XR for Business

XR for Business

By Alan Smithson from MetaVRseBusinessTechnologyArts
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XR for Business episodes

  • Making Everyone an Expert, with Scope AR’s Scott Montgomerie

    The old-school way to train someone

    for a task involves memorization, repetition, and practice, in order
    to make it like second nature. Not only is that time-consuming, but
    also, people aren’t very good at it. So why train, when AR makes it
    obsolete? Scope AR aims to help companies get out of old habits, and
    CEO Scott Montgomerie drops by to explain how.

    Alan: Today’s guest is Scott

    Montgomerie from Scope AR. Scott is the CEO and co-founder of Scope
    AR, a global leader in developing augmented reality solutions and
    products for industrial clients focused around field maintenance,
    manufacturing, and training. As the pioneer of utilizing AR for
    industry support and training, Scope AR are partnered with technology
    leaders such as Google and Microsoft. Since founding the company in
    2011, Scott as one of the first executives to get augmented reality
    tools in use by multi-billion dollar corporations. Having launched
    many AR firsts, Scott has become one of the industry’s thought
    leaders and visionaries. He’s shared his knowledge and spoken about
    some of the most innovative uses of AR at several leading
    conferences, including South by Southwest, Augmented World Expo,
    Unity Vision Summit, and XRDC. Some of the clients include Unilever,
    Prince Castle and Lockheed Martin. To learn more about Scope AR,
    visit scopear.com. Scott, welcome to the show.

    Scott: Thanks a lot, Alan.

    Alan: Yeah man, I’m really super

    excited. We’ve been kind of chatting offline and it’s amazing, the
    work you guys are doing and you’re starting to really see this uptake
    of augmented reality being used in enterprise. Can you maybe give
    people a 10,000 foot view of Scope AR, what you’re doing, and who
    your clients are, and what they’re using it for?

    Scott: Yeah, sure. So we really

    view that augmented reality is a way of interacting with the world in
    a way that’s much more intuitive, the way that we evolved with our
    hands and our eyes. And so we really view that there’s a huge market
    central there. I think it was a stat out there that said that, 90
    percent of Silicon Valley is focused on the worker that’s at their
    desk, using computers and screens. And there’s a vast market out
    there that is untapped, in these field workers that are using their
    hands and their eyes. And so if we can use augmented reality to get
    them the information they need, at the time of need, and really help
    them become an expert when they need to know that information. And
    like I said, we think that’s a huge market. So we really approach the
    problem in two different ways with our products. The first is a
    remote assistance capability. So we were the first to market with a
    product called Remote AR, we launched in 2015. So it was far before
    any of the other 30 companies that are out there today. The idea is
    that it allows you to communicate over video between a technician and
    an expert. So it’s almost like FaceTime. If you’re looking at a piece
    of equipment — maybe a car engine — you take your phone or a pair
    of smart glasses like a Hololens, and you can look at this piece of
    equipment and transfer this video back to somebody with expertise.
    And this expert can now draw on their side of the screen, and get a
    really good remote guide instructions. So the problem with something
    like FaceTime is that the communication channel is not wide enough to
    provide really good instructions. When was the last time you actually
    communicated with a mechanic over the phone or over FaceTime? There’s
    no chance.

    Alan: Never.

    Scott: Yeah, exactly. It would

    probably be very painful for him to guide you how to replace
    something simple like a spark plug. “It’s that one right there.
    No, to the left. No, no, the other left!” But with augmented
    reality, it’s a lot easier. You can just point, drop an arrow, or
    some other annotation, communication channel’s much more rich. The
    second capability is all about work instructions. We define work
    instructions as any type of linear instruction that can show you
    step-by-step how to do things. Going back to the mechanic example,
    now this mechanic could maybe load up some instructions for you, and
    it would overlay a 3D model on top of that car engine. Nice and rich
    animations showing that you got to take a screwdriver, undo the
    screw, and… It’s a really intuitive instruction. So that can be
    applied to anything from training, to meetings instructions, to
    manufacturing instructions. The whole purpose of the company is all
    around making everyone an expert. So either through real time
    guidance, allowing an expert — who understands what he’s doing — to
    transmit his knowledge in real time in an efficient way to a remote
    technician, or by loading up these instructions to provide that
    technician really intuitive instructions such that you might actually
    not even need training.

    Alan: Well, I got to try

    something similar at the LiveWorx Conference. I pulled apart a brake.
    There was a brake caliper, I held up an iPad, it said “Pull the
    pin. Unscrew this.” And in four or five steps, I had
    disassembled the brake calipers and reassembled it. I have never done
    that before in my life. And I was able to do it. And something else
    that I think is amazing is, I had this RealWear device on, where I
    could see a screen in front of me — it was a tiny little screen —
    and I was able to repair an air filter on a giant John Deere tractor.
    I don’t know where the air filter is. I’ve no idea. But it walked me
    through step by step by step how to do it. And I think as we move
    into exponential growth, these types of technologies are not only
    going to be nice to have, but they’re going to be a must-have in all
    enterprises.

    Scott: I totally agree. As

    businesses need to always improve the bottom line, this is the way to
    do it, by making your workers more efficient, getting them with the
    knowledge that they need. That’s a great way to make them a much
    better worker. Do their jobs better, and safer, and faster. There’s
    also some pretty massive macroeconomic benefits to this as well. We
    keep hearing about the aging workforce and how businesses literally
    can’t find good workers. And a lot of those original workers that
    have been in their careers for 35 years are leaving their jobs.
    Knowledge transfer between those older workers before they leave, and
    younger workers, to get them trained up as fast as possible is really
    important. AR really has a huge benefit there as well.

    Alan: Let’s talk numbers,

    because it’s one thing to say “AR provides better value.”
    But, let’s put it this way: If any enterprise in manufacturing, for
    example, were to see a 5 to 7 percent increase in efficiency, that
    would be reason to celebrate. And you guys are seeing numbers that
    are 10x that. Maybe let’s talk about Unilever, one of the case
    studies you have listed on your Web site.

    Scott: We went to the factory in

    Gloucester, UK, and we introduced our remote assistance application
    into the factory. We saw some pretty great results in reduction of
    downtime. The use case around this factory was an ice cream factory.
    The line was going down more often they’d like. The problem is, this
    is a clean factory; to enter the actual facility, you have to go
    through a clean room process that takes a couple hours. It wasn’t
    necessarily that fixing the line was difficult. It was that the guy
    that knew how to fix the line wasn’t actually there. So whenever
    something went down, they had to call this guy, he had to drop what
    he was doing, he had walk across the campus to enter the clean room,
    and then go and fix the problem. This was multi hours before they
    could even start fixing the problem. What we did is we introduced our
    remote assistance application. So now when they call the guy for
    help, the guy can start guiding these frontline technicians on how to
    solve the problem. And quite often the problem is fairly simple, it’s
    “go replace this thing” or “it’s just a fault in this
    switch.” We were able to reduce their downtime by about 50
    percent.

    Alan: You reduced their downtime

    by 50 percent. Now, for every minute of downtime, there’s a specific
    cost for that: €80,000 a month in productivity.

    Scott: Yeah. And that was on

    that one factory line at one facility. So scaling that across is
    pretty ridiculous return on investment.

    Alan: So 50 percent, you’re

    cutting their downtime in half, which saves them 80 grand a month.
    And your solution costs a fraction of that.

    Scott: That’s correct.

    Alan: Why isn’t every company

    doing this?

    Scott: Part of challenge is that

    change is hard, especially the executives. They’ve been doing the
    same thing that, quote unquote “works,” for the past few
    decades. It’s pretty tough for them to buy into. “Oh, there’s
    this new technology that’s putting up these types numbers, are they
    repeatable?” Another customer similar to Unilever, I was
    overhearing, one of my partners would call with one of the C level
    execs at this company. We’d already gone through a pilot with similar
    numbers to Unilever. And this exec was like, “That’s great. But
    have you actually replicated this?” We kind of responded to them
    — it was the innovation team we’re talking to — “Listen, we’re
    seeing 50% reduction in downtime. Even if these are ridiculously far
    off — by an order of magnitude — this is still a very good
    investment and we should probably implement this across the board.”
    It’s just that change, it’s almost too good to be true, which is a
    real big problem. With one of our other customers, Lockheed Martin —
    I can talk about those numbers in a second — but initially when the
    results came back, they were far too good to be true. So much so,
    that they told them to go back and do it again a second time, to
    prove it.

    Alan: You’re the second person

    to say this. I spoke to Mohamed Rajani from Macy’s, and they
    conducted an experiment with one location, using VR for sales and
    marketing. And they saw 65 percent increase in sales conversions. 65
    percent!

    Scott: Wow.

    Alan: And they’re like,

    “something’s wrong.” So they did it with six locations,
    still 65 percent. So rather than roll it out slowly, they rolled it
    out across their entire enterprise, so now they have over 100
    locations. And now their average — across the 100 locations — is
    still 45 percent increase.

    Scott: Wow.

    Alan: So the numbers are real.

    They may sound too good to be true, but they are true. That is the
    transformative power of virtual/augmented/mixed reality. This
    technology is the most powerful technology we’ve ever invented. It’s
    crazy.

    Scott: It’s merging the power of

    computers and their vast capacity to form infinitely fast
    calculations and have infinite memory, with the problem solving and
    mechanical ability of the human race. We as humans, we’re really good
    at individual problem solving, but repetitive calculations, we’re not
    super accurate. Whereas computers do it correctly every single time.
    The whole reason for training is repetition, so that you can hammer
    something into our brain so that when you actually need that
    procedure to be there, it’s there. But if you can rely on perfect
    infinite memory of computers and then transfer that information into
    your brain in an efficient way when you need it, that’s the whole
    benefit. So it’s really– we’re becoming cyborgs. It’s essentially
    what this is. But it’s for the benefit of the human race.

    Alan: Yeah, it’s crazy because

    this has the potential to disrupt the entire education system. Our
    entire education system is predicated on forcing people to memorize
    things. We don’t need to do that anymore.

    Scott: Absolutely.

    Alan: We can get the answer to

    anything, as needed, in real time, that we need them. And with the
    introduction of cloud computing, edge computing and 5G, we’ll be able
    to get answers to literally anything in context to the world around
    it. So I’ll be able to look at a machine with my smart glasses on,
    and it’ll automatically walk me through step-by-step how to fix it.
    That’s what you’re doing, right?

    Scott: That’s exactly what we’re

    doing, yep.

    Alan: So if that’s the case,

    then you’ve got Lockheed Martin, Unilever, you’ve got a bunch of
    other clients. They’re all doing this. Is anybody starting to roll
    this out at scale now? Is that the next step? They run this through
    into their whole system and into their organization?

