The Metaverse- The Next Chapter of the Internet

The Metaverse: The Next Chapter of the Internet WHITEPAPER

The Metaverse – More than a buzzword, less than a silver bullet

There hasn’t been a day in the last six months when the word “metaverse” wasn’t mentioned at least once in the news. For better or worse, it’s here to stay. As per a 2020 survey, there are around 400 million active users on the metaverse every month. And by 2026, 25% of people will spend at least an hour on the metaverse every day.

The metaverse is quickly becoming an exciting new platform for businesses, with several Fortune 500 companies already taking advantage of its unparalleled potential. From heightened customer interactions to improved collaboration and communication, product iteration, and testing, the possibilities are seemingly endless — this could be just the beginning!

According to Nike, their Nikeland metaverse space, built in collaboration with Roblox, has had more than 7 million visitors, which has helped sell $3.1 million in NFT sneakers.

However, developing and adopting a metaverse can be challenging. There are concerns about privacy, security, addiction, and psychological effects, and robust infrastructure and technology are needed for it to work as intended.

To successfully implement metaverse, enterprises must have strategies for integrating it into an enterprise setting. It is equally essential for businesses to forge meaningful connections with customers within this virtual space.

In this whitepaper, we dive into the fascinating world of the metaverse and what it could mean for enterprises. We examine both sides — from its possible game-changing applications to potential risks associated with leveraging such cutting-edge tech, offering recommendations on how enterprises can capitalize on this emerging technology.

What is the metaverse? The term "metaverse" was initially coined by Neal Stephenson in his 1992 novel Snow Crash , describing a collective virtual shared space created by the convergence of natural and virtual spaces. Since then, the metaverse concept has evolved to include a shared space and a shared experience for its users.

To put it in more technical terms, as defined by Matthew Ball:

“The Metaverse is a massively scalable and interoperable network of real-time rendered 3D virtual worlds that can be experienced synchronously and persistently by an effectively infinite number of users while keeping continuity such as identity, history, entitlements, objects, communications, and payments.”

Elements of the metaverse Several crucial elements form the basis of the metaverse and its operation.

The virtual spaces that comprise the metaverse include virtual worlds, games, and other immersive experiences. Virtual environments:

These are the digital representations of users, i.e., their avatars within the metaverse, which can be customized and personalized to reflect each user's personality and preferences. Digital avatars:

These include digital objects that can be created, owned, and traded within the metaverse, such as virtual real estate, virtual goods, virtual currencies, and NFTs. Virtual assets:

Coca-Cola’s NFT

Nike’s Virtual Shoes

Metaverse sets up a space for users to interact with each other within the metaverse through activities such as messaging, chatting, and participating in virtual events. Social interactions:

Users can experience the metaverse in a realistic and immersive way through virtual and augmented reality headsets, haptic feedback devices, and other sensory technologies. Immersion technology:

Haptic Gloves

HTC VIVE Pro 2

Fractal’s vision for the metaverse Helping brands break through physical and digital boundaries; to leap into the imagined, connected worlds of consumers and communities. Insights

Enterprises are striving to bring the metaverse into reality, testing and utilizing cutting-edge technologies for a ground-breaking virtual experience.

Metaverse is reimagining employee experiences in an increasingly hybrid workspace.

But on the other hand, ethical questions remain, ranging from safeguarding individuals to environmental concerns.

Real-world examples

Hyundai’s Metamobility

Microsoft Mesh for Collaboration

IKEA Experiential Shopping

P&G’s Virtual space Beautysphere

Unlocking strategic opportunities

Enterprises are designing virtual spaces for meetings, conferences, and events in the metaverse, enabling staff members and customers to take part from any location and reducing the need for physical travel. The metaverse also enables companies to develop and market virtual goods and services, creating new revenue streams. Employee experience on the metaverse With hybrid working quickly becoming the new norm, we must rethink how businesses interact with their workforces. The metaverse is a fantastic avenue for us to improve employee engagement, help employees navigate and understand various elements of the business, and conduct virtual events like town halls, employee summits, or annual company meetings.

Employee Onboarding According to Brandon Hall Group research, employee onboarding can increase employee retention by up to 82%. Another Gallup study found that 70% of candidates with excellent onboarding experiences believe they have the best job possible, yet 88% of organizations need to onboard better. Metaverse can help solve this mismatch.

Virtual offices for employee engagement and collaboration

Since the future of work is hybrid, why not build virtual office spaces like real ones? Many businesses believe the metaverse offers the ideal solution for a hybrid work environment. Additionally, the metaverse is an excellent tool for fostering employee engagement, educating employees about the company, and subconsciously creating contextual cues that reinforce organizational values.

Customer experience on the metaverse In modern digital economies, customer experience significantly affects firms’ success and dictates how the economy functions. Enterprises should aim to deliver top-notch goods and services while transforming the customer experience in virtual realms. By creating user-friendly immersive experiences, they can achieve a new level of success in the metaverse. Two prominent examples of the future of customer experience in the metaverse are immersive virtual stores and virtual bank branches.

Immersive virtual stores The metaverse is rethinking how brands interact with their customers. Rather than being passive consumers, users have much control over what and how they consume. While interacting with a brand, they can experiment, express themselves, and share with their communities in new ways. Immersive virtual stores in the metaverse offer 3D immersive experiences, virtual try-on opportunities, and seamless payments. Customers can also take part in launch events more easily.

