How can businesses prepare for the Metaverse era?

What’s Metaverse?

It’s a network of 3D virtual worlds which emphasizes social connection.

The word “Metaverse” was first used in science fiction by author Neal Stephenson in his book Snow Crash(1992).

Now it’s becoming a reality faster than we could have ever anticipated.

A McKinsey survey found that Gen Z & millennials expect to spend close to five hours a day in the metaverse within the next five years.

The older generations are also expected to spend several hours each day in the metaverse.

Why will this shift happen?

It’s because of the desire for greater convenience, connectivity & entertainment.

Businesses and the Metaverse Era

Some leaders in the business world consider them as experts in the field of Metaverse.

But a few other leaders wonder whether metaverse matters to their companies.
The answer is yes. Metaverse matters for the business world.

Today several concepts of metaverse are being concrete & others will soon. But a true metaverse as imagined by the tech visionaries is still years away.

Why do some companies look into the metaverse ?

1. Enhance customer experience

2. Develop virtual products that are only available in the metaverse.

3. Collect new & relevant information about customers

4. Support metaverse payments & provide financial services

5. Provide hardware & applications that support the activities of metaverse.

It is important that business should not rush.

The businesses should firstly try to understand what the Metaverse is and they need not have to be a Metaverse leader today.
What’s important is that businesses should learn to take practical & affordable steps to meet their company’s needs.

How can businesses prepare for the metaverse era?

1. Know the metaverse concepts

Even the tech companies may not have institutional familiarity with the metaverse concepts that are evolving faster. So assign a group to understand the concepts related to metaverse & their relevance to the company.

2. Formulation of a strategy

Identify the gaps that need to be closed. Find out the long term opportunities that could be built from Metaverse and its related concepts. Then work on the foundational measures.

3. Test the waters

Identify a few opportunities within the metaverse underlying trends of today. There are lower risk use cases like selling digital versions of physical goods, offering virtual tours of virtual products or facilities etc.

4. Emphasize on trust

The metaverse could give new challenges for cybersecurity,privacy rights, regulatory compliance, brand reputation & anti-fraud efforts. Companies must foster trust among customers, shareholders, stakeholders etc.

You need to make it clear to them on what to expect from your metaverse initiatives & how you will mitigate the potential risks.

5. Core Competencies need to be rethinked

What offers competitive advantage in a shared, decentralized digital environment may vary from what you have today. You may need upskilling & recruiting to close skills gaps. New approaches to data and business relationships may also be needed to survive in the cut throat competition.

Metaverse is considered to be the future and not a fad.

Gen Z is very excited about the Metaverse. This makes some of the luxurious & mainstream brands like Gucci and Vans to focus on younger generations & improve their metaverse strategy.

Not just the above mentioned brands, various other brands are also working on different platforms to recruit lifetime customers.

Gen Z is not just the generation that wants to take advantage of the Metaverse. Researches have shown that even people from the other age groups are also interested & aware about the Metaverse.

What’s interesting is that millennials had also expressed the greatest awareness about the metaverse.

In the surveys conducted by McKinsey 46 percent of Gen Z respondents & 55 percent of millennials view their virtual identity as an extension of themselves in the physical world.

Half of both the groups had believed that friendships formed online would be strong as friendships formed in real life.

41% of Gen Z and 37% millennials opined that it’s easier to be themselves online than in real life.

This was the result of a McKinsey survey conducted in the US. Opinions could vary from person to person as people differ in various aspects.

Wrap-up

Wrapping up with a reminder that the fittest will only survive in the competitive business environment that constantly changes.

We need to find ways to understand the concept of the metaverse deeply as the metaverse is gaining much popularity these days.