AR & VR New Engagement Models

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01
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Part
01

AR/VR: Market Use/Challenges

This research presents the market use and challenges facing AR/VR technology. Gaming, education, retail, and tourism are some industries that have already implemented this technology. There is still potential in the growth/expansion of its implementation within the next few years. Challenges here include smartphone competition, missing technology, and a poor user interface. Over the years, customer anticipation has built up. Because of these challenges, AR/VR implementation is not yet ready for mass adoption.

MARKET USES

Gaming

  • Most people remember the viral Pokémon GO as the first AR game in the industry. Oculus Quest was the first platform that built everything into one system. This game is expected to drive demand for VR gaming, and by the end of 2020, the revenue is estimated to reach $22.9 billion. Experimenting social gaming scenarios for both AR and VR is the focus of top development teams.
  • This technology has great potential for companies in the gaming industry by either offering subscription purchases or by selling advertising sections to other brands. Additionally, this technology would be a great addition to arcade centers, as they can set up AR/VR escape rooms. Adding several rooms that are interconnected with a story line can be exciting to users, therefore, attracting customers.
  • VR games could also be used in the fitness market where people can use this technology to work out. Additionally, it could also be used to participate in sports, or even begin a major sports league.

E-Commerce and Retail

Tourism and Travel

Education and Training

  • AR and VR technology present unlimited possibilities that can drastically improve the teaching and learning process as it delivers realistic simulations within a safe environment.
  • This platform allows students to experience 3D images, witness scientific breakthroughs, and even interact with various objects. Training simulators are already in use across various industries such as aviation, medical, military, among others. Using this platform reduces cost, boosts retention, and improves performance. Interaction with other students and educators via this technology enhances the experience.
  • Institutions could add a AR/VR section that would capitalize on a 3D immersive experience from the content in books and the library's video content.

CHALLENGES

3D Design Interface

  • User interface design is one of the main hindrances to wide adoption of this technology. As this technology is fairly new, there are not enough experts/skilled people to overcome the obstacles faced by 3D interface design. The design process is difficult and expensive.
  • Additionally, designers are faced with the challenge to reduce eye strain and sound disorientation that is caused by using these devices. This will discourage purchases and massive adoption.

Key Technology Elements Missing

Smartphone Competition

  • Before customers move to AR and VR, they will still default to using their smartphones because of its convenience and familiarity. For this reason, smartphone AR will most likely be at the forefront of this industry as the hardware is widespread and it has a strong developer base.
  • With time, people may get tired of holding up their smartphone to activate the AR experience. This inconvenience could pave the way for hands-free AR HMDs. According to Gartner, it is only after 2020 that these devices are predicted to come into market.

Research Strategy

Our research team was able to identify the market uses of AR/VR from Onix Systems, a tech company. The challenges were identified in a Gartner report. In this research, we have provided a diverse list of market uses and provided challenges that would demonstrate that this technology is not yet ready for mass production and adoption.
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Part
02

AR/VR: Banks/Merchants Case Studies

This research provides insights into how Capital One and Citi Bank implemented AR/VR technology. One company improves the customer experience while another makes company processes easier.

Case Study #1: Capital One

  • Capital one has implemented the use of augmented reality by creating an app that is specifically tailored for car loans. The app, Auto Navigator, allows users to access the retail showrooms.
  • When users point at a specific car, its details are displayed on the screen: model number, year, and make of the car. With this app, users can pre-qualify for a loan, which is customized based on eligibility, financial health, and preferences.
  • This app and the car loan services offered by this bank was published in the US News site that provides insights into cars. According to a survey conducted by the bank, 86% of the respondents believe that technology has improved the search for a car and 78% believe that they are now more informed on the details/history of cars.

Case Study #2: Citi Bank

Research Strategy

This research team was able to identify banks that have implemented AR/VR technology. With support from other sources such as news outlets, company websites, and industry reports, we have presented insights into these banks. This research team was able to provide insights that demonstrate that these implementations were a success. This research team was unable to determine the cost of development. We were also unable to identify the developer/designer of this application. We assume that this information may not be publicly available for security reasons.
Part
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Part
03

AR/VR Government Concerns

This research was unable to identify any politicians that aired concerns of this new technology. On the contrary, politicians and leaders view this as an opportunity to connect with people. The insights below provide examples of how this technology has been used in politics and related activities. It also provides insights into the call for regulations to protect the end user/consumer.

