Deloitte releases its predictions for the UK technology, media and telecoms sector trends for 2019

Every year business advisory giant Deloitte, announces its predictions for the UK TMT sector that new year. I have to say, they are pretty accurate so worth paying attention to if you work in this sector. This year we see the launch of the eighteenth edition of Deloitte’s TMT Predictions 2019 report. You can download the full report yourself, buckle up and prepare to see the future (in great detail) or read our selected highlights below. No, they don’t know how you are going to die but if you ask again, I will be able to tell you, with great confidence!

This 18th edition of Deloitte’s Technology, Media & Telecommunications (TMT) Predictions presents a fascinating array of trends, each developing at its own momentum, which will impact UK businesses and consumers in 2019 and beyond. Many milestones will be reached this year. Progress will be exponential in some fields. But in other areas the way in which we live and work may shift imperceptibly. Based on conversations with over 100 industry executives and more than 10,000 online interviews with members of the public, our endeavour is to provide a considered point of view on key industry trends. This year’s TMT Predictions explore 8 topics, from smart speakers and 3D printing, to 5G and radio.

Based on conversations with 100+ industry executives and 10,000+ online interviews with members of the public, discover what TMT trends we predict will have the biggest impact in 2019 and beyond #DeloittePredicts
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For those of us based in the UK, there is one great big stinky factor we cannot avoid when thinking ahead, Brexit and WTF is going to happen. the brains at Deloitte have of course factored that in but can offer us absolutely no comforting or enlightening words on this so I guess we all just do what we were doing anyway and grind our teeth and dream that we are governed by people whose first priority is our welfare. Imagine that! No, I know it is hard as it’s so unrealistic but it’s more helpful than banging your head against the table.

Our predictions of the major TMT industry trends could, of course, be impacted by Brexit developments. There remains a high level of uncertainty in relation to Brexit, and how it will impact the TMT sector. At the time of writing, the meaningful vote in the UK parliament to ratify the Withdrawal Agreement (governing the legally binding terms of the UK’s exit) and the Political Declaration (the brief summary of the intent of the UK and the EU in terms of future relations) has not taken place. If the deal passes, there remains significant uncertainty as to what the future EU/UK relationship will be beyond the transition period, and how this will impact on business. If the deal is rejected, what happens next is unclear; however, the possibility of the UK leaving the EU without agreed terms (the ‘no-deal’ scenario’) would likely increase given it is the default option if nothing else changes by 29 March.

OK, here we go, our selected highlights from the report.

5G: The New Network Arrives

2019 will see the first mass-market generation of 5G-enabled handsets go on sale. Deloitte predicts that around 20 handset vendors will launch 5G-ready handsets in 2019, with the first available in Q2. Approximately one million 5G-enabled handsets will be shipped by the year’s end, out of a projected 1.5 billion smartphone handsets which will be sold in total in 2019. In the UK, 5G shipments will number around 50,000.

“The introduction of 5G handsets expected this year will look a lot like 2010, when 4G phones first entered the market. There will be a lot of noise in the first year from vendors vying to be first to market, and relatively little action from consumers. We’re not talking about an overnight switch to faster connectivity with lower latency, we will see 5G used by consumers in hotspot locations in the next two to three years, with mass adoption by 2025.” Dan Adams, head of telecommunications at Deloitte

• 2019 will be the year in which fifth‑generation (5G) wide‑area cellular mobile networks arrive at scale, with 25 operators around the world expected to have launched 5G services in at least part of their territory (usually cities).
• A further 26 operators should launch (again with the focus on cities) in 2020. In the UK, all four operators (EE/BT, Vodafone, O2 and 3 UK) are planning to launch 5G services between 2019‑20. It will be many years however before 5G rollout is complete.
• Approx. 20 handset vendors will launch 5G‑ready handsets in 2019 (with the first available in Q2).
• Approx. 1 million 5G handsets (out of a projected 1.5 billion smartphone handsets sold in 2019) will be shipped by year-end. UK 5G smartphone shipments may total about 50k, and in 2020 will range between 2‑3 million.
• One million 5G modems (also known as pucks or hotspots) will be sold, and around a million 5G fixed cellular mobile access devices will be installed.
• At the end of 2020, we expect 5G handset sales (15–20 million units) to represent approximately 1% of all smartphone sales, with sales taking off in 2021, the first year in which retailers will sell more than 100 million 5G handsets.

