The first management consulting company Arthur D. Little, was established in 1886. ADL runs nearly 46 offices globally, services the majority of the Fortune 1000 businesses in addition to other top companies and public sector organisations, and specializes in linking strategy, innovation and transformation with technology-intensive and convergent industries.
Arthur D. Little recently launched its report called "WEB3 & METAVERSE-THE RISE OF THE NEW INTERNET & THE INDIA OPPORTUNITY" and the speakers at the launch event, Sanchit Sachdeva, Senior Business Analyst and Pankaj Mann, Management Consulting at Arthur D. Little spoke with Voice n Data on The Metaverse beyond fantasy, its opportunities, use cases, industries, expectations over the next few years, challenges and much more. Here are some excerpts from the interview:
How do you think Metaverse is transforming enterprises when it comes to the Indian scenario? What are some of the major examples presently seen in Indian context.
Pankaj Mann: One of the significant use cases of the Metaverse is found in the industrial metal space, specifically with the concept of digital twins. Currently, in this industry, there are numerous transmission lines, power plants, and generators that require constant monitoring and maintenance, often involving engineers and personnel working night shifts. The concept of Industry 2.0 emerged after the Industrial Revolution, followed by Industry 3.0 and Industry 4.0. Digital twin technology plays a crucial role in this context by enabling virtual monitoring and control of these systems. For instance, instead of physically enduring the extreme heat of May and June in a solar power plant in Rajasthan, individuals can remotely monitor and manage operations from the comfort of their offices within a virtual environment. Companies like Nvidia are actively involved in this field, providing Metaverse platforms for industries to create digital twins of their technologies. This technology extends beyond power infrastructure and can also be applied to automated manufacturing facilities, minimizing human presence to primarily monitoring tasks. Through simulations and virtual interactions, users can manipulate and optimize these systems.
On the consumer side of the Metaverse, brands such as Polygon and Flipkart have collaborated to enhance consumer interactions. By creating virtual spaces where customers can engage deeply with brands, it offers a new and immersive brand experience. For example, soap or confectionery brands can provide a gamified environment for customers to explore and interact with their products. This demonstrates early examples of establishing product-market fit within the Metaverse.
Additionally, the Metaverse has the potential to revolutionize online communication. In traditional video calls, spatial organization is limited, making it difficult to discern who is speaking when multiple individuals talk simultaneously. However, the Metaverse provides a spatially organized virtual environment, akin to being at a roundtable discussion. This feature enables users to distinguish voices coming from specific directions, enhancing the quality of virtual interactions. It also has practical implications for global collaboration, reducing the need for long-distance travel and associated costs and carbon footprint. By replicating offline meeting environments, the Metaverse offers a promising solution for conducting efficient and immersive virtual meetings.
These are just a few early use cases that are emerging and transforming various industries and enterprises in the country.
Talking about companies using these early use cases like you mentioned, talking of Web3 and Metaverse possibilities in India, what are the industries of major focus currently?
Pankaj Mann: When discussing the possibilities of the Metaverse in India, it's important to consider the industries that are currently the major focus. According to the report, the retail sector, particularly the smaller MSMEs (Micro, Small, and Medium Enterprises) and sellers, are expected to be early adopters of the Metaverse. This is primarily due to two factors. First, the NDC (National Digital Commerce) initiative aims to shift market share from larger marketplaces to smaller players. Second, the digital experience offered by the Metaverse can address the significant cost incurred by companies when customers try on multiple items and return a majority of them. By providing virtual trials, this cost can be reduced, leading to improved productivity and significant savings for these companies. Additionally, customer service can be enhanced, allowing customers to save time and make better-informed purchase decisions by virtually trying on clothes, for example.
Another aspect to consider is internet penetration and its evolution. Retail was one of the first sectors to embrace the current internet, as it eliminated the hassle of physically going to a mall and allowed for easy online shopping. Trust-building efforts by companies like Flipkart and Amazon played a crucial role in this shift. Following retail, the finance, telecom, and energy sectors embraced the digital world. For instance, in the energy sector, the Metaverse can provide virtual experiences and interactions, reducing the need for physical visits to banks and improving transaction efficiency. While mobile banking has gained traction, there is still a preference for in-person interactions, especially in tier two and tier three cities. The adoption of virtual environments for interactions with bank representatives could bridge this gap and enhance the banking experience.
