The Best of SXSW 2016

BEST OF S SW 2016 S X S W • 2 0 1 6 • PAG E

The unique combination of music, film and interactive that is South by Southwest (SXSW) generates a kind of energy that sets the stage for connected thinking. SXSW 2016 has lived up to that promise – a world of concepts collided in Austin. Each year’s sessions represent the zeitgeist of the industry. What exactly are we thinking about? What’s at the heart of ‘interactive’ and how is it playing across different industries? To help us lead our clients to what’s next, we went along to SXSW 2016 to bring you our thoughts and highlights.

T h e s t a r t o f S X S W I n t e r a c t i ve 2 0 1 6 w a s m a r k e d by t h e a r r i v a l o f P r e s i d e n t O b a m a i n A u s t i n , Te x a s . T h e s i g n i f i c a n c e o f t h e P O T U S d e l i ve r i n g a n o p e n i n g - d a y k e y n o t e says a lot about the status that SXSW I n t e r a c t i ve h a s a c h i e ve d i n i t s 2 3 ye a r s . I t a l s o m a r k s t h e d e g r e e t o w h i c h t e c h n o l o g y, m a r k e t i n g a n d s o c i a l g o o d h a ve c o n ve r g e d .

T h i s w a s t o b e s e e n a t S X S W, fo r s u r e , b u t is also increasingly evident in the debates we a r e h a v i n g a r o u n d c r y p t o l o g y, r o b o t i c s , artificial intelligence and VR/AR. The theme was neatly captured at SXSW

by M a x L e v c h i n’s d e f i n i t i o n o f ‘ b e n e f i c e n c e’ .

L e vc h i n , t h e fo r m e r C T O o f Pa y Pa l , s e r i a l i n ve s t o r a n d c u r r e n t l y C E O o f d i g i t a l l o a n s p r ov i d e r A f f i r m , r e fe r r e d t o b e n e f i c e n c e a s o n e o f h i s ‘ U n s t o p p a b l e Tr e n d s T h a t A r e C h a n g i n g t h e Wo r l d ’ . W h e r e l e g a c y b u s i n e s s e s f a i l t o p u t c u s t o m e r s’ i n t e r e s t s a h e a d o f t h e i r ow n , t e c h n o l o g y i n n ov a t o r s w i l l i d e n t i f y a n d fill those gaps, and consumer expectations of the service and experience from digital businesses continue to rise – in a virtuous cycle of beneficence.

R e t u r n i n g t o P O T U S , O b a m a’s a p p e a l t o t h e SXSW delegation was to lead 21st century civic e n g a g e m e n t . “ I t ’s e a s i e r t o o r d e r a p i z z a t h a n t o d o yo u r m o s t i m p o r t a n t c i v i c d u t y a n d vo t e , ” said Obama. “The reason I’m here is to recruit a l l o f yo u . We c a n s t a r t c o m i n g u p w i t h n e w p l a t fo r m s , n e w i d e a s a c r o s s d i s c i p l i n e s a n d a c r o s s s k i l l s e t s t o s o l ve s o m e o f t h e b i g p r o b l e m s we’ r e f a c i n g t o d a y. ”

The hottest topics at SXSW Interactive 2016 were virtual reality, mobile apps, robots, 3D technology and AI. Sysomos, a social media analytics company, analyzed social media chatter during the first few days of SXSWi. The most active themes, measured in terms of Twitter impressions, were:

L e vc h i n’s f u r t h e r a d v i c e fo r i n n ov a t o r s w a s t o p u r s u e o p p o r t u n i t i e s c r e a t e d by ‘ r e g u l a t o r y a r b i t r a g e’ . T h i s c o n s t i t u t e s b o t h t h e a v a i l a b l e g ove r n m e n t f u n d i n g fo r r e n e w a b l e e n e r g y o r e n v i r o n m e n t a l t r a n s p o r t a t i o n , b u t a l s o t h e i n a d ve r t e n t o p p o r t u n i t i e s c r e a t e d by c o m p l i a n c e l e g i s l a t i o n s u c h a s t h e A f fo r d a b l e C a r e A c t , w h i c h i n t u r n d r i ve s i n n ov a t i o n i n m e d i c a l t e c h n o l o g y a c r o s s we a r a b l e s a n d I o T.

