The whitepaper highlights the importance of having cybersecurity, privacy, and ethics standards for emerging technologies including AR, VR, and XR.
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Value creation in the metaverse: The real business of the virtual world is examined in this report.
This report surveys more than 3,400 consumers and executives on metaverse adoption, its potential and how it may shift behaviors.
It also draws expertise from McKinsey Technology Council members and external experts to analyze value creation potential & investment landscape.
Research includes drivers of activity among major corporations, venture capital & private equity funds as well as sectors closely tied to technology & uses.
Report aims to drive dialogue about development of metaverse; help leaders understand power/potential; identify strategic imperatives; act as positive force for evolution.
Metaverse has potential to impact employee engagement through customer experience/omnichannel sales/marketing/product innovation etc., but questions remain including responsible building process etc..
There are questions around the longevity and potential of the metaverse, which we believe has the potential to be a new iteration of the internet.
The technology stack for metaverse consists of four core building blocks – content & experiences, platforms, infrastructure & hardware and enablers.
Corporations, VCs and PEs have invested $120 billion in 2022 alone into metaverse; largely driven by large tech companies.
Factors driving investor enthusiasm include technological advances across required infrastructure as well as consumer led brand marketing & engagement.
Survey found significant excitement about potential of metaverse from 3,400 consumers/executives with applications spanning socializing to commerce & learning.
Almost 60% of consumers are excited about transitioning everyday activities to the metaverse, with connectivity being the biggest driver.
95% of business leaders expect it to have a positive impact within 5-10 years, and 61% expect it to moderately change their industry operations.
It may generate up to $5 trillion in impact by 2030 - equivalent to Japan's economy today.
Ecommerce market could be impacted between $2tr - $2.6tr, academic virtual learning market between $180bn-$270bn etc..
Companies leveraging the metaverse can build lasting competitive advantages: define goals & role; test/learn/adopt; prepare for scale; explore becoming user themselves.
Urgent challenges across firms/employees/governments will require reskilling workforce and defining ethical guidelines around data privacy & security etc..
Value creation in the metaverse is a real business opportunity with $13 billion of venture capital and private-equity funding invested into it in 2021.
Estimates suggest that by 2030, the value of the metaverse could reach more than $120 billion+.
Consumers are excited about transitioning everyday activities to the metaverse such as entertainment, gaming, travel, shopping and socializing.
Enterprises use cases include marketing campaigns or initiatives, learning and development for employees, meetings in the metaverse and product design or digital twinning.
To capture value from this virtual world one should develop a strategy focused on their goals while testing new approaches to learn and adopt further activities before scaling them up through talent & tech capabilities embedding into business strategies & operating models.
The Mosaic browser was released in 1993, the same year CERN released World Wide Web software into the public domain.
We are at an inflection point in metaverse development, with potential for democratization and consumer control of the internet.
Challenges remain to make a fully functioning metaverse technically feasible - networks need to be faster and computing power stronger.
Gaming is already popular: it has three billion users globally and a total value of more than $200 billion.
This report focuses on economic & business impact of the metaverse's positive potential.
The metaverse is the next iteration of the internet, combining digital and physical lives.
It has three features: immersion, real-time interactivity, and user agency.
It will also have interoperability across platforms/devices, concurrency with thousands interacting simultaneously, and use cases beyond gaming.
Executives report greater financial success when adopting metaverse technology with higher current/expected profit margins.
The term 'metaverse' was first coined in Neal Stephenson's 1992 novel Snow Crash.
It has been depicted in sci-fi and pop culture for longer than the term itself has existed since 1978.
John Hanke, CEO of Niantic, stated that the metaverse is a continuation of where tech was headed prior to COVID-19 and is a union between digital platforms such as Instagram, email and messaging with real life activities.
Ready Player One presents a virtual world (the OASIS) as superior to reality; however, the best version of the metaverse should complement rather than compete with it.
Saying there are many metaverses is like saying there are many internets.
