Investments in customer loyalty technology and data for the ‘no strings attached’ generation of customers will be essential for the insurance sector. However, according to Virtusa, investments in Augmented and Virtual Reality are less likely to pay off in the long term.

Senthil Ravindran, executive VP and global head of xLabs at Virtusa, is quoted to have said that IoT, a current ‘hot topic’ in tech, is already contributing towards transforming the insurance sector, particularly auto-insurance. As artificial intelligence is starting to integrate into IoT, contextualised data will be able to be gathered from smart street and vehicle devices, allowing businesses to adjust premiums, instantly produce accident reports, and automatically pay claims out, all individualised to each customer.

The article claims that another key driver for insurers will be the changing nature of customer experience, as consumers increasingly prefer services that are easy to integrate into their lives while being tailored to the individual. Ravindran is quoted to have said that insurance companies need to accept that the loyalty of their clients is currently solely based on offered services, therefore insurers need to invest in technology approved by millennials to combat increasing competition.

However, Ravindran claims that a degree of cynicism concerning the maturity and business value of ARVR technology remains, therefore the chance of investors in the sector reaping significant benefits of the tech is low. He is further quoted to have said that insurance customers are unlikely to be as impressed with VR ‘gimmick[s]’ than general retail.

The research was fuelled by a sense of information overload concerning latest tech and trends, which the article claims companies can be dazzled by. The article concludes with another quote from Ravindran, instructing businesses to take the time to consider how technology can help them achieve their goals before implementing it, rather than being swept up in the newest tech trend.

The AREA have also conducted research, webinars, and case studies on ROI of AR which have been proven, therefore this should be considered by companies looking at investing in tech.  See our ROI calculator and best practice case study.

It aims to analyse the VR/AR industry, mainly from a business and legal perspective, to examine its current and likely future in the short term (1-2 years), medium term (2-5 years) and long term (5-10 years). As a result, the handbook:

• Provides guidance on current challenges
• Raises concerns to be aware of and understand, now and in the future
• Makes recommendations to leverage opportunities and mitigate concerns

For the full report analysis download the Growing VR/AR companies in the UK handbook.

The new upstream methods are as expected triggering novel business models and altering the value chain. For instance, contractors and service providers are consolidating vertically to expand their offerings to provide proprietary, all-in-one solutions. In due time, legacy rig fleets will be rationalized and integrated across a holistic automation platform, which, in turn, will stoke industry demand for open systems architecture.

“The rising relevance of digitally enabled business models will coincide with the increasing importance of data in influencing procurement decisions. The net result will be a highly transparent and quantifiable value chain,” noted Rathi. “The greatest industry impact will be felt when an AI-driven platform that automates procurement across all drilling and support activities emerges as a trusted, secure, third-party application encompassing the entire drilling ecosystem.”

BP operates over 1,000 shale wells, and oilfield workers in the pine forests of eastern Texas are equipped with VR goggles to help BP’s shale business turn a profit. The tech functions by thousands of automated wells feeding data on the workers’ performance into the firm’s supercomputers each evening. If maintenance is required, a subcontracted repair firm is summoned to keep the shale wells flowing at optimal output and minimal cost.

BP’s progress in shale underpinned its $10.5 billion acquisition of BHP Billiton’s US shale operations in July. BP initially struggled to adjust to the fast-evolving methods used to tap shale via hydraulic fracturing and horizontal drilling, but the company’s newfound confidence in a sector that has challenged oil majors was emphasised by the deal. When the shale boom took off ten years ago, BP and other majors that traditionally focused on large, conventional drilling projects such as Chevron were left behind. However, BP is now catching up with smaller rivals, using knowledge and tech to urge shale into a second phase that it hopes will reward its large scale over the agility of smaller competitors.

David Lawler, head of BP’s shale business, is quoted to have said after the BHP deal announcement that the company has the lowest production costs they have seen in a long time, therefore this model will be applied to the BHP assets to significantly improve performance and production.

Other large rivals of BP in US shale production include Norway’s Equinor, ExxonMobil, and Shell. These companies are all expanding drilling and acquisitions, particularly in the largest US oilfield and centre of the shale revolution, the Permian Basin of West Texas and New Mexico. Their goal is to capitalise on the vast resources unveiled by new drilling technologies, allowing companies to quickly start and stop production in response to market changes.

BP will be transformed into one of the world’s biggest shale oil and gas producers as a result of the BHP deal; the company’s total shale output will increase from 315,000 barrels of oil equivalent per day (BOED) to over 500,000 BOED, and its reserves will increase from 57 per cent to 12.7 billion BOED. BP’s output of shale oil is anticipated to rise from 10,000 barrels of oil per day (BPD) to approximately 200,000 BPD halfway through the next decade. The deal also looks to leave behind the $65 billion fallout from the 2010 explosion of its Deepwater Horizon rig in the US Gulf of Mexico, as well as re-establish BP as a major player in the Permian Basin.

