Introduction
Virtual reality (VR) is currently impacting almost all fields of business. VR refers to a computer technology that helps in creating artificial environment in such a way that it appears real. VR is broadly divided into two components that include software and hardware. Software component contains contents that are shown through HMD, which is the hardware component. Originally, VR was created to enhance entertainment experience. However, the use of VR in business is gradually outpacing leisure use. The spending of businesses on VR is expected to reach $9.2 billion by 2021. VR is used in business to conduct a number of activities such as customer service, marketing, training, and recruitments (Marr, 2017). The primary purpose of the paper is to conduct a systematic literature review to determine how VR is used in business.
Literature Review
VR can be applied to a number of business activities to address various business needs. According to Sylvester Kaczmarek, one of the leading VR advisors and consultant, businesses are using VR to improve customer experience, which results into an increase in customer loyalty Uzialko (2017) . He argues that businesses use VR to offer customers immense and interactive experience that makes them to enhance their association with the products or services. Marr (2017) also argues that VR gives businesses a better opportunity to rethink and redesign the way they interact with their customers. VR is both a marketing and customer service tool that enables businesses to showcase their products and services to customers. In addition, according to Marr (2017), businesses are using VR as a source of useful information, especially with regard to customer behaviors. VR can be used to generate data on how customers act, react and interact. Instead of visiting a physical showroom, customers only need to put on a headset in order to interact with the product without the need for them to leave their homes. Businesses are increasingly using VR to provide customer services by improving customer experience, leading to increased sales volume and customer loyalty.
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Maria Korolov, one of the publishers of the business tech publication known as Hypergrid Business , argue that the most successful use of VR in business is to improve the effectiveness of marketing Uzialko (2017). She explains that businesses only need to take a portion of their products or services, put it into a virtual environment, and then allows customers or target audience to use it. VR is also provides businesses with an opportunity to introduce established products to new audience. Many businesses are now using VR to perform a number of marketing activities such as demonstrating products features, functionality, and attributes to customers.
At the same time, Greenwald (2016) argues that VR can be used to convey the mission of the brand at the point of sale, make customers make informed decision and choices, and illustrate how a product or service can meet specific needs of customers. Greenwald (2016) further opined that VR can be used to immerse customers in a branded entertainment experience and video story-telling to reach to existing and potential customers. For instance, Tom’s is successfully using VR to tell a story about their products and services. It has a virtual reality chair that customers use to explore the virtual world Greenwald (2016). The use of VR is memorable, emotional, and drives customers to tell their experience to others, leading to word of mouth (WOM) marketing, which is one of the most effective marketing strategies that businesses are currently using.
According to Waugh (2017), the most powerful impact of VR in business environment is training. Businesses are using VR in highly sensitive fields in order to ensure that workers are well-trained before they are entrusted with important duties and roles. The use of VR in training is most common in businesses that engage in highly sensitive or dangerous tasks. For instance, in the health industry, VR are used to train surgeons before they engage in actual operations. Uzialko (2017) maintains that will be used to simulate resistance, especially when the surgeons will be operating in the virtual patient in the near future. Uzialko further argues that VR can be used to test the proficiency of employees in performing a given procedure or task in a virtual operating room. One of the main advantages of using VR in training is that it can easily be used to correct the situation when things go wrong, as users only need to reset the device. Established companies like Samsung are now using VR to train their sales teams in how to handle customers. Football teams like Arsenal are also using VR to train their players and review their moves in the pitch. Therefore, businesses across industries are using VR to train their employees in order to improve their performance and productivity.
The use of VR for data analysis is increasingly becoming common, particularly among companies that generate and use big data (Uzialko (2017). VR assist businesses in doing their data analyses while at the same time forecasting trends to gain competitive advantage in the market. The University of Warwick, for instance, developed a system that businesses can utilize to gain a greater understanding of their data, leading evidence-based and informed decision-making and strategies (Uzialko (2017). VR makes it possible for data scientists in a firm to engage in immense data visualization that allows for intuitive data understanding and easier recognition of patterns and trends in the market. VR also allows for multi-dimensional data analysis, which helps users to understand subjects, significance, and location of data. As a result, businesses can now rely on data analysis to come up with strategic decisions and strategies that give them competitive edge in the market.
According to Waugh (2017), other areas where VR is applied in business environment include recruitment and property management. Companies are using VR to directly expose potential employees on what it is like to do a given job. For instance, British Army is using VR to expose new recruits to the nature of their jobs. At the same time, property managers are using VR to show clients around the properties. The technology is also having significant impact in the field of architecture, especially in designing and home improvements.
However, high cost is one of the factors preventing business from using VR. In many cases, VR is affordable to established and stable companies, but not small businesses that struggle to generate enough revenue and make profits (Waugh, 2017). As a result, VR is still in its early stages and it is yet to reach a stage when it is widely adopted by many businesses. Only established businesses have been able to take advantage of VR to gain competitive advantage in the market.
Summary of Findings
One of the main findings of the systematic literature review is that many businesses are using VR to improve customer experience. The improved customer experience leads to an increase in sales volume and enhanced customer loyalty. The literature review also revealed that businesses are using VR to collect data from customers in order to redesign their products or service to meet specific customer needs, expectation, and experience. As a result, the need to improve customer experience in order to increase sales is the main reason why businesses are using VR. Secondly, businesses are using VR as a marketing tool and strategy to meet existing and potential customers ( Marr, 2017) .
Another finding is the massive use of VR to train employees. VR are used to train employees in highly sensitive or dangerous areas like healthcare industry where healthcare professionals needs to accurately follow instruction to avoid negative consequences of their action. The literature review revealed that the use of VR to train employee is common in hospitals. In addition, the use of VR in data analysis is common in business environment, especially with regard to the analysis of big data (Uzialko, 2017).
Conclusion
The use VR in business is gaining momentum, even though it was originally designed to improve entertainment experience. Businesses are currently using VR to improve the experience of their customers, market their products and service, and to train employees. In addition, VR is used to analyze data, which helps firms to make informed and strategic decision that give them competitive advantage in the market. Nevertheless, the high cost of VR is making small businesses to avoid using VR. The use of VR is business is likely to experience significant growth in the future.
References
Greenwald, M. (2016, June 15). 6 Of the Best Marketing Uses of Virtual Reality. Forbes. Retrieved from https://www.forbes.com/sites/michellegreenwald/2016/06/15/6-of-the- best-marketing-uses-of-virtual-reality/#65e7e81a65cf
Marr, B. (2017, July 31). The Amazing Ways Companies Use Virtual Reality for Business Success. Forbes . Retrieved from https://www.forbes.com/sites/bernardmarr/2017/07/31/the-amazing-ways-companies-use- virtual-reality-for-business-success/#3c22e06c1bae
Waugh, B. (2017, August 17). Which industries could benefit from virtual reality? The Telegraph. Retrieved from http://www.telegraph.co.uk/connect/small-business/tech/pc- world/benefits-of-virtual-reality/
Uzialko, A. (2017, October 20). Virtual Reality is Making Marketing and Training More Effective for Businesses. Business News Daily . Retrieved from https://www.businessnewsdaily.com/9344-virtual-reality-business-predictions.html
