Augmented and Virtual Reality: Taking the Metaverse from Specialized Tech to Enterprise Mainstay

The emergence of augmented and virtual reality has increased the viability of the metaverse for enterprises.

Augmented reality and virtual reality have moved beyond the realm of science fiction. Augmented and virtual realities are now being used by businesses of all sizes to transform how they operate, opening up new business opportunities in the process. In this article, we'll be taking a look at how enterprise businesses are using and will continue to use these technologies.

Metaverse Emerges as Viable Enterprise Tool: Companies Invest in AR/VR Technology for Increased Customer Engagement and New Offerings

Technology has come a long way since the first computer was built, and the way we interact with it has evolved along with it. From punch cards to PCs, mobile devices and wearables, we've been moving towards simpler and more intimate interactions. However, as screens can't keep getting smaller, the paradigm is shifting once again, this time towards immersive virtual experiences that take us into the metaverse.

The term metaverse was first coined in 1992, but it's only in recent years that it has gained significant traction. With the proliferation of affordable augmented and virtual reality (AR/VR) technology and the cultural shift brought on by the COVID-19 pandemic, digital worlds have become a viable place for human connection. Additionally, the elasticity of cloud computing has mitigated some of the architectural challenges that slowed previous incarnations of immersive spaces.

Businesses are also taking notice, with tens of billions in venture capital investment in the past year, and analysts estimating a $800 billion market by 2024. The metaverse is not just a diminished proxy for in-person experiences, but an enriched alternative to the internet itself. Companies that invest in technologies such as edge computing and AR/VR devices will have an opportunity to reduce costs, increase customer engagement, and pioneer entirely new offerings. Intentional, strategic adoption will be crucial for businesses to stay competitive in this emerging market.

The metaverse has been a popular concept in the tech industry for decades, but it is only recently that it has begun to gain traction as a viable enterprise tool. The metaverse, a term coined in 1992, refers to a digital world that can be accessed through augmented and virtual reality (AR/VR) technology. This immersive internet offers a new way for businesses and consumers to interact, and it is expected to become a major market in the coming years.

The gaming industry has been at the forefront of the metaverse's rise to prominence. The digital gaming industry is expected to generate more than $220 billion in revenue in 2023, surpassing the combined revenue of streaming video, digital music, and e-books. Specifically, the online gaming industry is projected to exceed $26 billion in 2023, with an audience of 1.1 billion gamers. These gamers often gather online not just for gameplay, but for the social and commercial possibilities offered by the immersive internet.

Entering the Metaverse: How Immersive Technology is Transforming Business

The metaverse also offers new opportunities for brands to engage with consumers. For example, about 25% of US gamers have attended an in-game event in the last year, such as the Fortnite concerts featuring Ariana Grande and Charlie Puth. These events attracted millions of players, and a striking 82% of those attending also made a purchase, either in the form of digital goods or physical merchandise. Luxury brand Gucci even made news for selling a virtual handbag in the game Roblox for $800 more than its real-world price. These figures demonstrate that the economy of the immersive internet mirrors the physical world, and that brands can charge a premium for providing a unique experience or signaling value to other consumers.

Investing in the metaverse now can help businesses meet customers where they already are. By 2026, it is estimated that 25% of consumers could be spending at least one hour in the metaverse each day, while 30% of businesses will have products and services ready. As the metaverse becomes more mainstream, having a sound strategy in place will be crucial for success in this burgeoning market.

However, this is not to say that the metaverse is ready for mass adoption just yet. While the proliferation of affordable AR/VR technology and the cultural shift brought on by the COVID-19 pandemic have catalyzed the acceptance and importance of digital worlds as viable places for human connection, architectural challenges that slowed previous incarnations of immersive spaces have not yet been fully mitigated. Furthermore, technologies such as edge computing and AR/VR devices are still in their infancy, and more research and development is needed before they are ready for widespread use.

In order to fully leverage the potential of the metaverse, businesses must also be prepared to adapt their strategies and business models. The metaverse offers new possibilities for customer engagement and cost reduction, as well as the potential for entirely new offerings. For example, retailers can use the metaverse to create virtual store experiences, while manufacturers can use it to simulate and test products before they are built. The metaverse also has the potential to revolutionize industries such as real estate, allowing virtual tours and even virtual home buying.

Strategizing for the Metaverse: Lessons from the Dot-Com Boom

As the metaverse gains momentum as a viable enterprise tool, businesses should consider the lessons of the internet's early days to guide their adoption plans. While some companies may focus on revenue growth through immersive consumer experiences, others may optimize operations through enterprise simulations and augmented workforce training. By studying the successful strategies of the dot-com era, businesses can position themselves to capitalize on the potential of the metaverse.