In commenting on the technology’s system of rating contractors after completing work, Brian Pugh, Chief Operating Officer of BP’s shale division, is quoted to have said that it means the company is not constantly hiring and firing staff as market conditions shift. Field workers are connected to experts in BP’s Houston offices via headsets to receive guidance while working. Many problem solutions are now collated in a video library so staff can search up videos to help fix problems themselves without consulting an expert. Algorithms crunch data compiled each evening and form a report altering operators as to which wells may require repair. BP have said that the systems cut downtime for wells needing repairs by half, boosting production last year by 70 million cubic feet of natural gas across its shale portfolio.

BP’s success in cost reduction reflects its ability to spend money automating its oilfields and overhaul work processes to reduce service and equipment costs. The shale business, now headquartered in Denver, was separated from the main company to allow the business to form its own culture.

It’s a valid question, which Scope AR goes on to address in their blog.  The WorkLink platform was built primarily around the concept that organizations would be leveraging their own products’ CAD models to create augmented reality training and instruction materials.  Many of our clients are using it in exactly that way, and having no difficulty in achieving that workflow.

The scenarios where this approach doesn’t fit tend to be in a few general categories.

• “We need to assist our employees on equipment that is supplied by a vendor”
• “The CAD files exist and we own them, but we are struggling to get them released to us”
• “This equipment pre-dates our CAD software”

In actuality, most of these scenarios are likely to be short-lived. Where IP protection is a concern, for instance, CAD files can be converted and simplified at source to maximize the value to instruction while minimizing the exposure of proprietary information. In addition, the very nature of self-authoring keeps that exposure limited to your internal content authors and a pre-approved workforce working across a secure network. As the benefits of AR instruction and assistance become more commonly understood, these barriers are starting to fall.

The rest of their blog is devoted to sharing some useful techniques for these situations.

See Scope AR’s member profile page. 

In 2015, PTC purchased Vuforia, a mobile vision platform that was one of the first software developer kits to enable AR on a wide range of mobile devices, from Qualcomm. Thousands of Vuforio-based apps exist in the real world as it can be used to create AR apps for Android, iOS, and UWP. PTC also has software called Vuforia studio that allows users to create AR experiences using existing CAD assets and a simple drag-and-drop interface. Vuforia Chalk is the company’s purpose-built remote assistance app that allows field workers to communicate with experts using an AR interface. Most companies are using PTC-based tech through mobile devices present in the enterprise, although an increasing number of companies are testing on headsets from partners such as AREA member RealWear.

PTC recently acquired new tech that will be delivered in future products enabling the creation of step-by-step AR experiences by an AR headset (Waypoint) user and editing for consumption (Reality Editor). This software will increase ease of streamlining knowledge transfer between professionals and trainees for companies.

The article states that one of the powerful things about AR is that is has the potential to allow humans to see into IoT, which PTV demonstrated during its keynote. Another demonstration was made of moving a digitally created control switch from an AR interface to a physical control panel, and PTC also created a working manufacturing line on the expo floor to demonstrate the integration of IoT, AR, and robots. One working session that PTC ran during the show was about connecting AR to business value, in which real-world advice was given to IT decision makers trying to integrate AR with sectors such as manufacturing, service, and sales.

It is mentioned in the article that PTC is aware that partnerships are key to building out new tech such as AR and IoT, as they had announced in the weeks before the show their partnerships with companies such as ANSYS, Elysium, and Rockwell Automation. The article concludes by addressing PTC’s awareness that, despite mobile AR being powerful, AR on headsets is game-changing for workers requiring a hands-free experience, and this will be a key driver for AR’s progress in the enterprise.

The aspects of future AR development elaborated on in the article are:

• Customer Experience Driving AR Development. A report from ABI Research earlier this year showed that Augmented and Virtual Reality will be the next innovative technology to impact the retail and marketing sectors. Consumer demand for an improved shopping experience is enabling digital marketing and ecommerce vendors to enhance customer experiences with AR and VR.
• Current and Future AR Sales. Robert Radek, founder and CEO of GEON Network, has stated that AR tech is already used in a variety of markets such as gaming, commercial, ecommerce and retail. Key players mentioned include Google, Microsoft, Sony, Apple, and PTC. Radek is quoted to have said that increasing interest in ‘Augmented Reality’ and ‘AR’ as search term has been reported by Google along with estimated market growth.

