Tag: automation

How to Clear Up Industry Cloud Confusion and Choose the Right Solution

With so many industry cloud platforms available from different technology players, selecting the right solution for your enterprise is not simple. Learn the important characteristics to look for from providers in this latest blog in our industry cloud series.

As cloud technology matures, industry-specific solutions are emerging as a leading preference over generic options to deliver efficiency, experience, innovation, and business-enabled growth. According to Everest Group’s latest survey, a staggering 87% of enterprises rate industry cloud as one of their top three investment priorities.

The supply landscape is heating up with technology providers leading with an industry cloud-focused go-to-market narrative, investing in multiple offerings for target verticals, initiating industry cloud-dedicated partner launch programs, and announcing large enterprise engagements.

Many technology providers operating in different spaces are approaching this market in their own ways. In our last two blogs on this topic, Demystifying Industry Cloud and The Battle for Supremacy in Industry-specific Cloud Has Begun, we discussed the evolving industry cloud solution provider landscape and go-to-market strategies adopted by key ecosystem players.

Read on for a deep dive into suppliers’ industry cloud offerings and our recommendations to equip enterprises to select the best-suited industry cloud solution for them.

The industry cloud solution marketplace is proliferating

The following three broad categories of industry-specific cloud solutions are emerging in the market:

  • Cloud infrastructure providers such as Microsoft Cloud for Manufacturing, AWS for Health, and Google Cloud for Telecommunications focus on providing an industrialized set of cloud solutions and services tailor-made for specific industries. Industry-specific configurations, interfaces, use cases, and blueprints are embedded into existing functionalities and bundled with partner solutions
  • Enterprise platform providers such as Salesforce Financial Services Cloud, SAP Digital Manufacturing Cloud, and Oracle Retail Cloud embed industry-specific processes, solutions, and frameworks into their horizontal applications and functions to enable industry specificity
  • Business solution providers such as Veeva Systems Life Sciences Cloud, Temenos Banking Cloud, and Guidewire Cloud for Insurance deliver true and heavily nuanced vertical solutions by providing niche industry-specific functionalities covering the breadth and depth of the value chain, targeting industry pain points

Though the objectives appear similar, technology providers take different routes for portfolio development based on their heritage and core strengths and provide varying degrees of industry specificity, adaptability, and improvisation.

For instance, cloud infrastructure providers offer flexible and ecosystem-driven industry cloud, while business solution providers have a more exhaustive use case coverage.

How to select the right industry cloud for your firm?

Enterprises need to make informed decisions when selecting providers of choice and carefully consider their business objectives, existing technology landscape, level of industry-specificity and enterprise-contextualization required, and preferred consumption model (off-the-shelf solution versus customized offerings).

Below, we detail the key characteristics of each solution type to assist enterprises in selection.

  • Industry cloud solutions by cloud infrastructure providers

Cloud infrastructure players provide a basic level of industry-specific functionalities and configurations powered by advanced cloud computing and next-generation technology capabilities in data analytics, Artificial Intelligence and Machine Learning (AI/ML), and the Internet of Things (IoT).

These most benefit existing consumers of cloud infrastructure providers’ technology stack that intend to digitize their platforms and services by co-creating or co-developing solutions with ecosystem players, instead of preferring directly consumable end-to-end industry cloud offerings.

Level of industry-specificity: Low-medium

Degree of customization: High

  • Industry cloud solutions by enterprise platform providers

Enterprise consumers of Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and other horizontal applications focused on achieving unified customer relationships, and employee experience can leverage industry cloud solutions by these providers.

Enterprise platform providers provide out-of-the-box industry solution workflows, built on core horizontal enterprise platform functionalities consisting of purpose-built functionalities, pre-built data models, and automation and AI/ML capabilities for particular industries.

Their focus is on digitizing vertical systems across the front, middle, and back offices, powered by customer data-related insights and integration between the sales and operations teams. These offerings have a limited level of customization and are usually available as different editions of off-the-shelf offerings.

