According to Gartner, by 2026, 25% of people will spend at least one hour per day in the metaverse. Research analysts at many leading banks expect the yearly total addressable market in this emerging economy to reach the trillions of dollars of value by 2030, ranging from an estimate of $1 trillion from JPMorgan to $13 trillion at Citi.
Just as it was for internet and mobile networks over the past two decades, establishing a presence in this emerging economy will be crucial for the long-term growth of most businesses. Finding the correct entry point to capture a share of this upcoming value is the key challenge that firms will need to address over the next two years. The Metaverse Readiness Report (MRR) is a proprietary framework developed by Prysm Group based on years of consulting leading companies in adopting and implementing emerging technologies in their business strategy. With this framework, organizations will move beyond jargon and focus their efforts on how exactly embracing the metaverse economy will allow them to deliver long-term growth to their firm.
The Metaverse Readiness Report is organized into the following five sections:
“Who will we target?”
This first section of the MRR addresses the starting question any organization contemplating developing a metaverse strategy should start from, “who will we target?” There are various options to this, including whether a firm is attempting to interact with an existing customer in a new way or provide more value to them, or whether you are trying to reach a new audience that they have failed to properly reach in the past.
“What will we offer?”
This second section of the MRR addresses the critical question, “what will we offer?” Many firms have waded into the metaverse with temporary publicity-focused activations. Moving beyond this, firms must decide, to have a meaningful impact on the market, what goods, services, or experiences will they offer? Which will best speak to the defined target customers?
“Where will we engage?”
This third section of the MRR addresses the following question, “where will we engage?” Identifying the best and most relevant metaverse technologies and experiences to engage will depend on where the target customers are currently or where they will be. The implication of this choice will determine a low-risk / low value vs. a high-risk / high-value strategy and whether the firm will interact in a Web2, Web3, or a combination of both environments.
“How will we make money?”
This fourth section of the MRR addresses the fundamental business question, “how will we make money?” There are numerous ways to extract value from providing a metaverse product or service. To define this, the first decision to address is whether or not to charge money for access or use or to make the product or service freely available. Is there more value in usage, or is there greater or equal value in brand exposure? Additionally, should this product or service be connected to a real-world experience? If so, when, how, and why? The analysis of the short-term vs. long-term optimal monetization trade-off will be essential to ensure the success of any chosen strategy.
“Are we ready?”
This fifth and concluding section of the MRR addresses the question, “are we ready?” There are three main components of enterprise readiness that any business will need to address to ensure it has the necessary planning, resources, and understanding to embrace the metaverse economy, these are:
(i) Business readiness
Whether internal, for hire, or contract, business readiness requires a well-defined strategy, resources, and talent to implement such a strategy within an organization. It also requires the ability to set, measure, and achieve KPIs to ensure the path to success can be properly measured.
(ii) Technical readiness
To be able to integrate with necessary hardware, such as AR, mixed AR/VR, or VR headsets and their respective requirements, technical readiness requires the capacity to implement both platform and application level software, whether general purpose, like the uses of Unity or Unreal Engine, or metaverse specific.
(iii) Regulatory readiness
With the fast-evolving regulatory requirements that will regulate business activities in the metaverse economy, regulatory readiness includes the selection of expert legal counsel to ensure preparedness, compliance, and ultimately facilitate success.
Interested in learning more about how the Metaverse Readiness Report can help your business? Contact our metaverse advisory team here.