Insights EDU

The Application of Extended Reality in Enterprises

Hannah Boose | Senior Business & Sales Developer | Luxoom

03 Feb 2023 | 6 min read

Extended Reality In Enterprises.

In recent years, the use of XR technologies has become increasingly common in companies. This is illustrated by the European Commission’s forecast that the European Extended Reality (XR) market will grow by €35 to €65 billion by 2025 and that 94.8% of companies predict moderate to exponential growth in the next three years. For a long time, manufacturing companies especially used XR technologies primarily in research and development processes e.g., on product design and engineering. The use of Extended Reality in enterprises like these, helps to visualize products before the start of production and to virtually test them, to a certain extent.

We see that companies are no longer using XR technology exclusively as an internal work tool. Companies also exploit XRs versatility in externally oriented areas, where communication plays a key role. During COVID 63% of companies used immersive technologies to navigate upcoming challenges. Due to severe contact limitations, many of these challenges are caused by limited communication.

The trend can be attributed to the interactivity and immersion of XR technology, its main selling point. Even though it’s more difficult to produce, it’s simply a more memorable way of communicating. In virtual worlds, it becomes possible to show objects and details from all angles and give the opportunity to train personnel in scenarios with unlimited freedom and flexibility. These ideas drive the industry to keep trying to implement XR.

Sales & Marketing

In addition to creating websites and apps, brands are now creating Facebook pages, Twitter profiles, and Instagram accounts. However, this is just the beginning of how they will express themselves digitally. The biggest changes will be seen in the ways users digitally interact with the product and the shopping experience itself. Extended Reality has the potential to transform customer experiences by providing new ways to interact with the brand.

A new standard of product presentation is created. Products can be experienced and tried out spatially without the user physically having them. Nevertheless, very intensive interaction, detailed viewing, and exploration of product functions are possible.

Furthermore, customers can experience remote and exciting terrain through XR. A customer looking for a new production machine can walk through a virtual production environment or even disassemble the machine during his/her decision process.

Audi – Case Study

Audi, for example, uses VR stations during customer consultations at the dealership to display vehicle configurations. The customer is invited to virtually test-drive an individually configured Audi and thus experience the virtual model realistically and in detail. Light and sound effects and the recreation of different times of day make the experience particularly authentic.

Top benefits:

  • Higher engagement & conversion rates
  • Creation of more emotional product interactions
  • Lower costs in sales processes through earlier buying decisions

Network & Collaboration

Remote collaborations have become a key to our daily life. While cameras can help us feel closer, we lose a lot of nonverbal communication like body language, which makes up to 55% of every communication. In this sense, Extended Reality can build these bridges and help us connect, interact and feel closer to our colleagues or clients.

Embracing XR technology in business, the company will be able to offer an unrivaled experience that people won’t forget. They create purpose-driven experiences that educate customers, employees, and investors alike. Virtual Reality (VR) allows users to immerse themselves in another place or time by using computer technology. Augmented Reality (AR) takes real-world objects or environments and overlays digital enhancements onto them for user interaction.

One example is to have employees from various parts of the world meet in a VR room at the same time, allowing them to work together on a project. The users act independently of location and can, for example, meet in virtual office buildings, laboratories, or workshops.

Ford – Case Study

At Ford, employees from all over the world are working together on the design of new vehicles or autonomous driving technologies, at the same time. They meet in Ford’s “Virtual Design Studio” via VR goggles. Interactions are possible via headsets and controllers. With the help of virtual laser pointers, the employees’ avatars can discuss the smallest details of the car.

Top benefits:

– Higher interaction during digital meetings
– Improved common product understanding for collaboration
– Location independence
– Savings in travel time & travel expenses

Training

The potential for XR as a tool for learning and training has been recognized by many industries.

Industries such as manufacturing, retail, and healthcare have all found ways to use XR for training workers in the workplace. For example, in the manufacturing industry, workers can be trained on how to use equipment or tools. In the retail industry, workers can practice their customer service skills with virtual customers. In healthcare, doctors can practice treating patients using an avatar or patient simulator.

XR can immerse workers in high-stakes situations that let them learn—and even fail—without any real-life repercussions. From slicing open virtual patients to scaling virtual heights, the technology is ideally suited to minimizing risk in dangerous settings while creating a reality-like situation.

Those are a few examples of how XR can be used as an educational tool, showing that XR can change the way we work in general. Traditional learning methods sometimes require shadowing an expert during his/her work, which probably will affect the productivity of the expert. With XR, however, this experience can be multiplied. People can learn in their own time and at their own pace through interactive simulations and scenarios.

Case Study – Lufthansa

Lufthansa Cargo uses AR-Warehouse Build-Up Training. Practical exercises for prospective warehouse operators are hardly possible since the warehouse and the required load are usually not accessible to trainees. By using AR glasses, an interactive hologram of a pallet and a vehicle is projected into the training room. The apprentices can work together on the virtual object. Thanks to this technology, failure rates have been reduced from 36 to 7 percent.

Top benefits:

– Higher engagement of employees
– Time and location are independent
– Savings in travel time & travel expenses
– Cost reduction by preventing damage to expensive equipment

Processes, Production & Maintenance

Keeping processes and production running without downtime is essential to the success of a company. And if something does go wrong, it is even more important to take care of maintenance quickly. Be it in your own production, or at the customer’s site.

XR supports the usual work processes to make process steps easier and faster. With the help of smart glasses, relevant content is displayed in the employee’s field of vision. Depending on the department, this may include product information, service instructions, comparison data, or navigation instructions.

Technical remote assistants give a person the ability to see what another person is seeing in real-time without physically being there. This enables the remote assistant to support, supervise, or watch the activity. Through AR annotations, a remote expert can guide the field agent through a repair process.  Thereby, the final users can fix machines without having an expert on-site.

Case Study – DHL

AR data glasses are being used at DHL and are being widely accepted for their functions, ease of use, and comfort. They assist with object recognition, barcode reading, and product, and bin localization. Moreover, workers are guided to the correct pickup location as quickly as possible by the AR glasses.

Top benefits:

– Inexperienced users can perform complex work by displaying detailed instructions
– Productivity and quality increase
– Expert knowledge without having the expert on-site
– Savings in travel time & travel expenses

Conclusion

XR is a technology that offers enormous potential for companies to improve interactions and experiences across business areas. It is a crucial tool for businesses to engage with their customers and employees. The emphasis here is on ‘tool’. However, the focus of the application should be the desired communication and interaction, which is enabled by XR as a tool. If done right, it can improve employee productivity and customer satisfaction.

About the author:

Hannah is driven by ideas and innovation. In her previous position as a venture architect, she experienced how to open up companies to their full potential through technology and innovation. She sees XR as a huge opportunity for companies to make processes more efficient and communication more interactive. However, she believes the biggest challenge in the market at the moment is that many investment-intensive stand-alone solutions are being built that don’t scale. At Luxoom studios, she is currently focussing on shaping the business model for Luxoom’s XR tool and platform, REVELATE XR. It is important for her to develop a product that enables companies to implement central XR strategies, and to set up scalable XR projects.