Exponential growth potential can be seen in both the immediate future and long-term. Radek is said to have addressed the stagnation of AR tech sales (e.g. headsets), claiming that the cause of this is that products only address a small market of those interesting in using tech for leisure.

• AR Enters Post-Hype Development. Karen Shackman, founder of Shackman Associates New York, has stated that the key to future AR enterprise use is ensuring it is not a one-time experience. Shackman is quoted to have said that AR has the potential to enhance visitor experiences and provide marketing opportunities for companies and locals in cities like New York.

John Buzzel, president of YOU ARE HERE, has also said that any stagnation is only temporary, as AR is making is easier for enterprises to find ROI in immersive tech. It is claimed that 2018 will likely be an important year for AR due to increased mobile adoption, hardware releases, and new iOS and Android features due to valuable use cases and approached being found in AR’s practical phase following the intial hype.

Many technological developments are currently reducing AR obstacles, leading to improved ease of use, improved networking, greater utility, lower costs, enhanced developer tools, and higher performance.

• Long Term Future. The article claims that new digital standards for AR will be adopted in the long term as it becomes content and interface. AR is no longer just a feature as the biggest companies in tech invest billions. David Xing of Plott has stated that AR is on the verge of becoming XR (Extended Reality), a combination which uses VR to experience the environment and AR to change how it looks. Xing predicts that the emergence of XR will expedite the development of both AR and VR. In the short term, he believes that mobile AR will take the lead as everyone will have an accessible AR device, which will then lead to bringing the AR experience to headsets.

Companies are increasingly shifting their focus to developing mission-critical AR and VR applications in the enterprise. Areas of opportunity for senior executives across different functions listed in the article are:

• Connecting – workers can engage, share info with, and support colleagues in other locations using digital reality, e.g. engineers in a regional office can view, therefore provide guidance to field workers repairing and maintaining remote equipment.
• Knowing – digital reality can provide knowledge workers required information exactly when they need it via enabled glasses, e.g. construction engineers can view a detailed description of electrical and plumbing parts and how they fit into a wall.
• Learning – certain pioneering companies are using digital reality to place trainees in lifelike scenarios that would be logistically impossible or too expensive to recreate in the real world, e.g. UPS provides VR tests allowing new drivers to prove themselves in a virtual environment before physically driving a 5 ton delivery van.
• Exploring – potential customers can be brought closer to services, products, and experiences using digital reality, e.g. Estée Lauder released an AR virtual makeup mirror on its website that enables users to virtually try on product shades.
• Playing – there is a wide range and number of use cases of digital reality tech in storytelling, gaming, and live events. Investments in AR / VR use in gaming are expected to significantly increase in the next few years.

Aspects of computing power required to support enterprise digital reality strategies listed in the article are:

• Storage – there is a huge amount of data required to render digital reality experiences and this will only increase as technologies evolve and new functionalities emerge. Digital reality can potentially encourage modernised approached to enterprise data management, architecture, and governance.
• Core integration – headset manufacturers are developing APIs that integrate business processes and core technologies into new experiences. In future, digital reality could initiate transactions to present product, facility, or customer content.
• Analytics – currently, it is possible to track an AR headset user’s gaze and analyse data generated by this. In future, tracking analysis could potentially be used to drive advertising, although gaze-tracking for excessive amounts of time would necessitate a large amount of storage as well as powerful immersive analytics capabilities.
• Bandwidth and networking – currently, there is a lack of network operators able to deliver bandwidth speeds that AR / VR streaming and 360-degree experiences require. Developments are underway for compression algorithms, intelligent traffic management solutions, and low-latency / high-throughput capabilities for AR / VR.

Basic steps for laying the foundation of AR / VR initiatives for senior executives provided in the article are:

• Learn more about the technology – official training or a few hours spent with one of a range of development kits on the market can aid skills and vocabulary required for understanding digital reality and its value.
• Speak a new language – in addition to embracing new perspectives, designing for digital reality also requires a different vocabulary. Emerging tools and services are also needed for bringing experiences to life.
• Look around – the business goals, readiness, and efforts of senior executives’ peers should be considered. Don’t hesitate to ask for perspectives on potential use cases and opportunities from vendors, business partners, and suppliers.
• Don’t hold out for perfection – lots of digital reality innovation is being driven by the consumer market, although enterprise use cases, production deployments, and proofs of concept are increasingly emerging.

The article concludes by stating that digital reality is ready to transform how we experience the real world and interact with data. The concept of immersive technologies becoming the next big platform is now becoming more realistic.

