REALITY Actions for India's businesses and policymakers to leverage immersive technologies responsibly - Accenture

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REALITY Actions for India's businesses and policymakers to leverage immersive technologies responsibly - Accenture
REALITY
VIRTUAL IS THE NEW

Actions for India’s businesses and policymakers
to leverage immersive technologies responsibly
REALITY Actions for India's businesses and policymakers to leverage immersive technologies responsibly - Accenture
India’s spend on extended reality (XR) technologies is experiencing
significant growth. The impact of these technologies—augmented
reality (AR), virtual reality (VR) and mixed reality (MR)—is being felt across
myriad industries, notably healthcare, hospitality, education and retail. No
doubt, XR could usher in improved safety for workers, enhanced customer
experience and advanced learning. However, it could also exacerbate
cyberattacks and privacy breaches since such immersive technologies
leverage sensitive data that could be misused. For XR to flourish
responsibly in India, policymakers, entrepreneurs and behavioral experts,
among others, must form ecosystems that provide a secure infrastructure
and strong incentives to encourage innovation and wider adoption.

Extended Reality’s Potential
Gets Real
Globally, XR is poised to be a US$160 billion      penetration—a key driving factor—which is
industry by 2023.1 In India, the XR spending       expected to double during the same timeframe
will exceed US$6.5 billion by 2022 from under      (Figure 1).2,3
US$2 billion in 2020 due to growing smartphone

                          7,000
                                                                         6,523

                          6,000

                          5,000
                                            CAGR
                          4,000
                                           85.2%
       XR Market Size                                          3,520
       (in US$ million)

                          3,000

                          2,000                      1,920

                                           1,033
                          1,000
                                  554

                                  2018      2019     2020       2021       2022

Figure 1: XR takes off in India

While this growth is fueled by burgeoning          springing up in the past couple of years alone.4
demand, the supply side factors are keeping        Not surprisingly, most of the startups are based
pace. Currently, there are more than 170 AR        in metros and serve large corporations across
and VR startups in India, with some 60 percent     industries (Figure 2).

                                                                                                      2
Oil & Gas
                                   Hindustan Petroleum, an oil & gas
                                   giant, has set up an XR facility at its
                                   Petroleum House Learning Centre.6
                                   It provides an interactive and              Real Estate
                                   simulated environment to practice
                                                                             XR is helping enhance
                                   field situations in functions
   Infrastructure                  such as Refinery and Depot. It’s
                                                                             customer experience at
                                                                             Lodha Group, an established
                                   helping address the challenges of
Larsen & Toubro, a leading                                                   real estate player in India.7
                                   traditional training methods that
infrastructure player in India,                                              Most real estate companies are
                                   are fraught with difficulty, risks and
uses XR to educate its laborers                                              unable to deliver projects on
                                   come at a huge expense.
on how to operate safely at                                                  time and fail to communicate
construction sites.5 The result?                                             the actual progress to the
L&T’s laborers’ fatality rate                                                buyers. Lodha’s XR content will
has dropped to zero, safety                                                  help customers view the actual
awareness has increased by                                                   progress made on
90%, and training costs have                                                 the project.
declined by 60% (versus
on-site trainings that are
expensive, time-consuming
and not as effective).

   Retail                                                                      Education
Online furniture player Urban                                                India’s top education app
Ladder has pioneered the                                                     Byju’s recently acquired an
use of AR with its mobile app         Hospitality                            educational gaming startup
Living Spaces.8 The app helps                                                called Osmo.10 Osmo has
customers to virtually place       OYO Hotels, the popular hotel
                                   chain in India, is experimenting          developed a gaming-based
the selected furniture in their                                              learning approach for children
rooms to check if it meets their   with XR for enriched customer
                                   experience.9 It aims to help guests       aged 4–11 years. Its AR device
requirements. The app is helping                                             mounts on an iPad and enables
the company make furniture         experience staying in a room even
                                   before booking it. To bring these         children to interact with their
selection easy and minimize the                                              environment without touching
chances of returns.                technologies to life, OYO runs a
                                   proprietary property management           the screen.
                                   software called OYO OS at its
                                   partner hotels.