    Scott: Yeah. We’re definitely

    starting to see scale across organizations. What are the challenges
    with this technology? Is it so new, that you kind of have to be
    careful with it? If you have a pilot that goes sideways, that can
    derail the whole thing. With one customer we actually implemented it
    in, I think three factories, and one of the factories had a really
    bad experience. They chose a really bad use case. They weren’t really
    careful about what they were doing. We actually told them that what
    they’re trying to do was not possible. And lo and behold, yep, it
    didn’t work. We had really great results in the two other factories.
    The third one kind of derailed the whole thing. So these days, we’re
    really making sure that we handhold our customers to make sure that
    they are using it in a way that’s appropriate, and are going to have
    a good experience. There’s just a few fundamental things in the
    technology that cause problems. For example–

    Alan: Yeah, I was going to say,

    can we unpack that, because people listening: Listen up! This is the
    moment! This is the education!

    Scott: It’s not a

    one-size-fits-all technology. And I think that’s where executives are
    getting confused. There’s so much FUD out there. And we’re putting up
    these results that are too good to be true, and in some instances,
    they are. So, for example, if you’re using the Microsoft Hololens, if
    you look at a shiny surface — the side of a big beer tank — it’s
    not going to track, because the lasers on the Hololens get reflected
    and confuse it, and so you get a lot of drift. The Hololens doesn’t
    work particularly well outside, because the lasers get drowned out by
    sunlight. There’s these little gotchas of things that, unless you
    really have a deep understanding of the technology, you wouldn’t
    expect, right? When we do implementations, first of all, we work with
    our customers very closely. I think one of the reason why we win
    deals, versus our competitors, is we’ve been told that our customer
    support is by far the best. And that’s why we win deals. It’s because
    we handhold these guys. We’re not trying to grow too fast. We’re
    trying to make them successful. Choosing the right pilot, get them
    the right numbers so that they can have success, and then we can
    teach them how to scale this into production, so they have the best
    possible outcome. The last thing we want to do is have a poor
    experience for anyone. Through that education, we can make those
    people our champions in those organizations, make them successful.
    And really, these people can really improve their careers by becoming
    experts in this, and grow it throughout the organizations.

    Alan: Are you seeing people in

    these organizations starting to put together teams specifically for
    XR technologies?

    Scott: Yeah, we are, yeah. And

    it’s kind of funny, because a few years ago these teams were
    basically Unity developers. They hired a bunch of Unity guys to
    create one-off proof-of-concepts, without really realizing that a
    scalable solution existed. The whole reason we built our software was
    so that it didn’t require anybody to have to code, because coding is
    not scalable, it’s not maintainable. It takes months to develop a
    single application for one time use. Then you basically throw it
    away.

    Alan: Yeah, I know.

    Scott: What we want to do is we

    want to enable guys like documentation specialists and mechanical
    engineers to be able to create content very quickly. Something that a
    team of Unity developers would take two months to develop, you can do
    pretty much in about a day or two with our platform. So it’s much,
    much faster. The iterations are much faster. And you can really get
    into your pilot and your production a lot faster. And then obviously
    there’s a whole lot of production level stuff or encryption data
    management and all the enterprise readiness.

    Alan: What are some of the costs

    associated, because I know that’s a question that comes up a lot when
    we’re speaking with customers. How much does it cost to get started?
    What does that look like?

    Scott: You can get into a pilot

    pretty cheaply, five figure range. Like I said, we try to handhold
    our customers, with really low numbers.

    Alan: Give me a number, what’s

    the minimum?

    Scott: I don’t like disclosing

    private pricing publicly. [laughs] These are enterprises and–

    Alan: Yeah, but like, is it a

    100 grand? A 100 grand for an enterprise is nothing. So like, is it
    50 grand, is it 100 grand? What would be a starting number that
    people have to have in mind? Because for a lot of companies we could
    do a 360 video for $5,000. The guy came over and told me “It’s
    not the same.” And they need to understand that there is a
    difference between this.

    Scott: We can definitely get

    started for less than hundred grand, substantially less than hundred
    grand. And then at scale, yeah, it’s in the six figures.

    Alan: So that’s reasonable. An

    hour of downtime on a machine is potentially millions of dollars.

    Scott: Absolutely. One of my

    slides, I think, said something like $50,000 per minute of downtime.
    So get started with a pilot for 50 grand is nothing.

    Alan: I think people need to

    understand that this is not just a regular investment. A lot of times
    companies will invest in technology that gets them marginal results,
    these little incremental improvements. But this is a exponential
    improvement on what they’re doing.

    Scott: Absolutely. This is

    really a generational shift in technology. I think this is going to
    be as big as the Internet and tablets were in terms of
    revolutionizing how people interact with data. This is gonna be the
    same thing, but on a much broader scale on the manufacturing side.
    You go into any given factory, most people are still doing things
    with paper, binders with instructions. I remember I was on the
    assembly line at Boeing a few years ago, and they told us they have
    one binder, a singular binder that’s outside of the assembly area.
    Because it has to be one binder, because if the instructions change,
    you can’t have a duplicate or an old copy sitting around. That’s
    incredibly 1990s, so we were pretty shocked at the lack of IT in that
    process. So just having the ability to have an electronic version of
    these instructions that’s up to date is pretty revolutionary. And
    then being able to give your workers the information they need,
    contextual information is just a sea change in how these companies
    operate.

    Alan: Yeah, I think it’s pretty

    revolutionary, and I think one of the questions that’s come up a lot
    is, people don’t want to wear glasses. But what I think people don’t
    understand is, in manufacturing and field service, they’re already
    wearing safety glasses. That’s not anything new.

    Scott: Yeah. Absolutely. I mean,

    I do think we have a ways to go with the hardware. The RealWear
    device is pretty good. It’s got certainly some limitations. But for
    certain use cases, it’s great. The Hololens too, I think is really
    interesting. Can’t wait to see what comes down in the future. I’m
    sure there’s lots of really cool innovations coming up in the next
    couple of years.

    Alan: I think that’s what people

    really need to understand, is that this technology, if you go back
    five years, didn’t even exist. We had none of them. Zero. There was a
    couple of Google Glass type things. But in the last five years we
    have come absolute leaps and bounds. I remember going to SBVR and
    Augmented World Expo three years ago, and trying some of these
    things. You know, there was see-what-I-see, pick-and-pack for
    warehousing. And it was so crap that in my mind I was like, “This
    is just terrible. It’s going to be 10 years before this is
    something.” I went back this year, and that same demo was
    absolutely precise and perfect and it just worked perfectly and
    flawlessly. I think the time is now for brands and companies to
    really start investing in this technology.

    Scott: I completely agree with

    you. And if your company is not investing in this technology now,
    your competitors are. And so when they start rolling out later this
    year, next year, they’re going to start seeing these ridiculous
    return on investment gains. And if you’re not even building a team
    that’s familiar with this technology and certainly thinking about the
    change management aspect of it, then you’re gonna be left behind.

    Alan: And we’re already starting

    to see all the venture capital companies, they all invested in these
    platforms and stuff. Now, you guys are venture backed, right?

    Scott: Yes, we are.

    Alan: So venture backed

    companies are like Scope AR. But what they are failing to realize is
    that content companies are actually getting scooped up as well. PDC
    just bought a content studio — and I believe it was Accenture or…
    I think it was Accenture, was one of the two, anyway — they bought a
    content studio recently and New York Times bought a content studio.
    So there’s kind of this– you need the platforms, but you also need
    the content, which is why we started the XR Ignite program, to get
    these companies ready for that.

    Scott: Absolutely.

    Alan: How are you finding the

    content creation, for what you guys are doing? Are you building
    custom content, or is it just– the platform serves as as its own
    standalone content creation system?

    Scott: We can build custom

    content. We have a team called Creative Services Team that will
    generally do a quick Google concepts and consultant pilot projects
    for companies. As I said, part of our value proposition is really
    that customer support. So we really want an organization to be
    successful. So when they’re consulting on a business cases and use
    cases, the creative services team can go in there and help and
    creating content is part of that. But generally we like to only
    create a very simple project for an organization, and then we like to
    hand it over with our products and allow their team to start
    creating. So that’s been very successful. We need to handhold those
    creators. But that’s the only way we’re going to get scale, is by
    teaching people how to use this revolutionary tool. Where I kind of
    see this is, that this is like introducing PowerPoint in like 1985.
    Unless you’ve seen what a really good PowerPoint deck looks like, you
    you don’t even know how to use it.

    Alan: You’re creating the

    standards.

    Scott: Yeah, I think it’s more

    showing what’s possible in kind of best practices. We like to call
    our tool “PowerPoint for augmented reality,” because it’s
    drag-and-drop, you don’t need to code, you don’t need to hire an army
    of Unity developers to create your proof of concepts. Mostly it’s
    people that don’t know how to code that use it and it’s all
    drag-and-drop. Those people typically train other people in their
    organization. That’s how we grow.

    Alan: That makes sense. So let

    me ask a question. You’ve got these kind of numbers on the website,
    reductions in downtime, and that sort of thing. What are some of the
    other KPIs that you guys are using to measure success?

    Scott: There’s actually quite a

    few KPIs that we track, depending on the use case. This is part of
    discovery with our sales team and our customer support team, looking
    at those use cases to make sure the customer has success. So in a
    manufacturing example, we’ll look at overall efficiency. So, how long
    it takes them to manufacture something. So, for example, the by now
    famous Lockheed Martin numbers are pretty astounding. They track
    things in terms of what they describe as the OODA loop: it stands for
    “Observe, Orient, Decide and Act.” For any given procedure,
    about 50 percent of the time it’s that first OOD part, Observe,
    Orient, Decide. What that means — I’ll give you a concrete example
    — they’re building a space shuttle with technology, they’ve done a
    whole lot of case studies around a whole bunch of different
    procedures and torque fastening. So on the space shuttle, there’s
    something like 3,000 fasteners on the space shuttle. And so in the
    old world, they would go into a binder. They would flip to the page
    that had a table of each of these fasteners, and they’d go find
    Fastener 1. They’d memorize the torque setting from this table. They
    would go find Fastener 1 in the real world, and they would set their
    torque setting, and set it. And then they would crawl out of the
    space shuttle, go back to the binder, find torque setting 2, set
    their torque wrench, go back in the space shuttle. So this overhead
    of reading the manual and then going back in, crawling in, was
    accounting for about 50 percent. And again, this was not an isolated
    case study, this is replicated across dozens of case studies now.

