The Metaverse for Business - John Beaman - Elevare Club

This video provides an in-depth exploration of digital transformation and the emerging business applications of the Metaverse, featuring John Beaman, SVP of Elevare Club. Beaman, who holds an MBA and a certification in Digital Transformation, discusses how his company helps small to medium-sized businesses (SMBs) transition from analog processes to a digitized world, embracing technologies like websites, computerization, machine learning, and a presence in the Metaverse. The discussion highlights the critical need for SMBs to adopt advanced technologies to optimize back-office operations, enhance customer experience, and ensure long-term sustainability, addressing the high failure rate among businesses that neglect these areas.

The conversation delves into the core concept of digital transformation, illustrating it with the example of the insurance industry moving from paper-based processes to fully integrated digital systems utilizing AI and machine learning for predictive analytics, CRM integration, and the Internet of Things (IoT). Beaman emphasizes that digital transformation is about greatly enhancing connectivity, effectiveness, and efficiency, driving down costs, increasing productivity, and simplifying the customer experience. He posits that anything is possible with software, leading to exciting opportunities but also raising ethical questions. The discussion then pivots to the Metaverse, asserting its impending mass adoption within 3-7 years, evidenced by 57 million VR hardware sets already in use in the US.

A significant portion of the video focuses on the practical applications of the Metaverse for business, particularly virtual officing and networking. Beaman explains how immersive VR technology can combat "Zoom fatigue" by creating a more engaging and connected virtual environment for remote teams, facilitating collaboration and relationship building. He also touches upon the concept of digital real estate, stressing its utility-driven nature rather than purely speculative investment. Elevare Club, for instance, is building its own VR platform tailored for SMBs, aiming to provide specific business functions and integrate AI to simplify the learning curve for technology adoption. The conversation further explores related technologies like blockchain for secure token-based transactions within virtual worlds and Non-Fungible Tokens (NFTs) for protecting digital assets and intellectual property, always emphasizing the need for clear utility and a defined business purpose behind their adoption.

Key Takeaways:

• Digital Transformation is Essential for SMBs: Many small businesses excel at their core service but neglect back-office duties (bookkeeping, marketing). Digital transformation, including AI and machine learning, is crucial for streamlining these operations, reducing costs, and increasing productivity.
• AI and Machine Learning Drive Efficiency: In industries like insurance, AI and ML can predict customer needs, automate processes, and integrate with CRM and IoT devices, significantly enhancing connectivity and customer experience. This concept is broadly applicable to other sectors.
• Metaverse Adoption is Accelerating: With 57 million VR hardware sets in the US, the Metaverse is on track for mass adoption within 3-7 years, following patterns seen with websites and social media. Businesses need to prepare for this shift.
• Virtual Officing Combats Zoom Fatigue: Immersive VR technology offers a more engaging alternative to traditional video conferencing, fostering better team collaboration and relationship building for remote or hybrid workforces.
• Metaverse as a Networking Tool: Virtual environments allow for efficient networking, enabling individuals to sample groups or connect with professionals across geographical boundaries without extensive travel, saving time and resources.
• Utility Drives Digital Real Estate Value: Owning digital real estate should be driven by its utility for business functions (e.g., virtual storefronts, offices) rather than purely speculative investment. Platforms are being built for specific business needs.
• Specialization Leads to Metaverse Fragmentation: The Metaverse is likely to be fragmented, with specialized platforms (e.g., Adidas for trying on shoes, Elevare Club for SMB business functions) rather than a single, monolithic entity, allowing for tailored experiences.
• Blockchain and Tokens for Secure Transactions: Implementing proprietary tokens within a virtual world, secured by blockchain, can reduce fraud, improve security, and cut costs for internal transactions, similar to in-game currencies.
• NFTs for Digital Asset Protection: Non-Fungible Tokens offer a mechanism for preserving, validating, and protecting digital assets and intellectual property (e.g., proving ownership of digital art or ensuring royalties for digital books).
• Technology Should Enhance, Not Replace, Human Interaction: The success of VR and Metaverse technologies hinges on their ability to facilitate, enhance, and supplement physical reality and human connection, not replace it entirely.
• Question Assumptions and Embrace Change: Businesses should continuously question traditional methods and be open to adopting new technologies, as past resistance to the internet or social media proved costly. Affordability and possibility are rapidly expanding.
• Focus on the "Why" and Pragmatic Function: Before adopting any new technology (Metaverse, NFTs), businesses must clearly define their objectives and ensure the technology serves a pragmatic function that enhances their operations or customer experience.

Key Concepts:

• Digital Transformation: The process of adopting digital technology to fundamentally change how an organization operates and delivers value to customers, often involving a shift from analog to digital processes, and leveraging technologies like AI, machine learning, and IoT.
• Metaverse: A virtual-reality space in which users can interact with a computer-generated environment and other users, often encompassing various platforms and specialized "worlds."
• Virtual Officing: The use of virtual reality or other immersive digital environments to create a shared office space for remote or hybrid teams, facilitating collaboration and communication.
• Virtual Real Estate: Digital plots of land or spaces within a Metaverse platform that can be bought, sold, and developed for various purposes, including virtual storefronts, offices, or event venues.
• Blockchain: A decentralized, distributed ledger technology that records transactions across many computers, ensuring security, transparency, and immutability.
• Token (Cryptocurrency): A unit of value issued by a specific project or platform, often used for transactions or access within that particular digital ecosystem.
• NFT (Non-Fungible Token): A unique digital identifier recorded on a blockchain that is used to certify ownership and authenticity of a digital asset (e.g., art, music, virtual real estate).
• Immersion (VR): The feeling of being present in a virtual environment, often enhanced by high-quality graphics, sound, and interactive elements.

Examples/Case Studies:

• Insurance Industry Digital Transformation: Transitioning from pen-and-paper and wet signatures to paperless systems, then integrating AI and machine learning to predict customer needs, connect to CRM, and leverage IoT for enhanced efficiency and customer experience.
• Contracting Business (Landscaping/Plumbing): While seemingly traditional, these businesses can benefit from digital transformation by implementing business plans, Sops, marketing plans, and budgets, then outsourcing back-office duties. Virtual officing can also reduce facility costs and enable remote staff management.
• Web Designer with Distributed Team: A web design firm with 15 team members scattered across different states can use virtual officing in the Metaverse for seamless collaboration, replacing choppy Zoom calls with a more natural, congregational experience.
• Adidas Metaverse: Building a specialized Metaverse platform for customers to virtually "try on" shoes before making an online purchase, enhancing the shopping experience for tangible products.
• Jack Dorsey's First Tweet as NFT: An example of an NFT being used to certify ownership of a unique digital asset, though the speaker notes ongoing ethical questions regarding reproducibility.
• Author Royalties with NFTs: An author could use NFTs to ensure they receive a royalty every time a digital copy of their book is transacted, unlike physical books sold in the used market.