Augmented Reality (AR) and Virtual Reality (VR): Introduction to AR/VR – Key

concepts and differences between AR and VR – Historical development and current state -
AR/VR applications in marketing and customer experience – Training and development
through immersive technologies – Challenges and Opportunities – Technological limitations
and advancements – Integration with existing business processes.

Immersive Technologies – AR/VR/MR

https://www.youtube.com/watch?v=XLP4YTpUpBI

It means immersing a user using technologies in different domains

Augmented Reality

AR is the real time integration of digital content into a user’s real world environment. Lets
say, you have moved to a new house and you need a cupboard. You can stand in your empty
room and with the help of AR and your phone’s camera you can digitally overlay a cupboard
that you are considering in your real world space. That is enhanced product virtualization.
Used cases are in Healthcare, Education, Gaming etc
AR when you have the real world and you have the digital experience overlaid or
augumenting, that real world experience. Its not replacing anything, its just adding to it.
Types of AR, MARKERBASED AND MARKERLESS.

MB OR MARKERBASED when you have a marker or a trigger that starts the augment
reality experience. The user has to interact, set off that trigger, in order for it to start.
Markerless do not require a trigger or a marker, they are more dynamic and rely on things
like GPS, sensors, computer vision to map out a user’s environment in real time and deliver
dynamic spontaneous content. This experience is wonderful however expensive

AR is not a synonym for VR. VR is used when a user is fully immersed in a virtual world.
Think about VR Glasses, they are completely in the virtual world.
There is another term called Mixed Reality, which is a hybrid of AR and VR, where you have
the real world and the virtual world interacting with each other.

What is Augmented Reality (AR)?

Augmented Reality (AR) is a technology that overlays digital information (like images,
sounds, or text) onto the real-world environment — in real-time.
It augments (adds to) what you see, hear, and feel, without replacing the real world.
In simple words:
👉 Real World + Virtual Objects = Augmented Reality
Unlike Virtual Reality (VR) (which creates a completely new virtual world), AR keeps you
grounded in the real world but enhances it with smart digital elements.
Example of Augmented Reality:
🔵 Example: Pokémon GO
• In the mobile game Pokémon GO, when you walk around with your phone camera
on, you can see your real-world surroundings.
• Suddenly, a Pokémon character appears on your screen as if it is standing in your
living room, your park, or on your street!
• The app adds digital creatures to your real-world view through your phone camera.
This is Augmented Reality in action!

Other Quick Examples:

• IKEA Place app: Lets you place virtual furniture in your real room using your
smartphone, to see if it fits before buying.
• Snapchat filters: When you use a dog face or funny glasses on your selfie, that’s AR.
• AR navigation: Google Maps AR gives walking directions by overlaying arrows and
street names on your live camera view.

Case Study on IKEA PLACE

How IKEA Uses Augmented Reality (AR)

IKEA uses Augmented Reality through an app called IKEA Place.

This app helps customers visualize furniture and home décor items inside their own
homes — before they actually buy anything.
Here’s how it works:
1. 📱 You open the IKEA Place app on your smartphone or tablet.
2. 🏡 You point your camera at the room where you want new furniture.
3. 🛋 You select a product from the IKEA catalog inside the app (for example, a sofa, a
table, or a bed).
4. 👀 The app places a life-size, 3D version of that furniture right onto your camera
screen — so it looks like it’s actually sitting in your room!
5. 🔄 You can move it around, rotate it, and even check how it fits with your existing
furniture and wall colors.
The coolest part:
The furniture model is true to scale (accurate size), and lighting and shadows adjust
realistically to match your room.

Why is AR Important for IKEA?

• Better decision-making: Customers can see how items fit and match before
purchasing.
 • Reduced returns: Fewer customers return items because they know what it looks like
at home.
• Enhanced experience: Shopping becomes fun, interactive, and super easy.
• Increased online sales: Customers feel confident shopping without going to the store.
______________________________

Virtual Reality

Virtual reality (VR) is a technology that allows users to immerse themselves in an artificial,
computer-generated environment and interact with it in real-time.