The metaverse is the envisioned end state of incorporating all digital worlds and interoperability between them.
Metaverse users exist on multiple platforms, such as Decentraland, Fortnite, Minecraft, Roblox and The Sandbox.
AR/VR are important interfaces to experience the metaverse but not exclusive; other devices may be used in future.
Gaming has been critical for seeding the metaverse but it’s not exclusive to gaming; fitness, education and shopping popular too.
Web3 contributes to the metaverse with decentralization & interoperability but they're different - Web3 succeeds Web 2 while Meta succeeds current computing & networking paradigm.
Three billion gamers in the world span geographies, generations and genders.
Roblox had nearly 55 million DAUs in February 2022 and generated $1.9 billion revenue in 2021.
Minecraft has 140 million monthly active users; Fortnite has 80 million MAUs.
Advances from Web 2 to 3 give rise to metaverse which is centrally owned, decisions based on shareholder value & data stored through PC/Console VR/AR hardware, mobile app or crypto wallets.
Platform characteristics include organizational structure, payments infrastructure & digital assets ownership with portability enabled by user consensus governance & native tokens issued for participation of activities like avatar creation etc..
Commercial game studios/developers content creators provide services like multiplayers games streaming competitive gaming play to earn experiences while 70% revenues go directly to developers via peer -to -peer model & 30% goes platform or app store earned revenue when purchased; NFTs can be used for secondary trades earning royalties to creators as well as opportunity for gamers /users through play or platform governance participation.
Men prioritized connectivity and real estate, while women were most excited by avatar customization and events.
Metaverse can be broken down into content & experiences, platforms, infrastructure & hardware, enablers.
Ten component "layers" form the structure of metaverse experiences: back-end tech enablers to virtual worlds.
Compute infrastructure limits concurrency today; network latency/bandwidth issues need addressing; interface hardware transitioning from flat screens to XR over 5 years.
Mobile phones may enable AR and become the main way of accessing the metaverse, increasing access democratization.
XR devices such as contact lenses and brain-computer interfaces won't emerge for at least a decade.
Peripherals like on- and off body sensors to haptics are still emerging with potential to expand market.
Incumbents can be disrupted by innovation, but technology demands must be met in order for fully realized metaverse.
User experience is key - need easy discovery system that allows ecosystem to bootstrap and grow.
Today's metaverse consists of ten layers which fall into four categories
Content & experiences enrich the metaverse, with first-party content, developer content and UGC.
Applications range from learning to collaboration and industry specific purposes.
Virtual worlds are environments where users can gather, interact, create and experience different things.
Platforms facilitate distribution of content/experiences apps such as browsers search/visual search app stores in-app storefronts etc.
Creator platforms provide tools for building 3D experiences including design game engines AI services creator tools etc.
Device hardware components accessories OS layers form part of human interface layer while cloud semiconductors networks power metaverse infrastructure.
Security identity data governance privacy & moderation platforms manage digital identity avatars social graphs payments asset stores enable economy within metaverse.
Interest in metaverse has exploded globally with Google searches up 7200%, Roblox active users at 55 million DAU's Microsoft buying Activision Blizzard providing building blocks for it all too!
Metaverse platforms have attracted companies such as Nike and Gucci, and Fortnite has generated more than $14 billion in transactions.
Over 300 million people are global subscribers of Naver Z's Zepeto, which partnered with Samsung for the Galaxy S22 Treasure Hunt campaign.
An anonymous user purchased virtual land next to Snoop Dogg’s “Snoopverse” for $450K.
Adidas, HSBC & Tokens.com are some institutional investors investing in metaverses while virtual architecture firms provide supporting infrastructure.
More than $120B has been invested into metaverses since 2021; doubling from 2020's figure of $57M
Large technology companies such as Meta, Microsoft, Nvidia, Apple and Alphabet are investing in the metaverse.
Investment in metaverse-related activity is expected to reach $90-$100 million by 2022.
In 2021 alone, M&A investments totaled ~$95-$105 million.