Level of industry-specificity: Medium

Degree of customization: Medium

  • Industry cloud solutions by business solution providers

Enterprises requiring extensive value chain coverage and high-grade industry-specific cloud solutions that are looking to digitize their industry platforms can consider offerings by business solution providers.

These solutions are delivered in a pre-packaged and composable format. Enterprises can consume these solutions and services in a modular form and augment functionalities by developing vertical-specific solutions and services on top of these platforms.

Level of industry-specificity: High

Degree of customization: Low

  • Interdependence of technology providers and the role of System Integrators (SIs)

These providers cannot independently provide end-to-end expertise across all layers of an industry cloud stack – infrastructure and platform layer, application layer, differentiation layer, and customization layer.

While these players bring their own strengths to the table, they rely on each other to fill in the missing pieces.

Both cloud infrastructure players and enterprise platform providers depend on business solution providers for domain expertise and vertical-specific contextualization. Meanwhile, enterprise platform and business solution providers rely on cloud infrastructure providers for underlying compute and next-generation technology capabilities.

In this ecosystem-led play, SIs play the key role of ecosystem enablers. For an effective industry cloud implementation, enterprises should engage with SIs for enterprise contextualization, industry knowledge, implementation capabilities, and system integration expertise.

Industry cloud offerings in banking and financial services

To illustrate, we compare different industry cloud solutions in the banking and financial services space by these provider categories below:

Picture1 3

The industry cloud outlook

Though this space is witnessing heightened investments and significant interest among enterprises, the market is still primitive, and the road to success is not straightforward.

To ensure optimum value from industry cloud adoption, enterprises need to clearly define their industry-specific cloud requirements, identify target use cases, choose the appropriate sourcing strategy, analyze available solutions, align the partner ecosystem, factor in technology-related dependencies, and consider industry-specific compliance regulations.

To share your thoughts and discuss industry cloud, contact [email protected] and [email protected].

Also, learn how enterprises can measure the value of cloud and how to unlock its full potential to maximize efficiency in our webinar, How to Unlock the Full Value of Cloud.

3 Tips for Managing Perpetual Change from Software-defined Operating Platforms

Over the past seven years, almost all large companies made substantial progress in implementing digital transformation across a wide variety of functions. At the core of those enormous investments and efforts was building software-defined operating platforms, which put companies on a trajectory to fundamentally change how they operate their business. However, studies show many companies (70%) failed or underperformed against their digital transformation objectives. In this blog, I’ll discuss three tips for how to avoid that outcome and, instead, reap the significant benefits of software-defined operating platforms.

Read on in Forbes

Task Mining Playbook: Featuring Bayer Case Study | On-demand Webinar

In this on-demand webinar, Amardeep Modi, VP at Everest Group, will join a panel to discuss why organizations demand deeper visibility into people, processes, and technology.

You will learn:

  • Why traditional manual techniques for process discovery are a barrier to scale
  • How organizations can kick-start their task mining journey
  • How technology leaders can drive a shift towards task mining in their organizations, and more

Watch Now

Presenters

Amardeep Modi
VP, Everest Group

Jürgen Winandi
Group Product Manager, Automation, Bayer

Samson David
CEO, Soroco

Watch Now

How Automation Makes Biz Processes Agile, Less Tedious | In the News

When we think automation, we normally think robotic assembly lines on factory floors. But automation is now everywhere in the enterprise, thanks to technologies like robotic process automation (RPA), AI, and ML.

Anil Vijayan, Partner at Everest Group, said a big advantage of the new automation tools is that they are non-invasive. “You need not rip and replace fundamental systems within the organization,” he said.

Read more in Times of India

Digital Transformations: 5 Emerging Trends in the Intelligent Process Automation Market

The pandemic’s effects on the digital landscape are long-lasting. Businesses are evolving to rely on the intelligent process automation market (IPA) to promote growth and keep up with competitors. Read on to learn more about five growing IPA trends.

