Mixed Reality Intelligence Healthcare Edition

Mixed Reality
Intelligence
Healthcare Edition
December 2020

Background 04
Methodology 05
Who We Talked To – October 2020 06
Things To Know About Mixed Reality 07
Mixed Reality in Healthcare 08
Final Thoughts 21
Detailed Research Objectives & Audience Recruit 22
Table of Contents

Mixed Reality Intelligence: Healthcare Edition
3
© Hypothesis Group 2020. © Microsoft 2020. All rights reserved. 10/20
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and enhance your business, or to connect with a
mixed reality specialist, please visit
https://aka.ms/MixedRealityDesk.
Learn more

4
As companies across the world begin employing immersive technologies to
drive efficiencies, Mixed Reality is poised to change the way businesses
operate. Mixed Reality blends the digital and physical world by overlaying 3D
digital objects onto the user’s physical world, offering a way for users to
interact organically using head-mounted devices (HMDs). Located at the
center of the virtuality continuum, the capabilities of Mixed Reality render it
uniquely positioned to transform the workplace as we know it.
Microsoft has been at the forefront of the immersive technology market and a
trailblazer in Mixed Reality, innovating in both hardware and software to offer
cross-platform Mixed Reality solutions. With the introduction of HoloLens, the
first untethered Mixed Reality headset designed with business use cases in
mind, Microsoft established itself as a leader in the Mixed Reality space and
validated the enterprise value of this nascent industry by partnering with
prominent entities in contracts worth up to half a billion dollars.
In October 2020, Microsoft and Hypothesis embarked on an initiative to hear
from IT and Business Decision Makers across three countries with the goal of
developing a deeper understanding of how Mixed Reality is being utilized
across three key industries: manufacturing, retail, and healthcare. This paper
deep dives into how healthcare organizations are using and considering Mixed
Reality technologies. While the primary data collected are quantitative, this
report also illuminates customer stories that bring said data to life, providing a
comprehensive picture of Mixed Reality use in the market today.
Furthermore, this report also aims to uncover the ways in which Mixed Reality
may evolve in the future.
Background

5
Microsoft commissioned Hypothesis Group, an insights, design, and strategy
agency, to execute the Mixed Reality Intelligence research.
The Mixed Reality Intelligence Research occurred in October 2020, when a
15-minute online survey was conducted with over 700 decision makers
involved in mixed reality decisions at mid-market and enterprise companies
from a range of manufacturing, healthcare, and retail companies across the
US, Germany, and Japan.
In addition, the research deep dives into customer stories from interviews
between Microsoft and mixed reality decision makers at enterprise
companies around the world that use HoloLens 2.
Methodology
Healthcare Customer Stories

6
Who We Talked To
October 2020
75%
99%
Familiar with
Mixed Reality
Self-stated &
Pass a knowledge test
Have influence/
decision making power
on Mixed Reality
strategies
96%
in Mixed Reality
adoption or
evaluation
Final Audience
93%
Use or plan to use
HMDs for Mixed
Reality
BDMs & ITDMs
in Healthcare
who work at mid-market or
enterprise-size companies
(500+ employees)

7
Within healthcare, 3-in-4 organizations are currently using Mixed Reality
solutions via HMDs (though lower than in manufacturing and retail). In the
next 12-24 months, all in healthcare expect to invest as much in the
technology as they do today, or even more. Among those currently using
Mixed Reality or considering it for the future, the technology is critical to
organizational success (99% agreement).
Healthcare organizations are held back from using Mixed Reality by complex
regulatory processes and the extensive use of legacy systems that permeate
the industry, both for current and prospective users. Budget concerns are also
a top inhibitor among prospective users, but once the technology is proven
among current users, the cost is less of a concern.
Mixed Reality is used most in healthcare for Training & Simulation solutions to
prepare and educate healthcare workers, including medical students who
could be potential users over their entire career. Using Mixed Reality for
Remote Assistance and Contextual Data Overlay is not as common, but both
have strong growth potential in the next 12 months.
On average, the majority (about 2-in-3) of healthcare organizations that use
Mixed Reality estimate a return of 40% or more from their investments across
Training & Simulation, Remote Assistance, and Contextual Data Overlay
applications. Customer success stories from Case Western Reserve University,
Imperial College Healthcare, and Medivis demonstrate how HoloLens 2
solutions meet and exceed these industry expectations.
Things To Know About Mixed Reality
1
2
3
4

9
Compared to Manufacturing and Retail, Mixed Reality usage is notably lower in
the Healthcare sector. That said, 3-in-4 Healthcare organizations surveyed are
currently using Mixed Reality solutions, and a majority (60%) have committed to
adoption beyond the trial phase. Most Mixed Reality users in Healthcare find
themselves in relatively early stages of implementation, with 62% of current users
having employed the technology for less than two years. Across the three markets
examined, usage skews akin to manufacturing: German Healthcare organizations
boast the highest number of current users (84%) and Japanese organizations the
least (67%); U.S. organizations align with the overall average (75%). (Exhibit 1)
EXHIBIT 1. CURRENT VS. PROSPECTIVE USERS OF MIXED REALITY
The Big Picture
Current Users
of HMDs
Including those trialing
75%
25%
Prospective Users
Plan to use MR in
the next 12 months
15%
Trialing products
or solutions
60%
Currently using
products or solutions

10
Among Healthcare organizations currently using Mixed Reality, there is widespread agreement
that the technology is crucial to their success. Furthermore, while Mixed Reality is at present less
ubiquitous in Healthcare compared to other industries, organizations are nevertheless confident
that its value will increase over time. This prediction about the future value of Mixed Reality
solutions is reflected in organizations’ investment plans: current users are committed to Mixed
Reality technologies and will continue to invest the same or more in coming years; fewer than
1% plan to invest less than they currently do. Indeed, for Healthcare organizations to continue
their commitment to offering the best healthcare services, their practices must integrate the
most current technological capabilities available. “There are so many ways Mixed Reality will be
used in the future in Healthcare,” explains a current Mixed Reality IT Decision Maker and
healthcare provider. “We will fall behind if we don’t continue to develop our use of this
technology.”
Among current users, Mixed Reality usage in the next 12 months will be highest among
organizations with more than 5,000 employees, with growth among these very large enterprises
projected at nearly 100%. That said, the smallest Healthcare providers surveyed (those with
between 500 and 1,000 employees) anticipate a growth rate almost double that of the medium-
sized enterprises, suggesting that--even for companies with less disposable income--Mixed
Reality solutions are seen as a viable growth strategy to justify the price tag. (Exhibit 2)
1%
37%
62%
Somewhat critical
Very critical
Not that critical/
Not critical at all
2%
33%
66%
Current Value Future Value
+4
EXHIBIT 2. MIXED REALITY CURRENT VS. FUTURE VALUE

