

Primary area - corporate L&DSecondary areas – business education / marketing

Developed some tech (LearningBeans)

Based at Coventry University Serious Games Institute

SGI / AWM / DTG / Serious About Games / IDM etc

“The use of games or gaming dynamics not simply to entertain the player, but rather to inspire a particular action, effect some type of attitudinal/behavioral change, or instill a particular lesson in the service of an organizational goal”.

“It’s Time To Take Games Seriously”Forrester report (TJ Keitt and Paul Jackson), August 19, 2008

“Serious” Games? What the @%$#?

Supply & demandInventory managementPricing strategyRisk v rewardProfit & lossSeasonal factors on demand

Business education

Understanding dataAnalytical thinkingStrategic planningTacticsPerformance improvementTeam-building

Management

New product developmentFinancing a businessDeveloping marketsHiring key staffFinancial managementAchieving sustainability

Entrepreneurship

ZoningEmergency planningManaging utilitiesCrime preventionFiscal managementEnvironmental management

Civic planning

RecruitmentCoaching / mentoringDivision of labourWorking as (remote) teamsEffective communicationDispute resolution

Leadership

You Play World of Warcraft? You're Hired! http://www.wired.com/wired/archive/14.04/learn.html

Serious Games Taxonomy (Sawyer & Smith)http://www.dmill.com/presentations/serious-games-taxonomy-2008.pdf

Reasons why companies are getting excited....

To make adult learning & development…..

Better

Faster

Cheaper

What is driving interest?

Class-based (F2F) training is expensive

Logistically challenging to deliver F2F

F2F delivers variable (unpredictable) quality/results

eLearning very cheap but ‘shallow learning’

How truly engage? >> drive participation?

How deliver effective learning opportunities to large, geographically dispersed, audiences x-demographics?

How cut costs AND improve results (inc sales, reduced errors, be compliant etc)

Theory

“Game the skill”

Reflection

PRACTICE

Learning games allow people to experience a scenario or situation in a safe, realistic manner.

Putting theory into practice.

Builds on theory and post-reflection (blend)

Games allow people to practice

Games are complex

ComplexCognitiveactivity

Informationdissemination

Higher-order thinking skills

Learning games focus on higher-order thinking skills.

“Do it right whilst under pressure” - lots of different information, competing demands.

Focus on strategy and decision-making, for example, not just memorizing facts!

Virtual experience is cheaper

Virtual experience Real world application

“VIRTUAL EXPERIENCE”

Learning games allow users to acquire ‘virtual experience’.

“Screw up in-game…not on the job”.

They can then apply this to the real world – transferable learning!

Adults like to solve problems

Problem-basedLearning (goals,

tasks)

ADULT LEARNING

Learning by doing!

Adults like problem-based learning, challenges and clear relevance to work or personal needs.

Learning games are based on their job role and/or work environment.

Games are engaging

Passivereception

Active engagement

ENGAGEMENTLearning games positively encourage user participation.

Moving from “fill the vessel” with facts to….

…empower the user to make decisions and experience meaningful consequences.

Learner-centric experiences!

Competition & collaboration

Peer review

Collaboration

Group support

Added realism

MULTIPLAYERMultiplayer allows learners to collaborate and compete.

Makes experience very life-like, challenging and engaging.

Peer support + learn from others.

Erm, so…no aliens

then?

Sounds a bit dull

NO FUN- By order of the corporation

Our Worlds of Makrini – a.k.a. The Diversity & Inclusion Game

PIXELearning & Global Lead LLC

New (less volatile) markets

Much lower cost of entry

Reuse existing technology & IP

Different business models

Annual recurring revenue streams

Strong margin potential

Strong growth potential

Reasons to get excited

Global ‘education’ market = US$2 trillion

US training market = US$130bn (employs 500,000 people)

UK training market = US$30bn

Indian training market = US$1.6bn (25% annual growth)

Global eLearning market = US$50bn

Serious Games market = US$1bn to US$9bn Eliane Alhadeff (Future Making Serious Games blog)http://elianealhadeff.blogspot.com/2008/04/reconciling-serious-games-market-size.html

What is the opportunity?

CAUTIONHandle with care!

Business models

Work for hire – custom development

Content product provider (direct or indirect)

Subscription-based models (PAYG, site license etc)

Technology provider, direct or indirect (e.g. authoring tools, game engines)

‘Pure’ consultancy (pre-sales, concept development, project management)

Free content, charged-for services (training, support, consultancy etc)

Who is doing what?