VC & PE funding combined with internal corporate investment totals ~$6 - 8 billion from 2020 till date.
Andreessen Horowitz recently launched Games Fund One of $600 million for game studios and infrastructure related to the metaverse.
Venture capital is investing heavily in the metaverse space, with examples such as NFT marketplace OpenSea raising $300 million at a $13.3 billion valuation and Yuga Labs (creator of Bored Ape Yacht Club) receiving $450 million at a $4 billion evaluation.
Sectors leading metaverse adoption today plan to dedicate significant shares of their digital investment budgets to it in the next 3-5 years.
Corporations and brands outside tech are putting resources behind efforts to get ahead; Disney appointed an executive for its strategy while LEGO invested in Epic Games, which collaborated with Balenciaga who launched a dedicated division inside virtual space.
The most recent technological trends have declining returns and brands are seeking innovative ways to gain competitive advantage through the metaverse's expanding use cases.
The metaverse is increasingly real, with close to 3 billion users and commerce in the billions of dollars.
Investors are enthusiastic about the metaverse due to multiple factors such as improved infrastructure, technological advances like back-end engines & edge computing, and network/synergy effects.
5G will enable processing large worlds on mobile devices while Unreal Engine & Unity have reduced barriers to creation.
Edge computing allows data to be processed locally across smart devices, reducing the need for sending it to cloud and addressing bandwidth/latency issues.
5G technology is key in facilitating edge computing; 6G may enable more sophisticated uses of metaverse.
AR/VR headsets maturing quickly with companies such as Meta, Microsoft, Qualcomm & Sony investing in space; gloves & bodysuits gaining traction.
Software development driving metaverse apps e.g., Microsoft building solutions on Azure Digital Twins platform.
Gaming already mainstream but other use cases emerging rapidly - social media experiences, immersive retail etc.; brands experimenting too (e.g., Gucci).
Gaming has been driving the development of the metaverse.
Socializing, Fitness, Commerce and Remote Learning are core categories that span daily activities in the metaverse.
Enhanced remote collaboration and reimagined learning & development will be possible with a move to 3D immersive spaces.
Use cases beyond gaming have already emerged according to Kavya Pearlman (founder/CEO XR Safety Initiative).
Metaverse may enable tangible productivity improvements in education & healthcare sectors.
BMW is utilizing Nvidia Omniverse to build a digital factory twin, which is expected to improve supply chain efficiency.
50% of work activities can be improved with automation, digital twins and 3-D/4-D printing.
Dubai's Virtual Assets Regulatory Authority established Metaverse HQ on The Sandbox, making it the first regulator in the emerging digital space.
Seoul announced a five year "Metaverse Seoul Basic Plan" that will create virtual City Hall plaza and civil service center for citizens.
Guardians of Metal & Concrete game from Whole Earth Foundation crowdsources data collection to address social issues.
Web3 enabled metaverse advances opportunities for creators (to monetize content/talents) & users (own/monetize data).
Creating solutions to enable the digital identification of users crossing over from physical to virtual worlds.
Improving wallet experience by replacing traditional keys and addresses with more familiar naming conventions.
Advancing graphical user interface of metaverse venues for a more immersive VR-like experience.
Expanding utility of Web3 metaverse venues to generate true value such as unique access and experiences.
Positive gaming demographic trends widening across age and gender groups.
48% of gamers in China and 41% of US video-game players are female.
79% of 2020 US video-game players were over 18, 41% older than 35.
Over 50% increase in "influencer" marketing across platforms from WeChat to YouTube in the past 5 years.
70% of general consumers rate their digital identity as important or very important.
Marc Petit (VP Epic Games' Unreal Engine Ecosystem) wants a better economy for creators where things are fair, open and interoperable.
Consumers increasingly express discontent with many aspects of today's internet such as misinformation, data and privacy concerns etc..
Consumers are excited about the transition of everyday activities to the metaverse, with connectivity being the number one driver.
Within five years, consumers hope to be socializing and communicating in the metaverse with family and friends.
