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Siemens aims to pioneer industrial metaverse usage

It is de rigueur for any company to be talking about the metaverse these days, but for German engineering firm Siemens, it is becoming something of a crusade. Following up on its announcement of a collaboration with Nvidia in June this year to “enable the industrial metaverse”, Siemens now seems to have gone all-in.

“We don’t claim that we know what the metaverse is, but we have an idea of what it could be and we want to shape it,” says Peter Korte, chief technology and strategy officer at Siemens, speaking from the company’s Siemensstadt industrial complex in Berlin.

Korte is a slick operator and he is smart. He knows that if Siemens can plant a flag in this space early enough, it will only add to the business’s own transformation plan to become a more digital, software platform-driven engineering firm.

Now you don’t get to be a company that celebrates its 175th birthday without knowing a thing or two about pivoting and smelling what is selling. Siemens celebrated this milestone in Berlin recently, with a dinner in Siemensstadt. Among the speakers was German chancellor Olaf Scholz, who said Siemens had “electrified, moved, united and constantly reinvented the world” – and here it is again, up to its old reinvention tricks.

“We believe digital twins are the building blocks for the metaverse,” says Korte, adding that it’s “all about making it real”.

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Should enterprises put the metaverse on ice or is it an opportunity to grow?

Described by IDC earlier this year, as “a networked world that integrates off and online experiences,” the metaverse has had its fair share of attention, not least because one of its foremost supporters is Meta CEO and Facebook founder Mark Zuckerberg. Ever since Facebook bought VR firm Oculus for $2bn in 2014 (the Oculus name has now been phased out with various headsets discontinued) Zuckerberg has been on a virtual world supporting trajectory of hype. The metaverse has been the recent beneficiary of Zuckerberg’s PR push but as Gartner suggests in its recent hype-cycle for emerging technologies, the metaverse is more than 10 years away from being really useful.

Maybe that’s a little harsh. So many aspects of what will make the metaverse a usable entity already exist. Digital twins and blockchain, for example, but it does beg the question, why would these technologies need the metaverse at all? At a time when budgets are being squeezed amid economic uncertainty, is now the right time for investing in the metaverse?

It’s easy to scoff. VR and AR have been around for a long time and although they are fascinating technologies, they have always lacked killer applications outside of the games industry. The metaverse feels as though, for the moment at least, it falls into the same category. Zuckerberg hasn’t really helped. His bizarre Horizon Worlds avatar unveiling triggered derision. Virtual worlds it seems, can polarize opinion.

This is especially true within enterprise boardrooms, where it perhaps matters most. As CB Insights recently found, mentions of the metaverse on public company earnings calls have cooled from a high of over 400 mentions this time last year. It’s a crude measurement but an indication of changing priorities. Boardrooms are too busy trying to work out the size and shape of the impending economic storm to worry about how they are going to operate in and exploit a virtual platform.

Steve Ingram, technology specialist and partner at Deloitte is not surprised. “It still feels like a solution looking for a problem,” he says. “There’s still a lack of digital awareness on boards so they tend to latch onto things, like the metaverse but then you have to start asking questions. What are we going to do and what are we going to get from it? How much is it going to cost and is there any revenue?”

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The E in ESG. Can CIOs lead the charge towards NetZero?

NetZero commitments have always been something of a political football. The UK Tory leadership contest to see who will be the country’s next Prime Minister is a sad example of how it is being used to gain popularity, with either those that believe climate change is real or those that somehow don’t. There is little conviction. The same can be said of a number of large corporations. As a New Climate Institute report found earlier this year, well known brands, such as Amazon, Ikea, Nestle and Unilever seem to be toying with the NetZero idea, perhaps for the sake of marketing and PR.

That’s the problem. How do businesses make real in-roads into reducing emissions and avoid accusations of greenwash? The first step is accepting responsibility and we need leaders that are prepared to stand up and take action. Outgoing UK Prime Minister Boris Johnson’s claim that the UK has “led the world” in tackling climate change is laughable. This and previous governments have made little, if any impact on tackling climate change.

Now, as most of Europe experiences record temperatures, spontaneous house fires and water shortages, the issue is more pronounced. Something needs to happen now and technology leaders can play a significant role in making the changes that can have a real difference. As McKinsey suggests in a recent article, “CIOs face increasing opportunities—and responsibilities—to lead transformation, particularly in achieving net-zero—or carbon negative—climate sustainability objectives.”

Technology is both an opportunity and solution in tackling climate change but it is also a risk. It comes with caveats. As the article continues, “IoT sensors, AI and advanced analytics, and blockchain-enabled technologies can be used in aggregating real-time data and optimizing processes to reduce environmental impact. At the same time, many argue some technology innovations have a cost of use as they boost demand on the power grid; CIOs need to balance those costs against the benefits of these technologies.”

At the recent IoT Solutions World Congress in Barcelona, this “cost of use” was discussed widely in open forums. There was recognition that the solution can also add to the problem, particularly in the area of dark data (broadly defined as the data stored by organisations that has little or no analytical value). While some dark data will no doubt be required for compliance purposes, many firms will be storing large amounts of data that they do not require. As we increasingly shift to automation using IoT sensors to collate data, this is a growing problem that needs addressing.

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How IoT and digital twins could help CIOs meet ESG pledges

“Many local authorities have been in an arms race to declare an earlier net-zero target,” said Mark Apsey, managing director of renewable energy and efficiency company Ameresco, speaking at IoT World Congress in Barcelona in May 2022.

Apsey was talking about the UK’s commitment to being net-zero by 2050 and the role internet of things (IoT) technology and data can play in helping to identify areas where authorities can focus their attention to reduce carbon. But this is far from an easy task.

The problem is scale. Some authorities are setting “hugely ambitious” targets, according to Apsey. Manchester City Council has set itself a net-zero target of 2038, Carmarthenshire County Council in South Wales has set a target of 2030, while Bristol City Council has gone even further. Its 2030 target includes reducing the entire city’s carbon, including private residential and commercial sectors, as well as council buildings and partners.

While all of these authorities have addressed the obvious, such as installing LED lighting, insulation and so on, there are some significant challenges in the IT department. The impact of datacentres has been a concern for some time, and for a while the solution seemed to be cloud-based computing. But, of course, that’s just shifting the problem. Data still has to be stored somewhere, and while organisations look for efficiencies in services, through IoT strategies for example, that data is multiplying. With that comes cost and carbon.

It comes as no great surprise that a recent survey by energy company E.On and The local government chronicle found that 53% of UK councils are not confident about hitting their net-zero targets. The challenge is huge and multifaceted.

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