11
Both prospective and current users in
Healthcare cite implementation
challenges such as issues with
timing/deployment and software
incompatibilities as top barriers for
using Mixed Reality. Compliance issues
also surface as a salient barrier for users
in Healthcare, an industry with extensive
use of legacy systems and complex
regulatory processes. Logically, the
Healthcare industry is subject to
substantial regulation, and this barrier
likely accounts for the underutilization
of Mixed Reality solutions in this
industry despite its high valuation
among IT and Business Decision Makers.
(Exhibits 3 & 4)
Prospective Mixed Reality users in
Healthcare also cite the imperative to
store data in the cloud as a chief
concern. Cyberattacks on hospitals,
clinics and medical complexes are on
the rise, with hackers threatening to
hold Personal Health Information (PHI)
hostage in exchange for ransom
payments. Because cloud storage comes
with additional security vulnerabilities,
this must be an important consideration
for Healthcare organizations
considering trial and/or adoption of
Mixed Reality, both out of caution for
their patients’ safety as well as their own
liability. Across the three markets,
German Healthcare Mixed Reality users
are the most inhibited by security and
liability concerns. (Exhibits 3 & 4)
Mixed Reality Barriers
Top 5 Barriers For Current Users
Issues with timing and deployment 26%
Too complex to integrate
with legacy systems
25%
Still in the process of implementing current
MR solutions
22%
Too many compliance/
regulatory challenges
22%
Want to work out existing MR challenges 22%
Top 5 Barriers For Prospective Users
with legacy systems
26%
Too many compliance/regulatory
challenges
26%
Incompatible with
existing software solutions
24%
Don’t have enough budget 19%
Concerned about storing data
in a public cloud
18%
EXHIBIT 3. BARRIERS TO USING
MIXED REALITY MORE (TOP 5)
EXHIBIT 4. BARRIERS TO CURRENTLY
USING MIXED REALITY (TOP 5)

12
24%
31%
45%
EXHIBIT 5. USAGE VS. CONSIDERATION OF MIXED REALITY
FOR TRAINING AND SIMULATION
In training new employees and practitioners, Healthcare providers are faced with
a unique challenge: the work itself is hands-on, but any training that takes place
in an authentic environment runs the risk of adversely impacting patient care.
Mixed Reality, consequently, provides an ideal solution for Healthcare
organizations, who can use the technology to create holographic simulations of
medical scenarios to train and educate healthcare workers. Implementing
Training and Simulation through Mixed Reality allows workers to learn how to
examine, diagnose, and treat patients, and practice technical surgical skills in a
low-risk simulated environment that is as close to real-life as possible but devoid
of real-life consequences. Nearly half of Healthcare organizations currently utilize
Mixed Reality for Training and Simulation, and another 31% are currently
considering adoption. (Exhibit 5) Case Western Reserve University in Cleveland,
Ohio is a vanguard of this use case.
Training and Simulation
Deep Dive into

13
The Medical Department at Case Western
Reserve University has identified an
opportunity to teach anatomy more
effectively and provide students with
hands-on training in a low-risk
environment, without putting any patients
at risk. Case Western is using their
HoloAnatomy software on HoloLens 2 to
teach students anatomy in a highly visual
environment where they can practice skills
in interactive, 3D scenarios. While
originally designed to supplement
traditional classroom training, this Mixed
Reality use case has taken on a more
prominent role during the COVID-19
pandemic, allowing medical students to
complete the first-ever remote-only
HoloAnatomy course. With survey data
published by the American Medical
Association indicating that 81% of
students said that HoloAnatomy sessions
were as good as or better than in-person
instruction, Radiology Professor Mark
Griswold of the Case Western Reserve
University School of Medicine argues that
Mixed Reality “ha[s] global implications
for how education is delivered.”
“[With HoloLens 2]
Students are learning at
the same level or better,
they are doing it faster
and they are retaining
knowledge better. That's
dream stuff, as a teacher.”
Mark Griswold
Professor, Department of Radiology
Case Western Reserve University
USING HOLOLENS 2 FOR TRAINING & SIMULATION

14
While a majority of Healthcare organizations have only recently implemented
Mixed Reality for this use case, the results thus far are encouraging: more than
two-thirds of current users estimate an ROI of 40% or higher and an average
improvement of 48% in knowledge retention , the most desirable outcome for
this use case . The potential for Mixed Reality to improve knowledge retention is
exemplified by Case Western, whose medical students using HoloLens 2 and
HoloAnatomy retained 120% more knowledge over the course of a year as
compared to their peers who did not use the technology, and saw a 50%
improvement in grades compared to traditional textbook learning. These
outcomes suggest that the ability to see and interact with 3D images for
anatomy classes helps students not only learn, but deeply internalize the
knowledge. With undeniable success in learning and performance outcomes,
Case Western plans to implement HoloLens teaching solutions across various
other departments.

15
26%
35%
39%
FOR REMOTE ASSISTANCE
The Healthcare industry has leveraged Mixed Reality solutions to connect
practitioners in ways that were previously unimaginable. Mixed Reality for Remote
Assistance allows healthcare workers to stream real, 3D videos of the patients they
are treating to remote colleagues or experts, and allows doctors to share
knowledge and expertise, and deliver care without having to be in the same room-
-or even the same hospital--as the patient. Nearly 2-in-5 Healthcare organizations
currently use Mixed Reality for this use case.
(Exhibit 6)
Imperial College Healthcare has become one of its most visible proponents during
the COVID-19 pandemic of using Remote Assistance. When the COVID-19
pandemic brought an overwhelming volume of highly-contagious patients into
their hospital, Imperial College Healthcare was faced with an unprecedented
challenge to keep its physicians safe while providing healthcare for COVID-19
patients. The hospital decided to adopt Dynamics 365 Remote Assist with
HoloLens 2, which transmits a secure live video feed to a remote location in the
hospital, allowing healthcare teams to see everything a doctor treating a COVID-
19 patient in person can see. By implementing this creative solution, Imperial has
been able to provide the best possible care for an increasing number of COVID-19
patients while reducing its physicians’ exposure to the virus.
Remote Assistance
Deep Dive into

16
“We’re now looking into
other areas where we can
use HoloLens 2 because it is
improving healthcare
without removing the
human; you still have a
doctor next to your bed,
treating you.”
Jim Kinross
Senior Lecturer
Imperial College Healthcare
Approximately two-thirds of current users
estimate an ROI of 40% or higher when using
Mixed Reality for Remote Assistance, and this
optimism is borne out in the Imperial College
Healthcare case: Remote Assist allowed the
hospital to decrease exposure to COVID-19
patients by as much as 83% while
simultaneously ensuring that each patient
received the same quality of care and expertise,
regardless of who was--or wasn’t--in the room.
In addition to the dramatic increase in
employee safety, the implementation of
Remote Assist on HoloLens 2 has driven other
positive outcomes at Imperial. Most notably, it
significantly reduced their consumption of
Personal Protective Equipment (PPE) during a
critical time in which PPE was extremely limited.
USING HOLOLENS 2 FOR REMOTE ASSISTANCE

17
While the pandemic was the impetus for integrating Mixed Reality for Remote
Assistance into Imperial College Healthcare’s protocol, this use case promises to
revolutionize the Healthcare system well beyond the availability of a COVID-19
vaccine. “COVID-19 will change everything forever in terms of the way we work
and how we work,” explains James Kinross, Senior Lecturer at Imperial. “I can see
the point where these sorts of tools will be the norm.” Indeed, Remote
Assistance may well be the solution the Healthcare industry has been looking for
to address other systemic issues, such as the dearth of medical experts in rural
areas of the United States.