5G is the connectivity technology of the future – even if its adoption curve may be relatively shallow in the next 12 to 24 months. It will likely take years for 5G to replicate 4G’s marketplace dominance #DeloittePredicts
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What are the three major applications of 5G wireless technology in 2019 and 2020?

• 5G will be used for truly mobile connectivity, mainly by devices such as smartphones.
• 5G will be used to connect “less mobile” devices, mainly 5G modems or hotspots: dedicated wireless access devices, small enough to be mobile, that will connect to the 5G network and then connect to other devices over Wi‑Fi technology.
• Finally, there will be 5G fixed‑wireless access (FWA) devices, with antennas permanently mounted on buildings or in windows, providing a home or business with broadband in place of a wired connection. In the UK two operators may launch FWA services in
  2019 or 2020.

Will 5G impact 4G rollout?

5G spend may simply replace prior spend on 4G rollout. One study predicted that 5G might cause capex to jump from 13% to 22% of revenue for only a limited rollout. But as 2018’s field trials progressed, many operators in North America, Europe, and Japan re‑evaluated cost and releasing public guidance that capex intensity for 5G would be more or less flat with their 4G spending.

5G will be used to connect “less mobile” devices, mainly 5G modems or hotspots: that will connect to the 5G network and then connect to other devices over Wi‑Fi technology #DeloittePredicts
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As far as spectrum goes, early signs are that operators’ spectrum costs will be closer to the 4G experience than the 3G. Based on some early auctions, the prices for 5G spectrum, depending on the frequency band, are consistent with those for 4G spectrum: all auctions in the six countries in figure 3 have been for less than £0.16 MHz pop, and two were under a penny. In the UK the price for 5G spectrum is £0.13 MHz pop.

5G is the connectivity technology of the future – even if its adoption curve may be relatively shallow in the next 12 to 24 months. It will likely take years for 5G to replicate 4G’s marketplace dominance, in the same way, that it took several years for 4G to displace 3G.

Artificial Intelligence: From expert‑only to everywhere

“The trouble with AI, however, is that to date, many companies have lacked the expertise and resources to take full advantage of it.”

The key trends that Deloitte predicts for Artificial intelligence:

• In 2019, companies will accelerate their use of cloud-based artificial intelligence (AI) software and services.
• Among companies that adopt AI technology, 70% will obtain AI capabilities through cloud-based enterprise software, and 65% will create AI applications using cloud-based development services.
• By 2020, penetration rates of enterprise software with integrated AI and cloud-based AI platforms will reach an estimated 87% and 83%, respectively, among companies that use AI software. Cloud will drive more full-scale AI implementations, better return on investment (ROI) from AI and higher AI spending. Importantly, we will see the democratization of AI capabilities – and benefits – that had heretofore been the preserve only of early adopters.

What is AI?

AI consists of multiple technologies. At its foundation are machine learning and its more complex offspring, deep-learning neural networks. These technologies animate AI applications such as computer vision, natural language processing, and the ability to harness huge troves of data to make accurate predictions and to unearth hidden insights. The recent excitement around AI stems from advances in machine learning and deep-learning neural networks – and the myriad ways these technologies can help companies improve their operations, develop new offerings, and provide better customer service at a lower cost.

By 2020, penetration rates of enterprise software with integrated AI and cloud-based AI platforms will reach an estimated 87% and 83%, respectively #DeloittePredicts
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Why aren’t companies taking full advantage of AI?

The trouble with AI, however, is that to date, many companies have lacked the expertise and resources to take full advantage of it. Machine learning and deep learning typically require teams of AI experts, access to large data sets, and specialised infrastructure and processing power. Companies that can bring these assets to bear then need to find the right use cases for applying AI, create customised solutions, and scale them throughout the company. All of this requires a level of investment and sophistication that takes time to develop and is out of reach for many.

