The slow rate of technology adoption amongst many UK businesses could impact their ability to compete on an international scale – that’s according to a new study by YouGov and BT. The survey of over 1,000 businesses - ranging from SMEs to large enterprises - reveals the digital immaturity of some UK businesses, driven by a lack of awareness of key emerging technologies amongst business leaders and a failure to link technology benefits with improved business performance.

BT’s” state-of-the-nation report, “The Future In 2020 Review” , shines a light on the current take-up of digital technologies amongst UK businesses and their future investment plans, with one third having no plans to invest in new emerging tech over the next five years. Of the 14 new technologies highlighted in the survey, more than 50 per cent of business leaders – including Chief Information Officers (CIOs) – were only familiar with half of them.  Meanwhile, 40 per cent of those business leaders who have adopted new technologies worry that these have not been implemented successfully. This reveals a tech awareness problem amongst senior business and IT decision makers, which, when coupled with a digital skills gap, risks holding back the productivity and growth of UKplc.

UK'S DIGITAL IMMATURITY

The report’s findings indicate that a significant proportion of UK businesses are trailing behind in the technology innovation stakes. While more than 40 per cent of businesses have adopted VoIP, no other emerging technology has an uptake of more than 25 percent. Currently only 20 percent of businesses have embraced IoT, and roughly 30 percent of businesses believe that 5G will play a role in their future roadmap despite forecasts that 5G will add $8trn to global GDP by 2030. When asked about technology investment plans for the next five years, nearly a third said they have no plans to invest in data driven technologies such as AI and Machine Learning.

Businesses in the medical, health and education sectors are revealed as those where the biggest gaps lie, with these industries not currently using any of the technologies listed in the study, while over a third of these have no plans to adopt them in the next five years. Unsurprisingly, IT and Telecoms tops the list for the broadest investment in innovative technologies, although this is still relatively low at 26 percent.

AN AWARENESS GAP IN C-SUITE

The failure amongst some businesses to embrace emerging technologies can be linked to a lack of awareness, with more than 50 percent of business leaders stating that they were not aware of the technologies listed - despite the respondents sitting in a C-suite role or within a senior IT team. For instance, 31 percent said they are not aware of AI and 60 percent are not familiar with as-a-service solutions and managed security services. And, of those that have adopted new technology, 40 percent of respondents believe these are not being implemented successfully, so businesses are unable to reap the benefits of their technology investments.

BUSINESSES FAIL TO LINK TECHNOLOGY WITH COMMERCIAL GOALS

The research also reveals that the most common reason for businesses not adopting new technology is a lack of understanding of how technology can drive improved business performance. While industry experts point to 5G and complementary tech as a key catalyst for the fourth industrial revolution and business transformation, almost half of UK’s businesses are yet to recognise the relevancy and benefits it brings to their business, rising to 57 percent for Machine Learning and AI.

When asked about core objectives, all business leaders agreed; increasing revenue, reducing operational costs and boosting productivity are key priorities for the next three to five years. However, almost a quarter of businesses struggle to see how digital tools can power commercial performance and achieve key business objectives.

One of the biggest barriers to technology adoption according to those surveyed is the financial climate, with 40 percent of business leaders citing that the current climate is impacting their technology strategy. Furthermore, 1 in 3 businesses expect skills shortages to hamper technology investment; even in the most digitally savvy industries such as IT and financial services, one-quarter believe that digital skills shortages pose challenges to technology adoption. In an effort to accelerate UKplc’s digital maturity, BT has launched its Skills for Tomorrow initiative with an ambition to reach one million business owners and their employees with digital skills by 2025.

Chris Sims, Managing Director of Commercial and Marketing, BT Enterprise’s unit said: “The research reveals that a significant proportion of UK businesses view new technologies as a cost rather than an investment to help boost growth. It’s clear that businesses need more support; whether that’s understanding what technologies to adopt, how to maximise the potential of that technology and how that translates into commercial success.

“As the 5G network continues to roll out across the UK, it will support the delivery and uptake of other emerging technologies like IoT, AI and VR. 5G coupled with these technologies will play a critical role in fuelling the post-Covid recovery, by boosting productivity, delivering new customer experiences and creating new business models. Whilst the research suggests that uptake of emerging technology is slow, the understanding and adoption of these technologies will increase as 5G becomes more prevalent. Businesses that can harness this early on can reap significant benefits; saving time, boosting efficiencies, unlocking innovation and creating a sustainable future.”

To support businesses through their digital transformation journeys, BT is planning to launch a new Digital Health Checker for its corporate and SME customers. This will give businesses a free online assessment of their digital maturity and will help them identify the best technologies to future proof their business and position them for growth.

Details of BT’s Digital Health Checker will be announced in due course. For more information on BT’s Skills for Tomorrow programme, please visit the website here.

