Article originally published in Bilan
Web3 is a significant strategic investment for businesses, whether they are aware or not of the urgency to engage in it. However, for this investment to be fruitful, it needs to be made strategically.
Behind a new technological horizon, a revolution of value
Web3, or the third-generation web, is a radical transformation of the internet that deeply disrupts its mode of operation, its sources of value, and its economic models.
It introduces a radical departure from its predecessors (Web1 and Web2): it proposes a decentralized web, primarily built on blockchain technology, which enables secure transactions without intermediaries.
Today, Web3 paves the way for major commercial developments for businesses: the development of decentralized applications for payments, decentralized finance or digital identity management, the creation of digital markets through cryptocurrencies, virtual or augmented realities, asset tokenization, and more.
A highly competitive new frontier
In Switzerland, the development of the “Crypto Valley” in the heart of the canton of Zug reached a decisive milestone in 2017 with the creation of the Crypto Valley Association. This has contributed to the strengthening of the sector’s valuation, which reached over 1 billion dollars by the end of 2022.
Switzerland has seen a multiplication of start-ups specializing in crypto-assets, supported by the Confederation and the desire to position the country as a leading blockchain hub for the banking and financial industry.
A strategic investment for strategic benefits
Web3 represents a change of model for many sectors. Among those most affected are financial services, companies specialized in data processing and storage, e-commerce, as well as industries in healthcare, energy, music, media, and gaming.
Even outside of these sectors that are compelled to transition from Web2 to Web3, companies can derive strategic benefits:
- Renewing ecosystems: Web3 allows companies to redefine their relationships with stakeholders (customers, investors, suppliers, partners, shareholders) around greater transparency, autonomous control of their own data, personalized services, and cost reduction.
- Strengthening collectives: Web3, in particular, enables the renewal of internal mobilization approaches. Major names in finance like JP Morgan, HSBC, and Standard Chartered have acquired digital plots on metaverse platforms to enhance their internal interfaces and facilitate collaboration.
- Developing offerings: Web3 helps companies discover new sources of value. For example, Nike’s investment in developing a collection of virtual sneakers brought in approximately $185 million between April and November 2022. The creative and luxury industries have also heavily invested in this field, with virtual collections being sold by Dolce & Gabbana, Tiffany & Co, Adidas, and others.
Leveraging unique assets: the importance of targeted investment in Web3
It is well known that the initial investment in Web3 is costly and requires identifying the best possible approach. That’s why consultants and service providers have a significant responsibility in guiding companies through this transition.
Finding the right lever (customer relations, data usage, transformation of the commercial offering) to initiate a transition dynamic and relying on the added value of each company is essential.
Written by: Mathieu Ragetly, Digital Marketing and Experience EVP and Web3 Program Director