Flevy Management Insights Q&A
What role will augmented reality (AR) play in the evolution of mobile strategies across different industries?
     David Tang    |    Mobile Strategy


This article provides a detailed response to: What role will augmented reality (AR) play in the evolution of mobile strategies across different industries? For a comprehensive understanding of Mobile Strategy, we also include relevant case studies for further reading and links to Mobile Strategy best practice resources.

TLDR Augmented Reality (AR) is reshaping mobile strategies across industries by improving customer engagement, operational efficiency, and learning experiences, marking a transformational shift towards Digital Transformation and Innovation.

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Before we begin, let's review some important management concepts, as they related to this question.

What does Customer Engagement Strategies mean?
What does Operational Efficiency mean?
What does Immersive Learning Experiences mean?
What does Digital Transformation mean?


Augmented Reality (AR) is rapidly becoming a pivotal component in the mobile strategies of various industries. By overlaying digital information onto the real world, AR offers innovative ways for businesses to engage with customers, enhance operational efficiency, and create immersive experiences. Its integration into mobile strategies is not just a trend but a transformational shift that is reshaping industry landscapes.

The Retail and E-commerce Sector

In the Retail and E-commerce sector, AR is revolutionizing the shopping experience by bridging the gap between online and physical shopping environments. For instance, IKEA's AR app, IKEA Place, allows customers to visualize how furniture would look in their homes before making a purchase. This not only enhances customer satisfaction but also reduces return rates, a significant cost in the e-commerce industry. According to a report by Gartner, 100 million consumers are expected to shop using AR by 2023. This statistic underscores the growing importance of AR in driving the future of retail, necessitating retailers to incorporate AR into their mobile strategies to stay competitive.

Moreover, AR is enabling personalized shopping experiences. By leveraging AR, retailers can provide recommendations based on the customer's environment or personal style preferences, thereby increasing the likelihood of purchases. Sephora's Virtual Artist app, which lets users try on makeup virtually, is a prime example of how AR can be used to personalize the shopping experience.

Furthermore, AR enhances in-store experiences, making them more interactive and informative. For example, Walmart's AR scanner helps shoppers compare products and access product information by simply scanning items with their mobile device. This not only improves customer engagement but also assists in informed decision-making, highlighting the role of AR in enhancing customer service and operational excellence.

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Manufacturing and Maintenance

In the Manufacturing sector, AR is transforming processes from production to maintenance, thereby improving efficiency and reducing errors. AR can project digital overlays onto machinery to guide workers through complex assembly processes, reducing the time and potential for errors. According to a PwC report, AR in manufacturing is expected to increase operational efficiency by 20%. This significant improvement underscores the value of integrating AR into mobile strategies for operational excellence and workforce empowerment.

AR is also revolutionizing maintenance and repair. Technicians can use AR to visualize the internal components of a machine, identify issues, and receive step-by-step repair instructions, reducing downtime and maintenance costs. For instance, GE Aviation's use of AR for maintenance has resulted in a 12% increase in efficiency, demonstrating the potential of AR to transform maintenance operations.

Moreover, AR facilitates remote assistance, where experts can guide on-site technicians through repairs in real-time, eliminating the need for travel and expediting problem resolution. This not only reduces operational costs but also leverages expertise more effectively, showcasing the strategic importance of AR in enhancing service quality and operational agility.

Healthcare and Medical Training

The Healthcare industry is witnessing a paradigm shift with the integration of AR into patient care and medical training. AR can provide surgeons with real-time data and patient information during procedures, improving precision and outcomes. For example, AccuVein uses AR to visualize veins, making intravenous injections more accurate and less painful for patients. This application of AR in enhancing patient care exemplifies its potential to revolutionize healthcare practices.

In medical training, AR offers an immersive learning experience by simulating medical scenarios, allowing medical students and professionals to practice without risk to real patients. This not only improves the learning experience but also enhances the skill set of healthcare professionals, contributing to better patient care. A study by Deloitte highlights that AR in medical education can improve retention rates by up to 90%, indicating its significant impact on learning and development in healthcare.

Furthermore, AR can empower patients by providing them with more information about their health conditions and treatment plans in an accessible and understandable format. This improves patient engagement and adherence to treatment plans, illustrating the role of AR in patient education and empowerment.

Education and Training

AR is also making significant inroads into the Education sector, providing interactive and engaging learning experiences. By bringing abstract concepts to life, AR can enhance understanding and retention among students. For instance, the AR app Anatomy 4D transforms learning about human anatomy into an interactive experience, making it more engaging and effective. This demonstrates how AR can transform traditional learning methodologies, making education more accessible and enjoyable.

In corporate training, AR can simulate real-life scenarios for training purposes, allowing employees to practice skills in a safe and controlled environment. This hands-on approach to learning not only improves skill acquisition but also prepares employees for real-world challenges, showcasing the value of AR in workforce development and performance management.

Moreover, AR can facilitate remote learning, providing access to educational resources and experiences from anywhere in the world. This democratizes education, making it more inclusive and accessible, and underscores the strategic importance of AR in driving innovation and access in the education sector.

In conclusion, the role of AR in the evolution of mobile strategies across different industries is profound and multifaceted. From transforming retail experiences to revolutionizing manufacturing processes, enhancing healthcare outcomes, and redefining educational methodologies, AR is a key driver of digital transformation. As industries continue to navigate the challenges and opportunities of the digital age, integrating AR into mobile strategies will be crucial for driving innovation, operational excellence, and competitive advantage.

Best Practices in Mobile Strategy

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Mobile Strategy Case Studies

For a practical understanding of Mobile Strategy, take a look at these case studies.

Mobile Strategy Overhaul for a Global Retail Organization

Scenario: A global retail organization has been struggling to keep up with the rapid shift towards mobile commerce.

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Mobile Strategy Overhaul for Education Technology Firm

Scenario: The organization, a mid-sized firm specializing in educational technology, is struggling to engage users and monetize effectively through its mobile platforms.

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Luxury Brand Mobile Strategy Optimization for High-End Fashion Market

Scenario: The organization, a luxury fashion house specializing in haute couture, is facing challenges in aligning its Mobile Strategy with the high expectations of its discerning clientele.

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Mobile Strategy Overhaul for Education Service Provider in North America

Scenario: The organization in question is a North American education service provider that has recently expanded its digital offerings.

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Mobile Strategy Overhaul for D2C Health Supplements in North America

Scenario: A Direct-to-Consumer health supplements firm based in North America faces the challenge of an outdated Mobile Strategy, impacting customer engagement and sales.

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Strategic Revamp of Legacy Mobile Strategy for a Mid-Size Retail Brand

Scenario: A thriving mid-size retail brand has undergone substantial growth over the past three years, nearly doubling its online sales footprint.

Read Full Case Study




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