wolfgang stelzle (re’flekt) time to make money with augmented reality – tools for industry 4

TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

WOLFGANG STELZLEOCT 2016

2

RE’FLEKT IS ONE OF THE LEADING COMPANIES IN THE FIELD OF USER-ORIENTED AUGMENTED & VIRTUAL REALITY SOLUTIONS.

WOLFGANG STELZLECEO RE’FLEKT GMBH

BREAKING NEWS

THE AUGMENTED & VIRTUAL REALITY BOOM

3TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

AR & VR MARKET

4TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

AR & VR MARKET

5TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

AR & VR MARKET

6TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

WHY ALL THE INVESTMENTS?

… MAYBE CAUSE PEOPLE ARE HAVING FUN?

7TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

8TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

The studio model includes companies that create AR & VR content. Some produce their own IP, while others work primarily as contractors.

Pros:• many want to create AR/VR

experiences

Cons:• not very scalable• relatively low barrier to entry

Studio

The hardware model includes companies that produce physical consumer goods for AR/VR. They can make cameras, headsets, and input / output devices.

Pros:• potential for defensible technology• large potential market

Cons:• capital intensive• many competitors• manufacturing risk• research & development risk

Hardware

The middleware model includes companies that develop software and technology for the creation and distribution of AR/VR.

Pros:• very scalable• potential for defensible,

differentiated offering

Cons: • research & development risk• difficult to predict the needs of

content creators

Middleware

The aggregate model includes companies that distribute AR/VR content. They can take the form of apps, app stores, and web destinations.

Pros:• large potential market• very scalable• control relationship with

end-consumer

Cons:• difficult to differentiate• dependent on content creators• threat of winner-take-all market

Aggregate

The modern era of AR/VR is still in its infancy. A majority of companies in the space are pre-product / pre-revenue, and are frequently pivoting and repositioning. This state of flux guarantees that new business models will continue to emerge in the future.

IntegratedThe integrated model includes companies that operate two or more of the business models shown above.

Pros:• control more of the user

experience and ecosystem • diversified business

Cons: • extremely capital intensive• potentially unfocused• many competitors

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

9TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

The studio model includes companies that create AR & VR content. Some produce their own IP, while others work primarily as contractors.

Pros:• many want to create AR/VR

experiences

Cons:• not very scalable• relatively low barrier to entry

Studio

The hardware model includes companies that produce physical consumer goods for AR/VR. They can make cameras, headsets, and input / output devices.

Pros:• potential for defensible technology• large potential market

Cons:• capital intensive• many competitors• manufacturing risk• research & development risk

Hardware

The middleware model includes companies that develop software and technology for the creation and distribution of AR/VR.

Pros:• very scalable• potential for defensible,

differentiated offering

Cons: • research & development risk• difficult to predict the needs of

content creators

Middleware

The aggregate model includes companies that distribute AR/VR content. They can take the form of apps, app stores, and web destinations.

Pros:• large potential market• very scalable• control relationship with

end-consumer

Cons:• difficult to differentiate• dependent on content creators• threat of winner-take-all market

Aggregate

The modern era of AR/VR is still in its infancy. A majority of companies in the space are pre-product / pre-revenue, and are frequently pivoting and repositioning. This state of flux guarantees that new business models will continue to emerge in the future.

IntegratedThe integrated model includes companies that operate two or more of the business models shown above.

Pros:• control more of the user

experience and ecosystem • diversified business

Cons: • extremely capital intensive• potentially unfocused• many competitors

CAUSE….

...IT’S THE RIGHT TIME

10TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

New technologies are generally being adopted faster. Years from consumer availability to 10% penetration in US.

0 5 10 15 20 25

Virtual Reality

Tablet

Smartphone

Internet

PC

Television

Telephone

?

(1876)

(1938)

(1990)

(2005)

(2010)

(1975)

(2015) Years Sources: Technology Review (US Technology Adoption Rates), The World Bank (Internet Users), Asympco(Smartphone Penetration)

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

11TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

The studio model includes companies that create AR & VR content. Some produce their own IP, while others work primarily as contractors.

Pros:• many want to create AR/VR

experiences

Cons:• not very scalable• relatively low barrier to entry

Studio

The hardware model includes companies that produce physical consumer goods for AR/VR. They can make cameras, headsets, and input / output devices.

Pros:• potential for defensible technology• large potential market

Cons:• capital intensive• many competitors• manufacturing risk• research & development risk

Hardware

The middleware model includes companies that develop software and technology for the creation and distribution of AR/VR.

Pros:• very scalable• potential for defensible,

differentiated offering

Cons: • research & development risk• difficult to predict the needs of

content creators

Middleware

The aggregate model includes companies that distribute AR/VR content. They can take the form of apps, app stores, and web destinations.