Further Reading:

• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Learn more about BT @ www.bt.com
• Find out more about BT Skills For Tomorrow programme @ www.bt.com/skillsfortomorrow
• Read more about 5G on Field Service News @ www.fieldservicenews.com/5G
• Follow BT on Twitter @ twitter.com/bt_uk

The power of technology-enhanced remote assistance has become a mainstream concept in 2020 as we adapted to the needs of zero-touch service delivery during lockdown, yet the benefits of such tools go way beyond the confines of the pandemic. However, for those of us only just getting up to speed on this technology OverIT's Alberto Battistutti is outlines the core distinctions of some of the technologies at play... 

Augmented Reality (AR) can be seen as an extension of the user’s environment, which gets enriched in real time with superimposed digital models and information, such as texts, graphics and multimedia. The aim of this technology is to “augment” or, in other words, to improve the physical world with contextual, significant and relevant information.

The antithesis of AR is Virtual Reality (VR), a technology radically changing the users’ perception of the world as it immerses them into an artificial, unreal and computer-generated environment. Elements are then separated from the actual world and replicated into a virtual one, in which users rely on their five senses to interact with objects and places.

Merged Reality (MR) can be positioned in the middle, as it integrates digital models into the physical world, enabling users to interact with them while remaining aware of the real environment around them.

The main differences are about the devices used and, therefore, the functions provided and the sector where such functions can be employed.

The rapid deployment of supporting technology and the fall in prices of wearable devices (as already happened to handheld ones) will increase the spread of AR, MR and VR solutions, now expected to be a “can’t-live-without tech” for every company.

BENEFITS AND APPLICABILITY OF THE THREE TECHNOLOGIES

AR, MR and VR apply to a wide range of business opportunities, way beyond the initial expectations of the general public, which were limited to the entertainment and video game industry. Indeed, they have marked a turning point in many different business processes, from sales and marketing activities to Field Service and remote support, from training & learning to the manufacturing sector.

AR, MR and VR have proven to bring value to the business of those companies adopting them, both in terms of reduced time for work execution, thanks to faster maintenance procedures, improved staff productivity and efficiency, as well as of increased workforce safety, thanks to hands-free activity, remote training and collaboration.

Products based on such technologies are key factors for all companies, regardless of the sector they are operating in, their size and business turnover. Utility and Industrial Manufacturing sectors are currently leading the way in this digitalization process, due to the intrinsic nature of the activities their operators are always exposed to. AR, MR and VR are able to “extend” the resources’ capabilities. supporting them through guided procedures while carrying out maintenance activities on production lines, arming them with pertinent information on plant assets and, last but not least, connecting them with other colleagues to receive or give real-time assistance. The continuous transfer of corporate knowledge is therefore now a reality.

TYPICAL USE OF AR, MR AND VR IN BUSINESS

Very common cases where such technologies have a staggering potential are: remote execution of maintenance activities, virtual collaboration, training and product presentation.

On-field resources often face unknown assets, thus asking the company to send an expert on site. It goes without saying that such procedure is costly and time-consuming; in short, inefficient. Likewise, maintenance and repairing interventions nowadays represent the most critical processes for companies. Augmented Reality can bridge the skills gap and reduce errors made by technicians, thus ensuring a rapid and efficient sharing of know-how as well as increasing the percentage of first-time fixes and giving more accurate diagnoses. By harnessing the power of a shared, Artificial Intelligence-driven knowledge base, the application automatically suggests all possible solutions generated from learning the procedures of previous interventions.

The information provided can be integrated with the Geographic Information System data, thus allowing users to view networks, assets and technical data, as to assess in advance the impact caused by the creation of plants and networks, while cutting down the time required to identify assets over the territory.

"Expert maintenance technicians are extremely rare to find and are usually forced to move across the world to respond to growing requests for intervention..."

Moreover, the assets’ digital twins can be manipulated in real time and enriched with further details, by anchoring notes shared by those remote users with the skills necessary to support the execution of field activities. Such functions extend competences and allow to complete maintenance and assistance interventions rapidly and efficiently.

The technology breakthrough reflects into increasingly sophisticated machines, requiring maintenance interventions performed by resources with a higher degree of specialization. Expert maintenance technicians are extremely rare to find and are usually forced to move across the world to respond to growing requests for intervention, thus extending machine downtime and increasing expenses for companies. In this regard, remote training on new procedures or complex activities is becoming more and more important. Implementing these functionalities proves to be game-changing for situations which are difficult or too expensive to recreate in reality.

It is worth noting how the current global emergency situation and the resulting restrictions have boomed sectors concerning remote collaboration and product presentation. These two particular uses of technology allow to minimize travels of personnel, both in case of operational and commercial activities, thus taking digital information wherever the business requires it, in total safety, and with even higher results than those achievable with traditional methods.

