OneTwenty1 - Blog

Harnessing the Power of Ecosystems for Metaverse Products: A Keynote by Lisa Watts

Tue, 13 Jun 2023 18:41:45 GMT

As digital landscapes continue to evolve, the quest for creating high-impact products and platforms in the metaverse remains a focal point of innovation. Lisa Watts, CEO of OneTwenty1 and an industry leader in the metaverse sphere, addressed some of these implications with an enlightening keynote at this year's Augmented World Expo.

In her keynote titled "Harnessing the Power of Ecosystems for Metaverse Products'”, Watts elucidated on the vital concept of the network effect and emphasized the critical role strategic partnerships play in driving success in the Metaverse space. The notion that these partnerships aren't merely about increasing user numbers was a key takeaway, and Watts demonstrated that integrating products into existing ecosystems, thus tapping into an already established user-base and adding value to partners, is the primary benefit of network effect partnerships.

Watts furthered this point using the example of Instacart's partnership with grocery retailers. This collaboration allowed Instacart to provide an additional convenience to the existing customer base of these stores, while the stores themselves got the opportunity to reach online shoppers without having to create their own digital infrastructure. This created a win-win situation for Instacart, the grocery retailers, and the end customers.

Drawing on symbiotic relationships such as this, Watts emphasized that the key to a successful partnership strategy lies in identifying and aligning with partners who offer complementary services, share a similar vision, and cater to a demographic that aligns with our own. Such a mutual approach, Watts concluded, can drive the network effect, fueling growth and contributing to success in the rapidly evolving metaverse market.

If you missed the live keynote or want to revisit Watts' indispensable insights, you can watch the full video here:

Watts' perspective provides a pivotal lens for understanding and navigating the complexities of the emerging metaverse space. As the digital landscape continues to evolve, her insights during this presentation will continue to guide us in harnessing the power of new ecosystems for creating impactful metaverse products and platforms.

Unveiling OneTwenty1's Business Model Canvas: A Peek Behind the Curtain

Fri, 19 May 2023 20:56:19 GMT

Read to the end for a free template!

Here at OneTwenty1, we're big believers in the power of strategic planning. One tool that we find incredibly useful in this process is the Business Model Canvas (BMC). Today, we'd like to share with you the theory behind the BMC, our journey using it, and how it helps us stay focused on our unique value proposition and our customers.

Understanding the Business Model Canvas

First things first, what exactly is a Business Model Canvas? The BMC is a strategic management tool that allows you to describe, design, challenge, and pivot your business model. First proposed by Alexander Osterwalder and Yves Pigneur in their book "Business Model Generation," the BMC visualizes nine essential components of a business model that show how a company plans to make money. These components are: Value Propositions, Customer Segments, Channels, Customer Relationships, Revenue Streams, Key Activities, Key Resources, Key Partnerships, and Cost Structure.

The strength of the BMC lies in its simplicity and visual nature. It offers a comprehensive yet easily understandable view of the different elements of a business model, revealing potential opportunities and risks, and helping identify areas of alignment and coherence.

Our Journey Using the Business Model Canva

Creating a BMC isn't a solo endeavor; it requires the collective insights of the team. At OneTwenty1, we approached this collaborative process with a spirit of open communication and an eagerness to challenge our current understanding of our business model.

Here's how we did it:

Customer Segments: We started by defining our target customers.
Value Propositions: Next, we identified the unique values we deliver to these customers.
Channels: We then figured out how we deliver these values to our customers.
Customer Relationships: We evaluated how we interact and maintain relationships with our customer segments.
Revenue Streams: We took a look at where and how our business makes money.
Key Activities: We identified the essential activities our business needs to perform.
Key Resources: We noted the resources that are critical for creating value for our customers.
Key Partnerships: We mapped out who our key partners are that help us deliver our business model.
Cost Structure: Finally, we analyzed our cost structure in relation to our overall business model.

While the process was illuminating, it wasn't always a straight line. We found ourselves circling back to previous components, refining and tweaking as we built a fuller picture of our business.

As you can see from our completed BMC, we provide expert services in product strategy, go-to-market planning, and ecosystem building, leveraging a network of experienced freelancers and technology partners. This exercise has helped us not only to visualize our business model in a coherent way but also to identify areas of opportunity and potential risks.