S X S W • 2 0 1 6 • PAG E 1

Virtual Reality (Vr) – 102.4 MILLION Mobile Apps – 32.6 million Robotics – 30 million 3D – 8.8 million

ENCRYPTION A THIN LINE OF DEFENCE C r y p t o l o g y, p r i v a c y a n d s e c u r i t y ( o f b o t h t h e p e r s o n a l a n d n a t i o n a l v a r i e t i e s ) h a ve m o r e i n common than what sets them apart. They are a l l p a r t o f a f a m i l y, a l b e i t a t t h e m o m e n t a particularly quarrelsome one.

E d w a r d S n owd e n b l e w t h e l i d o f f m a s s s u r ve i l l a n c e i n 2 0 1 3 , a n d h a d S X S W a b u z z w h e n h e a d d r e s s e d t h e c o n fe r e n c e r e m o t e l y t h e fo l l o w i n g ye a r . I n 2 0 1 6 , t h e c o n ve r s a t i o n h a s m ove d o n t o t h e i s s u e o f e n c r y p t i o n a n d w h e t h e r A p p l e’s r e s o l u t e stance against FBI legal demands to create a “backdoor” to access iPhones is right or wrong. Or both. @wesmtthws

We don’t know how to build secure and robust systems. We have two tools that work – making systems as simple and as small as possible to limit the attack surface, and crypto, which makes it possible to reduce the number of elements in a system that you can trust.

They are all we’ve got.

-Matt Blaze, University Of Pennsylvania

While President Obama tried to tread the m i d d l e g r o u n d b e t we e n c i v i l l i b e r t i e s a n d m a k i n g ‘ c o n c e s s i o n s’ o n p e r s o n a l p r i v a c y, warning against taking an ‘absolutist’ position, elsewhere at SXSW the debate was c o n s c i o u s l y p o l a r i z e d . I n ‘ C r y p t ow a r s 2 . 0 : S i l i c o n Va l l e y v s Wa s h i n g t o n’ , a p a n e l s e s s i o n i n c l u d i n g fo r m e r G e n e r a l C o u n s e l fo r t h e National Security Agency Stewart Baker, t h e c l u e t o w h e r e t h e d e b a t e i s a t i s ve r y m u c h i n t h e t i t l e . A s g ove r n m e n t u s e s e m o t i ve language and nightmarish scenarios around t e r r o r i s m a n d p a e d o p h i l i a t o fo r w a r d t h e a r g u m e n t fo r a c c e s s , t h e t e c h c o m m u n i t y recognizes that cryptology is not robust enough t o a l l ow t h e we a k e n i n g o f i t – a n d t h a t , contrary to intent, opening the door to data risks letting in wrongdoers.

S X S W • 2 0 1 6 • PAG E 2

I n t h e c o m m e r c i a l wo r l d , o n e i m p l i c a t i o n o f a n y r o l l b a c k i n O S - l e ve l e n c r y p t i o n i s w h e t h e r i t wo u l d p l a c e n e w d e m a n d s o n b u s i nesses to tighten up their own security and p r i v a c y s t a n d a r d s . A n u n a n s we r e d q u e s t i o n i s w h e t h e r t h e c o n s u m e r h a s a vo i c e i n t h i s a n d w h a t t h a t vo i c e wo u l d s a y w i t h r e g a r d t o t h e concessions people are prepared to make as a t r a d e - o f f fo r n a t i o n a l a n d p e r s o n a l p r o t e c t i o n , o r p e r c e i ve d v a l u e d e l i ve r e d .

I n h i s s e s s i o n ‘ 1 2 I n e v i t a b l e Te c h Fo r c e s T h a t Wi l l S h a p e O u r F u t u r e’ , a u t h o r a n d Wi r e d fo u n d i n g e d i t o r K e v i n K e l l y o b s e r ve d t h a t “anything that can be tracked, will be tracked” a n d a r g u e d t h e c a s e fo r ‘ c o - ve i l l e n c e’ – a k i n d o f s y m m e t r y w h e r e “ yo u k n ow w h a t t h e y k n ow about you, can correct it and benefit from it”.

Silicon Valley’s decision on privacy is a new form of Imperialism. Apple are saying yes, you have a warrant. Screw your warrant.