Further Reading:

• Learn more about OverIT @ www.overit.it
• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Read more about OverIT on Field Service News @ www.fieldservicenews.com/overIT
• Read more about AR on Field Service News @ www.fieldservicenews.com/augmented-reality
• Follow OverIT on Twitter @ twitter.com/OverITSpA
• Connect with Alberto Battistutti @ https://www.linkedin.com/in/abattistutti/ 

We asked Bill Pollock to predict what he thinks 2020 will bring. Typically, he went beyond the next 12 months and horizon-scanned into the not so distant service future where failure to keep-up could mean the end of your offering.
There has been a growing shift away from manufacturing toward the Servitisation model for decades already. However, while the manufacturing model is a well-entrenched, deeply-rooted model that everybody understands; the Servitisation model is still not anywhere near being as widely understood – even within the services sector.

The transition from break/fix, to network services, to self-help, to remote diagnostics/support has been steady, and has followed a logical evolution over the years. However, the move toward Servitisation requires more of a “leap of faith” as well as a whole new mode of operating (and pricing) for which many services managers are still not familiar – or comfortable.

This trend has carried on for decades – and the services sector is just about ready to “rock and roll” with it moving forward; however, even some of the key (and more savvy) players are not yet 100% certain that they have it right with respect to re-engineering their overall service delivery structure; services support organisation; KPIs and metrics; services support policies, procedures and processes; pricing, accountability – and the list goes on. As such, this trend will positively carry on throughout 2020 – and well beyond – as each major group of services organisations (i.e., leaders, followers, “wait-and-see’ers”, skeptics, and all others) begin their respective transitions.

The evolutionary prospects for Servitisation are quite simple: the market, as a whole, will need to see some prime examples of success in their respective vertical and/or horizontal services segments before making the plunge. They’ll need to move beyond all of the “failure” and pratfall stories before feeling more confident. They’ll need to hear some success stories – and, in their own segment. Bank/financial organisations will need to see how others in their field have succeeded, and what the positive results have been. The same will go for the medical/healthcare segment, manufacturing/industrial segment, and so on.

Most organisations will also need help with how to price “power by the hour”, “airplanes in the air”, and other “new” ways for pricing their services. I suspect there will be an uptick in the number of case studies, Webcasts and conference sessions focusing on these and other related areas. Servitisation is – and will continue to be – a big deal for years to come.

"Customers no longer will be pleased simply with equipment that is working, sensors that are communicating, and devices that are operating..."

Organisations are also transitioning from providing corrective maintenance to predictive maintenance, and this trend continues to shape the industry moving forward. Corrective maintenance has worked for many years because, basically, that’s all the industry had to offer. From the break/fix, call the manufacturer’s hotline, days; through the current remote diagnostics and repair days, there has been a common thread running through our industry: Some piece of equipment fails, a call is made (i.e., either by phone, in the past; or, today, remotely from the equipment itself) and a corrective action is taken. 

However, these are examples of the soon-to-be-bygone OTR (i.e., On-Time-Response), MTBF (i.e., Mean-Time-Between-Failure), MTTR (i.e., Mean-Time-To-Repair), FTFR (i.e., First-Time-Fix-Rate) and PM (i.e., Preventive Maintenance) days. Through Predictive Diagnostics and Predictive Maintenance the need for any On-Time Response will be highly diminished, as will the need for MTBF, MTTR and FTFR KPIs/metrics, etc. Over the coming years, there will be the need for “new” metrics, such as MTBPF (i.e., Mean-Time-Between-Prevented-Failures); MTTR will be measured in minutes or seconds, rather than in hours or days; FTFRs will be normalised as everything will get fixed in a single attempt, whether it requires a single “try”, or multiple “tries”; and PMs will virtually disappear (or at least be replaced by another PM = Predictive Maintenance). 

There will be a whole “new” way of delivering service, as well as measuring the success of the organisation through an entirely “new” set of KPIs, or metrics. [By the way - I have already written many times about the need for “new” KPIs/metrics and, respectfully claim the rights to MTBPF!] 

Customers no longer will be pleased simply with equipment that is working, sensors that are communicating, and devices that are operating – they are now beginning to look more closely at how their systems, equipment, sensors and devices are working together, in their behalf to get the job done. A services organisation that merely keeps individual systems or equipment up and running (i.e., maintaining high levels of uptime), but does not ensure that they are all working together to effectively and efficiently execute the company’s business, will ultimately find themselves being replaced by other services organisations that do. The clear winners will be those organisations that “get” Servitisation, and not those that do not.

"There will need to be an industry-wide educational 'push' as to what Servitization really is..."

Again, what will move the needle in 2020, is clearly communicating to the marketplace what failures to avoid (and how to avoid them), and what successes can be had (and how to achieve them). There will need to be an industry-wide educational 'push' as to what Servitisation really is, what it can do for the organisation (and what will happen if they don’t embrace it), what the ultimate value propositions are for transitioning to this “new” model, and what some of the best success stories have been.

