Written by: Christabella Ardhany & Hanifah Salsabila
Designed By: Alyssa Tania
The presence of the internet has changed many aspects of human life. In this digital era, almost everyone is supported by an internet connection. However, what if in the future we can enter the virtual world and carry out activities in it? Metaverse is a term for a concept of the internet world that is presented in 3D or virtual. Within the metaverse, users can perform various activities, such as socializing, shopping, playing games, and working through a special metaverse profile called Avatar. In its operation, metaverse combines at least five technologies at once, namely social media, online games, augmented reality (AR), virtual reality (VR), and cryptocurrency. The presence of this metaverse can open up new opportunities for interaction in cyberspace that cannot even be done in the real world. This is supported by the popularity of metaverse which skyrocketed after the CEO of Facebook, Mark Zuckerberg, changed his company name to Meta Platforms Inc and revealed plans to focus on developing metaverse technology. If the metaverse concept is later actively applied, various kinds of potential and major transformations will occur not only for Facebook, but also for businesses in various sectors.
Currently, various companies are starting to consider business and investment potential by leveraging digital transformation to join the metaverse. Seeing the potential in the future, it is very likely that business will completely transform into the virtual world. Economic matters will expand products, services, and operations in the metaverse, so it is necessary to build on and position the opportunities for further growth. In the future, the business will need to consider the likelihood to hire human resources with expertise in game design, such as narrative, story structure, character, aesthetics, architecture, and community dynamics. Once a business explores appropriate ways to deliver new value to consumers in virtual reality, another consideration is how the business model can adapt to the dynamics of the metaverse. Furthermore, as seen from a technology perspective, business actors must reckon with those who can utilize the logic of architecture platforms, platform-based business models, and artificial intelligence analysis tools to support the swift transformation of digital businesses.
Aside from technical considerations, business actors must also consider several other aspects, such as prospective target consumers, competition with peer companies, sustainable approaches application, right way and time to join, and risk management. The business will be better prepared to minimize risk and compete in a new environment by considering various aspects.
Besides the conveniences it offers, the metaverse platform also contains challenges to overcome. The foundation of the virtual platform itself is not yet completely stable, interoperable, and underdeveloped. Transforming business in the metaverse also means being all set to face various shortcomings. Essentially, not all business actors and consumers have sufficient internet access and digital devices. The shared graphics-heavy virtual takes fiber-based internet connectivity, 5G technology, and supporting digital tools to be operated. An internet-based environment also means various cybercrime issues have to be tackled, including what underlies, which are privacy and cybersecurity. Eventually, social interactions in the metaverse will also affect human behaviors and interpersonal relationships.
With the rapid advancement of technology, building a new virtual-based world is a merely possible thing to do. Metaverse is proof that humans can carry out activities in the virtual world. In the near future, business will gradually look for ways to grow in the metaverse by examining influential aspects. The obstacles in entering a new world also have to be considered and tackled. Judging by the pros and cons, how far do you think will the business transformation occur in the metaverse?
Balis, Janet. “How Brands Can Enter the Metaverse.” Harvard Business Review, 3 Jan. 2022, hbr.org/2022/01/how-brands-can-enter-the-metaverse.
Davies, Marion. “Pros and Cons of the Metaverse.” Konsyse, 7 Nov. 2021, www.konsyse.com/articles/pros-and-cons-of-the-metaverse/.
Monier, Stéphane. “The Metaverse: Challenges and Opportunities | Lombard Odier.” Www.lombardodier.com, 21 Dec. 2021, www.lombardodier.com/contents/corporate-news/investment-insights/2021/december/special-report–metaverse-overhy.html.