Oleg Fonarov is the founder and CEO of Program-Ace, a software engineering, Web3 development and digital transformation company.
These days, the metaverse beckons as the next frontier for business collaboration. As globalized operations become the standard, virtual reality emerges as the linchpin, poised to redefine how enterprises engage, strategize and innovate.
Let’s delve into the heart of VR’s transformative potential within the boundaries of the metaverse, addressing the most critical challenges executives encounter and the benefits awaiting those who adapt.
Why Immersion Is A Valuable Asset In Business
According to Capgemini, 75% of companies experienced a 10% surge in operations after implementing XR technologies. This is likely primarily due to cost savings in infrastructure maintenance and more effective remote collaboration. Among the sectors that have benefited most from this innovation are automotive manufacturing, oil and gas, and transportation.
Moreover, research shows that VR can help reduce the odds of work-associated injuries by 43%, which translates to substantial financial savings for companies regarding workers’ compensation claims, legal fees and lost productivity. Reduced injury rates also mean fewer disruptions in workflow, allowing projects to be completed on time and within budget.
While conventional cooperation methods lack immersive experiences and force companies to spend more on travel, VR helps foster productivity and engagement.
VR’s Role In Fueling Metaverse Collaboration
Eighty-two percent of organizations implementing AR or VR claim that the technology exceeds their expectations in terms of performance boost in operations. Immersive deal rooms and board meetings facilitated by VR have transcended the constraints of traditional video conferencing.
For instance, Nike has successfully launched an immersive digital environment known as “Nikeland,” attracting over 31.5 million visits. Similarly, Hyundai became a pioneer in the automotive industry by being the first car brand to invest in Roblox, where it established a unique virtual showroom called “Hyundai Mobility Adventure.” Not stopping there, Hyundai further broadened its metaverse presence by offering future mobility experiences on the ZEPETO platform.
Meanwhile, consulting behemoth Accenture has developed a specialized metaverse space “The Nth Floor” (paywall). This digital environment is designed to replicate the conditions of physical offices, facilitating staff training, onboarding and various human resources activities. Based on my own experience, virtual meetings in the metaverse foster productivity and engagement.
VR Business Solutions In The Metaverse
Now let’s talk about business benefits from the standpoint of the following two aspects.
1. Cost Savings And Efficiency
• Spatial Presence For Critical Meetings: Unlike Zoom or other video conferencing tools, where the feeling of presence is limited, VR enables spatial audio and 3-D interaction, recreating the nuances of in-person communication.
• Hands-On Training And Skill Development: VR provides opportunities for experiential learning that video conferencing tools can’t match. Whether it’s practicing a surgical procedure or simulating emergency response scenarios, VR allows for a level of hands-on experience that is otherwise difficult to achieve remotely.
• Optimized Infrastructure Management For Large-Scale Facilities: Although the reduction of office space through VR analytics is valuable, the actual financial impact of this technology is most pronounced in large-scale facilities such as factories and ports. Moreover, it plays a significant role in designing replicable structures like hospitals and schools. VR allows for the simulation of scenarios before committing to significant investments.
2. Driving Innovation And Competitive Advantage
• Immersive Customer Experiences: While Zoom can provide a platform for customer engagement, VR can offer an immersive brand experience.
• Intellectual Property Development: Creating proprietary VR experiences can yield intellectual property assets to be leveraged for competitive advantage. This can make your business more valuable and provide another revenue stream through licensing.
• Sophisticated Stakeholder Demonstrations: While you can present a PowerPoint to investors via Zoom, imagine walking them through a 3-D, VR-rendered future version of your factory, product or service.
Critical Challenges Of VR In The Metaverse
Integrating VR into the metaverse presents multifaceted challenges that businesses must address to ensure successful adoption. One of the primary concerns is technological infrastructure and integration. The rapid evolution of VR technology, combined with its high initial costs, makes it daunting for businesses to incorporate it seamlessly. The VR market’s lack of universally compelling content further complicates its integration.
Another significant challenge revolves around user onboarding, training and support. While VR has shown potential in enhancing employee onboarding, as evidenced by the 82% improvement in retention (pg. 12), tailoring VR training to a diverse workforce is intricate. Companies should invest in modular VR training designs and establish robust support systems to maximize VR’s benefits.
Accessibility and social implications also pose challenges. Not everyone can comfortably use VR due to issues like motion sickness or other physical limitations. Furthermore, the immersive nature of VR, as highlighted by NAB Amplify, can lead to potential addiction, causing users to become isolated and potentially develop mental health issues.
Financial and budgetary concerns are equally pressing. The rapid evolution of AR/VR technology, as noted by Deloitte Insights, demands substantial investment. The unpredictability of market trends and the high costs associated with the latest XR hardware further complicate budgetary planning.
Other considerations include user privacy, data security and the energy consumption required for VR environments. Interoperability within the metaverse and the challenge of moderating user-generated content to adhere to laws and regulations are also significant concerns. Businesses must address these challenges holistically to harness VR’s potential in the metaverse.
Future-Proofing Business Collaboration
I believe the evolution of business collaboration is anchored in next-gen VR tools, which promise to revolutionize team interactions and foster innovation. Integrating with transformative technologies like AI and IoT will unlock unprecedented efficiencies and collaborative dynamics as VR matures.
Prioritizing investments ensures a competitive edge. Therefore, strategic implementation across diverse business units, complemented by informed best practices, is critical. This optimizes current operations and helps enterprises become future-proofed.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Read the full article here