Wrapping Up

At OneTwenty1, we see the Business Model Canvas as more than just a one-time exercise. It's a living document that evolves with us. As we continue to grow and adapt to changing market dynamics, we revisit and revise our BMC, ensuring it always provides an accurate snapshot of our business model.

We hope our journey with the Business Model Canvas provides insights into how it can be used to align teams, streamline strategy, and ultimately drive success. We can attest to its power, and we encourage other businesses to leverage this tool as they navigate their unique paths in the business landscape.

Measuring Success in Web3: Performance Metrics for the Decentralized Internet Revolution

Mon, 24 Apr 2023 07:00:00 GMT

In the early 1960s, a young academic named Thomas Kuhn proposed a radical new theory on the nature of scientific progress. Kuhn's ideas contended that scientific progress is not a gradual, linear process. Instead, it is marked by periods of standard science interrupted by paradigm-shifting revolutions. In a similar nature, the internet has undergone several shifts, with the most recent being the transition to Web3. This revolution, encompassing a new decentralized internet, is reshaping the way we interact, transact, and build online communities. As all Web3⁴ projects gain traction, it becomes essential to develop new performance metrics that can adequately measure success in this rapidly changing landscape.

Traditional metrics like page views or bounce rates will no longer suffice. Dr. Trent McConaghy, a computer scientist and expert in decentralized technologies, highlights the importance of measuring user participation and contribution to the network's growth. One key performance indicator (KPI) for Web3 projects is the number of active users within a given ecosystem. Active users are those who regularly engage in the platform's activities, such as making transactions, voting on proposals, or contributing to the project's development. Chris Dixon, a partner at venture capital firm Andreessen Horowitz, supports this notion, stating that "In the Web3 era, networks are defined by their users, and their value is proportional to the size and engagement of their user base".¹

Another KPI is the level of actual decentralization within a Web3 project. Decentralization can be measured in various ways, such as the distribution of token ownership or the number of nodes participating in the network. Dr. Emin Gün Sirer, a computer science professor at Cornell University and founder of the blockchain platform Ava Labs, emphasizes the importance of decentralization: "A truly decentralized network is more resilient, censorship-resistant, and better equipped to adapt to changing market conditions".²

In addition to decentralization, token-based economic models are a crucial aspect of many Web3 projects. Total Value Locked (TVL) represents the total amount of capital committed to a project, such as staking tokens for network security or providing liquidity to decentralized exchanges. This makes TVL in a decentralized platform a vital metric for assessing a project's health.

One broader KPI to be considered is Network effects. This phenomenon, by which a product or service gains additional value as more people use it, also plays a crucial role in the success of Web3 projects. Due to this, measuring the strength and growth of these effects is another vital area of research. As mentioned in an article by Chainlink, "Network effects play a critical role in the spread of ideas and the adoption of new technology, and are one of the key considerations underpinning the success of communication and value networks in Web3."³ Related: Harnessing the Power of the Ecosystem: How to Create a Network Effect Around Your New Metaverse Product

Ultimately, measuring success in Web3 requires a rethinking of traditional KPIs and a deeper understanding of the unique characteristics of decentralized technologies. The decentralized internet revolution is still in its early stages, and the metrics we use today may evolve as the technology matures. Dr. Primavera De Filippi, a researcher at the National Center for Scientific Research (CNRS) in Paris, warns against over-reliance on a single set of metrics and encourages developing a nuanced understanding of each project's particular context and objectives. By focusing on active users, decentralization, total value locked, and network effects, stakeholders and developers alike can better evaluate the performance and long-term potential of their projects, fostering a more innovative and successful decentralized internet ecosystem.

