Second Life: Succeeding in Virtual Times - Case Study Example

Running Head: SECOND LIFE Second Life: Succeeding in the Virtual World [The of the will appear here] [The of the will appear here] [The name of the Professor] [Course] Ans. 1 With the help of a projective analysis in front of the financial companies, the companies can do a projection as to where this world will be in the coming future. Through neural network approach at second life the financial companies can detect what pattern the investment is following in the virtual world to get an idea of the real world because it is the human that is controlling the second life virtual world.

For example the financial companies can forecast the consumer spending pattern in the future and can direct its investment in the amount and project that would be desired by the avatars. This would have a proper allocation of resources resulting in higher return on invested capital. Ans. 2 Decision support systems are basically computer-based information system that aids the organizations in the decision making process. At Second life companies such as Nike, Reebok or any other consumer product company could make use of DSS and can project the sales figure for the years to come.

Companies can compare the sales figure of one period with another period to find out the reasons behind the drop or boom in sales and act likewise. By the help of Decision support system on second life, companies can have better allocation of their resources. Business units or product lines that are not performing well should be divested and those that are generating high sales should be harvested with more capital. This may allow them to develop competitive advantage in their respective fields by focusing on their core competency. Ans. 3 Apparel companies have a faster turnaround especially in today’s rapidly changing environment because of the fashion-hungry consumers.

Digital dashboard consolidates the information that is spread all over the organization and often the external organization relevant information onto one platform. With the help of digital dashboard, organizations have a snapshot of the whole organization in such a way that it helps managers to make decisions efficiently and effectively in line with the current demands and changing trend in the market. Apparel Companies such as American Apparel or Calvin Klein for example can use the digital dashboard resource kit (DDSK) to build an interactive information management and analysis system.

This will aid in the examination of the various units of the organization as well as aid in identifying the negative trends. Reports could be generated that forecast the new trend and on the basis of these reports, the apparel companies can align their strategies and goals. Ans. 4 Second life being the depiction of the real world can be used by the organizations when they are faced with real world customer service issues by providing strategies for dealing with such issues. Companies for example could build a community of customers to gauge the success of their products.

It should be proactive to the customer issues rather than being reactive as most of the organizations today are being reactive to the problems faced by consumers while developing and marketing their products such as a small product demo exhibition where the product could be tested before final launch. Organizations could make use of touch points that link the customers with the product development team predicting the latent needs of the customers. CRM software could be used to identify and reward organization’s loyal customers; this would in turn boost the long term sales because it is the 20% of customers who generate 80% of the sales for a company.

Winning new customers costs more and generates fewer profits than retaining your previous customers. Ans. 5 Order entry process starts from the receipt of an order for a particular product item to the delivery of particular order. Rather than having a manual entry system for an order entry; fulfillment process companies at Second life for instance could have an automated system of order entry process. This would reduce the lead time that the customer or business client has to wait for the order to be delivered.

ERP systems could be deployed that aligns the various departments of the organization to make its operations faster. Companies should get rid of non value adding activities that are a hindrance to effective order entry process and then make the system automated resulting in a shorter order fulfillment cycle. Ans. 6 Companies can reinvent its relationships with its stakeholders who are the partners, customers and employees with the use of second life virtual world by arranging trade shows, promotion campaign and direct contact with the customers at second life.

Listening to customer needs before they have a chance to word their needs, would help the companies in maintaining a good relation with its prospective customers. Second life is a virtual world that is close to the real world and you can judge human needs and characteristics if you study the avatars of second life. Customers, partners and employees are a part of the second life world so companies could monitor the behavior of these people and implement strategies designed to attract and retain them.

They could for instance have an integrated system such as a software program that understands customer, partners and employee divergent needs and expectations so that profits could be earned, and customers could be delighted and thus partners retained for lifetime.