@heliane_es

S X S W • 2 0 1 6 • PAG E 3

– Stewart Baker, former GeneralCounsel at the NSA

Kevin Kelly, author and founding executive editor of Wired, was at SXSW to lift the lid on ‘12 inevitable tech forces that will shape our future’. Here, in extreme summary, are his top three. Asked by an audience member whether he could share the other nine, Kelly was unequivocal – “No”. His book ‘The Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future’ goes on sale in June.

S X S W • 2 0 1 6 • PAG E 4

HEALTH & MEDTECH MedTech today keeps the doctor away

The use of data to determine and predict h e a l t h a n d p e r fo r m a n c e w a s a t t h e h e a r t o f t h e s e s s i o n o n ‘ T h e F u t u r e o f M e d i c i n e’ , i n w h i c h D a n i e l K r a f t o f S i n g u l a r i t y U n i ve r s i t y / E x p o n e n t i a l M e d i c i n e s h owe d t h e e x t e n t t o w h i c h we w i l l l e ve r a g e t e c h n o l o g y a n d A I t o minimize direct physician interaction. When i l l , yo u w i l l s u b m i t yo u r s y m p t o m s t o a f i e l d o f A I s t o c o l l e c t i ve l y d i a g n o s e yo u r p r o b l e m .

If they cannot agree upon a solution, the patient will then be routed to a doctor to r e s o l ve t h e i s s u e .

It is becoming critical that, as individuals, we m ov e f r o m b e i n g ‘ o r g a n a n d b l o o d d o n o r s’ t o b e i n g ‘ d a t a d o n o r s’ . C r owd s o u r c i n g h e a l t h d a t a i n t h e f u t u r e w i l l c h a n g e t h e w a y we understand health and the treatment of diseases. Controlled studies provide data on h u n d r e d s o f i n d i v i d u a l s , b u t c r owd s o u r c i n g this data could generate millions of sources.

We a r e u s i n g o n l y 5 % o f t h e d a t a t h a t w e will use in the future. It seems that big data h a s n’ t h a d i t s b i g b a n g j u s t ye t .

a n d i m p r ov i n g p e o p l e’s h e a l t h .

D a v i d R h e w M D , S a m s u n g ’s H e a d o f H e a l t h c a r e , a r g u e d fo r c o n n e c t e d d e v i c e s s u c h a s t h e p r ove r b i a l s m a r t f r i d g e , b u t i n t h i s c a s e i n t h e c o n t e x t o f t r a c k i n g t h e vo l u m e o f fo o d a n d w a t e r c o n s u m e d , ove r l a i d by s l e e p a n d h e a l t h m e t r i c s a s we l l a s o u t d o o r t e m p e r a t u r e . “ M u l t i p l e d a t a p o i n t s a l l ow s m a r t i n s i g h t s a n d t h e o p p o r t u n i t y t o b e c o m e m o r e p r o a c t i ve o n p a t i e n t a c t i o n s a n d b e h a v i o r s t o p r e ve n t t h i n g s from happening.”

Angela Mazzi of GBBN Architects posed the q u e s t i o n o f h ow w e c a n g e n e r a t e we l l n e s s a t e ve r y p o i n t , t h r o u g h b r i c k s a n d m o r t a r s s u p p o r t e d by t e c h . “ We a r e h a r d w i r e d t o r e s p o n d t o e n v i r o n m e n t . Fo r c h i l d r e n w i t h ADHD, being in nature helps our ability to m a n a g e b e h a v i o r , s o we c a n d e s i g n h o m e s a c c o r d i n g l y. Fo r a p a t i e n t w i t h d i a b e t e s , i t i s m o r e m a n a g e a b l e t o m a k e l i fe s t y l e c h a n g e s i f , t h r o u g h t e c h n o l o g y, we c a n p l a c e h i m / h e r i n a n a t m o s p h e r i c c a fé i n Pa r i s , o r s h a r e r e c i p e s t o p r o m o t e c o o k i n g a n d e a t i n g h e a l t h i l y. ”