Content creators are expressing discontent over monetization and distribution which is driving Web3 movement globally.
Investors staking a position early as value pools could be disrupted by major developments in this space.
Companies negotiating terms directly with aspiring metaverse operators so they remain first class citizens without intermediation from any company they partner with.
Intense interest has ignited dramatic corporate experimentation laying foundation for its evolution in foreseeable future according to Salesforce global innovation evangelist Brian Solis.
60% of consumers are excited about the transition of everyday activities to the metaverse.
Connectivity with people and exploring digital worlds is a major driver for excitement among consumers.
66% of respondents expressed enthusiasm for attending live events, gaming, shopping, and travel in the virtual world.
Consumers desire to travel virtually and are already engaging in branded virtual experiences.
80% of consumers appreciate shared virtual experiences with friends/family, 63% prefer virtual work meetings, 59% enjoy virtual education sessions more than in-person ones.
81% Gen Z have played video games in the past 6 months averaging 7.3 hours per week.
Shopping, socializing, fitness activities, dating and education are preferred activities for people shifting to a virtual world compared to physical alternatives.
79% of metaverse consumers have made a purchase, mainly to enhance their online experience.
47% purchased in-game items, 37% improved in-game experience, 33% gained benefit and 20% acquired an asset.
95% of senior executives expect the metaverse to positively impact their industry within 5 to 10 years and 61 % moderately change how they operate.
65 % expect more than 5%, 24 % more than 15 % revenue from the metaverse technology.
Early adopters reported positive operating margins while those still contemplating showed negative profits; innovators expected further improvements in 3 yrs.
Executives are looking for a variety of capabilities, including content creation, corporate strategy and cybersecurity.
Top 5 capabilities across industries were identified as business (model) building, product development/coding, infrastructure/back-end engineering, blockchain/commerce/payments and product design.
Early adopters are most interested in business model building, infrastructure & back end engineering etc., while contemplators require legal risk & compliance expertise along with analytics.
Cryptocurrency is considered the top metaverse technology followed by AI and AR/VR by executives for businesses in the future.
Executives highlight revenue uncertainty as a key barrier to entry, worry less about the technology involved.
Top 3 barriers: Uncertain return on investment (31%), No business model for metaverse tech (29%), Lack of managerial capability (10%).
Bottom 3 barriers: Cannot access/integrate data across systems (4%), Lack sufcient computing infrastructure or hardware (4%), Lack access to external funding for tech investments (<1%).
Investment in AI estimated at up to $10 billion, now $93 billion - Metaverse's economic value expected to rise exponentially due its appeal and consumers spending on digital assets.
By 2030 the metaverse could generate $4 trillion to $5 trillion across consumer and enterprise use cases.
Potential sector implications: Industries are already implementing metaverse initiatives, with most efforts centered around marketing.
Five industries likely to harness the metaverse for both consumer and business uses include apparel, fashion, and luxury; consumer packaged goods; financial services; retail; and telecommunications, media, and technology.
Net-new business models and revenue sources can be used to project a company's penetration into markets.
Operations can produce higher productivity, collaboration, and lower costs in the technology sector with efficient digital networks of data centers.
Healthcare is particularly interested in using metaverse for meetings and events.
Companies across industries are experimenting with the metaverse for marketing, education, and commerce.
Examples include product marketing through virtual worlds or hosting virtual events/conferences.
Example Use Cases
Companies spanning industries are experimenting in the metaverse for everything from marketing to education and commerce. Here are some leading examples:
Product marketing: Coca-Cola launched digital assets to support several marketing campaigns, such as auctioning NFT collectibles for International Friendship Day.
Customer engagement: Gucci launched its Gucci Garden on Roblox, a set of brand-themed rooms that aligned with the launch of a similar physical space.
Next-generation commerce: AnamXR uses game-engine technology to create cloud-based, virtual e-commerce platforms for 3-D immersive shopping experiences.