In a world becoming increasingly reliant on technology, financial services organizations are digitizing and automating more processes to keep up with the competition. The intelligent process automation market, growing by about 20% across all fields, is now becoming ubiquitous.

IPA is defined as automation in business processes that use a combination of next-generation automation technologies — such as robotic process automation (RPA) and cognitive or artificial intelligence (AI)-based automation, including intelligent document processing and conversational AI. Solution providers are offering solutions across RPA, Intelligent Document Processing (IDP), and workflow/orchestration, as well as crafting innovative solutions such as digital Centers of Excellence (CoE) and investing more in as-a-Service offerings.

In our recent Intelligent Process Automation (IPA) – Solution Provider Landscape with PEAK Matrix® Assessment 2022 report, our analysts ranked IPA technology vendors and looked at the market for IPA solutions. Based on the research, the growth of IPA technology and reliance will expand to around 25% over the next three years.

Five intelligent process automation market trends enterprises should know

The question of how to become faster, more efficient, and more resilient is the focus for just about any organization undergoing digital transformation. Very often, the answer to this question is at least, in part, intelligent process automation. In the near future, we can see five emerging IPA trends:

  1. IPA will get smarter

A greater proportion of cognitive elements is finding its way into the intelligent process automation market. About 60% of new automation projects involve more advanced cognitive tools such as IDP, conversational AI and anomaly detection. As the maturity of AI-based solutions increases, cognitive automation will be in greater demand. All-round adoption of IPA will be fueled by providers entering new geographies and organizations starting IA initiatives.

  1. IPA will be more scalable

Although many organizations are trying to adopt intelligent process automation, the real question is if it can be scaled up or, in other words, if it can be brought across the organization. To help enterprises scale automation, solution providers are investing in expanding their partner ecosystem, strengthening technology capabilities, and enhancing their services portfolio.

Providers are also expected to help enterprises scale up through more effective change management and CoE set-up strategies. Aided by the prevalence of process intelligence solutions to form robust pipelines and orchestration tools to facilitate holistic automation, enterprises are better equipped now to move away from siloed applications of IA to scaled-up automation implementations.

  1. Citizen development will grow

Many organizations are experimenting with what they can do with citizen development, especially with the current talent shortage. Citizen-led development also holds the power to disrupt the current state of building automation and addresses the issue of talent availability. Solution providers are expected to invest in citizen development and low-code/no-code technologies enabling business users to build automation, consequently also addressing the talent shortage in the market.

Solution and technology providers are also expected to invest substantially in developing the low-code/no-code capabilities of their platforms to enable business users with limited technical exposure to build automation solutions on their own. A few solution providers are implementing citizen development programs in their own organizations and are planning to leverage the learnings to develop effective governance programs for enterprises.

  1. IPA service providers will bring IPA solutions packages to the market

Packaged solutions are gaining traction in the IPA market due to their ease of implementation and quick Return on Investment (RoI). Solutions for F&A are the most prevalent in the market. These solutions will need training on particular data sets to make them functional for a particular process, but they will speed up implementation. Providers are expected to take conscious steps toward promoting sustainable AI by developing solutions complying with environmental, social, and governance (ESG) parameters. They are also investing in AI solutions that are transparent about their working and usage of data.

  1. IPA service providers will pre-build connectors to legacy and other systems

There are a host of technologies, including RPA, conversational AI, process mining, and process orchestration in the IA ecosystem. Very often these IA solutions need to talk to the various other systems. Many IPA service providers are driving innovation and crafting new solutions to keep pace with the fast-moving IPA market and create a more holistic integration process. One such method is offering enabling capabilities like pre-built connectors for a faster and less complex implementation.

If you would like to learn more or discuss the intelligent process automation market and IPA trends, reach out to [email protected].

Learn how the healthcare industry is utilizing intelligent automation, digitalization, and telehealth as fundamental driving forces to transform and evolve in the webinar, How Intelligent Document Processing Is Transforming the Healthcare Industry.