I n t h e s e s s i o n ‘ C o n s u m e r R e p o r t s : W h a t ’s O u r H e a l t h D a t a Wo r t h ? ’ , we l e a r n e d t h a t w h e n p e o p l e a r e i l l t h e y w a n t t h e d a t a t o f l ow, a n d a t t i t u d e s t ow a r d d a t a a n d p r i v a c y r a p i d l y s h i f t . T h e a l t r u i s t i c v i e w, i n w h i c h yo u r d a t a c a n b e u s e d t o h e l p o t h e r p e o p l e , i s ve r y p owe r f u l – 9 , 5 0 0 o u t o f 1 2 , 0 0 0 p a t i e n t s d i a g n o s e d w i t h Pa r k i n s o n’s D i s e a s e o p e n l y a g r e e d t o s h a r e t h e i r d a t a fo r research. ‘ H o m e S we e t H o m e : T h e H e a l t h H u b o f t h e F u t u r e’ w a s a r a n g i n g d i s c u s s i o n b e t we e n doctors, technologist and an architect, which envisaged the role of the home in measuring

S X S W • 2 0 1 6 • PAG E 5

@merekinsman

MESSAGING CONVERSATIONAL UI Messaging: A Command Line for Brands

A couple of decades ago, text and the command line were the only way you could interact with a computer. Command lines were hard because they forced people to understand code to accomplish the things we now do through the graphical user interface: dragging, clicking and such.

The continued use of text messaging and the explosion of new messaging apps – a command line of sorts – is becoming a d o m i n a n t w a y t o i n t e r a c t . S o m e s t a t s t o fo c u s the mind: 257 billion text messages are sent p e r d a y a n d , by 2 0 2 0 , s m a r t p h o n e s w i l l o f fe r I n t e r n e t a c c e s s t o fo u r b i l l i o n p e o p l e .

In a couple of SXSW sessions – ‘The Next Multibillion Opp: Marketing in Messaging’ and ‘Get the Message! The Rise o f C o n ve r s a t i o n a l U I ’ – i t w a s n o t e d t h a t t h a t m e s s a g i n g i s p owe r i n g m o r e a n d m o r e i n t e r a c t i o n s b e t we e n b r a n d s a n d c o n s u m e r s a n d b e c o m i n g t h e e n t r y p o i n t fo r d i g i t a l e x p e r i e n c e s . A c r o s s t h e wo r l d , m e s s a g i n g apps are evolving into the next central communications, media and commerce hubs.

We a r e g o i n g t o s e e m o r e o f t h e s e t y p e s o f s e r v i c e s a d o p t e d by o t h e r s o c i a l m e s s a g i n g p l a t fo r m s – fo r e x a m p l e , b o o k i n g a n d p a y i n g fo r a n U b e r r i d e t h r o u g h Fa c e b o o k w i t h o u t i n s t a l l i n g t h e U b e r a p p . B e yo n d t h e m o r e we l l - k n ow n e x a m p l e s o f We C h a t , A m a z o n E c h o a n d S i r i , U b e r ’s D e ve l o p e r E x p e r i e n c e L e a d a n d SXSW panelist Chris Messina has produced a g r ow i n g l i s t o f c o m p a n i e s t h a t o f fe r c o n ve r s a t i o n a l U I a p p s . G i ve t h e m a t r y : h t t p s : / / w w w. p r o d u c t h u n t . c o m / @ c h r i s m e s s i n a /

C o n ve r s a t i o n a l U I p r ov i d e s a c o n ve n i e n t w a y fo r p e o p l e t o a c c e s s a n d i n t e r a c t w i t h services – with no app fatigue, the ability t o a l w a y s r e s p o n d , vo i c e c o n ve r s a t i o n a n d n o t j u s t t y p e d t e x t . F u r t h e r m o r e , ‘ b o t s’ a r e p owe r i n g m a n y o f t h e s e c o n ve r s a t i o n s .

We C h a t i s p r o b a b l y t h e m o s t we l l - k n o w n example, with 900 million registered users a s we l l a s 1 0 m i l l i o n b u s i n e s s e s t h a t u s e r s add as buddies and then use messaging to t r a n s fe r m o n e y, b o o k t r a ve l o r d r i ve a h o s t of other interactions. @victoria_odell

S X S W • 2 0 1 6 • PAG E 6

ROBOTICS

Bod or ‘bot’? The ethics and aesthetics of robots

Robots and robotics made a big impression o n S X S W 2 0 1 6 . P r o fe s s o r H i r o s h i I s h i g u r o b e l i e ve s we w i l l l i ve i n a r o b o t s o c i e t y i n t h e n e x t t h r e e t o fo u r ye a r s . H i s s e s s i o n ‘A n d r o i d s a n d F u t u r e L i fe’ t o o k u s d e e p i n t o U n c a n n y Va l l e y w i t h h i s p e r s o n a l c l o n e G e m i n o i d android.

