Last Thursday I spoke with an Iowa State University class inside Second Life. The course (Management Information Systems taught by Associate Professor Brian Mennecke) encourages students to assess possible e-commerce strategies and business models within SL.

Unlike a traditional college class, all course interaction takes place in an open-air “classroom” inside Second Life via virtual avatars and chat. Although I did note some similarities to my University experience: A few students showed up late, while others needed help finding the room.

Many of the students wanted to know how to successfully leverage Second Life for existing businesses. While there is no exact formula, my answer is this: Organizations must create opportunities for SL residents to truly become engaged with their brands and products. The prime example is Pontiac’s Motorati Island, a virtual racetrack and garage where gearheads and auto enthusiasts can create their own car projects and take them for a spin.

Pontiac has remained true to what makes Second Life popular: Allowing users to create personalized content. On top of that, Pontiac gets a window into the consumer’s imagination, seeing what they really want out of an automobile. Just think of it as inexpensive and hyper-insightful R&D.