AREA member Nvidia featured multiple times in an article on the AFR.com Financial Review website.  CES (Consumer Electronics Show) is currently on in Las Vegas.  Here’s a look at what analysts say investors will be looking for at the CES related to Nvidia and others:

• Automotive – stocks most likely to respond to CES-related events should be Ambarella and Nvidia, Morgan Stanley analysts led by Joseph Moore and Craig Hettenbach said.
• Nvidia is “at the centre” of many of the key innovations in consumer electronics.
• While Nvidia will probably remain at the top of investors’ minds when thinking about AI, Intel will probably feature recent advances in the field at the event;
• Look for updates from Nvidia regarding progress of Drive PX Pegasus platform, clarity on how the company plans to cut operating temperature and power consumption, and new partnerships and potential end-customers, KeyBanc analysts said.
• Updates on Intel’s long-term approach to the the AR/VR ecosystem are of interest given the company’s recent move to wind down its headset reference design, MKM’s Roy said.
• Nvidia is also expected to highlight its emerging AR/VR technologies.
• Companies will probably showcase mobile-based augmented-reality applications, Bloomberg Intelligence analysts Jitendra Waral and Sean Handrahan said.
• AR hardware prototypes are bound to be shown by larger companies and start-ups, but the hardware may still be years away as a supply chain and standards are still missing; until then, mobile AR will be at the forefront and CES may preview some of the ways that companies leverage AR to differentiate their products;

Here’s what Gartner has to say about it:

Augmented Reality (AR), virtual reality (VR) and mixed reality are changing the way that people perceive and interact with the digital world. Combined with conversational platforms, a fundamental shift in the user experience to an invisible and immersive experience will emerge. Application vendors, system software vendors and development platform vendors will all compete to deliver this model.

Over the next five years the focus will be on mixed reality, which is emerging as the immersive experience of choice, where the user interacts with digital and real-world objects while maintaining a presence in the physical world. Mixed reality exists along a spectrum and includes head-mounted displays (HMD) for AR or VR, as well as smartphone- and tablet-based AR. Given the ubiquity of mobile devices, Apple’s release of ARkit and iPhone X, Google’s Tango and ARCore, and the availability of cross-platform AR software development kits such as Wikitude, we expect the battles for smartphone-based AR and MR to heat up in 2018.

Other technologies predicted to be trending in 2018 are: AI foundation, intelligent apps and analytics, intelligent things, digital twins, cloud to the edge, conversational platforms, blockchain, event-driven and continuous adaptive risk and trust.

Their full report can be read here.

The AREA recently distributed the products of its second AREA-funded research project, an ROI Calculator and Best Practice Report. Conducted by Strategy Analytics under the supervision of AREA member PEREY Research & Consulting, the research examined the approaches taken by market leaders that are identifying, prioritizing, and managing costs and returns on their AR investments.

The ROI Calculator and Best Practice Report are available exclusively to AREA members, but non-members can download an abstract of the Best Practice Report and a sample ROI Case Study here.

Based on interviews conducted with AREA members and members of the Strategy Analytics Enterprise Customer panel, the research report identifies five critical best practices for companies to follow in preparing and conducting successful ROI analyses for enterprise AR projects. Companies following these practices are able to articulate and explain technology spending that will aid in decision making, and to accrue the greatest measurable benefits from their AR investment over the long term.

Along with the best practice report, the AREA has produced an Excel spreadsheet that enables companies to enter variables and calculate the ROI for their AR projects following well-established methodologies used by financial analysts.

The spreadsheet walks the user through the process: establishing the business case; assessing AR solution costs; inputting business financial metrics. The ROI Calculator produces annual AR solution costs and benefits allocations and an ROI analysis and cost/benefit overview that reveals the cumulative net benefits over several years.

“Companies that follow these practices when undertaking ROI analysis on their AR projects will be able to articulate and explain technology spending,” said Christine Perey of PEREY Research & Consulting. “This will aid their decision making and enable them to accrue the greatest measurable benefits from their AR investments over the long term.”