Virtual Reality places the viewer inside a moment or a place, made possible by visual and
sound technology that makes the brain into believing it is somewhere else. It is an experience
of a world that does not exist.

Virtual Reality tricks one’s mind using computers that allow one to experience and more
interestingly, interact with a 3D world.

• AR adds digital elements to the real world, while VR creates a completely immersive
digital environment

Virtual Reality (VR) is a technology that creates a simulated environment, allowing users to
feel like they are in a different place or world. VR puts you inside a computer-generated
world that feels real. It does this by using special equipment that covers your eyes and
sometimes your ears called VR Headset. Virtual Reality creates a believable, interactive 3D
environment that you can explore and interact with, making you feel like you are really there.

Virtual Reality (VR) is a technology that creates a completely immersive digital

environment that you can interact with — making you feel like you are inside a different
world.
In VR, you leave the real world behind and step into a computer-generated 3D world.
To experience VR, you usually need special equipment like:
• A VR headset (for example, Oculus Rift, Meta Quest, or HTC Vive),
• Sometimes hand controllers or gloves to interact with the virtual environment.

Example of Virtual Reality:

🔵 Example: Playing a VR Game like Beat Saber
• You wear a VR headset.
• In the game Beat Saber, you see yourself standing in a glowing, futuristic tunnel —
not your living room anymore!
• Music plays, and colored blocks fly toward you.
• You use your VR hand controllers like swords to slash through the blocks according
to the beat.
• Everything around you — the environment, the blocks, the swords — is virtual, but
it feels real because of how the visuals, sounds, and interactions are designed.

Examples of VR in Education:
🔵 1. Virtual Science Labs:
• Students perform chemistry experiments safely in a virtual lab.
• They can mix chemicals, observe reactions — without any risk of accidents.
🔵 2. History Field Trips:
• Students can "travel" to Ancient Egypt, walk inside the pyramids, or witness
historical events like the signing of the Declaration of Independence — all through
VR.
🔵 3. Medical Training:
• Medical students practice surgeries on virtual patients.
• VR allows them to explore human anatomy in 3D, slice through layers, and practice
techniques before real surgeries.
🔵 4. Engineering and Architecture:
• Students can build and walk through 3D models of bridges, skyscrapers, or machines.
• It helps them understand spatial designs and identify construction flaws early.
🔵 5. Language Learning:
• Students can be placed in a virtual Paris café or Tokyo market, where they practice
speaking the local language with virtual characters.

Difference between AR and VR

Mixed Reality –

Mixed reality is a blend of the physical world and digital world. In mixed reality, digital
information is represented by holograms—objects made of light and sound—that appear in
the space around you. Through artificial intelligence, these holograms respond to commands
and interact with real-world surfaces in real time for a more natural and intuitive experience.

A 3D hologram is a three-dimensional photo that overlooks an object with light fields passing
through it, and they appear rather floating in the middle of the air.
Historical Developments in AR/VR

Current Trends of AR and VR

Current State (as of 2025)

🔹 AR Today
• Widespread in smartphones via apps like Snapchat, Instagram filters, and Google
Maps Live View.
• Used in enterprise: AR glasses (e.g., Microsoft HoloLens 2, Magic Leap) applied in
training, field service, and remote collaboration.
• Retail: Try-before-you-buy tools (makeup, furniture, eyewear).
• Healthcare: Surgery visualization, anatomy training.
🔹 VR Today
• Improved headsets: Meta Quest 3, PlayStation VR2, HTC Vive Pro with better
resolution, tracking, and affordability.
• Enterprise use: Simulations in aviation, military, soft skills training.
• Education: Virtual classrooms and labs.
• Entertainment: VR gaming, immersive storytelling, virtual concerts.
🔹 Key Trends (2025)
• Convergence into XR platforms.
 • AI integration for smarter virtual agents and spatial computing.
• 5G and edge computing enabling real-time rendering and streaming.
• Apple Vision Pro (launched in 2024) brings high-end spatial computing into the
AR/VR space.