Businesses that Utilize the Metaverse for Promotion and Engagement

As the metaverse becomes more mainstream, companies that have traditionally used the internet for promotion and advertising will likely continue to do so in this digital world. Consumers may encounter interactive advertisements while exploring the metaverse, such as virtual billboards or virtual storefronts created by retailers like Ralph Lauren. These companies may not see the metaverse as a central part of their operations, but rather as a means of engaging with customers as the technology becomes more widely adopted.

Companies using AR/VR to Enhance their Products and Services

'Plussers' - A new set of companies are using augmented and virtual reality (AR/VR) technology to enhance their existing products and services. These companies, known as 'Plussers', are leveraging the popularity of the metaverse to boost their business without having to fundamentally change their model. For example, the Lawn Tennis Association (LTA) recently added AR messages to tennis ball canisters to give players a more immersive experience. Similarly, governments around the world are exploring how the metaverse can improve public services. By making strategic additions, these companies can appeal to younger audiences and adapt to the evolving digital landscape.

Innovators

A final group of companies are those who are looking to be pioneers in the metaverse, taking on higher risks to capitalize on its potential. These companies are already developing foundational technologies, platforms, and other key components for the metaverse, such as Niantic, the creator of the mobile game Pokémon Go. They have seen a huge success and growth in valuation, going from $150 million to $9 billion. Businesses that want to achieve similar success are investing in metaverse designers and creators who can envision exciting digital futures. As the metaverse becomes more established, these innovators will need to make strategic moves to stay ahead in the game.

Companies Look to Metaverse for Growth and Optimization: From Virtual Storefronts to Enterprise Simulation and Augmented Workforce Experience

The metaverse can also be used for optimizing and improving existing business processes. Enterprise simulation, for example, can be used to reduce the cost and improve the efficiency of designing, building, and operating complex machinery in industries such as aviation. Companies such as Airbus and Boeing are using digital twins of their airplanes and equipping mechanics with AR headsets, resulting in quality improvements of over 70%. Similarly, NVIDIA has developed a platform called Omniverse, where manufacturers like BMW can simulate entire factories and expect to see a 30% gain in efficiency. Additionally, not all enterprise simulations require headsets, with many companies using more traditional tools such as tablets, laptops, and kiosks to engage with tools for better understanding, predicting, and optimizing their businesses.

Another way companies are using the metaverse is by providing personalized experiences for learning and collaboration that are intuitive, streamlined, and scalable. These solutions can provide better data on participation rates, how long trainees are spending on lessons, and the steps they are struggling with, leading to improved training effectiveness. For instance, Exelon, the largest electric utility in the United States, has seen significant benefits from using VR training. Since electrical substations can be dangerous, the virtual environment allows Exelon's staff to build muscle memory for donning protective gear and solving electrical issues without risking their safety.

Despite the focus on revenue potential, some of the best uses of the immersive internet may be in creating equitable access to company processes and developmental opportunities, similar to how the internet has been used to store and access internal data online.

Advances in Computing and Connectivity Drive Immersive Technologies into the Mainstream

As technology continues to advance, immersive internet experiences are becoming more accessible to businesses and consumers alike. The simultaneous growth in computing power, connectivity, and location-based data is opening up new possibilities for the metaverse and other immersive technologies. Some of the exciting potential developments in this field include:

? Enhanced sensory experiences: While current immersive technologies primarily focus on visual and auditory stimulation, advancements in scent technology and haptic gloves are bringing the sense of smell and touch into virtual reality.

? Thought-controlled interactions: Brain-computer interfaces (BCIs) are simplifying the way we interact with technology, allowing users to control digital avatars and environments with their thoughts.

? All-in-one devices: The next generation of devices may eliminate the need for additional headsets or handheld devices, enabling users to fully immerse themselves in the metaverse.

? Spatial interaction: Augmented reality tools such as smart glasses and motion sensors allow users to interact directly with physical data without creating a digital copy. This could enable patrons to access restaurant information and promotions simply by walking up to a building, or allow concert-goers to attend a show without seeing any of the surrounding billboards.?

Technology interaction is poised to progress from separate digital realities toward ambient computing, where users can move beyond the glass and look up from their devices at a world that synchronizes effortlessly with technology. In each path previewed above, the common denominator is simplicity, the ultimate end game of technology interaction.

Yet as we prepare for this future, we should know that the risks, including cybersecurity, privacy, safety, regulation, and ethics, are anything but simple. Given immersive technologies’ potentially profound impact on the economy, it's important for us as leaders to dedicate time to shaping the technology in a way that protects trust and creates value.

If history continues to be a guide for future-ready leaders, then moving through the glass and beyond will likely require moving beyond established orthodoxies. Preparing now could help propel us from the current internet age to the next.