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- Herausgeber: Packt Publishing
- Kategorie: Fachliteratur
- Sprache: Englisch
This book guides organizations in effectively responding to the metaverse, a rapidly converging collection of advanced technologies, methods, and models. The metaverse is poised to be as disruptive as the personal computer, Internet, and smartphone, impacting personal, social, professional, and business lives. The book covers essential metaverse technologies and concepts, helping organizational leaders plan their transformation strategies.
The journey begins with an introduction and key definitions, followed by the evolution of IT governance and responses to disruptive technologies. It delves into AI, machine learning, blockchain, platforms, algorithms, edge computing, quantum computing, and immersive technologies like VR, AR, MR, and XR. Further chapters explore holographic technologies, deep tech, and other metaverse-related technologies, along with organizational structures and governance frameworks for the metaverse era.
Understanding these concepts is crucial for navigating the metaverse transformation. The book concludes with a detailed hypothetical case study, illustrating how such a transformation can be achieved. This resource helps executives and professionals chart an effective course to the metaverse, blending theoretical insights with practical applications.
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Seitenzahl: 438
Veröffentlichungsjahr: 2024
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To Susan, My love, my world, my inspiration
Contents
Preface
Acknowledgments
Part 1 Book Overview and Key Concepts
Chapter 1 Introduction
1.1 The Metaverse is Closer than We Might Think
More to Come
1.2 The Metaverse: An Overview
No Consensus Definition
Two Important Attributes
Current Status of the Metaverse
Not Without Its Challenges
History of Changing User Relationships to Technology: From Remote to Immersive
1.3 The Power of Technological Convergence and Synthesis
1.4 An Important New Phase of the Digital Age
1.5 Enterprise Transformations in the Metaverse Era
Enterprise Digital Transformations Have a Poor Record of Success
Timing is Vital
1.6 Increased Nimbleness at All Organizational Levels
1.7 The Pivotal Role of a New-Era Enterprise Architecture
1.8 How This Book Can Help
1.9 Key Takeaways
References
Chapter 2 Structure Of The Book And Key Definitions
2.1 Important Definitions and Concepts
Board of Directors
Executive Management or C-Suite
Enterprise Architecture (EA)
“Nimble” Enterprise
2.2 Key Takeaways
Part 2 Background and Context
Chapter 3 Evolution of IT Governance Frameworks
3.1 Introduction
The Early Days of Computing
Gaining Control of Computer Proliferation
Existing Enterprise Architecture Frameworks and Tools
Suggested Approach to Enterprise Architecture
3.2 Key Takeaways
References
Chapter 4 Slow Responses To Disruptive Technologies
4.1 Tech Industry – A History Defined by Eras
4.2 Digging Deeper: Innovation Diffusion and Chasm Crossing
4.3 Focus on One Industry: Healthcare
4.4 Accelerating Technology Acceptance
Ensure Familiarity with the Incoming Wave
Build a Coalition
Find Attractive Use Cases
Declare Yourself Competent and Then Become So
4.5 Key Takeaways
References
Chapter 5 Nimbleness In The Animal Kingdom
5.1 Raw, Primal, Physical Nimbleness – The Gazelle
5.2 Subtle Nimbleness – The Chameleon (and Reverse Chameleon)
Blending In (Less Common)
Reverse Chameleon Effect (More Common)
5.3 Key Takeaways
Part 3 Key Technologies That Will Enable Organizational Nimbleness in the Metaverse Era