Download your free copies of the Best Practice Report abstract and ROI Case Study here.   To obtain the full ROI Calculator and Best Practice Report – and enjoy a host of other benefits – join the AREA. Click here to learn more.

According to mathematical models, manufacturing processes can become highly data driven, nimble and responsive. People and equipment are deployed to optimize resources whenever shifts in demand, supply of components or materials, or currency exchanges reach thresholds. In practice, application of such models raises significant challenges.

In complex assembly lines such as for cars, companies seek to strike a balance between customization (made to order vehicles) and mass production. It’s not uncommon for a single assembly line to finish parts for different car models and colors. Dynamic, configurable equipment and workflows are easier to program and manage than in Henry Ford’s day, but they also introduce complexity into operations. Complexity introduces errors. And errors cause production delays, also known as downtime.

Improvements in operator training can reduce downtime but if employees must memorize complex steps that change frequently, it does not guarantee the best resource use. Delivering precise work instructions to the assembly line worker at the time of task performance and in the field of view of the user has enormous potential to bring the real world closer to the textbook models.

Projection Augmented Reality

Projection Augmented Reality is an alternative to tablets or smart glasses in some environments. The approach is well suited when the workplace is stationary (or on a moving assembly line) and the work tools or items on which a task is performed can be brought to the AR-enabled workstation.

One company providing projection AR capabilities is OPS Solutions. OPS Solutions works with automobile manufacturers such as Fiat Chrysler Automobiles to increase workplace efficiency and productivity. This article describes a study conducted with OPS’ flagship product Light Guide Systems (LGS), a projection AR solution that has been implemented within Chrysler’s manufacturing operations.

Manufacturing Study

LGS projects instructions (visual and audio) for guidance, pacing and direction on work surfaces, and provides feedback for improving industrial processes such as capturing cycle times for each step within manual processes including assembly, part knitting and training. In trials conducted with Chrysler in 2014, use of standard paper work instructions for complex tasks were compared with using LGS for the same tasks when training new operators. Ten operators were tasked with assembling gears and chains, a process totaling 10 steps for each operator. For each step, they had to select the correct gear corresponding to a location and diameter within a standard cycle time, and install the corresponding chains correctly. Lastly, they had to verify that the installation was done correctly.

Each operator had to do two different versions of each task, one using paper-based work instructions, and the other with LGS. Five operators started with paper and then switched to LGS, and the other five with LGS and then to paper.

The results of the study are conclusive, and the table below shows the efficiency of LGS in comparison to standard paper work instructions.

The 80% reduction in errors shows a marked improvement in quality. Reducing errors at one stage of an assembly line has great impact on costs, since faulty articles must be withdrawn further down the line and corrected in order to proceed with later stages of assembly.

The reduction in cycle times and increased throughput reflect efficiency and speed, as articles completed faster increase overall manufacturing productivity.

A similar study was done for logistics tasks, or kitting and sequencing of parts before reaching the assembly line. Associates had to select the correct subparts and put them in the appropriate bins on a cart, before wheeling the cart to the next stage of production. They used LGS to project selecting the correct quantities of parts and guiding the associates to place the parts in the correct bins based on a highly variable sequence that changes constantly in production.

The study similarly compared the efficiency of using projection Augmented Reality with that of paper work instructions. As shown in the table below, using projection AR greatly increased the associate’s efficiency and reduced errors.

In both the assembly and logistics studies, a further advantage of instructions displayed directly in the field of view is that the normal attention switching to refer to other sources of information such as paper or computer-based work instructions is eliminated, thereby reducing cognitive load and speeding up task execution.

A Leap in Productivity

Chrysler’s experience with projection Augmented Reality supplied by OPS reveals the potential this technology offers to boost employee productivity through:

• Increased quality and standardization of processes
• Training efficiency by enabling operators to self-train on the job
• Greater accountability through confirmations of successfully completed steps
• Feedback on completed tasks and cycle times

One byproduct of designing, installing and using projection AR is that the plant floor workflows and stations are reviewed and improved. Reconfiguring stations can increase efficiency with respect to material staging and ergonomics.