Further, most services organisations are not currently using their respective Field Service Management (FSM) solutions to their full capabilities. The most successful organisations may come close, but there are few that eke out all of the capabilities that may otherwise be offered to them. Some may augment their FSM solution with a home-grown Excel spreadsheet “patch”; others may be using their Sales & Marketing Management (SMM) or Customer Relationship Management (CRM) solutions for activities that their FSM could (or should) be able to support; and still others may not even be aware of the full spectrum of capabilities they may have right at their fingertips. Again, it becomes an educational process that should be driven by the FSM solution providers themselves through the offering of strengthened professional services, such as customer portals, training, train-the-trainers, etc.

As some FSM solution providers may be focusing more on developing Augmented Reality (AR), Merged Reality (MR), Artificial Intelligence (AI) or Machine Learning (ML) based applications to bolster their offerings, they may be relatively deficient in focusing on the basic, or “core”, components of their solutions and, thereby, miss the opportunity to help their customers/users get the most out of their offerings.

Services organisations will also be relying much more heavily on apps and mobile devices in support of their service delivery performance in 2020. Society, as a whole, is relying more and more on apps and mobile devices for communications; and, in many cases, the services sector is leading the way.

Most FSM solution providers are providing their customers/users with more apps and customer portals to facilitate their use of the solution, as well as for communications with their remote support providers. Every year, a higher percent of business is being conducted remotely, and the need for more functional mobile communications is increasing commensurately. The IoT stands for the Internet of Things; and in this regard, humans may also be considered as one category of “things” that the IoT helps to connect. 2020 will see the proliferation of all types of “things” connected to one another through the IoT: systems, equipment, devices – and people. In fact, the numbers of connected things will likely to continue to grow at an accelerated rate in 2020 – and beyond. The more connectivity there is, the better the delivery of service can be.

"The move toward AR and VR is beginning to grow even faster as more installations have been deployed, and more success stories are making the rounds..."

Companies will also continue to expand their use of AI-powered field service technology and tools. Basically, companies that are already using AI technology in support of their services operations are much more likely to expand its use over time – and, probably, very quickly. However, companies that do not yet employ the use of AI in their services operations typically lie on either side of the fence: either, “we need to do it now”, or “let’s wait and see how this all works out.” The pressure to embed AI in their services operations will be so intense, however, that there is likely to be a surge in usage throughout 2020 and successive years.

Primary uses of AI include the powering of a chatbot capability; the ability to identify key target markets for selling/upselling/cross-selling products and services; and the ability to make their overall services operations work much more productively and efficiently.

Just as Virtual Reality (VR) has made watching American football games (and European football games, as well) easier for the layman to understand, it is also making it much easier for field technicians to repair equipment in the field. No more bulky documents or manuals are required, and training programs can be short-cut (to a certain degree) as AR and VR, merged together into MR, can lead the technician to a “perfect” fix, first time, and every time.

The move toward AR and VR is beginning to grow even faster as more installations have been deployed, and more success stories are making the rounds (at trade shows and Webinars, etc.). In fact, the merging of AR and VR has sent out a signal to the “Wait and see’ers” that they may be missing the boat on AR as it is already merging with VR – all while many of their competitors are beginning to implement AI and Machine Learning platforms in support of their services operations. The time to move is now – before it’s too late in terms of having your competitors ending up being better equipped to support (and market to) their targeted customer base.With the rise of IoT-connected devices and smart homes, many new challenges lie ahead for the field service industry. The rise of IoT-connected devices and smart homes provides a major value proposition to customers, as well as to the FSM solution providers. However, what also comes along with the benefits are a number of potentially serious consequences.

For example, once virtually everything is connected, smart systems will likely become more susceptible to power outages, hacking and various types of breaches in security. The analogy is: before watches, people used sundials to tell time. Then watches could help them tell time – until they either wound down, or the batteries went dead. Today, if the global satellite network goes down (e.g., as a result of space debris, solar flares, etc.), many things we all take for granted will stop working, including a partial/temporary halt to our ability to tell time, make change, or communicate to one another via our mobile devices.

As an example, as I have been writing this article for Field Service News, I have used a pink post-it note to cover the camera on my iMac. At the same time, Alexa is probably listening to anything I say without me even thinking about it. Further, somewhere across the globe, there is probably someone standing outside the front window of a home and yelling at Alexa, Googol or Siri to “remind me what my password is for the front door security code.” What the "expert” hackers can do to outsmart smart homes or businesses will only get more invasive – and potentially dangerous – over time (i.e., the invasions of privacy tend to happen first, with the “patch” or “fix” coming later). As such, the need to provide continual connectivity PLUS protect the privacy of the customer/user will be paramount as more and more smart implementations go into play.