Prelude to Part 3
Chapter 6 Artificial Intelligence and Machine Learning
6.1 Introduction
6.2 The Growing Importance of AI in Business
ChatGPT as an AI Example
6.3 What is Artificial Intelligence?
6.4 What is Machine Learning?
Machine Learning in History
Machine Learning vs. Deep Learning
6.5 AI and Software Development in the Metaverse
6.6 AI and the Singularity
6.7 AI / ML – Cost Considerations and AIaaS
6.8 The Time to Act is Now
6.9 Key Takeaways
References
Chapter 7 Blockchain
7.1 Blockchain and Smoother Enterprise Information Flow
7.2 What is Blockchain?
Different Kinds of Blockchains
Traditional Databases versus Blockchain
Other Uses of Blockchain
Blockchain and Cybersecurity
An Example of Blockchain Use in the Enterprise
7.3 Key Takeaways
References
Chapter 8 Platforms
8.1 Introduction
8.2 Discussion of Business Platforms
Platform as a Business Model
The Internal Organizational Platform Model
8.3 Platforms and Deep Tech
8.4 Summary
8.5 Key Takeaways
References
Chapter 9 Algorithms
9.1 Introduction
9.2 An Essential Competitive Requirement
9.3 Background and Overview
Algorithms are Myopic and Literal
Special Note on Algorithms and Quantum Computing
9.4 Developing and Managing Algorithms in the Enterprise
Impact of Algorithms on Structure, Employees, and Staffing
Transforming the Production Worker
9.5 Key Takeaways
References
Chapter 10 Edge Computing
10.1 Introduction
10.2 What is Edge Computing?
10.3 Setting Up an Edge Computing Solution
Define Edge Computing Objectives
Assess Edge Design and Deployment Options
10.4 Key Takeaways
References
Chapter 11 Quantum Computing
11.1 Introduction
11.2 Importance to Metaverse Transformation
11.3 What is Quantum Computing?
11.4 The Science Behind Quantum Computing
Superposition
Entanglement
11.5 Implications for Organizations
11.6 Do Production Quantum Computers Currently Exist?
11.7 Current and Potential Applications of Quantum Computing
11.8 Quantum Computing and Security Issues
11.9 Key Takeaways
References
Chapter 12 Immersive Technologies (VR, AR, MR, and XR)
12.1 Definitions
Augmented Reality
Virtual Reality
Mixed Reality
Extended Reality
12.2 Convergence of Immersive Technologies
Focusing on VR and AR
How VR is Currently Being Used in Business
How AR is Being Used in Business
12.3 How to Get Started with AR/VR
12.4 Key Takeaways
12.5 References
Chapter 13 Holographic Technologies
13.1 Introduction
13.2 Background
13.3 How Holographic Technologies Work
A Note on Avatars
13.4 Examples of Hologram Use Cases
Communications
Museums
Military Applications
Information Storage
Medical Applications
Fraud and Security
Art
13.5 3D Holograms in Real Time?
13.6 Key Takeaways
References
Chapter 14 Deep Tech
14.1 Introduction
14.2 Deep Tech Overview
Not a New Concept
Comparison With “Shallow” Tech Organizations
Deep Tech Attributes Traditional Firms Should Emulate
Transformation Strategy Recommendation: Align With a Deep Tech Organization
14.3 Key Takeaways
Chapter 15 Other Metaverse-Related Technologies
Robotics
Digital Twins
The Internet of Things
Brain-Computer Interfaces (BCIs)
3D Reconstruction
Spatial Computing
Web 3.0
Industry 4.0 / Industrial Revolution 4.0
15.1 Key Takeaways
References
Part 4 Putting It All Together
Chapter 16 Organizational Structure for the Metaverse Era
16.1 Introduction
16.2 Alternative Organizational Structures
16.3 Key Takeaways
References
Chapter 17 Governance Framework for the Metaverse Era
17.1 Introduction
Governance Zones of Responsibility
17.2 Overall Enterprise Governance
Strong Governance in a Nimble, Networked Organization?
Summary Notes on General Governance
17.3 Technology Governance
Sample IT Governance Charter
Technology Governance Philosophy – One Size Does Not Fit All
Empowered Technology Governance in Action: An Example
17.4 Key Takeaways
Chapter 18 Enterprise Architecture (EA)
18.1 Enterprise Architecture Layers are Interdependent
Mission and Vision Layer
Business Strategy Layer
Information Flow Layer
Data Architecture Layer
Application Architecture Layer
Technology Architecture Layer
Security Architecture Layer
Metaverse Technologies Layer
Special Consideration – SaaS
18.2 Example of Enterprise Architecture Use by an Organizational Unit
Discussion
18.3 Key Takeaways
Chapter 19 Infusing Nimbleness into the Enterprise Architecture
19.1 Nimbleness Infusion at Important Organizational Layers
Infusing Nimbleness at the Working Level
Infusing Nimbleness at the Middle Level
Infusing Nimbleness at the Top Level
19.2 Infusing Nimbleness into Enterprise Architecture Layers
Mission and Vision Layer
Business Strategy Layer
Information Flow Layer
Data Architecture Layer
Application Architecture Layer
Technology Architecture Layer
Security Architecture Layer
Metaverse Technologies Layer
19.3 Key Takeaways
Chapter 20 Central IT and the Metaverse Enterprise
20.1 Introduction
20.2 Background and Context – A Look Back
The Historic “Toss it Over the Wall” Issue
Shadow IT and “Departmental Cowboys”
Gaining Control Over the Problem Created by Shadow IT
Why the General Concept of Central IT Should Not Be Abandoned
New Roles for Central IT
Moving Central IT Services into the Metaverse Era
20.3 Key Takeaways
Chapter 21 Conclusion And Path Forward
21.1 Introduction
21.2 Phasing the Transformation
Step 1 – Infuse Knowledge of the Metaverse at the Highest Enterprise Levels to Gain Support for Possible Transformation.
Step 2 – Obtain Backing from the Board of Directors.
Step 3 – Perform Due Diligence and Make the Decision.
Step 4 – Establish Transformation Phase One Strategies and Goals.
Step 5 – Assign a Respected, Credible Team.
Step 6 – Launch the Transformation.
Step 7 – Continue the Effort Through Phases 2 and 3.
21.3 Importance of “In the Zone” Leadership for Transformation
21.4 Key Takeaways
Chapter 22 Case Study in Transforming to the Metaverse
22.1 Introduction
22.2 The Metaverse Transformation of Genesis Star Technologies
Company Profile
Realizing a Change in Direction is Essential
Gaining Support from the Board of Directors
Reviewing Progress
Initial Transformation Launch Plan (Phase One)
The Timeline
Results After Six Months
Phase 2 Launch
Results After Two Years
A Moment of Reflection
22.3 Concluding Thoughts on the Case Study
Making the Right Moves
22.4 A Fair Question
The Risks of Doing Nothing
Don’t Get Blindsided
Index
Preface
This book provides guidance on how organizations can respond effectively to a rapidly converging collection of advanced technologies, methods, and models often referred to as “the metaverse.” The arrival of the metaverse will likely lead to one of the most disruptive eras in modern history. We will see our personal, social, professional, and business lives change just as dramatically as we experienced with the arrival of the Internet, smart phone, and personal computer.
Metaverse technologies are emerging much more rapidly than most of us expected. Organizations around the world are being caught by surprise and are not sure how to react. We can see this clearly when we look at just one component of the metaverse, artificial intelligence (AI). The explosive emergence in 2022 of generative AI capabilities, like ChatGPT, provides a stark preview of what lies ahead for organizations. AI could, within a decade, transform most processes used within companies, as well as the products and services they provide. Most workers, from executive management to the learned professional ranks, to the shop floor, will be affected.