Projection Augmented Reality, sometimes also referred to as “spatial Augmented Reality,” is a method of delivering digital information to users within a stationary context. Target objects and users can move around in the environment, but the zone in which AR experiences take place is limited to the fields of view of both the fixed projector and supporting camera for tracking.

The first example of projection Augmented Reality was called the “Digital Desk.” In November 1991, within months of their contemporaries at Boeing, Tom Caudell and David Mizell, coining the term “Augmented Reality,” William Newman and Pierre Wellner, then researchers at University of Cambridge and Xerox EuroPARC, published a paper in the UIST 1991 conference proceedings called the DigitalDesk Calculator: Tangible Manipulation on a desktop display.

In this 8 minute video, Pierre Wellner explains the concept and demonstrates the working prototype of the first system.

How it Works

Projection Augmented Reality features one or more optical devices (projectors) that project a beam of light onto a specially designed work surface and in some cases directly on the parts on which a user is working. This provides immediate guidance for tasks and reduces the need to interrupt workflows to consult information elsewhere.

Workspaces for projection Augmented Reality also feature any of a variety of stationary cameras. Cameras are positioned to track objects with or without fiducials. Control of the workspace environment, such as lighting, reduce the computational complexity of the tracking algorithms.

Once configured, the projection Augmented Reality system can provide user instructions or assistance in a variety of media. For example, digital information can be:

• Text, for example, cycle time count down
• Images, for example, blueprints or simple directional arrows
• Animations
• Videos

Some systems also provide assistance by way of task-synchronized audio.

Benefits of Projection Augmented Reality

Projection Augmented Reality can offer the following benefits:

• Reduces or eliminates the need for computer monitors and screens, as the instructions appear directly in the task space.
• Reduces users’ cognitive load when following work instructions due to the fact that there is no need for “attention switching” between work instructions and the task at hand.
• Integrates into manual workflows by promoting a “no faults forward” policy to ensure and confirm correct execution of the preceding step.
• Provides feedback on completed tasks for process improvement, traceability and unique digital IDs for build cycles.

Use Cases

Projection Augmented Reality can optimize performance of some types of production and logistics tasks when the work can be performed at a station (rather than the user going to the workplace or moving around in a larger space).

Tasks that can benefit from projection Augmented Reality include:

• Assembly
• Disassembly
• Inspection
• Part knitting
• Sequencing
• Maintenance
• Tool changeovers
• Gauging
• Welding
• Wire harness routing
• Glue bead replacement
• Logistics (shipping and receiving)
• Inspection
• Training

Now Augmented Reality is getting the HBR spotlight in the November/December issue – and you can download a copy of the article HERE.

In it, noted strategist, author, and Bishop William Lawrence University Professor at the Harvard Business School, Michael Porter and Jim Heppelmann, president and CEO of AREA member PTC, provide business leaders with a comprehensive exploration of AR, from definition to applications to benefits.

“The title of the article says it all – Why Every Organization Needs an Augmented Reality Strategy,” noted Marc Schuetz of PTC, an AREA board member. “It makes a very strong case for how AR will change how we interact with the world around us.”

Jon Lang, lead principal business analyst at PTC, noted that the article is the third in a series written by Porter and Heppelmann. “In 2014, they wrote about smart, connected products and the Internet of Things. Next, they researched the organizational implications of smart, connected products and the data they produce on companies using or making these products. Now, in this third article, they discuss how AR is one of the best ways to channel the value of the data that smart, connected products create.”

As the article puts it, “AR enables a new information-delivery paradigm, which we believe will have a profound impact on how data is structured, managed, and delivered.”