    And so what they were able to do,

    simply by putting the information in the Hololens. So now in the new
    world, the technician goes in the space shuttle. It shows the
    location in 3D space of the fastener number 1. And right above it is
    the torque setting. So now the guy sets his torque wrench, does it.
    Then it flips the number 2. In 3D space, it shows him where this is.
    So they’re seeing a reduction in that overhead that they call
    time-to-information. About 99 percent. So that’s resulting in about
    42 to 46 percent productivity improvements. That’s one of the really
    key metrics we bought is reducing that time-to-information, making it
    so intuitive that somebody doesn’t need to be trained and doesn’t
    need to go back and consult a manual. It’s just right in your
    heads-up-display and being shown to you in a 3D context. You don’t
    even have to do that mental mapping of finding something in the real
    world. In other cases, if we’re talking about a field service
    example, it can be a reduction in downtime or first time fixed rates
    or a first time diagnosis rates. Meantime to resolution is another
    metric. So it really depends on the use case. We’ve got a pretty
    robust return-on-investment calculator that we work with our
    customers on for any given pilot they do. And it’s got about a dozen
    different metrics in there, just depending on their use case. It
    could also be a reduction in travel time. That’s a huge expense. If
    you no longer have to fly somebody out to a remote field in Alaska to
    fix something, that can be a huge cost savings.

    Alan: It’s interesting you say

    that, because we had Jonathan Moss, the head of learning for Sprint
    on, and they implemented augmented reality training on the phone. So
    they– it’s for retail workers. They pull out their phone, they point
    it at the thing, and they learn all about the new features. They were
    measuring all sorts of different KPIs and the one they didn’t think
    to measure — which became the important one — was travel. That
    saves so much time and money, not having to fly people around, that
    it saved them millions and millions of dollars because you’re talking
    30,000 people. It’s crazy, it scales really quickly when you push it
    out. Then they actually had one more unintended consequence of that.
    The people that we’re learning from on their tablets, they actually
    started using their learning modules to teach their customers,
    because they were just so good. “Let’s use it.” There’s
    definitely all sorts of benefits to this technology as well. And one
    thing you’ve touched on right at the very beginning, the aging
    workforce is starting to retire. And being able to capture experts’
    knowledge is vital.

    Scott: Yeah, absolutely. As a

    matter of fact, we just rolled out a feature right before the
    Augmented World Expo called Session Recording. So the idea is that
    while you’re on a call between this technician and expert, we’re
    recording the call, but we’re doing it another way, recording it in
    three channels instead of two. So recording the audio, the video and
    then the 3D annotations, and either the point cloud or the mesh of
    what you’re looking at. So that we can then replay those annotations
    back on the original piece of equipment. So in this way while you’re
    on a call between this technician expert, you’re literally in the
    process of transferring knowledge from a person with knowledge to a
    person without knowledge. And if you can record that and then use it
    for future workers and potentially brain into a training type
    scenario, that’s incredibly powerful.

    I think as time goes on, we’re gonna

    start seeing pretty monumental shifts. I mean, there’s so many
    macroeconomic factors. I could talk for hours about this, but one of
    the big ones is that previously — let’s call it 10 years ago —
    customers used to buy an engine and they own the engine. And any
    maintenance on it, they paid for all that they had to do. So they
    would probably call up the engine manufacturer and get support and
    they would pay a pretty penny for that support, 250 bucks an hour or
    something like that. And so for the manufacturer of that engine, if
    it broke down, it wasn’t their problem. In fact, it was actually a
    profit center for them to send out their technicians to go fix their
    faulty engine. But these days, the whole business model has shifted.
    They’re buying horsepower. They’re not buying furnaces, they’re
    buying BTUs. So it’s almost like an SLA type model. And so now when
    something goes wrong, it’s up to the manufacturer to go out and
    service that. Now it’s a cost center. What this means for the
    workforce is that previously, because of the profit center, if you
    had an older worker and a younger worker, it would make total sense
    for them to go out to the fields and work with each other for six
    months. This young apprentice could learn tons of stuff on the job.
    But now it’s not really economical. You want to shorten those
    training times because it’s a cost center. That means that these
    younger people in the workforce are actually getting less trained. We
    can’t bring in this technology soon enough, just because of so many
    different factors.

    Alan: It’s pretty impressive. Of

    all of the interviews we’ve done, you’re episode 40 of the XR for
    Business Podcast, and it’s such a varied group of people, and
    training and real time collaboration comes up in almost every call.
    So it’s interesting that you guys have been doing this– you’ve been
    doing this since 2011, right?

    Scott: Loosely. Really, we

    started taking it full time in about 2015.

    Alan: How did you end up saying,

    “Oh, I’m going to make smart glasses for the future of
    manufacturing?”

    Scott: It was a bit of a windy,

    twisty tale. I developed some computer vision technology in 2010 for
    a previous endeavor that didn’t pan out. I thought this might be cool
    to apply to augmented reality. So my first ambition was in marketing
    and advertising. And of course, even today we’re not seeing a whole
    lot of penetration in working in advertising in AR. I was trying to
    recognize billboards and magazine covers and stuff. At the time I was
    in Edmonton and I was going to Toronto trying to work with
    advertising executives now like, “Yeah, I don’t see the use for
    this.” We landed a couple small contracts, but really the big
    break was a big industrial company came to us and said, “Hey, we
    use this for training.” We thought, “Oh, that’s a cool
    idea.” So we did a quick proof-of-concept for them. And this was
    on an iPad 2 back in 2011. They thought it was amazing, but we really
    wanted a pair of AR glasses. They said, “Here is a big pile of
    money. Go buy every pair of AR glasses on the market. And if
    nothing’s suitable, then build some..” So we ended up randomly
    meeting with Epson at the time they had the Epson BT-100s, which
    didn’t have a camera on them. We went to the project manager and I
    said, “hey, can we hot-glue a camera on there?” And they
    said, “Yeah, I don’t see why not.” And so we ended up doing
    was build these glasses, where we hot-glued this webcam on it, the
    webcam ran to a laptop where we did the computer vision calculations,
    and then we used the external monitor plug and hacked to get this
    cable and hacked into the operating system of the glasses to accepts
    this video. And this was kind of one of the proof-of-concepts of the
    first AR glasses.

    And so we showed this at a trade show

    in 2012 in Las Vegas. It’s this giant mining trade show that only
    happens every four years. And it was a bit of a novelty for this
    organization. And we had center stage. It was an amazing location.
    But we were only supposed to show the demo like three times a day
    over three days. And we ended up showing it over a hundred times. And
    every time we showed it, it was crowded by about a hundred people
    around me like, “Oh my god, it’s the coolest thing ever seen.
    This is going to revolutionize training.” And this one guy’s
    story kind of sticks out: he says, “I’ve been maintaining this
    exact piece of equipment for my entire career — it was like a
    quarter million dollar rock drill — maintained this for my entire
    career, 35 years. I’ve probably shortened the lifespan of this
    equipment by half by doing it the wrong way. I’ve trained hundreds of
    other guys to do it the wrong way, and so I probably cost the company
    tens of millions of dollars. So now I’m on my own. I really need this
    technology. How do I get it?” And we kept hearing this type of
    story from a ton of customers. So the lightbulb kind of went off,
    like “Oh, wow, I think we probably found something here.”
    Early on, we really didn’t know– I mean, just like yourself, you
    didn’t really know what to build. But we started getting contracts
    from guys like Boeing, and Toyota, and NASA to build out
    proof-of-concepts. And through these initial proof-of-concepts we
    realized that, “Oh wow, yeah, this is gonna be the future. A
    scalable platform is the way to take advantage of this technology. We
    could potentially be the PowerPoint of augmented reality.” In
    2015 we all decided to go full-time. The tea leaves were changing.
    Google Glass had launched, ODG had a pretty good pair of glasses at
    the time. We thought this time the market would be ready to go, by
    the time it gets going. Here we are.

    Alan: It’s funny. I thought I

    was OG. I got in in 2015. I was like, “Yeah, I’m the OG.”
    But you are like, you’ve been in it. Before we get going. If you
    could say to any customer “here’s the first step you need to
    do,” what would that first thing to do, so that they can start
    leveraging this power of this technology?

    Scott: I think the first step is

    choose somebody who has been in the industry for a while and really
    understands what they’re doing, and can identify that use case to
    make you successful. You know, if you’re out of innovation teams,
    which is where we typically like to work these days, is, you know, a
    VP or somebody that really wants to implement this at scale, get in
    touch with someone and get started. Try really quick POC as fast as
    possible, just get some initial metrics, see if it works, and then
    start thinking about rolling this out. The sooner you get started,
    the better. It’s going to take time to get people comfortable with
    technology, with how to create it and where it’s best applied. A
    company like ours can really help get you started in rolling.

    33 min
  • Making Everyone an Expert, with Scope AR's Scott Montgomerie
    The old-school way to train someone
    for a task involves memorization, repetition, and practice, in order
    to make it like second nature. Not only is that time-consuming, but
    also, people aren't very good at it. So why train, when AR makes it
    obsolete? Scope AR aims to help companies get out of old habits, and
    CEO Scott Montgomerie drops by to explain how.
    Alan: Today's guest is Scott
    Montgomerie from Scope AR. Scott is the CEO and co-founder of Scope
    AR, a global leader in developing augmented reality solutions and
    products for industrial clients focused around field maintenance,
    manufacturing, and training. As the pioneer of utilizing AR for
    industry support and training, Scope AR are partnered with technology
    leaders such as Google and Microsoft. Since founding the company in
    2011, Scott as one of the first executives to get augmented reality
    tools in use by multi-billion dollar corporations. Having launched
    many AR firsts, Scott has become one of the industry's thought
    leaders and visionaries. He's shared his knowledge and spoken about
    some of the most innovative uses of AR at several leading
    conferences, including South by Southwest, Augmented World Expo,
    Unity Vision Summit, and XRDC. Some of the clients include Unilever,
    Prince Castle and Lockheed Martin. To learn more about Scope AR,
    visit scopear.com. Scott, welcome to the show.
    Scott: Thanks a lot, Alan.
    Alan: Yeah man, I'm really super
    excited. We've been kind of chatting offline and it's amazing, the
    work you guys are doing and you're starting to really see this uptake
    of augmented reality being used in enterprise. Can you maybe give
    people a 10,000 foot view of Scope AR, what you're doing, and who
    your clients are, and what they're using it for?
    Scott: Yeah, sure. So we really
    view that augmented reality is a way of interacting with the world in
    a way that's much more intuitive, the way that we evolved with our
    hands and our eyes. And so we really view that there's a huge market
    central there. I think it was a stat out there that said that, 90
    percent of Silicon Valley is focused on the worker that's at their
    desk, using computers and screens. And there's a vast market out
    there that is untapped, in these field workers that are using their
    hands and their eyes. And so if we can use augmented reality to get
    them the information they need, at the time of need, and really help
    them become an expert when they need to know that information. And
    like I said, we think that's a huge market. So we really approach the
    problem in two different ways with our products. The first is a
    remote assistance capability. So we were the first to market with a
    product called Remote AR, we launched in 2015. So it was far before
    any of the other 30 companies that are out there today. The idea is
    that it allows you to communicate over video between a technician and
    an expert. So it's almost like FaceTime. If you're looking at a piece
    of equipment -- maybe a car engine -- you take your phone or a pair
    of smart glasses like a Hololens, and you can look at this piece of
    equipment and transfer this video back to somebody with expertise.
    And this expert can now draw on their side of the screen, and get a
    really good remote guide instructions. So the problem with something
    like FaceTime is that the communication channel is not wide enough to
    provide really good instructions. When was the last time you actually
    communicated with a mechanic over the phone or over FaceTime? There's
    no chance.
    Alan: Never.
    Scott: Yeah, exactly. It would
    probably be very painful for him to guide you how to replace
    something simple like a spark plug. "It's that one right there.
    No, to the left. No, no, the other left!" But with augmented
    reality, it's a lot easier. You can just point, drop an arrow, or
    some other annotation, communication cha
    0 min
  • Getting 110% Out of Training in 360° Video, with VR Vision Inc’s Lorne Fade