The media sector is another area where the Metaverse holds promise. The rise of NFTs (Non-Fungible Tokens) is revolutionizing copyright ownership and distribution. Content creators now have the power to directly link copyrights to their creations, such as music. Platforms like Spotify have provided a means for artists to launch their music, but with NFTs, content creators can sell ownership rights of their songs directly to fans, eliminating the need for intermediaries like record labels. This transfer of power empowers content creators and offers new opportunities in the media industry.
In summary, the retail sector leads the way in adopting the Metaverse in India, followed by finance, energy, and media industries. The potential for cost savings, improved customer experiences, and enhanced efficiency are driving these sectors to explore the possibilities of the Metaverse.
India has recently launched 5G. Do you think India has created or is creating an acceptable 5g ecosystem? And Will 5g be able to provide the bandwidth needed make Metaverse a success?
Sanchit Sachdeva: You need to understand the evolution of the internet to grasp its current state. Initially, internet browsing consisted of basic HTML pages with plain text. Eventually, images were introduced, although they loaded slowly due to limited internet speeds. However, with the advent of faster internet connections, the quality of graphics and overall online experience improved significantly. For example, with the introduction of Jio in India, streaming YouTube videos became commonplace, and music downloads were replaced by online streaming. The internet has brought about remarkable changes, but it still lacks the capability to efficiently transfer high-resolution videos and AR content. Nevertheless, the underlying technology exists, and developers are working on harnessing its potential. With the impending arrival of 5G internet, we can expect further advancements. Just like how we couldn't have imagined having internet access on our mobile phones when BSNL initially introduced internet services, the landscape has drastically changed. Today, we can acquire 2GB of data for a mere 25 rupees. As 5G becomes more affordable and accessible, every citizen, including students and senior citizens, will gain access to its benefits. Financial institutions will be among the first to utilize the advantages of 5G, followed by wider adoption in gadgets and devices. Additionally, the cost of AR/VR headsets will decrease over time, making them more accessible and user-friendly. Eventually, people will be able to experience the metaverse using their existing eyewear or other affordable devices. Just as mobile phones were initially expensive but became accessible to all, the same will happen with 5G connectivity. Its deployment will gradually expand throughout the country, paving the way for high-speed access to the metaverse.
Every new reality comes with its own challenges and complications. With metaverse, what what do you think is the major challenge?
Pankaj Mann: Let's talk about data privacy, and I'll provide a simple example of how governments worldwide are addressing this issue. During a recent World Government Summit, I explored potential applications for the government in relation to the metaverse. Consider Google Maps on your phone. When using it, you see a red, orange, or blue line indicating traffic conditions. However, the metaverse has the potential to transform this experience. Imagine you're driving on a highway, and the metaverse provides a digital overlay where you can see real-time information about the vehicles around you. Instead of just seeing a line, you would know that there are five cars in front of you, including a Renault and a BMW. This level of awareness is not only beneficial for individuals but also for governments aiming to optimize traffic management and infrastructure planning. While data privacy concerns have been raised, governments are actively pushing for smart metering, energy management solutions, and other frameworks that enhance affordability and accessibility. It's clear that the metaverse is the way forward, and governments are proactively defining legislation and regulations to govern its use. In the event of any wrongdoing, such as financial fraud, governments like the Reserve Bank of India (RBI) are taking proactive steps, such as launching their own digital initiatives. Governments worldwide are working diligently to address these concerns and ensure a secure and regulated environment within the metaverse.
Will Metaverse magnify security issues that are already so significant and do you think that the regulators are ready for Metaverse?
Sanchit Sachdeva: Regulators have historically taken a reactive approach to emerging technologies and issues. For instance, cryptocurrencies have been in existence for several years, but official stances on them were only established recently. The same pattern can be seen with privacy laws, where reactions to incidents like Twitter data breaches prompted action rather than proactive measures. It's crucial to shift towards a proactive approach, where regulations are developed hand in hand with technological advancements to protect user privacy and other important aspects. This proactive approach would also encourage investments in infrastructure, ensuring that control over the internet is not solely in the hands of those who currently dominate it. Another essential factor is the availability of devices that enable immersive experiences. While the metaverse can function on current TV screens, the promised level of immersion requires AR/VR devices. Making these devices more accessible and affordable will drive the desire for users to embrace the metaverse fully.
Sanchit Sachdeva, Senior Business Analyst
Pankaj Mann- Management Consulting