What are the benefits to investing in AI and which companies are taking full advantage?

For the reasons above, AI’s initial benefits have accrued mainly to pioneers with the required technical expertise, strong IT infrastructure, and deep pockets to acquire scarce and costly data science skills – most notably the global “tech giants.” They have the resources to engage in bidding wars for increasingly expensive AI talent. They have also invested billions in infrastructure, including massive data centres and specialised processors. For example:

• Google has designed its own AI-specific chips to accelerate machine learning in its data centres and on IoT devices.
• Amazon has used machine learning to drive recommendations for many years. The company is using deep learning to redesign business processes and to develop new product categories, such as its virtual assistant.
• China’s BATs – Baidu, Alibaba, and Tencent – are investing heavily in AI while expanding into areas previously dominated by US companies: chip design, virtual assistants, and autonomous vehicles.
• These tech giants are using AI to create billion-dollar services and to transform their operations. To develop their AI services, they’re following a familiar playbook: (1) find a solution to an internal challenge or opportunity; (2) perfect the solution at scale within the company; and (3) launch a service that quickly attracts mass adoption. Hence, we see Amazon, Google, Microsoft, and China’s BATs launching AI development platforms and stand-alone applications to the wider market based on their own experience using them.

China’s BATs – Baidu, Alibaba, and Tencent – are investing heavily in AI while expanding into areas previously dominated by US companies #DeloittePredicts
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Joining them are big enterprise software companies that are integrating AI capabilities into cloud-based enterprise software and bringing them to the mass market. Salesforce, for instance, integrated its AI-enabled business intelligence tool, Einstein, into its CRM software in September 2016; the company claims to deliver 1 billion predictions per day to users. SAP integrated AI into its cloud-based ERP system, S4/HANA, to support specific business processes such as sales, finance, procurement, and the supply chain. S4/HANA has around 8,000 enterprise users, and SAP is driving its adoption by announcing that the company will not support legacy SAP ERP systems past 2025.

A host of start-ups are also sprinting into this market with cloud-based development tools and applications. These start-ups include at least six AI “unicorns,” two of which are based in China. Some of these companies target a specific industry or use case. For example, Crowdstrike, a US-based AI unicorn, focuses on cybersecurity, while Benevolent.ai uses AI to improve drug discovery.

Amazon, Google, Microsoft, and China’s BATs are launching AI development platforms and stand-alone applications to the wider market based on their own experience using them #DeloittePredicts
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The upshot is that these innovators are making it easier for more companies to benefit from AI technology even if they lack top technical talent, access to huge datasets, and their own massive computing power. Through the cloud, they can access services that address these shortfalls – without having to make big upfront investments. In short, the cloud is democratising access to AI by giving companies the ability to use it now.

Source: Deloitte State of AI in the Enterprise, 2nd Edition, 2018
and Deloitte Flexible Consumption Models Study, 2018.

3D printing reaches the “plateau of productivity”

“There are likely to be multiple, specialised areas where 3D printing is highly competitive and suited to needs. One such example is bionic prosthetic limbs for children.”

The key trends that Deloitte predicts for 3D printing:

• 3D printing’s growth phase is likely to return in 2019. We predict that sales related to 3D printing by large public companies—including enterprise 3D printers, materials, and services—will surpass £2.1 billion in 2019 and £2.4 billion in 2020.
• This area of the industry is poised to grow at approximately 12.5% in each of those years, more than double its growth rate just a few years ago.

Why is 3D printing on the rise now?

3D printing, also known as additive manufacturing, was heavily hyped in its early days. In 2014 industry revenues of £1.6 billion were twice 2009 revenues. But industry revenue growth in 2015 and 2016 slowed to a mere 5% per year.

3D printing is experiencing the predicted inflection because companies in multiple industries are using it for more than just rapid prototyping. 3D printers today are capable of printing a greater variety of materials. There is more 3D printing in metal and less plastic printing. Plastic is fine for prototypes and certain final parts, but the trillion-dollar metal-parts fabrication market is the more important market for 3D printers to address.

