354-363. Furthermore, some authors have referred to BMI as a viable way for organizations to adjust to changing sources of value generation in times of high environmental instability (Pohle and Chapman, 2006; Schneider and Spieth, 2013). Economics of Metaverse gaming5.3. Buy Your Open Metaverse on Exchanges with Markets and $ 238.09K Daily Trade Volume. Prospective development and implications, Future Internet, Vol. In this study, we present the nature and main value proposition of the metaverse, as well as its key enablers and limitations. 6, pp. 4, pp. Other mentioned reasons for this decision were the significant signaling effect on the internal organization as well as using rebranding as a recruiting vehicle to acquire the best talent (Vaynerchuk, 2021). Metaverse key concepts 2.5. Pohle, G. and Chapman, M. (2006), IBM's global CEO report 2006: business model innovation matters, Strategy and Leadership, Emerald Group Publishing, Vol. While some researchers have argued for commonalities between the product/process and BMI (Bucherer etal., 2012) or the use of scenario techniques (Gnatzy and Moser, 2012), others have regarded BMI as an individual type of innovation aimed to secure the future existence of a firm (Baden-Fuller and Mangematin, 2013; Filser etal., 2021; Massa and Tucci, 2014). This is a BETA experience. And if the above logic isnt enough for you, here are the three reasons why companies should act now. I am in total amazement. At the same time, the company is facing a decreasing customer base in its social media unit, forecasting in-house a decline of 45% by 2023 among the target group of teenagers (Roose, 2021). Glick, M. and Ruetschlin, C. (2019), Big tech acquisitions and the potential competition doctrine: the case of Facebook, Institute for New Economic Thinking Working Paper Series, No. - Video Gaming as the Most Advanced Option", https://www.researchandmarkets.com/r/xe8jjf, Logging Into Zoom at the Beach Could Land You a Tax Bill, Beijing may allow foreign financial firms to list in China - ex-finance minister, Texas Court Ruling Casts Uncertainty Over 21 Blackout Costs, China cuts reserve ratio given domestic pressures, overseas risks - state media, Sam Bankman-Fried, U.S. prosecutors near new bail agreement. Examples of such cooperation include a hardware-focused partnership with the eyeglasses manufacturer Ray-Ban (Meta, 2021b) and software-focused cooperation as seen in online meetings with Microsoft (Rodriguez, 2021a). This situation leads us to: Changes in the value proposition are focused primarily on a new user experience but do not affect the core offering and are therefore incremental in nature. Our study is a preliminary endeavor to understand the BM transition from Facebook to Meta. It will have four major component parts. Even though many cases against the Facebook corporation were due to practices by the social media business unit, the negative reputational effects were generalized and spread to other parts of the company, such as WhatsApp (Statt, 2021). 5, pp. Read, R. (2013), Delete Me: An Argument against Facebook, 2nd ed., CreateSpace Independent Publishing Platform, Scotts Valley, CA. Establishing a customer value program is a critical element of any successful business. Peltoniemi, M. (2011), Reviewing industry life-cycle theory: avenues for future research, International Journal of Management Reviews, Vol. Metaverse projects on blockchain networks are powered by fungible tokens tokens that are divisible and can be mutually exchanged. March, J.G. Hardy, C. (2001), Researching organizational discourse, International Studies of Management and Organization, Taylor & Francis, Vol. WebThe Metaverse of Data Centers How Data Center World is the Bridge to New and Future Technology Concepts The world of digital infrastructure is experiencing constant change and evolution. Here is how to do it. 24 No. Forman, L. (2021), For Meta, the metaverse isn't so extra, The Wall Street Journal, available at: https://www.wsj.com/articles/for-meta-the-metaverse-isnt-so-extra-11636045785 (accessed 30 November 2021). 349-375. 17 No. Image:Giu Vicente/Unsplash. Metaverse value proposition2.4. From an overarching perspective, a clear definition of the metaverse remains to be established, but experts assume that it will be a combination of technologies currently known as virtual, augmented and mixed realities (Hall and Li, 2021; Lee etal., 2021). 6, pp. Nevertheless, Metas core offerings intended to foster social community remain the same, even as the company aims to provide a more digital, virtual and augmented environment. Scope & definitions2.1. In simple terms, the concept explains what business does for whom and why and clarifies how profits are made (Boudreau, 2017; Chesbrough, 2007; Teece, 2010). (2020), VR headset market expected to grow despite short-term decline, according to IDC, IDC, available at: https://www.idc.com/getdoc.jsp?containerId=prUS46860320 (accessed 18 November 2021). Ghaffary, S. (2021), It's getting harder for people to believe that Facebook is a net good for society, Vox, available at: https://www.vox.com/recode/22677911/facebook-scandal-research-teen-mental-health (accessed 3 December 2021). Enterprises can take advantage of the metaverse to enhance human and machine customer experience. According to influencermarketinghub.com, the metaverse may be worth $800 billion in 2024, up from $47 billion in 2020. The predecessor of the metaverse, Second Life, which was established in 2003, reached 57 million registered accounts in its own virtual world by its 15th anniversary (Voyager, 2018). After receiving those first investments and in light of its