Is Metaverse the future for business?

The term “metaverse” has seen a huge increase in popularity over the past two years. Thousands of projects and companies have emerged with their own vision of these virtual environments. And with so many different interpretations, the definition of what a “metaverse” actually is seems to depend on who is asked.

But one thing seems certain, the metaverse has the potential to disrupt a number of different industries and settings. But does it have the power to shake up the business landscape?

Recent interviews with Zvika Krieger, (former) Director of Responsible Innovation (Meta), Venura Perera, Director of Innovation and Development (Allianz Personal, UK) and Erin Pryor, Executive Vice President (First Horizon Bank) offered valuable insight on the topic.

Let’s begin by exploring what exactly attracts people to the metaverse. Mr. Kreiger was interviewed by Louis Grafton, COO of leading blockchain gaming and entertainment studio, Catheon Gaming. The COO pointed out the fact that the metaverse has different definitions (depending on who you talk to).

In response to how he would conceptualize it, Zvika says, “I think the full expression of the metaverse that most people are excited about and what creates so much buzz around it is this fully immersive technology, usually using VR or some derivative of virtual reality technology and in a way that you are fully immersed in an experience. So it’s fully submersible. You’re not doing other things while you’re in the experience, but you feel like you’re there.”

Meta’s director goes on to explain that it’s a space that provides “synchronous communication and real-time engagement.”

The value to the business

Many businesses and consumers are already exploring the various benefits of the metaverse. In fact, McKinsey research found that 57% of companies familiar with the metaverse have already adopted it. Additionally, 59% of users expressed excitement about transferring their daily activities to virtual worlds.

A separate Salesforce report found that consumers plan to spend more time online than they did before 2020. Taking these findings into account, it’s safe to say that there will be plenty of opportunities for businesses to attract and retain customers within the metaverse.

Erin Pryor shared her thoughts on its future, saying, “The platform is moving towards becoming an engaging community where you can connect with different areas of your life – family, friends, colleagues and brands.”

Bloomberg predicts that the metaverse will be valued at $800 billion by 2024. Given that prediction, Pryor goes on to say, “…it’s no surprise that we’re seeing big brands like Gucci, Nike, and Coca-Cola making investments in bespoke branding opportunities with retail opportunities in the digital space. It’s likely that other brands will follow suit.”

First Horizon’s VP discussed one example that stems from the concept of Augmented Reality (AR). Brands like Peloton that aren’t solely driven by virtual reality (VR) are using it to help people around the world exercise from the comfort of their own homes.

The acceleration of metaverse technology

As mentioned earlier, one of the interviews was conducted with Venura Perera, Director of Innovation and Development at Allianz personal, the holding company for companies such as LP General Insurance. Allianz works with private and institutional clients to help them protect their wealth. Perera’s background is largely technology-based in “a wide range of domains”.

Perera describes the metaverse as a “second life-like environment” where you have “a virtual instance of yourself in this digital environment where you can build your own homes, create currency, spend money, get digital assets and live a second life life right in a completely virtual space.”

The filmmaker believes that COVID has certainly accelerated virtual experiences as more people realize how important technology is in their daily lives, and a March 2022 survey by Statista would agree. In fact, it found that 92% of businesses believe that the pandemic has helped accelerate the formation of metaverse technologies.

Perera’s interview was William Wu, CEO of Catheon Gaming. Wu was curious to know the director’s stance on the effect social media is having on the Metaverse when it comes to adoption, popularity, and how people will choose to spend their time in the space.

Perera begins by saying, “I think the word influencer people think it’s a new term, but it’s not like it’s been around for hundreds of years… people will pick up on it [the metaverse] because they will believe what these people [influencers] say. And so they’ll join, won’t they?”

He continues: “Your malls, all of that, I think there’s going to be a big transformation in how those areas are organized because COVID happened. Change the way we live. People want more experiences in their lives.”

Perera: The combined effect will be much greater than the individual effects

He goes on to explain that he believes companies will gain the most from the fundamental merging of the digital and physical worlds.

“I don’t accept this kind of complete separation of digital and physical environments. I actually believe that those things coming together is where you’re going to get that synergy. So the more we bring the digital world closer to our physical world and it kind of really creates an assumption that it’s more of an extended verse than just a separate one.”

“Things like Pokemon Go were a great example of, you know, you’re bringing gaming into the physical environment where people are actually interacting with the real world, but you’re actually overlaying digital content on top of it.”

The value of community

In general, the metauniverse will be community oriented. That being said, it will be vital for businesses to find a way for their users to interact with each other, whether through a virtual game or other means.

Venura expressly enjoys the power of online interaction. “I like to do things with my friends. So if I was going to put on headphones, I want to have a system that I can actually get into. We have an equal share and would play around. We are all kinds of gamers. So we’re either FPS-style games or strategy-style games, you know, we’re going to do that,” he says.

It’s safe to conclude that the companies that create the most engaging, interactive environments are the ones that will build the strongest communities. They, in turn, will benefit the most from the metaverse.