Between 2017 and 2018, an industry survey showed that plastic was the most common material, but its share in 3D printing fell from 88% to 65% in one year, while the share of metal printing rose from 28% to 36% #DeloittePredicts
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Between 2017 and 2018, a 3D-printing industry survey showed that, although plastic was still the most common material, its share in 3D printing fell from 88% to 65% in just one year, while the share of metal printing rose from 28% to 36%. At that rate, it seems probable that metal will overtake plastics and represent more than half of all 3D printing as soon as 2020 or 2021.

Source: Deloitte analysis of public company filings and analyst estimates.

3D printers create objects faster than they used to, and they can print larger objects (build volume). Building a part one ultrathin layer at a time is an inherently slow process. But printers are getting faster. While print time does vary by the complexity of the shape being made, the quality of the print job, and/or the materials being used, the 3D printers on the market in 2019 are twice as fast, broadly speaking, compared to 2014 models.

A few years ago, a typical high-end metal printer could only build an object that was smaller than 10 x 10 x 10 centimetres, or a cubic litre. In 2019, multiple printers are available with a 30 x 30 x 30-centimetre volume, or nine cubic litres.

Print time varies by the complexity of the shape being made, the quality of the print job, and/or the materials being used, but the 3D printers on the market in 2019 are twice as fast as in 2014 #DeloittePredicts
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What will this mean for traditional manufacturing?

3D printers are unlikely to replace traditional manufacturing techniques, as in many cases 3D printing—is still more expensive per part than using traditional machines. 3D printers are also far slower taking hours per part instead of minutes (again excluding finishing and post-processing of various kinds).

There are parts that can only be made with 3D printing, as well as situations in which part volumes are so low that neither traditional nor subtractive manufacturing is optimal. These are the markets that are driving some of the growth that we predict for 3D printing.

3D printers are unlikely to replace traditional manufacturing techniques, as in many cases 3D printing—is still more expensive per part than using traditional machines #DeloittePredicts
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What’s next for 3D printing?

There are likely to be multiple, specialised areas where 3D printing is highly competitive and suited to needs. One such example is bionic prosthetic limbs for children. Providing these for children is highly costly, not just because of the base price (about £10,000), but also because of the need to replace these frequently as children grow. In the UK this has meant that few children under nine years old would be offered a bionic hand. Lower cost prosthetics are available. For example, a hook would cost about £600, but this often leads to the child being teased. A 3D-printed hand, offering equivalent functionality to a traditional bionic prosthetic, may cost a mere £20. Further, this hand could be readily customised, featuring the colours of a child’s favourite pop group or football team.

Tom Atkinson is a Digital Producer & Photographer at R3Digital and Reviews & Dept. Editor at Tech Trends. Connect on LinkedIn and follow him on Twitter @R3Digital

The post Deloitte’s Crystal Ball appeared first on Tech Trends.

By Maria Letizia Mariani, Market Group Leader Europe, Signify

Forward-thinking organisations are capitalising on this trend –transforming offices into structures for promoting employee productivity, wellbeing and competitive advantage.

With new levels of connectivity, and the rise of the Internet of Things, people expect to be online 24/7. They want to access what they need, when they need it, with services tailored to suit them. The same applies to offices where people expect more from advanced technology in the workplace.

Leading the charge in smart building technology is connected LED lighting. And while most people are familiar with the energy savings and lower maintenance costs afforded by switching to LED, few really appreciate the role lighting can play in increasing the operational efficiency of their business and comfort, productivity and wellbeing of their workers.

With new levels of connectivity, and the rise of the Internet of Things, people expect to be online 24/7
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Consultancy firm Deloitte has been at the forefront of adopting smart office technology. It’s Dutch headquarters, ‘The Edge’ in Amsterdam, is dubbed the most intelligent and sustainable office in the world. Its connected lighting system, from signify was instrumental in creating a more comfortable, productive and sustainable environment for its employees. Taking a leaf from the book of their Dutch colleagues, Deloitte Digital has now equipped its office in Milan with similar technology – becoming the first office in Italy to use our flagship Interact Office lighting system. In this instance, some 250 office luminaires are connected to and powered by the building’s computer cabling (Power over Ethernet network). This does two things. Firstly, it standardises wiring and eliminates the need for separate electrical wiring to power the lights. Secondly, it makes it easy for the lighting to be integrated into the building’s IT network.