Porter and Heppelmann highlight several real-life examples of AR applications, including AREA members Newport News Shipbuilding and Boeing. It discusses how Xerox used AR to improve field engineers’ first-time fix rates by 67% and how AR enabled KPN, a European telecommunications services provider, to reduce overall service team costs by 11%.

The article even comes with an AR experience accessible via an app download to give readers a first-hand sample of AR in action. Watch a video of the experience HERE.

PTC’s Jon Lang sees the HBR article as a great way to educate business leaders about AR. “Porter and Heppelmann make a compelling case for why this technology is so powerful and why executives should consider integrating it into their strategies now – because there are a lot of opportunities and the technology is ready today.”

Get your free copy of the article HERE.

In this podcast, Alex Gibson of 103.2 Dublin City fm reports from AWE Europe held in Munich, Germany on 19 & 20 October 2017. This is Europe’s largest gathering of Augmented and Virtual Reality professionals and among those interviewed are Mark Sage from The AREA (Augmented Reality for Enterprise Alliance) [at 15:35 into the show] and Ryan Pamplin, VP Evangalist from MetaVision who were showcasing their Meta 2 glasses.

In response to growing concerns, previously documented in this series of blog articles, regarding the risks of deploying Augmented Reality (AR) solutions in enterprise environments to enterprise data security, the Augmented Reality for Enterprise Alliance (AREA) commissioned the first in-depth study of security-related issues that could impact the deployment and widespread adoption of wearable enterprise AR solutions.

AREA members are now able to benefit from the research results through use of two exclusive reports. The first, entitled Wearable Enterprise AR Security – Risks and Management, offers a validated, comprehensive approach for assessing data vulnerabilities and formulating risk mitigation plans. The second report, Wearable Enterprise AR – Security Framework and Test Protocol, provides a structured framework for AREA members to characterize the security threats associated with wearables and to assess major vulnerabilities against that framework. The test protocol also identifies key metrics for measuring real-world risks.

An executive summary, including the key findings published in the first AREA research report is available for public download. Both full reports are available exclusively to AREA members. To learn more about becoming a member and the benefits of membership, please contact Mark Sage, the AREA Executive Director.

Software

Over the past decade, early adopters of enterprise Augmented Reality like Airbus (formerly EADS), Daimler, Volkswagen, Boeing and others invested in internal software development tools and built their own platforms in order to integrate with existing data and business systems, and to manage as many factors as possible without relying on outside vendors.

Today, many who are starting or managing AR projects are still in research and development phases and seek to control variables as much as possible. They may still choose to build a new solution entirely within their IT organizations, but more often are able to license core enablers from commercial providers (at a cost or without fee), or to use open source projects.

As commercial solutions improve and offers expand, companies frequently find themselves needing to carefully re-evaluate the cost of building (or continuing to maintain) a solution internally. In some cases, purchasing off-the-shelf software solutions for experience development is less costly and there are other benefits.

Commercially ready SDKs for enterprise AR have several advantages. They usually benefit from a better user interface for use by developers. There is almost always documentation or webinars for getting new users up to speed and producing experiences quickly. Commercial solutions may also have more investment in core enabling technologies for object recognition, tracking and rendering. Getting these working with a variety of hardware platforms and maintaining those is costly.

The reason that many enterprises are still in the position of building or developing internally has to do with the risks associated with a commercial SDK provider changing strategies, a lack of resources for maintaining R&D, a low commitment to rapid change needed by enterprise customers, a lack of support for the enterprise IT group’s choice of hardware and maintenance costs of software and extensions. Many licenses have to be renewed annually or base a fee on the number of experiences; if the organization uses AR in many projects, the fees may be greater than developing and maintaining an internally engineered SDK.

Hardware

Any AR project requires sensors for detecting user context and intentions, a display system (personal or shared/stationary and attached to a tool or area of the shop floor) for providing experiences and processing for highly demanding computational tasks.

Since positioning the AR experience is so critical to success, many companies develop custom positioning and user detection systems involving infrared, highly calibrated systems that frequently re-use parts or build upon previous Virtual Reality project components.