Pe o p l e w a n t r o b o t s t o b e h u m a n ; we l i k e r o b o t s t o l o o k a n d a c t l i k e u s . Vo i c e i s a k e y m e t h o d fo r m a k i n g r o b o t s m o r e h u m a n a n d , i f yo u c a n , a d d a n o t h e r h u m a n t a c t i l e m o d a l ity that makes the robot more human. People are more likely to speak to a human interface than to a human – no embarrassment, n o j u d g e m e n t . R o b o t s h a ve a p o s i t i ve physiological impact on humans. In Japan, c h i l d r e n w h o h u g t h e H u g v i e r o b o t fo c u s better at school. The act of hugging reduces s t r e s s a n d c o r t i s o l l e ve l s .

The robots are fragile.

We have to treat the head as a carry-on.

I s h i g u r o i s o n a f i ve - ye a r m i s s i o n t o d e ve l o p robots with intentions and desires. He is trying to answer questions such as ‘what is beauty?’ a n d ‘ w h a t i s c o n ve r s a t i o n ? ’ A b e t t e r r o b o t w i l l i n c o r p o r a t e c o g n i t i ve p r i n c i p l e s a n d a b e t t e r understanding of humans. After all, robots are b e t t e r t h a n p e o p l e . T h e y n e ve r g e t g r u m py a n d d o n’ t n e e d t o u s e t h e b a t h r o o m .

O ve r a t ‘ T h e H o l y G r a i l : M a c h i n e L e a r n i n g a n d E x t r e m e R o b o t i c s’ a n o t h e r r o b o t , S o p h i a , w a s ve r y m u c h o n d i s p l a y a s p a r t o f a p a n e l e x p l o r ing the potential of genius machines – potential w h i c h , we d o n’ t t h i n k s h e w i l l m i n d u s s a y i n g , Sophia is still some way from realizing.

While Sophia – comprising upper torso, ‘frubber’ skin, facial expressions and an ‘open h e a d ’ – d i d a n s we r q u e s t i o n s , t h e y we r e ve r y m u c h o f t h e c a n n e d v a r i e t y. H e r c r e a t o r , D a v i d Hanson of Hanson Robotics, nonetheless had h i g h a s p i r a t i o n s fo r h e r : “ T h e H o l y G r a i l i s s u p e r h u m a n c a p a c i t i e s fo r m a c h i n e s – learning the big picture in the context of the c o s m o s , w i t h b e n e f i c i a l o u t c o m e s fo r t h e future of civilization.”

@interruptdelivers

S X S W • 2 0 1 6 • PAG E 7

AUTOMOTIVE THE FUTURE OF TRANSPORTATION Many minds at SXSW were focused on the possibilities offered by innovations in transportation such as Hyperloop and connected cars.

Although some were of the view that there is more ‘hype’ than ‘loop’ in Elon Musk’s idea of passenger pods propelled at high speed between cities inside low-pressure tubes, others are committed to progressing the idea in reality or in spirit.

I n ‘ L o o k i n g Fo r w a r d t o R u s h H o u r : F u t u r e o f Tr a n s i t ’ , we l e a r n e d t h a t t h e H y p e r l o o p c o n c e p t c o u l d e v o l ve t r a n s p o r t a t i o n i n h i g h t r a f f i c c i t i e s , w i t h A l t u i t ’s C h i p p Wa l t e r s o u t l i n i n g a c o n f i g u r a t i o n fo r a H y p e r l o o p b e t we e n D a l l a s t o A u s t i n . T h e S p a c e X H y p e r l o o p Po d C o m p e t i t i o n ( h t t p : / / w w w. spacex.com/hyperloop) is tapping into minds f r o m a l l g e o g r a p h i e s t o e n g i n e e r i n n ov a t i ve transportation systems.