There’s more. Quantum computing is another rapidly emerging metaverse technology that could be just as disruptive as AI, if not more so. The combination of AI and quantum computing is awesome to contemplate and will have to be seen to be believed.
The challenge for all organizations is becoming clear: Adapt or perish. Inaction is not a viable option.
History has shown that some of the most challenging periods faced by organizational leaders have arisen during the hectic and confusing intervals between the maturing and stabilizing of one technological era and the emergence of the next. Many organizations are slow to react to these new disruptions. They struggle to find solid footing in the changing competitive landscapes caused by these disruptions. Some don’t survive the transition. This historical pattern is likely to be repeated as the metaverse era evolves.
However, history has also shown that a few leaders are able to detect early on the general nature of such a disruption, and they develop a quick appreciation for the potential opportunities. This allows them to move swiftly and boldly to embrace the disruption and profit from it. (Consider, for example, Jeff Bezos’s response to the Internet’s disruption.) These kinds of leaders realize the major shifts taking place in the technological landscape are making their current business models, which were designed for the prior era, outdated. So they adjust.
The critical challenge for today’s leaders, therefore, is how to lead their organizations through a timely and successful transformation to the metaverse so they can benefit from and not be sidelined by this latest technology revolution. They should be asking questions such as, “What enterprise qualities or attributes do we need to develop to survive and prosper in this new era? How quickly do we need to act? What are the most important initial actions?”
Among the critical attributes required for organizational success in the metaverse are enhanced agility, adaptability, and speed; a more streamlined, flatter, and networked structure and business model; and deep expertise in metaverse technologies and methods. To transition effectively into the metaverse and develop these attributes, there are three specific areas that should be addressed early on. These actions, which are discussed in detail in this book, should be taken before any large-scale attempt is made to incorporate specific metaverse-era technologies and methods into existing business models and technology strategies. All three actions are interdependent and must be addressed collectively and simultaneously. These actions include the following:
■Ensure the organization has a cohesive, technology-savvy, open-minded, and nimble enterprise governance structure in place. This includes the board of directors and the organization’s executive-level structure. Complex challenges, as well as compelling new opportunities, will soon be coming at these leaders in rapid succession. They need to be able to sense the opportunities and threats, and perform as a well-prepared, fast-acting, and unified team.
■Ensure that the organization has an updated approach to developing and using one of the most important tools for effective enterprise governance and strategic planning, a new-era “enterprise architecture” (EA). A new-era EA is one built on advanced metaverse technologies, such as AI and machine learning. This makes the EA more user friendly (more conversational), more relevant to more employees, and more easily managed and updated. Without access to such a comprehensive and robust central information repository and decision support tool, the complexity of the transformation challenge and the speed of change will likely overwhelm any transformation effort. For many organizations, the development of such an EA will be an overlooked focus area. They will ultimately have to pay the price.
■In parallel with other transformation actions, ensure that the organization has begun the transformation of the central IT services organization into a structure better suited to a highly agile, networked organizational model. In the metaverse era, central IT will require a new structure, new skills, and a new way of providing services. Therefore, it should begin its transformation in concert with overall enterprise transformation.
In addition to discussing these three action areas in detail, this book also discusses some of the most important metaverse technologies, concepts, and methods organizational leaders need to understand as they begin to map out their metaverse transformation plans. These discussions are followed by detailed chapters on the main elements of an effective enterprise transformation initiative, concluding with a detailed hypothetical case study that describes how such a transformation can be accomplished.
In summary, helping executives and other professionals chart an effective course to the metaverse is the central purpose of this book. The guidance provided by this book reflects over 45 years of professional and senior executive experience by the author in areas such as enterprise architectures, enterprise strategic plans, information technology roadmaps, enterprise transformations, technology gatekeeping, technology adoption and assimilation, and systems analysis and development.
ACKNOWLEDGMENTS
I want to thank Kat Regala for discovering me and for providing invaluable editing support. I also want to thank my editor, Jim Walsh, for encouraging me to write this book and for being so accommodating throughout the process.
W. Kimmerly
October 2023
BOOK OVERVIEW AND KEY CONCEPTS
INTRODUCTION
1.1 THE METAVERSE IS CLOSER THAN WE MIGHT THINK
In late 2022 and early 2023, the release of the AI-based generative bot, ChatGPT, became an instant international phenomenon. It was followed quickly by the release of many similar products by companies such as Meta and Salesforce. Early users were amazed by what this technology was able to do. To many, it seemed almost human in its capabilities, and in some respects, such as speed and breadth of information, it was vastly superior to humans. The range of applications to which this technology was applied was extensive, touching all major industries within a short period of time.
But as impressive as these bots were (and are), flaws in the initial models soon became apparent. For example, sometimes they would cite references, such as legal precedents, that they had simply made up. These lapses were called “hallucinations.”
The awesome power of this technology soon began to concern many, including government officials, influential industry observers, sociologists, and technology experts. For example, there was concern over the possibility that artificial intelligence (AI) could transform entire industries, maybe even economies, and cause millions of people to lose their jobs, all before anyone was even remotely prepared for these kinds of consequences.
There was also concern about the use of AI for dangerous and nefarious purposes, such as fake podcasts, videos, and new stories presenting famous people in compromising, humiliating, or damaging situations. Even though these fake uses were contrived and completely false, many observers considered them to be absolutely real. Could this technology make it almost impossible to separate fact from fiction in the future, and if so, what could be the consequences?