Virtual bank branch The metaverse will provide a virtual space where customers can interact with their bank and access various banking services. This can include opening new accounts, applying for loans, checking credit limits, and other activities. Customers will enjoy a more convenient and immersive experience if they can access their bank from anywhere and interactively. It also reduces the need for physical bank branches, which may result in cost savings for the bank.

Reality check: Challenges of the metaverse Cost and feasibility The building and upkeep of the metaverse necessitate a complex technical infrastructure in sophisticated software and the incorporation of numerous cutting-edge hardware, such as VR and AR, which are only affordable for some. Legal and regulatory The metaverse operates in a legal grey area, as existing laws and regulations do not fully cover it. This could require the development of new legal frameworks to govern activities within this virtual space. Privacy and security Ensuring metadata security is crucial to protect individuals and organizations from harm. As per a survey by NordVPN, 50% of people are worried about identity issues, 47% are concerned about forced surveillance, and 45% are worried about the potential misuse of personal information. Ethical risks There are concerns that the metaverse could lead to addiction and other negative consequences. It could also be misused as a platform for violent or harmful behavior, such as cyberbullying and harassment.

Future-forward into the metaverse

It becomes tricky to gauge precisely how the metaverse will impact the world. Still, it seems likely that it will be the next evolution of the internet, revolutionizing not only digital native industries but also many other more traditional ones. Two industries where the applications are already becoming clear are healthcare and construction.

Improved accuracy through virtual and digital healthcare

The metaverse's ability to create personalized and interactive healthcare experiences will make patients feel more connected with their doctors. Virtual reality (VR) will give surgeons a 3D view of the surgical field, allowing them to visualize the anatomy and perform more accurately. We anticipate digital therapeutics becoming the preferred and leading therapy of choice as the metaverse develops.

Digital Therapeutics

VR in Healthcare

Digital twins in construction

Before physical systems, such as industrial equipment or infrastructure, are built or deployed in the real world, digital twins’ technology could simulate and evaluate their performance in a virtual environment. They can also train and educate users about the physical system’s operation and maintenance or enable users to interact with and control physical systems remotely.

Digital Twins

In conclusion, the metaverse concept offers significant potential benefits for enterprises but also poses challenges that must be carefully considered and addressed. By investing in the necessary infrastructure and technology and developing strategies for integrating the metaverse into their operations, businesses can unlock the full potential of this emerging technology.

References: 1. The Amazing Ways Nike Is Using the Metaverse, Web3 And NFTs , Forbes 2. Value creation in the metaverse, McKinsey & Company

3. Metaverse - Statistics & Facts, Statista 4. The Metaverse, Grayscale Research 5. The contextual brain: implications for fear conditioning, extinction and psychopathology | Nature Reviews Neuroscience

Image source references:

12. Microsoft Mesh for Collaboration 13. Hyundai’s Metamobility 14. P&G’s Virtual space Beautysphere 15. IKEA Experiential shopping 16. Employee Onboarding 17. Virtual Oces 18. Immersive Virtual Stores 19. Virtual Bank Branch

1. How the Metaverse Could Change Work 2. Citi says metaverse economy could be worth $13 trillion by 2030 3. Metaverse could be the next internet. But only if it solves these problems

4. Future of banking: A metaverse bank, on your browser

5. Virtual Environment 6. Digital Avatars 7. Coca-Cola’s NFT 8. Nike’s Virtual Shoes 9. Social interactions

20. VR in Healthcare 21. Digital Therapeutics 22. Digital Twins

10. Haptic Gloves 11. HTC VIVE Pro 2

We believe complex problems need to be looked at through multiple lenses simultaneously to be grasped. With the new lens new dimensions emerge, thus making complexity more evident and solvable. How is Fractal Dimension set up to do it?

We identify complex and unstructured problem themes in the industry that are relevant. We invest in building expertise and a dimensionalized point of view around it. We engage clients via ‘slow-thinking’ workshops and co-creation jams to curate our perspective for their problem. We invest in architecting an end-to-end state-change program. We partner with client teams at Fractal to deploy cross-functional solutions and support them in helping clients realize value ROI.

Want to find out more on how our approach can help your business? Reach out today at dimension@fractal.ai

Our experts

Akbar Mohammed, Principal Data Scientist, Strategic Center

Hari Krishna, Consultant, Strategic Center

Prajod Vettiyattil Principal Architect, Strategic Center

Vineet Nandkishore Senior Consultant, Strategic Center

Enable better decisions with Fractal Fractal is one of the most prominent providers of Artificial Intelligence to Fortune 500® companies. Fractal's vision is to power every human decision in the enterprise, and bring AI, engineering, and design to help the world's most admired companies. Fractal's businesses include Crux Intelligence (AI driven business intelligence), Eugenie.ai (AI for sustainability), Asper.ai (AI for revenue growth management) and Senseforth.ai (conversational AI for sales and customer service). Fractal incubated Qure.ai, a leading player in healthcare AI for detecting Tuberculosis and Lung cancer. Fractal currently has 4000+ employees across 16 global locations, including the United States, UK, Ukraine, India, Singapore, and Australia. Fractal has been recognized as 'Great Workplace' and 'India's Best Workplaces for Women' in the top 100 (large) category by The Great Place to Work® Institute; featured as a leader in Customer Analytics Service Providers Wave™ 2021, Computer Vision Consultancies Wave™ 2020 & Specialized Insights Service Providers Wave™ 2020 by Forrester Research Inc., a leader in Analytics & AI Services Specialists Peak Matrix 2022 by Everest Group and recognized as an 'Honorable Vendor' in 2022 Magic Quadrant™ for data & analytics by Gartner Inc. For more information, visit fractal.ai

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