AR/VR Business Applications

Since the 1980s, the advent of technology has made it possible to remove oneself from the tangible world and immerse in a simulated reality. This groundbreaking development has given birth to Augmented Reality (AR) and Virtual Reality (VR), which have been steadily climbing the ladder of popularity over the past four decades. The journey from their inception to their current state is nothing short of remarkable. According to Ryan Kaiser from Deloitte Consulting, AR is a computer-generated image that overlays the real world, enhancing our perception of reality.

In contrast, VR creates a 3-D computer-generated environment, allowing users to interact within a virtual world. This essay explores the transformative potential of AR and VR across various domains, from entertainment to enterprise applications, underscoring their role in enhancing productivity, training, collaboration, and sales.

The Rise of AR and VR

Many individuals have unknowingly experienced AR in their daily lives. For instance, when watching the NFL on Sundays, the yellow line marking a first down is an example of AR in action. Similarly, in tennis, the computer-generated image determining if the ball landed in play is another instance of AR. What began as a novelty has evolved into a technology with profound implications for businesses. The shift from consumer-centric applications to business-to-business solutions signifies this evolution. AR and VR are poised to increase employee productivity and boost overall profits for companies, marking a paradigm shift in their utilization.

Initially, the gaming community was the primary adopter of AR and VR technologies. However, the landscape has changed significantly. Despite the initial excitement, consumer sales of VR systems like the Oculus Go and HTC Vive have experienced a decline, dropping by as much as 30.2% according to IBC.org. In contrast, corporate investment in AR and VR has reached unprecedented levels. As of 2016, corporate investments had surged by 230% compared to the previous year, with 150 Fortune 500 companies adopting AR and VR for their workforce. The rationale behind this investment surge lies in the untapped potential these technologies hold for businesses. In a survey conducted by paychex.com, 60% of 2,000 employees admitted to wasting an hour or more daily. This disengagement is often attributed to poor communication, low engagement levels between managers and employees, and high turnover rates. AR and VR offer a promising solution to these challenges by reinvigorating the workforce and enhancing overall company revenue.

Enhancing Productivity and Skills

Augmented Reality is leading the charge in improving worker performance. From 2011 to 2016, employee productivity increased by a mere 0.3% annually, a stark contrast to the 3% annual growth from 1996 to 2005. The demand for highly skilled workers in industrial and manufacturing sectors continues to grow, necessitating higher productivity levels. AR plays a pivotal role in bridging the skills gap by providing workers with the tools they need to excel. Companies like General Electric are pioneering this approach by equipping their employees with wearable AR gear. This technology delivers crucial information directly to workers, allowing them to address issues efficiently while keeping their hands free. By eliminating the need to consult manuals, AR significantly reduces task completion time. For instance, Boeing reported a 25% improvement in productivity for wiring harness assembly, while GE Healthcare noted a 46% increase in order completion speed using AR technology compared to traditional methods. Investing in AR technology empowers employees to perform high-skilled tasks with precision and confidence.

Training and Education Revolution

The applications of AR and VR extend beyond productivity to revolutionize training and education, further driving enterprise productivity. VR provides an immersive learning experience, enabling employees to acquire new skills in a realistic environment. The airline industry, exemplified by Japanese Airlines, has embraced VR to train co-pilots and engine mechanics. Previously reliant on basic videos and manuals, this shift to VR offers a more engaging and effective training experience. Healthcare professionals are also recognizing the benefits of VR for both doctors and patients. VR simulations have been shown to enhance information retention. Surgeons, for instance, retained 80% of the information presented in a VR simulation, compared to just 20% when listening to a lecture. This improved retention reduces the need for costly retraining, ultimately saving hospitals time and resources.

Fostering Collaboration and Innovation

Collaboration is a cornerstone of productivity, and AR and VR are breaking down geographical barriers to foster seamless teamwork. One common cause of unproductivity and demotivation is the lack of collaboration. AR and VR technologies enable employees to collaborate virtually, transcending physical constraints. For instance, smart glasses allow employees to receive real-time feedback on tasks or problems they are tackling. At General Electric, employees can collaborate with colleagues remotely, viewing the same information and providing precise guidance. This cross-geographical collaboration empowers employees, knowing they have support from their peers. In the automotive and aerospace industries, AR and VR facilitate collaboration between designers and engineers, enabling them to visualize each other's ideas and concepts. BMW, for example, uses virtual prototyping to design cars, improving the design process and reducing costs. Similarly, NASA employs AR and VR technologies to design the next Mars rover, allowing scientists and engineers worldwide to contribute to its development.

Driving Sales and Customer Satisfaction

Augmented Reality is not just a tool for internal operations but also a powerful driver of sales and customer satisfaction. Companies like Ikea have pioneered the use of AR to enhance the consumer experience and boost sales. By allowing customers to visualize products in their own space before making a purchase, Ikea reduced product returns and saw a staggering increase of 2.3 billion website visits in a single year. L'Oreal, a renowned makeup company, witnessed a substantial rise in sales after introducing an AR experience on their app. This app, launched in 2014, enables consumers to virtually try on products in real-time. The following year, L'Oreal's e-commerce sales reached $1 billion, with 5% of all sales occurring online. The success of AR in driving sales is perhaps best exemplified by Pokémon Go. The app became the fastest gaming app to reach $500 million in revenue, accumulating $1 billion in just six months. Even the 92-year-old candy company PEZ experienced a surge in sales by incorporating AR-based games into their product offerings. The AR-powered game encouraged customers to collect candy codes by purchasing more products, resulting in increased sales.

Conclusion

In conclusion, the evolution of Augmented Reality and Virtual Reality from niche technologies to transformative tools in various industries is a testament to their potential. While consumer adoption of VR may have plateaued, businesses are harnessing the power of AR and VR to drive productivity, enhance training, foster collaboration, and boost sales. The examples discussed in this essay illustrate the diverse applications of these technologies, from improving worker performance and training to revolutionizing collaboration and customer engagement. As we continue to explore the possibilities of AR and VR, it is clear that they have the potential to reshape industries, enhance human capabilities, and create new opportunities for growth and innovation. The future of AR and VR is bright, and their impact on our world is only beginning to unfold.

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