Porsche’s Push into AR Glasses Lends Credence to the Technology’s Potential

Initially announced last year, Porsche has begun to outfit its technicians with Augmented Reality (AR) smartglasses. Across all of the company’s U.S. dealerships (nearly 200), technicians will have the option to call on a remote expert and be guided through a task using the ODG R-7 smartglasses with the Tech Live Look program. This focus on remote expertise fits well with the general trends of the AR market, with remote expertise proving a reliable ROI use case. Porsche was a relatively early adopter of AR—albeit on the mobile side for marketing and user experience—and this expansion to glasses serves as an example of the wide applicability of AR, across device types, use cases, and markets.

The story for AR in general, and specifically for Porsche, is almost entirely positive. With remote expertise, Porsche will see shorter turnaround and higher throughput for service, a higher degree of worker safety, and fewer technician errors. Any time that previously required an onsite expert can be shifted to a remote expert scenario, saving on travel costs and time. Depending on the true ROI for Porsche’s implementation, these savings can pass to consumers, raising customer satisfaction, which will still be improved thanks to the shorter turnaround.

The one danger to this investment is a constant for AR glasses or really any new technology adoption: any time the devices sit unused, the ROI story is weakened. OpEx costs often do not stop along with device usage, never mind the upfront cost of the hardware. This means that Porsche feels that the total ROI through using these devices will be great enough to overcome any unused devices. The company has already acknowledged this, further emphasizing the robust and secure ROI associated with this type of implementation.

This topic is at the core of AR’s delayed adoption. Key performance indicators differ for every application and company, and expectations for ROI differ equally so. Without a baseline for how AR has been received, what ROI looks like for a use case similar to the intended one, and best practices for AR implementations and usage, companies are rightfully hesitant. Porsche’s adoption is notable primarily due to the scale and the timing of adoption; even if there are only a few devices used per location, complete U.S. coverage is notable. As an initial investment point, this is significant.

While Porsche’s initial glasses push is focused on remote expertise and the technician workforce, the universal applicability of AR and hands-free glasses mesh with the entire value chain. The automotive market can utilize established AR technology and content for manufacturing (e.g., the plant floor), logistics, retail and commerce, marketing, and more. Porsche’s mobile device AR experience for its Mission E electric car represents a foundation for marketing; a similar experience for the entire lineup is entirely feasible and would present marketing value. There is no reason this can’t expand to a showroom experience, or an “at-home showroom” experience, rather easily: first on mobile, and ultimately on glasses.

Ford has shown the potential for AR glasses in the design and manufacturing realms: quick design and prototyping iteration, instant collaboration, and digitally augmented and interactive physical prototypes. With some effort to optimize and create design and prototyping content for AR, the story is the same for any other automotive manufacturer (or more accurately, any type of manufacturer at all).

Field maintenance and servicing, step-by-step instruction, and more can be leveraged in manufacturing environments, with the familiar benefits of increased safety and efficiency with reduced worker error. Logistics-focused applications, such as pick and pack, also apply to multiple parts of the value chain and fit especially well in automotive.

Considering all of these facets, it’s easy to recognize the value of AR across an entire market, whether that be automotive or otherwise. With the growth of end-to-end platform players looking to service this exact thought process, barriers to adoption end-to-end are reducing. There will still be that initial difficult investment decision, with high hardware prices and ongoing software/service costs. Even so, ASPs for glasses will naturally decline while increasing in capability. Depending on the use case, the breakeven point for AR implementation can be as fast as 1 or 2 weeks. For those larger-scale implementations, or those with higher complexity and requirements leading to higher overall costs, that point is farther out in the future. For these, it is imperative for platform providers to publish metrics: KPIs, time to ROI, benefits at scale, etc.