There are already 22 million connected ve h i c l e s i n t h e wo r l d , r i s i n g t o 8 2 m i l l i o n by 2022 – yet there is a brake on progress in this a r e a , a s c a r c o m p a n i e s d o n o t w a n t g i ve u p t h e i r s e r v i c e s l a ye r s t o t h e l i k e s o f A p p l e a n d Google in the way that has happened to m o b i l e p h o n e m a n u f a c t u r e r s . Pa n e l l i s t s i n ‘ H ow S i l i c o n Va l l e y I s R e i n ve n t i n g t h e A u t o I n d u s t r y ’ n o t e d t h a t t h e a ve r a g e A m e r i c a n s p e n d s $ 1 0 k p e r ye a r o n t h e i r c a r . We t r e a t the car like an appliance but in fact it is the m o s t e x p e n s i v e c o m p u t e r we ow n . A n d i t ’s t h e only computer that is not fully connected.

Car companies are interested in Silicon Va l l e y, b u t o n t h e i r ow n t e r m s – a s G M ’s acquisitions of Sidecar and Cruise A u t o m a t i o n h a ve e v i d e n c e d . I t i s p o s s i b l e that in the future people will buy cars based o n t h e c a r p l a t fo r m a n d i t s a p p e c o s y s t e m – “ T h e r e a r e b e t t e r a p p s fo r t h i s c a r c o m p a n y s o I w i l l d r i ve i t .

S X S W • 2 0 1 6 • PAG E 8

@interruptdelivers

I n ‘ H a c k i n g Yo u r R i d e : Tr a n s p o r t a t i o n S a fe t y a n d R i s k ’ we l e a r n e d t h a t , w h i l e c o n n e c t e d ve h i c l e s c o u l d r e d u c e t r a f f i c a c c i d e n t s by 8 0 % , until their security is robust there is a real t h r e a t t h a t s o m e o n e m i g h t h i j a c k yo u r c a r a n d r a n s o m i t b a c k t o yo u . A u t o m o t i ve m a n u f a c t u r e r s h a ve a l o n g h i s t o r y o f s a fe t y engineering, but not security engineering.

P u t a n o t h e r w a y, t h e r e a r e 8 2 m i l l i o n h a c k a b l e devices driving at a speed that can do real d a m a g e t o t h e r e a l wo r l d . S o m e g r o u p s , w h i t e h a t h a c k e r s , w a n t t o h a c k ve h i c l e s fo r t h e g o o d o f m a n k i n d , i m p r ove t h e e x p e r i e n c e a n d t h e u t i l i t y. A n o n y m o u s p e o p l e b r e a k t h e l a w t h r o u g h h a c k i n g , b u t d o n’ t d i r e c t l y b e n e f i t t h e m s e l ve s . H owe ve r , t h e r e a r e o r g a n i z e d g a n g s o f c r i m i n a l s w h o d o h a c k fo r c o m m e r c i a l gain. The military and security services can h a c k yo u r ve h i c l e a n d , l a s t b u t by n o m e a n s least, so can terrorists.

H e l p i s a t h a n d . C o m p a n i e s s u c h a s Z e n d r i ve a r e u s i n g yo u r d r i v i n g d a t a t o i m p r ove r o a d s a fe t y a n d g i ve yo u a d v i c e a n d fe e d b a c k o n h ow t o i m p r ove yo u r d r i v i n g . Tu r n s o u t , 9 0 % o f c o l l i s i o n s a r e c a u s e d by h u m a n e r r o r , a n d 2 5 % a r e f r o m u s i n g yo u r p h o n e w h i l e d r i v i n g .

T h e g r ow t h o f c o n n e c t e d ve h i c l e s a n d t h e economy of companies building businesses f r o m d a t a h a ve r a i s e d c o n c e r n s o n d a t a s e c u r i t y. T h e s o l u t i o n , i t i s p r o p o s e d , i s a re-engineering of the value chain of insurance.

To d a y, yo u c a n b u y c y b e r i n s u r a n c e , t o p r o t e c t yo u r s e l f f r o m h a c k i n g . B u t t h i s r a i s e s ve r y i m p o r t a n t q u e s t i o n s , s u c h a s w h o ow n s t h e d a t a ( yo u r d a t a ! ) , w h o h a s a c c e s s t o i t , a n d w h o i s a n a l y z i n g i t fo r w h a t p u r p o s e ?