Depth sensing is highly appropriate in enterprise AR where many targets are three dimensional and the CAD models are as well. Rendering 3D models in real time is highly processor intensive and benefits from storing the models in memory, another costly hardware component if a project exceeds one or two prototypes and begins to be deployed in dozens of positions.

Most enterprise AR projects begin with tablet computers. Tablets are suitable for prototyping but there are several types of obstacles. One has to do with security and safety using systems that are not designed for industrial environments or data access. For example, many IT departments cannot use devices that require connecting to the Apple App Store.

Separately there is ergonomics. To perform many AR-assisted tasks requires both the user’s hands or for the user to move around in a space without cables or obstructions. Here the options expand and many solutions are worthy of exploration before selecting one that will be deployed as an internal standard.

Some groups choose to develop custom hardware (contracted or internally developed) to meet their precise needs rather than purchase commercial products.

Content

In order to design the AR experience, the original content and models may need to be ported or adapted prior to use. In addition to raw data, there is also the user interface that has to be designed and adapted to a project.

Once in use, content must also evolve as the processes change. This can require starting over entirely. There also needs to be processes for data management and to store the data that has been captured by the AR system during use.

In general, project costs for content development are at least as great as for the other two essential components.

Integration

Once a pilot or prototype is proven, there will be a need to integrate AR-assisted components into the larger enterprise workflow. This requires planning and heavy testing to ensure that other components and procedures are stable and are not sacrificed for the purpose of real time data visualization in AR view.

Integration is a cascading problem, often leading to indirect costs such as upgrades to a database, greater data storage capacity, higher throughput networks and other costs to lower the delay and increase system performance.

Policies and Processes

Augmented Reality is likely to require the development of new policies and procedures and the refinement of existing ones. This involves legal staff, risk management, safety and security staff and other groups with responsibilities outside those of the information technology or business line management groups directly involved in introducing AR-assisted systems.

Policy and process changes may require coordination with regulatory bodies and other companies and organizations. These changes can escalate in terms of both cost and the time, and introduce delays in the calculation of return on original investment.

Training

As the rate of technology introduction and process changes increases, so do employee training requirements. Training is not only for those introducing and managing software, hardware and content, but also for those working in evolving workflows. New steps are introduced and old steps are eliminated.

New or changed training means less time to perform mission critical tasks and more administration. As with costs associated with changing policies and procedures, changes in training can escalate quickly.

Although it may not be possible to measure them precisely, training costs associated with introducing AR in an enterprise could add up in unforeseen areas and be delayed due to courseware development and review costs.

Introducing AR is a Long-term Investment

To truly integrate Augmented Reality in an enterprise will be a long-term process and significant investment, probably comparable to the computerization and automation of many enterprise processes over the past 20 years. These costs must be considered in light of the total impacts on the business.

Management will need the support of AR experts and IT groups to take in all the related costs as well as to estimate the risks of not introducing AR in an acceptable time frame on a large scale.

How does your organization calculate the total cost of ownership for introducing new technology? Is AR introduction stalled by unforeseen cost centers?

What I’ve Learnt as Executive Director of the AREA

I’ve had the most amazing year as Executive Director of the Augmented Reality Enterprise Alliance (AREA). Getting to really understand this new and amazing Enterprise AR ecosystem has been a fantastic journey.

I’ve spoken to many enterprise executives and innovation leaders who are looking to improve their companies’ performance and create efficiencies. There have been many conversations with providers of AR technology (including a growing number of startups focusing on AR) that are offering innovative solutions. I have also gained insight from numerous non-commercial organisations – from governments to universities and research institutes. All which has enabled me to gain a wide and comprehensive view of the Enterprise AR ecosystem.

So, what have I learnt in my first year?

