After the conference

Around 100 people – including leading international researchers and experts from industry – gathered at the IÉSEG Paris-La Defense Campus. Amidst the hype and media attention surrounding the Metaverse, this conference presented an excellent opportunity to bring together prominent scholars and industry experts to share their insights on cutting-edge research areas and the latest industry developments. Topics discussed included the complexity of virtual ownership, new technologies that shape virtual worlds, the paradoxes of metaverse-driven luxury, and ways in which businesses can create value through social interactions.

Introduction from our Dean of Faculty, Elise MARESCAUX

The conference objective was to learn from experts from different backgrounds, better understand consumers’ behavior in virtual space, and explore forefront tools and technology and their role in shaping online engagements. The question arises: Was it merely hype that came and went? Is the party really over?

Morning session: Takeaways from the research side

Key insights from Russell BELK, Professor of Marketing at Schulich School of Business, York University

There has been a considerable investment in metaverse-related endeavors in recent years, assuming there would be something there. Although experts are divided today as to what the future might hold, in all likelihood, there will be a kind of “multiverse”: a set of universes that may or may not be interoperable so that your avatar and their possessions can be moved from one universe to another.

Metaverse and virtual worlds are challenging us to review our perspective on ‘psychological possession’, revamping our view on the tangibility of our possessions. As Lawrence Weiner, an American conceptual artist, said: “Once you know about a work of mine, you own it.” Similarly, a song in your mind cannot be removed. As soon as you have an idea, any idea, it can be yours in a way. “When you’re the first person to have an idea, you patent it, and it’s yours. What art is, is an idea,” not the execution nor the completed work, but the idea of it.

NFT is also challenging our idea of property. NFTs might come with a contract, but at the end of the day, an NFT is an intangible asset that is available in virtual space, to which you might not have exclusive rights, that you cannot manipulate, and which can be divided among several people (fractional property). Consequently, we might assume that ownership of virtual assets entails diminished feelings about psychological ownership, as, after all, it is intangible.

Nonetheless, if ownership is about ‘psychological possession’ in people’s minds, then perhaps such feelings of ownership will prevail and remain strong, generating value and a sense of attachment.Therefore, the development of the metaverse challenges our perceptions about ownership and our relationships to objects – moving beyond the traditional concepts of tangible possessions and legal ownership.

Key insights from Thorsten HENNIG-THURAU, Professor of Marketing at the University of Münster

There are currently about 600 million people using the virtual worlds that constitute the “metaverse” via various devices, including VR headsets, which is a clear indication that the metaverse is worth paying attention.

The metaverse, as a virtual environment in which people, as avatars, act and communicate with each other in real time, should not be confused with a single, coherent entity, as it instead consists of many small pieces that many different companies contribute. Virtual reality, while not the only way to access the metaverse, is a unique way in that it enables an “unprecedented level of social presence” defined as the perception of “being (somewhere) together with other people”.

With the metaverse accessed through VR headsets, we enter a shared three-dimensional world, regardless of our physical location, which overcomes the loneliness that we usually experience in traditional 2D worlds when browsing and using the internet. The social presence, that the metaverse can offer, constitutes a turning point in media usage; it creates a new sense of proximity and opens the door to many new opportunities for being together. You can now be close to people who are important to you. This closeness promises enormous value gains by getting people who are remote in the physical world, together in a spatial way. These can be employees connecting with other employees (including examples of You use a traveling device to fly from one application to another. We enter a shared three-dimensional world, regardless of our physical location, which contrasts with ‘loneliness’ dominating our traditional 2D worlds, where we look at a screen on our own.

Social presence is a turning point in media usage; it creates a new sense of proximity and opens the door to many new opportunities for being together. You can now be close to people who are important to you. The metaverse can develop as a ‘meeting place’ – employees connecting with other employees (including examples of remote onboarding, teambuilding, virtual training, or twinning); companies interacting with customers (examples include presenting services, or selling real or virtual goods, or branding initiatives) and customers socializing with other customers. Social presence will, therefore, be one of the most critical factors of success in driving the future development of the metaverse.

Key insights from Philipp RAUSCHNABEL, Professor of Digital Marketing and Media Innovation at the Universität der Bundeswehr München

We have a physical reality – that is natural and multisensory, and a digital reality, which has other benefits (in terms of reaching, sharing). There is a need to think in terms of complementarity between AR and VR, foreseeing a future around mixed reality. The real world has limitations, including low personal reach and limited sharing potential. It’s advantageous to take the best of the two worlds and combine them in a hybrid proposition: including purely offline, purely online, and combined contexts. Technology is already evolving in that direction, with – for instance – the new iPhone and its 3D scanning capabilities that enable users to take a scan of real-world objects and preserve them digitally.

We need to clearly distinguish AR from VR from a user perspective, as these concepts are rather different: if the real world is part of the experience, then we are talking about AR, otherwise we are talking about VR. Experiencing content in AR leads to a closer perception (because there is a perception that you look through the screen of your device), which might trigger a strong emotional bond. An example of mixed reality is the film Kingsman which has a scene where both technologies are used.