Forward-thinking organisations are transforming offices into structures for promoting employee productivity, wellbeing and competitive advantage
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Of course, the company expects to reap 50-70% energy savings and lower maintenance costs by switching to new energy efficient smart lighting. The long-lasting connected lights automatically dim during the day depending on outside light levels and switch off when people leave meeting rooms. They also send data on their performance and energy use to the building’s facility manager. But energy savings are only a part of the Deloitte Digital story.

The long-lasting connected lights automatically dim during the day depending on outside light levels and switch off when people leave meeting rooms
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Much more than energy savings

Managers at the office in Milan, wanted their staff to have greater control of their workspace. They saw a role for lighting to support flexible working and the company’s new open plan office environment. They also wanted to gain valuable insights into how people use spaces in the office, so that they could improve operational efficiencies and reduce costs further.

Where the value of connected lighting really comes into its own as it offers building managers insights into how well their office space is utilised
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Of course, people are the biggest cost to any organisation. While figures vary depending on office size and type of organisation, average office expenditures (per square foot, per year) broadly equate to $3 for utilities, $30 for rent, and $300 for people cost. This means a 10% increase in energy efficiency will create a $0.30 saving per square foot while a 10% saving in people costs will generate a $30 saving per employee per square foot. And this is where the value of connected lighting really comes into its own as it offers building managers insights into how well their office space is utilised. By better utilising space, companies can make big savings.

Few people really appreciate the role lighting can play in increasing the operational efficiency of their business and comfort, productivity and wellbeing of their workers
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Occupancy sensors embedded in the office luminaires acquire data and the resulting information tells a facility manager if a room or space is occupied or not. Over time an accurate model depicting space utilisation is built. At The Edge, Deloitte’s office in Amsterdam, analysis of such data revealed that the office was under-utilised. Subsequently, the company added 1,000 more staff, realising an annual space utilisation saving of EUR 3.6 million!

Deloitte expects to reap 50-70% energy savings and lower maintenance costs by switching to new energy efficient smart lighting
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Workers are taking control

It’s not all about savings though. Deloitte Digital staff in Milan can personalize the lighting in their immediate space using their smart phones. This contributes to employee satisfaction – a proven factor in attracting and retaining top talent. Furthermore, employees can now adjust light levels to suit any given task, helping them to improve their productivity.

Deloitte Digital staff in Milan can personalize the lighting in their immediate space using their smart phones
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Finally, our Interact Office lighting system in Milan offers flexibility for the future. Software apps can be written to it using its APIs, making integration into platforms, such as room booking systems, quick and straight forward. Looking to the future, Deloitte and Signify share a similar vision – believing that lighting is a convenient backbone for truly smart offices. Offices that improve the lives of people at work and transform the way businesses operate.

Employees can now adjust light levels to suit any given task, helping them to improve their productivity
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Report by Deloitte shows that only 16% of executives believe their teams have the capabilities needed to deliver on their company’s digital strategy.

Despite a significant uptick in investment in emerging technologies in the past 12 months, UK executives lack confidence in their own digital skills. According to a survey recently published by Deloitte as part of its Digital Disruption Index, less than half (45 per cent) of executives are confident in their own digital skills and ability to lead their organisation in the digital economy, while just 16 per cent believe their talent pool has enough knowledge and expertise to deliver their digital strategy.

Despite a significant uptick in investment in emerging technologies in the past 12 months, UK executives lack confidence in their own digital skills
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The lack of confidence in digital leadership hasn’t stopped organisations from embracing new technologies
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One hundred and six executives responsible for digital technologies and ways of working from FTSE listed companies, large private companies and large UK public sector organisations participated in the survey. The combined market value of the 106 survey participants is £707.8 billion, which equates to approximately 27 per cent of the UK quoted equity market. This information, which was collected between February and March 2018, has been analysed in aggregate and forms the basis of this publication.