These concerns led many governments and renowned business and technology luminaries to call for a moratorium of six months to a year on the development and use of AI technology. This time was needed, they said, for the tech industry to get a better handle on the technology and establish safeguards to prevent its misuse.
However, even in light of all of these issues, ChatGPT remained one of the most important tech stories of 2023 and an endless source of fascination for millions, including thousands of organizations that have already put this technology to productive use. As has been true for many other tech innovations, the expectation is that this technology will continue to improve over time, adding new capabilities and resolving early issues and limitations.
AI is not new, of course. The concept of AI has been researched and discussed for decades. In fact, the basic technology was already in use in applications for years (Siri, for example) before ChatGPT appeared. Until then, most of us had underestimated how developed technologies such as AI and machine learning were, how rapidly they were evolving, and how deeply disruptive they would be.
More to Come
As important as it is, AI is only one component of a much larger collection of rapidly converging technologies that many are calling the metaverse (see Figure 1.1). Just as people were surprised by ChatGPT, organizations run a high risk of being blindsided by the speed and impact of the collection of metaverse technologies now bearing down on them. Unfortunately, organizations will not be able to demand a twelve-month “metaverse moratorium” to allow them to study the metaverse and get better prepared for such a major disruption. Therefore, the time to prepare for the metaverse is now. The purpose of this book is to provide guidance on how this can be done.
FIGURE 1.1 Converging technologies are driving the metaverse.
1.2 THE METAVERSE: AN OVERVIEW
Research by leading industry analysis firms has revealed a growing global business interest in the metaverse and the expectation that by the middle of the 2020s metaverse technologies will have significant influence of the daily lives of people around the world. [Accenture23]
No Consensus Definition
There is no widely accepted or sanctioned definition of the term “metaverse,” although there are numerous suggested definitions and descriptions. A typical description goes something like this: The metaverse is a converging collection of technological innovations that are providing highly immersive 3D experiences and blockchain-based solutions to users via a next generation Internet. For the purposes of this book, the term metaverse is meant to convey a broader reality. For example, many have suggested the metaverse is already establishing the basis for Industrial Revolution 4.0. If that is true, and to some extent it probably is, the metaverse is not only about immersive technologies. The concept also includes the business and societal advances these technologies are enabling, such as new business models, new technology-based solutions, new forms of social interactions, a new era of scientific breakthroughs, new industries, and even new economies, much like the Internet economy that was formed with the advent of the Internet. These sweeping changes in their totality is the real reason almost all organizations should be planning now to transform to the metaverse.
Two Important Attributes
Much of the focus of the metaverse centers on the central theme of replacing today’s “flat” Internet, with its 2D text, video, and other images, with one that is 3D in nature, highly decentralized, and deeply immersive. This new version of the Internet is often referred to as Web 3.0. Experts are confident Web 3.0 will be as disruptive when it arrives as were the emergence of Web 1.0 and Web 2.0.
Another essential feature of the metaverse will be the further blending of our digital and physical worlds. This means we will see users interacting increasingly with technology from inside an application rather than from the outside looking in. As a result, the technologies and methods that comprise the metaverse will transform, in fundamental ways, how we experience and interact with our environments, both business and personal. Many of the constraints now imposed by physical locations will be lifted as 3D reconstructions of objects, including humans, can be located or co-located with other physical objects almost anywhere. It follows that these changes will have a significant impact on the way companies design and conduct their business operations.
Current Status of the Metaverse
Just as there is no generally accepted definition of the metaverse, there are a variety of perspectives concerning when the era began, where it is presently positioned on its evolutionary path, and how long it will remain relevant before being displaced by the next technology wave.
One of the more widely-cited timelines of metaverse evolution is offered by Gartner Inc., which hypothesizes a three-phase evolutionary path. (See, for example, the May 11, 2022 article by Shawn Johnson titled How the Metaverse Will Evolve, which breaks down the Gartner timeline. [Johnson22]) As the metaverse evolves through these various phases, consistent with the historical seven to eight-year life cycles of other major technological innovations, the next technological era (perhaps “The Quantumverse”), will most likely have begun.
Overall, the general consensus is the metaverse era is well underway in certain critical areas, like AI, machine learning, and augmented reality, and will probably establish its position in industry as a bona fide new era by 2026. It could maintain that position for a decade or more, which is a relatively long period for any dominant technology era to prevail. If the metaverse era has already begun, organizations need to pay close attention to it now. Many organizations are already playing catch up.
The converging technologies that are defining the metaverse, as well as current-era technologies, such as AI, the cloud, mobile, and the Internet of Things, are already being assembled into platforms having the power, speed, and intelligence to solve problems that were previously considered too difficult to tackle. Technological innovations like quantum computing and AI enable tests and experiments to be conducted in a fraction of the time required using older technologies and methods. This can shorten some research projects by years. In addition, these newer technologies and algorithms are able to process vast quantities of structured and unstructured data quickly, leading to more lifelike and realistic experiments.
The scope of metaverse applications already in production use is impressive. A few categories include oil and gas exploration and extraction, healthcare, medical training, games, working environments, tourism, real estate, education, fashion, shopping, and social networks/entertainment. In addition, as the convergence process continues, especially as quantum computing continues to mature, organizations will be able to take on some of the grand challenges of our time in such areas as medicine, climate change, rising sea levels, energy, fresh water scarcity, and agriculture.
