  {"id":5899,"date":"2017-04-28T08:25:16","date_gmt":"2017-04-28T12:25:16","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/upskill-re-training-todays-workforce-with-ar\/"},"modified":"2017-04-28T08:27:12","modified_gmt":"2017-04-28T12:27:12","slug":"upskill-re-training-todays-workforce-with-ar","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/upskill-re-training-todays-workforce-with-ar\/","title":{"rendered":"Upskill: Re-training today\u2019s workforce with AR"},"content":{"rendered":"<p><strong><u>Summary<\/u><\/strong><\/p>\n<p>The team at Upskill is reimagining the world for 46MM deskless employees in the US<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>, for whom AR improves productivity by allowing daily tasks to be conducted truly hands free. \u00a0Field service work and manufacturing assembly are being transformed as workers use AR to superimpose customer data and assembly instructions within their field of vision. \u00a0Upskill creates value for 1) enterprises that rely on deskless labor, 2) these enterprise\u2019s end-customers, and 3) smart glass hardware complementers.<\/p>\n<p>By driving the cost of AR app development and the total cost of ownership of smart devices down, Upskill is poised to change the axis upon which their enterprise clients compete, away from a world of commoditization pressure to one of greater customization and value-add services. \u00a0While Upskill\u2019s SaaS revenue model allows it to continue to profit as client success grows, it\u2019s unclear the extent to which hardware vendors will benefit as greater value is ultimately placed on software insights rather than hardware, increasing the pace of commoditization.<\/p>\n<p><em>Amidst growing competition, Upskill must prove a clear ROI. <\/em>\u00a0This can be achieved <em>through data-driven insights<\/em>, which require honing operating model capabilities in comprehensive data collection and algorithmic power.\u00a0 This calls for <em>open API\u2019s<\/em> to facilitate Upskill compatibility with a spectrum of data sources and perhaps even <em>subsidization of hardware<\/em> and <em>new AR training content <\/em>to promote Upskill software uptake.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><u>Background<\/u><\/strong><\/p>\n<p>With clients like Boeing and GE, Upskill\u2019s \u2018Skylight\u2019 software can be deployed on a range of smart glass hardware for specific use cases.\u00a0 Specifically, these include 1) field service assistance with AR-superimposed Salesforce data, 2) superimposed manufacturing instructions with voice-free commands, and 3) referenceable inventory handling data on customer demand and inventory levels.\u00a0 Critical to this is Upskill\u2019s integration of data from clients\u2019 existing systems (ERP, CRM, etc) to provide a comprehensive view of the customer.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong><u>Value creation<\/u><\/strong><\/p>\n<p>Via its operating model competencies of software expertise, Upskill creates value for enterprises, hardware vendors, and consumers.<\/p>\n<ul>\n<li><strong>For enterprises<\/strong>, Upskill provides software outside typical core competencies to improve workforce efficiency, resulting in time savings, cost reduction, better quality, and higher utilization of labor that is now free to do other tasks. Its Boeing partnership allowed workers to view an instruction manual through the built-in viewfinder on their smart glasses<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a>, leading to productivity cost savings of 25%.<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a>\u00a0 In dollar terms, Upskill estimates a manufacturing plant will see a $25MM ROI annually upon implementing their software on smart glasses for 1000 of its workers.<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5900\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/04\/WI-300x153.png\" alt=\"\" width=\"563\" height=\"277\" \/><\/p>\n<p><a href=\"#_ftn5\" name=\"_ftnref5\"><\/a><\/p>\n<ul>\n<li><strong>For smart glass vendors, <\/strong>Upskill reduces friction in customer uptake by providing software solutions for specific use cases. Their software ultimately collects valuable data on customer hardware interactions, and could eventual inform product development for these vendors.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>For consumers<\/strong> &#8212; enterprise\u2019s end customers &#8212; Upskill creates value by improving quality and personalization in service.<\/li>\n<\/ul>\n<p>Upskill <strong>captures value<\/strong> by charging clients for software usage.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><u>Direct and indirect network effects<\/u>:<\/strong><\/p>\n<p><strong>\u00a0<\/strong>The more enterprises use Upskill, the better the software gets, increasing value for enterprises and their customers.\u00a0 This is further bolstered by a limited incentive to <strong>multihome <\/strong>as enterprises stand to capture the greatest value by aggregating their data and derivative insights in one place.<\/p>\n<p><em>From a hardware vendor\u2019s perspective, however, the story is less straightforward<\/em>.\u00a0 While supporting more hardware vendors allows Upskill to better meet the various preferences of enterprises, this value is not shared with the hardware vendors themselves.\u00a0 As Upskill creates more value through its software, greater priority is placed on the data and insights collected rather than the associated hardware, potentially accelerating hardware commoditization.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><u>Future growth<\/u><\/strong><\/p>\n<p><strong>\u00a0<\/strong>Upskill faces no shortage of competitors, from startups like Wearable Intelligence to large incumbents like Raytheon and Microsoft, though their focus has primarily been on military applications. <a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> \u00a0Upskill\u2019s network effects endow it with an unfair advantage that will be deepened by a clear demonstration of ROI.<\/p>\n<p><em>To differentiate<\/em>, <em>Upskill will need to offer quality insights on how to improve processes and labor.<\/em>\u00a0 Key competencies will be needed with <em>data collection<\/em> and <em>model-building<\/em>. \u00a0Success here looks less like broadening their set of use cases, and instead, securing a large enough data set to generate deep insights in existing applications.\u00a0 Doing so quickly and scalably requires <em>opening up their APIs<\/em> broadly to enable app development across an ecosystem of data sources (SAP, etc) and, ultimately, unlocking greater value. \u00a0This value is shared here with these data sources, thus incentivizing development. \u00a0<strong>Furthermore, imagine how this could be harnessed to create new worker training content in VR.<\/strong> \u00a0Eventually, Upskill may even <em>subsidize hardware costs<\/em> to encourage customer conversion.<\/p>\n<p><em>Key considerations<\/em> going forward involve balancing how much this open API system cannibalizes Upskill\u2019s business versus the alternative of building in-house. \u00a0Prioritization of software maintenance by vendor and use case will also be an ongoing challenge.<\/p>\n<p>Writ large, thanks to Upskill, manufacturing enterprises that have been adding less value to the world economy are now equipped to change their commoditized business models and unlock new\u00a0value-added services.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Sources:<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> https:\/\/venturebeat.com\/2015\/05\/24\/smart-glasses-begin-to-take-hold-in-the-enterprise\/<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> https:\/\/venturebeat.com\/2015\/05\/24\/smart-glasses-begin-to-take-hold-in-the-enterprise\/<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> https:\/\/upskill.io\/resources\/blog\/new-funding-from-boeing-and-ge-how-upskill-will-scale\/<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> https:\/\/upskill.io\/resources\/blog\/new-funding-from-boeing-and-ge-how-upskill-will-scale\/<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> https:\/\/venturebeat.com\/2015\/05\/24\/smart-glasses-begin-to-take-hold-in-the-enterprise\/<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> https:\/\/techcrunch.com\/2014\/04\/22\/apx-labs-gets-10m-from-nea-for-enterprise-friendly-wearables\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By driving the cost of AR app development and the total cost of ownership of smart devices down, Upskill is poised to change the axis upon which their enterprise clients compete.<\/p>\n","protected":false},"author":972,"featured_media":5900,"comment_status":"open","ping_status":"closed","template":"","categories":[1447,1503],"class_list":["post-5899","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-ar","category-upskill"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/what-is-the-future-of-vr\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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