    The top of a wind turbine a hundred

    stories up from the ground is not the best place to be making
    mistakes, but making mistakes and learning from them is the whole
    point of on-the-job training. That’s why VR Vision Inc helps
    companies produce XR training modules, so trainees can make mistakes
    in a safe, controlled environment. COO Lorne Fade drops by to talk
    about it.

    Alan: Today’s guest is Lorne

    Fade, co-founder of VR Vision. Lorne is a serial entrepreneur that
    has built several businesses over the last 15 years. He’s had the
    pleasure of working with some of the world’s largest Fortune 500
    brands and award winning marketing agencies all across North America
    and Europe. His previous agency, Academic Ads, was acquired, and he
    went on to found VR Vision Inc. As the co-founder and COO of VR
    Vision, they’re a virtual and augmented reality startup that’s
    enhancing immersive training outcomes for some of the world’s largest
    brands using VR, AR, and AI technologies. He’s also the founder of
    Reality Well, a healthcare technology platform to improve the quality
    of life for those living in long-term care facilities. You can learn
    more about VR Vision by visiting vrvisiongroup.com. Lorne, welcome to
    the show.

    Lorne: Thanks for having me,

    Alan. Thanks.

    Alan: My absolute pleasure, man.

    We’ve known each other for quite some time through the VR/AR
    Association in Toronto, and we shared some booth space together, and
    it’s always great to see what you guys are working on. I know the
    last time we saw each other, you were showing me an automotive
    manufacturing facility in virtual reality and how you were using
    that. So let’s dive in there. Let’s talk about how you guys are using
    VR and 360 video to make better training.

    Lorne: Yeah, that’s that’s one

    of our bigger use cases with Toyota, where we’re training about
    10,000 employees currently using 360 video, in immersive training
    scenarios in VR. And it works really well for eliminating risk and
    providing a safe environment with zero harm. And it’s totally
    immersive. So the employees that are getting trained in VR, no
    distractions, they can’t be on their phone or anything. It was really
    simple the way we did it. We just storyboarded various scenarios with
    Toyota on various processes, on safety concerns, on their assembly
    lines or processes that were mundane and replicable. And then we went
    out and filmed with a stereoscopic 3D camera, so when they put on the
    headset they feel like they’re there, fully 3D. And we mapped out, I
    guess about two to three minute scenarios, various parts of their
    assembly lines and filmed it all in full 3D and then ported it over
    to VR, added some overlays, some voice overs, some touch points and
    interactivity so that the employees could be trained in a completely
    immersive environment. Nothing like this is, from my knowledge, has
    ever been done before. So it’s really cool to have this type
    opportunity to work on a project like that.

    Alan: So how are they measuring

    success? For example, STRIVR is doing 360 video with Wal-Mart and
    their key performance indicators. They’re measuring training times,
    how long it takes to train. They’re also testing retention rates.
    What are the KPIs that you and Toyota decided on, how to measure
    that?

    Lorne: Yes. Great question. We

    developed a in-house analytics engine for tracking where the user is
    looking, the various touch points of the training scenarios. And
    every user that uses the platform gets their own log-in, so we track
    each user, their effectiveness, and how well they’re being trained
    with the scenarios. And then within the scenarios, there’ll be, let’s
    say, about 20 interactive touch points for various risks, or hazards,
    or processes that the employee needs to learn. And then at the end of
    this scenario, they’ll get a breakdown or a test results screen that
    will get pushed to Toyota’s LMS on the backend so they can see how
    the employee performs. But also within the headset, the user will get
    to see where they performed and get to learn again on the various
    things that they might have missed throughout the course of the
    module.

    Alan: So it’s really giving the

    employees the opportunity to learn through making mistakes, which is
    funny because our whole lives in school, we learn not to make
    mistakes: you get an F, and that means fail, and you’re screwed, and
    you can’t go into university, and it’s beaten into us never to make
    mistakes. But in the real world, we make mistakes every day, and we
    learn from them, and we move on. But this is even better, because
    it’s not the real world. You’re able to make mistakes in the privacy
    of your own headset, you’re not feeling embarrassed.

    Lorne: And it saved you a ton of

    money for Toyota overall. Basically, instead of having an employee on
    a live assembly line making those mistakes, where they would have to
    shut down production, then that could be super costly over time for
    the plant itself. This way they’re able to train in a risk-free
    environment without shutting down of production, so that when they’re
    ready to hit the assembly line – for whatever the processes that
    they’re tasked with – they’ll be way ahead of the game, it’ll cause
    less mistakes and save a ton of money for Toyota overall.

    Alan: So how are you measuring

    that specifically, are you measuring training times?

    Lorne: Yeah, we’re measuring

    training times. We’re measuring efficacy for the employees. And then
    when we put them on the live line, we get to compare and contrast
    based on their test results, how many mistakes they’re making on the
    live line. Now, we’re not fully testing just our training scenarios
    as the end-all, because Toyota has a number of other training LMSs
    and dojos that they’re using for training the employees, but they
    weren’t seeing an improvement overall with the employees that had
    done the VR training.

    Alan: That’s really interesting.

    In your analytics, you mentioned that you’re pushing it to their LMS
    system. How difficult was that, to go from one company to another? I
    would assume there are different ways of working.

    Lorne: The biggest challenge

    there was working with their IT, because they had a pretty strict
    regimen for their firewall. And then accessing it is a very tight
    network. A lot of restrictions, a lot of loopholes we have to go
    through. So it took a couple of months of working with their IT team
    to be able to pass through data from the headsets, and have the
    headsets themselves connect seamlessly to their network, and make
    sure they were all on the same MAC address. It’s actually outside of
    my technical scope. I’d have to ask our IT guy internally here. But
    basically, once we figured out how to pass through their network, it
    was seamless.

    Alan: What about things like

    device management? Because if you’re going to train 10,000 employees,
    how many devices does[sic] that?

    Lorne: That’s definitely a great

    concern that enterprise groups need to be aware of. We’re seeing the
    brands like HTC and Oculus start to catch up with their business
    solutions that are going to start to offer enterprise management. We
    kind of hacked it for the get-go because it wasn’t available as of
    yet. There’s a great company you can look up called 42 Gears that
    basically provide a mobile management solution, that can be ported to
    Android for any devices that are being programmed with Android
    backends. And that allows us to see all the devices on the network,
    push updates through them, and manage them remotely. And then we went
    a step further and we developed a mobile management application for
    tablets and cell phones, so that a practitioner or a trainer that’s
    managing the training serials for the users can manage which modules
    they’re placing the user into, and see where they’re at within the
    training program.

    Alan: Now, is that done from a

    tablet or a phone or something?

    Lorne: Yeah, yeah, it can be

    done from either a tablet or a phone. Anything Android or iOS based.

    Alan: When you’re making the

    scenario– so, for example, take us back to the beginning. You meet
    with Toyota. They say, “Hey, this is great. We want to do a
    trial.” What is the lead time from this first meeting you had,
    to deployment to 10,000 employees. Is that like a year or two years?
    What’s that look like?

    Lorne: I think the development

    timeline was about six months, back and forth to storyboard out all
    the various modules. We started with a proof of concept with one
    simple module to see how effective it would be. They loved the 3D,
    they love the immersiveness of it. So we move forward with five
    modules, and then those films and the whole processing,
    post-production took about a year overall for all five modules. And
    now we’re in talks to scale that through more facilities throughout
    North America. Per module, it really doesn’t take that long. It’s
    just that we have a 360 development production crew, goes on site,
    films, takes about one or two days, and then we take it back and
    post-produce it with various touch points and voiceovers. And that
    whole process for one module takes anywhere between three to four
    weeks, overall. I guess the back and forth that took the longest was
    working with IT and figuring out some of the other complexities, like
    pushing updates to their LMS, things like that.

    Alan: I would think also just

    the simple procurement process. [laughs]

    Lorne: Yeah. Oh, that too.

    They’re very–.

    Alan: Take longer than

    everything.

    Lorne: Yeah. Yeah.

    Alan: Standard across all

    enterprises, yeah. There’s a note to people listening: if you’re
    working in the C suite of a large enterprise, perhaps consider
    figuring out a way to work with startups more efficiently, through
    streamlined procurement processes, because it really is onerous for a
    startup trying to innovate on technology, while trying to run the
    gauntlet that is procurement.

    Lorne: [laughs] And then keep

    your overhead going, and runway.

    Alan: Exactly. Part of the

    reason we started XR Ignite was to really be that – for those of you
    who don’t know, XR Ignite is our community hub and connector – so our
    goal with XR Ignite is to be the connector between startup studios
    and developers and corporate clients, and be that conduit for
    conversations back and forth. What our corporate is looking for – and
    you mentioned some of them, safety, security, networking, device
    management, LMS, integrations – and then bringing that knowledge over
    to startups and saying, “OK, what do startups need to do
    business with corporate?” and that’s streamlined procurement
    processes, faster payments and more streamlined communications. So I
    think it’s a time in a place where we need to really bring everybody
    together. So that’s what we decided to do with XR Ignite.

    Let’s talk about the actual

    experiences, because I’ve tried one, it was really interesting. You
    put on the headset and it was really cool because I’ve never been to
    a car factory, where they build car parts and doors and things, and I
    was in there and there’s this woman stamping giant pieces of aluminum
    and she’s doing her job. And then you have to look for anomalies. You
    have to look for things on the ground, or is she not wearing a
    hardhat, or whatever it is? Did they provide you those things or did
    you look at the space and go, what if we put a banana peel over here
    or…?

