Immersion: the next frontier in digital experiences
Dieter Gerdemann
Partner & Managing Director at Kearney | European Lead Digital and Analytics Practice
On 5 June 2023, Apple made its entry into the virtual reality (VR) market with the Vision Pro headset, prompting some industry commentators to predict that the technology is coming closer to its ultimate promise: as an everyday wearable.
With the ability to access augmented reality and virtual reality applications, and controllable by moving the user’s eye, hand, or finger, it’s the continuation of a trend that has seen the online world move from its text-processing origins through the viewing and creation of static and moving images, to one in which accessories like a keyboard, mouse, or controller are no longer required.
As Apple has coined it, we are now in the era of "spatial computing", where the physical and virtual worlds will become increasingly enmeshed.
But wait a minute—isn’t this what the metaverse was supposed to deliver? Actually, there’s a difference, but it’s easy to get confused between the various applications of different technologies that alter our perception of realities in various ways.
Let’s revisit what each “reality” allows users to do (Nannan & Hamari, 2021 ):
While the Metaverse is geared towards outsourcing human interaction through avatars in virtual worlds (e.g., Decentraland? or?The Sandbox ) immersive experiences enabled through devices like the Apple Vision Pro is more about enabling users to switch between experiences in the real world and virtual simulations with a high degree of concentration and attention, with just the flick of a finger (or eye).
It’s this type of immersion that we believe will have the greatest impact on businesses and consumers going forward. We think that the time has come to look at three important questions that show the actual value of immersion for companies out there:
Here’s our latest thinking on it, informed by survey data from 1,000 US consumers.
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Why immersion—and why now?
We see three main reasons why immersive experiences are coming to the fore:
1. Advances in technology
First of all, the technologies behind virtual, augmented, and mixed reality experiences are now more convincing. As computing power, display resolution, tracking systems, and graphics capabilities have all improved, it is easier to become more fully immersed in whatever digital simulation you are interacting with, rather than being distracted by pixelated images, or off-kilter movements. At the same time, communications networks have also improved with the introduction of 5G, and as this becomes further embedded and we move towards 6G connectivity, greater capacities to handle the amount of data required and even real-time on-server graphic calculations.
There have also been some big leaps forward with the hardware. Early on, there were lots of complaints about VR and AR headsets being too bulky and uncomfortable, but as more providers have come on board, these have started to slim down (Bigscreen Beyond claims to be the world’s smallest VR headset, for example). Many headsets are also becoming more affordable, with the Meta Quest 3 starting from $499 in the US, although Apple's forthcoming Vision Pro will retail at a hefty $3,499 . However, it is likely that immersive technologies will continue to evolve rapidly, giving them a longer battery life, and making them cheaper and more comfortable to wear.
While early iterations of the technology tended to be limited to a single platform, it’s now possible to integrate them more seamlessly with mobile devices and web browsers. This gives providers access to a wider audience by reaching them where they already spend a lot of their time, without the need for specialist equipment. We can expect many more developments here: Apple has already announced that the operating system behind Vision Pro—visionOS—will have its own App Store. Furthermore, Apple introduced a new feature in their in their iPhone 15 Pro, called "spatial videos ", which allows users to experience their videos in new ways on their Vision Pro glasses. And where Apple goes, many more are sure to follow.
2. User expectations
As digital technologies have transformed just about every industry and lifestyle activity, consumers now expect more than passive consumption. They want personalized, interactive experiences that fully immerse them in a story or a brand.
Immersive technologies provide this by enabling people to interact with digital content in a more natural and intuitive way. Immersion helps bridge the gap between the physical and digital realms, offering a more compelling and realistic experience.
This kind of emotional connection is what will give smart companies the edge, enabling them to stand out from the competition. By capturing attention and creating memorable interactions that heighten the senses and trigger emotional responses, they will be well placed to foster active engagement with the audiences they want to attract.
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3. Better digital experiences
As we’ve alluded to, digital experiences are now an integral part of everyday life for billions of people, most notably younger generations like millennials, Gen Z and Gen Alpha, who only know a world defined by internet connectivity, have a natural affinity for technology, and expect content and experiences to be delivered in a digital way.
Immersion will continue this shift by providing even richer and more engaging digital interactions. People are increasingly open to adopting immersive technologies and exploring the possibilities they offer, leading to more widespread interest and investment in the field. As an example, more than 50% of our study respondents already want to purchase at least one immersion enabling technologies (e.g., VR goggles).
We’re already in an age of information overload, so as more firms start to see the potential of using immersive experiences, the key to success will be providing compelling, authentic experiences that create genuine connections between companies and their customers’ values and aspirations. Figure 1 shows selected examples for today’s use cases of immersive experiences.
What do consumers think about immersion?