HELPFUL FINDINGS

Media/News Outlets Reporting on Elections

A Tour of the White House

  • Before their departure from the White House, Barack and Michelle Obama hosted a tour. This was a 360 degrees recording that anyone could step into with a headset. This was a peek behind the scenes of a politician.
  • This experience revealed the human side of political leaders, making them more relatable to the average person. It brings the White House to those that may never step into it.

Privacy and Security

Research Strategy

This research team was unable to provide concerns about AR/VR from the perspective of a politician or the government. History has shown that politicians would like to consider themselves progressive, supporting new ventures across industries, like John F. Kennedy’s early appearance on TV in the sixties. Additionally, AR and VR technologies are not yet ready for mass adoption, and are therefore not a major occurrence that would need the attention of leaders. Our analysis of news reports, industry reports, surveys, and company blogs shows that this information is not available. Our next-best option was to provide information on any interaction of this technology with politicians, the government, or leaders.
Part
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Part
04

AR/VR Hardware

This research presents insights into hardware used in VR/AR. This research determined that there are input/output and processing devices. We have provided insights into these two types/categories and also presented four AR/VR devices that are already in the market and presented their current cost estimates.

Personal Computer (PC)/Console/Smartphone

  • This hardware device is used to process input and output and to power the production. This is a vital part of VR systems as it powers the content creation as well, which is what users see in the virtual world.
  • Although the hardware would be considered easy to find, the catch here is the VR content. More information on the challenges related to VR mass adoption is presented in a research task within this project.

Input/Output devices

BRANDS AND DEVICES

Google Cardboard

Google Daydream

HTC Vive

Microsoft’s HoloLens

Research Strategy

This research was able to identify the main types of hardware and provide examples as well. We have also presented the estimate cost. The best and clearest platforms are more expensive. Additional insights and comparison of devices based on features can be found in this source.
Part
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Part
05

AR/VR Development Companies

Next/Now, 4Experience, CemtrexLabs, and Treeview.studio are some leading companies that offer VR/AR services. This research presents an overview of their services and a cost estimate.

NEXT/NOW

4Experience

  • 4Experience aims to revolutionize how brands/companies interact with their customers, and to be a global leader in this endeavor. This B2B company uses its team's passion to solve real-life challenges by working closely with their clients and partners. Products and services are developed with a global mindset.
  • This team is highly collaborative and synchronized, producing results that would not be possible to do as individual experts. Teamwork ensures that the best and most effective solution is implemented.
  • The team comprises developers that are skilled in VR content development, Videos 360, and AR content development. The percentage of the team that is skilled in these ares is 91%, 72%, and 89%, respectively.
  • This company is located in Bielsko-Biała, Poland.
  • The estimated minimum project cost is $5,000 and their average hourly rate is $25 to $49.

CemtrexLabs

  • CemtrexLabs aims to enhance the interaction between people and brands by doing things differently. The company aims to solve challenges that will arise in the future by disrupting the status quo, by arming brands with digital revolution.
  • The design process has four stages: discovery, design, development, and deployment. At the first stage, the company draws out a road map and strategy documentation that is built from the company/client/brand goals.
  • The second stage determines the flow design and wire frames that are critical in developing technical architecture documentation. The third stage consists of two-week sprints and a complete website/mobile app MVP, which ensures that the client is informed on the progress and involved in the process. The last stage comes with free support for two-weeks after completion and additional support options beyond that.
  • The company is located in Brooklyn, New York and is estimated to have 273 employees.
  • The estimated minimum project cost is $10,000 and their average hourly rate is $50 to $99.

Treeview.studio

  • This company believes in experience, whether real or created. As history has shown us, the future is always in the hands of creatives who are daring enough to push the boundaries and venture into uncharted territories. As technology improves in this age of experience, technology will allow humans to immerse themselves into different experiences.
  • The services offered include XR Development, 3D & UI/UX Design, and project management. This company is laser focused on developing software for XR technologies such as coding, design, and project management. These services are exclusively for VR, AR, and MR projects.
  • This company is located in Montevideo, Uruguay.
  • The estimated minimum project cost is $25,000 and their average hourly rate is $25 to $49.

Research Strategy

These companies were identified across two to three sources and are considered leaders in this field. Although we were unable to provide additional insights into features, we were able to provide general information from their products page.
Sources
Sources