Therefore, even without an accepted, formal definition of the metaverse, we can already see its major contours. We can foresee an era wherein converging technologies, such as AI, machine learning, virtual reality, augmented reality, edge computing, and quantum computing are being used to better integrate our physical and digital (or quantum) worlds. We can see this, for example, in 3-D virtual and augmented reality environments. These environments can be used for entertainment, business, engineering, and scientific purposes. In this new environment, we will soon be able to conduct business, visit remote locations, and access educational opportunities in environments mediated by technological advances in new and immersive ways.
Not Without Its Challenges
As is true for all new technological eras, some negatives always accompany the positives. For example, as each major new era begins to exert its influence, jobs can be eliminated, businesses and even entire industries can become obsolete, people can experience psychological problems, new forms of crime often emerge, and societal behaviors change. The metaverse is not likely to avoid these kinds of issues. Already, even before the metaverse and all of its vivid and immersive reality fully arrives, there are large numbers of people addicted to computer games, cell phones, and social media, sometimes to the detriment of their physical and mental health. Much has been written about the correlation, even causation, between social media and rising mental health problems among teenagers. Some people lose the need for any real social interactions at all because real ones no longer seem as interesting, exciting, or rewarding as the virtual ones. We can only imagine the potential risks segments of society will face as these virtual experiences become even richer and more vibrant and lifelike.
We can also envision the metaverse increasing the digital divide that already exists. No one has a clear picture of the costs that might be entailed in gearing up to take advantage of the capabilities offered by the metaverse. Even with the steadily improving price-performance curve for digital technology, the cost to participate in the metaverse might prove prohibitively expensive for many in society, which would in turn raise serious ethical and fairness concerns for some governments. For example, what if certain segments of society are able to obtain far superior healthcare and live longer lives through the use of advanced metaverse technologies, while other segments cannot afford the use of these methods? This same condition might be an issue for education as well. Numerous serious public policy issues could arise, and probably will, in a variety of areas.
As is true with all technological advances, thieves, hackers, and other lawbreakers will very quickly find ways to leverage these advances for their own purposes. There are likely going to be unpredictable holes in the technology where personal privacy can be breached. We have to be mindful of the degree to which the daily life of individuals might become available to overzealous organizations (marketeers, solicitors, pollsters, and retailers) in the metaverse. This goes far beyond the simple shopping profiles and cookie-tracking issues of today, and might easily get into the more esoteric areas of illicitly capturing brain waves, body movements, and eye movements in response to, for example, viewing certain online ads.
History of Changing User Relationships to Technology: From Remote to Immersive
As noted earlier, one of the more important aspects of the metaverse phenomenon relates to how users have interacted with technology during different eras over the past several decades and how they will interact with it in the future.
For example, as shown in Figure 1.2, we can begin by going back to the early days of computing technology, say the 1950s through the 1960s. This was an era when mainframes were the primary types of computers available, aside from mechanical tabulating machines. In those days, the direct beneficiaries (or “users”) of the computing power of mainframes were completely remote, both physically and conceptually, from the actual computing action. All of the computing process steps and related people and equipment were typically housed away from the general public.
FIGURE 1.2 The gap between users and technology continues to narrow.
Figure 1.2 shows that, after a transitional period of rudimentary networking of “dumb” terminals in the 1970s, the 1980s brought us the personal computer (PC) revolution. At that time, users were beginning to have more direct interactions with computing technology. PCs were typically placed on users’ desks or on tables at work or at home. There was associated with this form of technology an immediate, tactile connection between the user and the technology via a mouse, keyboard, or by touching the PC’s screen. Not long afterwards, laptops and tablets arrived, so users could carry the computing technology wherever they went.
Even with the increased availability and usage of PCs and laptops, users were still conceptually distant from technology. Basically, the doors to the mainframe rooms had been opened partially, and users had more direct access to, and control over, computing assets. However, there was still a functional distance to be closed. Users were not yet immersed in technology. That was about to change.
Technological advances in the 1990s and early 2000s, most notably the Internet, smartphones, and social media, changed major industries, most businesses, and the daily lives of billions of people. The combination of these technological advances began the process of surrounding people with technology, often on a 24x7 basis, both in their work lives and their social lives. Today, countless people live good portions of their daily lives encapsulated by Facebook, Twitter (recently rebranded as “X”), texts, email, and other social media, including being attached to their smartphones as if they have become bodily appendages. A substantial portion of consumer commerce has been increasingly carried out over the Internet, via Amazon for example. To live in the industrialized world in the early 21st century was to be surrounded by, and to some degree immersed in, technology.
Now, another disruptive change is coming, one that will be even more immersive for users of technology. This includes both direct users and indirect users (those who will be affected by technology, despite no direct action on their part). That change is, of course, what is now being called the metaverse. In this new era, the kinds of connections users have with technology will be even more personal and immersive.
For example, assume you have always wanted to visit the Louvre in Paris, but could never make that happen. Of course, you can visit the museum in a 2D way via books and images on a computer screen. However, that is a limited experience. In the metaverse, the expectation is that the Louvre experience can be brought to you in 3D imagery so vivid it is almost like being there. You will be able to walk around and explore the exhibits just like any other visitor. You will have left your physical world and entered a virtual world. You will have become fully immersed in this technology-based environment and yet be completely oblivious to the technology. In this example, all you will see is the museum and its contents. You will also be able to hear realistic background sounds, just as if you are actually there. You can easily imagine how this one metaverse solution model could affect industries such as travel, hospitality, museums, electronics, and real estate.
