Presentation given to the audience of SIEGE Conference 2009 in Atlanta by Kevin Corti, CEO of PIXELearning around \'corporate learning games\'.

1. Corporate Learning Games
Serious game development in adult learning & development
– going from potentially big to really big.
Kevin Corti
CEO, PIXELearning
Saturday 3rd October 2009

2. 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&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

3. “Serious” Games? What the @%$#?
“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

4. Business education
Supply & demand
Inventory management
Pricing strategy
Risk v reward
Profit & loss
Seasonal factors on demand

5. Management
Understanding data
Analytical thinking
Strategic planning
Tactics
Performance improvement
Team-building

6. Entrepreneurship
New product development
Financing a business
Developing markets
Hiring key staff
Financial management
Achieving sustainability

7. Civic planning
Zoning
Emergency planning
Managing utilities
Crime prevention
Fiscal management
Environmental management

8. You Play World of Warcraft? You're Hired!
http://www.wired.com/wired/archive/14.04/learn.html
Leadership
Recruitment
Coaching / mentoring
Division of labour
Working as (remote) teams
Effective communication
Dispute resolution

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

10. Reasons why companies are getting excited....
To make adult learning &
development…..
Cheaper
Faster
Better

11. 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)

12. Games allow people to practice
Learning games allow
PRACTICE people to experience
a scenario or
situation in a safe,
“Game the skill” realistic manner.
Putting theory into
practice.
Theory Reflection
Builds on theory and
post-reflection
(blend)

13. Games are complex
Learning games focus
Higher-order thinking skills
on higher-order
thinking skills.
Complex
Cognitive “Do it right whilst under
activity
pressure” - lots of
different information,
competing demands.
Information
Focus on strategy and
dissemination decision-making, for
example, not just
memorizing facts!

14. Virtual experience is cheaper
Learning games allow
users to acquire ‘virtual
experience’.
“VIRTUAL EXPERIENCE”
“Screw up in-game…not
on the job”.
Real world
Virtual experience
application
They can then apply this
to the real world –
transferable learning!

15. Adults like to solve problems
Learning by doing!
Adults like problem-
based learning,
ADULT LEARNING challenges and clear
relevance to work or
personal needs.
Problem-based
Learning (goals, Learning games are
tasks) based on their job role
and/or work
environment.

16. Games are engaging
Learning games positively
ENGAGEMENT
encourage user
participation.
Passive
reception Moving from “fill the vessel”
with facts to….
…empower the user to make
decisions and experience
meaningful consequences.
Active
engagement
Learner-centric experiences!

17. Competition & collaboration
Multiplayer allows
MULTIPLAYER learners to collaborate
Added realism and compete.
Makes experience very
Collaboration
life-like, challenging
and engaging.
Peer support + learn
Peer review from others.
Group support

18. Sounds a bit dull
Erm,
so…no
aliens then?
NO FUN
- By order of the corporation

19. Our Worlds of Makrini – a.k.a. The Diversity & Inclusion Game
PIXELearning & Global Lead LLC

20. Reasons to get excited
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

21. What is the opportunity?
CAUTION
Global ‘education’ market = US$2 trillion
Handle with care!
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

22. 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)

23. 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

24. What are they doing?
Induction Understanding marketing
Change management Understanding finance
Sales training Pitching to investors
Project management International trade
Customer service Entrepreneurship
Channel support Energy wise IT
Leadership development Call centre training
Dealing with difficult people IT security for SMEs
Appraisals Business studies
B2C promotions Citizenship
Diversity & inclusion Financial compliance
Audit intern training Protecting IP
IT systems familiarization Corporate Social Responsibility

25. Where are they doing it?
SGI
(Cov)
#2 UK
#1 N. America #3 W. Europe
GfLI
SGDI (NYC)
#4 SE Asia
(CA)

26. Who are they doing it for?
Hilton
Best Buy
3M
HP Coca Cola
Shell Cisco
BP IBM Orange
Vodaphone
BNP Paribas Raytheon British Telecom
Fifth Third Bank Northrup Grunman Belgacom
VISA Comcast
KPMG Nokia
L’Oreal PWC Volvo

27. 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?

28. Flexibility, low cost, & improved training
..the answer is clear: employee engagement.
Basically learning-by-doing with highly engaging experiences.
Real measurable business benefits!!!!!
Definable Return On Investment -
Demonstrable business benefits at a keen cost....
Predictable delivery and acceptable cost of custom solutions.
Clear understanding of and support through process
Must clearly target a business need
Already exists (off the shelf product)?
In one word: Outcomes.
Proof that the investment is justified
Accelerated and lasting change in attitudes
Easily modifiable and interoperable -learning environments.

29. 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) A NICHE
For everyone
Multimedia (e.g. Director)
Games consoles (mods through to 100% custom)
Mobile phones / PDAs / iPhones

30. 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.

31. CISCO – Binary Game
“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.”
http://forums.cisco.com/CertCom/game/
binary_game.swf

32. CISCO Mind Share
“Learn all about
networking whilst you
play!”

33. 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

34. 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) skills
2. Experience accurately recreated audit processes
3. Understand real world cause & effect
Measured productivity improvement > $13m

35. diversity training
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)

36. 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 processes
3. Demonstrated business cause & effect

37. 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

38. Caspian Learning & Thinking Worlds
3D Serious Game engine & authoring tools (aimed at learning designers)

39. Daesign (FR)
Simple, branching tree scenarios – cartoon style, pre-canned animations depicting
business situations for role playing

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

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

42. IBM – Innov8/Innov8 2.0
3D and browser-based 2D – raise awareness of and provide skills training around Operations
Management / Business Process Management.

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

44. RajSim (Holland)
Project management training – fictional scenario about construction/management of
world’s largest shark aquarium in China)

45. 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

46. Visual Purple/BTS (US)
‘Winning in Wireless’ – 3D, role play +
business sim – business skills

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

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

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

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

51. 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

52. 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

53. 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’?

54. Timescales
“Can you build it by
the end of the • Driven by budget quarters / year
month?” ends
• OTS products would be much
more attractive (but clients want
customisation)
• 20:80 rule – makes clients
uncomfortable.

55. Timescales
• Normal range 2 to 6 months
• Usually to fit in client budget quarters (3 or 6 months)
1 month
2 months
3 months
4 months
5 months
* Based on analysis of PXL
projects 2007-09
6 months
7+ months
Page 16

56. 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)
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)

57. Publications The E-Learning Guild 360 Research report, March
2008, “Immersive Learning Simulations”.
http://www.elearningguild.com/

58. +44 (0) 24 7623 6971
PIXELearning Ltd
The Serious Games Institute,
Kevin Corti, CEO Coventry Innovation Village,
Cheetah Road, Coventry
kevin.corti@pixelearning.com CV1 2TL
LinkedIn: www.linkedin.com/in/kevincorti
Company web: www.pixelearning.com
Twitter: @pixelearning