    Lorne: We basically work with

    them on the storyboard to provide the highest risk items that would
    be the biggest safety concerns for the employees. Like not wearing
    proper PPEs, walking in the laneways where they shouldn’t be walking.
    Just not using proper safety gear or leaving things in the wrong
    places. And then we went a step further and added our own flair, if
    you will.

    Alan: I love it. Now, were they

    accepting of adding your own flair to that? Because sometimes this
    stuff can be really dry and boring.

    Lorne: The basic secret sauce,

    though, that we provided: we developed this for standalone VR
    headsets and a lot of the standalone VR headsets really max out at 4K
    resolution, whereas we’re filming in 8K resolution. So we wanted to
    push the best quality that we could for the experience, so it was
    completely immersive, was exciting. It had replicability and it was
    scalable. So on our backend for the post-processing side of things,
    kind of did some optimizations with the 360 video to make it appear
    around 6K instead of 4K in the headsets. Reduce some of the
    screen-door effect, really just to optimize the visual aesthetic of
    it so that when they’re playing it in the headset, it just appears as
    best as possible for the experience.

    Alan: I can attest to that. It

    really was a clear situation. It was–

    Lorne: It’s like watching a 3D

    movie. [laughs]

    Alan: It wasn’t even like a 3D

    movie. It was like I was in the factory. But by the time I put the
    headphones on and the headset, couple minutes in and I was right
    there on the factory floor watching this process of stamping these
    things out. I’ll never forget it, because I feel like I was right
    there, watching it. And I got a few of the things wrong, but…

    Lorne: I think that’s the true

    value of VR. It’s being able to replicate any type of scenario that’s
    in the real world but in a safe, controlled environment. And I think
    this works really well for enterprises that have a lot of potentially
    harmful, or carry a high risk-versus-reward type of training that may
    be expensive for onsite, or dangerous for the people that are
    training. There’s another scenario we’re working on right now with a
    wind turbine manufacturer, and they’re developing maintenance
    technician training and it carries a high risk to go up to the top of
    those wind turbines and work on them with a tether. And they’d rather
    have these employees trained in a dojo in a safe, VR controlled
    environment before sending them up hundred stories high to the top of
    a wind turbine.

    Alan: You know, that seems to

    make sense. I went to a talk the other night and they were talking
    about– there was a gentleman who’s making nuclear reactor training,
    for the nuclear reactors here in Ontario. And one of the scenarios is
    the CANDU reactor, which is a huge reactor. It’s maybe 30 feet high
    and it’s got all these little tubes. And in real life, you can’t walk
    in front of the tubes, because they emit radiation and there’s just
    like invisible beam of radiation. So if you walk in front of the
    beam, well, you’re–

    Lorne: Chernobyl.

    Alan: Well, no, you’re just

    going to have a paid vacation. But one of the things that they showed
    is, how it’s managed today is, they literally have a piece of tape on
    the floor. They have duct tape on the floor saying, “Don’t walk
    within these duct tape lines.”

    Lorne: Oh, jeez.

    Alan: That’s the safety

    protocols in a nuclear reactor. So being able to recreate that with a
    Hololens – is what they used – and be able to recreate visibly what
    that beam of radiation looks like. Then you can get a visual
    representation so that when you’re in that facility and you have to
    go because it is not something that people do every day, it’s very,
    very rare that they have to go in there. But when they have to go in
    there, they have this visual representation of these beams of
    radiation coming out. And I think that’s a little bit better than
    some duct tape on the floor.

    Lorne: Yeah, I think nuclear

    reactor training is one of the better use cases for creating a safe
    controlled environment versus a live test bed.

    Alan: You would think, yeah. You

    know, we don’t really want to go down that road. You talked about
    wind turbines. That’s another big, big area because I mean, clean
    power is becoming huge and wind turbines, they’re– I don’t know if
    you’ve ever been in one.

    Lorne: No.

    Alan: But I have, in VR. I’ve

    been in a wind turbine. I climbed up the ladder on the inside. I got
    inside. I looked at the motor. I stood on top of one, all in VR. And
    I’m good with that. I don’t necessarily need to do that in real life.

    Lorne: I’ve definitely been in

    one in VR. I haven’t been in a real one. [laughs]

    Alan: It’s pretty awesome. And

    there’s so many things that can be done with this. And let’s talk
    about the cost to deploy something like this. For example, company
    comes, XYZ company. They say, “hey, we saw what you’re doing or
    we heard the podcast. This company is doing this. We make widgets and
    here’s our machine factory. We want to start doing safety training in
    VR.” What does that typically look like, for as roll-out, your
    measurements of success, and the costs as well?

    Lorne: The costs of actually

    come down with the standalone headsets, because there’s less
    graphical work that needs to be done. It’s really linear overall.
    Basically, there’s two ways that we develop up here at VR Vision
    internally for these training applications. There’s 360 video that’s
    ported into VR scenarios, that’s going to be filming or any type of
    real world environment. Typically, the 360 video form factor is going
    to be cheaper and more cost effective than creating a CGI based
    environment, which is basically the other way that we developed
    training applications. For the 360 side of things, per module, we
    charge anywhere from 15 to 20,000 dollars, but you also need a
    platform to interact with those 360 videos. So we start with like a
    base layer for anywhere from five to seven thousand dollars for a
    platform that’s built out. It’s kind of like the menu selection
    screen of Netflix, if you will. And then once you’re in that
    platform, you can select the various modules or training outcomes
    that business may want to use. And basically, each training outcome
    is anywhere from 10 to 20,000 dollars, with interactivity and voice
    overs and fully optimized. It really depends on the length of the
    training outcome. These are averaging about three minutes long. But
    if you have a longer one, it will take more post-production, which
    would be more costly.

    For a CGI based environment, those

    costs can be far reaching. It really depends on the scope and brevity
    of the application. The ones that we’ve developed, they fall into
    like the 40 to 50,000 dollar range, for basically a three to five
    minute CGI based training scenario. We did one for a fire safety
    drill for a company down in Texas called Alchemy Systems, and it was
    basically replicated version of their factory, one-to-one in a CGI
    based environment. And it trained the users that worked in the
    factory how to find the fire exit, and what to do in case of an
    emergency.

    Alan: So how did you get the

    factory one-to-one scale? I mean, obviously, they have the
    measurements of the factory. You just import that into CAD modeling
    program or, how did that work?

    Lorne: Yeah, they had FBX files

    of a lot of their factory. And then there was another way that we did
    it was using LiDAR, which basically went on the floor, scanned the
    whole factory. It was pretty boxy, rectangular shaped factory, so
    it’s pretty easy to do. Just scanned the length and then the size of
    it, and then ported it over into a virtual environment.

    Alan: Well, that’s easy.

    Lorne: It sounds easy, but

    there’s a lot of technical expertise, but…

    Alan: If I had asked you the

    same question three years ago, it probably wouldn’t have been that
    easy.

    Lorne: Yeah. Yeah.

    Alan: One of the things that

    we’ve been seeing as a repetition on this show, is that these
    technologies are getting better, faster, cheaper every day. There’s
    more talent coming out that know how to use these technologies. But I
    think one of the key takeaways is that, this isn’t something that you
    should be looking at five years down the road. This is something that
    people are utilizing now and getting dramatic results. So let’s talk
    about some of the results that your clients are getting.

    Lorne: They’re having

    resolutions of conflicts that can arise in a workplace scenario.
    That’s one of the biggest ones, just avoiding those risks and
    avoiding downtime for various training scenarios. They’re getting a
    lot of assessments, post training. So with our analytics engine,
    we’re tracking where the users are looking, we’re seeing where the
    problems may arise, or where things are being missed. And then let’s
    say they’re missing an easily overlooked area of just handling a box
    or flipping a switch properly. And we see after training 10,000
    employees, that maybe half of them are missing this one simple thing.
    So now we know that this training outcome needs to be pushed a little
    bit heavier for those employee, so they can reduce the problems with
    whatever that specific process is.

    Alan: Or maybe the process

    itself is flawed.

    Lorne: Or maybe that as well.

    Yes.

    Alan: We never want to talk

    about that. But let’s be honest, sometimes things were done just
    because they were always done that way. And now this can shed a light
    on certain processes that are maybe antiquated or out-of-date.

    Lorne: Something that helped us

    optimize our training programs was to learn from the employee
    feedback, and then getting multiple iterations of our training
    programs in place, so that the frontline employees can help optimize
    training elements to maximize effectiveness.

    Alan: So maybe unpack that a

    little bit.

    Lorne: So basically with the

    post-training assessments, we did a lot of surveys on the employees
    to see how effective they were finding it. We had some training
    modules that were rated much higher than others. So we can go back to
    the ones that were lowly rated and find out “Well, maybe this
    was too hard for the employee to learn various elements of the
    training protocols.” so we can make it a little bit easier for
    them to find whatever the risks were or the safety concerns were for
    the training scenario.

    Alan: So now in that case, you

    have to go and refilm this, if it’s 360 video, for example.

    Lorne: Yes, it would be to

    re-storyboard it from the ground up for 360 video. For CG, it’s just
    a matter of tweaking things in-house.

    Alan: I think therein lies the

    exact cost-benefit analysis of 360 versus CG, because if you’re
    filming in 360 video, it’s 15 to 20k to film each one of these
    modules. And in CGI you’re looking at 40 to 50k. The difference being
    if something needs to change, you have to go re-record that, that’s
    another 20k. In CG, if you need to change something, you can change
    it on the fly. And one of the things that I love about computer
    graphics is that you can reconfigure the warehouse. You can add
    elements real time. You can add things in. So there is that benefit
    of–

    Lorne: Future proofing.

    Alan: Yeah, future proofing

    that. But it’s not always necessary and it’s not always warranted. So
    when do you decide which one to use over another?

    Lorne: There’s also factors to

    consider, like multiplatform support, having VR/AR functionality, but
    also being able to push those exact scenarios to the web. In case
    there’s not a VR headset available, being able to have a 360 video on
    the web for the user to learn in a dojo or LMS environment, that
    doubles the effectiveness and accessibility of the training programs
    as well.

    Alan: What devices are you

    pushing up to now and how does that look like? Let’s take 360 and
    then we’ll move into CG, for example, because the headsets are
    changing daily. We’ve taken a complete device agnostic approach,
    because who knows what the next big thing is gonna be. So how do you
    then future proof the content to be available in such a broad range?
    How does that look like and what devices does that go to?