Composable Commerce: For Composing the Best-of-Breed Customer Experience

From monolithic to MACH architecture, the next evolution in digital experience is here – composable commerce. Similar to building with Lego Blocks, this modular approach allows enterprises to create unique models by selecting “best-of-breed” digital commerce components. Learn how composable commerce is optimizing all aspects of the online shopping experience and what tech providers are pioneering solutions in this rapidly rising area.

Digital commerce growth leads to composable commerce

Just as the COVID-19 pandemic has been a catalyst in accelerating digital platform adoption among enterprises, modern consumers’ purchasing habits have dramatically changed due to frequent lockdowns and increasing online purchasing convenience.

According to a United Nations Conference on Trade and Development (UNCTAD) report, the average share of internet users who made purchases online increased from 53% before the pandemic to 60% across 66 countries following its onset in 2020/21.

The shopping experience has evolved from brick and mortar stores to online and moved to unified commerce – an amalgamation of offline and online channels with an ever-evolving myriad of customer touch points such as social commerce, video commerce, and now metaverse, etc.

Emerging business models such as Digital to Commerce (D2C), new and interactive channels, and advancements in technology, especially Artificial Intelligence (AI) and Augmented Reality/Virtual Reality (AR/VR), have fueled digital commerce’s growth. In response, the underlying digital commerce architecture principles have also morphed to meet the pace of change in digital-native customer expectations.

What is composable commerce, and how will it unlock business value?

Up until a few years ago, monolithic architecture-based platforms were the de facto choice for any digital commerce storefront. These big and chunky solutions providing standard out-of-the-box features for all customers offered a “one-size-fits-all” approach. Enterprises had to be content with these standard features and were required to spend huge budget and time on customizations to meet their business requirements.

However, major issues with scalability, complexity, longer time to market, and budget made this implementation approach less useful for modern commerce businesses where staying abreast of technological advancements, customer centricity, and nimbleness are of utmost priority.

The next major evolution in digital commerce architecture is MACH (microservices-based, API-first, cloud-native, and headless) architecture enabled enterprises. This approach will overcome the shortcomings of monolithic architecture and responsively and dynamically adapt to customer expectations.

Exhibit 1 Characteristics of MACH Architecture

Taking a step forward from MACH architecture, the era of composable commerce has dawned. Composable commerce – a modular approach to implementing digital commerce – uses interchangeable building blocks, leveraging the MACH Architecture framework. It offers enterprises the choice to select “best-of-breed” digital commerce components such as Product Information Management (PIM), Customer Relationship Management (CRM), pricing, etc., and is similar to Lego Blocks where users can create unique models. These composable components are the specific solutions provided by third-party vendors.

While the microservice approach breaks down the digital commerce modules into individual building blocks, composable commerce enables the linkage of these microservices to realize a specific business value. Composable commerce utilizes Packaged Business Capabilities (PBCs), a fully functional, independent component serving a defined business capability. These are used as building blocks for “composing” the unique platform. Each PBC can consist of several microservices. These PBCs can be individually replaced or modified without impacting the entire platform.

Exhibit 2 Central Tenets of Composable Commerce

Thus, composable commerce has shifted the focus toward business-centricity. Composable commerce is built for an organization’s unique operating models, strategic priorities, and customer focuses. Businesses can select essential functionalities for their requirements and “compose” them into a custom application built for their digital commerce platform. This allows enterprises to focus on the relevant PBCs for their business that are sometimes unavailable in the traditional and bulky monolithic platform’s “out-of-the-box” features.

Below are some benefits of composable commerce that enterprises can realize.

Exhibit 3 Benefits of Composable Commerce

The number of PBC vendors providing functionalities such as loyalty, promotions, search, reviews and ratings, analytics, etc., is rapidly growing. Enterprises have the flexibility to choose the best vendor for their platform, considering their individual business and technical requirements. They can manage multiple brands and varying business models, leveraging the same composable commerce stack to stay nimble in response to market changes. Complex business can be launched and managed more efficiently using composable commerce.