18
29%
33%
38%
FOR CONTEXTUAL DATA OVERLAY
Beyond changing the way healthcare providers interact with and treat patients,
Mixed Reality has the potential to transform the way doctors perform surgery.
With Contextual Data Overlay, surgeons can register a virtual overlay of medical
imaging (MR or CT scan) in patients to guide diagnosis or surgical navigation.
They can use hand motions to interact with and manipulate images to visualize
surgical scenarios and make faster, more informed decisions during surgical
operations. Nearly 2-in-5 Healthcare organizations currently use Mixed Reality for
Contextual Data Overlay. (Exhibit 7)
At the forefront of this use case is surgical AR company Medivis, which builds
augmented reality data integration and visualization tools for surgeons. Invasive
operations are fraught with preventable mistakes, as reliance on 2D imaging (CT,
MRI) for surgical procedures leaves the door open to potential error. Medivis had
been searching for a superior visualization technology to improve surgical
accuracy when they decided to partner with Microsoft to develop a Mixed Reality
surgical planning product, SurgicalAR for HoloLens 2. This custom Contextual Data
Overlay is designed to empower surgeons and clinicians to maximize surgical
accuracy and deliver better, safer patient outcomes.
Contextual Data Overlay
Deep Dive into

19
Increasing patient safety and improving
operational precision are both top of mind for
Healthcare organizations implementing Mixed
Reality for Contextual Data Overlay, and
Medivis’s Surgical AR software on HoloLens 2
brings both of these outcomes into focus.
With the ability to overlay high fidelity, 3D
images of complex pathology directly onto
the patient, surgeons are able to make more
informed decisions before and during surgery,
consequently improving accuracy; for
instance, Medivis has placed catheters with
millimeter accuracy in a fraction of the time.
Moreover, Contextual Data Overlay has
increased patient safety by reducing exposure
to radiation: at least 200 operations have
been performed using HoloLens 2.
”It excites us when we can
do these routine procedures
in an inherently superior
way, so we can get our
patients out of the
operating room and safely
back to their families.”
Chris Morley
Radiologist
Medivis
USING HOLOLENS 2 FOR CONTEXTUAL DATA OVERLAY

20
With over two-thirds of current users estimating an ROI of 40% or higher for this
Mixed Reality use case, Contextual Data Overlay is the surgical solution of the
future. As Medivis Radiologist Chris Morely explains, “Holographically overlaying
patient data at the point of care can reduce procedure times, complication rates,
and radiation exposure.” Yet, while the benefits of employing Contextual Data
Overlay are tangible, almost one-third of Healthcare organizations surveyed are
neither current nor prospective users of the use case; this number is particularly
high among Japanese companies, who are 14% less likely to be current users than
the group as a whole (24% vs. 38%, respectively). Ultimately, despite the clear
advantages offered by Mixed Reality for Contextual Data Overlay, regulatory
barriers may render it one of the slower technologies to be trialed and adopted.
USING HOLOLENS 2 FOR CONTEXTUAL DATA OVERLAY

21
As immersive technologies continue to transform reality as we know it, Mixed
Reality has emerged not as a VR-light but as a business tool in its own right.
With its unique ability to blend the real and the digital, Mixed Reality offers
solutions that are as diverse as they are innovative, boasting use cases ranging
from training healthcare workers to improving surgical precision. Ideas that felt
like science fiction just a decade ago are now quite literally at our fingertips, and
bold companies must think creatively about how they can use Mixed Reality to
differentiate themselves in an increasingly competitive digital marketplace.
Across markets and industries, the benefits of implementing Mixed Reality
technologies are vast, and three major themes emerge. First, by integrating
digital elements into real spaces, Mixed Reality reduces the constraints imposed
by toggling between our physical environments and our screens. Second, Mixed
Reality solutions offer distinctive advantages for education--be it corporate or
academic--by allowing students and trainees to develop hands-on experience
performing tasks that could be detrimental or costly if executed by novices in a
real-world context. Finally, Mixed Reality allows us to do something that was
previously unthinkable: be two places at once. Infinitely more sophisticated than
video calling, Mixed Reality technologies can transport individuals who are miles
apart into the same digital space, allowing them to interact with their
surroundings and with one another as if the space between them had all but
vanished. Particularly in the context of a global pandemic, this ability to emulate
togetherness feels indispensable.
Final Thoughts

The objectives of the research included:
1. Understand the current Mixed Reality landscape including adoption, challenges, and outcomes
2. Explore current Mixed Reality projects, including how Mixed Reality is
being used within key industries and customer stories
3. Quantify ROI expectations of decision-makers and demonstrate how
ROI is realized through customer stories
4. Uncover the ways in which Mixed Reality may evolve in the future
To meet the screening criteria, Mixed Reality professionals needed to be:
A business decision maker or IT decision maker at their company
Employed full-time at a mid-market or enterprise-level company (500 employees or more)
Ages 25-64
Familiar with Mixed Reality
Involved in decision making for Mixed Reality technologies
Adopting or evaluating Mixed Reality technologies
Work in Manufacturing, Healthcare, or Retail industries
Of the 251 healthcare Mixed Reality professionals interviewed
for the research wave in October 2020:
100 Mixed Reality Professionals were interviewed in the US
76 Mixed Reality Professionals were interviewed in Germany
75 Mixed Reality Professionals were interviewed in Japan
Detailed Research Objectives
& Audience Recruit
Note: Research was conducted during the global COVID-19 pandemic,
which was at varying stages of escalation/containment

The Next Step….
Contact: Ralph Zerbonia
a Microsoft Mixed Reality Partner
For further information on the Hololens 2, or mixed
reality or to purchase a Hololens 2 contact me at
ralph@universe.org
™
The more things change, the more things
change. Don’t be left behind, serious business
is already in the adoption phase of the
Metaverse, Blockchain and Biometrics. Get
your Company on track today.

Mixed Reality
Intelligence
Manufacturing Edition
December 2020

Background 04
Methodology 05
Mixed Reality in Manufacturing 08
Final Thoughts 21
Table of Contents

Learn More

Mixed Reality Intelligence: Manufacturing Edition
4
deep dives into how manufacturing organizations are using and considering
Mixed Reality technologies. While the primary data collected are quantitative,
this report also illuminates customer stories that bring said data to life,
providing a comprehensive picture of Mixed Reality use in the market today.
Background

5
Methodology
Manufacturing Customer Stories

6
Who We Talked To
October 2020 BDMs & ITDMs
in Manufacturing
(500+ employees)
62%
95%
Familiar with
Mixed Reality
Self-stated &
Have influence/
on Mixed Reality
strategies
84%
in Mixed Reality
adoption or
evaluation
Final Audience
87%
Use or plan to use
HMDs for Mixed
Reality

