Hello readers,
From the time I wrote my first blog on the metaverse to date, there has been a lot of evolution that happened in the metaverse space.
Meta and Microsoft have partnered to bring Microsoft Teams and other Microsoft 365 apps to Oculus quest headsets. With this integration between two tech giants, the management of Oculus quest can also be done through Microsoft Intune.
Meta has also announced similar integration with Zoom video conferencing, and it will be fun to see how we can join a Zoom meeting from Horizon workrooms.
At my current organization (thanks to my leaders), I got an opportunity to test some use cases of the metaverse, mostly related to meetings and collaboration. I have explored platforms like Virbela, FrameVR, 3DFrame, Horizon workrooms(beta), AltSpaceVR, MeetinVR, etc. All these platforms fulfill one of many trends in the blog below.
Why metaverse?
This is an important question organizations should ask, what are their best use cases where metaverse can be adopted as a trending technology?
According to the report shared by McKinsey & Co., metaverse will significantly impact the commercial and personal lives of humans.
There has already been more than $120b+ in investment that has flowed into the metaverse in the year 2022
79% of consumers active on metaverse have already made a purchase in some form
More than 15% of corporate revenue will come from metaverse in the year 2023
Metaverse market would expand to $5 trillion by the year 2030
According to the survey report by PwC, business leaders think the metaverse…
So what is metaverse?
Gartner defines a metaverse as, “a collective virtual shared space, created by the convergence of virtually enhanced physical and digital reality. A metaverse is persistent, providing enhanced immersive experiences.”
As per Gartner, the path from "a metaverse" to "the metaverse" will take almost a decade which is when we will start seeing complete metaverse solutions.
"The metaverse" will have attributes embedded in the solutions - Interaction, Creator Economy, Interoperability, Immersive, and Identity.
Impact of metaverse?
Every new technology impact or is impacted by some factors as can be seen in the image below. The maturity of metaverse solutions or the adoption of metaverse will be dependent on these factors.
Use Cases of metaverse?
According to Gartner, the six trends are as follows.
Digital humans
Digital humans are computer-generated versions of humans that can engage in interactive communication and mimic certain aspects of human behavior, such as personality and knowledge. These digital representations often take the form of digital twins, avatars, robots, or chatbots, and have the ability to interpret and respond to speech, gestures, and images, as well as produce their own speech and body language. Companies are considering using digital humans as virtual customer service agents or sales representatives in online environments.
According to Gartner, by year 2027, most chief marketing officers of business-to-consumer companies will allocate funds specifically for the use of digital humans in virtual reality environments.
Gaming
The video game industry has been at the forefront of advancements in technology and immersive experiences for a long time. The upcoming metaverse will incorporate various gaming technologies, techniques, and even game theory to create immersive experiences for both entertainment and training purposes. Companies will increasingly adopt "serious games," which use gaming technologies, storytelling, and experiences for training and simulating specific work tasks.
According to Gartner, the market for serious games is expected to grow by 25% by 2025 due to the influence of metaverse technologies.
Virtual spaces
Virtual spaces, also known as virtual worlds, are digital environments created by computers where individuals can connect with each other using personalized avatars or holograms. These virtual spaces engage multiple senses and allow users to fully immerse themselves in the experience and interact with the space. They can be used for a variety of purposes, such as reaching out to customers who cannot or do not want to participate in in-person events, providing alternative options for travel, and enabling collaboration among employees.
According to Gartner, by 2025, 10% of workers will frequently utilize virtual spaces in their work, such as in sales, onboarding, and remote team activities, compared to the current 1% in 2022.
Shared experiences
The metaverse will enable people to come together and share experiences in virtual spaces, breaking down the boundaries between immersive applications and providing more opportunities for collaboration, interaction, and participation. This democratization of immersive experiences will lead to an increase in public events, nearly 10% of such as sports and performing arts events will offer participation in the metaverse, leading to a surge in commercial metaverse shared experiences by 2028, according to Gartner.
Spatial computing
Spatial computing involves the use of digital technology to enhance physical spaces by bringing together physical and digital objects. This allows organizations to better utilize both physical and digital assets by presenting digital information and content related to people, places, and things.
Tokenized assets
Tokenized assets, which utilize non-fungible token technologies (NFTs), allow for new business models for content creators in metaverse experiences. These NFTs enable economic models where content creators can retain a large portion of revenue from the sale of their works. The innovative features and capabilities of the metaverse will inspire new methods for monetizing virtual products and services and acquiring physical goods.
According to Gartner, it is anticipated that by 2027, 25% of retail companies with an online presence will have conducted at least one test of tokenized assets using metaverse technologies.
What should organizations do?
As per the PwC report, organizations should start investing in technology and hire people for positions related to the metaverse and digital assets, as well as acquiring tools for constructing virtual environments.
Everything is not so rosy about metaverse..
Despite all the hype, metaverse adoption has been nascent and fragmented in the year 2022 and would continue to remain that way in the year 2023 as well.
While it has not experienced the same level of sustained success as the video conferencing boom during the pandemic, investment in metaverse projects remains high.
Gartner advises caution in investing in a specific metaverse as it is currently unclear which investments will be viable in the long run and the risks associated with early investments, including ethical, financial, and reputational risks, are not fully understood.
According to Gartner, it is predicted that by 2026, 25% of world's population will spend at least one hour per day in the metaverse. However, not everyone is convinced that we will be able to tolerate extended periods of time in these virtual environments without experiencing motion sickness or discomfort which we do today with existing technology and VR headsets.
Conclusion
As Gartner has shared, reaching to the point of "the metaverse" will take time therefore organizations can do the following to prepare themselves:
While Orgs should prioritize utilizing elements of the metaverse that can offer immediate benefits, such as improving brand recognition, facilitating e-commerce transactions, gathering data, or enhancing work environments, it is important to also consider the long-term goal of creating a fully immersive metaverse that will be able to seamlessly interact across multiple platforms in the future.
The metaverse is enhanced by the use of specialized technologies, however, they are not always necessary and can also be utilized in other contexts. For instance, cryptocurrencies can be utilized in and outside of the metaverse, and some metaverse transactions can be completed with traditional payment methods like credit cards. A well-planned approach to metaverse technologies can provide both short-term and long-term advantages while allowing for flexibility.
It is not worth the time and energy to simply replicate your current office or online presence in the metaverse. Instead, use the metaverse as an opportunity to expand your company's and brand's expression and to re-evaluate your methods of communication, customer engagement, and employee experience in a completely immersive digital world. Ensure that your various channels and digital presences maintain a consistent image in order to maintain the strength of your brand.
Source: PwC 2022 US Business and Consumer Metaverse Survey, July 2022
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