Technology providers are already pioneering composable commerce solutions

Technology providers have extensively started working on solutions to enable enterprises to get on board the composable commerce bandwagon. Below are some examples:

  • Spryker has launched the cloud-native “App Composition Platform,” which gives enterprises seamless access to third-party services and best-of-breed digital commerce vendors
  • Virto’s Atomic Architecture™ allows customers to get a composable, flexible, manageable, customized, and easily-updated digital commerce architecture that is fully adaptable to market challenges
  • Elastic Path’s Composable Commerce Hub is an open exchange of composable commerce solutions for digitally-driven brands that want to seamlessly create complete digital commerce experiences for their business
  • Fabric provides a configurable and composable commerce solution to rapidly deploy and scale unique brand experiences, product offerings, and services
  • Infosys Equinox is powering Nu Skin to compose unique and delightful digital journeys across ever-evolving channels
  • Avensia’s composable commerce solution Avensia Excite is built on commercetools. Avensia Excite uses Contentful for CMS, Inriver for PIM, and Apptus eSales for search engine

Composable commerce outlook

While MACH architecture had set a strong foundation for modern digital commerce architecture, composable commerce is the next logical iteration in the digital commerce business model to meet rapidly changing customer expectations and the growing number of touch points. Composable commerce adoption will continue to witness a rise as enterprises plan to move away from the traditional approach of implementing digital commerce solutions. More and more niche third-party vendors are emerging faster than before, providing ample choice for enterprises to craft and “compose” their digital commerce stack.

If you have questions about digital commerce, please reach out to Nisha Krishan ([email protected]) and Aakash Verma ([email protected]).

Stay tuned for insights on the digital commerce platform market from our recently launched inaugural Digital Commerce Platform PEAK Matrix® Assessment.

Selecting the Right Low-code Platform: An Enterprise Guide to Investment Decision Making | Blog

Enterprise adoption of low-code platforms has been invigorated in recent years by its potential to drive digital transformation. This fast-rising platform solution offers promise to democratize programming with today’s talent shortage and help companies develop applications and enhance functionalities faster. While the opportunities are clear, charting a path to successful adoption is ambiguous. Learn the 4Cs approach used by best-in-class enterprises for selecting and adopting the right-fit low-code platforms in this blog.

As many as 60% of new application development engagements consider low-code platforms, according to Everest Group’s recent market study. Driven by the pandemic, the sudden surge in demand for digital transformation accelerated low-code annual market growth to about 25%. Considering its potential, low code is appropriately being called the “Next Cloud.”

Interest by investors also has accelerated, further driving R&D spend for new product development. Funding activities in 2022 to companies featuring low code in their profiles already amounts to $560 million across 40 rounds.

Platform providers are responding to these elevated expectations with equal fervor by building platforms with deep domain-specific expertise, while others are providing process-specific solutions for enterprises’ customization requirements.

While these markets have resulted in a proliferation of low-code platforms to choose from, it also has led to confusion and inefficiencies for enterprises. As more and more enterprises explore the potential of these platforms, IT leaders are faced with numerous questions and concerns such as:

“How do I select the platform that can address my current and future requirements?”

“Which platform will work best in my specific enterprise IT landscape?”

“How can we optimize the investment in this technology?”

“How do I compare the pricing structures of different low-code platforms?”

“How do we ensure governance and security of the IT estate with these new tech assets?”

Adoption journey and evaluation parameters for low-code platforms

In addition to the high-priority use cases that initiate the adoption, enterprises should consider the platform’s scalability potential, talent availability for support and enhancement, and integration with the broader IT landscape to make the right selection.

Additionally, low-code platforms are intended to address the requirements of the IT function as well as business stakeholders. Considering the drivers, expectations, and requirements of both when making the selection is essential. A collaborative decision-making set-up with the central IT team and key Line-of-Business (LoB) leaders is critical for a successful platform selection. Let’s explore the 4Cs to low code success.