    Lorne: We’ve kind of

    transitioned away from PC powered VR. We think that a lot of the
    future is going to be based around standalone devices. And as the
    computers get smaller and faster and more portable, people are just
    going to want to get away from the cumbersome setups of sensors and
    just move toward easily portable and scalable device. Things like the
    Oculus Quest, Oculus Go make it really easy for adoption. Then you
    see Vive Focus and the Focus Plus, work equally as well. They’re much
    more portable and scalable for businesses to adopt, whereas two,
    three years ago these devices didn’t exist. So it’s hard to predict
    where things are going to be in another two years based on how fast
    the industry is moving.

    Lorne: From the backend side of

    things, for programming, something to be aware of when developing
    these – CG based, especially – is there’s a lot of downsizing of
    sampling for various graphics, because the standalone devices simply
    can’t push the same amounts of power and graphic quality that the PC
    powered devices can. So a lot of the times we have to really dumb
    down or filter down the polygon counts, just to make sure that the
    standalone devices can still push a decent looking scenario but not
    overload them, so not to cause frame rate issues and nausea.

    Alan: Very interesting.

    Lorne: It’s definitely something

    that developers should be aware of, or businesses looking to adopt
    the technology.

    Alan: What’s the biggest

    challenge that you’ve found in the adoption of this technology?

    Lorne: Tracking issues has been

    one of the biggest hiccups for us. Before the Focus Plus came out, we
    were really stoked that finally stand alone VR is here and we ported
    over a lot of our platforms to the Focus and then we ran into a wall
    with tracking issues, the controllers would lose focus when you put
    the controller behind your head, for example, simply because the
    headset only had cameras front facing. The Oculus Quest has helped a
    little bit with that because they have four cameras on the front and
    they’re kind of like a fish eye lens. So they track a little bit
    better for fronts to the sides and above you and below you. But
    still, you’re going to lose tracking if you have to put your hand
    behind your back for whatever reason. So that’s something that’s been
    a challenge for us, for developing some training scenarios.

    Alan: I think the hardware

    itself is growing by leaps and bounds. They’ve made really, really
    big strides in bringing that one unit without having to have a
    computer. And I think that’s one of the biggest challenges with VR
    has always been the challenge of just getting it to work. You set it
    up, and then all of a sudden you’ve got 30 Windows updates, and then
    another Steam update. And then by the time you’re ready to go,
    there’s an hour gone. Your training time is missed.

    Lorne: Yeah. Definitely

    something to be aware of. I think we’re going to see a lot of
    advancements in technology in both consumer markets, as well as
    industrial and commercial applications. Something that we’ve been
    really excited about is, we’ve just been testing the RealWear AR
    headset.

    Alan: They raised 80 million.

    Lorne: Yeah. They raised a ton

    of money, but they’re really competing with the Hololens. It’s not
    really competing in a sense because Hololens is more for a static
    environment, where the RealWear is more for on the job task based,
    ruggedized training. And I think there’s gonna be a lot of potential
    for hardware – mixed reality based hardware – in the future. I think
    they’re going to combine a lot of AR and VR for ruggedized use in the
    field. I think that’s where the immersive training side of things
    will move towards, although it is hard to predict.

    Alan: I got to go to PTC’s

    LiveWorx in Boston and I tried the RealWWear headset, and basically
    what it is, is a little articulating arm that mounts to your
    construction hat, and it’s like pulling down a screen in front of
    you. Like imagine pulling up your phone, right? But you pull up a
    little screen and it’s like having a 9 inch, 10 inch tablet that’s
    about maybe a foot away from your face, in one eye.

    Lorne: Interesting.

    Alan: But it’s ruggedized. So

    it’s waterproof, it’s bombproof. It’s like this big rubber arm. Now
    the issue with it – and they’re going to address this, I’m sure, on
    subsequent ones – is that finding that little sweet spot of getting
    it right in front of your eye in the right spot is kind of finicky,
    you kind of wiggle it. And then once you get it, it’s usually fine.
    But I put it on and they have this thing called Expert Capture. And
    what that means is, you can use the camera on this thing to capture–
    let’s say, for example, I’m an expert, I go up to a machine – in this
    case that I went on, it was a tractor – I look at the tractor and I
    say, OK. And I hit record and I record how to replace the air filter.
    And then I hit stop. Now, that’s recorded forever and it can be
    pushed out of every headset. Now, what I do is I put on the glass. It
    walked me through step by step. A little video said, “here, go
    here, pull off this cover, replace the thing, put the cover back,
    make sure the switch is turned.” And that was it. And I replaced
    an air filter on a tractor. And I’ve never touched that before. I’d
    ever been on a tractor before. But that little heads-up display gave
    me all the information I needed, real time.

    Lorne: So do you think you could

    do that on a real world tractor now that you’ve learned it in the
    headset?

    Alan: Oh my God, yes. I’ve done

    it. So it’s in my head. Obviously, I don’t know the model of tractor.
    So it would vary by model. But if you put me in front of that model
    tractor and said change the air filter, I go to the back of the
    tractor, I climb up, I pull the air filter out. I know exactly where
    it is. Yeah, I did it.

    Lorne: It’s amazing.

    Alan: It’s not something that

    you told me about or I learned on YouTube. I did it. I did it in real
    life with my hands. And I think this is something that being able to
    train people on in VR is one thing, where you need a completely
    virtual and safe environment, but also taking elements of that 360
    video elements or those elements of just the information you need at
    the time you need it, into the real world is really important. That’s
    why I think RealWear it is a really excellent, elegant solution,
    although it is very low tech, if you think about it.

    Lorne: Yeah, I think being able

    to use your hands in the real world. I think just a hands-on element,
    it creates much better retention for learning overall, versus the
    scenario where you’re using controllers. You’re still learning, but
    being able to get your hands dirty, if you will. And I think that
    more than even VR may help learning retention. So it’s interesting to
    see where the space goes in the next couple of years.

    Alan: Yeah. There’s a trial

    we’re going to test. There’s an excavator, a VR experience made by a
    Toronto company called Career Labs. And the first thing you do, you
    learn how to start it, what all the controls do, and then you drive
    it. You go grab some rocks and put it in a dump truck. So we’re going
    to put my daughters, who are 11 and 15 in the scenario for an hour
    each, and then we’re gonna take them out onto an excavator and see if
    it translates from an hour in VR to being able to operate a real
    excavator.

    Lorne: That’s great.

    Alan: Well, we’ll see.

    Lorne: See how the results are.

    Alan: It’ll either be awesome or

    they’ll destroy a couple hundred thousand dollar excavator.

    Lorne: [laughs] Let’s hope not.

    Alan: I hope not. I have

    confidence in the VR training.

    Lorne: [laughs]

    Alan: So what’s next for you

    guys? You’re expanding, you’re growing, you have a new office in
    Toronto. What’s next?

    Lorne: I guess I’d like to touch

    on Reality Well, because that’s a subsidiary brand that we’re
    launching. We actually just launched the website and we’re doing a
    bunch of PR right now for it. It’s basically a platform built for
    standalone VR – for the Vive Focus or Oculus Quest – with a health
    care focus, for measuring improvement of quality of life. So we’re
    really focused on retirement homes, hospice centers, places like that
    for the elderly. We want to help with cognitive thinking, memory
    retention, improving mobility, as well as just adding entertainment
    and increased mood for people that are otherwise bedridden or just
    bored out of their minds.

    The platform itself is fully contained with three sections. The first section is CG based environments that are playful and fun, with animals and interactivity, and they’re just meant to be light and fun for the users to explore. There are things like winter scenes, beaches, forests, very vibrant colors, all CG based. The second part of the platform is real world 360 videos and photos, that we’re slowly procuring in 8K stereoscopic 3D. The highest quality that we can really develop for, it’s all our own content. And it’s just places like landmarks all around the world, bucket list items. I’m actually going to Italy in two weeks to film more content there as well. And that’s a great way for the users to visit places that they may not get a chance to visit in their lifetime. The last part of the platform is minigames, but they’re called exer-games, or serious games in the healthcare community. And we’re working with the University of Waterloo to validate these games, to help with things like mobility, to help with memory retention. Some of the games are like rock balancing games. There’s like a music game. It’s kind of like Beat Saber, but you’re on a beach and there’s just some beach balls coming at you instead of the Beat Saber blocks. It’s a lot of fun. They really enjoy it so far. We’re developing more games for that as well. There’s a fishing game that we’re almost finished and there’s gonna be a farming game as well.

    Alan: So let me get this straight. You’re hitting beach balls on the beach. Is it things like, [hums jitterbug tune]? Is it like big band swing music? Clearly not techno music like Beat Saber.

    Lorne: No, no, it’s not techno.

    It’s more classical chill, laid back, relaxing type of music. This is
    definitely aimed at a different crowd than the Beat Saber crowd..

    Alan: Not going to have the

    Skrillex remix?

    Lorne: No, no dubstep here. It’s

    to help increase their mood and just overall entertainment. So it’s–

    Alan: Are you collecting data

    about these people as well?

    Lorne: Yes. Yes.

    Alan: The health care providers

    so that they can help with, because I can imagine there’s some
    depression and there’s some loneliness, so…

    Lorne: Yeah, there’s analytics

    for all of our platform and there’s a rating system, as well for a
    lot of the experiences. So after they’ve tested out each one, they
    can rate it on a scale of 1 to 10. So we can try and drill down what
    they like the most. And right now we have pilots in about six
    different health care facilities. And we’re gauging and measuring to
    see which type of scenarios and environments that they like the best.
    And so far, they seem to love animals. We filmed at Toronto zoo, and
    that’s one of the favorite 360 video experiences that we’ve shown
    them so far. Because you know what it is? It’s the 3D. When you’re
    filming in stereoscopic 3D, – let’s say you’re looking like a horse
    range – you almost want to reach out and touch the horse’s head,
    because it feels like it’s right there in front of you. So it’s
    really amazing what we’re able to do with the technology nowadays.

    Alan: It’s really fantastic,

    being able to provide such a wonderful service to seniors who may or
    may not be able to get out, or maybe their memory is failing. And
    it’s just, it’s wonderful.

    Lorne: Yeah, it’s definitely

    heartwarming. And I really hope that it helps. And we can grow this
    to provide it to as many facilities as possible, because I think this
    could be super beneficial for a lot of people. You know what it is?
    It’s like bucket list items. If I’m 80 years old and I can’t travel
    anymore and I never got to go to Machu Picchu, bring me a headset and
    give me a 3D video or tour of Machu Picchu, so I can feel like I’m
    there. To me, that is truly amazing. And that’s what we’re trying to
    provide.

    Alan: That’s wonderful. So that

    leads me to my last question. What is one problem in the world you
    want to see solved using XR technologies?