growing user base, Facebook decided to grant access to everyone on the platform to connect with friends (Facebook, 2006). The metaverse is real and in many ways its already here. Start defining use cases that are clear and probable. These options are inherently risky and should be considered a speculative investment. First Layer: Experience Many individuals assume that the meta-universe is the three-dimensional global realm that surrounds us. Thus, it might be questionable whether the recent move, involving risk and uncertainty, is a concise step toward innovation in terms of the existing BM. Next, Facebook launched the Facebook Developer Platform in 2007 to encourage developers to build applications that were integrated into Facebook (2007). Leonhardt, M. (2021), Teens have been losing interest in Facebook for years, data shows, Fortune, available at: https://fortune.com/2021/10/25/facebook-teens-usage-harm-studies/ (accessed 3 December 2021). Therefore, we must consider which concepts and relationships allow a simplified description and representation of what value is provided to customers, how this is done and with which financial consequences (p. 3). Consequently, the Facebook platform is hampered by an aging userbase and will probably also lose its exposed position as a social media brand inside the Meta corporation (Heath, 2021). For more detail about our structure please visithttps://kpmg.com/governance. 3, pp. Early adopters will likely have a significant advantage, making it crucial that businesses start exploring and experimenting now as the pace of change accelerates. 2, pp. Last came the reporting and distribution step, which concentrated on the conduction of the analysis and the observation of results, as well as evaluating the practical consequences of our findings. In this study, we present the nature and main value proposition of the metaverse, as well as its key enablers and limitations.The analyst addresses the potential impacts of metaverse on the gaming industry.The analysis covers various concrete case studies over the video games market, with a focus on their ecosystem, business model, as well as of their main metaverse features.The analyst then details the economics of metaverse gaming, describing the key models that can be applied in the perspective of both diversification and increase in revenues.The vision of the potential impact of metaverse on the gaming industry (and "vice versa") serves to identify the drivers and barriers for gaming and more broadly for the development of the metaverse. Among the companys substantial problems was the Cambridge Analytica data harvesting incident, which became public in 2018, involving 87 million records that were used for advanced and decisive targeting purposes in the presidential campaign between Hillary Clinton and Donald Trump (Confessore, 2018; ur Rehman, 2019). Twenty-eight years later, public companies like Meta (formerly Facebook) and decentralized autonomous organizations (DAOs) like the Decentraland Foundation have been working to make the metaverse a profitable reality. The lifespan of a BM is often limited. Rethink the employee experience and create a roadmap to bring employees closer through XR. BMI has been defined as a firms attempt to develop, implement and sustain ways to create, deliver and capture value (Casadesus-Masanell and Ricart, 2010; Kraus etal., 2020; Schneider, 2019). McKinsey has now taken a deep dive into the potential of the metaverse, surveying more than 3,400 consumers and 450 senior leaders globally in its recent report, Value Creation in the Metaverse , launching this week at VivaTech in Paris. On October 28, 2021, Mark Zuckerberg, the CEO of the social network of the world (Read, 2013, p. 193), Facebook announced a name change to Meta while elaborating on a new vision that entailed building up the metaverse, a three-dimensional space representation based on virtual and augmented reality (Choi and Kim, 2017). Filser, M., Kraus, S., Breier, M., Nenova, I. and Puumalainen, K. (2021), Business model innovation: identifying foundations and trajectories, Business Strategy and the Environment, Vol. TechCrunch (2010), Zuckerberg makes it official: facebook hits 500 million members, TechCrunch, available at: https://techcrunch.com/2010/07/21/facebook-500-million/ (accessed 25 November 2021). Welcome to Extended Reality (XR), a new frontier of converging technologies shaping the metaverse of tomorrow an immersive, interconnected 3D world in which Virtual Reality, Augmented Reality, Artificial Intelligence, Blockchain and Cryptocurrencies will redefine how we live, work and socialize. KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (KPMG International), each of which is a separate legal entity. Facebook (2020), WhatsApp: number of users, Facebook Q1 Earnings Call, available at: https://s21.q4cdn.com/399680738/files/doc_financials/2020/q1/Q1'20-FB-Earnings-Call-Transcript.pdf (accessed 25 November 2021). The authors of this study conducted separate analyses of the available textual material, guided by the principles proposed by Fairclough et al. What Microsoft's acquisition of Activision Blizzard means for the metaverse, This is how the metaverse might be monetized. Phone: 650-931-2505 | Fax: 650-931-2506 - Video Gaming as the Most Advanced Option" report has been added to ResearchAndMarkets.com's offering. Nielsen, C., Lund, M., Montemari, M., Paolone, F., Massaro, M. and Dumay, J. In the book, the metaverse is basically a protocol, which allows you to plug your own server into a VR world. Map your organizations value proposition on the metaverse. Leisure: It will introduce games that take us to different worlds. Wearden, G. (2010), Shareholder trading values Facebook at more than $33bn, The Guardian, available at: https://www.theguardian.com/technology/2010/aug/25/facebook-value-flotation (accessed 25 November 2021). Therefore, additional research efforts might be needed to validate whether the research results can be transferred and applied to other companies as well as industries that pursue a BM transition. 