Medical training serves as another metaverse immersion example. Medical students typically obtain 2D information from books, computer screens, classroom presentation images on larger screens, and even chalkboards and white boards. However, to fully understand how the body functions, medical students have traditionally been assigned cadavers to work on. While cadavers do provide an immersive experience for medical students, this practice is expensive and cumbersome for hospitals and medical schools. In the future, cadavers will most likely take the form of 3D reconstructions of real human bodies that can be used over and over endlessly without suffering any damage. For medical students, this will be an engaging experience, not only because the 3D reconstruction provides vivid imagery but because it also allows students to experience, or “feel,” physical sensations through advanced haptic technology. As students become fully immersed in working on these digital reconstructions, there will be no real sense of working with technology at all, but one of working with a real body. In a true sense, their physical and digital worlds will have been blended. Several universities and some major hospitals are already doing work in this area.
Staying within the medical realm for another example, consider what it might be like to have a 3D reconstructed avatar or hologram of your own body. Then consider having that avatar populated with your own medical data, vital readings, and medications. Working closely with your physician, either in a medical facility or from home, you would be able to diagnose problems, in an AI-aided way, and observe the effects of various treatment options. There are already countless professionally-refereed medical and scientific papers on the general topic of 3D reconstruction applications in medicine, such as Detailed 3D human body reconstruction from multi-view images combining voxel super-resolution and learned implicit representation [Li et al.22].
1.3 THE POWER OF TECHNOLOGICAL CONVERGENCE AND SYNTHESIS
When the major technologies in widespread use today (e.g., the Internet, mobile, and cloud computing) first emerged, they soon converged with each other and with older technologies in highly synergistic ways. As this happened, we were able to see the pace of change quickening, with the intervals between “a new normal” becoming shorter. This pattern is expected to continue as we move into the metaverse. This means many organizations, especially those that are less nimble and resilient, could soon find themselves attempting to compete in an environment for which their existing business models were not designed.
The powerful impact of the technology convergence process cannot be overstated. Consider the game-changing innovations that have already emerged from the technological convergence phenomenon. For example, the smartphone was basically the result of converging into one platform other well-established technologies at the time, such as software algorithms, a mobile phone, an MP3 player, a camera, and an Internet connection capability. The resulting converged product changed the way most of the world communicated, took photographs, accessed the Internet, and listened to music. It also provided a new opportunity for entrepreneurs around the world. Some have used the smartphone to start new businesses or upgrade and extend or enhance their existing lines of business. New livelihoods were created for countless app developers. There is a strong likelihood the converging technological innovations driving the metaverse will have similar impacts on the world.
1.4 AN IMPORTANT NEW PHASE OF THE DIGITAL AGE
Many of the highly disruptive technological innovations we take for granted today were once poorly understood and often dismissed initially as passing fads. These groundbreaking innovations have evolved over the last several decades through a series of fairly distinct eras or phases (e.g., “the PC era”). As each new phase emerged, a corresponding “zone of disruption” also emerged. These disruptive zones overlapped the intersections between older, more established technology eras and the new phases (see Figure 1.3).
FIGURE 1.3 Major technological eras create zones of disruption.
During these periods of disruption, the leaders of organizations face numerous important questions, most of which at the time have no clear-cut answers. Examples include the following:
• Is this new technology real or just another buzzword?
• Will it affect us, and if so, how?
• How do we bridge the gap between what we already have in place and these new products and technologies?
• How fast should we move, if at all, and in which directions?
• Who can we trust to advise us?
• How will this affect our employees? What are the training implications? Do we need to hire new people with new skills? How many? Which skills? When?
As we examine the timeline in Figure 1.3, we can see how most organizations have been operating in what has been called the "digital age" for at least four decades (dating back to the 1980s, when the term first gained popularity). In fact, many organizations today say, often with justifiable pride, they have achieved “digital maturity.” In other words, they have caught up with the latest digital technology advances and have mastered their use. However, the digital age is an ever-evolving and steadily accelerating phenomenon. Therefore, digital maturity achieved in the past, even the recent past, might mean little going forward, especially as we enter the latest zone of disruption, the metaverse.
As organizations work their way through this next disruptive phase of technological evolution, most will find the nature, scope, and velocity of the changes they encounter will disrupt their current business models. We are already seeing that in the sudden emergence of the AI component of the metaverse. This means the leaders of most organizations will require changes in their perceptions about how best to blend technologies (old and new), capital resources, and people into new organizations capable of competing in the metaverse. As explained throughout this book, this process of adaptation will require a much higher level of nimbleness and adaptability than most organizations now possess.
For example, as this newest wave of converging technologies is adopted by organizations, many work functions now performed by humans will become either substantially or fully automated. For many organizations, this will mean displacing human workers. This process will work its way gradually up the organizational structure from mundane functions and tasks to increasingly sophisticated job roles, affecting the realm of professionals and white collar workers. Enterprise governance must understand how these advances will be viewed in different ways depending on the organizational level of the viewer. Executive managers could be enthusiastic about taking advantage of them, while front-line workers could understandably be much more concerned and apprehensive.
Companies will not be deploying metaverse technologies simply to save money. They will apply technologies, such as AI, to design and operate businesses in fundamentally new, nimbler, and adaptive ways. From a business strategy perspective, the more functions that can be automated, either partially or completely, the easier it will be to link organizational functions into truly wired organizations that possess the nimbleness, speed, responsiveness, and autonomous operational capabilities necessary to compete in the metaverse and beyond.