People from the games industry – E.g. Virtual Heros, Blitz & Noah Falstein

People from the web/multimedia industry – E.g. DESQ

People from the learning & development industry

Virtual worlds – Forterra, 2nd Life etc

Traditional modelling/simulation – G2G3, BTS (Visual Purple)

Marketing agencies

InductionChange managementSales trainingProject managementCustomer serviceChannel supportLeadership developmentDealing with difficult peopleAppraisalsB2C promotionsDiversity & inclusionAudit intern trainingIT systems familiarization

What are they doing?

Understanding marketingUnderstanding financePitching to investorsInternational tradeEntrepreneurshipEnergy wise ITCall centre trainingIT security for SMEsBusiness studiesCitizenshipFinancial complianceProtecting IPCorporate Social Responsibility

Where are they doing it?

#2 UK

#3 W. Europe

#4 SE Asia

#1 N. America

SGDI(CA)

SGI(Cov)

GfLI(NYC)

Who are they doing it for?

3M

ShellBP

BNP ParibasFifth Third BankVISA

L’Oreal

Hilton

Best Buy

Coca Cola

OrangeVodaphoneBritish TelecomBelgacomComcastNokiaVolvo

HPCiscoIBM

RaytheonNorthrup Grunman

KPMGPWC

What are the business/project goals?

One word (or short) answers only - what is the most important benefit/feature/'thing' your clients want right now from a serious game project or product?

Flexibility, low cost, & improved training ..the answer is clear: employee engagement.

Real measurable business benefits!!!!!

Demonstrable business benefits at a keen cost....

Clear understanding of and support through process

Already exists (off the shelf product)?

Proof that the investment is justified

Basically learning-by-doing with highly engaging experiences.

Definable Return On Investment -

Predictable delivery and acceptable cost of custom solutions.

Must clearly target a business need

In one word: Outcomes.

Accelerated and lasting change in attitudes

Easily modifiable and interoperable -learning environments.

What kind of technical approaches?

Game industry technology & game craft (HL2, CryEngine, Neverwinter Nights etc)

Specialised technologies with instructional purposes (e.g. Caspian, DISTIL)

Casual/web games (e.g. Wild Tangent, Virtools & Flash)

Virtual World tech (e.g. 2nd Life & |Forterra Olive)

Standard Windows custom creation (C#, Java etc)

eLearning tech (browser-based; AJAX, Flash)

Multimedia (e.g. Director)

Games consoles (mods through to 100% custom)

Mobile phones / PDAs / iPhones

A NICHEFor everyone

VISA – Financial Soccer

Financial Soccer is a fast-paced, multiple-choice question game, testing players’ knowledge of financial management skills as they advance down field, and try to score goals. Educators are encouraged to review and download the curriculum for students, before actual game play.

“Come play the game enjoyed by hundreds of thousands of people all over the world. This game is posted on dozens of game sites and played in more than 125 countries”.

“The game is not only fun, but it is considered by many to be the best way to learn how to use the binary number system.”

CISCO – Binary Game

http://forums.cisco.com/CertCom/game/binary_game.swf

“Learn all about networking whilst you play!”

CISCO Mind Share

BNP ParibasA space/sci-fi themed sim to teach basic banking services awareness & promote the bank’s brand for recruitment purposes.

Built by KTM Advance (FR) - http://starbankthegame.bnpparibas.com

audit training

Delivering productivity gains: (“gaming the skill”) Technical audit training US audience (approx 1,000/yr) 1:3 the simulation:instructor blend Desire to ‘do’ rather than ‘learn about’ Assessed to Kirkpatrick L4 / Phillips ROI

The KPMG simulation enables learners to:1. Practice both technical & soft (client-facing) skills2. Experience accurately recreated audit processes3. Understand real world cause & effect

ASTD 2008Excellence in Practice

Award Winner

Measured productivity improvement > $13m

Delivering effective learning to all staff: (where eLearning could not)

Almost compliance (major cost of failure) F2F costs impossible Very sensitive subject (diversity) Staff apathy / reluctance

Makrini (the diversity game) is:1. Easily accessed (web-based )2. Engaging & rewarding (people will use it)3. Very practical (recognisable tasks)

diversity training

Drivers / ROI / Metrics

Helping to manage change: (show WHY not just HOW)

