Advertisement

Customer Integration Through Virtual Reality Implementation: A SWOT Analysis in the Area of Production Systems

  • Elisa LandmannEmail author
  • Jana Stolz-Römmermann
  • Tobias Günther
Chapter
  • 47 Downloads
Part of the Progress in IS book series (PROIS)

Abstract

During the last few years, the use of virtual reality (VR) technologies has become firmly established in large enterprises. In this article, the authors question the potential of implementing VR technologies to improve business to business (B2B) customer integration in the area of production systems. Many companies focus on increasing their customer orientation, and VR applications can provide greater integration into the service creation process. For clarification of the topic, a use case from plant engineering and mechanical engineering is presented. Technical opportunities and the risks of VR implementation for successful customer integration in the given use case are discussed. In addition, the resulting strengths and weaknesses for customer relationship management are shown. The article concludes with an outlook on future research needs.

Keywords

Virtual reality Production systems Customer integration SWOT analysis 

Notes

Acknowledgements

The present paper is part of an interdisciplinary research project. The authors are grateful to the Sächsische Aufbaubank, Germany and the European Social Fund for their sponsorship of this research.

References

  1. Abulrub, A. G., Attridge, A. N., & Williams, M. A. (2011). Virtual reality in engineering education: The future of creative learning. In 2011 IEEE Global Engineering Education Conference (EDUCON) (pp. 751–757).Google Scholar
  2. Anthes, C., García-Hernández, R. J., Wiedemann, M., & Kranzlmüller, D. (2016). State of the art of virtual reality technology. 2016 IEEE Aerospace Conference (pp. 1–19). Washington, DC: IEEE Computer Society.Google Scholar
  3. Antons, D., & Piller, F. T. (2015). Opening the black box of ‘not invented here’: Attitudes, decision biases, and behavioral consequences. Academy of Management Perspectives, 29(2), 193–217.CrossRefGoogle Scholar
  4. Avila, L., & Bailey, M. (2014). Virtual reality for the masses. IEEE Computer Graphics and Applications, 34(5), 103–104.CrossRefGoogle Scholar
  5. Ballendat, M., Hütten, A. S. J., Antons, D., Niemand, T., & Siems, F. U. (2015). Customer integration—A critical case-supported observation of the risks of a marketing trend. Journal of Academy of Business and Economics, 15(3), 143–149.CrossRefGoogle Scholar
  6. Bao, J. S., Jin, Y., Gu, M. Q., Yan, J. Q., & Ma, D. Z. (2002). Immersive virtual product development. Journal of Materials Processing Technology, 129(1), 592–596.CrossRefGoogle Scholar
  7. Bartl, M., Füller, J., Mühlbacher, H., & Ernst, H. (2012). A manager’s perspective on virtual customer integration for new product development. Journal of Product Innovation Management, 29(6), 1031–1046.CrossRefGoogle Scholar
  8. Bellgran, M., & Säfsten, E. K. (2009). Production development: Design and operation of production systems. London: Springer Science & Business Media.Google Scholar
  9. Berg, L. P., & Vance, J. M. (2017). Industry use of virtual reality in product design and manufacturing: A survey. Virtual Reality, 21(1), 1–17.CrossRefGoogle Scholar
  10. Berger, C., & Piller, F. T. (2003). Customers as co-designers. Manufacturing Engineer, 82(4), 42–45.CrossRefGoogle Scholar
  11. Bordegoni, M., Ferrise, F., & Lizaranzu, J. (2011). Use of interactive virtual prototypes to define product design specifications: A pilot study on consumer products. In 2011 IEEE International Symposium on VR Innovation (pp. 11–18), Washington, DC: IEEE Computer Society.Google Scholar
  12. Bowman, D. A., & McMahan, R. P. (2007). Virtual reality: How much immersion is enough? Computer, 40(7), 36–43.CrossRefGoogle Scholar
  13. Bruno, F., & Muzzupappa, M. (2010). Product interface design: A participatory approach based on virtual reality. International Journal of Human-Computer Studies, 68(5), 254–269.CrossRefGoogle Scholar
  14. Choi, S., Jung, K., & Noh, S. D. (2015). Virtual reality applications in manufacturing industries: Past research, present findings, and future directions. Concurrent Engineering, 23(1), 40–63.CrossRefGoogle Scholar
  15. Craig, A. B., Sherman, W. R., & Will, J. D. (2009). Developing virtual reality applications: Foundations of effective design. Amsterdam: Morgan Kaufmann.Google Scholar
  16. Danese, P., & Romano, P. (2013). The moderating role of supply network structure on the customer integration-efficiency relationship. International Journal of Operations & Production Management, 33(4), 372–393.CrossRefGoogle Scholar
  17. Dünser, A., Steinbügl, K., Kaufmann, H., & Glück, J. (2006). Virtual and augmented reality as spatial ability training tools. In Proceedings of the 6th ACM SIGCHI New Zealand Chapter’s International Conference on Computer-Human Interaction Design Centered HCI—CHINZ’06 (pp. 125–132). Christchurch: ACM Press.Google Scholar