Confidence in digital skills is currently low, almost half (49 per cent) of executives plan to invest more than £10 million in digital technologies and ways of working by 2020. 35 per cent plan to invest more than £10 million in the 2018 alone. 38 per cent of executives who say their organisation will invest in three or more emerging technologies over the next two years say that they do not have a coherent strategy in place.

“The pace of technological change is accelerating, however in the rush to keep up many organisations are yet to develop a coherent strategy for investing in digital technologies. More efforts need to be made to align learning and development alongside strategy and investment,” Explains Oliver Vernon-Harcourt, partner at Deloitte and author of this year’s Digital Disruption Index. “End-to-end digital transformation is not just about advances in technology, but about changing the ways of doing business.”

Leap of faith in AI

The lack of confidence in digital leadership hasn’t stopped organisations from embracing new technologies. Two in five (41 per cent) businesses have invested in AI technology, up from one in five (22 per cent) who said they had in 2017. Overall, 10 per cent have already invested more than £5 million in AI technology, with 15 per cent planning to invest more than £5 million in the coming year.

Data scientists and analysts remain the most difficult to recruit and retain
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Despite significant investments having already been made in AI, less than one in four (23 per cent) say that their leadership team has a clear understanding of the technology and how it will impact their business.

Overall by 2020, 82 per cent of executives plan to invest in AI, while 70 per cent plan to invest in robotic and cognitive automation and 57 per cent in blockchain.

“Investment into AI has seen significant growth since 2017, with some organisations now moving into large-scale adoption. However, many leadership teams currently lack awareness of the technology and this could act as a significant barrier to the adoption and development of the technology. It also suggests a lack of preparedness among senior leadership for how AI will impact their workforce,” adds Vernon-Harcourt.

Urgent Need to address Digital skills gap

Only 12 per cent of leaders believe UK school leavers and graduates have the right digital skills, down from 20 per cent who said the same in 2017. Over three-quarters are experiencing challenges in recruiting employees with the relevant digital skills. Data scientists and analysts remain the most difficult roles to recruit and retain.

Despite significant investments having been made in AI, less than one in four say their leadership team has a clear understanding of the technology and how it will impact their business
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While executives continue to worry that not enough school-leavers and graduates have the right mix of digital skills, only 17 per cent believe that UK companies lead the way with digital.

“Digital is not just about technology. It is about what technology enables. It can fundamentally change how work gets done, how organisations interact with their customers and how decisions are made. To realise the potential of digital technologies and benefit from these, it is vital for businesses to join together in addressing the digital skills gap,” Vernon-Harcourt concludes.

For companies looking to get into Immersive technologies such as VR/AR/MR/XR our Virtual Reality Consultancy services offer guidance and support on how best to incorporate these into your brand strategy.

Alice Bonasio is a VR and Digital Transformation Consultant and Tech Trends’ Editor in Chief. She also regularly writes for Fast Company, Ars Technica, Quartz, Wired and others. Connect with her on LinkedIn and follow @alicebonasio on Twitter.

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Tech Trends report from Deloitte shows how technologies such as Mixed Reality are being adopted by industry. 

The Technology in the mid-market: Closing the gap report details the results of a survey of technology impact among private mid-size companies in the U.S. According to Deloitte, this mid-market is under-reported, but its size and relevance to the economy is significant– roughly 34% of the U.S. workforce and revenue totals $3.2 trillion, which equals it to the world’s 4^th largest economy.

Over half of respondents have ongoing or planned AR/ VR projects
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The survey results showed how companies are deploying emerging technologies and what benefits they can have for them in terms of growth, productivity, governance, recruiting and many other areas. It spans various emerging verticals and themes, including how robotics and MI are preventing mechanical failures and providing cost-savings in the construction industry, and how cloud is helping US biopharma reach clients across the globe.

Emerging technologies create new ways of engaging employees and interacting with customers
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Immersive Technologies on the Rise

More than half of the respondents report their companies have AR/ VR pilot projects in the works or already begun, while a third say they have already graduated to deployment stage. Two-thirds of respondents said their companies were experimenting, building, or had developed mature applications of mixed reality technology. Among specific sectors, energy firms are amongst the ones investing most heavily in such projects.