4Cs to low code success

The key steps to ensure successful low-code platform selection and adoption are:

  • Contemplate: Initiate platform adoption by a set of high-priority use cases but plan for scalability at the enterprise level during platform selection
  • Collaborate: Bring together the central IT group to lead the selection and adoption effort and meaningfully involve the LoB stakeholders
  • Compare: Start with business and tech drivers, expectations, and requirements from both IT and business to prioritize and rank platforms and select the best-fit platform
  • Customize: Make small and incremental enhancements post-adoption to broaden the platform’s scope without disrupting daily operations

This approach can provide a roadmap for enterprises with distinct outcomes. We have witnessed enterprises either adopting the best-fit approach resulting in a platform portfolio or leveraging a single platform as a foundation for an enterprise-grade innovation engine.

For instance, the Chief Technology Officer (CTO) of a leading bank in the US invested in establishing a low code Center of Excellence (CoE) that uses different platforms for process automation, IT Service Management (ITSM), and enabling point solutions for business users.

On the other hand, a large US commercial insurer built its entire end-to-end multi-country app on a single low-code platform. This comprehensive, business-critical application managing claims, billing, and collection is accessible by all underwriters and service personnel.

Next, we explore how to best compare platforms based on their offerings and capabilities. The tables below illustrate the top five business and technology-oriented parameters to consider when evaluating platforms, along with their relevance and enterprise expectations.

Technology parameters for low-code platform selection

Factors associated with the platform’s technical robustness are of key importance to IT decision-makers. Integration and UI/UX capabilities are at the top of enterprise’s technology priorities when comparing multiple platforms.

For instance, Appian ships with 150-plus Out-of-the-Box (OOTB) connectors. Appian SAIL, a patented UI architecture, takes declarative UI definitions to generate dynamic, interactive, and multi-platform user experiences. It also makes the applications more secure, easy to change, future-proofed, and native on the latest devices.

Picture1

Business parameters for low-code platform selection

Assessing these parameters is important to understand whether low code can be sustained and scaled long-term and if it addresses the business users’ expectations. Pricing and security constructs are at the top of the list for businesses looking to adopt a low-code platform.

Picture2

Let’s consider Salesforce as a case-in-point. Salesforce has security built into every layer of the platform. The infrastructure layer comes with replication, backup, and disaster recovery planning. Network services have encryption in transit and advanced threat detection. The application services layer implements identity, authentication, and user permissions. In addition, frequent product updates that help it to align its product offering with changing market demands put Salesforce as one of the go-to platforms for all the CRM needs of enterprises.

Low-code platform outlook

The plethora of options makes it difficult for enterprises to zero down their investments on a particular low-code platform. Enterprises must also leverage their network of service partners for guidance in this decision-making process.

Talent availability for implementation and enhancement support is critical to keep in mind during the platform selection. For the same reason, multiple system integrators are now taking the route of inorganic growth to bolster their low-code capabilities.

This is the time to hop on the low-code bandwagon and establish low code as the basis for enterprise digital transformation.

Everest Group’s Low-Code Application Development Platforms PEAK Matrix® Assessment 2022 provides an overview of the top 14 platforms based on vision, strategy, and market impact.

To share your thoughts and discuss our research related to low-code platforms, please reach out to [email protected] and [email protected].

Metaverse and ScienceTech: Will These Virtual and Real-world Markets Compete?

Metaverse is the buzz these days. While Metaverse provides an embodied virtual-reality experience, ScienceTech fuses technology and science to solve real problems of humanity. Who will win in the battle for relevance, investments, and talent? To learn more about these virtual and real-world market opportunities and what actions technology and service providers should take, read on.

While they once seemed far out, the Metaverse and ScienceTech are here now. As part of our continued Metaverse research, let’s explore these emerging technologies and whether they will collide or coexist.