Our study based on 1,000 US consumers shows that the interest in immersive experiences keeps growing, as more than 60% of the respondents expect to regularly use immersive technologies in the next 5 years. Although such technologies can be designed for anyone, our results reveal three factors that will influence adoption.
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1.???? Consumer demographics
First, younger consumers are already engaging in more immersive experiences and also have a higher interest in using them in future. Those aged between 25 and 34 showed both the highest interest and existing experience.
Second, unsurprisingly, our data indicates that income has most influence on consumer interest in immersive experiences (see figure 2). For example, high-income individuals have up to 30 percent more interest in immersive experiences compared to those on a lower income. Furthermore, cost remains the greatest concern overall, which indicates that unless prices change significantly, mass adoption is still some way off.
Third, our survey also shows that men are more active in terms of using immersive experiences and see them having a much earlier impact on their lives compared to women. As an illustrative point, they were three times more likely to be familiar with terms associated with immersive experiences (e.g., the Metaverse, VR, and so on) than women.
Interestingly, we found that consumers who had already used immersive experiences have more concerns about it than those who have yet to get involved. The most common concerns relate to the cost of the technology (79%), data security (78%), and negative social implications due to the partial digital encapsulation of realities (75%).
2.???? Use case preferences
As for where and how immersive experiences are likely to be used, our survey delved into five categories, covering: Fun and entertainment, studying and learning, travel and navigation, shopping, and collaboration and work.
As expected, most current users engage in immersive experiences that are around fun and entertainment (40 percent), driven by interest in gaming (see figure 3). By contrast, more than half said that they had never had an immersive experience in any of the other categories.
Looking ahead, it seems that fun and entertainment will continue to be the biggest draw for consumers, with 41 percent highly interested in this category. At the other end of the scale, just under one in three (31 percent) showed a high interest in immersive experiences for collaboration and work. However, overall, we can see that there is a broad and significant level of interest in using immersive experiences across all categories (see figure 3).
What does immersion mean for organizations?
As we have discussed, immersion holds the potential to change the nature of human activity and interaction at home and at work, once the technology has advanced to a point where the hardware is suitable for mass use.
With big hitters like Apple and Meta now in on the game, we see this happening sooner rather than later, meaning leading companies will get off the starting blocks quickly, and start to prepare for how immersive experiences can enrich their business model. Although our primary focus has been on the consumer viewpoint, we recognize the immense potential of immersive technology for internal applications, such as logistics, operations, training, and more. In these areas, adoption has already advanced significantly.
To achieve successful integration of immersive experience technology into internal processes and products, three focal points stand out:
1.???? Organization and processes
Immersive experiences will change how people are able to work together. From today’s collaboration tools that virtually link people in different locations, immersion will enable them to come together in the same environment. This could make remote and hybrid work options even more interesting for many industries and create opportunities for social interaction at distance. This will have a knock-on effect on the physical footprint, as well as remote working and co-working models.
As businesses venture into the realm of immersive experiences, it's not enough to simply integrate new technologies without a clear roadmap. This transformational shift requires meticulous planning and guidance to ensure the realization of desired results. The successful deployment of immersive technology is not solely about the tech itself but more about how it dovetails with an organization's goals and operations.
Essential steps are: Implementing and adapting existing workplace policies. Comprehensive training is vital, ensuring employees harness the tech's full potential and avoid mishaps. Defining specific use cases in the company's context ensures the technology addresses real needs and delivers tangible value. When these measures are woven into a cohesive change management plan, companies can transition smoothly and reap the technology's benefits efficiently.
All these steps, when embedded within a robust change management strategy, pave the way for a smoother transition and maximize the benefits derived from immersive experiences.
2.???? Technology and capabilities
Obviously, there are technical implications associated with introducing immersive experiences. As well as devices that allow people to interact with their new environments, there will be new infrastructure, platform, and software requirements. And as with any technological transformation, firms will need people with the skills to set up and operate the new system. A thorough assessment of both the existing IT architectures and skill levels will be needed, followed by decisions about whether to build new, bring in-house, or outsource in both cases.
3.???? Products and services
Immersive experiences will also create new opportunities to offer customers different products and services. Immersion means a whole new way of communicating with and entertaining consumers for a start. However, immersion also holds the potential to showcase products online in a whole new way. Items that were difficult to get a feel for previously (like furniture, and so on), will become much more “real” to potential shoppers. And as Apple has already demonstrated, immersion will create new products, services, and applications designed specifically around immersive experiences. The entire customer journey is ripe with potential for transformation.
As pioneers in digital transformation, we have helped many organizations adapt successfully to the innovative potential of advanced technologies, and our established heritage in operations and engineering means we know exactly how to embed change and accelerate impact. That’s why we stay on top of the topics that matter, bringing you the strategic know-how, operational can-do, and practical empathy to make your next breakthrough. Want to know how immersion can work for you? Get in touch with one of our authors to learn more.
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