Brand loyalty: Adidas’ Bored Ape Yacht Club NFT release provided access to physical streetwear drops, driving loyalty and creating a community around its virtual goods.
Customer service: Helpshift is rolling out solutions for customer-support tools in the metaverse, including user feedback, virtual identity verification, and VR support.
Education: The University of California at San Diego’s Rady School of Management uses a virtual campus for real-time lectures, breakout spaces, and outdoor areas.
Recruiting: The Havas Group launched a village within The Sandbox that hosts recruitment services for improved candidate and onboarding experiences.
Digital twins: BMW is experimenting with creating digital twins of entire factories, and designing products using Nvidia’s Omniverse technology.
Public services: Seoul’s plan is to become the first city to host a metaverse platform for public services by 2023.
Virtual tourism: Ariva Digital’s Wonderland platform is working to allow users to travel to imagined or recreated destinations.
Companies can promote themselves further with engaging branding, marketing, and user experiences in the metaverse.
New products and services that provide seamless discovery, purchase, and post-purchase journeys are possible.
Manufacturers could create fully personalized products given an XR layer such as vehicles and devices.
Ecommerce may have market impact of $2 trillion - $2.6 trillion by 2030 depending on development case realized.
Immersive brand engagement and immersive, metaverse-enabled brand engagement revolutionizing customer service.
Decentralized financial (DeFi) structures driving efficiency with contextual financial services eg consumer lending or insurance.
Next level digital customer acquisition with fully personalized fnancial offer enabled by metaverse data.
Metaverse enabled telemedicine, XR enabled R&D and optimized hospital operations now faster, safer and more accurate.
XR enabled factory floor ofering manufacturing solutions for customers with product personalization revenues.
Metaverse to offline conversion in retail with new revenue from branded virtual asset sales as intermediary.
Enhanced in store experience tailored surroundings e.g ski shop on slopes & XR enable try ons.
Immersive content delivery experiences using the metaverse for next level of digital media engagement & devices enabling immersive experience regardless of platform or techology.
Metaverse tailored software and tech stack can create impact across the value chain for sectors, such as digital fashion & luxury goods, consumer products, apparel, financial services.
Examples of use cases include immersive brand engagement with virtual events to connect with community; monetization of existing intellectual property into new experiences; next-level product personalization and collaboration; trusted digital services including payments and signatures.
The metaverse also enables telemedicine through XR enabled R&D and remote diagnostics/procedures; data driven personalized healthcare consultations with access to real time data.
In addition it revolutionizes customer service reducing employee cost while improving customer experience; optimizing hospital operations faster, safer more accurate.
XR-enabled manufacturing solutions for next level industrialization of customers.
Platforms, apps and robots to run IoT manufacturing with digital twins.
Simulation of manufacturing and assembly up to “screw-level” detail in XR.
Collaborative R&D with increased safety through remote work.
Visibility into supply chain process & real time data tracking/analysis in MV.
Manufacturing services leveraging tech via digital twins in metaverse + personalized products given XR layer (eg vehicles).
Metaverse retail driving physical product sales & virtual asset sales as intermediary source of revenue.
Enhanced in store experience w/ tailored surroundings enabled by XR technology; direct to consumer shopping regardless of distance possible too!
Immersive content delivery experiences within the virtual space, leveraging the metaverse for new media engagement & ad based revenue streams from stack and content provisioning.
70% of US consumers say their digital identity is as important as their real-life identity.
Gaming skins market reached about $40 billion in 2020.
Balenciaga's virtual collection resulted in a 40% increase in searches for its brand after launch.
Gucci sold a Dionysus bag on Roblox, resold at bids of more than $4,000 per bag.
Adidas' NFT collaboration with Bored Ape Yacht Club made sales of more than $100 million.
Gucci Garden art installation on Roblox attracted 20 million visitors.
Zepeto launched a virtual “Loubi World” to showcase its spring-summer 2021 collection while interacting with a digital twin of Christian Louboutin.
Marni's Wear We Are metaverse experience, powered by AnamXR, was an immersive digital journey with 3-D scanned models from their fashion show.