ScienceTech brings together technology and science to improve the real world by enhancing living standards and improving equality. It combines technology with physical sciences, life sciences, earth sciences, anthropology, geography, history, mathematics, systems, logic, etc.

Meanwhile, the Metaverse is an emerging concept that uses next-generation advanced technologies such as Augmented Reality (AR)/Virtual Reality (VR), digital assets, spatial computing, and commerce to build an immersive, seamless experience.

Over the past few months, Metaverse has become a hot topic not only in technology circles but also among enterprises. As providers pump billions of dollars to create the landscape and value realization becomes clearer, Metaverse will grab increasing attention from enterprises, providers, and market influencers.

Its serious market potential can be seen by the collaboration of industry participants to define standards to interoperate Metaverse platforms and ecosystems. Everest Group is witnessing great interest in our Metaverse research and our recent webinar Web 3.0 and the Metaverse: Implications for Sourcing and Technology Leaders generated unprecedented client inquiries.

ScienceTech has been around for many years but has been mostly experimental with limited revenue and growth. Technology and service providers have been reluctant to meaningfully scale this business because of its complexity, significant investment requirements, and high risk of failure.

However, the pandemic has changed priorities for enterprises and individuals, making ScienceTech more critical to solving real-life problems. The cloud, an abundance of data, better manufacturing processes, and a plethora of affordable technologies have lowered the cost of enabling and building these offerings.

Competition between Metaverse and ScienceTech

Below are some of the areas where these two emerging fields could conflict:

  • Relevance

Many cynics have decried Metaverse as one more fantasy of BigTech trying to take people further away from reality. This cynicism has gained pace in light of the disruptive global pandemic. The make-believe happy world driven by a heavy dose of virtual reality takes the focus of humanity away from the pressing needs of our time.

While not well defined, ScienceTech is generally perceived as being different from pure play. Some of its ideas have been around for many years such as device miniaturization, autonomous systems, regenerative medicine, and biosimulation. The core defining principle of ScienceTech is that science researched, validated, and hypothesized themes are built through technology. The relevance of ScienceTech may appear far more pressing to many than the make-believe virtual world of Metaverse.

  • Investment

The interesting competition will be for investments. Last year, venture capitalists invested over US$30 billion in crypto-related start-ups. As the Web 3.0 and Metaverse tech landscape becomes more fragmented and crowded, investors may not want to put their money into sub-scaled businesses. This can help the ScienceTech space, which is not well understood by investors, but offers a compelling value proposition.

  • Talent

Technology talent is scarce and ScienceTech talent is even scarcer. Although Metaverse vendors will continue to attract talent because they can pay top dollar, ScienceTech vendors can offer more purpose and exciting technologies to niche talent. In the internet heydays, people bemoaned that bright minds were busy clicking links instead of solving world problems. Metaverse may have that challenge and ScienceTech can benefit from this perception. GenZ job seekers want to work in areas where they can impact and change the world, and ScienceTech can provide that forum.

What should technology and service providers do?

Both Metaverse providers and ScienceTech companies will thrive and share quite a few building blocks for technologies, namely, edge, cloud, Artificial Intelligence (AI), and data. Multiple technology and trends will not battle. Moreover, these two markets serve different purposes and Metaverse and ScienceTech will coexist. Technology and service providers will need to invest in both segments, and capture and shape the market demand.

Providers need to prioritize where to focus efforts, investments, partnerships, and leadership commitment. A different people strategy will be needed because skilling technology resources on science and vice-versa will not work. They will need to select specific focus areas and hire people from multiple science domains. The R&D group will have to change its constituents and focus on science-aligned technology rather than just Information and Communications Technology.

To be successful, providers also will have to find anchor clients to underwrite some offerings, collaborate to gain real-life industry knowledge, and engage with broader ecosystems such as academia, government, and industry bodies to build market-enabling forums.

To learn more about our Metaverse research and discuss your experiences in these emerging areas, contact [email protected] or contact us.

Visit our upcoming webinars and blogs to learn more about upcoming technologies and trends.

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