Pros:• large potential market• very scalable• control relationship with

end-consumer

Cons:• difficult to differentiate• dependent on content creators• threat of winner-take-all market

Aggregate

The modern era of AR/VR is still in its infancy. A majority of companies in the space are pre-product / pre-revenue, and are frequently pivoting and repositioning. This state of flux guarantees that new business models will continue to emerge in the future.

IntegratedThe integrated model includes companies that operate two or more of the business models shown above.

Pros:• control more of the user

experience and ecosystem • diversified business

Cons: • extremely capital intensive• potentially unfocused• many competitors

TIME TO EARN MONEY…

...WITH HARDWARE

12TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

TIME TO EARN MONEY…

...WITH HARDWARE

13TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

Released inH22015

Released inH12016

Released inH12016

ReleaseinH22016

ReleaseinH1 2017

100€ 699€ 899€ approx.400€ n.a.

+mobilewithS7+fairlycheap- display quality- Performance

oB2B&B2Cfocus

+displayquality- cables

- workstationrequiredoB2Cfocus

+lighthousetracking+display quality

- cables- workstationrequiredoB2B&B2Cfocus

+bundlewithPlayStation+ fairlycheapoB2Cfocus

+ MixedRealityappspossible

+lightweight

TIME TO EARN MONEY…

...WITH HARDWARE

14TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

TIME TO EARN MONEY…

...WITH HARDWARE

15TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

Source:http://www.icaros.net

TIME TO EARN MONEY…

...WITH HARDWARE

16TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

Sourcehttps://www.neowin.net/news

24.000 x 1.000 = 24.000.000

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

17TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

The studio model includes companies that create AR & VR content. Some produce their own IP, while others work primarily as contractors.

Pros:• many want to create AR/VR

experiences

Cons:• not very scalable• relatively low barrier to entry

Studio

The hardware model includes companies that produce physical consumer goods for AR/VR. They can make cameras, headsets, and input / output devices.

Pros:• potential for defensible technology• large potential market

Cons:• capital intensive• many competitors• manufacturing risk• research & development risk

Hardware

The middleware model includes companies that develop software and technology for the creation and distribution of AR/VR.

Pros:• very scalable• potential for defensible,

differentiated offering

Cons: • research & development risk• difficult to predict the needs of

content creators

Middleware

The aggregate model includes companies that distribute AR/VR content. They can take the form of apps, app stores, and web destinations.

Pros:• large potential market• very scalable• control relationship with

end-consumer

Cons:• difficult to differentiate• dependent on content creators• threat of winner-take-all market

Aggregate

The modern era of AR/VR is still in its infancy. A majority of companies in the space are pre-product / pre-revenue, and are frequently pivoting and repositioning. This state of flux guarantees that new business models will continue to emerge in the future.

IntegratedThe integrated model includes companies that operate two or more of the business models shown above.

Pros:• control more of the user

experience and ecosystem • diversified business

Cons: • extremely capital intensive• potentially unfocused• many competitors

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

18TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

$6B

TIME TO EARN MONEY…

AUTOMOTIVE AFTERSALES MARKET

19SMART ASSISTANCE WITH AUGMENTED REALITY

Source:http://www.adlittle.com/downloads/tx_adlreports/AMG_Automotive_after_sales_2015_01.pdf

20TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

DECREASECOSTS INCREASEREVENUE

TIME TO EARN MONEY…

REFLEKT 360

21TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

SMART ASSISTANCE

FOR NUMEROUS USE-CASES

Everyday Assistant

Teleservices, Remote-Support

Customer SupportSetup, Installation, How to use

Collaborative work Emergency Assistant

Repair, Maintenance, Inspection

SMART ASSISTANCE WITH AUGMENTED REALITY

TIME TO EARN MONEY…

REPAIR & MAINTENANCE

23SMART ASSISTANCE WITH AUGMENTED REALITY

Source:re-flekt.com

TIME TO EARN MONEY…

Results from technician surveys

24SMART ASSISTANCE WITH AUGMENTED REALITY

Source:BoschAA-AS

§ Assessment of an AR system for training

§ 50+ participant of all ages and experience

§ Participants indicated that AR would boost quality and time by 52% compared to traditionally existing information systems.

TIME TO EARN MONEY…

TABLET MACHINE MANUAL

25SMART ASSISTANCE WITH AUGMENTED REALITY

Source:re-flekt.com

TIME TO EARN MONEY…

SMARTPHONE USERS MANUAL

26SMART ASSISTANCE WITH AUGMENTED REALITY

Source:www.en.zte.com.cn

TIME TO EARN MONEY…

TELESERVICES

27SMART ASSISTANCE WITH AUGMENTED REALITY

Source:re-flekt.com

TIME TO EARN MONEY…

SALES SUPPORT WITH AR

28SMART ASSISTANCE WITH AUGMENTED REALITY

TIME TO EARN MONEY…

SALES SUPPORT WITH VR

29SMART ASSISTANCE WITH AUGMENTED REALITY

CONTENT 30

SCALABLE CONTENT PRODUCTION FOR

AUGMENTED REALITY AS SUCCESS FACTOR

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

32TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

The studio model includes companies that create AR & VR content. Some produce their own IP, while others work primarily as contractors.