Making projections for 2020 in the services industry is relatively easy. Basically, everything you have gotten used to is going to change. Here's my summary:

• The “good guys” will make everything better; and the “bad guys” will try to make everything worse
• Every time you make a mistake, the whole world will find out about it virtually instantly
• Service fixes will be completed faster – but you won’t always be aware that there was a fix
• Service pricing may or may not be more expensive – but it will certainly be different
• New start-ups will enter the market; but some old standbys will be forced to depart
• Most of the KPIs/metrics you’ve used for decades will be replaced
• The most successful services organisations will follow the lead of technology – not the competition
• You think that today’s Merged Reality applications are too futuristic or too soon? Wait ‘til tomorrow, when everything is merged (i.e., connected)

Read more from Bill at Pollockonservice.com 

Copperberg’s Thomas Igou outlines the four key technologies that he believes are going to be shaping the future of the aftermarket in the coming years...

What reality are you using in your service programme? Virtual or augmented? Or are you leaning towards mixed? Mark Glover attempts to simplify the technology while keeping an eye on the real world.

Augmented, Mixed & Virtual Reality is certainly a technology trend that is set to massively impact businesses in their field service processes...

Andrea Bardini, Marketing Product Manager, OverIT explains more...

Companies everywhere are constantly seeking new ways to reduce costs, increase profits and improve customer satisfaction and these goals are exactly the ones that modern field services organizations are being asked to achieve.

Field Service is no longer a simple and basic data collection and reporting function to resolve issues and react to emergency issues with assets, it has now really become the front-end function in which the dialogue and interaction with the customers are happening.

Field Service technicians and engineers are more and more often seen as the trusted advisor who the customer looks to resolve their problems, and for this reason, they need to be equipped with the best technology available to perform their tasks at the best delivering value for the clients.

"Collaboration is actually the key for field service transformation..."

At OverIT, we continue to innovate and improve our solutions to respond to the market needs and we are firmly convinced that building applications on Augmented, Mixed and Virtual Reality is key to streamlining field processes.

By leveraging the virtual collaboration, knowledge sharing and remote assistance capabilities provided by cutting-edge technologies, companies can arm their technicians with the latest tools to perform field tasks faster, better, and hands-free.

Moreover, companies can dramatically reduce travel costs, training, and increase the first-time fix rate and service delivery, having a big impact on their operational expenses.

Collaboration is actually the key for field service transformation.

The more technicians and engineers are able to collaborate and get real-time information to resolve issues, the more they will be able to complete their tasks in a more efficient, productive and effective way. AR, MR & VR is a watershed technology not only because it frees people from two-dimensional screens and pages to help improve the way they learn, share, understand and act, but it enables remote sharing and interaction in a completely different way.

People in the field are able to share the same asset, even though they are located in different places, they can interact, ask questions, drawn on it, they can take notes, but the most important thing they have at their disposal all the information they need in their “virtual room” with no need to bring any more paper and meanwhile they can visualise instructions or receive guidance from remote colleagues they can operate because they are hands-free.

Moreover, virtual collaboration is reshaping the way companies are running training increasing efficiency and effectiveness.

We want to guide our customers through the digital transformation of the Field Service and the only way to do that is investing in cutting-edge technologies to offer a complete and innovative solution that can respond promptly to customers’ needs and that can adapt easily to the business processes to bring Field Service activities to the next level.

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Gunish Chawla and Daniele Pe, Senior Principals and Irish Manipis, Senior Business Analyst at Delta Partners have published a deep and far-reaching exploration of exactly how Augmented Reality and Virtual Reality are set to become key platforms in the future.

We are already seeing an increasing number of forward-thinking field service organisations adopting such platforms so this detailed report provides some excellent, well-resourced context about the future of a technology set to play a very big part in the future of field service management...

The relevance of AR and VR in re-shaping user experiences and the implications on the telecom industry.

Augmented reality (AR) and virtual reality (VR) have the potential to become the next big platforms after PC, web, and mobile. Isolated applications of AR and VR have been around for a while, but the technologies to unlock their potential have only recently become available. We expect AR and VR to fundamentally transform how consumers interact in the physical world and how enterprises run their operations.

Augmented and Virtual Reality: Distinct but complementary technologies

In a nutshell, AR overlays digital imagery onto the real world, while VR immerses a user in an imagined or replicated world (see figure 1 below).

Figure 1: AR and VR overview

Fundamentally, AR and VR create a new way of interaction using gestures and graphics that are highly intuitive to humans. VR creates an illusory “sense of presence” in an imaginary world created through a computer-generated simulation. For instance, this allows users to experience travelling, shopping, creating, talking or interacting with people remotely in a completely different way. In contrast, AR allows people to access digital information in their real-world environments, thereby allowing “simultaneous existence” in both physical and digital worlds. Both AR and VR are transformative in nature and likely to co-exist as immersive platforms.