Token gating can be used to extend the sense of exclusivity to the metaverse.
Vans and Nike have both created successful experiences on Roblox, garnering millions of visitors in short periods.
Louis Vuitton released a game last year where players could acquire NFT art while experiencing the life journey of their founder.
Luxury brands are now considering creating their own platforms and virtual worlds which carries risks such as fragmentation and interoperability issues.
Fabricant has partnered with apparel companies including Adidas, Under Armour & Tommy Hilfiger; DressX also features over 100+ designers & 1k items from H&M etc..
Daniel Avakian's virtual boutique offers customers an experience similar to his physical store across both locations - real world and metaverse.
CPG companies may face challenges in the metaverse as their products are traditionally connected with practicality and usability in the physical world.
Digital assets and virtual experiences have been popular plays for CPG, such as Hasbro's Nerf Hub or Coca-Cola launching a digital jacket to Decentraland.
Companies can also use NFTs for customer loyalty by extending unique privileges to holders.
P&G Beauty has entered with a virtual storytelling world called BeautySphere, while L'Oreal filed 17 patents related to NFTs & metaverse.
If consumers shift more experiences into the metaverse, sponsorships parts of capital will likely flow there too fueling virtual experiences.
CPG brands should consider how they can use their brand power to venture into new business-building opportunities in the metaverse.
It may be best to collaborate with established tech providers, such as LEGO did with Epic Games, when entering the metaverse.
When deciding how much resources to direct towards it, leaders need to balance maximizing customer engagement while maintaining a healthy ROI.
In order for the metaverse to succeed in consumer sector, it needs to blur the line between online and offline experiences while collecting valuable data points.
Banks are exploring the potential opportunity of the metaverse in various industries.
Financial services companies use Web 2.0 metaverse for employee training and virtual investment advisory services, but their impact on business models has been limited.
HSBC purchased virtual land in The Sandbox to engage with e-sports enthusiasts and Sokin is building infrastructure for processing metaverse payments/transactions/investments.
Value creation opportunities include marketing, bridging trust gaps between digital IDs or assets, and emerging products & services like cyber insurance.
Embedded bank-like services, such as multicurrency cash management, could emerge to serve metaverse users.
Companies may need to decide between investing in the metaverse and establishing a minimal position or doing nothing.
Retailers should use the metaverse to build experiences, foster their brand community and deploy applications in-store.
Virtual stores have been experimented with since 2017; 25% of consumers have shopped in one today and 70% made purchases.
Retailers leverage technology to enable customers to try out products not available in store and reduce returns.
Dyson launched a virtual store accessible through VR headset, while multiple US furniture retailers used AR for customers to see how furniture will look in their living rooms.
Samsung launched a virtual store modeled on its physical NYC one, allowing users to complete quests for NFT badges.
Ralph Lauren, Urban Outfitters and Walmart have filed trademarks related to opening virtual world stores.
Chipotle established a Halloween campaign with VR restaurant offering real burrito voucher; Carrefour recruited via metaverse platform.
The metaverse presents opportunity for personalized environment & malls where users can explore/buy digital items using avatars.
Metaverse will drive majority of sales growth in Europe & US over next 5 years.
Personalized promotions & privileges may be powerful marketing strategies for retailers.
Retailers must seek balance between physical retail network and virtual world offerings to drive real-world sales.
Technology companies have opportunity to capture value through infrastructure, developer tools/platforms, security solutions required by metaverse environment.
Virtual worlds and content are focused on gaming or social experiences, varying in graphics fidelity, immersivity, and centralization. Expect fragmentation with higher levels of interoperability.
Three archetypes will populate the metaverse: first-party content, developer content, user-generated/creator content; brands as creators too.
Four technology enablers needed for full potential: devices (AR/VR etc.), interoperability & open standards, platforms to facilitate economy & tools for secure metaverse.
Unintended consequences possible due to best intentions; need data collection risks around impersonation and harassment addressed.
