We recently attended Worlds Fair Nano in New York and experienced some of the exciting innovations that are being developed in the space of Virtual Reality (VR) and Augmented Reality (AR). These immersive technologies are rapidly evolving and have been mentioned as capabilities of strategic interest by many of the prolific buyers of digital consulting firms that we are in dialogue with. VR involves creating digital worlds through headsets and AR encompasses enhancing reality with digital content. Mixed Reality (MR) is a term used to describe AR effects being used in VR headsets or smartglasses. According to MarketsandMarkets, the global AR and VR market is expected to reach $151.3bn by 2022 (growing at a CAGR of 70.4% between 2016 and 2022).
Benefits of Immersive Technologies in Brand Engagement and Design
Immersive technologies have already broadened their applicability from gaming and entertainment. According to a recent survey by GfK, the top three activities that customers expect to undertake using VR include education, design and communication. We also expect these trends to have a significant impact on advertising, travel and shopping.
Those companies that effectively use immersive technologies to engage customers will have an advantage over competitors as they develop electronic empathy with their prospective and existing clients through linking virtual, physical and emotional realities. Some commentators suggest that AR has the potential to bring a physical presence to online shopping, where brands may begin to develop virtual spaces where customers can try on clothes or test products.
In design, VR also enables designers across industries to accurately design complex projects with customers before they go into production. AR then permits clients to preview and experience their designs in real-world spaces.
We recently ran a series of webinars exploring the themes within our Global Consulting M&A report 2017, which reviews the key M&A and equity market trends within the consulting industry across five of Equiteq’s industry specialisms: Management Consulting, Media agencies, Engineering consulting, IT services and HR
In this week’s blog, we outline some of the key topics discussed in our IT Services webinar, which provides vital insight for IT Services firm owners considering selling, including average deal size and valuation multiples, drivers for deal activity, top buyers and M&A activity by region.
We were pleased to recently attend the Salesforce World Tour in London and Boston, where we listened to speeches from Salesforce President, Keith Block, along with senior members of IBM Watson and Amazon Web Services. These talks focused on the transformation of customer experience as part of the so-called ‘fourth industrial revolution’. This revolution is being characterized by the convergence of cloud, social, mobile and technologies like the Internet of Things (IoT) and Artificial Intelligence (AI).
This trend is notably being observed through the development of eCommerce and smart devices, which now utilize predictive marketing and advanced data analytics. This technology is expected to become increasingly sophisticated with the rapid advances in AI.
Percentage of surveyed companies using or planning to use AI in the following ways
For every consultant who spotted the cloud opportunity and raced to embrace it, there will be another who is still not quite fully convinced.
Clients have spent hundreds of thousands – or even millions – on their on-premise solutions, they are comfortable with their data centres and have established long-term relationships with their maintenance engineers. They’re not ready to give all that up in one go. And, as long they resist a wholesale move to cloud, there’s a role for IT consultants and specialists to offer support for these traditional models.
But the pace of change is quickening; clients have tuned in to piecemeal migration and with software vendor innovation being cloud-focused, the largest traditional consulting firms have seen the writing on the wall, turning to mergers and acquisitions (M&A) as the only credible way of rapidly building their cloud capability.
Shaun Fröhlich is UK managing partner of Incredibleresults, and works with leadership teams to accelerate value growth.
“We are all on a spectrum,” he says. “Many believe the world is changing because of the cloud and it is spurring them on to cash in their chips on their existing business, but there is an almost equal number that remain neutral and see it as an evolution, not reason to trigger a capital event.”
Despite the cloud offering faster, less disruptive deployment and easier global enablement – while cyber-security concerns have increasingly been addressed – migration to the cloud isn’t yet wholesale for most organizations.