How to Implement Vuforia Chalk Augmented Reality Application to Business to Consumer Business Model

Abstract

In the current industrial evolution, industries have focused on implementing technology such as augmented reality (AR is an interactive experience where the real world experiences have been made more significant and more improved by the use of computer-generated perceptual image information) in solving day-to-day business activities which has resulted to increased efficiency in conducting daily operations of the business. AR technology is widely used in application such as Vuforia Chalk application that is used for solving the business-to-business problem such as hiring an expert to guide a local technician in fixing a particular problem since it has the capabilities of ensuring live video sharing, marking and audio sharing.

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The primary objective of this research was to determine whether Vuforia Chalk application can be applied in solving daily activities in a business to consumer model. The motivation for this study was the reduced time and cost in solving a problem in a business-to-business model using the Vuforia Chalk AR app, which can also be implemented for business to consumer model resulting to the almost similar benefits obtained while using it for other business models.

A census survey was employed as a suitable research design for this study. The investigation was concentrated on Germany mobile users between the ages of 18 - 55 years. A total of 120 participants were recorded - both genders that are males and females. Data collected was mainly primary by using structured questionnaires mostly with closed-ended questions. The survey was delivered to the target group via an online platform. The data were analyzed using descriptive and inferential statistics.

This report consists of five chapters that are arranged as follows; firstly, in chapter one a detailed introduction of the research, background information that includes the problem of statement, research question, and research objective are presented. Then, in chapter two a literature review on augmented reality, the various categories of AR are described in details with the help of supporting images. Afterward, in chapter three, the methodology employed in the study is presented in details. Research design, data collection, and analysis methods are described. Further, in chapter four data presentation, analysis, interpretation, and discussion are presented in details using tables and diagrams. Finally, Chapter five summarizes the conclusions of this paper and provides recommendations for future work on Vuforia Chalk AR.

Data analysis was done with reference to the research questions. From the analysis it was clear that participants between the ages of 25-34 years indicated higher interest in Vuforia chalk app and were somewhat willing to download it in their devices. Also, they were willing to use the app by paying completely nothing. They were second by respondents between the ages of 18-24. Furthermore, a larger percentage of the participants indicated that they own devices that can support Vuforia Chalk app that is they are installed with iOS operating system. Thus, from this analysis, the research question and objectives were achieved. Therefore, their potential market for Vuforia Chalk AR app for use by Germany mobile users in executing and finding solution to daily activities.

CHAPTER ONE

Introduction

Background of the research

This research is conducted as a mandatory part of the International Business Studies of Applied Sciences. The knowledge gained during the business study is being applied to a real business opportunity throughout the research project. Data is gathered through primary and secondary research to analyze an opportunity, draw a relevant conclusion to leverage this opportunity and to make suggestions for future research. The researcher is taking part in an internship at PTC - Parametric Technology Corporation in Barcelona, where the study is conducted.

The research is focusing on the opportunities the Augmented Reality (AR) application (app) Vuforia Chalk is providing to end-consumers in Germany and the value it brings to the target group. The focus of this research is to establish how to implement Vuforia chalk Augmented reality application to business to consumer business model.

PTC Inc.

PTC is a global software company that delivers a technology platform and solutions to help companies design, manufacture, operate and service things for a smart, connected world (PTC Website, 2017). The above mentioned "things" can refer to all assets within a company, including vehicles, machinery or even human beings. The company was founded in 1985 and became in a short time one of the leaders on the software market. Three years after its foundation PTCs Pro/Engineer was already on the wish list of engineering departments and awarded the best technology of the year in 1992 by IndustryWeek (Teresko, 2004). A couple of years later they became one of the leading global suppliers of CAD software. The headquarter is located close to Boston Massachusetts in the United States. In 2018, the company had about 6000 employees in thirty different countries all over the world. Furthermore, PTC has 1,350 service professionals where the majority are software engineers.

Product Portfolio

PTC is all about the convergence of the Physical and Digital world and supports industrial innovation. Computer-Aided Design (CAD), Product Lifecycle Management (PLM), Service Lifecycle Management (SLM), Internet of Things (IoT) and Augmented Reality (AR) are all part of this portfolio. PTC's CAD software is Creo; the PLM software is Windchill, Servigistics supports SLM and ThingWorx allows IoT and AR development. Each of the products has multiple extensions to please all the needs of B2B customers (PTC, 2017). The CAD and PLM software solutions are the pillars of PTC's product portfolio and enabled PTC to invest in IoT and AR. Since 2014, PTC has spent more than $1 billion in these two sectors (ThingWorx, Axeda Machine Cloud, Coldlight, Kepware for IoT and Vuforia for Augmented Reality) which are the real differentiator compared to the competition (PTC Annual Report, 2017).