A whole new realm of opportunities

We are still at the beginning of the AR and VR revolution, but there is no doubt that they have the potential to revolutionise multiple industries over the next five to ten years, transforming the way we interact with the surrounding world, unlocking new experiences, increasing productivity and efficiency (see figure 2.)

Figure 2: Selected AR and VR transformational use cases

From the use cases, one can infer that AR and VR will create a shift that is comparable, if not greater, than that of the smartphone and underlying platforms.

This potential has been recognised by major technology giants and OEMs (Original Equipment Manufacturer).

Facebook made an early bet in 2014 when it acquired Oculus for $2.1bn and since then it has acquired over ten other AR/VR players. Other technology giants have followed suitFacebook made an early bet in 2014 when it acquired Oculus for $2.1bn and since then it has acquired over ten other AR/VR players. Other technology giants have followed suit – Google launched Google Cardboard, Google Glass and backed Magic Leap; Microsoft launched HoloLens and Apple acquired AR software maker Metaio. Samsung has multiple projects coming from its in-house C-lab incubator such as Monitorless (PC-viewing glasses), Vuildus (VR home furnishing), Relúmῐno (smart aid for the visually impaired) and TraVRer (360-degree travel video platform).

While technology giants and OEMs have been leading the charge, telecom operators have been slow to react, but, in recent years, we see operators in developed markets beginning to dip their toes in the water. For example, Telefonica launched start-up incubator Wayra currently supporting eight VR and four AR start-ups. SK telecom has developed 360-degree VR live broadcasting capabilities and BT is trying to revolutionise the sports experience through VR enabled football match telecast.

For AR and VR to become the next big platforms, challenges must be overcome

While significant progress has been made in this space over the past few years and the ecosystem today has hundreds of companies, thousands of employees and over $4.5 billion invested, with expectations to become an $80-100 billion industry by 2025, AR and VR today are still emerging technologies.

For AR and VR to fully materialise and provide the impact described above, significant hurdles need to be overcome.

These can be grouped into four main categories:

1. Bulky and expensive devices: Despite the emergence of lower cost hardware options such as Google Cardboard ($15) and Google Daydream ($99), the majority of AR and VR equipment is very costly, e.g. HTC Vibe ($799), Oculus Rift ($600) and Google Glass ($1,500). In addition to the hefty price tags, the current AR and VR equipment is bulky and cumbersome (e.g. presence of wires). Though it may be suitable for static experiences (e.g. watching a movie), it will be a challenge in an immersive environment that requires freedom of movement and authenticity as functionality (e.g. employees in the manufacturing industry, who deal with dangerous machinery, and cannot be exposed to potential hazards).
2. Scarcity of “killer” content and applications: Without a wide variety of popular applications, it will be hard for AR and VR to reach mainstream success. Although there are many applications on the gaming and video front, AR and VR have yet to find their “superstar app” – i.e. the use case that makes the technology fundamental for both consumers and enterprises.
3. Limited penetration of technically ready smartphones and devices: Technical issues such as smartphone battery life and graphical capabilities hinder the adoption of AR and VR. To have the best AR and VR experience, devices need to have superior image display and audio capabilities (at least 2560x1440 resolutions), powerful processors (e.g. 820 Snapdragon), large memory space and adequate battery life. Today less than 10% of 2.8+ billion smartphones worldwide are compatible with Samsung Gear and Google Daydream.
4. Insufficient network speed and latency: Fully immersive 360-degree experiences require at least 25Mbit/s for streaming and can go up to 80-100Mbit/s for HD TV. With a global average of 7.2 Mbit/s, only about 12% of global connections satisfy these requirements. In addition, low latency is critical to delivering the best AR and VR experience because even small delays can have a disorientating effect. For instance, when a user turns and the landscape does not move simultaneously, the user may experience motion sickness. VR requires less than 1ms latency and currently, the global average latency is 36ms on fixed and 81ms on mobile.

The case of Pokémon Go (free-to-play, location-based AR game) clearly illustrates the situation. When Pokémon Go was released in July 2016, it exceeded 100m downloads within a month of its release, becoming the most downloaded mobile gaming app of 2016. It single-handedly proved how profitable and widespread AR could be, generating over a billion dollars in revenue for developer Niantic.

This was achieved with a game that was “simple” enough to work with smartphones without the need of any additional device and the content was a “killer hit” as demonstrated by the take-up. Despite the success, key issues emerged in terms of device capabilities and network. Pokémon Go requires the smartphone device to have long battery life, GPS sensor and compass.

Users without these functionalities would drain their batteries within a few hours or have to settle for a pared down version of the game which detracted from their enjoyment and experience. On top of device capability issues, Pokémon Go also experienced issues on mobile networks. Despite only taking up roughly 0.1% of the overall traffic, the game accounted for >1% of all sessions on the network.

