Food for thought: Are VR Headsets the answer to sustainable business practices?

Summary

This article is my own insight. It's about how Virtual Reality (VR) could cut costs and solve long term sustainability. The overall conclusion is that VR could enable sustainability. There is both a cost and time advantage of implementing VR, but companies will need to consider the initial investment and if it is practical long term.?VR is progressing in the right direction, but more applications and software need to be developed to justify the investment.

What is VR?

In 1968, American computer scientist Ivan Sutherland and his student Bob Sproull created the first virtual reality headset. At the time, it was a fantasy of how tech could change the world. They didn't know it would be a hot topic in the years to come and in the 80s and 90s, VR became more popular. SEGA and Nintendo made their own VR gaming headsets, but it had limited success. In 2010, companies like Oculus and HTC Vive developed and introduced powerful headsets into the market that delivered high quality graphics and motion tracking technology. Hype around the products grew. The dream Ivan and Bob had was starting to come true. Meta (formerly Facebook) had introduced its own VR product, Meta Quest, to compete with the likes of Oculus and HTC Vive. Meta started to develop its own VR world where people could meet and hang out with friends using their headset which grew in huge popularity during Covid. As of today, Apple have entered the VR market with the Apple Vision Pro. It is revolutionary in what can be achieve with VR. The VR market is expected to grow to $165.91 (￡130.66) billion by 2030 with a Compound Annual Growth Rate (CAGR) of 31%. Currently it dominates the Gaming Industry by 22% but it is predicted that health care will see the biggest increase in VR.

VR in the real world

When the Vision Pro was released to the mass market, we witnessed the capabilities of the headset. Being able to connect and organise your workspace in any environment gives the user flexibility. It also gives them the power to maximise their experience. I like the idea of being able to have my messages and music on the wall next to a file I’m working on – it makes it easier for me to stay in the loop with my friends and not picking up my phone which is easily the biggest distraction for anyone, let alone myself.

As social media provided so many user cases for people using the vision pro in their own lives and how to stay connected to the world, I barely saw any user cases that could be used in a business environment. I wanted to see how VR could help maximise workflows, how we view data & analysis and design. I believe Apples entry product into VR could achieve this if executed correctly.

Previous attempt

Meta made its VR world and later announced it can also be used for business meetings, which led to a lot of excitement as businesses were given the platform to cross the boundaries of what can be achieved in a meeting. However, the key issue was that every participant would need a headset and access to the social media platform – which a lot of companies block on their network to avoid procrastination during the workday. It also competed with Microsoft Teams, a free messenger app which can be downloaded on any computer and allowed many people to work from home. It was ambitious of Meta to compete with Microsoft considering the factors mentioned but I felt they had the right idea and if executed correctly, could have been the go-to app for many businesses.

So, is Apple able to compete with Microsoft Teams?

I feel this would be the perfect opportunity for Apple to gain market share by offering apps and programmes that allow the headset to be used a way that can allow business to present and showcase their product and data. I believe they can replicate similar success to when the first iPhone was introduced. With that said, when Apple designs in-house applications, they are usually only available on Apple products or for use within its range of products. It may follow a similar user experience of the Apple watch, which can be connected to Android devices, but you’re not able to use all the features. Apple needs to develop an application outside of its eco-system that allows Windows and Android users to benefit from purchasing the headset. If Apple were able to develop and release an app to the market, without paying an additional premium, it would help increase the sale of their headset. This would naturally increase their profit margin. It would also let Apple collect crucial data which would be useful for R&D for its next product.

Cost analysis and User Cases?

The estimates are based on a product which costs a company ￡20 to produce and makes a net profit of ￡15 per unit. The firm is expected to produce 5,000 of these units per year. In the table below, in the first scenario it will take the company 2 years and 8 months to make their investment back. However, once VR has been implemented in the design process, we see initial investment decrease. The ROI is achieved 4 months faster, but it is possible to achieve this faster.

VR can enhance the efficiency of research and preparation by providing immersive environments for market research, user experience studies and product usability tests without the need for physical assets or travel. While it may not eliminate these costs entirely, it can significantly reduce them.

VR can drastically reduce design costs by allowing designers to create and iterate on virtual models instead of physical prototypes. This process can streamline design workflows, foster collaboration, and reduce the need for expensive materials and physical space.

VR stands out in its ability to reduce prototyping costs. Virtual prototyping allows for extensive testing and iteration without the material and labour costs associated with traditional prototyping methods. However, for certain products that require more demanding testing and physical prototypes may still be necessary.

Validation processes, particularly those involving human factors and ergonomics, can be enhanced with VR by simulating real-world use and interaction without the need for complete physical prototypes. This can reduce the cost of iterations but might not fully replace the need for physical testing, especially for compliance and safety certifications.

VR itself does not directly influence the costs associated with securing intellectual property rights. However, the use of VR in the design and prototyping phases can accelerate the development process and potentially leading to earlier patent filings and possibly affecting the strategy for IP protection.

VR can assist in the planning and optimisation of production tooling by simulating manufacturing processes, layouts and ergonomics which could potentially reduce the need for physical trials and adjustments. This could lead to cost savings in setting up production lines but won't eliminate the need for actual tooling and machinery.

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While VR can optimise the production process through better planning and training, it doesn’t directly replace physical production costs. VR can help identify efficiencies and reduce waste, which indirectly affects production costs but cannot replace the costs associated with materials, labour, and machinery operation.

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By introducing VR into various stages of the product production process, companies can potentially lower their total investment by reducing costs associated with design, prototyping, and process optimisation. However, the initial investment in VR technology, software and training should also be considered.

In summary, VR can significantly impact and reduce costs in the product production process, especially in design, prototyping, and validation phases. While it offers substantial cost-saving potentials, there is certain circumstances that companies may need physical processes, especially in production tooling, manufacturing and certain aspects of IP protection and validation. VR still has a while till we can start to implement it into various processes. There is a need for developers to create applications that allow companies to consider investment into a digital process and push boundaries in efficient and sustainable practices. Regardless, companies looking to integrate VR into their processes should weigh the initial investments against the long-term savings and efficiencies VR can provide. ?

User cases?

User Case 1:

Popular clothing brands such as Nike could implement this into both their product process and customer experience. During the design phase, they could allow designers to create their own shoe with different materials as part of their portfolio without the cost of materials. It could then been showcased in a dynamic environment rather than creating a prototype, this way it will help minimise waste and time needed to create the prototype. The company can then choose to invest into the shoe they would like to be manufactured and released. Similarly, VR could help improve the shopping experience by allowing consumers to wear their clothing or shoes.

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User case 2:

A property developer could utilise VR by using a digital model and in-person simulation. Though it could be more time consuming, developers can show what the building is like in a first-person view and be immersed into what the property could look like when it has been developed. Investors can explore various rooms within the building as if it were finished. Not only would this help provide more confidence for investors, but it would also allow the developers plan to be visualised that a small model would not be able to achieve.

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User case 3:

An investment firm could utilise VR by implementing a gallery like experience when presenting strategies to clients. They could utilise an empty space and allow investors to have access to all the data required as well as implement an interact-able style presentation where clients can tap and deep dive into the data. I think this would help provide deeper clarity to clients as well as feel more involved in the process.

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Summary

Overall, I think VR can and will change how businesses operate. It will help achieve sustainability and increase profits. However, there is still a while before we can really experience how powerful VR in a business environment can be. The steps towards this are promising but require a lot of R&D and feedback from companies who want to participate in implementing VR into their business. The future of how we operate is exciting, but can we execute the idea? Only time will tell.

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