Therefore, the timing and scope of the approaching metaverse zone of disruption elevates the enterprise digital transformation challenge to a new level of urgency. Individuals and organizations that want to become productive participants in this new era need to be preparing now.
SIDE NOTE:The terms “digital” and “digital technology” are used throughout this book, although it is possible, maybe even likely, that the “digital era" will end sometime during the next decade. Why? A classical digital computer calculates via transistors, which can represent either a zero or a one, and only a zero or a one. This is the “binary digit” that gave rise to the term “digital.” However, an immensely faster and more powerful quantum computer calculates with qubits (“quantum bits”), which can represent a zero or a one or both a zero and a one or anything in between. In addition, quantum computers can execute multiplecommands in parallel, whereas digital computers process instructions in sequence, one at a time, making quantum computers vastly more powerful. We do not know what identifying term will arise after the digital era ends and some new calculating technology, whether quantum or something else, will become the public face of the next revolution. For now, the term “digital” is used in this book.
1.5 ENTERPRISE TRANSFORMATIONS IN THE METAVERSE ERA
The path forward for organizations seeking to transform to a metaverse state of readiness consists of two major phases which must, for the most part, be performed in sequence.
Phase 1 entails all of the actions necessary to elevate an organization’s nimbleness, responsiveness, quickness, and capacity for innovation. These capabilities must be raised to levels compatible with the velocity of change and the kinds of competitive forces we are likely to see in the decade of the 2020s, such as we saw in the sudden AI phenomenon. A substantial portion of this book is focused on how to achieve these agility goals.
Phase 2 involves the disciplined selection and adoption of specific metaverse technologies and methods based on the unique business needs of the enterprise. Some organizations will have to move faster than others in this regard. In general, this phase consists of the logical steps of (1) assessing carefully where any of the various metaverse technologies might be of strategic or tactical business use in the organization, and (2) conducting pilot projects, performing benchmarks, and taking other simple initial actions to ease prudently into metaverse technology assimilation.
Therefore, as the metaverse era continues to emerge, organizations that want to embrace its possibilities must take a fresh look at their strategic and operational decision-making processes and business models as the first order of business. The three most critical, high-leverage places to start are
• the organization’s existing enterprise governance structure and methods, including its corresponding business model and organizational structure. If the leadership of an enterprise is not highly nimble, fast, and innovative, the organization as a whole cannot sustain these attributes.
• the current state of an organization’s enterprise architecture planning framework (if it has one). This is the central planning and orchestrating heart of an enterprise where AI and other advanced technologies are applied in ways that allow the organization to function in fast, nimble, and accurate ways.
• the organization’s current central information technology (IT) services model. This critical function must be redesigned and repopulated with the skills critical to maintaining a metaverse-capable enterprise.
Addressing these three areas effectively is basically the price of competing in the metaverse. These steps will not in themselves get an organization there, but they will give it a chance to get there. Each step is discussed in detail in this book.
What will need to change through an enterprise transformation process for a traditional organization to become better prepared to compete in the metaverse? Table 1.1 summarizes some of the most important changes.
TABLE 1.1 Key change factors for metaverse readiness
Change FactorTraditional CompanyMetaverse-Capable CompanyOperating PhilosophyExcel ethically in delivering exceptional products and services in today’s digital era using today’s digital technologiesExcel ethically in delivering exceptional products and services in the metaverse era using newer metaverse technologies and methodsGovernanceGoverned from the top by the senior executive suiteEmpowered governance with delegated decision authorityStructurePredominantly a vertical, hierarchical structure with a large middle layerPredominately a networked structure with a smaller middleBusiness ModelDesigned for success in today’s markets and related competitive dynamicsDesigned for success in metaverse markets and related competitive dynamicsOfferingsBased on current technologies and consumer attributes and preferencesBased on metaverse technologies and expected changes in consumer attributes and preferencesSkill SetsTraditional focus, with a more specialized skill set per employeeMetaverse focus, with a more diversified set of skills per employee (a more adaptable workforce)Culture“Change is our enemy.”“Change is our friend.”AlliancesLimited and traditionalExtensive and innovativeIT ServicesCentralized and staffed with current digital technology skillsNetworked, distributed, and staffed with metaverse skillsEnterprise ArchitectureLimited and plays ancillary roleRobust and plays vital central roleEnterprise Digital Transformations Have a Poor Record of Success
Over the past decade, most senior executives have understood the need for their organizations to embrace digital technologies in ways that increased their nimbleness, overall performance, and innovative capacity. Formalized responses to this challenge have often been referred to as “digital transformation” initiatives, with the goal being a state often described as “digital maturity.” However, research by leading management consulting firms has found that only a small percentage of these efforts ever prove to be successful. [Robinson19].