This ten times differential was the result of communication sessions opening with Niantic servers every time an event happened in the game. Driven by the massive uptake, the cumulative effect from both bandwidth and sessions negatively impacted networks, especially when the game drove large groups of players towards specific geographical areas.

What role can telecom operators play in the AR and VR ecosystem?

As mentioned, telecom operators are yet to make a credible play in this space. However, we believe that they can play a fundamental role in helping overcome some of the challenges illustrated and thereby enable earlier materialisation of the AR and VR promise. This is where operators’ typical strengths such as network infrastructure deployment or devices distribution capabilities come into play.  But beyond helping drive these new technologies, we believe AR and VR have the power to transform the role of operators in the ecosystem.

If we believe that AR and VR will be the next big platforms, we should be able to imagine a world where we no longer look at our phones, but rather look up to visualise the content in front of our eyesIf we believe that AR and VR will be the next big platforms, we should be able to imagine a world where we no longer look at our phones, but rather look up to visualise the content in front of our eyes, and interact with the device through machine-learning enabled voice or visual recognition. In this scenario, the role of the smartphone would be significantly diminished.

This would provide a fresh opportunity for operators. Operators have missed the opportunity to play a significant role in the smartphone ecosystem - in terms of capturing a share of a customer’s mind and interaction time, and therefore monetising it. However, if the role of the smartphone diminishes, and new platforms take over, then opportunities arise for operators to play a pivotal role in the digital ecosystem beyond connectivity. This is where the roles of ‘open enablement platform’ and ‘application and content provider’ become relevant for operators.

Pragmatically, we have categorised the role of operators in the AR / VR ecosystem in four groups based on the level of involvement of the operator and the expected transformational results:  1) Device distributor, 2) Connectivity provider, 3) Open enablement platform, and 4) Application and content provider.

Figure 3: Telecom operators’ role in the AR and VR ecosystem

• As a ‘Device distributor’, operators would resell devices to end-users, and make them more accessible by subsidising, leasing or financing them as operators have been doing for smartphones.
• As a ‘Connectivity provider’, operators would need to ensure that last mile networks have intelligent traffic management solutions, high quality compression algorithms, low-latency and high bandwidth capabilities to offer users immersive experiences that are realistic, engaging and entertaining. As such, 5G technology will be critical in helping overcome network limitations. Similarly, the Telecom Infra Project (TIP), an initiative launched by Facebook in collaboration with operators, infrastructure providers and system integrators, focused on tackling the engineering challenges of delivering high-resolution video and virtual reality, will play a key role in enabling AR and VR take-up. However, driving these network transformation projects will require large investments on top of ongoing CAPEX requirements. Operators need to determine whether they can successfully and sustainably monetise this investment, which poses the following key questions:
  • Will the surge in data usage from AR and VR applications be enough to justify the effort? Could operators monetise the quality of service demanded by AR and VR through specific tariffs or network boost add-ons?
  • Can an AR and VR ready network be leveraged as a tool to boost differentiation, hence customer acquisition and retention, therefore driving the operators’ revenue share in the market?
• In an ‘Open enablement platform’ role, operators position themselves as the ‘glue’ that brings together different players in the AR/VR ecosystem: end-users, developers, devices manufacturers and content creators, effectively allowing different players within the ecosystem to develop solutions, ensuring interoperability and widespread adoption. This enablement platform will not only have typical network functionalities such as QoS management (deploying bandwidth intelligently based on pre-defined rules and parameters), robust content delivery network, and compression algorithms (to reduce network strain), but also a developer portal with tools such as APIs (to connect the different ecosystem providers and enable the longer tail of developers), dedicated SDKs, ready-to-use ‘basic’ AR/VR algorithms, billing capabilities and an analytics layer.
• As an ‘Application and content provider’, operators would collaborate with industry players to deliver AR and VR specific applications and content (e.g. video, gaming, shopping, manufacturing, etc.), where AR and VR will support specific use cases. This will help operators explore new revenue streams directly through app/content-based revenue models, and revenue sharing with app/content developers but also indirectly through improved positioning (meaning better customer acquisition and retention), and higher customer engagement (translating in a share of wallet and data usage boost). Korea Telecom (KT) is an example of an operator that is going down this path. For the 2018 PyeongChang Winter Olympic Games, KT plans to release a whole suite of AR and VR applications. These include Sync View (viewers watch the games through athlete’s lens), Interactive Time Slice (100 camera angles and screens), 360 VR Live (panoramic view of the games) and Omni Point View (all around view of the games). Along similar lines, BT is planning to drive its ambition to revolutionise sports watching to a new level by delivering fully-immersive, interactive VR content, which will place people right at the heart of the action.