7
The majority of manufacturing organizations are currently using Mixed
Reality solutions via HMDs and usage is projected to grow in the next
12-24 months. Mixed Reality is seen as a critical asset to organizations
(97% agreement) among those who are currently using it or considering
it for the near future.
Implementation issues like integration and deployment prevent current
users  from adding new solutions to their portfolios. For prospective
users who are in the consideration stage, budget, timing, and lack of
knowledge are the largest  barriers to adoption.   
Manufacturing organizations are currently utilizing Mixed Reality most
for Task Guides & Task Management solutions, with Design &
Prototyping trailing closely. Usage of Mixed Reality for Remote
Assistance is lowest but projected to grow in the next year.
Over half of all manufacturing organizations expect a return of 30% or
more on average from their investment in Mixed Reality across Task
Guides & Task Management, Design & Prototyping, and Remote
Assistance solutions. Customer success stories from Lockheed Martin,
Airbus, and L'Oréal demonstrate how HoloLens 2 solutions meet and
exceed these industry expectations.
1
2
3
4

Mixed Reality in
Manufacturing

9
Given the nascency of Mixed Reality, Manufacturing organizations find themselves
in various stages of implementation. Among those surveyed, north of 80% are
currently using Mixed Reality products and solutions in some capacity, with more
than half reporting that these technologies have already been integrated into
their business models; among current users, only 1-in-4 remain in the trial stage.
That said, even those in the former group are relatively new to Mixed Reality: 2-
in-3 have been using the technology for less than two years. Of the countries
examined, Mixed Reality usage is highest in Germany, where current users
comprise 91% of organizations surveyed. This number is lowest in Japan, where
only 72% of organizations fall into this category, and is equivalent to the overall
mean (81%) in the United States. (Exhibit 1)
The Big Picture
Current Users
of HMDs
81%
19%
Prospective Users
Plan to use MR in
the next 12 months
26%
Trialing products
or solutions
56%
Currently using

10
Across the board, current users agree that this emerging technology is critical to
their success. Crucially, Mixed Reality is seen as a solution for both today and
tomorrow: users are nine points more likely to describe the technology as very
critical when assessing its future value as compared to the present. As a result, the
majority of current users (65%) plan to increase their investment in Mixed Reality
in the future, while the remainder expect to invest the same as they currently do;
none of the organizations surveyed plan to invest less. (Exhibit 2)
With users committed to their investments and optimistic about the future,
adoption and trial of Mixed Reality is expected to increase. “We are already seeing
some improvements in productivity and we expect that will increase as we develop
new processes,” predicts an IT Decision Maker in discrete manufacturing. “This
should be a net win for us.” Looking toward the future, growth in HMD volume
appears to be greatest among very large enterprises, who likely have more funds
to invest in headsets. While companies of all sizes anticipate increasing the
number of Mixed Reality HMDs utilized by more than 50% in the next 12 months,
the largest organizations—that is, those with at least 5,000 employees—expect to
more than double their HMD volume during the same time frame.
1%
39%
60%
Somewhat critical
Very critical
Not that critical/
Not critical at all
2%
29%
69%
+9

11
Within Manufacturing, prospective and current
Mixed Reality users cite distinct barriers to using
the technology or using it more, respectively.
For current users, implementation challenges
are top of mind; the difficulty of integrating
Mixed Reality with legacy systems and issues
with timing and deployment are two of the
most salient barriers for this group. Prospective
users, on the other hand, identify budgetary and
time constraints as their primary challenges.
(Exhibits 3 & 4)
While the principal concerns of these two
groups are quite distinct, similarities among
other top barriers reveal that both current and
prospective users would benefit from additional
education and training on Mixed Reality.
Participants cite a lack of knowledge about the
technology as a top challenge, and additional
barriers suggest that uncertainty around the
implementation of Mixed Reality are also salient
roadblocks for both groups. Knowledge and
training barriers are particularly high among
Japanese organizations, offering a possible
explanation for their lower adoption rates as
compared to Germany and the United States.
Furthermore, while German organizations likely
face fewer barriers given their proclivity for
Mixed Reality products and services, it should be
noted that German users stand out in that they
are most inhibited by security and liability
concerns, neither of which surface as top
barriers when data from the three countries are
examined in tandem. (Exhibits 3 & 4)
with legacy systems
28%
Still in the process of implementing
current MR solutions
24%
Isn't a solution that meets our needs 21%
Don't know enough 20%
Don't have the budget 31%
Takes too long to implement 29%
Don’t know enough 27%
Don't have enough deployment training 27%
Unsure about scalability in organization 27%

12
18%
34%
48%
FOR TASK GUIDES & TASK MANAGEMENT
Task Guides and Task Management represent a primary use case for Mixed
Reality in Manufacturing, as headsets are able to virtually display critical
resources like detailed guidelines, safety information, and lengthy
documentation that an employee needs to complete complex manufacturing
tasks. Nearly half of all manufacturing organizations currently use Mixed Reality
for Task Guides and Task Management. (Exhibit 5)
Lockheed Martin is a company on the cutting edge of this trend. Lockheed
Martin is utilizing HoloLens 2 for Task Guides and Task Management to build the
Orion Spacecraft, the only spacecraft that can take humans into deep space.
NASA contracted Lockheed Martin to oversee the manufacture and assembly of
the spacecraft, which required finding workarounds to paper instructions or
tablet screens that are cumbersome and prone to human error. Thus, Lockheed
Martin is using HoloLens 2 to allow workers to collaborate remotely and help
produce higher quality spacecrafts at lower costs, in less time. Voice commands
guide workers through every step, with holographic instructions overlaid on
relevant parts during assembly.
Task Guides and Task Management
Deep Dive into

13
Given the formidable challenge of balancing
cost, production time, and quality when the
stakes could—quite literally—be life or death,
HoloLens 2 has allowed Lockheed Martin to
elevate and prioritize all three of these factors
simultaneously. While most organizations
reduce human error by approximately 30% by
using Mixed Reality for Task Guides and Task
Management, Lockheed Martin has found
even greater success in this endeavor: since
first implementing HoloLens 2 in 2017, the
company has experienced zero human errors
or rework requests. This improvement is quite
exceptional; building a spacecraft requires
millions of tasks—each with zero room for
error—and Microsoft’s HoloLens 2 has
allowed Lockheed Martin to bring this
expectation to fruition.
”The fact that we
haven’t had any
errors across all of
these activities is
phenomenal.”
Shelley Peterson
Principal Investigator for
Augmented & Mixed Reality
Lockheed Martin
USING HOLOLENS 2 FOR TASK GUIDES & TASK MANAGEMENT

14
Beyond this vast improvement in quality, Lockheed’s integration of Mixed Reality
for Task Guides and Task Management has had far-reaching implications for
their bottom line. With respect to cost, Lockheed is now saving $38 per fastener-
-and this is no small savings when a single Orion spacecraft has over 57,000 of
them. Vis à vis production time, HoloLens 2 has reduced touch labor by 90%;
what was previously an 8-hour shift can now be completed in 45 minutes. While
the majority of organizations prioritize increasing employee performance and
reducing human error over accelerating task completion, Lockheed
demonstrates that these outcomes are not mutually exclusive and in fact, can go
hand in hand.
Of the organizations not currently using Mixed Reality for Task Guides and Task
Management, a majority (65%) are considering implementing it in the future. As
success stories like Lockheed Martin’s continue to proliferate, adoption of Mixed
Reality is poised to continue growing. That said, the research identified some
international asymmetries: Japanese organizations are less likely to use Mixed
Reality for Task Guides and Task Management (34% vs. 48% overall), reflecting
the country’s lower adoption rates more generally. Because knowledge and
training barriers are particularly high in Japan, it is likely that increased education
around the ROI of Mixed Reality for Task Guides and Task Management could
increase interest in this market.
LOCKHEED MARTIN’S ORION SPACECRAFT