What is the core of AR? We can break it down into four Cs, four factors that need to be aligned for success: that include Consumers, Context, Content, and Computing device. Context is key: AR is very much about the physical context where you consume the given object. For instance, a couch presented in a non-plausible context – such as in a garden – does not seem realistic and hence does not fit our perception of the physical context. However, if presented in a plausible context, consumers immediately compare the realism between the virtual couch and other, real furniture items.

But AR and the metaverse go far beyond presenting products through smartphones or catching Pokémon. Its use in public spaces raises many social, economic, legal, and ethical questions. Rauschnabel, who collaborates with politicians and companies on these issues, calls for more visionary research in this area. For example, we need to discuss how manufacturers of products such as TV screens or whiteboards should react if virtual substitutes serve as new competitors.

Key insights by Carlos FLAVIAN, Professor of Marketing at the University of Zaragoza

The metaverse is still in its infancy, capturing a wide range of not-interconnected, fragmented metaverses (or betaverse). There are many potential opportunities for development, for instance when we think of a conference where accessibility might be enhanced (e.g., AIRSI2023), but – at least on a global scale – we are not there yet.

Today we are still in Metaverse 1.0. When will the Metaverse 4.0 be ready? When will technology, companies, institutions, and consumers be ready?

There are eight technological challenges to address and three dimensions to consider when thinking about the metaverse: technology, environment, and social aspects. There are numerous possibilities when transitioning from a real environment to a virtual environment, such as virtual reality, augmented reality or pure mixed reality. What is needed to move forward is improved technology (improve computational and network capacity, better graphic resolution, lighter devices, greater sensory richness), improve systems based on AI (avatars, robots, chatbots), or interoperability of platforms, to enhance users' experience to accelerate the development of the metaverse.

The technology can be spurred by different stakeholders who can derive value from the development of the metaverse, including economic value through additional transactions, social value through interactions, epistemic value through knowledge sharing, platform value through customer support, and brand value through enriched meaning. In addition, what needs to happen is the development of decentralized autonomous organizations to manage the metaverse, and improving network capacity (for example by developing 5/6G).“The metaverse may be virtual… but the impact will be real”.

Afternoon session: Takeaways from the practice side

Morgan BOUCHET, Head of Immersive products @Orange and Lecturer @SciencesPo, demonstrated how Orange was creating immersive and exceptional experiences in the metaverse, enabling users to go where it is not possible to go in the physical world. There are two ways to approach the metaverse: “a social based virtual world deviated from games and populated by avatars”, or “a new digital space where you navigate between realities: immersing in virtual space through VR/3D, or enhancing reality with AR.”

One initiative is the Orange safe zone that aims to provide safe spaces to protect young people against cyberbullying; a concern that is highly prevalent in some of the main online gaming platforms, such as Fortnite or Roblox. In terms of immersive reality, the Eternelle Notre Dame initiative was highlighted, which proposes a VR expedition of the historic Paris Cathedral (which is currently undergoing reconstruction following the fire that ravaged the iconic monument in 2019), a virtual visit enabling a historical and educational discovery journey that in turn helps to spread our French culture through the world.

Ellen VAN DE WOESTIJNE, VP Strategic Development atAHRT showed how her company creates opportunities to have almost real interactions across remote settings via the use of holograms. Current trends leaning towards holograms capture hybrid events, online meetings, showcasing 3D products & craftmanship for retail and training programs where this technology has the potential to “wow” audiences while also overcoming “zoom fatigue”. It is aligned with a quest for being more sustainable, encouraging audiences to engage, retain information and focus on storytelling, while increasing in use and adoption of holographic displays and services in an affordable way. We will be moving from unreal to very real, projection to single to group viewing experiences, 2D to 3D, and pixels to voxels in the far future.

The future of holograms will be around sharing information (meetings, events, speeches etc.), sharing knowledge (e.g., product launches, celebrity appearances, virtual customer service), and sharing experiences (research, teaching, training, culture). Numerous sectors are exploring this technology, including education (as with the case of IMD in Switzerland), retail, finance, and entertainment.

Jae MALONEY, Innovation Consultant & New Technology Researcher at Air France-KLM, presented how the Air France-KLM group was creating trainings in the metaverse that would allow placing users in ‘risky’ or challenging situations, which would not be possible in the real world. Jae stressed the difference between the concepts of: 360° video, where the user is faced with a representation of a real environment, being able to change direction of view; augmented reality that adds information to the real world in an overlay; mixed reality blends virtual content with real world content; and virtual reality whereby the user is fully closed off user from the real world. Jae underlines the multiple benefits of training employees using VR technology: in order to avoid costly, rare or dangerous training environments; where people can make mistakes without costs, damage, or health risks; perform many trainings repetitions and personal development programs; and ultimately reduce carbon footprint. The group’s portfolio of XR solutions already include pushback training and trainer controls, pilot, and crew training.

Nonetheless, companies are facing challenges to develop virtual reality and in particular with notions of user adoption, speed of change, and seamless integration of multiple technologies.

