Business strategy

Question

META (formerly Facebook) has announced a grand vision of the ‘metaverse. A place where we will apparently be spending all our time soon. To deliver on this promise the company has reorganized, a large transfer of talent to the new project has begun, and a significant investment has been allocated (possibly $10 billion in the first year alone). Management has explained that all our day-to-day interactions will be possible in the metaverse although the details on how that will work or improve our lives are a bit fuzzy. GE also tried to invest in a grand technological vision connecting virtual and real equipment into a new business model. What strategic lesson(s) might META learn from GE’s difficulties? What technology strategy might best mitigate the risks META faces? (~400 words)

Answer 1

META's ambitious vision of the 'metaverse' represents a significant shift in how digital interaction and online presence are perceived. This move, while innovative, comes with substantial risks, as evidenced by GE's earlier attempts to integrate virtual and real-world technologies. Learning from GE's experience, META can adopt several strategic approaches to mitigate risks and maximize the potential of the metaverse.

### Lessons from GE's Experience

1. **Avoid Over-Diversification**: GE's challenges were partly due to spreading itself too thin across diverse domains. META should focus on its core competencies in social media and digital interaction, ensuring that the metaverse aligns with these strengths.

2. **Manage Technological Complexity**: GE struggled with the complexity of integrating various technologies. META should prioritize user-friendly interfaces and seamless integration with existing technologies to avoid overwhelming users and stakeholders.

3. **Realistic Expectations and Clear Communication**: GE's vision was grand but somewhat abstract, leading to unrealistic expectations. META needs to set clear, achievable goals for the metaverse and communicate these effectively to users and investors.

4. **Incremental Implementation**: Rather than a radical overhaul, GE could have benefited from a more incremental approach. META should consider phased development and implementation, allowing for adjustments based on user feedback and technological advancements.

### Recommended Technology Strategy for META

1. **User-Centered Design**: The metaverse should be designed with a deep understanding of user needs and preferences, ensuring that it enhances rather than complicates day-to-day interactions.

2. **Partnerships and Collaboration**: Collaborating with technology leaders in VR, AR, and AI can provide META with the necessary expertise and reduce the risks associated with pioneering a new domain.

3. **Robust Privacy and Security Measures**: Learning from past privacy issues, META must prioritize robust security measures in the metaverse to gain and maintain user trust.

4. **Scalable and Flexible Infrastructure**: The platform should be scalable to accommodate growth and flexible enough to integrate future technological advancements.

5. **Continuous Innovation and Learning**: META should establish a culture of continuous learning and adaptation, keeping pace with technological advancements and changing user preferences.

6. **Sustainable and Ethical Practices**: Aligning with global concerns, META should ensure that its metaverse development is sustainable and ethically sound, particularly in data usage and environmental impact.

In summary, META can learn from GE's difficulties by focusing on its core competencies, managing technological complexity, setting realistic goals, and communicating them clearly. A technology strategy that emphasizes user-centered design, collaboration, robust security, scalability, continuous innovation, and ethical practices will best position META to realize its vision of the metaverse while mitigating inherent risks.