The metaverse has been a topic of conversation for several months. Searches for 2021 increased by 7,200%. Facebook changed its name to Meta in December. CEO Mark Zuckerberg stated that his purchase of Activision would provide "building blocks" for the metaverse.

Private capital is also quickly flowing in. According to reports, metaverse-related businesses raised more than $10 billion in 2021 than they did the previous year. Epic Games, the maker of Fortnite, has raised $3B to finance its long-term vision. It also announced a partnership to create a metaverse for children with LEGO. Global value creation opportunities from the metaverse may be in the trillions.

What exactly is the metaverse?

The parties involved cannot agree on a single definition at the moment. But most descriptions--including this particularly insightful take from venture capitalist Matthew Ball, who recently shared his thoughts about the metaverse have some elements in common:

• The metaverse includes immersive environments that are often created using virtual- and augmented-reality technologies.
• The metaverse exists in real-time and is "always on".
• The metaverse encompasses both the physical and virtual worlds as well as multiple platforms.
• The metaverse is powered largely by a functioning virtual economy. This includes digital goods and assets as well as cryptocurrency.
• The metaverse allows people to have virtual identities, presence and "agency" including peer-to-peer interactions, transactions and user-generated content.
• The metaverse can be described as an evolution of the internet today. It is something that we are immersed into, rather than something we view. It might realize the promise that vast digital worlds will exist to complement our physical one. The metaverse offers marketers a chance to engage customers in completely new ways and push internal capabilities as well as company innovation in new directions.

 

It is the perfect time to embrace a test-and-learn mindset, to be open to experiments in the metaverse, to quickly move on from failure, and to capitalize on your success.

 

Photo by Julien Tromeur on Unsplash

 

Although we are still in the initial wave of metaverse, lessons from companies that have had early success are being learned. The key elements of business in metaverse are similar to those used in designing compelling company experiences in physical world. However, the way these elements are applied in the metaverse may be quite different. While driving online value continues to evolve, effective engagement with consumers in the metaverse will need its own recipe for success.

This is how the landscape looks today, and how organizations can plan for their future metaverse business strategies.

Find the right platforms for your company. There are many metaverse platforms and games out right now. For specific purposes, some platforms will work better than others. You have plenty of opportunities to test different platforms and see which ones work best. , the luxury company Gucci, has held multiple company activations in order to determine where and how can connect with Gen Z. It launched a metaverse version on Roblox last year and attracted 19.9 million users in just two weeks. Gucci also announced a partnership with Zepeto, a fashion-focused metaverse, to create assets for games such as Animal Crossing, Pokemon GO and The Sims.

The metaverse is a place where consumers tend to view companies as innovative. Therefore, the bar for innovative experiences should be high.

Develop, leverage and partner for new metaverse abilities.

Companies should evaluate the skills required for the venture and identify the ones they have. Then, appoint a project manager who will lead the development and execution of a cohesive strategy to deliver the value.

Be proactive about preparing for company risks. There have been many instances where companies were exposed to risk by directly engaging with consumers online, without being prepared for the fast feedback loops and potential virality of social networks. The risks are even greater in the metaverse because these events take place in real-time, and can be more immersive. Companies would do well to establish basic rules of engagement--detailed policies and enforcement practices they can follow later--for customer experience, intellectual-property management, user safety, data privacy, and misinformation, for example. Some things haven't gone as planned in some cases. One company of global electronics launched a new product line with great fanfare at its metaverse venue. But disappointed customers had difficulty gaining access to the products and had to wait outside.

Be careful, but firm.

The metaverse offers companies many opportunities to market and build a brand. The limitations of current technology and the modest adoption rate in the mainstream are unlikely to hinder companies from experimenting, learning and achieving success with the metaverse market.

These questions will influence its long-term evolution. These are important questions for investors, as they shift their company’s budgets and focus on the metaverse.