AR/VR applications in marketing and Customer experience

Case Study 1 - IKEA PLACE -AR

https://www.youtube.com/watch?v=UudV1VdFtuQ

IKEA, a worldwide known “Assemble & Install-It-Yourself” furniture company with Swedish
origin, launched an augmented reality app, namely, IKEA Place, that aimed to solve practical
problems surrounding furniture shopping in September 2017. The IKEA Place, which used
augmented reality to allow its users to visualize how furniture will look in their own home.

Objectives
• Solve a major pain point: Will this furniture fit and look good in my space?
• Reduce product returns due to incorrect sizing or aesthetic mismatch.
• Improve customer engagement and brand innovation perception.
• Bridge the gap between digital browsing and physical in-store experience.

Key Features
• True-to-scale 3D models of over 2,000 products.
• Drag-and-drop interface to move and rotate items in a room.
• AR visualization using mobile device camera, with no need for special hardware.

Marketing Strategy

• Heavily promoted through digital marketing, app stores, and in-store signage.
• Positioned as a "futuristic shopping experience" aligned with IKEA’s identity as a
forward-thinking brand.

Impact & Results

• Increased customer confidence in online purchases.

• Reduction in return rates, especially for larger furniture items.
• Boost in app downloads and user engagement (millions of downloads in the first
year).
• Set the industry benchmark for AR-based furniture shopping.
• Helped position IKEA as a leader in digital transformation in retail.

Technology Stack
• Apple ARKit (iOS) and later Google ARCore (Android).
• Built using Unity for 3D modeling and AR rendering.
• Incorporates machine learning for object recognition and spatial mapping.
Case Study 2- Sephora Virtual Artist

https://www.youtube.com/watch?v=NFApcSocFDM

🔹 Overview
Sephora launched the Virtual Artist AR app (developed in partnership with ModiFace, an
AR company later acquired by L'Oréal) to help users try on makeup virtually. The
technology uses facial recognition and real-time AR rendering.

🔧 Key Features and Functionality

✅ 1. Virtual Try-On
• What: Users can try on thousands of products—lipsticks, eyeshadows, foundations,
lashes—on their face using their smartphone camera.
• How: Real-time facial mapping identifies facial features and overlays products with
natural movement.
• Why It Works: Eliminates the hygiene and accessibility barriers of physical testers.
✅ 2. Step-by-Step AR Tutorials
• Offers makeup application tutorials using the customer’s own face as the canvas.
• Shows where and how to apply products like contour, highlight, eyeliner, etc.
✅ 3. Shade Finder & Color Matching
• Scans your face to find the right foundation or concealer shade.
• Uses AI + AR to detect skin undertones and lighting conditions.

📱 Deployment Channels
• Mobile App: Sephora’s native app on iOS and Android.
• In-Store iPads & Smart Mirrors: Available in select stores for walk-in customers.
• Website Integration: Allows virtual try-on directly from product pages.

📊 Business Impact
Metric/Area Impact
Customer Experience Personalized, engaging, and contactless shopping
Conversion Rates Significantly increased due to try-before-you-buy model
Return Rates Decreased due to better product matching
Brand Loyalty Enhanced via tech-savvy, user-centric innovation
Challenges of using immersive technologies

Immersive technologies, like VR and AR, present numerous challenges, including high costs,
complex user interfaces, privacy concerns, and the need for seamless integration with
existing systems. Additionally, technical limitations, lack of accessibility, and potential for
distractions or negative psychological impacts can hinder widespread adoption.

Technical and Implementation Challenges:

• High Costs:
The initial investment in hardware, software development, and content creation can be
substantial.
• Complex User Interfaces:
Immersive experiences can be challenging to navigate, especially for those unfamiliar with
the technology.
• Technical Limitations:
Current hardware like VR headsets may have limited field of view, lower resolution, and
latency, affecting the immersive experience.
• Hardware Constraints:
Widespread consumer adoption is hampered by limited access to devices and the need for
powerful computing resources.
• Content Quality and Relevance:
Creating compelling and high-quality immersive content requires significant resources and
expertise.
• Integration with Existing Systems:
Seamlessly integrating immersive experiences with business systems (like ERP and CRM)
can be a challenge.
• Lack of Accessibility:
Limited availability of immersive technologies and accessibility for individuals with
disabilities pose a barrier.
• Technical Infrastructure:
Requires a stable internet connection and compatible software.
• Maintaining and Troubleshooting:
Hardware and software can be complex to maintain and troubleshoot, leading to disruptions.

