Virtual Reality Description

In recent decades, digital transformation has turned out to be an essential topic in strategic information systems studies. Digital transformation entails the profound alterations occurring in the industries and societies via the utilization of digital technologies (De Regt et al., 2024). At an organizational level, firms have to find ways of innovating with such technologies through devising strategies embracing the effects of digital transformation and drive enhance operational performance. Virtual reality is among the primary technologies enabling digital transformation.

Virtual Reality offers users real-time, interactive, and immersive multisensory experiences located in, an artificially induced, responsive 3D computer-generated virtual world. The virtual world is normally paired with output and input devices to enhance the external experience of the visual domain, like headphones, handheld controllers, or treadmills. Technology giants (like Google, Apple, and Facebook) and other minor firms have made substantial investments in virtual reality. The virtue reality market has dramatically grown with global revenue forecasts exceeding $40 billion by 2024 (De Regt et al., 2024). As virtual reality matures, it is more likely to become the primary tool for organizational operations in business-to-business markets and business-to-consumer markets. VR value chain entails six major processes that make two categories: content activities and primary activities.

Content Activities

This segment is made up of three primary processes: content capture and creation, content processing and management, and content marketing. Content capturing and creation entails the digital production of VR resources by utilizing animation and programming techniques to record real-life video or photo content. Content processing and management facilitates the conversion of raw 360-degree footage and digital content into applicable formats (De Regt et al., 2024). Organizations add value through post-production editing and reconfiguration of VR content, Following the performed tasks, services, and utilized technological tools content management and processing could be subdivided into content rendering,  content editing and stitching, content compression, and content modeling all related to visual content. Content marketing allows firms to offer users access through streaming or downloading services. The firm's primary obligations include hosting, marketing, selling, and distributing VR content via different platforms or portals.

Support Activities

   The support activities of VR entail three processes: data support, interfaces, and systems support and delivery support. Data support adds value to firms by offering the processing IT infrastructure, power, and necessary networks to distribute VR content to consumers (De Regt et al., 2024). The delivery support processes allow user interaction with digital content through appliances like supporting hardware or computing platforms. The Systems and interfaces support processes convert VR's technological components that enhance interaction with digital content. VR systems could be broadly categorized as either immersive or non-immersive. Nonimmersive systems of6en represent low-level VR categories while immersive systems foster the stereoscopic view and mainly represent VR’s highest category.

Implications of VR

 VR offers organizations/users access to enriched information and data. The ability to perceive 3D content in a capturing 3D environment is a robust tool for offering users comprehension of complex scenarios and issues. VR also allows various information layers of the same content to appear to the users. Virtual reality has also enabled immersive training and workflows. VR offers ideal platforms for scaling up numerous training activities through the direct manipulation of various digital assets from any geographical region (Torro et al., 2021). VR also improvises synergies with other upcoming technologies and organizational informational systems.  Considering VR’s ability to enrich workflows and information, firms could use it to integrate existing intelligent systems which brings about interesting synergies.

Vendors

The key major players in the VR market include Meta, Pico, Sony, HTC, and Xreal. These firms have assimilated key growth strategies like partnerships, agreements, joint ventures, contracts, and launching new products to expand their share in the VR market. Sony (Japan) sets a low price for its headsets compared to its competitors which offer it economies of scale competitive advantage. The firm has a market share of 32%(Stecuła, 2022). HTC is among the top firms with significant investments in VR. The firm partners with Valve US which is essential for applications in education, automotive, retail, and health care. HTC has a market share of 3%.

  Meta is the leading VR firm across the globe with a market share of 49% in the 3^rd quarter of 2023. The company offers immersive VR experiences through integrating advanced display technology, intuitive hand controllers, and 6Dof tracking. These traits ensure users have freedom of movement, high-resolution visuals, and realistic interactions within different virtual platforms or spaces. Commencing as a Startup in 2015, Pico has grown to innovate and launch VR headsets for the consumer market (Stecuła, 2022). The firm targeted Chinese consumers and has eventually attained a global market share in the VR market. The firm is among the top three VR headset manufacturers across the globe which led to its acquisition by Byte Dance. The firm has a market share of 9%, making it the third leading firm in the VR market.

Source: xr-ar-vr-headsets-quarterly-model-tracker-q1-2020-q3-2023/

Users

     The entertainment industry is among the most impacted by virtual reality. The integration of the emotional entertainment industry and VR technologies has led to the creation of products with unique commercial potential. Combining virtual reality and entertainment has led to the stimulation of growth and luring more consumers. Illustratively, some of the leading companies deal in entertainment (Sony and PICO). Through the creation of virtual reality headphones, consumers have significantly led to the growth of these companies to a global level. Studies have reported an increase in the popularity of virtual reality entertainment through the increase in installations in the United Kingdom, Denmark, USA, France, South Korea, and Canada. These Installations range from VR roller coasters, VR arcades, cinema, and motion stimulators (Burt & Louw, 2019).

