Necessity Trumps Novelty - AR Success in Business can Guide Widespread Consumer Adoption

AR is being utilized at the final stage of the manufacturing process for Newport News Shipbuilding, a company that constructs U.S. Navy aircraft carriers. The company uses AR to superimpose final carrier designs in front of massive ships, so engineers are able to quickly mark steel structures that are not part of the completed carrier. This reduces the inspection process from 36 hours to 90 minutes, a time reduction of 96 percent.

AR is transforming training processes by increasing efficiency and clarifying procedures. In many cases, using the technology is considered to be a better alternative to instruction manuals and leads to more efficient working with fewer costly mistakes. Using AR gives a clear and visual guide that provides real-time feedback to workers for processes ranging from product assembly to machine operation.

After implementing AR within its training, Boeing has seen significant improvements in productivity and quality. The technology walks trainees at the company through how to assemble a wing section with 30 parts through 50 steps. Following the AR training programme, workers were able to finish the assembly process in 35 percent less time than those who were referring to normal 2D drawings. Moreover, the number of trainees with little to no experience who could execute the process correctly in their first try increased by 90 percent.

Other companies are also using AR to a similar level of success. General Electric (GE) is testing voice commands in AR to help factory workers conduct complicated wiring processes in wind turbines. This is already leading to a 34 percent increase in productivity. BP is using AR training to stimulate intense drilling conditions. With the technology, they can guide teams through specific procedures and enable them to practice emergency responses to crises without any risk.

The success of AR in business is being reflected in current and future investments. In 2017, venture capital investments into AR and virtual reality (VR) amounted to $2.1 billion across 276 financings, with 53 AR focused deals or acquisitions. Meanwhile, spending on the AR and VR sector is expected to increase from $11 billion in 2017 to $215 billion in 2021—a huge increase in just four years.

As the capability of mobile devices and wearables advance rapidly, it would be increasingly important for companies to explore ways in which they can integrate AR into their daily operations. The technology has been proven to increase productivity and performance within the many business sectors. Companies not planning for AR technology adoption are likely to struggle in the future against competitors that are.

AR’s current success in business can be used to guide developers to chart the path for its widespread adoption among consumers. Looking at the business experience, the focus has to be on creating compelling and useful applications that allow users to engage with AR daily. The largest gains have occurred in business applications where routine job processes are made more efficient or brought to a higher quality of standard because of AR integration. If consumer experiences from AR achieve a similar level of success, then this will help with its widespread adoption. Just like businesses, the necessity of using AR should always trump the novelty for consumer applications.