User-Related Challenges:

• Privacy and Data Security:

Immersive technologies often collect personal data, raising concerns about privacy and
potential breaches.
• Motion Sickness:
Some users may experience motion sickness when using VR or AR.
• Distraction and Loss of Focus:
The immersive nature of these technologies can lead to distractions and make it difficult to
focus on tasks.
• Psychological Impact:
Immersive experiences can lead to anxiety, post-traumatic stress, or even social isolation.
 • Lack of Real-World Experience:
Over-reliance on virtual environments could negatively impact real-world interactions.
• Bias and Discrimination:
Immersive technologies have the potential to perpetuate existing biases and discrimination.
• Safety Concerns:
The level of immersion in VR can lead users to forget their physical surroundings, potentially
causing accidents.
• Mental Health:
Prolonged exposure to virtual environments can take a toll on mental health, especially when
considering the potential for violence and harassment.

Other Challenges:

• Lack of Skilled Workforce:

Insufficient workforce skills in immersive technologies can impede their optimal utilization.
• Perceptions of the Technology:
Some individuals may view immersive technologies as a gimmick or not applicable to their
business model.
• Ethical Considerations:
Immersive technologies raise ethical questions about data collection, privacy, and the
potential for misuse.
• Sustainability Concerns:
The energy consumption and environmental impact of immersive technologies need to be
considered.
Opportunities of using immersive technologies

Immersive technologies offer significant opportunities across various sectors by creating

engaging, interactive, and realistic experiences. These opportunities range from enhancing
customer engagement and product development to transforming education and
training. Immersive experiences can also foster collaboration and accelerate innovation,
making them a powerful tool for businesses and organizations.
Here's a more detailed look at the opportunities:

1. Customer Engagement and Brand Marketing:

• Immersive experiences allow brands to connect with customers in a more meaningful
way, creating memorable and interactive campaigns.
 • By transporting customers into a virtual world, businesses can create a deeper level of
engagement and brand loyalty.
• These experiences can range from virtual store tours to interactive product
demonstrations, enriching the customer journey.
2. Product Development and Innovation:
• Immersive technologies enable businesses to visualize designs in 3D, allowing for
faster prototyping and iterative design processes.
• Virtual reality (VR) and augmented reality (AR) can facilitate collaboration between
teams, even across geographical distances.
• These technologies can help businesses identify and address design flaws early on,
leading to cost savings and time efficiency.
3. Education and Training:
• Immersive learning provides students with engaging and interactive experiences,
making learning more enjoyable and effective.
• VR simulations can replicate real-world scenarios, allowing students to practice skills
in a safe and controlled environment.
• These technologies can also be used to create personalized learning pathways,
catering to individual needs and learning styles.
4. Healthcare:
• Immersive technology can improve patient outcomes by aiding in diagnosis,
rehabilitation, and mental health treatment.
• VR simulations can be used to train medical professionals in complex procedures,
reducing the risk of mistakes and improving patient safety.
• These technologies can also enhance patient comfort and reduce stress during medical
procedures.
5. Remote Collaboration and Communication:
• Immersive environments can facilitate more natural and effective remote
collaboration, especially for visual and spatial problem-solving.
• VR and AR can create a sense of presence, making remote meetings feel more
engaging and interactive.
• These technologies can also reduce the need for physical travel, saving time and
money.
6. Attracting and Retaining Talent:
• Immersive experiences can be used to showcase a company's culture and values,
making it more attractive to potential employees.
• VR can be integrated into the recruitment process, from highlighting working
environments to conducting remote interviews.
• These technologies can also provide employees with more engaging and interactive
training experiences, boosting morale and retention.
7. Increased Efficiency and Cost Savings:
• Immersive technologies can reduce training time and improve employee productivity
by providing more effective and engaging learning experiences.
• By allowing businesses to simulate real-world scenarios, these technologies can
reduce the need for costly physical prototypes and training materials.
• Immersive experiences can also lead to a more efficient use of resources, such as
space and time.
8. Transforming Industries:
• Immersive technology has the potential to disrupt and transform a wide range of
industries, including healthcare, education, engineering, architecture, tourism, and
marketing.
 • By creating unique and memorable experiences, businesses can stand out from the
competition and engage customers on a deeper level.
• These technologies can also help businesses improve their operations, reduce costs,
and increase profits.