            Following a representative study from Germany, concerts (39%), watching movies (59%), and virtual vacations (71%) are among the popular activities engaged in by VR users. Nonetheless, the most essential application field of virtual reality is gaming, which is also a major form of entertainment (Reer et al., 2022). Notably, 77% of German VR users indulge in gaming and also makeup 43% of virtual reality's universal income. The gaming and entertainment industry perceives potential for applying VR technologies in gaming and entertainment and expects a megatrend in this scenario.

            Entertainment and gaming are leisure activities global. Video games and computers are mainly utilized for recreational purposes and numerous studies have reported on the positive effects. Virtual reality has been shown to enhance the positive aspects of gaming and entertainment. As a result, more people have turned to VR companies for entertainment and gaming experiences. In entertainment, VR offers an immersive and realistic experience that which reappraisal, cognitive distancing, and impact regulation could be threatened (Reer et al., 2022). However, the positive effects of VR entertainment surpass the adverse impacts as it leads to happiness, satisfaction, enjoyment, and mind relaxation. Based on the implications of VR in gaming and entertainment, it is possible to understand why the top leading firms mainly in VR are from the industries.

Value Chain

            Value reality has become an essential tool in the entertainment industry. Through VR technology, game designers and filmmakers can develop interactive and immersive environments that enable users to experience events and stories uniquely. VR also provides a new manner of experiencing live concerts, sports, and events (Abdelmaged, 2021). It creates new opportunities for brand experiences and advertising, enabling firms to create an engaging and special customer experience.

            In film production, VR has significantly impacted the way films are produced. It allows filmmakers to establish great immersive experiences for their audiences. VR could be utilized in preproduction for choreography and planning, in production for filming 360-degree footage, and in post-production for enhancing editing and visual effects (Wohlgenannt et al., 2020). Utilizing VR also enables filmmakers to define and test their concepts and shots ensuring that the final product is priced and clear as they had envisioned. VR also allows the audience to interact with the story and characters which enables them to enhance their relationship and get an emotional attachment to the characters heightening the entire film experience.

            In the gaming industry, virtual reality offers players a higher interactive and immersive experience. It enables gamers to venture into virtual environments and interact with the virtual world. Such interactions facilitate immersion into the game which was initially possible with traditional gaming.  Virtual reality enhances accessibility to the game making it possible for individuals with different forms of disability to take part in the entertainment activity (Spence, 2021). It has also offered a new type of entertainment that allows players to revel in different environments and activities in the virtual scenario. It also enables gamers to utilize their hands and indulge in other physical movements which enhance interaction with the game. As a result, VR gamers are more engaged and interactive when playing which has been associated with various psychological and mental benefits for the players.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

           

 

References

Abdelmaged, M. A. M. (2021). Implementation of virtual reality in healthcare, entertainment,       tourism, education, and retail sectors.

Burt, M., & Louw, C. (2019). Virtual reality enhanced roller coasters and the future of      entertainment–audience expectations. World Leisure Journal, 61(3), 183-199.

De Regt, A., Barnes, S. J., & Plangger, K. (2020). The virtual reality value chain. Business            Horizons, 63(6), 737-748.

Farshid, M., Paschen, J., Eriksson, T., & Kietzmann, J. (2018). Go boldly!: Explore augmented     reality (AR), virtual reality (VR), and mixed reality (MR) for business. Business Horizons, 61(5), 657-663.

Matthews, D. (2018). Virtual-reality applications give science a newdimension. Nature, 557,         127-128.

Reer, F., Wehden, L. O., Janzik, R., Tang, W. Y., & Quandt, T. (2022). Virtual reality       technology and game enjoyment: The contributions of natural mapping and need     satisfaction. Computers in Human Behavior, 132, 107242.

Spence, C. (2021). Scenting Entertainment: Virtual Reality Storytelling, Theme Park Rides,          Gambling, and Video-Gaming. i-Perception, 12(4), 20416695211034538.

Stecuła, K. (2022). Virtual Reality Applications Market Analysis—On the Example of Steam       Digital Platform. In Informatics (Vol. 9, No. 4, p. 100). MDPI.

Torro, O., Jalo, H., & Pirkkalainen, H. (2021). Six reasons why virtual reality is a game-     changing computing and communication platform for organizations. Communications of            the ACM, 64(10), 48-55.

Wohlgenannt, I., Simons, A., & Stieglitz, S. (2020). Virtual reality. Business & Information           Systems Engineering, 62, 455-461.