What can AR do for your firm?

Dear Loyal Readers,

we've already established that Augmented Reality looks like real fun. We have shown the multitude of benefits for users of AR applications: AR can provide relevant, updated information in an innovative way which ties physical reality to virtual reality. Users enjoy an additional "layer" of helpful information, embedded over their actual view of the world.

But the question which begs to be asked is – where is the money? 

What are the main business value propositions that Augmented Reality offers for firms?

In order to talk about a technology's value proposition, we need to explore and compare it to its predecessors. Which technologies or applications can AR improve, or completely replace? What might become obsolete if AR becomes a reality (pun intended)?

The first obvious answer to this question is that AR can replace all traditional ways of displaying information which is tied to a specific context or physical place. AR's main value is displaying information exactly where and when it is needed, in a much more focused way than classic ways of displaying information:

• Driving or walking directions are better read and understood when blended with reality, showing relevant directions "on" relevant streets and turns.
• Relevant surgery related drawings, reminders and steps can be shown to medical students and inexperienced doctors during surgery or studies, embedded on the relevant body parts, instead of using classic medical books
• Advertising can be shown next to certain objects, embedded in customers' reality in arbitrary places, instead of putting ads in predetermined locations such as billboards, bus stations and newspapers

Therefore, we can say that the main business value proposition for AR is getting relevant information to customers in a much more focused manner. Firms can utilize this in a few ways:

1. Improve customers' satisfaction by giving them information they need, in the right place and time – for example, driving safety tips and instructions
2. Provide customers with additional information (not what the customer directly asked for) which is of value to the firm – an additional channel of information between firms and customers. An example would be context-relevant advertising. 
3. Cut costs by more efficiently conveying information to customers, thus reducing the need for sales and support representatives. For example, AR instruction manuals, or product information) might help customers solve problems on their own instead of using firms' support staff

That being said, we must acknowledge the fact that AR has still not gained real, massive traction in the world – and therefore, we cannot say for certain what would be the customers' reaction to it. How would ordinary users adapt to this non-stop, always-present flow of information, embedded onto reality? Might it just make users insensitive to information, thus decreasing the core value proposition of AR?

The move from reality to augmented reality might not be as easy as AR advocates want us to believe… but as time goes on, and more applications and devices (such as Google Glass) gain traction, AR will hopefully adjust itself to serve consumers' needs in a non-obtrusive way.

Until next time,
Your friends @ Augmentacious