These persistent transformation failures have left countless organizations stranded between suddenly unsustainable business models of the past and the more innovative and nimble models needed going forward. There are many reasons for this lack of digital transformation success, in addition to the inherent difficulties faced in any significant organizational change effort. These reasons include the following:
• The absence of sustained executive level interest, participation, consensus, and leadership in digital transformation efforts
• Viewing a digital transformation as a project that can simply be layered onto an existing enterprise (where it must compete for resources and priorities), rather than a commitment to infusing true transformational changes and nimbleness granularly throughout the enterprise
• Insufficient staff expertise in key emerging digital technology areas, such as – relative to the metaverse disruption, for example – AI, augmented reality, machine learning, quantum computing, edge computing, and blockchain
• Stubborn resistance to change embedded deeply in most organizational cultures
• Failure of enterprise governance to delegate important decisions and actions to lower-level executives, thereby slowing transformation progress and giving oxygen to negative forces seeking to stall the effort
• Continued executive focus on short-term cost savings rather than longer-term strategic gains
• Negative commentary from a few influential resident gurus whose expertise and prestige are grounded in the current technological era, not the emerging one (akin to the “not invented here” syndrome)
• Lack of a well-articulated, enterprise-wide representation of the expected real-world benefits of the envisioned new business model (i.e., failing to communicate effectively and systematically how the projected changes will clearly make things better for specific stakeholders in specific situations)
For organizations seeking to transition effectively into the metaverse, these issues must be overcome in a timely way. Modest and slow incremental changes at the margins of an enterprise, a common approach to so many current digital transformation efforts, will not suffice. Events are moving too quickly and are too profound for leisurely and narrowly focused transformation actions. To meet the challenges inherent in this new disruption, a level of commitment to transformation not commonly seen among today’s organizations will be required.
The kinds of changes companies will be required to make in a metaverse transformation could alter the core foundation of the enterprise, perhaps requiring a reset in its governing philosophy and operational strategy. This is because all companies today are to a substantial degree software companies. [Gnanasambandam et al.22]. That is, they are built on and driven by a structured collection of algorithms and supporting technologies. For most organizations these software systems are based on today’s digital technologies. However, the trend is moving steadily toward the use of metaverse-era technologies. Innovative technologies and new capabilities will require new ways of thinking about software-intensive organizational models and revised approaches to software development and use.
Timing is Vital
The question of whether such phenomena as AI, quantum computing, virtual reality, and augmented reality will disrupt conventional business models is not a matter of “if” but “when.” As slower organizations continue to struggle with their existing, traditional digital transformation efforts, new digital and quantum innovations continue to advance and converge all around them in powerfully synergistic ways. This means many companies are actually losing ground despite having, at least nominally, digital transformation efforts underway. In other words, too many organizations are still busy fighting the last war (e.g., still wrestling with cloud adoption strategies, while paying less attention to such technologies as AI, augmented reality, machine learning, blockchain, and quantum computing).
In the metaverse, change cycles will be shorter than today. Periods of intense turbulence are likely to increase. Competitive environments will be reshaped repeatedly. Consumers will be more demanding, better informed, and often fickle. Unexpected and unpredictable events, like the COVID pandemic, wars, or the collapse of financial markets, will continue to occur.
What all of this means is that most organizations in most industries are going to have to become much nimbler in responding to fast-changing conditions if they want to be successful in the coming decade.
Therefore, the overriding strategic choice for most companies is simple. Will they investigate and adopt (in a timely way) the appropriate metaverse-era technologies and concepts that can help them remain competitive? Or will they be sidelined by them? If companies do choose a timelier and more proactive metaverse technology assimilation and transformation strategy, how fast do they need to move, in which directions, and via what mechanisms? This book seeks to help organizations answer these questions.
1.6 INCREASED NIMBLENESS AT ALL ORGANIZATIONAL LEVELS
Throughout this book, an important watchword is “nimble.” This is one of the key organizational attributes required for success in what promises to be a dynamic and challenging, yet opportunistic, metaverse world. Organizational nimbleness suggests a structure, business model, and culture where the following attitudes and attributes prevail:
• Quick and decisive rather than slow and halting
• Bold rather than hesitant
• Smaller rather than larger
• Decentralized and empowered rather than centralized and tightly controlled
• Flatter rather than steeper
• Networked rather than hierarchical
• Continuous learning rather than episodic
• Lean rather than bloated
• Open rather than closed (to facilitate alliances, for example)
• Change embraced rather than avoided
• Open minds rather than closed ones
The challenge organizations now face is how to take advantage of converging technological innovations to infuse the kinds of attributes listed above throughout the organization. As discussed in Chapter 19, the infusion of nimbleness into the enterprise should be done at all levels, from the most senior executives to the lowest-level company functions. There are abundant opportunities at all levels to make various organizational processes, workflows, business rules, value streams, functions, information flows, teams, and individuals nimbler and more efficient. The technologies that are now defining the metaverse era will certainly open up a multitude of additional opportunities for enhanced nimbleness.
1.7 THE PIVOTAL ROLE OF A NEW-ERA ENTERPRISE ARCHITECTURE
As organizational leaders consider ways to make their organizations more streamlined and nimbler, they will find opportunities to do so within organizational functions at all levels. The number of opportunities will grow quickly as an organization launches the sustained analytical processes associated with transforming an organization from its current state to a metaverse-ready state. The challenge will be how to capture, organize, and blend this continuing stream of ideas and proposed solutions, both strategic and tactical, into a cohesive, prioritized, well-sequenced, and easily accessible transformational game plan. To meet this challenge, the governance structure must commit to the development and use of a modern, technology-enabled, enterprise-wide planning framework and knowledge repository. Otherwise, the challenge will become overwhelmingly complex. This framework is typically referred to as an enterprise architecture (EA). The general structure of a representative EA is discussed in Chapter 18.
1.8 HOW THIS BOOK CAN HELP
This book provides a high-level conceptual plan for transforming a contemporary organization into one that can perform effectively in the metaverse. A detailed case study showing how a hypothetical organization might achieve this goal is provided in Chapter 22.
The general steps required are simple in theory, although quite challenging in execution. They include the following:
• Ensure you have a unified, fast-reaction board and C-suite committed to staying the course and navigating the twists and turns associated with a complex digital transformation.
•
