The metaverse, an enigmatic realm of limitless possibilities, presents CEOs with a dizzying array of opportunities and challenges. In a landscape where definitions and visions diverge, there’s a compelling argument for CEOs to consider a somewhat unconventional approach: having no strategy at all.
The Metaverse: A Growing Frontier
The metaverse is not just a buzzword; it’s big business. Projections suggest that by 2024, its value could skyrocket to $800 billion, with estimates reaching a staggering $5 trillion by 2030. These astronomical figures have led many businesses to set their sights on establishing a foothold within the metaverse, seamlessly integrating it into their operational DNA.
However, amidst the frenzy, confusion reigns. What exactly is the metaverse? What might it evolve into? And how should businesses navigate this uncharted territory to seize a piece of the pie? The urgency to dive in headfirst may haunt some CEOs, fearing they might miss out on the metaverse’s next big wave.
Navigating the Metaverse Maze
The metaverse is a multifaceted concept, and its definition varies wildly depending on who you ask. Gamers have largely shaped its current perception, with platforms like Roblox, Decentraland, and Fortnite dominating the landscape. While these platforms offer some appeal to fashion brands, their relevance to most businesses remains limited.
Different interpretations abound. McKinsey describes the metaverse as “an evolution of today’s internet,” a more accessible perspective given the internet’s omnipresence.
Yet, it’s not as simple as it seems. Matthew Ball, a prominent metaverse thinker, argues that the metaverse “will revolutionize everything.” Ball’s intricate analysis, while comprehensive, may overwhelm many executives. Engaging with such a complex and shape-shifting entity can be daunting.
The Device Dilemma
Adding to CEOs’ confusion is the question of device necessity. Mark Zuckerberg emphasizes the role of virtual reality (VR) Oculus devices in accessing the metaverse, leaving many skeptical about the practicality of such an interface.
However, this ambiguity regarding the nature of the metaverse and its access is typical of emerging technologies. The internet was once dubbed the “information super-highway” before evolving into the multimedia-rich entity we know today. Similarly, artificial intelligence (AI) has progressed from rule-based tools to advanced machine learning products. As technologies evolve, so do our definitions of them.
Simplifying the Metaverse
To demystify the metaverse for businesses, consider this straightforward definition:
The metaverse is a virtual realm where 3D representations of people, products, and places converge.
This definition encapsulates the core elements across various platforms and how businesses are leveraging these technologies. The metaverse thrives on the immersive feeling of entering a new world, which might involve avatars or digital twins, especially in industrial settings.
The Case Against a Metaverse Strategy
Given the ever-changing landscape, do CEOs really need a metaverse strategy now? Developing one prematurely may lead to a technical tunnel vision, delving into debates over VR, augmented reality (AR), or mixed reality (MR) without addressing core business needs.
A more pragmatic approach is to focus on your business’s immediate requirements, whether it’s attracting customers, enhancing efficiency, prototyping products, improving customer experiences, or other priorities. Consult experts on potential solutions, metaverse-related or otherwise. Only after identifying the right fit should you explore the technical aspects.
Consider building a business community as an analogy. While some companies can easily gather a physical community, others face more challenges due to their distributed customer base. Start by assessing what’s needed to foster a community tailored to your business. The metaverse might be the answer, but it’s not a one-size-fits-all solution.
Similarly, appointing a chief metaverse officer should be a carefully considered move. In the early stages of a new technology, dedicating resources solely for the sake of it can lead to wasted time and efforts. The key is ensuring that any dedicated role actively addresses real business challenges.
Stay Grounded, Aim High
The allure of a potentially $10 trillion market in the metaverse is undeniable. However, for most CEOs, it’s not the time to go all-in on unproven technologies still in their infancy.
Instead, focus on a clear, concise definition of the metaverse and engage with virtual worlds in a measured manner, aligning your efforts with a thoughtful analysis of your business needs. The metaverse may be the future, but a strategic, deliberate approach will ensure you’re ready when the time is right.