Augmented Reality: The current and potential use of augmented reality in B2B

114 Pages·2015·1.63 MB·English

by  Johannes Rydström

Bachelor Thesis
Augmented Reality

- The current and potential use of augmented
reality in B2B

Authors: Azjargal Gankhuyag
Bingqing Xiang
Victoria Bonnevie
Supervisor: Peter Caesar
Examiner: Pejvak Oghazi
Date: 2015-05-29
Subject: International Sales and
Marketing
Level: Undergraduate level
Course code: 2FE15E
Augmented Reality
- The current and potential use of augmented
reality in B2B

Azjargal Gankhuyag
Bingqing Xiang
&
Victoria Bonnevie

Linnaeus University
Ekonomihögskolan, Department of Marketing
International Sales and Marketing
Spring 2015
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Abstract

In today’s world, we live in a technologically advanced environment where information
access is huge and limitless. The advantage to this is that, people are able to create more
information, share and communicate with each other instantly on the go regardless of
where they are in the world. However on the downside, with endless information, it
becomes confusing and difficult to filter which information is right for a person’s need.
This goes hand-in-hand for business companies, as it requires strategic processes and
tools to identify the information from the market, store and evaluate it into meaningful
insights and lastly communicate it efficiently so that the value of it is not lost along the
way. Therefore this study focuses on how augmented reality (AR) as an emerging
digital technology is able to dissect and communicate information and bring value to
those who are implementing it. What is more interesting in this study is to see the
usefulness and ease of using AR from commercial and non-commercial aspects in B2B
field. This study was conducted through a qualitative research approach with semi-
structured interviews with five companies providing and using AR applications. In
conclusion, AR brings value by transferring data faster and communicating it effectively
through visualization of integrating computer-generated information with the real world
as one. From commercial aspect, companies could use this technology in their
marketing communication to increase customer involvement and perception of the
brand. In contrast, from non-commercial perspective, companies could use AR as an
internal resource to increase efficiency in operation process.

Key words
Augmented reality (AR), Visualization, 3D, Smart devices, Smart glasses, B2B,
Technology acceptance model (TAM), Perceived usefulness, Perceived ease of use,
Marketing, Competitive-advantage, Market vision

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Acknowledgments

This thesis would not be where it is today if it was not for all the people that supported
us with tremendous encouragement and inspiration. With their guidance and input this
experience has been very rewarding and we are more curious and hungry for
knowledge than ever before.

First and foremost, we would like to thank our examiner Dr. Pejvak Oghazi and
supervisor Peter Caesar for guiding us with great help from the very start to the finish
line. In many ways their knowledge and feeback help shape our research process and
tackle all the obstacles along the way.

We would also like to express our gratitude to all the companies that participated and
took part in this study. Without their knowledge contribution and participation we
would not have been able to transform our academic interest into a tangible result.
Hence we are grateful for Christer Lundevall, Guillaume Favreau, Kim Bleshøy
Nielsen, Matthew Trubow, Niklas Rengfors and Staffan Hagberg.

Lastly, we would like to thank our families who have been there for us throughout our
academic years and for always supporting us. Thank you for pushing us like there are
no limits and making us believe in ourselves and strive for the best.