Glossary of Terms

Active Users: The number of individuals who regularly engage in a platform's activities, such as making transactions, voting on proposals, or contributing to the project's development.
Example: A Web3 platform tracks the number of users participating in governance proposals or actively staking tokens to gauge the level of engagement and commitment within the community.
Decentralization: The distribution of control and decision-making within a network, typically measured by the dispersion of token ownership or the number of nodes participating in the network.
Example: A blockchain project monitors the distribution of its native token among holders and the number of active nodes in the network to ensure that no single entity has a disproportionate level of control.
Total Value Locked (TVL): The amount of capital committed to a project, such as staking tokens for network security or providing liquidity to decentralized exchanges.
Example: A decentralized finance (DeFi) platform tracks its TVL to determine the level of trust and confidence that users have in the platform's ability to generate value and secure their assets.
Network Effects: The phenomenon by which a product or service gains additional value as more people use it, often measured by the growth and engagement of the user base.
Example: A decentralized social media platform evaluates the increase in user-generated content and interactions, such as likes, shares, and comments, to assess the strength of network effects and the platform's overall value.
Novel Web3 Metrics: As the Web3 ecosystem evolves, new performance indicators specific to the unique characteristics of decentralized technologies may emerge.
Example: A decentralized autonomous organization (DAO) might track the percentage of community members participating in decision-making processes or the number of successful collaborations with other DAOs to assess its performance and impact within the Web3 space.

Chris Dixon, "Why Decentralization Matters," Medium, January 21, 2018, Accessed April 20, 2023. https://cdixon.org/2018/02/18/why-decentralization-matters
Emin Gün Sirer, "Decentralization in Bitcoin and Ethereum Networks," Hacking, Distributed, July 15, 2016, accessed April 20, 2023. https://hackingdistributed.com/2018/01/15/decentralization-bitcoin-ethereum/
“The Importance of Network Effects in Web3,” Chainlink, April 19, 2023, accessed April 20 2023. https://chain.link/education-hub/web3-network-effects
Gavin Wood, "What Is Web 3?" Coindesk, accessed April 20, 2023. https://www.coindesk.com/layer2/2022/01/04/what-is-web-3-heres-how-future-polkadot-founder-gavin-wood-explained-it-in-2014/

How to choose the right sales channel for your B2B product?

Mon, 13 Feb 2023 20:17:43 GMT

By Lisa M Watts

One of the most common conversations I have with clients is about deciding how they should go to market with their product offering. The first step is always to have a clear product strategy and messaging. But once you feel confident in your plan, choosing the right sales channel strategy for your immersive product, whether hardware or software, is crucial to the success of your product in the marketplace. There are several types of sales channels available, each with its own pros and cons. Let's take a look at the most common types and their advantages and disadvantages specifically for B2B and enterprise focused tech products.

1. Direct Sales
Direct sales involve selling products directly to businesses through your own sales team. This type of sales channel is often used for high-end technical products, such as enterprise software or high-tech hardware, as businesses typically require detailed technical demonstrations and personalized support. The advantage of direct sales is that it allows for a personal relationship to be built with the customer, which can lead to more trust and a higher likelihood of repeat business. Direct sales also allow for hands-on sales demos and the opportunity to answer questions and address concerns on the spot.

Building a great direct sales can be time-consuming and expensive. Each sales person can only be successfully focused on only a handful of customers at a time which can result in a very slow sales cycle. Scaling can also take more time as you will be limited to the team you have on hand which is especially challenging if you are targeting a large, global market. Large companies may also be hesitant to onboard a smaller, untried vendor, which is where a channel sales or system integrator partner can be helpful.

Here at One/Twenty1, we are focused on emerging technologies, which come with additional challenges when training and building your own sales team. It is especially important with these sorts of products to make sure you have sales people with existing relationships as well as hands-on expertise.

2. Online / E-Commerce
Online sales involve selling products through a B2B e-commerce platform or online marketplace. This type of sales channel is often used for software products (i.e. SaaS), as they can be easily downloaded and installed, and for hardware products that are less complex and don't require a demonstration. Online sales allow for a wider reach, as businesses can purchase products from anywhere in the world (be sure to be aware of local regulatory requirements). It is especially important when selling online to reduce friction and be responsive. The more quickly a potential customer can execute a transaction (without having to endure a "call for a quote" meeting with a sales person), the better.

On the challenge side, the lack of personal interaction can make it more difficult to build a relationship with the customer and address any questions or concerns they may have so having a robust and responsive customer support function is vital. We've all tried to get customer service from a digital only support team and the frustration is real!

3. Channel Partners
Channel sales involve selling products through partners, such as resellers or value-added resellers (VARs), who then sell the products to businesses. This type of sales channel is often used for technical products, as partners can provide technical support and training to customers. Channel sales also allow for a wider reach, as partners often have a large network of businesses they serve. Many of these businesses have long and complex vendor onboarding processes which resellers have established. The value for a business is that they can deal with a smaller set of vendors who then can source products and services they need from across the marketplace without having to negotiate individual contracts, one vendor at a time.