In summary

While AR and VR are still emerging technologies, their mainstream adoption will increase dramatically as hardware costs fall, device functionality gets more sophisticated, more ‘killer’ content is developed, and network speed and latency improve. While it’s true that in the short-term, AR and VR will remain relatively niche, the mid to long-term potential could be transformational.

Operators can adopt a passive approach, where no specific step is taken in the advancement of the AR and VR industry beyond the ongoing modernisation of the network (e.g. 5G deployment), which naturally supports the materialisation of the AR and VR promise. This is unlikely to result in significant monetisation potential, and could further decrease operator relevance in the ecosystem, pushing operators further towards being pure connectivity providers.

Digitally-minded ambitious operators can champion and drive the AR/VR space by positioning themselves deeper in the value chain as a ‘platform enabler’ and/or ‘application and content provider’ Alternatively, digitally-minded ambitious operators can champion and drive the AR/VR space by positioning themselves deeper in the value chain as a ‘platform enabler’ and/or ‘application and content provider’. This implies early investment in the required network capabilities, a build-up of additional competencies on top of the connectivity layer and collaboration with technology players that are pushing the boundaries of the industry to develop end-user solutions. Operators that choose this path and do it right can leverage the novelty factor to reposition themselves within the ecosystem of tech and device players and in the eyes of the end user.

The telecom industry track record suggests this is a long shot for operators. Over the last decade, they have generally been poor at innovation and have time and again missed the opportunity to leverage their unique assets to position themselves strongly in the digital space. Nevertheless, there is intention from many leading operators to make a serious play within the digital space – AR and VR could well be the foundation to spearhead this transformation.

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Having explored some of the ground breaking new tools being used in field service including crowd service and Augmented Reality in his recent articles, Manuel Grenacher, CEO Coresystems now explores how video assistance can be used to great effect in improving field service delivery...

The outlook for the growth of the field service market is hugely positive, with predictions noting the field service industry will nearly triple in size to $5.11 billion by 2020.

Following on from my previous articles in Field Service News, several modern technologies are playing a major role in driving that exponential growth, including the Internet of Things (IoT) and augmented reality (AR) solutions. Another trend – or rather an overarching one that IoT and AR innovations both tie into – is the rising importance of video.

In addition to AR, as well as artificial intelligence (AI) and virtual reality (VR), new tools are emerging that make it possible to more directly involve service technicians, specialists and experts in field service operations, even if they are not on site.

Any provider of field services understands the frustration of having to comprehend a complex problem without a proper visual perspective of the issue at hand. Any provider of field services understands the frustration of having to comprehend a complex problem without a proper visual perspective of the issue at hand. With a verbal description (and perhaps an attempt to recreate strange sounds emanating from a malfunctioning device), a service technician is expected to diagnose the problem and magically offer tips on how to repair it.

When information cannot be transferred and made accessible to field service technicians on-the-go, this limits their ability to offer first-time fixes. With the rapidly increasing pace our lifestyles, consumption habits and mindsets, this is an issue because we are expected to be quicker, connected and digitalized.

The consequence is dissatisfied customers who face lost revenue due to extended system downtime.

Video assistance uses the tools available – like mobile devices – to provide images of devices in need of repair or even virtual spaces where service technicians can congregate to solve an issue. Companies can minimize errors, increase efficiency and speed up field services by, for example, uploading instructional videos and manuals and checklists for facilitating repairs.

Field service technicians can refer to these guides if they are unable to solve a problem on their own. This is a real help for service technicians who might be less familiar at repairing unique problems.

In addition to the growing complexity of service offerings, the aging workforce is one of the top challenges within the field service industry, according to the Aberdeen Group.

As this highly skilled workforce approaches retirement age, service managers are now faced with the risk of losing a vast source of knowledge that will be difficult, if not impossible, to replace.

Modern video tools would make it possible for seasoned service technicians to play an active role in the company while also determining their own schedules.That is because these service technicians have not only gone through years of training but have also acquired immeasurable experience on the job – and this is experience that can often only be amassed firsthand and on site with clients.

Modern video tools would make it possible for seasoned service technicians to play an active role in the company while also determining their own schedules. This would ensure that their valuable expertise and know-how is available to a new and novice pool of service technicians.

Moving towards video is relatively simple and cost-effective to apply, and promises increased customer satisfaction, higher revenues, lower costs and overall maximized efficiency. Given video’s integral role in our day-to day activities (YouTube, Skype, Snapchat, Facebook Live and other media), it is surprising that more companies offering field services have not yet integrated video technology into their business models. Surely a tool as ubiquitous as video – connecting people, providing access to endless information and entertainment – is a vital tool for providing more effective service.

Video-connected field service technicians have access to a vast wealth of information, which could help them find answers to complex questions or seek out expert advice from colleagues.

These tools also facilitate communication and collaboration across the entire company, which means field service technicians have access to real-time updates.

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