When I started back in May 2016, I would have said that the Enterprise AR ecosystem was very “irregular” because of the following characteristics:

• Enterprises were uncertain about which AR areas to invest in
• Providers were unable to find customers
• Technology readiness was unclear
• Best use cases were still being defined
• Efficiencies were difficult to achieve

What a difference a year has made. The ecosystem is moving forward rapidly, with more enterprises and providers understanding AR, developing focused solutions, providing more clarity on best practices and creating better tools.

Equally important, “AR language” is now being shared with key business decision makers (CEO, CIO, CTO). They are beginning to understand the benefits and challenges for the ecosystem.

But issues remain. Enterprise AR is still not a mainstream technology, performance improvements are not being realised across entire organisations, and many projects are stuck in the prototyping / testing phase.

With the help and insight of the AREA members, we have spent the past 12 months understanding what needs to be done to move from the “in prototype” phase to “full deployment” stage so that enterprises can gain the benefits and return on investment from AR.

The AREA Portal – your one-stop shop for neutral Enterprise AR information

The challenge is multi-layered and goes beyond just technology readiness! That’s why the AREA has continued to create initiatives to help enterprises. We are investing in updating the AREA portal and building a “one-stop shop” for Enterprise AR information – from AR use cases, case studies, and technology white papers, to the latest thought leadership articles, news stories, and events. It’s important to build a set of vendor-neutral information that can help executives make informed decisions. We are also working on creating more neutral ROI analysis and looking for enterprises and providers to help share any ROI information they have.

AREA research capability

We are also building up the AREA research capability. We have asked members what should be researched to help the growth of the Enterprise AR ecosystem and in 2016 we commissioned research on security in wearables. The report(s) are just about to be realised and will provide the AREA members with the following insightful and useful research:

Report 1 – Wearable Enterprise AR Data Security Risks and Management

This report will allow AREA members to better understand data security risks, communicate using a common vocabulary, characterize threats via a structured framework, assess major vulnerabilities against that framework, and identify key metrics to measure risks in the real world.

Report 2 – Wearable Enterprise AR Security – Framework and Test Protocol

This report proposes a security framework for AR developers and enterprise practitioners. It explains how to create a three-phase test protocol for evaluation of AR headset solutions:

• Identify appropriate security requirements for the AR device in an enterprise project
• Evaluate the security design of the AR device using vendor and third-party data
• Test the AR device security as part of the enterprise project

These reports are only available to AREA members. If you are not a member yet, please contact me if you are interested in joining.

We have also kicked off the next phase of research proposals to find out what the members would like to research next!

Global AR requirements

Another identified gap is a lack of Enterprise AR requirements. Having those requirements would help enterprises create standard RFP / RFI’s for AR solutions. For their part, providers would find the requirements useful to helping them develop their product roadmaps, as well as encouraging interoperability of software and hardware.

It was exciting and inspiring to run the first global AR requirements meeting with the DMDII in Chicago (1^st / 2^nd March) with 65 companies and 90 people discussing the draft AR enterprise requirements (created by Lockheed Martin, Caterpillar and Procter and Gamble). The AREA is planning to run another session in Oct ’17. I’m looking forward to again engaging directly with the ecosystem.

AR Safety Committee

Safety is a concern for all enterprises and the use of AR (particularly with wearables) is one area that needs to be carefully considered when rolling out an AR solution to the wider workforce.

A new AREA charter is being created to bring together interested members to help define and provide insight into the potential problem. More to follow in H2 2017.

Much more to come – together

It’s been an amazing first year for me at the AREA – engaging with practitioners from all over the world who want to drive change, improve performance, and deliver valuable Enterprise AR services.

But it’s clear that work still needs to be done. The AREA will continue to help drive the ecosystem, to provide a place to discuss and solve the wider problems, to help enterprises and providers to work together, to make a difference, and to accelerate the adoption of Enterprise AR.

There is an African proverb I often like to cite:  “If you want to go quickly, go alone. If you want to go far, go together.”

Please join me and over 30 organisations in working to ensure that AR technology creates lasting benefits for the world.