Keep in mind that reseller partners also need to get paid, leaving less profit for your company. Often this cost can be easily justified when compared to the cost of maintaining a full time sales team or the effort required to reach potential customers. They also may not want to have you competing with them so be sure to be aware of potential "channel conflict." And while you might have less control over how the product is marketed and sold by the partner, doing a good job of defining clear product messaging and supporting materials will go a long way to ensuring your product is correctly represented.

4. System Integrators / Value-added Resellers
System integrator (SI) sales involve selling products through SIs, who provide customized solutions to businesses by integrating multiple products and services. This type of sales channel is often used for complex technical products, as system integrators can provide a comprehensive solution and technical support to businesses.

As partners, SI sales can sometimes be time-consuming and expensive, as SIs may require a significant amount of customization and support. In addition, system integrators may take a significant portion of the sale price, leaving less profit margin on your product. So it is imperative to choose the right SI partner, one that has a proven track record in your industry, has access to the customers and markets best suited for your products and knows how to scale. The right partnership can be a huge asset not only to you but also to your future customers and their confidence in your ability to deliver what they need.

In this video, a16z general partner Ben Horowitz shares his way of thinking through a simple formula that can help you decide your sales sales strategy as a function of your product (what it is) and your target market (your customers).

You can read Ben's full post online, including a detailed explanation of the formula, on a16z's website.

At the end of the day, the choice of sales channel for your company will depend on the type of product, the target market, and the resources available to the company. Direct sales may be the best option for high-end technical products, while online sales may be the best option for software products. Channel sales may be the best option for technical products that require technical support and training or whose main customers are larger, Fortune 500 companies, while system integrator sales may be the best option for complex technical products that require a comprehensive solution. It is important to consider the pros and cons of each type of sales channel and choose the one that best fits the needs of your business and product.

Whichever sales strategy suits you and your business best, having a very clear product and go-to-market plan is key. You'll need to be prepared to let your "baby bird leave the nest" so invest up front in order to plan for long term success. Not sure which strategy will work best for your product? Get in touch and let's come up with a plan that meets your business needs.

The Making of Intel's VR Booth for CES 2018: A Retrospective

Tue, 03 Jan 2023 19:03:41 GMT

As we head into CES 2023 this week, the metaverse remains a hot topic. There are several tracks dedicated to the topic and there is even a Gaming, Metaverse and XR sector in LVCC Central Hall anchored by the likes of Microsoft and Magic Leap. Back in 2018, a team of innovators got together to show what the future of an event like CES could be by utilizing immersive technology in a way that many had not seen before. The concept of digital twins and VR events now seems commonplace, but when Intel and Sansar created a digital twin of Intel’s CES booth in VR for CES 2018, it was revolutionary.

The CES Booth experience was produced by Lisa M Watts, who headed up Immersive Marketing for Intel at that time. While Watts has since gone on to form her own company, One/Twenty1 Immersive, she remembers the project as one of her favorites in her long tenure at the company. “There was never a question that we would do this project with Sansar at that time. The capabilities of the platform to deliver a visually stunning digital twin of the Intel booth, along with several VR-only extended experiences, and the opportunity to have visitors experience it from all around the world without traveling to Las Vegas was something that I knew we just had to do,” says Watts. “Looking back on the project through the lens of what is happening today, well, it just seems a bit unreal. Clearly, we were leading into the future.”

To create the project, Watts worked closely with the studio team at Sansar, especially the former Sansar studio lead, Jason Gholston, and then Lead Environmental Artist, Mario Wagner. The mission for the project was straightforward… Create a scale version of the Intel Booth within the Sansar environment and represent as many of the demos as possible. Starting with the blueprints and the digital concept art directed by Intel’s visionary event producer, Victor Torregroza, the team painstakingly worked through the recreation. The timeline allowed on the entire project was extremely tight, approximately 8 weeks from start to finish… and it didn’t just include the booth.

While it wasn’t technically possible to replicate all of the interactive demos included in the real world Intel Booth, the VR version provided some interesting opportunities to “extend reality” that the team took advantage of. In the entry to the booth, the team recreated the acrylic transparent vehicle that in the physical booth featured sensors that responded to a visitors presence and showcased the technology used to enable that particular feature. The digitally recreated car features interactive elements that replicated the information in order to convey the same messages.

