ENTER2017 eTourism Conference

1. ENTER 2017 Research Track Slide Number 1
The Value of Augmented Reality
from a Business Model perspective
Eleanor Cranmer, M. Claudia tom Dieck and Timothy
Jung
Manchester Metropolitan University, UK
e.cranmer@mmu.ac.uk
www2.mmu.ac.uk/creativear/

2. ENTER 2017 Research Track Slide Number 2
Research Problem
• Increased need for organisations to fight to remain sustainable
and economically viable
• Investment and adoption of modern technologies essential
• Increased need to add interactivity and entertainment to
enhance tourist experience
• ‘Info-cultural-tainment’ experiences
• Need to add value

3. ENTER 2017 Research Track Slide Number 3
Research Problem (cont.)
•Augmented Reality (AR) potential widely recognised, but adoption
slower than anticipated
•Remains underutilised in field of tourism given potential
•Gap identifying AR Business Models (BMs) as tools to explore
added value and realise full potential
•BM innovations have power to spark disruptive change, but do not
guarantee competitive advantage
•Prior to implementation increased need to understand full
potential and value-adding benefits
.

4. ENTER 2017 Research Track Slide Number 4
“A better business model will beat a
better idea or technology”
(Chesbrough, 2007, p. 12)

5. ENTER 2017 Research Track Slide Number 5
Business Models
•Focus on the use of BMs intensified because of the internet boom
and technical advancements
•BMs focus on creating value and capturing returns from that value
•Value Proposition (VP) perspective; value creation and value
capture;
(1)How an organisation creates value for customers
(2)How an organisation and its stakeholders create value for all
parties involved (Al-Debei & Avison, 2010).

6. ENTER 2017 Research Track Slide Number 6
Business Modelling
PrinciplesInnovation
•Connects a firms (innovative) technology to customer needs, and/or
to other firm resources (e.g. technologies)
•Exploit opportunities through creating value for parties involved,
customers' needs and generate a profit
•Creation and capture of value
Sustainability
•Minimise negative impact on society and environment
•Promote social, environmental and economic benefits for both
internal and external stakeholders
•Stakeholder conflicts create challenges, must resolve by creating
mutual benefit delivering values to satisfy short/long term

7. ENTER 2017 Research Track Slide Number 7
Methodology
•Case Study approach: UNESCO
Geevor Tin Mine Museum, Cornwall, UK
•50 semi-structured interviews
March 2015 – February 2016
•Stakeholder analysis groups
9 Internal Stakeholders, 6 Tourist Bodies, 3 Tertiary Groups, 2 Local
Businesses and 30 Visitors
•Thematic analysis

8. ENTER 2017 Research Track Slide Number 8
Geevor AR App
Prototype

9. ENTER 2017 Research Track Slide Number 9
Value of AR:
Visitor Perspective
• Exploration at own pace and leisure
• More memorable experience
• Tailored and personal experiences
• Avoid information overload
• Improve social learning experiences
• More digestible information
• Bring site back to life
• Engage and attract younger audiences
“More fun as well as being factually educational”

10. ENTER 2017 Research Track Slide Number 10
Improved navigation and
exploration
Enhanced and more
complete understanding

11. ENTER 2017 Research Track Slide Number 11
Value of AR:
Visitor Perspective
• AR Self-guided tour
• Improve consistency of experience
• Minimise pre-planning
• Improve site accessibility and translation
• Reduce knowledge gap
• Greater connection

12. ENTER 2017 Research Track Slide Number 12
Value of AR:
Stakeholder Perspective
•Appeal to wider audience
•Improve and modernise profile of site
•Increase marketing presence
•Increase competiveness
•Raise profile of both Geevor and Cornwall

13. ENTER 2017 Research Track Slide Number 13
Improved connection and
relationship between museum
experience and on-site businesses

14. ENTER 2017 Research Track Slide Number 14
Value of AR:
Stakeholder Perspective
•Job security
•Attract funding and investment, improve credibility
•Behavioural change
•Preserve knowledge
•Improve efficiency and effectiveness, time saving
•Improve visitor engagement, increase customer
spending and retention
•Greater connection between museum and onsite
businesses

15. ENTER 2017 Research Track Slide Number 15
Discussion
•Extends existing knowledge, broadening focus
•Demonstrates value creation and capture of AR VP
•Strengthens “business case” for AR adoption
•Progresses one step closer to meaningful
implementation
•Adds to and extends the existing pool of knowledge,
whilst also confirming findings from previous research
•Bridges gap between potential of AR and actual value
adding benefits

16. ENTER 2017 Research Track Slide Number 16
Limitations and Future
Research
•Generalisability of case study research
•Actual implementation required to determine tangible
outcomes
•Recommended future studies are extended to include
other BM elements, such as architecture, network and
finance
•Future research should focus on developing an AR BM
prior to implementation

17. ENTER 2017 Research Track Slide Number 17
References
Bocken, N. M. P., Short, S. W., Rana, P. and Evans, S. (2014) 'A literature and
practice review to develop sustainable business model archetypes.' Journal of cleaner
production, 65 pp. 42-56.
Boons, F. and Lüdeke-Freund, F. (2013) 'Business models for sustainable
innovation: state-of-the-art and steps towards a research agenda.' Journal of Cleaner
Production, 45 pp. 9-19.
Chesbrough, H. (2007). Business model innovation: it's not just about technology
anymore. Strategy & Leadership 35(6): 12-17.
Johnson, M. W. and Suskewicz, J. (2009) 'How to jump-start the clean economy.'
Harvard business review, 87(11) pp. 52-60.
Morioka, S. N., Evans, S. and de Carvalho, M. M. (2016) 'Sustainable Business
Model Innovation: Exploring Evidences in Sustainability Reporting.' Procedia CIRP, 40 pp.
660-668.
Zott, C., Amit, R. and Massa, L. (2010) 'The Business Model: Theoretical roots,
recent developments and future research.' [Online]. [Accessed on 13th January 2015]
http://www.iese.edu/research/pdfs/di-0862-e.pdf