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S X S W • 2 0 1 6 • PAG E 9

VR/AR ALTERED REALITIES Vi r t u a l a n d A u g m e n t e d R e a l i t y h a d a s t r o n g presence this year, with SXSW running its first e ve r V R / A R t r a c k . M c D o n a l d ’s a n d S a m s u n g we r e s h owc a s i n g t h e i r o w n V R e x p e r i e n c e s : t h e M c D o n a l d ’s L o f t w a s r u n n i n g H T C Vi ve d e m o s that turned the room into the inside of a McD o n a l d ’s H a p py M e a l , w h i l e yo u c o u l d ‘ r i d e’ rollercoasters at the Samsung Gear VR Lounge.

A t ‘ Fi ve Wa y s A R Wi l l C h a n g e T h e Wo r l d ’ , Vu fo r i a V P J a y Wr i g h t a n d S o n y ’s H e a d o f Pa r t n e r O u t r e a c h T r o e d S a n g b e r g , o b s e r ve d a fo r k i n t h e r o a d fo r V R a n d A R . W h i l e V R i s increasingly serving consumers and dominating gaming, AR will find its best use case on the e n t e r p r i s e s i d e a n d e vo l ve f r o m t h e r e – a l l ow i n g r e m o t e g u i d a n c e a n d s t e p - by - s t e p i n s t r u c t i o n s fo r e n g i n e e r s o r i n m e d i c a l p r o c e d u r e s .

Sangberg pointed out that, with the hologram o p t i c s t e c h n o l o g y o f S o n y ’s S m a r t E ye g l a s s , i n s t r u c t i o n a l i n fo r m a t i o n i n t h e f i e l d o f v i e w w a s a l r e a d y a r e a l i t y.

M a r k e t e r s f r o m T h e N o r t h Fa c e , H a s b r o a n d L u f t h a n s a s h a r e d e x a m p l e s o f h ow t h e y a r e t r y i n g t o i n n ov a t e w i t h V R e x p e r i e n c e s , r a t h e r than viewing VR as simply another sales c h a n n e l . T h e N o r t h Fa c e d o e s n’ t u s e V R t o h a ve yo u t r y o n c l o t h e s v i r t u a l l y ; i n s t e a d t h e y w a n t V R t o i n s p i r e yo u t o p u s h yo u r s e l f , e x p l o r e a n d g i ve a s e n s e o f w h a t s p o r t s a r e l i k e by participating alongside athletes in the virtual s p a c e . Fo r L u f t h a n s a , t h e g o a l i s t o b r i n g b a c k t h e j oy o f f l y i n g a n d g i ve p e r m i s s i o n t o g o b e yo n d b o r d e r s ; a i r t r a ve l s h o u l d n’ t a l w a y s b e about best price/shortest time.

D e s p i t e t h e l e ve l o f i n ve s t m e n t ( a n d i n t e r e s t at SXSW) VR is still in the experimental phase.

Companies will need to experiment with ‘unfinished’ experiences to test and learn; i t ’s O K t o f a i l .

W h e n A R f i l l s a u s e c a s e fo r t h e m a s s e s o r “ e ye we a r t e c h i s g o o d - l o o k i n g e n o u g h” , w h i c h e ve r c o m e s f i r s t , Wr i g h t a n d S a n g b e r g p r e d i c t i t w i l l b e f i ve ye a r s b e fo r e a n e x p l o s i o n in mass usage among consumers with e ve n t u a l l y o n e A R d e v i c e fo r e ve r y p e r s o n .

A R w i l l b e r e p l a c e d e ve r y t wo ye a r s , s i m i l a r t o s m a r t p h o n e s t o d a y.

A t ‘ Vi r t u a l R e a l i t y a n d t h e N e w S a l e s E x p e r i e n c e’ we l e a r n e d t h a t b u s i n e s s e s’ V R i n ve s t m e n t s a r e g r ow i n g e x p o n e n t i a l l y ; a t t h e e n d o f 2 0 1 5 o ve r $ 4 b n h a d b e e n i n ve s t e d , mostly in hardware, while software will i n c r e a s e e x p e n d i t u r e l e ve l s a t a g r e a t e r s c a l e .

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