University of Miami digital strategistInstitute SEI Founder, Revexpo Consulting Founder, CEO Softthread, Ethicist, Innovator.
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The metaverse not only continues to attract the attention of various international organizations, but also attracts a lot of investment dollars and acts as a catalyst for the entrepreneurial ecosystem. While some experts consider it a concept and others see it as a move or breakaway, the estimated CAGR and market size clearly indicate that it is a product and service poised to disrupt the human-computer experience as we know it. The global metaverse market, valued at $22.79 billion in 2021, is expected to grow at a compound annual growth rate (CAGR) of 39.8% from 2022 to 2030.
As defined by XR Todaythe metaverse is a simulated digital environment that integrates VR/XR/AR and social media concepts “to create spaces for rich user interaction.” World Economic Forum describes it as a “future-proof and interconnected virtual environment where social and economic elements mirror reality”. Multiple individual metaverses are built at this stage; however, it is expected that they will likely merge into one global metaverse. Nvidia has also defined another concept and branded it as the Omniverse, defining it as “an easily extensible platform for 3D design collaboration and scalable multi-GPU, real-time, true-to-life simulation.”
Global Drivers of the Metaverse
There are several global drivers that influence the design and deployment of the metaverse, including scientific and technological advancements, changing demographics, social and cultural reconfiguration, and the emergence of new economies. More focus on enforcement human rights and regulatory guidance, as well as more ESG-related investments, are also at the top of the agenda for boards of directors, C-suite leaders and key stakeholders worldwide. There are even different universities worldwide that offer metavers education such as AR/VR/XR technology skills.
While the digital transformation aspect is critical to creating a viable enterprise in the metaverse, leaders must also balance all other competitive threats and expectations of key internal and external stakeholders. These include restoring digital trust, measuring their ESG impact, managing a remote workforce, reviewing their talent retention strategy and managing increased cyber hazards. Due to the increasing adoption of technology, the increasing number of global IoT devices and 200 zettabytes of data stored in the cloud, we saw an increase in cyber threats in 2021 that $6 trillion negative economic impact worldwide.
There are several converging technologies that will form the metaverse-powered 5th IR. These include the entire AI portfolio, decentralized ledger technologies such as blockchain, and the transition to the next generation of the global web labeled Web 3.0. Other technology trends include robotics, digital twin technologies, next-generation computers, high-speed networks such as 6G, the industrial Internet of Things, and more.
Key questions
Understanding the global economic and technology landscape, as well as the predicted metaverse evolution, is essential for business leaders to design a future-proof strategic roadmap for business and digital transformation. To be successful in completing the complex metaverse readiness journey, it can be helpful for leaders to ask themselves these important questions.
• Who will run the metaverse and what management styles would be optimal for this new business ecosystem?
• How can we manage this emerging new metaverse workforce?
• How can we manage emerging risks in this highly volatile, hyper-connected, highly innovative, fast-moving global metaverse economy?
• How can companies maintain or gain a competitive advantage in these highly competitive global metaverse arenas?
• How will society’s norms of behavior change as a result of the metaverse?
While precise answers to these questions may not be immediately available, leaders could start defining new digital identities in the metaverse and focus on creating new decentralized governance models. They could also begin creating metaverse-powered education systems, recalibrating professional development and training methods that leverage web 3.0 and metaverse applications, and building metaverse-enabled work environments. Consider rethinking existing business models and identifying alternative investment vehicles through which leaders can fund the business and digital transformation needed in the metaverse landscape.
What challenges will metaverse leaders face?
Cybersecurity threats, ethical challenges and meeting stricter ESG metrics pose significant challenges. Another difficult challenge, however, is the need to break through existing leadership styles. In addition to becoming flexible in their management style to adapt to the highly volatile environment, leaders may also need to recalibrate their risk tolerance and learn to cope with this new workforce by accepting employees’ need for purpose and quality of life.
What opportunities lie ahead?
Leaders must remain authentic despite all the pressures and challenges, while putting purpose and integrity first. They may even become champions of a sustainability-focused metaverse ecosystem and advocates of a diverse, just, and inclusive standard. To become or remain successful, metaverse leaders would do well to become digitally ambidextrous, in addition to developing a high degree of applied digital ethics and cybersecurity fluency.
Recalibrating the leadership DNA
An important first step for leaders will be the decision to upskill and upskill themselves to successfully lead the workforce of the future. The second and third key steps require a metaverse-focused mindset change, which will enable leaders to embrace innovation and risk and proactively form strategic partnerships with previously unimaginable companies that will now play a central role in the metaverse phase. The ultimate goal will be for metaverse leaders to develop their own metaleadership identity which will be a trifecta of business acumen, new management styles, personal behavioral traits and acquired meta skills.
I believe forward-thinking metaverse leaders will engage in designing smart Web 3.0-powered and metaverse-enriched cities, leveraging digital twins technology in the metaverses to improve the quality and safety of our lives and work, and strengthen the will understand the power that global metaverse citizenship can have for upholding the UN’s human rights and SDG agendas.
As with all emerging technologies, the spectrum of evolution can span over a decade or more. We are currently witnessing a nascent metaverse, and leaders can evolve in parallel with its maturation. Leading with a hybrid approach of humility and resilience to overcome adversity is likely to serve leaders well during the exciting yet tumultuous metaverse transformation journey.
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