15
Deep Dive into
Like Task Guides and Task Management, Design and Prototyping represents a
key Mixed Reality use case within Manufacturing. In Mixed Reality, 2D design
modeling files are converted to high quality 3D digital replications that
employees can interact and interfere with via motion control. This allows teams
to quickly iterate and collaborate on new product designs and assess whether
their designs are fit for industrialization. Similar to Task Guides and Task
Management, almost half of all manufacturing organizations currently use Mixed
Reality for Design and Prototyping. (Exhibit 6)
Airbus is a company leading the way here by leveraging HoloLens 2 for Design
and Prototyping solutions to meet their ambitious production goals. Airbus built
10,000 aircrafts in its first 40 years and aims to build 20,000 more in the next 20.
To do this, the company needs to deploy cutting-edge tools and technologies to
accelerate production and find new ways of working. Airbus is using Microsoft
Azure Mixed Reality and services like Azure Spatial Anchors and Azure Remote
Rendering with HoloLens 2 to expedite aircraft design, and manufacture,
facilitate collaboration, and change how complex ideas are communicated.
23%
32%
45%
FOR DESIGN & PROTOTYPING
Design and Prototyping

16
Like Lockheed Martin, Airbus was among the
first major manufacturing organizations to
identify the potential for Mixed Reality to
increase production speed while simultaneously
prioritizing quality and safety, and has been
partnering with Microsoft on this front since
2015. Jean-Brice Dumont, Executive Vice
President of Engineering at Airbus, explains that
“[Airbus’s] challenge in the coming years is to
manufacture more aircrafts faster, and for that
we need to enable our workers to be much
better equipped and to be much more effective
in what they do.” Microsoft Mixed Reality
technology, he believes, is the solution that
meets the moment.
“Mixed Reality can help us
to increase quality, safety,
and security. The level of
human error is significantly
reduced, and in aerospace,
increased quality is
increased safety – and
needless to say, security
goes with that.”
Jean-Brice Dumont
Executive Vice President of Engineering
Airbus Defense and Space
USING HOLOLENS 2 FOR DESIGN & PROTOTYPING

17
Among organizations currently using Mixed Reality for Design and Prototyping,
more than 3-in-5 report an ROI of 30%+. For Airbus, these returns have been
particularly salient: with HoloLens 2 solutions helping Airbus designers virtually
test their designs to see if they are ready for manufacture, the company has seen
the process accelerate by 80%. Beyond these already-measurable improvements,
Airbus expects to increase efficiencies of complex tasks during assembly by 30%
while simultaneously increasing quality, safety and security. They have already
identified more than 300 use cases for Mixed Reality in an effort to utilize this
technology to its full capacity.
Of the organizations not currently using Mixed Reality for Design and
Prototyping, slightly more than half (58%) are considering implementing it in the
future. In considering whether to implement Mixed Reality for Design and
Prototyping, organizations are primarily concerned with accelerating project
innovation and design validation. As success stories like Airbus’s continue to
circulate throughout the industry, the potential for Mixed Reality to support
these ROI expectations will become increasingly clear.
AIRBUS FLEET

18
Deep Dive into
Beyond facilitating and streamlining on-site tasks, the Manufacturing industry
has begun employing Mixed Reality to allow employees to be two places at
once. Remote Assistance implemented via Mixed Reality connects remote
employees to collaborate with each other by streaming real time, 3D videos of
what they are working on. Experts anywhere in the world can conduct routine
inspections and audits, deploy new equipment, or assist first line workers in new
and critical tasks as needed, without having to physically travel to sites. Remote
Assistance remains the least prevalent use case of Mixed Reality examined here;
still, 3-in-4 organizations surveyed are either current or prospective users.
(Exhibit 7)
In a prime illustration of this capability, L'Oréal is tapping into Dynamics 365
Remote Assist via HoloLens 2 to connect remote experts to field technicians from
various locations. When a part breaks down on a machine, new equipment must
be installed or an audit must be carried out; however, it is not always easy to
explain the process simply by phone, and bringing experts on site requires time
and resources. L'Oréal is now able to benefit from the expertise of those who are
not on site to carry out these operations in an efficient, cost-effective way.
25%
37%
38%
FOR REMOTE ASSISTANCE
Remote Assistance

19
It is unsurprising that L'Oréal is leading
the march for this under-utilized Mixed
Reality application: the company has
been quick to embrace immersive
technologies as a bridge to the future
and has been investing heavily in them
since 2012. As with other Mixed Reality
use cases, Remote Assistance is proving
to be a worthy investment.
Manufacturing organizations that
currently use Mixed Reality for Remote
Assistance estimate an average
improvement of 31% in accelerating
issue diagnosis and resolution, and
L'Oréal boasts even greater success at
50% improvement in this respect.
”Thanks to this solution,
we optimize inter-site
communication, we
share best practices
more easily, and above
all we benefit from the
expertise of the best.”
Guillaume Duverger
Manufacturing Excellence Project Engineer
L'Oréal

20
For L'Oréal, time is everything, and the ability of Remote Assistance to transmit
knowledge through space and time with the same precision as on-site
assistance has proven to be an incredible asset. “Saving time at L'Oréal is very
important,” explains Christian Georges, Manufacturing Excellence Director at
L'Oréal. “We can now easily debug a situation and bring more comfort to our
employees.” The attested capability of Remote Assistance to both expedite
inspections/audits and accelerate issue diagnosis/resolution is key, as these
benefits represent the two most desirable outcomes according to
organizations surveyed.
Furthermore, Remote Assistance has benefits that extend beyond time savings
and convenience. Less travel means less employee fatigue and reduced CO2
emissions, and inter-site communication can be optimized to share best
practices more easily and connect to the best experts. L'Oréal has also seen
improvements in employee performance and morale, as well as their ability to
meet production deadlines.
While Remote Assistance is the most under-utilized application of Mixed
Reality of the three examined in this report, differences across the three
national markets suggest that the lower utilization numbers may be driven, in
part, by Japanese organizations. That is, Japanese manufacturers are less likely
than the group as a whole to currently use Mixed Reality for Remote
Assistance (28% vs. 38% overall).
MICROSOFT MIXED REALITY AT L’ORÉAL

21
from connecting remote experts with onsite technicians to enhanced assembly
procedures. Ideas that felt like science fiction just a decade ago are now quite
literally at our fingertips, and bold companies must think creatively about how
they can use Mixed Reality to differentiate themselves in an increasingly
competitive digital marketplace.
Final Thoughts

Ages 25-64
Of the 241 manufacturing Mixed Reality professionals interviewed
& Audience Recruit

Mixed Reality
Intelligence
Retail Edition
December 2020

Background 04
Methodology 05
Mixed Reality in Retail 08
Final Thoughts 21
Table of Contents

Mixed Reality Intelligence: Retail Edition
3
Learn more

4
deep dives into how retail organizations are using and considering Mixed
Reality technologies. While the primary data collected are quantitative, this
report also illuminates customer stories that bring said data to life, providing a
comprehensive picture of Mixed Reality use in the market today.
Background