    Lorne: I think the most

    impactful thing that XR technology can do is train people that save
    lives, people that are in roles like firefighters or policemen, in
    high risk scenarios – army’s definitely a huge one as well – any type
    of role that carries a really high element of risk for real world
    scenarios, and has the impact to potentially save lives. I think that
    is where I’d like to see the technology used the most. If we could
    leverage the technology to mitigate risk in those risky environments,
    and at the end of the day, this technology is used to save lives, I
    think that would be a beautiful thing to use the technology for.

    36 min
  • Getting 110% Out of Training in 360° Video, with VR Vision Inc's Lorne Fade
    The top of a wind turbine a hundred
    stories up from the ground is not the best place to be making
    mistakes, but making mistakes and learning from them is the whole
    point of on-the-job training. That's why VR Vision Inc helps
    companies produce XR training modules, so trainees can make mistakes
    in a safe, controlled environment. COO Lorne Fade drops by to talk
    about it.
    Alan: Today's guest is Lorne
    Fade, co-founder of VR Vision. Lorne is a serial entrepreneur that
    has built several businesses over the last 15 years. He's had the
    pleasure of working with some of the world's largest Fortune 500
    brands and award winning marketing agencies all across North America
    and Europe. His previous agency, Academic Ads, was acquired, and he
    went on to found VR Vision Inc. As the co-founder and COO of VR
    Vision, they're a virtual and augmented reality startup that's
    enhancing immersive training outcomes for some of the world's largest
    brands using VR, AR, and AI technologies. He's also the founder of
    Reality Well, a healthcare technology platform to improve the quality
    of life for those living in long-term care facilities. You can learn
    more about VR Vision by visiting vrvisiongroup.com. Lorne, welcome to
    the show.
    Lorne: Thanks for having me,
    Alan. Thanks.
    Alan: My absolute pleasure, man.
    We've known each other for quite some time through the VR/AR
    Association in Toronto, and we shared some booth space together, and
    it's always great to see what you guys are working on. I know the
    last time we saw each other, you were showing me an automotive
    manufacturing facility in virtual reality and how you were using
    that. So let's dive in there. Let's talk about how you guys are using
    VR and 360 video to make better training.
    Lorne: Yeah, that's that's one
    of our bigger use cases with Toyota, where we're training about
    10,000 employees currently using 360 video, in immersive training
    scenarios in VR. And it works really well for eliminating risk and
    providing a safe environment with zero harm. And it's totally
    immersive. So the employees that are getting trained in VR, no
    distractions, they can't be on their phone or anything. It was really
    simple the way we did it. We just storyboarded various scenarios with
    Toyota on various processes, on safety concerns, on their assembly
    lines or processes that were mundane and replicable. And then we went
    out and filmed with a stereoscopic 3D camera, so when they put on the
    headset they feel like they're there, fully 3D. And we mapped out, I
    guess about two to three minute scenarios, various parts of their
    assembly lines and filmed it all in full 3D and then ported it over
    to VR, added some overlays, some voice overs, some touch points and
    interactivity so that the employees could be trained in a completely
    immersive environment. Nothing like this is, from my knowledge, has
    ever been done before. So it's really cool to have this type
    opportunity to work on a project like that.
    Alan: So how are they measuring
    success? For example, STRIVR is doing 360 video with Wal-Mart and
    their key performance indicators. They're measuring training times,
    how long it takes to train. They're also testing retention rates.
    What are the KPIs that you and Toyota decided on, how to measure
    that?
    Lorne: Yes. Great question. We
    developed a in-house analytics engine for tracking where the user is
    looking, the various touch points of the training scenarios. And
    every user that uses the platform gets their own log-in, so we track
    each user, their effectiveness, and how well they're being trained
    with the scenarios. And then within the scenarios, there'll be, let's
    say, about 20 interactive touch points for various risks, or hazards,
    or processes that the employee needs to learn. And then at the end of
    this scenario, they'll get a breakdown or a test results scree
    0 min
  • Digital Vandalism, in the Name of Feminism – XR News for September 4, 2019

    Tired of waiting for the US treasury

    to put a female face on the $20? (Because you’ll probably be waiting
    a while yet!) Google’s got you covered, or rather, your cash: they’ve
    developed an AR app to put Harriet Tubman on the $20 bill. That’s
    just one of the interesting bits of XR news Alan has in store for
    this week’s news update.

    • A white paper published by Microsoft found that test scores among students using immersive technologies improved by as much as 22 percent, with the effect maintained over a period of weeks, including increased performance on skills-based tasks and gains in knowledge, abstract reasoning, and critical thinking.
    • In a new survey of 900 developers working on VR/AR, 33 percent of them were focusing on education, and 27 percent were focusing on training 
    • Google puts women on US currency with an AR workaround
    • New 8-minute galactic primer “Clio’s Cosmic Quest” is the future of AR education
    • Fortum nuclear power plant uses VR for control room training
    • Fitz Frames allows kids to virtually try on and customize glasses with AR
    • US military using Hololens for planning ‘sandbox’ 
    • LA Dodgers embrace virtual reality batting practice

    7 min
  • Digital Vandalism, in the Name of Feminism - XR News for September 4, 2019
    Tired of waiting for the US treasury
    to put a female face on the $20? (Because you'll probably be waiting
    a while yet!) Google's got you covered, or rather, your cash: they've
    developed an AR app to put Harriet Tubman on the $20 bill. That's
    just one of the interesting bits of XR news Alan has in store for
    this week's news update.
    A white paper published by Microsoft found that test scores among students using immersive technologies improved by as much as 22 percent, with the effect maintained over a period of weeks, including increased performance on skills-based tasks and gains in knowledge, abstract reasoning, and critical thinking.In a new survey of 900 developers working on VR/AR, 33 percent of them were focusing on education, and 27 percent were focusing on training Google puts women on US currency with an AR workaroundNew 8-minute galactic primer "Clio’s Cosmic Quest" is the future of AR educationFortum nuclear power plant uses VR for control room trainingFitz Frames allows kids to virtually try on and customize glasses with ARUS military using Hololens for planning ‘sandbox’ LA Dodgers embrace virtual reality batting practice
    0 min
  • Volumetrically Capturing Authentic Digital Actors, with Metastage’s Christina Heller

    Even with all

    the advancements in CG animation, it can’t capture that distinctly
    lifelike essence that a real human exudes. But XR can capture that
    essence — volumetrically. Metastage CEO Christina Heller drops by to
    discuss the process of transcribing the aura of a person into XR
    space.

    Alan: I have a really special

    guest today; Christina Heller, the CEO of Metastage. Metastage is an
    XR studio that puts real performances into AR and VR through
    volumetric capture. Metastage is the first US partner for the
    Microsoft Mixed Reality Capture Software, and their soundstage is
    located in Culver City, California. Prior to Metastage, Christina
    co-founded and led VR Playhouse. So, between Metastage and VR
    Playhouse, she’s helped produce over 80 immersive experiences. To
    learn more about Christina Heller and Metastage, you can visit
    metastage.com.

    Welcome to the show, Christina.

    Christina: Thank you so much for

    having me.

    Alan: It’s my absolute pleasure.

    We met, maybe three years ago? At VRTO?

    Christina: Yes, that’s correct.

    Alan: Yeah, we got to try your

    incredible experiences, mostly in the field of 360 video. And you’ve
    kind of taken the leap to the next level of this stuff. So, talk to
    us about Metastage.

    Christina: Sure. As you said,

    it’s a company that specializes in volumetric capture. I think, in
    the future, you’ll see other things, but at the moment, we specialize
    in volumetric capture. Specifically, using the Microsoft Mixed
    Reality Capture system, which is an incredibly sophisticated way of
    taking real people and authentic performances, and then bringing them
    into full AR and VR experiences, where you can move around these
    characters, and it’s as if they are doing that action right in front
    of you.

    Alan: Let’s just go back a

    little bit. What is volumetric capture, for those who have no idea
    what volumetric capture is?

    Christina: Sure. For a long

    time, if you wanted to put real people into AR/VR experiences, you
    had basically two ways of doing it. You could either animate it; so,
    you would try to create — using mo-cap and animation — the most
    lifelike creation of a human character possible. Think, like, video
    games; when you go play a video game and they’ve got a character
    playing a scene out with you. If you wanted to put real people into
    these XR experiences, that was the most common way to do it.

    Then there was also volumetric capture,

    which, for a long time, just wasn’t quite — I would say – at the
    technological sophistication that people wanted, to integrate it into
    projects. Volumetric capture — thanks to the Microsoft system, I
    think — is finally really ready to be used in a major way in all
    these projects. And basically what it does is, we use 106 video
    cameras, and we film a performance from every possible angle. So,
    we’re getting a ton of data. We use 53 RGB cameras and 53 infrared
    cameras. The infrared is what we use to calculate the depth and the
    volume of the person that’s performing at the center of the stage.
    The RGB cameras are what’s capturing all the texture and visual data.

    Then, we put that through the Microsoft

    software, and on the other end of it you get a fully-3D asset that
    really maintains the integrity and fidelity of the performance that
    was captured on the stage. Unlike some of the animated assets —
    because this was kind of the challenge — the animated assets, they
    might get kind of there, but they had that uncanny valley thing
    going.

    Alan: Yeah, those are creepy.

    Christina: Yeah. And so if

    you’re not familiar with the term “uncanny valley,”
    basically with people and animals – or like, dynamic, organic,
    moving objects — if you get it kind of close, but not fully there in
    terms of it looking lifelike, you have this inherent rejection of it.
    You just… there’s this distaste, like “ew.” It’s called
    “the uncanny valley.” It’s close, but it’s not really
    there.

    So, volumetric capture — and

    specifically the captures we’re doing in Metastage — don’t have that
    uncanny valley going on. When you look at them, they look like real
    people. They maintain all of the nuances and the micro-expressions
    and the subtleties of the person that performed on the stage. So you
    can bring these fully authentic, fully real captures into your AR and
    VR experiences. It just kind of brings the whole thing to life. So,
    that’s how I would describe it. It’s volumetric video. It’s a video
    asset, but it’s fully-3D, and you can easily integrate it with six
    degrees of freedom into AR and VR experiences.

    Alan: I’m going to break it down

    even simpler: this means you can now step into the movie, and
    participate in the movie as it’s going on around you.

    Christina: Yeah, correct.

    Alan: So exciting.

    Christina: One of the things

    that I’ve been saying is — part of the reason I’m really passionate
    about volumetric capture as a tool inside of the greater medium is —
    it’s the real person’s seat at the table. As we move more into these
    virtual worlds, it’s important that real people are represented in
    them. And when you watch something that was captured volumetrically,
    you know that it was captured live. It wasn’t reanimated. It wasn’t
    puppeted. This is something that you can watch with the same awe that
    you would a live performance happening right in front of you. And I
    think that that’s really important, that authenticity.