Ljungby, May 2015

Azjargal Gankhuyag, Bingqing Xiang and Victoria Bonnevie
iii
Table of contents
1 Introduction _________________________________________________________ 1
1.1 Background ______________________________________________________ 2
1.2 Problem discussion ________________________________________________ 3
1.3 Purpose _________________________________________________________ 4
1.4 Research Questions _______________________________________________ 4
1.5 Delimitations ____________________________________________________ 4
2 Theoretical Framework _______________________________________________ 6
2.1 Business-to-business _______________________________________________ 6
2.2 Marketing Strategy ________________________________________________ 6
2.3 Integrated Marketing Communication _________________________________ 7
2.4 Customer-perceived value __________________________________________ 7
2.5 Market Vision ____________________________________________________ 8
2.6 Technology and knowledge transfer___________________________________ 8
2.7 Experiential marketing _____________________________________________ 9
2.8 Resource-based view model ________________________________________ 10
2.9 Augmented Reality _______________________________________________ 10
2.9.1 Definition of augmented reality __________________________________ 10
2.9.2 Applications of augmented reality ________________________________ 11
2.10 Technology acceptance model _____________________________________ 11
2.10.1 Unified theory of acceptance and use of technology _________________ 12
3 Methodology ________________________________________________________ 13
3.1 Research approach _______________________________________________ 13
3.1.1 Inductive vs. deductive research approaches _______________________ 13
3.1.2 Quantitative and qualitative research _____________________________ 14
3.2 Research design _________________________________________________ 15
3.2.1 Research strategy ____________________________________________ 16
3.2.2 Research sources _____________________________________________ 17
3.3 Data method ____________________________________________________ 18
3.3.1 Data collection method and instruments ___________________________ 18
3.3.2 Operationalization ____________________________________________ 19
3.3.3 Interview guide ______________________________________________ 21
3.3.4 Sample selection _____________________________________________ 22
3.3.5 Data analysis method _________________________________________ 24
3.4 Quality Criteria __________________________________________________ 25
3.4.1 Content validity ______________________________________________ 26
3.4.2 Construct validity ____________________________________________ 26
3.4.3 External validity _____________________________________________ 26
3.4.4 Reliability __________________________________________________ 27
4 Empirical data ______________________________________________________ 28
4.1 XMReality _____________________________________________________ 28
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4.1.1 Background and AR ___________________________________________ 28
4.1.2 Marketing Strategy ___________________________________________ 28
4.1.3 TAM _______________________________________________________ 29
4.1.4 Challenges and future outlook ___________________________________ 29
4.2 Intertisement ____________________________________________________ 30
4.2.1 Background and AR ___________________________________________ 30
4.2.2 Marketing Strategy ___________________________________________ 30
4.2.3 TAM _______________________________________________________ 32
4.2.4 Challenges and future outlook ___________________________________ 33
4.3 Animech Technologies ____________________________________________ 34
4.3.1 Background and AR ___________________________________________ 34
4.3.2 Marketing Strategy ___________________________________________ 35
4.3.3 TAM _______________________________________________________ 36
4.3.4 Challenges and future outlook ___________________________________ 37
4.4 Hidden Creative _________________________________________________ 37
4.4.1 Background and AR ___________________________________________ 37
4.4.2 Marketing Strategy ___________________________________________ 38
4.4.3 TAM _______________________________________________________ 39
4.4.4 Challenges and future outlook ___________________________________ 40
4.5 Volvo Group ____________________________________________________ 40
4.5.1 Background and AR ___________________________________________ 40
4.5.2 Marketing strategy ____________________________________________ 41
4.5.3 TAM _______________________________________________________ 42
4.5.4 Challenges and future outlook ___________________________________ 44
5 Analysis ____________________________________________________________ 46
5.1 Augmented Reality _______________________________________________ 46
5.2 Marketing Strategy _______________________________________________ 48
5.2.1 Competitive advantage ________________________________________ 49
5.2.2 Market vision ________________________________________________ 50
5.3 TAM __________________________________________________________ 51
5.3.1 Perceived usefulness __________________________________________ 51
5.3.2 Perceived ease of use __________________________________________ 52
5.3.3 Social influence ______________________________________________ 53
5.4 Challenges and future outlook ______________________________________ 54
6 Conclusion _________________________________________________________ 55
6.1 Theoretical Implications ___________________________________________ 57
6.2 Managerial Implications ___________________________________________ 58
6.3 Limitations _____________________________________________________ 60
6.4 Further research _________________________________________________ 61
7 References__________________________________________________________ 62
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8 Appendices _________________________________________________________ 67
8.1 Appedix A: Interview Questions ____________________________________ 67
8.2 Appendix B – Interview Transcripts _________________________________ 68
8.3 Appendix C – List of companies contacted ___________________________ 104

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List of Figures
Figure 1. Conceptual framework of inward technology transfer...................................... 8

Figure 2. Data analysis in qualitative research................................................................25

Figure 3. Checklist: Implementation of AR……………………………………………59

Figure 4. Checklist: Challenges of implementing AR………………………………….60

List of tables

Table 1. Some common contrasts between quantitative and qualitative research .......... 14

Table 2. A comparison of basic research designs............................................................15

Table 3. Relevant situations for different research methods...........................................17

Table 4. Qualitative data collection types, options, advantages and limitations............19