Major SAP rollout Major process streamline/change Global workforce to communicate with Staff resistance/inertia

PET (the Process Education Tool):1. Easily accessed (through LMS)2. Accurately mapped internal processes3. Demonstrated business cause & effect

IT security games

Deliver mix of business and technology courses

Traditionally F2F in EMEA and AsiaPac

Through training partners

HP MEAI limited by time & resources

Audiences limited by time, travel etc

Caspian Learning & Thinking Worlds3D Serious Game engine & authoring tools (aimed at learning designers)

Daesign (FR)

Simple, branching tree scenarios – cartoon style, pre-canned animations depicting business situations for role playing

Foreterra (US)

Virtual World technology (from There.com) used to allow real time, multiplayer role play in 3D environments

Gamelearn - Merchants

2D/Cartoon style, easy to use game set in historical setting (Venice, 15th century) to train users in sales/negotiation skills

IBM – Innov8/Innov8 2.0

3D and browser-based 2D – raise awareness of and provide skills training around Operations Management / Business Process Management.

Playgen (UK)

Browser-based 2D/3D mix (Flash) – Anti-money laundering training game

RajSim (Holland)

Project management training – fictional scenario about construction/management of world’s largest shark aquarium in China)

TPLD (Scotland)

Infiniteams – team building / dynamics using 2D isometric style (browser based / Java)

The Winning Game – arcade style game, based around proven research into

sports science

Visual Purple/BTS (US)

‘Winning in Wireless’ – 3D, role play + business sim – business skills

Xposim

Oil exploration sim – mix of pre-canned 3D animations, 2D sim interfaces – huge detail in underlying models

Leadership development

Multiplayer (teams of 4), Flash-based using Adobe Flash Media Server. Challenges with firewall, LMS etc.

Leadership development

Leadership development game. Focuses on problem-solving, communication and coaching.

Leadership development

Multiplayer (teams of 4), Flash-based using Adobe Flash Media Server. Challenges with firewall, LMS etc.

What are the challenges?

“So, why aren’t we all rich yet then?”

• Training market is conservative & usually slow to adopt

• Lack of available case studies, examples and proven results

• Predominance of ‘work for hire’ model

• Confusing number of orgs, tech, products, etc – no clear offering

• Global economy – risk averse, low training investment

Corporate/training ‘nuances’

Specific ‘characteristics’ of the training world.....

• LMS’s (control) + SCORM/AICC standards

• DDA/Section 508

• Commoditisation of eLearning

• Training works with ‘content’ creation

• Linear instructional approaches

• “Specify then build” approach to enterprise software

• IT security & infrastructure

Costs/pricing

“What’s the going price of a serious game?”

Work for hire...

• $50k - $250k normal range• $500k - $1m possible

OTS product/solutions approach...

• $10 - $100 per seat• $10k - $100k site licenses• annual licenses

* What is ‘a game’?

• Driven by budget quarters / year ends

• OTS products would be much more attractive (but clients want customisation)

• 20:80 rule – makes clients uncomfortable.

Timescales

“Can you build it by the end of the month?”

Timescales

• Normal range 2 to 6 months• Usually to fit in client budget quarters (3 or 6 months)

1 month

2 months

4 months

5 months

6 months

7+ months

3 months

* Based on analysis of PXL projects 2007-09

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So...where do you go from here?

Web communities

Serious Games People LinkedIn group- http://theevilnumber27.wordpress.com/linkedin-group/

Books & papers- Clark Aldrich (3 books)

Virtual Worlds, Real Leaders - IBM Global Innovation Outlook 2.0 Reportwww.ibm.com/ibm/gio/media/pdf/ibm_gio_gaming_report.pdf

Seriosity report – leadership in games and at workwww.seriosity.com/downloads/Leadership_In_Games_Seriosity_and_IBM.pdf

Serious Games Summit – 23rd March in San Francisco (alongside GDC)

The E-Learning Guild 360 Research report, March 2008, “Immersive Learning Simulations”.

http://www.elearningguild.com/

Publications

Kevin Corti, CEOkevin.corti@pixelearning.com

LinkedIn: www.linkedin.com/in/kevincortiCompany web: www.pixelearning.comTwitter: @pixelearning

+44 (0) 24 7623 6971

PIXELearning LtdThe Serious Games Institute,Coventry Innovation Village,Cheetah Road, CoventryCV1 2TL