• How will interoperability (or the ability to transfer virtual avatars and other assets across multiple universes) work in the metaverse What does this mean for companies that offer digital assets such as virtual clothing?
• What will be the future social contract and legal framework of the metaverse? How can user safety be guaranteed, especially for youth? While there have been concerns about the project for minors for a long time, these issues become more prominent in the metaverse. What additional responsibilities should companies assume for child safety?
• How will first-party data about consumers be stored, managed and protected? What data privacy laws will apply to the metaverse? How can companies obtain consent and source data to improve their consumer insights, in a world that doesn't use cookies?

The metaverse also has tremendous future potential, beyond projects. Companies must think about the strategic implications of the metaverse on sales, operations, R&D, HR, and other areas to create value for their enterprise. Companies who plan and execute well now will reap the benefits of the future metaverse.

It will be an explosion of opportunities to empower knowledge and develop new project methodologies, all that we know today can change in the metaverse world.

5 reasons why the metaverse is so powerful.

1. There are ongoing technological advancements. To make metaverse experiences mainstream, technical challenges still need to be overcome. For example, because of technical limitations, both Meta's Horizon Worlds (and The Sandbox) limit the number of participants per session. However, computing power has improved over time and allows for larger virtual worlds. Cloud, Edge Computing allow large-data intensive processes such as graphics rendering to be performed off of local devices. Mobile devices can now access large, complex worlds with less latency and ease thanks to rapid adoption. The cost of manufacturing augmented and virtual reality hardware is decreasing. Meta sold ten million Oculus Q2 headsets in 2021. New devices such as haptic gloves or bodysuits are also coming to market more often.
2. Major investments were made in the metaverse infrastructure. Meta made $10 billion investments in the metaverse infrastructure in 2021. Other tech companies have also contributed resources to its construction, such as the recent launch of NVIDIA Omverse of a design and simulation platform and the metaverse-friendly updates Unity Engine. This is a game development platform. The metaverse was the dominant theme at this year’s Consumer Electronics Show. Participation is increasing in popularity for both large and small companies.
3. There are more use cases. Gaming is gaining mainstream acceptance. The consumer use cases for immersive retail, entertainment, and education are expanding. There are also many opportunities and applications in the metaverse, which are often overlooked. These include virtual employee training, team collaboration with avatars and virtual prototyping and construction. Even government agencies are trying out the metaverse. Seoul, South Korea announced a five year Metaverse Seoul Basic Plan. It will include the creation of a virtual mayor's office and a Seoul campus town.
4. Online commerce is now mainstream. Omnichannel commerce is now second nature for most metaverse consumers. Payment credentials are embedded in many devices and software that they use. More than 40% of all global gaming revenues are generated by, the world's billion-plus gamers. The long-term rise in cryptocurrency will make it less difficult to open crypto wallet accounts on metaverse platforms. We already see innovation in both physical to virtual and real-to-physical transactions. For example, you can order Domino's pizza from Decentraland for actual delivery in the real world.
5. Demographic tailwinds. In their twenties, Gen Z's oldest consumers are. They are a growing income-earning force that should be taken seriously. They are more familiar than ever with virtual worlds, transactions, goods, and are earning more income. Gaming is leading the charge: 67% of Roblox’s 50 million users each day are younger than 16, which could indicate the emergence of a new generation of metaverse natives.

Project management in the metaverse probably is in the cradle but we need to wake up, grow and make it happens, we can think about our interaction between the online and offline world, how to address the limitations of technology, the lack of ethics, governance and safety.

There is still a lot of doubt about the metaverse. Companies may want to be cautious as the promise might take time to catch up. I believe that we are on the verge of a major shift in the way people use the internet. It's the perfect time to embrace a learn-and-test mindset. To be open to experimentation, to learn quickly, and to capitalize on your successes, it's now. You as a project manager need to be prepared to work in the digitization of the world and be part of this big wave of transformation.

 

About the author:

Ivan Moreira, PMP® works in the technology industry. He is an agility enthusiast, international speaker, volunteer, passionate about helping companies and people address changes in their businesses and life with technology. A believer that community growth and progress, that together, could change the world.

References: 

• https://ivanmoreira.org/about
• https://unsplash.com
• https://projectmanagement.com