The 5G network is claimed to be the ideal solution for connected Augmented and Virtual Reality experiences, as that allows for extreme throughout, uniform experience, and ultra-low latency.

ABI Research, market-foresight advisory firm that provides strategic guidance on transformative tech, predicts that nearly 10% of industrial smart glasses and VR devices will have a 5G connection by 2026. Marina Lu, senior analyst at ABI Research, is quoted to have said that wearing smart glasses provides a hands-free experience that enables workers to pay full attention to the work that needs doing. AR overlays a digital twin consisting of varying repair instructions based on the worker’s personal requirements on a physical object. Lu is also quoted to have said that continuous connectivity is vital for applications connecting field workers to a remote professional, as they require high-accuracy interaction and, for time-sensitive applications, low end-to-end latency. Devices can provide 4G and eventually 5G networks in remote locations where there is no Wi-Fi to enable connectivity and safety for workers.

The article lists the following connectivity vendors and telcos as those who believe AR and VR are prime use cases for the 5G network:

• Qualcomm
• Huawei
• Ericsson
• Nokia
• Verizon
• SK Telekom
• Orange

Ericsson has recently used AR troubleshooting at production sites in Estonia, and is expanding to sites in China. Engineers can use this technology to solve complex issues via fault finding data and immediate information sharing, leading to a potential 50% boost in productivity. Also, Xerox Israel has deployed AR in the field to increase remote resolution rates, first-time fix rates, and mean repair time.

Cellular connectivity is also claimed to potentially expand the AR/VR working area. Low-Power Wide-Area Networks (LPWAN) are able to support simple remote devices that lack frequent communication while maintaining energy efficiency; the combination of AR/VR and Internet of Things (IoT) improves the value chain for use in manufacturing. Huawei and Toshiba’s NB-IoT solution is an example of LPWA adoption. Flowserve, a manufacturer and aftermarket service provider of flow control products, uses real-time sensors with AR to predict pump failure, provide exact instructions for repair, and share management analytics.

Eric Abbruzzese, principal analyst at ABI Research, is quoted to have said that the key to improving AR/VR user experiences and integration in the industry market is mobility. Although this places new requirements on network services and structure, it creates new opportunities connecting the product with the factory, and understanding consumers. Abbruzzese is also quoted to have said that for users to receive info at any time and place, and to interact with their environment, ubiquitous connectivity is required, therefore new business models need to be developed to leverage connectivity capabilities.

Wearables have the potential to increase value of workers by improving physical and perceptual abilities, according to the report. Wearables such as smart glasses, sensors, smart watches, and exoskeletons are reducing in size, weight, and cost for enterprises, as well as offering the ability to collect and process data in real time.

The report is quoted in the article, finding that wearable technologies can improve workers’ productivity as well as fill in the gaps in their skills or overcome physical limitations. Wearables are being increasingly offered as a service and end-to-end solution, which increases ease of adoption in the enterprise. Other factors that make wearables more attractive for enterprises in the US include:

• The aging workforce
• Skills shortage
• Rise in remote working
• Increase in workplace safety regulations

Wearables enable business leaders to navigate these problems via augmentation of workers’ abilities, e.g. increasing physical strength, providing instructions, alerting for hazards, and facilitating virtual interactions, all of which can potentially increase safety and productivity.

The four ways in which wearables can benefit your workforce as listed in the report are:

• Enhancing strength and endurance. Workers can be equipped with exoskeletons in organisations that require physical labour, helping them to conserve energy and avoid straining. Examples of this include Lowe’s robotic exosuits released in 2017, and Ford’s use of exoskeletons for manufacturing workers. Audi, Gammon, and the US Navy are also utilising or evaluating the tech, which is claimed to be particularly useful for aging workers as it helps to avoid injuries and overexertion.
• Augmenting vision. Instructions offered in a worker’s field of view via AR or VR can aid duration and quality of work, design and data analysis abilities, and improve team collaboration. An example of this is GE Aviation’s use of smart glasses improving efficiency by 8-12% and reducing errors.
• Empowering speech and hearing. Voice-controlled wearables and hearables offer workers hands-free access to instructions to increase efficiency. An example of this is Lufthansa using voice-based headphones that enable a two-technician job to be completed by just one, as one would have to read out instructions. Instead, the maintenance checklist is converted to voice commands which the technician can respond to.
• Improving awareness. Wearables can provide quicker task and situational awareness to workers to aid work quality and productivity. An example of this is the Cincinnati/Northern Kentucky International Airport’s use of smart watched to alert cleaning crews when / where they are needed.

Worker safety can be improved by these tools by monitoring the worker’s physical status in addition to environmental conditions, notifying them when either becomes dangerous.