Pros:• many want to create AR/VR

experiences

Cons:• not very scalable• relatively low barrier to entry

Studio

The hardware model includes companies that produce physical consumer goods for AR/VR. They can make cameras, headsets, and input / output devices.

Pros:• potential for defensible technology• large potential market

Cons:• capital intensive• many competitors• manufacturing risk• research & development risk

Hardware

The middleware model includes companies that develop software and technology for the creation and distribution of AR/VR.

Pros:• very scalable• potential for defensible,

differentiated offering

Cons: • research & development risk• difficult to predict the needs of

content creators

Middleware

The aggregate model includes companies that distribute AR/VR content. They can take the form of apps, app stores, and web destinations.

Pros:• large potential market• very scalable• control relationship with

end-consumer

Cons:• difficult to differentiate• dependent on content creators• threat of winner-take-all market

Aggregate

The modern era of AR/VR is still in its infancy. A majority of companies in the space are pre-product / pre-revenue, and are frequently pivoting and repositioning. This state of flux guarantees that new business models will continue to emerge in the future.

IntegratedThe integrated model includes companies that operate two or more of the business models shown above.

Pros:• control more of the user

experience and ecosystem • diversified business

Cons: • extremely capital intensive• potentially unfocused• many competitors

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

33TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

The studio model includes companies that create AR & VR content. Some produce their own IP, while others work primarily as contractors.

Pros:• many want to create AR/VR

experiences

Cons:• not very scalable• relatively low barrier to entry

Studio

The hardware model includes companies that produce physical consumer goods for AR/VR. They can make cameras, headsets, and input / output devices.

Pros:• potential for defensible technology• large potential market

Cons:• capital intensive• many competitors• manufacturing risk• research & development risk

Hardware

The middleware model includes companies that develop software and technology for the creation and distribution of AR/VR.

Pros:• very scalable• potential for defensible,

differentiated offering

Cons: • research & development risk• difficult to predict the needs of

content creators

Middleware

The aggregate model includes companies that distribute AR/VR content. They can take the form of apps, app stores, and web destinations.

Pros:• large potential market• very scalable• control relationship with

end-consumer

Cons:• difficult to differentiate• dependent on content creators• threat of winner-take-all market

Aggregate

The modern era of AR/VR is still in its infancy. A majority of companies in the space are pre-product / pre-revenue, and are frequently pivoting and repositioning. This state of flux guarantees that new business models will continue to emerge in the future.

IntegratedThe integrated model includes companies that operate two or more of the business models shown above.

Pros:• control more of the user

experience and ecosystem • diversified business

Cons: • extremely capital intensive• potentially unfocused• many competitors

• TIME TO EARN MONEY WITH AR & VRA BET ON THE FUTURE 34ECO-SYSTEMS

TIME TO EARN MONEY…

...WITH ECO-SYSTEMS

35TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

MAYBE BUT THERE ARE...

...MANY AREAS TO EARN MONEY IN

36TIME TO EARN MONEY WITH AUGMENTED AND VIRTUAL REALITY

The studio model includes companies that create AR & VR content. Some produce their own IP, while others work primarily as contractors.

Pros:• many want to create AR/VR

experiences

Cons:• not very scalable• relatively low barrier to entry

Studio

The hardware model includes companies that produce physical consumer goods for AR/VR. They can make cameras, headsets, and input / output devices.

Pros:• potential for defensible technology• large potential market

Cons:• capital intensive• many competitors• manufacturing risk• research & development risk

Hardware

The middleware model includes companies that develop software and technology for the creation and distribution of AR/VR.

Pros:• very scalable• potential for defensible,

differentiated offering

Cons: • research & development risk• difficult to predict the needs of

content creators

Middleware

The aggregate model includes companies that distribute AR/VR content. They can take the form of apps, app stores, and web destinations.

Pros:• large potential market• very scalable• control relationship with

end-consumer

Cons:• difficult to differentiate• dependent on content creators• threat of winner-take-all market

Aggregate

The modern era of AR/VR is still in its infancy. A majority of companies in the space are pre-product / pre-revenue, and are frequently pivoting and repositioning. This state of flux guarantees that new business models will continue to emerge in the future.

IntegratedThe integrated model includes companies that operate two or more of the business models shown above.

Pros:• control more of the user

experience and ecosystem • diversified business

Cons: • extremely capital intensive• potentially unfocused• many competitors

AR/VR IS STILL IN ITS INFANCY. MAJORITY OF COMPANIES ARE PRE-

PRODUCT / PRE-REVENUE. FREQUENT PIVOTING AND

REPOSITIONING.

THANK YOU!38

Wolfgang Stelzle (CEO)+49 89 122 045-10ws@re-flekt.comwww.re-flekt.com