I have been captivated by this new world around the Web 3.0 Economy and everything around Blockchain, Cryptocurrencies, NFTs, Smart agreements, DeFi, Decentralized Storage and the Metaverse.
NB: This is a short article from Catala Consulting
This has (and definitely will) altered the way we live our digital lives permanently, and the most exciting part is that we are only at the very start of it! I have actually likewise been asking myself what jobs would be pertinent in this brand-new economy (yes I am trying to remain relevant there!) and if some forms of optimization and earnings management, comparable to what we currently apply in the real world, could be applied to the Web 3.0?
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In this post, I am focusing on the Metaverse, as I believe this is the closest/most comparable environment to our existing world and everyday activities.
What is the Metaverse?
While it is quite hard to define it, we can mention a working meaning:
A metaverse is merely a wide expanse of digital space where users can communicate with each other in real-time and get comparable experiences to what they experience in the real world, and for the most part much more. This meaning of the metaverse highlights an essential point– the truth that it is a wide stretch of a digital realm that can be stated to be continuing the world of the “real world”. The only factor why we put the real world in double quotes is that it is conceptually tough to distinguish between what the metaverse is and what the “non-metaverse” is.
” The “metaverse” is a set of virtual spaces where you can develop and check out with other individuals who arent in the very same physical area as you. Youll have the ability to hang out with friends, work, play, discover, shop, create and more.” (Facebook, 2021).
Are Revenue Management concepts appropriate in the Metaverse?
Lets examine if the criteria are present in the Metaverse for reliable use of revenue management:.
Operate in a fixed capability environments?
Yes ( and no, it depends on how you see it). The Metaverse itself is an extension of what we specify as genuine. Due to the fact that it is not limited by the physical areas of the world that we reside in, it can be stated to be encompassing infinity. Having said that, some part of the metaverse could become restricted in area (personal parties, unique events, gain access to just environments or games) or perhaps special/limited/unique NFT available. Here comes the Revenue Manager.
Have perishable or time-sensitive products?
All of the mentioned locations could take advantage of economics 101 concepts and the application of profits management.
With a new (digital) economy comes a brand-new variety of tasks and services (where we can apply the typical demand/supply concepts). A few ways users in the Metaverse can make money:.
Material development (where users can develop possessions to be used in the Metaverse and these properties can be purchased or traded). Consider artists, designers, style designers, occasion hosts, community managers, curators, game developers, … Transactional skills (brokers in the Metaverse to sell your NFTs, to sell your contents, to promote your special occasions inside and outside the Metaverse). Think of realty agent, ambassadors, sales and brokers.Exploring the platform (Metaverses guides to assist you find new insights, key information about the platform or some story informing about some particular spaces in the metaverse.) Believe of virtual tour guides.Transportation? (this one I am extending it a bit as I am not sure how transport might look like in the metaverse. Does it happen like teleportation? Or do we require to move from one part of the “map” to another?). We could envision some type of public and private transport system, which in this case we might reproduce the exact very same profits management concepts to enhance restricted spaces.Digital tourism (essentially going to a museum for example, or enabling users/tourists to develop his or her own travel experiences so that these please a vast array of personal needs, from pleasure to a search for meaning– Think Westworld!!).
Face differed however predictable demand with time?
Yes. Demand for particular limited time occasions might primarily depend upon the organizers (various need for Snoop Dog hosting his yearly celebration in the Metaverse and my mommy arranging the regular monthly gathering of the Thermomix fans in the Metaverse). Rather sure we can see various seasons in the year when individuals are more connected to the Internet than some other times, this correlation would continue in the Metaverse (a lot more important if it begins to use within the working environment). Different durations, events and seasons might be yielded in a different way and certain type of projection might be applicable.
Have a high proportion of fixed expenses and a low proportion of variable costs?
Learn more posts from Catala Consulting.
Believe of artists, designers, style designers, occasion hosts, community managers, managers, game creators, … Transactional skills (brokers in the Metaverse to sell your NFTs, to sell your contents, to promote your special occasions inside and outside the Metaverse). Demand for particular limited time events could primarily depend on the organizers (different demand for Snoop Dog hosting his yearly celebration in the Metaverse and my mother arranging the monthly gathering of the Thermomix fans in the Metaverse). And thats most likely the primary distinction with the “real world” and the digital Metaverse, is that the costs are rather minimal. I dont see any factors this must be a roadblock to use Revenue Management concepts in order to optimize income for specific products, services and events in the Metaverse (believe of making the most of your dollars for your financial investment in the Metaverse).
Think about this for a minute … we might even reproduce our present tech stack and some job works to the Metaverse: the very first PMS in a digital world, a digital CRM to manage guests in unique occasions or spaces within the Metaverse, a Revenue Management System able to dynamically priced some location and elements of the Metaverse or even a complete running digital hotel running in the Metaverse.
Conclusion.
And thats probably the main difference with the “real world” and the digital Metaverse, is that the expenses are quite limited. I dont see any factors this must be a roadblock to apply Revenue Management principles in order to optimize profits for particular items, services and occasions in the Metaverse (think of making the many of your dollars for your financial investment in the Metaverse).
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Based on the aspects above and our understanding of the Metaverse, we could absolutely see some opportunities for Revenue Management to be applicable. Think about this for a minute … we could even reproduce our current tech stack and some job functions to the Metaverse: the very first PMS in a digital world, a digital CRM to handle guests in special events or spaces within the Metaverse, a Revenue Management System able to dynamically priced some location and components of the Metaverse or even a full running digital hotel running in the Metaverse. This is an entire brand-new world of opportunities that we are opening, and I am quite thrilled to see how this will continue and progress. Just a trend and in a couple of years we will not be talking about it anymore or is it a genuine game-changer and how company will be conducted in the future? Just time will tell.
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