  18. Enkel, E., Kausch, C., & Gassmann, O. (2005). Managing the risk of customer integration. European Management Journal, 23(2), 203–213.CrossRefGoogle Scholar
  19. Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71.CrossRefGoogle Scholar
  20. Franke, N., von Hippel, E., & Schreier, M. (2006). Finding commercially attractive user innovations: A test of lead-user theory. Journal of Product Innovation Management, 23(4), 301–315.CrossRefGoogle Scholar
  21. Füller, J., Mühlbacher, H., Matzler, K., & Jawecki, G. (2009). Consumer empowerment through internet-based co-creation. Journal of Management Information Systems, 26(3), 71–102.CrossRefGoogle Scholar
  22. Gassmann, O., Kausch, C., & Enkel, E. (2010). Negative side effects of customer integration. International Journal of Technology Management, 50(1), 43–62.CrossRefGoogle Scholar
  23. Gouthier, M., & Schmid, S. (2003). Customers and customer relationships in service firms: The perspective of the resource-based view. Marketing Theory, 3(1), 119–143.CrossRefGoogle Scholar
  24. Greer, D. A. (2015). Defective co-creation: Developing a typology of consumer dysfunction in professional services. European Journal of Marketing, 49(1/2), 238–261.CrossRefGoogle Scholar
  25. Guo, H., Li, H., Chan, G., & Skitmore, M. (2012). Using game technologies to improve the safety of construction plant operations. Accident Analysis and Prevention, 48, 204–213.CrossRefGoogle Scholar
  26. Hay, G. J., & Castilla, G. (2006). Object-based image analysis: Strengths, weaknesses, opportunities and threats (SWOT). Proceedings of the First International Conference OBIA, XXXVI-4(C42), 4–5.Google Scholar
  27. Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis—Where are we now? A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215–251.CrossRefGoogle Scholar
  28. Heydarian, A., Carneiro, J. P., Gerber, D., Becerik-Gerber, B., Hayes, T., & Wood, W. (2015). Immersive virtual environments versus physical built environments: A benchmarking study for building design and user-built environment explorations. Automation in Construction, 54, 116–126.CrossRefGoogle Scholar
  29. Hoberman, P., Krum, D. M., Suma, E. A., & Bolas, M. (2012). Immersive training games for smartphone-based head mounted displays. IEEE Virtual Reality Workshops (VRW), 2012, 151–152.Google Scholar
  30. Houben, G., Lenie, K., & Vanhoof, K. (1999). A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises. Decision Support Systems, 26(2), 125–135.CrossRefGoogle Scholar
  31. Jerald, J. (2016). The VR book: Human-centered design for virtual reality. San Rafael: Morgan & Claypool.Google Scholar
  32. Jimeno, A., & Puerta, A. (2007). State of the art of the virtual reality applied to design and manufacturing processes. The International Journal of Advanced Manufacturing Technology, 33(9), 866–874.CrossRefGoogle Scholar
  33. Katz, R., & Allen, T. J. (1982). Investigating the not invented here (NIH) syndrome: A look at the performance, tenure, and communication patterns of 50 R&D project groups. R&D Management, 12(1), 7–20.CrossRefGoogle Scholar
  34. Kelley, S. W., Donnelly, J. H., Jr., & Skinner, S. J. (1990). Customer participation in service production and delivery. Journal of Retailing, 66(3), 315–335.Google Scholar
  35. Kennedy, R. S., & Stanney, K. M. (1996). Postural instability induced by virtual reality exposure: Development of a certification protocol. International Journal of Human-Computer Interaction, 8(1), 25–47.CrossRefGoogle Scholar
  36. Kim, S. W. (2006). Effects of supply chain management practices, integration and competition capability on performance. Supply Chain Management, 11(3), 241–248.CrossRefGoogle Scholar
  37. Kostova, T., & Roth, K. (2002). Adoption of an organizational practice by subsidiaries of multinational corporations: Institutional and relational effects. Academy of Management Journal, 45(1), 215–233.Google Scholar
  38. Lee, C. W., Kwon, I. W. G., & Severance, D. (2007). Relationship between supply chain performance and degree of linkage among supplier, internal integration, and customer. Supply Chain Management, 12(6), 444–452.CrossRefGoogle Scholar
  39. Leigh, D. (2006). SWOT-Analysis. In A. J. Pershing (Ed.), The handbook of human performance technology (pp. 1089–1108). San Francisco: Wiley.Google Scholar
  40. Lilien, G. L., Morrison, P. D., Searls, K., Sonnack, M., & von Hippel, E. (2002). Performance assessment of the lead user idea-generation process for new product development. Management Science, 48(8), 1042–1059.CrossRefGoogle Scholar
  41. Lusch, R. F., Vargo, S. L., & O’Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of Retailing, 83(1), 5–18.CrossRefGoogle Scholar
