Article | Harvard Business Review

Why Every Organization Needs an Augmented Reality Strategy

by Michael E. Porter and James E. Heppelmann

Abstract

While the physical world is three-dimensional, most data is trapped on two-dimensional pages and screens. This gulf between the real and digital worlds prevents us from fully exploiting the volumes of information now available to us. Augmented reality (AR), a set of technologies that superimposes digital data and images on physical objects and environments, is closing this gap. By putting information directly into the context in which we’ll apply it, AR increases our ability to absorb and act on it. AR will become the new interface between humans and machines, say Michael E. Porter of Harvard and James E. Heppelmann, the CEO of the industrial software maker PTC. Many people are familiar with AR entertainment applications, such as Snapchat filters, but AR is being applied in far more consequential ways in business. Pioneering organizations are already implementing it in product development, manufacturing, logistics, marketing, service, and training—and are seeing major gains in quality and productivity. AR improves how users visualize information, receive and follow instructions, and interact with products. AccuVein, for instance, uses AR technology that converts the heat signature of a patient’s veins into an image superimposed on the skin, making them much easier to locate. Boeing uses AR to show trainees how to assemble an aircraft wing—and has cut the time it takes them to do that task by 35%. At GE, factory workers have achieved a similar gain in efficiency by using voice commands in AR experiences to perform complex wiring. AR will have a wide impact on how companies compete. This article walks readers through the questions firms need to ask when integrating it into their strategies and operations. The article also includes HBR’s first embedded AR experiences, which readers can launch by downloading a new HBR app on their mobile devices and then pointing them at targeted images in the magazine’s pages.

Keywords: Technological Innovation; Innovation Strategy; Organizational Change and Adaptation; Performance Effectiveness;

Format: Print Find at Harvard Register to Read

Citation:

Porter, Michael E., and James E. Heppelmann. "Why Every Organization Needs an Augmented Reality Strategy." Harvard Business Review 95, no. 6 (November–December 2017): 46–57.

About the Author

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Michael E. Porter
Bishop William Lawrence University Professor
Strategy

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