Table 5. The Operationalization of theories and concepts..............................................20

Table 6. Companies participated in the study..................................................................24

Table 7. The participant companies’ perception of AR.................................................. 46

Table 8. The companies’ AR offers and use with tools.................................................. 48

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1 Introduction

There is an explosion of big data, as the digital landscape grows new technologies is
able to generate more data than ever before and it is changing the nature of information
management and how it is communicated (Boyd and Crawford, 2012; McAfee and
Brynjolfsson, 2011). As a result there are two main concerns that challenge business
organizations today, firstly, they have more data than they can use effectively due to its
steady increase in volume and variety (IMB, 2011). Lastly, the traditional and standard
tools such as reporting and spreadsheets are no longer efficient nor capable to support
and communicate the useful information filtered from the data to the right recipients
(Lavalle et al, 2011). Especially, if business executives want to obtain full value and
deliver it both internally within the organization and externally to the customers, they
would have to focus on not just providing the right information but make it “come
alive” (Lavalle et al, 2011). Hence there are emerging approaches or digital applications
that make the information intelligent through visualization and interaction as well as
process simulation and other techniques (McAfee and Brynjolfsson, 2011). These
approaches also transform the insight information into a simple and easily
understandable resource that can be acted upon at every skill level and function in an
organization (Lavalle et al, 2011).

One of these emerging approaches and trending in the market place is Augmented
Reality (AR). The concept of AR refers to information in real-time being enhanced and
made intelligent with the help of smart devices and applications such as smart phones,
tablets, wearable headsets and immersive technologies (Wu et al, 2013). Moreover it
supplements the real world environments with virtual, computer-generated digital
information, allowing a user to experience the interaction between the two worlds
(Azuma, 1997; Azuma et al, 2001). Therefore the ways in which information is made
available, presented and experienced by users are also changing with augmenting the
real world with digital information (Olsson et al, 2012).

AR in the recent years has been integrated in many business areas, such as from
marketing and sales perspective, AR provides visualization of products from clients to
the customers without the limitation of size and location (Hidden Creative, 2011).
Looking particularly from business-to-business (B2B) perspective, such as at trade
shows, it is very hard and almost impossible to bring real-life products as they tend to
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be big in size and costly. Hence visitors and customers normally get brochures and
product catalogues to browse through to gain perception of the value that they are
looking for. However with AR, businesses are able to bring industrial products “come
alive” in 3-dimensions (3D) and in real-time, which enhances the marketing
communication (Hidden Creative). Further, the virtual objects or visualization of
products can display information that a user cannot directly see on a paper or perceive
with the human senses (Azuma, 1997). This human-digital interaction also allows a user
to perform real-world tasks, such as in manufacturing sector, a job that requires a hands-
on approach with specification and instruction requirements could benefit greatly from
AR solutions (Krevelen and Peolman, 2010; ItNow, 2014). Further, with the
combination of ubiquitous computing, smart services becoming available anytime and
almost anywhere, AR enables users to naturally interact in the everyday real world
while allowing users to efficiently utilize both their own skills and the power of
networked computing (Olsson et al, 2012).

1.1 Background

Augmented reality was first tapped by Ivan Sutherland, a computer graphic pioneer, in
the late 1960’s (Krevelen and Peolman, 2010). He and his students at Harvard
University used the first see-through head-mounted display (HMD) system to present
3D graphics (Azuma, 2001). However it wasn’t until the early 1990’s that this
technology was given an official term “augmented reality” coined by two scientists at
Boeing Corporation named Thomas Caudell and David Mizell (Krevelen and Peolman,
2010). The two scientists built an experimental AR system that is see-through display to
guide the workers to assemble long bundles of wires for the new 777 jetliner (MIT
Technology Review, 2014). Since then the potentials of AR was recognized by more
researchers and by the late 1990’s several conferences on AR began, such as the
International Workshop and Symposium on augmented reality (Krevelen and Poelman,
2010).

In 2004, in Germany, a group of researchers brought see-through technology to cell
phones and by 2009 it became possible with ARToolkit to build AR applications with
software toolkits on web browsers freely (Tom’s Hardware, 2014). With the
technological advancement in today’s smart devices and applications, the support
needed to integrate the many years of experimental research and progress in
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