33 No. Metaverse gaming use cases4.1. The metaverse will provide economic opportunities using new kinds of digital business assets (DBAs) and value exchange models. 37-46. Strikers FC Academy is focused on football development for players in Ghana and across Africa. The company is promising to enhance the user experience, incorporating such features as augmented reality and a virtual reality user interface, seamless integration of all applications and security (Luther etal., 2020), along with more options to connect and exchange as well as the opportunity for users to create their own virtual world. WebMap your organizations value proposition on the metaverse. By 2008, more than 400,000 developers from 160 countries had registered to develop applications (Facebook, 2008). In the metaverse, the blueprint for success starts with delivering meaning, will leverage rich and immersive experiences, and flip the business model to allow Partnerships need to be differentiated into those with clients in the advertisement space and those that shape the metaverse ecosystems. Metaverse, technology trends, value proposition, societal impact, business impact Abstract In this reflective article we discuss the potential of recent developments in virtual worlds for offering novel value propositions for the digital transformation of Foss, N.J. and Saebi, T. (2017), Fifteen years of research on business model innovation: how far have we come, and where should we go?, Journal of Management, Vol. 89 Nos 1/2, pp. aggressive and peaceful). All Rights Reserved Design & Developed By:: RINJAcom, For enquary We can help:: +233 (0) 24-611-9999. And renaming the company has probably been done to allow using the metaverse name without having to deal with the author. Aagaard, A. and Nielsen, C. (2021), The fifth stage of business model research: the role of business models in times of uncertainty, Journal of Business Models, Vol. The metaverse offers a massive opportunity for all major communication, education, gaming, social media and entertainment companies. (2021), Facebook spending $10 billion this year on its metaverse division, The Verge, available at: https://www.theverge.com/2021/10/25/22745381/facebook-reality-labs-10-billion-metaverse (accessed 6 December 2021). (2007) and Hardy (2001), who suggested analyzing three aspects. A museum tour will be much more realistic supplemented by metaverse technology. Metaverse as the next major computing platform. Velazco, C. (2021), What you should know about Meta's vision of the metaverse, The Washington Post, available at: https://www.washingtonpost.com/technology/2021/10/28/facebook-meta-metaverse-explained/ (accessed 30 November 2021). In summary, Meta does not need to significantly revolutionize its capability base for the metaverse but can mostly rely on further revolutionary developments of its current competencies. Our study aims to contribute to the specific cross-section of BMI (Breier etal., 2021; Christensen etal., 2016; Clauss, 2017), the use of metaverse technology (Dionisio etal., 2013; Goossens etal., 2021; Javornik etal., 2021; Jaynes etal., 2003; Lee etal., 2021; Massa etal., 2017) and corporate branding (e.g. 13 No. The product life cycle can be adopted for the BM, including offerings, markets, and customer channels, customer relationships and revenue models. Reasons for the decline are manifold. 126-139. (2013), Metaverse-retail service quality: a future framework for retail service quality in the 3D internet, Journal of Marketing Management, Vol. 1, pp. Despite changes in the private customer side, Meta will keep the focus on the advertising market while also expanding its efforts to participate in transactions for virtual reality hardware and services used for such applications as meetings, games or digital objects (Meta, 2021a). 4, pp. Facebook (2007), Facebook unveils platform for developers of social applications, Facebook Press Release, available at: https://about.fb.com/news/2007/05/facebook-unveils-platform-for-developers-of-social-applications/ (accessed 25 November 2021). Press-Reynolds, K. (2021), Facebook wants to attract Gen Z, but teens say they don't want to join, Insider, available at: https://www.insider.com/facebook-gen-z-teens-boomer-social-network-leaks-2021-10 (accessed 3 December 2021). This will change the relationship between consumers, brands and retailers and could redefine the value chain and intellectual property. Fairclough, N., Cortese, G. and Ardizzone, P. (2007), Discourse and Contemporary Social Change, Blackwell Publishers, Oxford, Vol. 52-61. Consider not only the obvious that employee, client and third-party interactions may take place in the metaverse but also that as XR-based business transactions proliferate, your business could have a different value proposition. According to influencermarketinghub.com, the metaverse to enhance human and machine customer experience study, we present the and... ) and hardy ( 2001 ), Reviewing industry life-cycle theory: avenues for research!, here are the three reasons why companies should act now advantage of the to...: 650-931-2505 | Fax: 650-931-2506 - Video Gaming as the Most Advanced Option '' has... 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