5
Methodology
Retail Customer Stories

6
Who We Talked To
October 2020
75%
99%
Familiar with
Mixed Reality
Self-stated &
Have influence/
on Mixed Reality
strategies
96%
in Mixed Reality
adoption or
evaluation
Final Audience
92%
Use or plan to use
HMDs for Mixed
Reality
BDMs & ITDMs
in Retail
(500+ employees)

7
Today, most retail organizations we spoke with are currently using
Mixed Reality solutions via HMDs, and in the next 12-24 months usage
is expected to increase even more. Mixed Reality is universally seen as a
critical asset to retail organizations (100% agreement) among those
who are currently using it or considering it for the near future.
Retail current and prospective users alike are hesitant about storing
more data in the cloud, likely due to sensitive information they collect
and store on their customers (payment info, billing address, etc.)
Current users are also held back due to compatibility and
implementation issues, while prospective users are inhibited by a lack
of deployment training and budget worries.
Top applications of Mixed Reality within retail include Training &
Simulation and Design, Prototyping, & Layout Optimization. Mixed
Reality is not as commonly used for Sales Assistance today, as around
one-in-three aren't considering this application at all.
The majority (over 3-in-5) of retail organizations that use Mixed Reality
estimate improvements of 15% or more from their investment across
Training & Simulation, Design, Prototyping & Layout Optimization, and
Sales Assistance solutions. Customer success stories from Walgreens,
Küchen Quelle, and Salvatore Ferragamo demonstrate how Mixed
Reality solutions meet and exceed these industry expectations.
1
2
3
4

9
Across the three industries surveyed, Retail boasts the highest number of
companies currently using Mixed Reality overall (58%). Akin to Manufacturing, the
vast majority (81%) of Retail organizations surveyed are current users of Mixed
Reality technology, but slightly more are current adopters of HMDs (58% Retail vs.
56% Manufacturing). Nevertheless, implementation is growing: more than 2-in-3
Retail organizations have been using Mixed Reality for less than two years. Mixed
Reality usage in Retail is comparable across markets, with current users
comprising approximately 80% of those surveyed in the United States, Germany,
and Japan. (Exhibit 1)
The Big Picture
Current Users
of HMDs
81%
19%
Prospective Users
Plan to use MR in
the next 12 months
23%
Trialing products
or solutions
58%
Currently using

10
Retail organizations universally agree that Mixed Reality is paramount in their
success. Moreover, retailers expect the preeminence of Mixed Reality to endure,
rating its future value almost identical to its current value. (Exhibit 2) With 98%
of organizations confident that Mixed Reality solutions will remain indispensable
in the future, it is unsurprising that they unanimously plan to invest either the
same (42%) or more (58%) in coming years. As one Mixed Reality IT Decision
Maker put it, “Mixed Reality is vital for an innovative, profitable, and productive
work environment.”
Growth in HMD volume is poised to be highest among large enterprises.
However, medium-sized companies are not far behind: organizations with
between 1,000 and 5,000 employees anticipate that the volume of HMDs will
grow approximately 119% over the next 12 months. This finding reflects the
ubiquity of Mixed Reality in Retail and the emergence of vCommerce, a trend
that exemplifies the versatility of Mixed Reality solutions in improving employee
and customer experiences alike.
0%
30%
70%
Somewhat critical
Very critical
Not that critical/
Not critical at all
2%
28%
70%

11
When it comes to using Mixed Reality,
implementation issues represent
important barriers for both prospective
and current users. Most salient are
compatibility concerns, with at least 1-
in-4 organizations from each group
reporting that Mixed Reality solutions
are incompatible with existing software.
Retailers are also concerned about data
security: 23% and 26% of current and
prospective users respectively cite
concerns with storing more data in the
cloud as a top barrier. Retail is reliant
on customer relationships, and trust is
a key ingredient when retailers are
collecting and storing sensitive data
such as payment information and
billing addresses.
Beyond implementation and data
security, current and prospective users
diverge in other top barriers. While
current users are impeded by the
desire to work out existing Mixed
Reality solutions before adopting
additional ones, prospective users cite
educational and budgetary concerns as
key roadblocks. When comparing
barriers across markets, budgetary
limitations are particularly salient
among Japanese and German Mixed
Reality users. (Exhibits 3 & 4)
Incompatible with
25%
Still in the process of
implementing current MR solutions
24%
Want to work out existing MR challenges 23%
Concerned about storing
more data in a public cloud
23%
Don't have enough deployment training 32%
Incompatible with
30%
Concerned about storing
data in a public cloud
26%
Too many compliance/
regulatory challenges
23%
Don’t have the budget 23%

12
25%
32%
43%
FOR TRAINING & SIMULATION
Customer-facing industries like Retail require employees to be able to
competently perform key tasks as soon as they step onto the floor, yet
traditional training mechanisms have struggled to replicate this hands-on
experience. Faced with this challenge, retailers have begun employing Mixed
Reality to provide hands-on education and training for employees. In this use
case, holographic simulations of real-life scenarios are created to educate and
train employees at all levels, including sales personnel, on routine and critical
tasks. Almost half of Retail organizations surveyed currently use Mixed Reality
for Training and Simulation, and another third are prospective users. (Exhibit 5)
The drugstore giant Walgreens is at the forefront of this trend. In early 2020,
Walgreens was looking for fast and effective ways to train its employees to
handle over 2,500 novel food items at its newly-imagined Kroger Express section
in Walgreens stores. With new products and an unfamiliar store layout,
employees needed to be trained on multiple fronts, from assisting customers to
quality-checking grocery items. Walgreens partnered with Microsoft to utilize
HoloLens 2 to create 3D models of the reconfigured stores and play-out various
scenarios to train employees on various scenarios, such as restocking products,
coupon redemption, and unfamiliar customer service situations.
Training and Simulation
Deep Dive into

13
Among retailers currently using Mixed Reality
for Training and Simulation, 3-in-5 estimate an
ROI of at least 15% and, more specifically, report
an average 16% reduction in training time.
Walgreens in particular has also been able to cut
back on travel costs as employees receive the
full curriculum of the training at their locations,
using the simulated environments on HoloLens
2. Beyond time and money savings, Walgreens
employees that receive their training on
HoloLens 2 are able to complete new tasks with
increased accuracy and eliminate potential
mistakes. This improvement is key, as Retail
organizations rank the reduction of human error
as the most desirable outcome of implementing
Mixed Reality for Training and Simulation.
”We feel that this very
immersive, interactive
technology helps team
members grasp new
ways of learning
beyond what I’ll call the
paper exercise.”
Steven Lamontagne
Vice President of Physical Design and Formats
Walgreens Boots Alliance

14
Furthermore, HoloLens 2 has offered Walgreens a solution for an issue unique to
the rollout of their Kroger Express stores: how to train employees to navigate a
space that doesn’t yet exist. With the Training and Simulation app on HoloLens
2, Walgreens employees can learn how to navigate the new store experience
before the physical transformation happens. “HoloLens 2 gives our team
members the ability to experience what the store will look and feel like before
it’s even converted, using a 3-D model built at Walgreens,” explains Lamontagne.
“This gives them more time to get excited, learn and feel confident about some
of the brand new elements--what good looks like when dealing with a package
of fresh meat, for example.”

