Metaverse: transformative opportunity or temporary hype?

How companies can benefit from the next dimension of digital transformation

The metaverse is more than just a hype: it is a transformative technology that has the potential to significantly impact various aspects of companies' daily lives and business processes. It can change the way companies engage with customers, improve internal processes and create new business strategies.

The origins of the metaverse

The rapidly evolving digital ecosystem has attracted the attention of major technology companies. Its developers claim to have a significant impact on the future of business. Although the idea of a virtual reality such as the metaverse is not new and dates back to the 1980s and 1990s, it has only been technological progress in the areas of high-performance computers, artificial intelligence and internet bandwidth in recent years that has made the metaverse a reality. Since Meta (formerly Facebook) presented its Horizon metaverse platform in 2021, numerous other virtual worlds have been created by various platform developers, many of which also have their own cryptocurrencies such as MANA or SAND.

The metaverse is a digital space that transcends platform and gaming boundaries and enables seamless interactions by combining virtual reality (VR), augmented reality (AR) and other immersive technologies. For example, companies can use the metaverse to address customers through immersive experiences, make processes more efficient through virtual simulations and train employees through virtual collaboration spaces. Specifically, the metaverse can revolutionize the shopping experience by offering customers exclusive and appealing spaces in which they can explore products and make purchases. The metaverse also offers new opportunities for games and social media to engage users and monetize services. Personalized and immersive experiences can increase engagement and improve customer acquisition and satisfaction. Companies can hold virtual conferences, meetings and events in the metaverse, creating a more interactive and immersive experience for participants. Given this variety of possibilities for companies, it is not surprising that the Bloomberg financial service estimates that global business in the metaverse will already be worth around 800 billion US dollars by 2030.

The infinite possibilities of the virtual world

People enter the metaverse for different reasons, motivated by the unique opportunities it offers. For companies and their successful presence in the metaverse, knowledge of the motivational situation of their own target group is of great importance. We encounter the following motivations in consulting practice and can differentiate between them.

Opportunities for companies and brands: for companies, the metaverse offers the opportunity to create and market digital content, engage with customers in new ways and test innovative brand and marketing strategies.
Trade in digital assets (e.g. cryptocurrencies): the opportunity to invest in cryptocurrencies and other digital assets in the metaverse attracts many users.
Live entertainment and art: a significant percentage of people enter the metaverse to experience art and live entertainment, often presented in an immersive and interactive way.
Unique experiences: people are drawn to the metaverse to experience things that are not possible in physical reality, such as virtual travel, exploration and activities.
Social interaction and community: the metaverse provides a platform for people to network, socialize and form communities in a virtual environment, offering new opportunities to interact with others.
Long-lasting platform: unlike the Web 2.0 and social media, the Metaversum provides a long-lasting platform where creations and experiences persist over time, enabling the growth of a virtual footprint and long-term engagement.
Innovation and technology: the metaverse represents a new frontier for innovation, technology and the development of the Internet, attracting people and organizations interested in pioneering in this area.

Not all metaverses are the same

In the course of the metaverse's development to date, different types of metaverse have emerged, each with their own characteristics and use cases. Knowledge of the specifics can be a decisive success factor for companies. The main types of metaverse at a glance:

Commercial metaverse: these metaverses enable the purchase and sale of virtual goods and services, provide platforms for brands and companies and often include virtual currencies.
Educational metaverse: educational metaverses offer immersive and interactive learning experiences, virtual classrooms and training simulations to enhance traditional learning methods and create engaging educational environments.
Social metaverse: social interactions and connections between users are encouraged through virtual spaces, customizable avatars, chat systems and virtual events.
Game-based metaverse: this type focuses on games and interactive entertainment experiences in which players can perform various activities in virtual universes.
Decentralized metaverse: this type of metaverse uses blockchain technology and decentralized systems to give users the opportunity to acquire shares in the platform itself, thereby gaining more control and transparency.

Current use cases

Current use cases underline the potential for companies in the metaverse.

Siemens: Together with Nvidia, Siemens is striving to play a pioneering role in the field of industrial applications in the metaverse. To this end, industrial plants are mapped as a digital twin on the specially developed Xcelerator platform and used for training, maintenance work and the like. The digital twin also makes it possible to try out and test new processes cost-effectively, allowing important conclusions to be drawn for real systems.

Nike: Nike is using its virtual presence in Roblox as a Nikeland to promote its products and engage with the gaming community. The company sponsors virtual events and issues exclusive virtual items, such as digital sneakers for Roblox avatars, which can also be purchased in the offline world. Nike is thus underlining its approach of dovetailing the online and offline worlds for customers.

Successful community management in the metaverse

Due to the active and social nature of the metaverse and the associated implications for user behavior, continuous community management is essential. Successful community management in the metaverse requires an understanding of the particular circumstances and opportunities of this new environment in order to build stronger relationships between members and create a vibrant community. The virtual world offers new opportunities to build brand awareness and customer loyalty by creating a positive and engaging experience for community managers that encourages members to identify with the brand.

The first step into the metaverse

Some of the key lessons from our consulting practice for companies seeking a successful presence in the metaverse are as follows.

Invest early: despite the potential of the metaverse, some companies are still reluctant to invest. However, early investment can be crucial to avoid falling behind the competition. Well-founded advice is certainly important when choosing selective starting points for the first steps in the metaverse - this also enables an objective view of possible cyber risks that need to be minimized with well-founded preventive measures.
Strategic partnerships: companies should consider aligning their brand partnerships and expanding into the metaverse to create virtual experiences and interactions. This is supported by the strategic development of ecosystems, including the identification and selection of suitable partners (e.g. technology partners).
Diversify offerings: as the metaverse evolves, companies should explore different offerings such as immersive social interactions, NFT VR experiences and virtual reality environments to meet the changing needs of users. Experts with in-depth market knowledge and ongoing analysis of metaverses can help to gain a differentiated picture of the market as a basis for their own approaches.
Marketing and branding: companies should consider using the metaverse for marketing initiatives and brand building and develop a targeted marketing approach for the metaverse - from the initial idea to the finished concept.
Building community: building a community in the metaverse is a crucial aspect of creating a successful and engaging virtual environment. It is about fostering a sense of belonging, acceptance and growth for the participants.