Ensuring digital trust is critical as emerging technology risks remains high on the radar for tech companies
Technology company leaders frequently face risk, given their products often challenge conventional norms and create new paradigms. With emerging technology like the metaverse having the potential to disrupt and change the way we work, ensuring digital trust in these new technologies is important. According to the KPMG Technology Industry CEO Outlook survey, emerging technology risk has consistently ranked as one of the top threats to growth for technology companies.
The metaverse is the latest emerging technology to challenge tech company leaders. Use cases are also developing, but for technology companies both in Singapore and globally, the top near-term ones (present to 3 years out) centeraround employee training and collaboration, Internet of Things with metaverse experiences, and digital twins. Download our report for more findings for global executives' perspectives on the metaverse's use cases and their outlook.
In a recent study of 767 technology, media, and telecommunications (TMT) executives conducted by Forrester Consulting on behalf of KPMG International, many respondents appeared reluctant to invest heavily in the metaverse in the near term.
TMT leaders are, however, more bullish about the metaverse’s longer-term potential.
6 in 10
believe the meatverse will have a huge impact on consumers and buisnesses. Three out of 10 believe it is the future of human interactions.
In the five- to 10-year outlook,
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, December 2022
How to ensure that digital trust is an integral part of the gameplan?
While the metaverse has a wide variety of use cases, none of them would take off successfully without digital trust. How can businesses in Singapore be seen as the gold standard when it comes to digital space interactions?
To effectively establish digital trust, it is crucial for organisations to prioritise it throughout their entire operations.
- Plug the gaps - Before adopting new technology solutions, companies should conduct an audit to identify areas that require improvement. By setting clear objectives and exploring the metaverse for suitable solutions, businesses can not only avoid unnecessary expenses but also position themselves as digitally-forward.
- Diversifying risk - Transactions in the metaverse heavily rely on non-fungible tokens (NFTs). However, the lack of sufficient regulations governing NFTs poses risks such as potential unrecognised value or loss if a platform shuts down. Diversifying investments and exploring alternatives can help mitigate these risks and instil trust among shareholders and investors.
- Extend digital trust to the entire network - Digital trust must also extend to the company's suppliers and stakeholder network. This could involve onboarding vendors with the necessary data security certification, and ensuring they adhere to an internal code of conduct that safeguards against fraud and loss. This becomes especially important in the absence of metaverse-specific regulations until regulatory frameworks catch up. Currently, there are no specific regulations targeting the metaverse in Singapore. However, the Singapore government is studying the implications of these new technologies, focusing on areas such as online safety and IP protection.
To enhance their digital capabilities, many countries, including Singapore, have been forging global ties and partnerships in areas such as digital trade and cross border data flows. However, the region lacks a common framework that ensures interoperability and establishes guardrails for the digital economy.
This gap presents a unique opportunity for Singaporean firms. By collaborating with overseas counterparts, businesses can leverage the best practices adopted by these partners. Combining this knowledge with Singapore's deep understanding of the Asian market, businesses can develop tailored solutions and strategies to cater to Asia's digital infrastructure.
By actively participating in international partnerships and drawing on the expertise of its global counterparts, Singapore can solidify its position as a pioneer in digital trust within the metaverse.