Figure 2: How Indian companies are putting AR/VR to use

These XR use cases are just the tip of the              captured as data for new uses—or misused in the
opportunity iceberg. As business leaders                wrong hands. And the costs—physical, mental
continue to evangelize XR in India, the                 and social—of fixing mistakes or compensating
opportunities will grow in frequency and size.          for misuses could be steep. Clearly, XR must
                                                        be built and deployed in a responsible, secure
However, XR also presents new, under-explored           environment. That XR is at a nascent stage
risks. The blurring of physical and virtual             in India is a silver lining as stakeholders can
boundaries poses urgent questions around                evaluate the potential risks upfront and develop
reality, trust and mental health. Our intimate          public policies or design technological solutions
feelings, behaviors and judgments may be                to prevent, or at least mitigate, those risks.

                                                                                                           3
Greater Engagement
Comes with New Risks
Let’s take a look at four key risks that XR presents:

                       Allows Access to Sensitive Data
                       XR adds more complexity to the data-driven world of business.
                       While data related to personal identity and digital credentials have been
                       on companies’ radar, XR opens up new frontiers of sensitive data centered
                       on feelings, behavior and reactions that can be captured and monetized.
                       But such data has high potential of being misused by motivated players.
                       The Personal Data Protection Bill, 2019 (also known as PDP) is a step in
                       the right direction to protect such data as it not only covers personally
                       identifiable data, but also sensitive data such as health records, biometrics,
                       as wells as religious and political beliefs.11

                       Facilitates Fake Experiences
                       In today’s world, digitally disseminated news, whether fake or real, spreads
                       like wildfire and influences opinions and decisions. According to a survey,
                       one out of two Indians said they had received fake news in the 30 days
                       leading up to an election.12 Such fake experiences could result in political,
                       economic and social risks, apart from creating burdens for stakeholders.
                       For example, YouTube recently had to commit US$25 million to get rid of
                       fake news on its website.13 Wider adoption of immersive technologies
                       could exacerbate the issue of people falling for fake experiences and
                       acting upon them.

                       Heightens Vulnerability to Cyberattacks
                       In 2018, India fell prey to an average of 1,852 cyberattacks per minute.14
                       The average cost per breached record in India is US$64, a substantial
                       loss, according to the Data Security Council of India.15 With XR promising
                       to enable many critical use cases such as remote surgery and field
                       monitoring, the risks of sensitive data hacks and extortion are not limited
                       to business loss alone—they could potentially cost lives!

                       Exacerbates Cyberbullying
                       According to a survey conducted by Symantec in India, nearly
                       80 percent of the respondents said they faced some form of
                       cyberbullying. Of them, roughly 63 percent faced online abuses and
                       insults, while 59 percent were subjected to false rumors and gossips
                       that hurt their image.16 Moreover, 37 percent of parents in India—higher
                       than in any other country in the world—believe their children have been
                       cyberbullied.17 Given that children’s use of technology is on the rise,
                       an immersive environment with virtual characters could provide fertile
                       grounds for heightened cyberbullying, damaging their mental health and
                       well-being.

                                                                                                     4
Actions for Businesses
and Policymakers
While the risks posed by extensive use of XR will manifest themselves as we go further along,
companies and policymakers need to address those risks as timely and optimally as they possibly
can. Responsibility and ethics must be baked into the way XR solutions are built and designed, and
not after they are deployed. Here are three ways in which businesses and policymakers can manage
those risks:

01 Bring in the Experts                            02 Accelerate Wider Adoption
An immersive environment is complex;                    with the Right Infrastructure
it involves emotions, impulses and behavioral     For responsible XR to thrive, policymakers in
reactions, which need careful assessment by       India must enable a conducive infrastructure
experts if companies are to design responsible    comprising elements such as high-speed
XR solutions.18 While business leaders chalk      connectivity, content, device and apps. High-
out a market vision for XR, they must consider    speed connectivity—critical for applications
other factors such as mental health, social and   such as remote surgeries where even a few
behavioral risks, and regulatory policies that    seconds’ lag could have severe ramifications
could come into play in virtual settings.         for human life—calls for a robust telecom/
An ecosystem based on alliances and               broadband infrastructure. Businesses need such
partnerships with diverse experts, from           infrastructure to create cost-effective devices
neuroscientists and psychologists to lawmakers    and apps that are affordable for the masses.
and entrepreneurs, could provide the ideal        Some regions have basic infrastructure necessary
structure for designing and deploying             to leverage XR successfully. InGage Inc. develops
responsible XR solutions.                         specific XR content for the Tamil Nadu’s police
                                                  department to help train employees more
Business leaders could also become members        effectively for crime scene investigations.20
of XR associations and consortiums to discuss
best practices with industry peers. One such
                                                   03 Incentivize Innovation
association is IAMAI (Internet and Mobile
Association of India), which recently formed      Policymakers could become catalysts in the
an expert committee to focus on developing        development of XR through effective and
and promoting an AR/VR ecosystem in India.        targeted measures. In a developing country
The committee aims to work with the Indian        like India, they could offer policy support
government, industry and startups to foster       for incubation centers that nurture socially
innovation in this space.19                       responsible companies, which offer skill-
                                                  building, health, education, employment
                                                  opportunities, and more. The Kerala government-
                                                  backed incubator—Kerala Startup Mission
                                                  (KSUM)—has set up an XR Center of Excellence
                                                  in partnership with cross-platform gaming
                                                  company Unity. KSUM provides funding to
                                                  several XR startups along with free access to the
                                                  commercial licenses of Unity, a 3D development
                                                  platform that offers developers the tools to
                                                  create interactive 2D, 3D, VR and
                                                  AR experiences.21

                                                                                                     5
Securing the Virtual Future
Immersive technologies must be developed responsibly to ensure
wider adoption and acceptance. That calls for business leaders,
policymakers and other stakeholders in India to be aligned on a shared
vision and execute it to provide a secure, nurturing environment
for such technologies to grow and thrive. In such an ecosystem,
businesses could focus on customer experience or product value, while
policymakers could make data security a priority. An organized effort by
all parties would benefit customers and help scale these technologies
more rapidly, paving the way for their successful rollout in the country.

                                                                            6
References

1.   IDC, Commercial and Public Sector Investments               13. Ivan Mehta, The Next Web, It’s not just WhatsApp –
     Will Drive Worldwide AR/VR Spending to $160                     India’s fake news problem plagues several popular social
     Billion in 2023, According to a New IDC Spending                networks, December 2018, https://thenextweb.com/
     Guide, June 4, 2019, https://www.idc.com/getdoc.                in/2019/01/29/its-not-just-whatsapp-indias-fake-news-
     jsp?containerId=prUS45123819                                    problem-plagues-several-popular-social-networks/

2.   Nasscom, Growth of Immersive Media –                        14. News18, 1,852 Cyber Attacks Hit India Each Minute Last
     A Reality Check, 2019, https://www.nasscom.in/                  Year; Mumbai, Delhi Most Affected, September 3, 2018,
     knowledge-center/publications/growth-immersive-                 https://www.news18.com/news/tech/1852-cyber-attacks-
     media-reality-check                                             hit-india-each-minute-last-year-mumbai-delhi-most-
                                                                     affected-2295963.html
3.   Business Standard, Number Of Smartphone Users In
     India Likely To Double To 859 Million By 2022, May          15. Yatti Soni, Inc42. India Second Most Affected Country
     10, 2019, https://www.business-standard.com/article/            Due To Cyber Attacks: Report, May 3, 2019, https://inc42.
     news-cm/number-of-smartphone-users-in-india-likely-to-          com/buzz/cyber-attacks-india/
     double-to-859-million-by-2022-119051000458_1.html
                                                                 16. Incognito Forensic Foundation, How to Prevent Cyber
4. Amit Mozar, The Virtual Assist. Immersion VR fest 2019:           Bullying – Anti-Cyber bullying Laws in India, https://ifflab.
   Shaping India’s AR/VR Growth Story, March 3, 2019,                org/how-to-prevent-cyber-bullying-anti-cyber-bullying-
   https://thevirtualassist.net/immersion-2019-india-first-ar-       laws-in-india/
   vr-conference/
                                                                 17. The Wire, Indian Children Most Cyber-Bullied in the
5.   Ingage, L&T Case Study, https://www.myingage.com/l-t-           World: Study, October 28, 2018, https://thewire.in/tech/
     case-study/                                                     indian-children-most-cyber-bullied-in-the-world-study