Digital Twin of Acrylic Car

Real World Acrylic Car in the 2018 Intel CES booth
photo credit Intel Corporation

Another stunning addition is the Intel Processor walkthrough. In this space, the visitor arrives inside a PC and travels through a CPU, encountering all the different components that make it function. Taken from a set of 2D schematics, technical artist Gordon Henson re-imagined the the chip in 3D delivering a unique, “Intel Inside” look at the mysterious brain that powers so many of the world's computers.

2018 was also the year that the Steven Speilberg directed “Ready Player One” movie was released and one of the “easter eggs” in the Intel CES virtual booth is a portal through which visitors are transported into one of the most iconic locations in the Oasis, Aech’s Garage. This part of the project was made possible by HTC and Warner Bros, leveraging the digital movie assets from Industrial Light and Magic. “Optimizing the film assets for Sansar was a fascinating challenge. If the richly detailed visuals of Aech's Garage weren't preserved it would be cut from the Intel virtual booth. Fortunately, the Sansar Studios team did a masterful job. The result provided eager film fans a first-of-its-kind opportunity to freely explore a visually stunning shooting location prior to the release of the film,” says Gholston.

One final detail was developed, exclusively for the CES opening keynote by then Intel CEO, Brian Krazanich. Mr. Krzanich invited Gary Shapiro, president and CEO of the Consumer Technology Association (CTA)™, to tour the booth during the keynote. In order to make this possible, the Sansar team created custom avatars for Mr. Krzanich and Mr. Shapiro. Don’t take our word for it, watch the replay here! In order to further replicate the in person experience, the Intel team staffed the digital booth with virtual brand ambassadors, powered by Intel employees all over the world. The employees' avatars were dressed in the same clothing that their real life counterparts in Las Vegas were wearing and were available round the clock to meet and greet virtual visitors.

“I predict these types of VR experiences will within the next decade become natural extensions of how we come to know and experience our human existence. VR worlds ignite our imagination and inspire our creativity,” said Frank Soqui, former VP at Intel, in his blog highlighting the project (original post no longer available). Says Watts, “None of us could have had any idea how much the pandemic was going to accelerate interest in immersive tech and the metaverse. But to see the innovation and imagination of the creative and tech communities over the last few years has been so inspiring. What will we be able to bring into existence in 2023 and beyond? All I know is that it will be amazing!”

Credits:
Jason Gholston
Mario Wagner
Omar Sancristobal
Colleen Larson
Gordon Henson
Kyle Vossler
Colin Fix
Sam Juarez
Chris Bonura
Torley
Howard Hsu
Zhi Chen

If you build it, will they come?

Fri, 09 Dec 2022 16:20:36 GMT

Harnessing the Power of the Ecosystem: How to Create a Network Effect Around Your New Metaverse Product

Posted by Lisa M Watts

Where are all the metaverse users?
In October of 2022, metaverse pioneers Decentraland and The Sandbox were widely panned by the media for not having very many active users. Around this same time Meta announced earnings were down, the company would be laying off employees but that investment in the metaverse would continue. Headlines screamed about the coming doom: Metaverse Dream Dead in the Water as Facebook Fires 11000 META Employees and Meta’s empty metaverse. In the digital age, the value of a platform or service is measured in the number of participants and the media is clearly skeptical about the value of metaverse related offerings, as was clear in journalist Vince Chadwick's recent tweet.

I’m here at the “gala” concert in the EU foreign aid dept’s €387k metaverse (designed to attract non politically engaged 18-35 year olds — see story below). After initial bemused chats with the roughly five other humans who showed up, I am alone. https://t.co/ChIHeXasQP pic.twitter.com/kZWIVlKmhL
— Vince Chadwick (@vchadw) November 29, 2022

It can take years to build a loyal user or subscriber base and as the EU learned, it’s not sufficient just to build it. Roblox, which is seen as a shining example of a successful on-ramp to the metaverse, was formed in 2004 and released in 2006, making the game 16 years old. Fortnite, building on Epic Games’s overall success in the gaming industry, was released in 2017. While both of these games have extensive user bases, they have been diligent about growing their ecosystem of partners.