Vuforia & Vuforia Chalk

The part of PTC that the thesis has focused on is Vuforia. Vuforia is a software development kit (SDK) for mobile iOS devices (iPhone 6s or later, iPad Pro from 2015 or later and iOS devices with iOS 11). Every mobile application has unique requirements, and Vuforia supports a variety of tools for software development that developers can choose from. The tools are Vuforia's competitive advantage and make it the most innovative and widely accepted mobile SDK. PTC acquired Vuforia for $65 million in 2015 from Qualcomm Connected Experiences, a subsidiary of Qualcomm Incorporated. Vuforia initially started in 2011 and had a global network of more than 375.000 developers and partners. More than 45.000 applications for private and business use have been developed with Vuforia on mobile devices so far (Needham, October 2017).

"Mainstream augmented reality is at the beginning of a strong positive inflexion point, and Vuforia Chalk is a great example of how AR can transition from enterprise-only to use in everyday life. We see Vuforia Chalk as a fundamentally disruptive form of remote communication that will be well received across multiple sectors and for multiple use cases." (ABI analyst Eric Abbruzzes, 2016)

From this quote of an analyst of ABI Research, we can infer that there is a vast potential acknowledged by this Organization which explored what value can be generated from using Augmented Reality in business to business relationships.

"Vuforia Chalk represents one of the most practical uses of AR technology to date. It has the potential to improve personal and professional lives - initially by helping each other!" (Jay Wright, President Vuforia at PTC, 2016)

Chalk is an application that is providing the client with remote assistance, which is hard without being able to show or even more difficult to explain without knowing the right wording to define the issue. Customers are now able to support each other by connecting the cameras of two remote gadgets. Both participants (A and B) can see the same environment. In the case of A needs help, A can easily show the environment he is into B and B can easily help A by drawing precise annotations with his finger into his environment. These annotations are so-called Chalk Marks and attached to the objects and surface in the environment. At the same time, the users can communicate and give or take instructions like "Press the red button for five seconds, the one that I have just highlighted" or "Do you see the three wires in front of you? Take out the one I painted yellow". Furthermore, the Chalk Marks do not change their position; they stick on the environment even though the device is moving in a different direction.

Vuforia Chalk is using the Vuforia Fusion engine, a new capability within the SDK for AR experiences. It is responsible for the detection and scan of the environment. The Fusion engine is standard on most iOS devices, so users do not need to purchase a new smartphone or tablet. Currently, Vuforia Chalk is only available in the US App Store.

Opportunity Statement

In 2012, AR made its first significant steps into the mass market having Google presenting its Google Glasses. Even though cancelling this project in 2015, Google believed in AR and invested $ 500 million into Magic Leap for further research and development. Another competitor that draw the attention to AR back in 2016 was Nintendo in cooperation with Niantic. The application they have launched was Pokemon Go, which generated a revenue of $ 600 million (Digi-Capital, 2016).

Digi-Capital, ABI Research, Tech PRO Research, and other top research businesses predict AR to become a more crucial part in today's business environment, and the potential and success go far beyond Pokemon GO, Snapchat, other gaming, or social media platforms. The majority left augmented reality unnoticed for years, whereas it was part of our everyday lives already. For example, the offside line in football or the head-up display in cars, which displays the way or the navigation system. AR is more common in B2B as it is integrated into Mercedes vehicles since 1990. In case of an accident, Firefighters possess so-called Rescue Cards that are connected to an application named "Rescue Assist"; which is supplying the user with information where the car can be cut open to free passengers (Wolfgang Stelzle, 2017).

Augmented Realities are heading forward to shape the future of IoT and increasingly influence industries and service apps. Due to the presence of Augmented Reality a new technology was found that fundamentally changes the way of people interacting with the physical and digital world. A growing number of smart-connected products and digital content, along with growing AR technology, will create more and more powerful AR experiences.

Forecasts of experts for the growth of the AR market vary. However, reports from Digi Capital, ABI Research and Markets and Markets estimated that the market would reach a value somewhere between $24 and $83 billion by 2021 (PTC Intranet, 2018). Along with own research and considering these numbers, PTC estimated a total AR spending, including hardware, software, e-commerce, games, and advertising, of $63 billion by 2021. The presented numbers show the industry's potential and the willingness of companies to invest in AR. However, to expose the value that AR and especially Vuforia can bring into people live the customer in this market have to be further analyzed, and new insights must be revealed.

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