15
23%
35%
42%
FOR DESIGN, PROTOTYPING & LAYOUT OPTIMIZATION
The Retail industry has identified a key use case for Mixed Reality in Design,
Prototyping, and Layout Optimization. Bringing designs to life, Mixed Reality
technologies allow teams to engage with product iterations and layout placement
by converting computer aided 2D design modeling files to high quality 3D digital
replications. More than 2-in-5 Retail organizations are currently using Mixed
Reality for Design, Prototyping, and Layout Optimization, with almost as many
considering doing so in the future. (Exhibit 6)
German home construction company Küchen Quelle has pioneered this use case,
showing how Mixed Reality can create revolutionary new visions for interior design.
To increase its market share and stay relevant, the company searched for new and
innovative ways to collaborate with their customers more intimately and effectively.
Thus, they adopted the rooms solution built on HoloLens 2, which allows sales
consultants and architects to build out interior spaces to customers’ specific needs
and collaborate in this immersive world, before making purchase decisions. Using
Mixed Reality technologies, Küchen Quelle turned what was previously a high-
stakes and stressful endeavor into an experience that is enjoyable and instills
confidence in customers as they move through the buying process.
Design, Prototyping, and Layout Optimization
Deep Dive into

16
”We wanted a cutting-edge
tool to make our design
and sales processes more
efficient and effective. We
also wanted to make the
process of planning and
buying a new built-in
kitchen a fun, even joyful,
experience for our clients”
Andreas Rode
CEO
Küchen Quelle
Küchen Quelle’s success story is no
anomaly: more than two-thirds of
retailers currently using Mixed Reality
for Design, Prototyping, and Layout
Optimization have increased an
average of 16% since implementing
Mixed Reality solutions for this use
case. According to Andreas Rode,
Mixed Reality solutions have the
potential to push Küchen Quelle over
the 50% customer conversion rate,
boosting this metric from 40% to 55-
60% on average. By collaborating with
customers on custom designs and
product iterations, sales consultants
are able to help customers gain
confidence in the products and
ultimately make a purchase.
USING HOLOLENS 2 FOR DESIGN, PROTOTYPING & LAYOUT OPTIMIZATION

17
Beyond converting more customers to buyers,
Küchen Quelle also expects this revolutionary buying
process facilitated by HoloLens 2 to increase its
average sales price by 20%, paving the way for
increased market share in Germany and a potential
expansion into Austria. Küchen Quelle’s success in
implementing Mixed Reality for Design, Prototyping,
and Layout Optimization bodes well for the rest of
the Retail industry, which ranks accelerated sales
cycles and increased customer satisfaction as the two
most desirable outcomes for this use case.
USING HOLOLENS 2 FOR DESIGN, PROTOTYPING & LAYOUT OPTIMIZATION

18
30%
32%
38%
FOR SALES ASSISTANCE
As members of an industry whose success is defined in large part by customer
perceptions, Retail organizations have been implementing Mixed Reality
solutions in an effort to simplify and improve the shopping experience. Similar to
Design, Prototyping, and Layout Optimization, Mixed Reality Sales Assistance
allows customers to demo any product configuration or customization in 3D to
support purchase decisions, leading to better collaboration between the end
customer and the sales consultant. Nearly 2-in-5 Retail organizations are
currently using Mixed Reality for Sales Assistance. (Exhibit 7)
Italian luxury goods brand Salvatore Ferragamo is leading the charge by tapping
into HoloLens 2 to introduce an interactive, guided, and custom shopping
experience. With excellent customer service at the core of its values, Ferragamo
adopted HoloLens 2 with a custom solution from Hevolus to introduce an
immersive customization and sales assistance platform for the Tramezza men’s
footwear collection, which can be used both in-store and online. The service
allows customers to choose from various materials and customize to their
preferences, all while visualizing the digital twin of the shoes on their screen and
interacting with this 3D reproduction. For clients shopping online, Ferragamo’s
Made-to-Order Tramezza program allows human sales associates to join the
client in their virtual shopping session to provide choice and sales support akin
to that expected in brick-and-mortar stores.
Sales Assistance
Deep Dive into

19
In implementing Mixed Reality for Sales Assistance,
the top priority reported among Retail organizations
is increasing sales. Indeed, after only a few short
months, Ferragamo is already seeing improvements
in sales conversion. Ferragamo CEO Divelec Lemmi
explains, however, that the outcomes of integrating
Sales Assistance via HoloLens 2 are much more far-
reaching: “The Tramezza - Future Of Craft project is
part of our digital transformation journey aimed at
constantly innovating the services to our customers,
and it’s already offering significant benefits in various
areas: from the optimization of customer journey in
an omnichannel perspective to better space
management in physical stores, from the
simplification of purchase methods to better
customer service, up to a rise in conversion rates.”
The new Ferragamo experience is also expected to
improve customer loyalty and help the brand stay
relevant as the high-end fashion industry becomes
more fragmented and increasingly digital.
”Thanks to the
collaboration with
Microsoft and Hevolus,
we will be able to assist
our customers even
more effectively,
offering highly
immersive and tailor-
made experiences.”
Micaela le Divelec Lemmi
CEO
Salvatore Ferragamo
USING HOLOLENS 2 FOR SALES ASSISTANCE

20
While Italian Ferragamo is an obvious
leader in integrating Mixed Reality
solutions for Sales Assistance, U.S.
retailers have embraced this use case
most fervently, and are more likely than
their Japanese or German counterparts
to be current users (46% vs. 38%
overall). Of those organizations not yet
utilizing Mixed Reality for Sales
Assistance, a little more than half (52%)
identify as prospective users, signaling
that this use case will continue to
propagate as its benefits become
increasingly clear.
USING HOLOLENS 2 FOR SALES ASSISTANCE

21
from supporting customers in their purchase decisions to enhanced product and
layout configurations. Ideas that felt like science fiction just a decade ago are
now quite literally at our fingertips, and bold companies must think creatively
about how they can use Mixed Reality to differentiate themselves in an
increasingly competitive digital marketplace.
Final Thoughts

Ages 25-64
Of the 244 retail Mixed Reality professionals interviewed
& Audience Recruit

