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The potential for consumer (and business) impact from augmented reality (AR) is significant, making it one of the hottest topics for business leaders. Among enthusiasts, AR is a promising new technology that can help improve both the way the business operates and the way the consumer experiences products and services. For many, however, it remains a concept that has not become a reality. To help shed light on the subject, I provide five must-read articles below.
What is augmented reality?
According to Ronald Azuma (2006), augmented reality “allows the user to see the real world, with virtual objects superimposed or composed with the real world”. Basically it combines the real world with technological improvements to create new knowledge and experiences. Porter and Heppelmann (2017) suggest that “AR transforms volumes of data and analysis into overlapping images or animations in the real world.” While technology still faces many challenges, AR remains poised to reshape the current landscape of human life enormously.
Article 1: “A Manager’s Guide to Augmented Reality” by Porter and Heppelmann (2017)
Although AR is in its infancy, spending will reach $ 60 billion by the end of this year. It will affect everything from how we learn to how we work and how we collaborate and make decisions. The way RA will increase capabilities is by improving: 1) visualization (eg, making it easier for healthcare providers to “find” veins), 2) training (eg, machine operation can be taught) using 3-dimensional holograms instead of the usual ones used 2-D representations) and 3) interaction (for example, using smart glasses, a retail employee could walk through a row of products and visualize the one-gram plan and identify out-of-or-out-of-stock products of place without lifting a finger). When the promise of AR is delivered, there are many benefits, including: increased speed, increased accuracy, faster learning and capacity development, more consistency between properties / stores / warehouses, a more engaging consumer experience, and ultimately , better financial results.
Article 2: “Augmented reality: the past, the present and the future” by Interaction Design Foundation (2018)
This article provides a good overview (in a 5 minute read) of the history of AR. They claim that it was started by a cinematographer named Morton Heilig in 1957 who invented the Sensorama (think of a visit to an amusement park where you enter a dark room to watch a short clip and are provided with a multi-sensory experience through movement, smell and sound). The goal was to overlay sensory elements to create a more moving experience. The authors then provide an overview of the current state of AR, essentially how and where they are used to affect operations and experiences.
Item # 3: “The current reality of augmented reality” by Shelly Palmer (2018)
“Augmented retailing” has become a potential marketing tool for companies like IKEA, Wayfair, Lowe’s and Williams Sonoma. As an illustration of how this can change the consumer experience, consider the Google Translate app. Press the camera button, point your smartphone at something written in a language you don’t speak (for example, a map of the subway station), and generate an instant translation. In 2019, AR headsets are expected to outperform virtual reality headsets, which currently dominate the sales market. Apple and Google project substantial growth in the use of AR software on their smartphones and other devices by 2020. And more companies (including Facebook, Amazon, Samsung, among others) have reported significant investment in AR.
Item # 4: “What is augmented reality, anyway?” by The Conversation (2018)
Although AR offers several innovative opportunities, the field still faces many challenges that prevent technology from becoming a staple of society. The article points out three main challenges: 1) there are hardware challenges, in particular a short battery life and difficult usability in some contexts, 2) the lack of real versus theoretical applications (i.e. more use cases are needed ) and 3) more innovators and users are needed to drive efficiency. Finally, and most importantly for marketers, AR merchandising for consumers has failed to distinguish technology / functionality or differentiate AR from virtual reality. People may not recognize augmented reality even when they are using technology in their product(Note: As a marketer, I’m not sure it matters if the consumer knows it’s AR, only that they value the benefit that the technology provides.)
Item # 5: “Augmented reality for good” by Christina Crawley (2018)
AR, according to the author, can play a critical role in society, especially for nonprofit organizations seeking to raise awareness of important charitable causes. For example, the British National Service delivered a successful AR campaign for National Blood Week 2016. Using computer-generated imagery, this campaign allowed viewers to experience how their blood donation might affect and ultimately instance, save another person’s life. AR can improve current methods of nonprofit marketing by creating engagement, empathy, and action. As AR’s business functions advance, the social sector also benefits from the ability to create powerful nonprofit campaigns to promote important charitable missions.
Special thanks to Wilkerson Anthony, a graduate of the University of Virginia McIntire School of Commerce (dual major in Finance and Economics) for his help with this article. I had the pleasure of working with Wilkerson for four years as he helped me on a series of research projects. Few people really love the research process: the often difficult and tedious job of encoding data, all for the reward of unearthing a hitherto unknown vision. Wilkerson is one of these few. He will be missed, but one day I hope to see him again at UVA as a teacher.
References
1. Azuma, Ronald T. (2006), “An augmented reality survey” Presence: telemarketers and virtual environments, 6 (4), 355-85.
2. Crawley, Christina (2018), “Augmented Reality for Good” com.
3. Interaction Design Foundation (2018), “Augmented reality: the past, the present and the future” Interaction-design.org.
4. Palmer, Shelly (2018), “The current reality of augmented reality” Ad age.
5. Porter, Micheal E. and James E. Heppelmann (2017), “Why every organization needs an augmented reality strategy” Harvard Business Review, (November December).
6. Speicher, Maximilian (2018), “What is augmented reality, anyway?” The Conversation.com.
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