  42. McKone, D., Haslehurst, R., & Steingoltz, M. (2016). Virtual and augmented reality will reshape retail. Harvard Business Review Digital Articles, 2–4. Retrieved January 30, 2019 from https://hbr.org/2016/09/virtual-and-augmented-reality-will-reshape-retail.
  43. Merlo, A., Sánchez Belenguer, C., Vendrell Vidal, E., Fantini, F., & Aliperta, A. (2013). 3D model visualization enhancements in real-time game engines. In ISPRS—International Archives of the Photogrammetry, Remote Sensing and Spatial Information Sciences (Vol. XL-5/W1, pp. 181–188).Google Scholar
  44. Moeller, S. (2008). Customer integration—A key to an implementation perspective of service provision. Journal of Service Research, 11(2), 197–210.CrossRefGoogle Scholar
  45. Moutongho Nzengue, B., N’Goala, G., & Kreziak, D. (2012). Customer burnout and customer incivility in service settings: Examining the potential dark side of customer participation in service delivery process. In The 12th International Research Conference in Service Management (p. 18).Google Scholar
  46. Mujber, T. S., Szecsi, T., & Hashmi, M. S. J. (2004). Virtual reality applications in manufacturing process simulation. Journal of Materials Processing Technology, 155–156, 1834–1838.CrossRefGoogle Scholar
  47. Müller, M., Günther, T., Kammer, D., Wojdziak, J., Lorenz, S., & Groh, R. (2016). Smart prototyping—Improving the evaluation of design concepts using virtual reality. In S. Lackey & R. Shumaker (Eds.), Virtual, augmented and mixed reality (pp. 47–58). Cham: Springer International Publishing.CrossRefGoogle Scholar
  48. Nilsson, N. C., Serafin, S., Steinicke, F., & Nordahl, R. (2018). Natural walking in virtual reality: A review. Computers in Entertainment (CIE), 16(2), 8.Google Scholar
  49. Piller, F. T., Moeslein, K., & Stotko, C. M. (2004). Does Mass customization pay? An economic approach to evaluate customer integration. Production Planning & Control, 15(4), 435–444.CrossRefGoogle Scholar
  50. Rizzi, C. (2011). Digital human models within product development process. In M. Bordegoni & C. Rizzi (Eds.), Innovation in product design (pp. 143–166). London: Springer.CrossRefGoogle Scholar
  51. Rizzo, A. S., & Kim, G. J. (2005). A SWOT analysis of the field of virtual reality rehabilitation and therapy. Teleoperators & Virtual Environments, 14(2), 119–146.CrossRefGoogle Scholar
  52. Rolland, J. P., Biocca, F. A., Barlow, T., & Kancherla, A. (1995, March). Quantification of adaptation to virtual-eye location in see-thru head-mounted displays. In Proceedings Virtual Reality Annual International Symposium’95 (pp. 56–66). Washington, DC: IEEE Computer Society.Google Scholar
  53. Sezen, B. (2008). Relative effects of design, integration and information sharing on supply chain performance. Supply Chain Management, 13(3), 233–240.CrossRefGoogle Scholar
  54. Sherman, W. R., & Craig, A. B. (2018). Understanding virtual reality: Interface, application, and design. San Francisco: Morgan Kaufmann.Google Scholar
  55. Slater, M. (2009). Place illusion and plausibility can lead to realistic behaviour in immersive virtual environments. Philosophical Transactions of the Royal Society B: Biological Sciences, 364(1535), 3549–3557.CrossRefGoogle Scholar
  56. Tang, Y., & Gu, H. (2010). CAD model’s simplification and conversion for virtual reality. In Third International Conference on Information and Computing (pp. 265–268).Google Scholar
  57. Urban, G. L., & Hauser, J. R. (2004). “Listening in” to find and explore new combinations of customer needs. Journal of Marketing, 68(2), 72–87.CrossRefGoogle Scholar
  58. Verona, G., Prandelli, E., & Sawhney, M. (2006). Innovation and virtual environments: Towards virtual knowledge brokers. Organization Studies, 27(6), 765–788.CrossRefGoogle Scholar
  59. Vignais, N., Kulpa, R., Brault, S., Presse, D., & Bideau, B. (2015). Which technology to investigate visual perception in sport: Video vs. virtual reality. Human Movement Science, 39, 12–26.CrossRefGoogle Scholar
  60. Witmer, B. G., & Singer, M. J. (1998). Measuring presence in virtual environments: A presence questionnaire. Presence, 7(3), 225–240.CrossRefGoogle Scholar
  61. Zailani, S., & Rajagopal, P. (2005). Supply chain integration and performance: US versus East Asian companies. Supply Chain Management, 10(5), 379–393.CrossRefGoogle Scholar
  62. Zwolinski, P., Tichkiewitch, S., & Sghaier, A. (2007). The use of virtual reality techniques during the design process: From the functional definition of the product to the design of its structure. CIRP Annals, 56(1), 135–138.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Elisa Landmann
    • 1
    Email author
  • Jana Stolz-Römmermann
    • 1
  • Tobias Günther
    • 2
  1. 1.Faculty of Business Economics, esp. MarketingTechnical University DresdenDresdenGermany
  2. 2.Faculty of Media DesignTechnical University DresdenDresdenGermany

Personalised recommendations