Stakeholders should learn from past generations of online community and platform builders to create an ethical, safe and inclusive metaverse experience.
According to Cathy Hackl, chief metaverse officer & cofounder of Journey, the goal is not to escape reality but rather embrace it with virtual content & experiences that can make us feel more connected & happier.
All decisions around a company's involvement in the metaverse should be filtered through how it will augment/elevate human experience.
Design principles must consider people’s needs and outcomes; shift from social tools towards relationships between people/places/brands; design responsibly; ensure accessibility/inclusivity for all people everywhere; reduce physical & mental friction when engaging across worlds.
Focusing on the human experience within the metaverse is a must to reap its full benefits and opportunities.
Brian Solis: Metaverse needs to help people see what they couldn't before, know what they didn't know, and feel things they didn't know to feel.
The metaverse will connect people not only with each other but also with brands, places, cities etc in meaningful ways.
Pearlman: Attack surface has expanded beyond servers/nodes/networks into our brains & living spaces.
Hanke: Internet evolved so far that people are recognizing limitations; swinging back towards open model giving more sovereignty over data & information.
Areas requiring guidelines include data privacy, security (cybersecurity + payments), ethics & regulatory compliance for safety (moderating content).
XR technologies can be used to collect eye-tracking data, such as blink duration and frequency, pupil size and reactivity, facial attributes and iris characteristics.
Physical health needs to be considered in VR environments; sustainability should factor in the massive amount of computing power required for blockchain transactions; equity and fairness should eliminate bias.
The metaverse brings potential societal change with virtual work spaces, assets ownership, consumption of land/goods/socializing. Organizations must develop products responsibly while addressing emerging issues quickly before they become systemic problems.
Define a metaverse ambition and develop a business strategy to capture value.
Test, learn, and adopt activities such as NFTs, immersive experiences, native advertising and having a metaverse presence with the right metrics for initial activations.
Identify capabilities needed to scale; embed the metaverse in business strategy & operating model.
Steps to prepare your business for the metaverse.
1. Develop a value-focused strategic stance in two steps:
a. Define your metaverse goals, such as whether you want to generate demand across existing and new segments, build communities, and create new revenue streams
b. Determine the role you want to play, from building experiences to facilitating interactions and enabling infrastructure.
2. Test, learn, and adopt in three steps:
a. Launch initial activities and use cases, exploring opportunities such as NFTs, immersive experiences, native advertising, and having a metaverse presence.
b. Monitor near-term results to refine long-term potential by identifying the right metrics for initial activations and testing long-term monetization options.
c. Learn more about users, examining behavior on different platforms and undertaking primary research.
3. Prepare to scale in two steps:
a. Identify and start scaling capabilities through sourcing the talent required and establishing the necessary technology infrastructure and tooling.
b. Embed the metaverse in your business strategy and operating model, while clearly identifying who will drive the initiatives in your organization.
Charlie Bell, Microsoft’s executive vice president of security, compliance and management has pointed out that the internet's issues will still be present in the metaverse.
Policymakers need to plan ahead and define legal policies for the metaverse while collaborating with global government bodies on standards and policies.
Public sector entities have an opportunity to reimagine public services such as education, healthcare and planning community spaces in the metaverse.
Examples are emerging of city governments outlining their strategies for utilizing the metaverse including Dubai aiming to reach $4 billion by 2030 and Seoul spending at least $32 million on a virtual ecosystem.
National/local governments need to decide when is right time act; they should build capacity & structures so they can stay abreast of changes & respond quickly when needed.
By 2030, it is possible that more than 50% of live events and 80% of commerce will be impacted by the metaverse.
The average internet user could spend up to 6 hours a day in metaverse experiences by 2030.
It requires collective leadership to ensure actions taken responsibly shape the evolution of this revolution.
Investment flows into metaverse technology are divided into external investments from funds & corporations and internal corporate investments.
It has potential to generate up to $5 trillion in value by 2030, making it too big for businesses, policymakers & citizens to ignore.