In the technologically evolving environment, AR and VR are no longer buzzwords associated with the gaming or entertainment world. They have emerged as transformative tools, redefining how businesses operate, engage with customers, and train their workforce. AR and VR have presented plenty of opportunities to grow for digital transformation leaders at the forefront of leveraging technology to redefine organizational strategy.
In this blog, we will explore how AR and VR empower business leaders to drive innovation, improve processes, and achieve business goals.
AR/VR in terms of digital transformation
Augmented reality(AR) overlays digital content in the real world, improving users' perception of their environment. For instance, smartphones have furniture placement in your rooms or AR-based manuals for machine repair.
Virtual reality(VR), on the other hand, immerses users in a completely virtual environment with the help of specialized hardware like VR headsets. Applications can range from virtual meetings to immersive online training experiences.
Digital transformation uses technologies to create or modify business processes, culture, or customer experiences. AR and VR are pivotal catalysts in digital transformation by enhancing customer engagement.
How do these tools help digital transformation leaders?
These tools help digital transformation leaders address various business problems and open avenues for a competitive business edge.
- Enhancing customer experience
AR/VR allows brands to engage customers in a more personalized manner. For instance, brands like Sephora use AR to help customers use products virtually. At the same time, IKEA enables customers to visualize furniture in their homes.
Such immersive experiences improve customer satisfaction and reduce the risk of dissatisfaction post-purchase.
- Training experience
VR-based training helps employees gain knowledge and learn techniques in a risk-free environment. Fields like aviation, healthcare, and manufacturing heavily benefit from VR technology for training their employees. On the other hand, AR-based manuals help reduce the learning curve by providing step-by-step instructions to the employees.
- Streamlining operations
AR applications in logistics and warehouse management, such as AR-powered glasses, help workers easily identify where things are kept in the warehouse.
VR-based prototyping helps the design team visualize and test product concepts in a virtual environment, reducing cost and time to market.
- Enabling Remote Collaboration
Virtual meetings facilitated by VR environments create an immersive environment for people to connect, minimizing geographical boundaries.
This is particularly helpful in the post-pandemic hybrid environment.
AR/VR Applications in Digital Transformation
- Product Development and Design
Companies like Boeing and Ford use VR Technology to simulate product designs before creating a physical prototype. This reduces the cost and accelerates the development cycle.
AR also enables real-time collaboration among geographically dispersed teams, allowing them to create 3D models virtually together.
- Immersive Marketing
AR/VR is making marketing immersive. Brands like Coca-Cola have utilized AR/VR to create interactive ads that engage the audience and help them stand apart from their competitors.
- Workforce Training and Development
Companies like Walmart leverage VR to teach employees how to manage the crowd. With VR simulations, employees can practice in a realistic virtual environment, gaining practical skills without any risks. With AR guidance, employees can perform tasks confidently and accurately.
Benefits for Digital Transformation Leaders
VR/AR are not just technological innovations but catalysts for decision-making and leadership. Here’s how digital transformation leaders benefit:
- Data-driven insights: Immersive data visualization helps leaders to make informed decisions.
- Improved Agility: Rapid prototyping and market collaboration ensure businesses can adapt to market changes quickly.
- Enhanced stakeholder engagement: Better alignment with stakeholders as presentations done by AR/VR convey ideas effectively.
Challenges in AR/VR Adoption
Despite their potential and usefulness, AR/VR has its setbacks. Here are the most talked about ones:
- Cost of implementation: The initial costs for hardware and software can be expensive.
- Technical expertise: Developing and deploying AR/VR solutions requires skilled professionals, and you might need to deploy new people.
- Resistance to change: You require strong management strategies, as employees or stakeholders can be somewhat restricted in adopting new technologies and working methods.
- Scalability: Scaling AR/VR technology can be complex for a large organization.
How do we overcome these challenges?
While deploying AR/VR technologies might be challenging, digital leaders can make their way out with these solutions. Let’s understand how you can ease the implementation:
- Cost management
To manage the high costs, businesses can start small, focusing on particular use cases that deliver higher ROI. In some cases, AR/VR technology can reduce infrastructure costs and benefit businesses in the long run.
- Upskilling and reskilling
Investing in upskilling programs for the current workforce can address the need for technical expertise. Moreover, collaborating with AR/VR solution providers will help bridge the skill gaps.
- Change management
Engaging them in an earlier deployment stage can tackle resistance to change. You can familiarize them with the technologies and explain the need to switch to AR/VR.
- Scalability
Companies should prioritize scalable AR/VR solutions that will grow with your company.
AR/VR successful implementation in real life
- Walmart’s VR Training Program
Walmart uses VR to exhibit how the crowd would be on holidays. This immersive simulation improves preparedness and boosts employees' confidence, leading to improved customer service.
- Boeing Aircraft Design with VR
Boeing employs VR to design and test aircraft components virtually, reducing physical prototypes and saving millions in development costs. Engineers collaborate across different environments to streamline the design and development process.
- IKEA’s AR experience
The IKEA AR app helps customers visualize how a particular piece of furniture will look in their homes. This enhances shopping experiences, reduces returns, and builds customer trust.
- Accenture AR boarding
Accenture employees AR to onboard employees by giving them virtual tours and introductions to other facilities. This process helps accelerate onboarding and a seamless experience for the employees.
Emerging trends in AR/VR Technology
The technology is evolving rapidly, and we can see some improvements and evolutions in the next few years. Here are some of the most exciting developments:
- AI-driven VR/AR
AI enhances AR/VR by enabling more innovative and personalized interactions. For instance, AI can adapt to a virtual environment based on human interaction and behaviour.
- 5G- powered AR/VR
The rollout of 5G technology is addressing latency issues, making ARVR applications faster and more reliable. This opens doors to immersive remote work opportunities.
- Wearable AR/VR devices
AR glasses and untethered VR headsets are gaining popularity. This makes AR/VR wearable devices more comfortable.
- Mixed Reality
Mixed reality (MR) is the amalgamation of AR and VR, wherein digital and physical objects interact seamlessly. It has potential applications in industries like healthcare, education, and manufacturing.
AR/VR technologies are no longer emerging; they are potent tools changing the course of digital transformation. These technologies can help leaders transform their organizations and elevate them to new heights. By addressing the challenges strategically, industry leaders can embrace these trends and use them most