6.   Hindustan Petroleum, Hindustan Petroleum Corporation        18. Laurence Morvan, Armen Ovanessoff, Marc Carrel-
     Limited Sustainability Report 2018-19, https://www.             Billiard, Francis Hintermann, Accenture, A responsible
     hindustanpetroleum.com/documents/pdf/HPCL_                      future for immersive technologies, May 15, 2019,
     Sustainability_Report_2018-19.pdf                               https://www.accenture.com/in-en/insights/technology/
                                                                     responsible-immersive-technologies
7.   Riya Pahuja, The Economic Times, Here’s how Lodha
     Group delivers seamless customer experience, projects       19. Money Control, IAMAI forms AR/VR committee to
     on time, August 27, 2019, https://cio.economictimes.            promote the technologies in India, October 29, 2018,
     indiatimes.com/news/strategy-and-management/                    https://www.moneycontrol.com/news/technology/iamai-
     heres-how-lodha-group-delivers-seamless-customer-               forms-arvr-committee-to-promote-the-technologies-in-
     experience-projects-on-time/70843126                            india-3099341.html

8.   Urban Ladder, https://www.urbanladder.com/living-           20. Ingage, Case Study: Tamil Nadu Police Training Academy,
     spaces                                                          October 16, 2019, https://www.myingage.com/tamil-
                                                                     nadu-police-project-case-study/
9.   Nandita Mathur, Live Mint, AR, VR can help guests make
     the right selection: OYO’s Anil Goel, November 25, 2019,    21. Aman Rawat, Inc42, Here’s Why Kerala Might Become
     https://www.livemint.com/companies/start-ups/ar-vr-             India’s Hub For AR/VR, November 16, 2019, https://inc42.
     can-help-guests-make-the-right-selection-oyo-s-anil-            com/buzz/heres-why-kerala-might-become-indias-hub-
     goel-11574675729993.html                                        for-ar-vr/

10. Bhavya Kaushal, Entrepreneur, Byju’s Acquires California-
    based Educational Gaming Start-up, January 17, 2019,
    https://www.entrepreneur.com/article/326499

11. Nishith Desai Associates, Augmented, Virtual and Mixed
    Reality– A Reflective Future, September 2019, http://www.
    nishithdesai.com/fileadmin/user_upload/pdfs/Research_
    Papers/Augmented_Virtual_and_Mixed_Reality.pdf

12. The Economic Times, 1 in 2 Indians receiving fake
    news via Facebook, WhatsApp, April 9, 2019, https://
    economictimes.indiatimes.com/news/elections/lok-
    sabha/india/1-in-2-indians-receiving-fake-news-via-
    facebook-whatsapp/articleshow/68798051.cms

                                                                                                                                 7
AUTHORS
REKHA M. MENON
Chairman and Senior Managing Director
Accenture in India
rekha.m.menon@accenture.com

PRADEEP ROY
Principal Director
Accenture Research
p.roy@accenture.com

SHRUTI SHALINI
Research Manager
Accenture Research
shruti.shalini@accenture.com

ACKNOWLEDGMENTS
The authors would like to thank Gargi Chakrabarty, Gaurav Khetan and
Armen Ovanessoff from Accenture Research for their contributions to this report.

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