This post focuses on how to leverage a partner ecosystem to increase the value of your metaverse product or platform as a critical component of creating what is generally referred to as the network effect.

What is a Network Effect and why does it matter?
Robert Metcalfe, sometimes referred to as the “Father of Ethernet,” is credited with defining network effects in this formula, known at Metcalfe’s Law.

Value of a network = Number of Users²

A recent post by Carolyn Blanton on Investopedia, give us the following definition:

“The network effect is a phenomenon whereby increased numbers of people or participants improve the value of a good or service. The internet is an example of the network effect…As the internet experienced increases in traffic, it offered more value, leading to a network effect.”

There are plenty of articles about how to take advantage of network effects to grow your business (I have linked a few down below) but in the end, it all comes down to delivering value.

What tactics can be employed in order to leverage your partner ecosystem to add value?

"No Man is an Island" - John Donne
Going it alone is certainly doable, if you are very lucky or have unlimited time and money. But for most platforms or products that rely on the number of active users, working with and scaling through partners can drastically improve time to market, create value-add for users and enable you to add capabilities more quickly. As you develop your partner ecosystem strategy, keep the following in mind:

Design your product with partners in mind and provide access to the features developers need to unlock the value of your differentiated capabilities. Consider licensing code from partners to get to market faster and create a complementary collaboration. Clearly articulate the value of your product to partners and users. Work with your partners to align on your joint story.
Embrace open standards. Interoperability and the ability to service users across multiple devices (mobile phones, PCs, wearables) helps you meet the users where they are. It also enables technology partners to connect their services to your offering without having to learn new skills. When a standard doesn’t yet exist, as is the case in many Web 3.0 projects, keep a close eye on the standards bodies who are driving standards efforts and lend your support.
Leave room for partners to innovate. Many times the best ideas for using your product or platform come from the ecosystem. So try and avoid being overly narrow in your use case definitions when working with developers and tech partners. Instead focus on clearly explaining the actual functionality. Of course, if your product is finely tuned to do one thing very well, be sure to be clear about that as well.
Be strategic. Align the goals and objectives of the partnership with the strengths and capabilities of each partner and identify areas where they overlap. This enables the partnership to leverage the strengths of each partner and provide mutual benefits, helping both parties achieve their goals and stay competitive. Partnerships can also help mitigate risk and provide a competitive advantage by accessing new markets and revenue streams.
Theory of abundance #WAGMI. In the context of ecosystem partnerships, the theory of abundance suggests that when one partner succeeds, it can benefit the other partners as well. For example, if one partner develops a new technology that helps it grow and prosper, this success can also benefit the other partners in the ecosystem by creating new opportunities for collaboration and growth. In this way, the success of one partner can be shared by all partners, creating a win-win opportunity for everyone involved.

As the metaverse continues to evolve and expand, it is becoming increasingly important for companies to think strategically about how they can create a network effect around their products. By harnessing the power of the ecosystem, you can drive adoption, engagement, and growth, and position your company as a leader in the rapidly-evolving world of metaverse technology. With the right approach and the right partners, you can create a powerful competitive advantage that will help you succeed in this exciting and rapidly-changing market.

Related Articles

What's in a name?

Mon, 07 Nov 2022 08:00:00 GMT

Photo Creduit: By JMortonPhoto.com & OtoGodfrey.com, CC BY-SA 4.0

"In the Back to the Future franchise, the DeLorean time machine is a time travel device made by retrofitting a DMC DeLorean vehicle with a flux capacitor. The car requires 1.21 gigawatts of power and needs to travel 88 miles per hour (142 km/h) to initiate time travel." Wikipedia

And more recently, the DeLorean made a comeback in the move "Ready Player One" when Parzival acquires one in a Back to the Future quest.

When Lisa was at Intel, her teammates in IT Engineering nicknamed her 1.21 (one point twenty one) in a nod to her last name (Watts) as well as the fact that she was always trying to push the envelope on technology. In the early days of the World Wide Web, she served as one of the first webmasters for the company, taught HTML coding classes during her lunch hours and created the very first web-based application, a monitoring tool for the company's global dial-in remote access infrastructure.

With this history in mind, it just seemed logical to choose One/Twenty1 Immersive as our name. The Back to the Future DeLorean with Doc and his flux capacitor will forever reign as the iconic symbol of innovation and the drive toward the future.