3/17/2021 The Experience Of 2020 Will Initiate Long-Awaited Growth In Enterprise Augmented, Mixed, And Virtual Reality - ForresterNow
https://www.forrester.com/fn/177IAFsDQxfS9QhZCupkQ0 1/3
At A Glance
The experience of 2020 — in which numerous organizations turned to augmented and mixed reality out of necessity — nally sets the
stage for broader acceptance and growth for these technologies in the future.
Virtual reality and virtual worlds help improve training e orts, increase employees’ empathy, and connect employees to one another in
rich, barely tapped ways.
Augmented And Mixed Reality Fill The Role Of Zoom For Frontline Workers And Their
Collaborators
The COVID-19 pandemic put into stark relief the needs of frontline workers. Various sorts of travel have become challenging (inside
individual countries) or impossible (across national borders). Frontline workers such as eld service technicians have therefore been
inhibited from their usual work of going out into the eld to service and x complex systems; even if third-party eld service techs are able
to travel, their customers' corporate policies have often barred them from entering the site. In many frontline worker scenarios,
collaborations have been strained: For example, with knowledge workers at home, frontline factory workers have had to nd new ways to
interact with them.
Enter augmented reality (AR), which virtually overlays contextual digital information onto a physical-world object, augmenting the
understanding and capabilities of an employee in real time. Augmented reality has seen adoption in the enterprise for years, but COVID-
19 has acted as a catalyst to accelerate the growth of both AR and its cousin, mixed reality (MR), in which that virtual overlay uses a head-
mounted device, holographic objects, anchoring points, and six degrees of physical freedom for movement. AR and MR are overcoming
market inertia in 2020, and we anticipate even faster growth ahead:
Enterprises used AR out of necessity, overcoming reservations. Tools such as PTC’s Vuforia Chalk, an AR application that can be
downloaded for free on any mobile phone or tablet, became a go-to innovation for frontline workers in 2020. By April, over 5,000
companies had downloaded Chalk; by August, that number had grown to over 10,000. “Augmented reality is like Zoom or WebEx for
frontline workers,” the CEO of PTC, Jim Heppelmann, told Forrester.(1) With a worker on site and a remote expert collaborating through
“see what I see” camera views and “writing on reality,” remote assistance solves the collaboration problem — but in situ at a work site.
The inertia that had kept organizations from trying these technologies was quickly overcome by the need to connect under emergency
conditions and keep critical infrastructure running. And this direct experience will drive expansion in those rms in the months and
years ahead.
AR and MR helped organizations adapt to COVID-19. The pandemic created new problems that needed to be solved rapidly. Sheba
Medical Center used Microsoft’s HoloLens 2 mixed-reality interface to remotely train 60 physicians and other clinical personnel on
operating ventilators for COVID-19 patients. A consortium of companies, including Ford, GKN Aerospace, McLaren, Airbus, and
Siemens, used AR and MR tools to aid knowledge transfer on manufacturing ventilators in the UK. RealWear, a maker of ruggedized
head-mounted displays, highlighted examples of eld service organizations shipping the company’s wearable devices to customers so
that expert engineers could circumvent lockdown restrictions and walk their customers through servicing and repair tasks from afar.
These lighthouse experiences proved that, under life-or-death circumstances, AR and MR could be used in frontline medicine and
manufacturing.
Customer-facing scenarios helped frontline salespeople. In other instances, lockdowns and the subsequent need for social
distancing mean that employees can’t always interact with customers in person — even though buying a car is, traditionally, a highly in-
person experience. Lincoln turned to AR to help franchises continue making deals and to help customers who can’t or don’t want to
visit, partnering with SightCall to create a virtual experience center: Customers schedule 30–45-minute appointments with the Lincoln
Experience Center, where an agent uses a stabilized camera to give a virtual tour that customers can watch on a PC, tablet, or
smartphone.(2) This experience center concept will persist into the future and o ers a model for how salespeople and customers can
adapt to remote sales experiences.
Sources:
The Experience Of 2020 Will Initiate Long-
Awaited Growth In Enterprise Augmented,
Mixed, And Virtual Reality
September 3rd, 2020 | J. P. Gownder, Paul Miller, David Johnson, James McQuivey

(1) Interviews with PTC, April and August 2020.
(2) Interview with SightCall.
Employees And Leaders Turn To Virtual Reality And Virtual Worlds To Mimic Real-World
Human Experiences And Connections
In 2020, the pandemic has disrupted longstanding patterns of work, forcing more employees to work remotely. As a result, business
leaders need new ways to transfer knowledge, train employees, and — perhaps most of all — create connections between teams. Enter
virtual reality (VR), which has only become an enterprise-ready tool in the past few years. Now, the market is maturing beyond hype or
novelty. Hardware o erings — previously a pain point inhibiting enterprise adoption — continue to mature: From Varjo’s human-eye-
resolution high-end VR and “pass-through” camera XR-1 to HTC Vive’s enterprise-focused, mass-deployment-ready Cosmos Play,
enterprises have more options than ever before. Though not able to address all needs yet, enterprise leaders can already con dently test
VR as a still-emerging category of technology innovation that can empower these scenarios:
Train in VR. Walmart’s large-scale deployment of Strivr-based training gave legitimacy to the VR training market. But more complex
training scenarios continue to appear, even as the science of VR training gathers proof of its e cacy. In medicine, a double-blind study
recently proved that VR training could increase procedural completion and accuracy for surgical training. Ninety-four percent of
radiography students in Dublin said they would recommend their VR coursework to other students; a professor said the “tool will be
invaluable to our students during the COVID-19” pandemic, during which remote, online learning is the norm. And students using virtual
worlds have been shown to outperform teacher-led instruction for collaborative problem solving. These examples show that training is
moving from simple scenarios, like retail sales associate onboarding, to providing training for complex, high-value jobs, such as a
physician position.
Empathize via VR. Virtual reality allows people to be placed into lifelike scenarios . . . as someone else. Startup Vantage Point created
VR simulations that “put people into others’ shoes” to help address diversity and inclusion, unconscious bias, and racial discrimination
in the workplace. In Scandinavia, Swedish rail operator SJ and Norway’s Vy work with local VR startup Vobling to familiarize sta with a
range of unfamiliar situations, from tackling on-train res to navigating a station platform in a wheelchair. To build compassion among
police o cers for members of the communities in which they work, Axon built a VR simulation that promotes empathy while teaching
skills in de-escalation. The goal is to deepen the empathy your employees have with each other, with customers, and with citizenry,
depending on their job role.
Connect in VR. Some 66% of surveyed global information workers say that their normal work routine has been interrupted by the
COVID-19 crisis.(1) A key area of disruption came in connecting with coworkers and customers; huge increases in use of Zoom and
Microsoft Teams has nevertheless left some people searching for more than the simple 2D videoconference. The crisis prompted a 19x
increase in users of Sococo, a technology vendor that provides a “virtual o ce space” that replicates an o ce environment and allows
employees to participate in speci c meetings.(2) Sococo aims to make connecting more impromptu — you can move from meeting
room to meeting room seamlessly — by recreating a small, abstracted, always-open version of the o ce in the cloud. Overcoming the
loss of connection should alleviate the loneliness associated with working from home, which will aid innovation e orts.
Simulate the o ce in VR. Other players hope to replicate the in-person experience to the degree of simulated presence. MeetinVR
o ers a full virtual world, like AltspaceVR or Second Life but with enterprise-level management tools.(3) Employees appear with avatars
in 3D and can navigate to various rooms, including conference rooms with presentation screens or more casual spaces. Users gain
“special powers” via 3D mind maps: They have a simulated tablet within the environment from which they can extract content, toss it
onto a whiteboard, onto screens, or even place them in “midair” for annotation. Immersive virtual worlds such as what MeetinVR is
o ering are growing in sophistication and user experience and may merit exploration for highly remote teams.
Sources:
(1) Base: 10,749 global information workers; source: Forrester Analytics Business Technographics® Workforce Survey, 2020.
(2) Forrester interview with Sococo, April 2020.
(3) Forrester interview with MeetinVR, August 2020.
Related Resource
The CIO's Guide To Augmented, Mixed, And Virtual Reality
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