Technological limitations

Immersive technologies like VR and AR face technological limitations such as high hardware
costs, limited social interaction, potential motion sickness, and data privacy concerns. These
limitations can impact user experience, accessibility, and the overall success of immersive
experiences.

Elaboration:

• Cost:
The initial investment for hardware (headsets, sensors, etc.) and software development can be
substantial, making immersive tech inaccessible to some individuals and smaller businesses.
• Social Interaction:
VR can be isolating, limiting natural social interactions and making it difficult to
communicate effectively in virtual spaces.
• Motion Sickness:
Many users experience motion sickness or discomfort when using VR due to the disconnect
between the virtual and real world.
• Data Privacy:
Immersive technologies collect user data, raising concerns about privacy, especially in
industries like healthcare.
• Accessibility and Usability:
Not all users are comfortable with VR technology, and some may find it cumbersome or
disorienting, limiting accessibility.
• Content Creation:
Creating high-quality, compelling immersive content requires significant resources and
expertise.
• Interoperability:
Immersive experiences often exist within fragmented platforms, making it difficult to move
seamlessly between them.
• Cybersecurity:
As immersive technologies become more connected, they are vulnerable to cybersecurity
threats like data breaches.
• User Interface:
The user interface needs to be intuitive and user-friendly to avoid frustration and confusion.
• Training and Skillset:
Developing truly immersive experiences requires specialized skills, which may not be readily
available.
• Limited Social Presence:
Devices can hinder facial expressions and eye contact, impacting social presence in virtual
spaces.
• Attention Tunneling:
The focus of immersive experiences can lead to attention tunneling, hindering
communication and collaboration.

Integration with existing business processes

Integrating immersive technologies like VR, AR, and MR into existing business
processes can significantly enhance various areas, including customer engagement, employee
training, remote collaboration, and data analysis.This integration involves using these
technologies to create more engaging customer experiences, simulate real-world scenarios for
training, facilitate remote teamwork, and gather valuable data insights.
Key areas of integration and benefits:
• Customer Engagement:
Immersive technologies like VR and AR can be used to create immersive shopping
experiences, allowing customers to visualize products before purchasing, potentially
increasing sales and reducing returns, as demonstrated by the retail company's
transformation.
• Employee Training:
VR simulations can be used for training employees, enabling them to practice real-world
scenarios in a safe and controlled environment, improving performance and reducing training
time.
• Remote Collaboration:
MR technologies can facilitate remote collaboration by enabling virtual meetings, project
collaboration, and even product design sessions with team members across different
locations.
• Data Analysis and Insights:
Immersive technologies can provide new avenues for collecting data on customer interactions
and preferences, allowing businesses to gain valuable insights into customer behavior and
preferences, informing future marketing and product development strategies.
• Process Optimization:
By integrating immersive technologies, businesses can identify bottlenecks in existing
processes and explore new ways to optimize workflows and improve efficiency.
• BIM Integration:
Immersive technologies can be used to visualize and manage complex data in BIM (Building
Information Modeling) projects, promoting a deeper understanding of data and facilitating
collaboration.
• Industry 4.0 Integration:
VR and AR can enhance learning experiences in Industry 4.0 contexts, allowing users to
interact with and experience scenarios in simulated environments.