While virtual reality adoption is still maturing, the business gains are real
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Respondents say mixed-reality technologies are proving particularly useful in employee learning and operations-related tasks, with consumer products and financial services firms most likely to use virtual and augmented reality for training programs. Technology and consumer products firms, meanwhile, were most likely to apply virtual and augmented reality to tasks involving technicians, warehouse workers, or advanced machinery.

Two thirds of mid-sized companies are building Mixed Reality applications
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Firms that are using these technologies say growing numbers of customers see the value in such investments. David Anderson, SVP and CIO at the global engineering firm CH2M, says clients who are developing “smart cities” recognize how machine intelligence can revolutionize traffic and transportation management.

“The P3 (private, public partnership) environment understands it,” Anderson says. “Economic development officials are envisioning the art of the possible during the project definition phase and understand the potential use of sensor technologies to forecast traffic patterns, gauge business activity, and plan for consumer flows. It’s a matter of recognizing what technology.”

We asked Deloitte’s Anthony Stephan what growth – both in terms of interest and investment – they had observed in the past year regarding the adoption of immersive technologies such as AR/VR/MR in business. He told us that the survey data proves that companies in this market segment see the return on investment with emerging technologies and the excitement is building for mixed reality in the workplace.

“While virtual reality adoption is still maturing, the business gains are, in fact, real. The overall investment in tech for mid-market and private companies is up, and continuing to rise year over year, with 69 percent of companies report a higher tech spend this year from 2016.”

Stephan, who is principal, Deloitte Consulting LLP and U.S. technology strategy, adds that there are many use cases to explore with mixed reality in business, and a big win is helping employees with continuous learning and growth in their job.

“Our data shows that 53 percent of mid-market and private companies surveyed place employee training, education and learning at the top of the list for using mixed reality. Looking ahead, we can see this type of emerging technology creating a new way of engaging employees and interacting with customers.”

Stephan concludes that there is no evidence of investments in emerging technology slowing down. In fact, their findings suggest that mid-market companies are spending at a higher rate on average, on technology (mid-market companies spend on average 3.9 percent versus companies over a billion dollars are spending 3.1 percent)

“For mixed reality, 53 percent of mid-market and private companies surveyed already have AR/VR pilot projects, and 67 percent are building, experimenting or have already developed mature applications. We expect even broader adoption over the next several years.”

Mixed Reality is proving particularly useful in employee learning and operations-related tasks
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Key findings of the report show that:

• Businesses are increasingly focused on using breakthrough technologies to attract customers and understand their behavior.
• More than 50% of mid-sized companies have AR/VR pilot projects in the works
• While Analytics and cloud solutions remain top priorities in the IT agenda, most companies have started putting other breakthrough technologies such as blockchain and mixed reality on their radar.
• 2/3 of mid-sized companies are building mature applications of mixed reality
• Organizations are increasingly seeing value in aligning their business and technology requirements more closely.
• C-suite dynamics are shifting, bringing much closer collaboration between IT and business leaders
• Respondents recognize that a wide spectrum of technology-related trends are yielding productivity gains, and are increasing their IT budgets to implement them
• 54% of mid-sized companies are using cognitive interpretation to turn images and text into data they can use
• Companies have become much more comfortable maintaining security around cloud integration and mobility
• Fifty-two percent of respondents replied that they’re using mixed reality for employee training, education and learning
• 41% of respondents are using cloud-based applications to enable global expansion – up from 34% last year, and 51% are leveraging cloud to address growth needs.

Growing numbers of customers see the value in such emerging technology investments
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Tech Trends’  Virtual Reality Consultancy services offers support for companies looking to get a foothold in the growing Mixed Reality spectrum and enhance their brand strategy with immersive technologies. 

Alice Bonasio is a VR Consultant and Tech Trends’ Editor in Chief. She also regularly writes for Fast Company, Ars Technica, Quartz, Wired and others. Connect with her on LinkedIn and follow @alicebonasio and @techtrends_tech on Twitter.

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