Part of AREA's Enterprise AR ROI Blog Series
Why ROI is the Key to Unlocking Enterprise AR Adoption
Augmented Reality (AR) is transforming the way enterprises train, maintain, and innovate—but how do you prove its value?
For many organizations, the biggest hurdle to AR adoption isn’t the technology itself, but demonstrating a clear return on investment (ROI). Decision-makers want to know: Will this investment pay off? The answer lies in understanding, measuring, and communicating ROI in a way that resonates with all stakeholders.
Why ROI Matters
ROI is more than a financial metric. It’s a strategic tool that helps organizations:
- Justify AR investments to leadership and budget holders
- Prioritize projects with the highest impact
- Track progress and optimize deployments over time
According to AREA research, acceptable minimum threshold rates of return on investment for IT infrastructure and software range from ten percent to fifteen percent depending on the industry. But AR’s value isn’t always obvious. Benefits like reduced downtime, faster training, and improved safety can be both tangible and intangible. That’s why a structured approach to ROI is essential.
“We learned early on to quantify everything – time saved, errors reduced – so that leadership understands AR is a real value driver.” – Paul Davies, Boeing – Technical Fellow, Immersive Technologies
The Challenge of Digital Transformation
The digital transformation of enterprise through software-as-a-service driven business models, agile development processes, and connected technologies like IoT and AR have created new opportunities but also new challenges for ROI analysis. These trends are impacting AR ROI in three important ways:
1. Significant upfront investment needed for “digital readiness”
2. Shorter payback timeframes due to operational expense models
3. Stronger focus on revenue-generating investments
The AREA ROI Calculator: Your Starting Point
The AREA ROI Calculator is a free, purpose-built tool for evaluating AR investments. Developed by TechInsights in partnership with the AREA, it guides you through identifying, quantifying, and comparing costs and benefits, so you can build a compelling business case. Whether you’re just starting or scaling up, it’s the foundation for any AR ROI conversation.
The calculator prompts users to enter real or estimated metrics in formulas that then calculate the ROI. It addresses the unique challenges of evaluating early-stage technologies like AR, where operating systems, data protocols, and formats are often proprietary compared to more standardized platforms.
“Clear ROI can turn skeptics into AR champions overnight. For organizations, adoption hinges on proving measurable value – like cutting downtime by 50% – while also elevating the quality of work employees deliver. When both the bottom line and performance improve, AR stops being a novelty and becomes an indispensable tool.” – Brian Hamilton, DigiLens Inc. – Vice President, Sales & Marketing
