Imagine putting on a virtual reality headset and entering a stylish, futuristic store where you can browse products, view 3D models, and even try items on your digital avatar before buying them. Or attend a business conference held entirely in an immersive virtual environment where you network face-to-avatar with colleagues from around the world. These are the experiences promised by the "metaverse" - a concept that has graduated from science fiction to a potentially transformative technology trend.
So, what exactly is the metaverse, and why should businesses care? Read on for a strategic overview.
Defining the Elusive Metaverse
There is no single definition for what constitutes the metaverse, but loosely speaking, it refers to shared virtual spaces where people can interact through digital avatars. It's like the internet brought to life in an immersive 3D environment. Most visions of the metaverse involve some combination of virtual reality (VR), augmented reality (AR), 3D avatars, cryptocurrencies, blockchain technologies, social platforms, gaming worlds, and open-source software.
While still very much in its early days, the metaverse combines several key innovations:
VR/AR technologies for more immersive experiences
Persistent virtual worlds that exist beyond any one platform
Interoperability between virtual worlds and experiences
Economy based on digital assets and currencies
The result is dynamic virtual spaces where people can explore digital content, play games, socialise with others, and even conduct business - linking our digital and physical lives more closely than ever.
Economic and Social Promise
Make no mistake, the emerging metaverse is more than just online games and entertainment. It aims to become a flourishing economic and social hub as well.
Conceptually, the metaverse creates space for an "open market" of virtual goods and services, from digital fashion and collectables to advertisements in virtual worlds. If you need evidence of real money changing hands, look at the once insane prices commanded by NFTs (non-fungible tokens) like digital art pictures or virtual real estate plots.
Meanwhile, major tech firms are betting big on the metaverse. Microsoft put down $69 billion to acquire Activision Blizzard, Fortnite maker Epic Games raised $2 billion, and Meta (formerly Facebook) is staking its future on building out immersive social platforms. Clearly, earnest money is flowing into this space.
For business, this presents intriguing opportunities - and risks - as emerging platforms promise new ways to reach customers, showcase products, train employees, collaborate globally, and generate revenue through virtual technologies.
Current State of Affairs
It's important to understand that there is no single "metaverse" right now, but rather a vast collection of virtual worlds, gaming platforms, and AR/VR technologies. These include environments like Decentraland, The Sandbox, and Somnium Space that use blockchain and cryptocurrencies; gaming worlds like Roblox, Fortnite, and Minecraft with millions of active users; Horizon Worlds, which requires Meta Quest VR headsets; emerging AR glasses and devices that overlay digital content onto the physical world; and much more.
Each platform involves different hardware, cultures, capabilities, and user demographics. While not yet truly interoperable, these worlds hint at the broader positive and negative potential as immersive digital spaces play a growing role in everything from entertainment and communication to commerce and professional collaborations.
Strategic Perspectives for Business Exploration
For businesses, how can you make sense of this fragmented landscape? View the metaverse not as a monolithic technology but rather as an evolution of immersive digital experiences. While forecasts estimate the metaverse economy to grow to over $800 billion by 2028, hype needs to be balanced with strategic focus.
Here is some advice on developing an intelligent early strategy:
Start Small to Learn Fast
Begin metaverse exploration with small, focused initiatives that align with business priorities. Localise risks by starting pilots rather than overinvesting too quickly. Tactics may involve showcasing products via interactive virtual storefronts, offering immersive customer support portals, or using VR for specialised training simulations.
Observe what innovators in your industry and other sectors are doing. Attend virtual events, explore brand activations in environments like Roblox and Decentraland, and analyse early efforts. Let this inform your experiments.
Anchor in Fundamentals
While exciting, immersive digital worlds introduce new complexities around data privacy, content moderation, misinformation, and harmful behaviour at scale. Prioritise creating ethical and constructive experiences.
Consider your target demographic and where they congregate online. Tailor experiences that resonate with their expectations and interaction modes rather than over-engineering flashy but disconnected virtual activations.
Focus initiatives on enhancing capabilities from your core business first before getting distracted by peripheral virtual goods or speculative plays. Fuse digital and physical operations using data and learnings synergistically instead of creating fragmented experiences.
Build Talent and Partnerships
Depending on your level of ambition, marrying domain expertise around customer experience and digital product design with specialised metaverse capabilities is critical. Seek talent across gaming, 3D simulation, augmented reality, blockchain, and cryptocurrencies.
Additionally, ecosystem partners can help navigate this complexity. Collaborate with creative agencies and technology vendors experienced in deploying metaverse solutions for enterprise needs. However, be wary of overpromises from inexperienced partners.
Measure What Matters
Given the fluidity in the space, having clear milestones and key performance indicators tailored to business outcomes is vital for focus—contextual metrics beyond simplistic vanity indicators, like how organisations evolved social media strategies, are essential.
Rather than get distracted by the hype, anchor on how virtual initiatives positively impact real business, from better customer engagement to enhanced operations. Frequently iterate based on data instead of making big bets in isolation.
This measured, specialised approach helps cut through inflated expectations around undefined "metaverse transformation" concepts. The technologies hold promise but remain immature, just like the early internet. By linking focused forays to clear objectives, businesses can unlock near-term value while also learning with flexibility.
In Closing
The path ahead remains unclear, but the trajectory points to more immersive digital experiences bridging our virtual and physical worlds. As sci-fi author William Gibson famously said, "The future is already here—it's just not evenly distributed." What role will your business play in shaping what comes next? Today's decisions on strategic direction will determine competitive positioning for the metaverse era.