Corporate Learning GamesCorporate Learning Games

Serious game development in adult learning & development

– going from potentially big to really big.

Kevin Corti

CEO, 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 Co-founded PIXELearning in 2002, custom development

studio (transitioning to content/product company)

Primary area - corporate L&D

Secondary 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

“Serious” Games? What the @%$#?

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

Supply & demand

Inventory management

Pricing strategy

Risk v reward

Profit & loss

Seasonal factors on demand

Business education

Understanding data

Analytical thinking

Strategic planning

Tactics

Performance improvement

Team-building

Management

New product development

Financing a business

Developing markets

Hiring key staff

Financial management

Achieving sustainability

Entrepreneurship

Zoning

Emergency planning

Managing utilities

Crime prevention

Fiscal management

Environmental management

Civic planning

You Play World of Warcraft? You're Hired!

http://www.wired.com/wired/archive/14.04/learn.html

Recruitment

Coaching / mentoring

Division of labour

Working as (remote) teams

Effective communication

Dispute resolution

Leadership

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…..

Cheaper

Better

Faster

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)

“Game the skill”

PRACTICE

Learning games allow

people to experience

a scenario or

situation in a safe,

realistic manner.

Games allow people to practice

Theory Reflection

Putting theory into

practice.

Builds on theory and

post-reflection

(blend)

Games are complex

Complex

Cognitive

activity

Higher-order thinking skills

Learning games focus

on higher-order

thinking skills.

“Do it right whilst under

pressure” - lots of

Information

dissemination

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”

Learning games allow

users to acquire ‘virtual

experience’.

“Screw up in-game…not

on the job”.

Virtual experienceReal world

application

on the job”.

They can then apply this

to the real world –

transferable learning!

Adults like to solve problems

ADULT LEARNING

Learning by doing!

Adults like problem-

based learning,

challenges and clear

relevance to work or

personal needs.

Problem-based

Learning (goals,

tasks)

personal needs.

Learning games are

based on their job role

and/or work

environment.

Games are engaging

Passive

reception

ENGAGEMENTLearning games positively

encourage user

participation.

Moving from “fill the vessel”

with facts to….

Active

engagement

with facts to….

…empower the user to make

decisions and experience

meaningful consequences.

Learner-centric experiences!

Competition & collaboration

Collaboration

Added realism

MULTIPLAYER

Multiplayer allows

learners to collaborate

and compete.

Makes experience very

life-like, challenging

Peer review

Collaboration

Group support

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

Reasons to get excited

Different business models

Annual recurring revenue streams

Strong margin potential

Strong growth potential

Global ‘education’ market = US$2 trillion

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

UK training market = US$30bn

What is the opportunity?

CAUTIONHandle with care!

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

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

Induction

Change management

Sales training

Project management

Customer service

What are they doing?

Understanding marketing

Understanding finance

Pitching to investors

International trade

EntrepreneurshipCustomer service

Channel support

Leadership development

Dealing with difficult people

Appraisals

B2C promotions

Diversity & inclusion

Audit intern training

IT systems familiarization

Entrepreneurship

Energy wise IT

Call centre training

IT security for SMEs

Business studies

Citizenship

Financial compliance

Protecting IP

Corporate Social Responsibility

Where are they doing it?

#2 UK

SGI

(Cov)

#2 UK

#3 W. Europe

#4 SE Asia

#1 N. America

SGDI

(CA)

GfLI

(NYC)

Who are they doing it for?

3M

Shell

BP

Hilton

Best Buy

Coca Cola

Orange

HP

Cisco

IBMBP

BNP Paribas

Fifth Third Bank

VISA

L’Oreal

Orange

Vodaphone

British Telecom

Belgacom

Comcast

Nokia

Volvo

IBM

Raytheon

Northrup Grunman

KPMG

PWC

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?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....

Basically learning-by-doing with highly engaging experiences.

Definable Return On Investment -

Predictable delivery and acceptable cost of custom solutions.

Clear understanding of and support through process

Already exists (off the shelf product)?

Proof that the investment is justified

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 Paribas

A 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� 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) skills

2. Experience accurately recreated audit processes

3. Understand real world cause & effect

Measured productivity improvement > $13m

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

� Almost compliance (major cost of failure)

diversity training

� 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)

Drivers / ROI / Metrics

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

� Major SAP rollout� 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 processes

3. Demonstrated business cause & effect

IT security games

� Deliver mix of business

and technology courses

� Traditionally F2F in

EMEA and AsiaPac

� Through training � Through training

partners

� HP MEAI limited by time

& resources

� Audiences limited by

time, travel etc

Caspian Learning & Thinking Worlds

3D 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

Timescales

“Can you build it by

the end of the

month?”

• OTS products would be much

more attractive (but clients want

customisation)

• 20:80 rule – makes clients

uncomfortable.

Timescales

• Normal range 2 to 6 months

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

1 month

2 months2 months

4 months

5 months

6 months

7+ months

3 months

* Based on analysis of PXL

projects 2007-09

Page 16

So...where do you go from here?

Web communities

- http://seriousgames.ning.com

Serious Games People LinkedIn group

- http://theevilnumber27.wordpress.com/linkedin-group/

Books & papers

- Clark Aldrich (3 books)- Clark Aldrich (3 books)

Virtual Worlds, Real Leaders - IBM Global Innovation Outlook 2.0 Report

www.ibm.com/ibm/gio/media/pdf/ibm_gio_gaming_report.pdf

Seriosity report – leadership in games and at work

www.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

+44 (0) 24 7623 6971

PIXELearning Ltd

The Serious Games Institute,

Coventry Innovation Village,

Cheetah Road, Coventry

CV1 2TL

LinkedIn: www.linkedin.com/in/kevincorti

Company web: www.pixelearning.com

Twitter: @pixelearning