Emanuela PRANDELLI, LVMH Associate Professor of Fashion and Luxury Management at Bocconi University, elaborated upon ways in which luxury brands need to lead the path and remain relevant for the new generations by offering unique and original experiences through the metaverse. Taking advantage of new technologies requires the development of a seamless omnichannel environment, ensuring consistency and integration among platforms and devices. Companies need to think about how to enhance the customer journey and focus on the right target, rather than how to fix the business channel.

The metaverse is providing new opportunities for brands by removing obstacles from the physical environment, for instance the need for shipping. At the same time, luxury brands will also need to cope with specific challenges like being able to ensure phygital relationship; moving from exclusivity to uniqueness; ensuring authentic and real time interactions; and importantly, developing a compelling storytelling to a community of users. Luxury brands need to leverage wisely their increased access to customer’s data by responding to customers’ desire for customization while protecting their authenticity.

Thematic workshops: Takeaways from the brainstorming sessions

Following the research and practice focused sessions, participants joined a workshop of choice with the aim to further bridge the gap between academia and industry.

During each workshop, key concepts and insights were captured in watercolor on print by Jessie Kanelos Weiner, a Paris based live drawing artist (see drawings below).

The workshop on Virtual possessions and ownership (in terms of properties, objects, NFTs, etc.) was chaired by Russell BELK and Bart CLAUS. Participants reflected on their own digital possessions and what it means to virtually own an item. A person’s self is the total of what that person can call their own. What we own becomes part of our identity. In physical environments, the ownership organizes the physical environment. In virtual environments, ownership might become platform dependent (e.g., Amazon may take books out of your account). Ultimately, the feeling of ownership is what matters, and it has an impact on who we are. Critical concepts to consider in the future are copyright issues, the right to use a possession versus the right to transfer a possession, and the need for a legal perspective in that regard.

During the workshop on Avatars and digital identities (in terms of self-representation, authenticity, control, platforms, etc.), chaired by Thorsten HENNIG-THURAU and Joao VEIRA DA CUNHA, participants discussed how they represent themselves through avatars and how this virtual self-representation might be connected to their real self. E.g., is my avatar a representation of my ideal self or a mirror of the real me? Participants reflected on how behaviors change when people interact through their avatars, and which part of their real selves they want to show in virtual spaces.

You might have different avatars in different virtual spaces: e.g., on professional platforms like LinkedIn versus on gaming platforms such as Roblox. Discussions also explored different perspectives depending on whether you are inside the metaverse or outside looking in – and will that impact your ultimate experience – for instance, is it important for avatars to have legs? Key topics during this workshop were the need for accuracy and connection with the avatar, as well as the consideration of platform-specific avatars.

The workshop on Privacy and regulation in virtual worlds (in terms of inclusion, digital behaviors, responsibility, ethics, etc.) was chaired by Philipp RAUSCHNABEL and Maria CASTILLO. In this workshop, participants reflected upon data and privacy protection. They discussed the dark side of the metaverse, such as privacy in social media (information sharing between platforms) and threats to other people’s privacy, as well as the consequences of NPC and avatars with AI features. Participants used a case with LEGO® SERIOUS PLAY® to illustrate risks and discussed solutions to reduce them (e.g., regulations). Many discussions revolved around AI and communication.

In the workshop on Influencer marketing (in terms of virtual influencers, streamers, digital personas of human influencers, etc.), chaired by Emanuela PRANDELLI and Thomas LECLERCQ, participants tried to distinguish human influencers from their virtual counterparts. It is sometimes difficult to differentiate between the two, as virtual influencers can seem very human-like. Questions revolved around the extent to which AI generated influencers will compete with human influencers, with additional contemplations around the need for regulation, transparency, and authenticity. What will be the impact of virtual influencers on consumers? How will consumers interact with virtual influencers? Will virtual influencers interact with real influencers? What rules will be needed in the future to protect consumers (in terms of purchase, well-being, and opinions) and to protect the influencers’ identity (not copied, what about fake identities)?

Next to these brainstorming workshops, participants could try out immersive experiences in a demo workshop held by Antoine GOLIOT from the CETI (Center for Educational and Technological Innovation) with Jae MALONEY from Air France-KLM. Air France-KLM “Embraer Cockpit”: Simulation of being in a cockpit of an aircraft. The trainee could manipulate all the aircraft's buttons and controls and consult the associated documentation; Air France-KLM “Slideraft Training”: Simulation of a ditching evacuation procedure. The aim is to open the aircraft's door, deploy a liferaft and evacuate the passengers safely; WIXAR “Garbage collection safety”: Training program for the Paris city garbage collectors to teach the main safety procedures. (360 videos). Bodyswaps “Non inclusive behaviours” & “Practice providing feedback”: Two training demonstrations on managers' soft skills to improve inclusiveness and well-being within a team. The workshop participants tried out all experiences, and the outcome came out the same: they really felt immersed and enjoyed the technology.

Thank you for your participation!

The conference organizing team

Gwarlann DE KERVILER, Bernadett KOLES, and Lana MULIER

Online user: 3

Privacy