    Alan: I really think we’ve come

    a long way with computer and CGI and being able to animate things,
    but there really is no substitute for a real actor or actress.

    Christina: Absolutely. There is

    something about humanity — and it’s part of the reason that
    animators are struggling to get it as lifelike as possible — there’s
    just something about the way people move, the way that they speak.
    There’s just these little nuances that are impossible to fake. It’s
    part of what makes watching something that was captured
    volumetrically — or something in a film or a TV show — part of what
    makes it so satisfying, is to capture all those little quirks, and
    those little things that make people, people.

    Alan: I think in a world where

    AIs and robotics are going to replace a lot of our jobs, it’s nice to
    know that we’ll still have some. [laughs]

    Christina: Yeah. And I like

    connecting with real people, and I like seeing real performers. And
    when we’re talking about celebrities or public figures, or the CEO at
    your company; I don’t want to watch an animated CEO give a board
    presentation. I want to see the real guy. When it comes to anybody in
    our society that’s “the real deal,” volumetric really is
    the only real way to capture them for these experiences.

    Alan: You touched on something

    that is really, I think, interesting. You mentioned CEO
    presentations, or investor presentations. We could talk about the
    entertainment aspects of this — and we met up at the New York
    Volumetric Filmmakers event and you spoke at that event, and I was
    blown away by the stuff you guys are doing — but a lot of it is
    creative and arts and entertainment, which are businesses as well.
    But are there companies that are leveraging this technology now, to
    broadcast their CEO or whatever? How are companies using this
    technology now?

    Christina: We’ve done a number

    of B2B captures in Metastage, and I’m excited to do more of them.
    It’s exciting to see other industries outside of the entertainment
    field getting involved with XR, and starting to see how they can use
    this tool to not only improve workflow and make money, but also just
    to dazzle. That is an exciting opportunity right now, to just be
    really ahead of the curve and do something that nobody’s done. You
    still have that opportunity right now with augmented and virtual
    reality.

    Alan: You just mentioned

    something: how to “dazzle” using this technology. I think
    we always hammer down on “what’s the ROI? What’s the ROI?”
    There is an intangible ROI, in the dazzle.

    Christina: Absolutely, yeah. And

    you got to make sure you partner with the right people, because
    you’re not going to dazzle unless you’ve got the right production
    team to do it. But if done right, I mean, that’s one of the most fun
    parts of my job, is getting to watch people’s eyes light up when they
    first see a person appear right in front of them — almost like a
    human hologram — using volumetric capture. So, yes, we have done a
    few different business applications, and one of them was specifically
    for that use case that I just described.

    We had an executive come in and do a

    board presentation for his CEO on the Hololens. Basically, he came in
    and he captured the beginning and end of his presentation,
    volumetrically. He went out on the stage, we used 106 cameras, we had
    a teleprompter. And basically, the presentation was about the
    company’s plans to use technology to build their future, and how
    technology was going to affect the future of their company.

    By the way, I’m going to use the term

    hologram to describe it, because I think that’s an easy way to wrap
    your head around what you’re looking at. There’s questions of whether
    that’s the correct term or not, but we’ll just call it a human
    hologram, when it’s integrated into an augmented reality experience.
    So he was using the Microsoft Hololens, which is some glasses that
    you wear on your head, and it allows you to place digital objects
    into the real world.

    So we captured him holographically, and

    using the teleprompter, he gave this intro to the CEO. Then it went
    into a data visualization sequence. Hologram disappears. Now he’s
    showing — using data in a three dimensional space — some of the
    ways the technology is going to transform and affect their business.
    And this, by the way, is a huge, huge, huge company. I’m not
    sure whether I’m allowed to use it as a case study publicly, so I’m
    being a little discreet, but a huge company. Anyway, he gives the
    intro. There’s awesome data visualization showing how technology’s
    going to transform their business. And then it ends with him coming
    back and kind of wrapping it up. He said that, in the 35 years he’s
    been working at the company, that this was the first time he’s ever
    seen the CEO smile. So that was kind of a nice thing.

    Alan: Wow. That’s incredible.

    Christina: And it’s also now

    preserved forever. He only had to do the presentation once. He can
    now show it to anybody, anywhere. It’s this evergreen piece of
    content that will live on. Incidentally, the executive that we
    captured — who had been at the company for 35 years — is leaving
    this fall. And so, in some ways, this presentation was his legacy;
    talking about his dreams for how he wants the company to progress
    when he’s gone. That was really cool.

    And then also one thing we’ll do at

    Metastage — which I think is always cool — is while he’s in there
    — you know, this is a guy that has a family and some kids — I said,
    “you know, well, while you’re here, why don’t we record
    something for your family, too?”

    Alan: Awww, I love that.

    Christina: Yeah. You always feel

    the energy shift when that moment happens. He got up there and said,
    “it’s February 12th, 2019. And I want to tell my family this,
    this, this, and this, and tell them how much I love them and how
    proud I am.” And it was just this moment where he realized —
    now, he’s not going anywhere; he’s not like a super old guy — but he
    realized that this little piece of content might actually live on,
    and be something that his family could cherish later. And so that was
    also a nice moment. And that’s just one example. I’ve got more.

    Alan: The preservation of

    people, places, and things using volumetric is beautiful. I know a
    mutual friend of ours — Simon
    Che de Boer — he’s running around the world capturing places; he
    does photogrammetry of places. If you take the photogrammetry that
    he’s creating of these real places around the world, and you take the
    videogrammetry that you guys are doing and put people into those
    places? The possibilities are literally endless.

    Christina: Definitely. And as a

    former documentary filmmaker and journalist, making sure that real
    life is preserved and a part of this new virtual landscape — I think
    — is an important mission.

    Alan: I agree. There’s places in

    the world where we still have unrest, and cultural landmarks are
    being destroyed. We have to — have to, have to — at least
    get them as a digital [simulacrum] — you know, obviously, if we
    can’t protect them physically — if we can get a digital version of
    them… the fire in Paris is a great example of that. Notre Dame
    Cathedral. They have rudimentary LiDAR scans of the building; they’re
    not perfect, but they can recreate the building digitally, and then
    use those three-dimensional drawings to recreate the actual building.

    Christina: Yeah.

    Alan: It will never be the same,

    but at least they can get close.

    Christina: Yeah. And with

    volumetric capture, you don’t have to be as concerned that… first
    of all, it’s really, really easy process. You don’t have to put on a
    mo-cap suit or points, and go out and make a bunch of different
    facial expressions. Super high-res face scanning, with the purpose of
    being animated later, is a really, really intense process.

    Alan: Oh, my goodness. People

    don’t realize. It’s a full day, just to be able to say “hello.”

    Christina: Yeah, it’s a full

    day, and it’s really intense on the performers. Volumetric capture is
    super easy on the talent. You just go out on the stage, action, cut,
    and you’re done. Off you go.

    On our end, we like to take a little

    more care than that. We’ll do some tests to make sure your hair looks
    right, or your clothes look right, and all of that. We’ve done
    celebrities at Metastage that we’ve had a very, very limited amount
    of time with. But as long as we can give them a once-over to make
    sure they’re volumetrically friendly, they can go out and be off in
    no time at all. And you have the added comfort of knowing that this
    isn’t going to be something that is puppeted and rigged to say things
    that you didn’t want to say. This is really you. It’s capturing you
    and making sure that you are coming across in the way that you
    actually want to in your real life. It’s a preservation technique.
    It’s a performance tool, but it’s nothing to be nervous about. That’s
    one of the things that I want to make sure gets across, because I can
    imagine an actor, for instance, getting nervous about the increased
    digitization of actors.

    Alan: “What are you going

    to do with my avatar?”

    Christina: Exactly.

    Alan: It’s interesting, because

    some friends of mine, they own a company and they do photorealistic
    avatar creation. And they have a side business producing adult
    content avatars.

    Christina: Right. You don’t even

    have to go much further than that to understand how that could cause
    some pause for an actor that takes pride in the work they do and how
    they do it. Volumetric capture really is video, but it’s a fully
    three-dimensional video. That’s a key differentiator.

    Alan: So what are some other use

    cases that you’re seeing pop up for this type of technology?

    Christina: Well, one of the

    great projects we did this past fall — and I can talk about it — is
    we did something with the CEO and president of the Royal Caribbean
    Cruise Line. They’re giving you a virtual tour of the ship. And so,
    this has some great and broad applications for a lot of businesses
    that, maybe, do a lot of onsite tours. One of the great things that
    VR and AR can give you is access. Access to places you can’t normally
    go. Access to people you couldn’t normally engage with.

    So, there’s two ways of doing the

    virtual tours. But the way that the Royal Caribbean did it was the
    CEO and president give you a tour of the ship using the Royal
    Caribbean Celebrity Cruise app. You can basically make their
    holograms appear in different rooms of the ship, and they tell you
    about the design, the features, how the ship was built, and why it
    was built the way it was built. That is an app that anybody can
    access. If you type in “Celebrity Cruise app,” you can
    access the CEO’s intro when you’re not on the ship, and the rest of
    the holograms can only be accessed on the ship. So, it’s kind of this
    cool site-specific augmented reality experience.

    Alan: That’s really cool. So,

    you have to be on the ship to actually experience the full thing?

    Christina: Exactly. You can see

    the intro — which is really cool, and you can get an idea for it.
    Richard pops up, and he’s holding a model of the Celebrity Cruise
    ship in his hands. And he says, “we built this ship using 3D
    technology — the most advanced 3D technology. And so we thought it
    was only appropriate to use the most advanced 3D capture technology
    to explain to you why we built the ship and some of the features.”

    Alan: Amazing.

    Christina: At that point, he

    puts the ship down, and you can explore a little bit of it on the
    app. But the rest of it, you have to be on the ship to experience.

    Alan: Is this an AR app for your

    phone?

    Christina: Yes, it’s an AR app

    for your phone. Another fun selling point of the Microsoft system and
    Volucap system that we use at Metastage is that, the assets are
    really, really beautiful, and also super small file sizes, so you can
    actually activate them using a mobile device. So yes, using your
    phone, you open the app and like magic, he appears right in front of
    you, and you can walk around him as if he’s standing right there. He
    integrates fully into the scene.

    Alan: Incredible. Can you just

    send
    me the link
    to the app and I’ll put it in the show notes, for anybody who
    wants to give it a try.

    Christina: Yeah, totally. So,

    that’s great because it gives people access to Richard and Lisa, who
    would never get access to them normally. And from the CEO side of
    things, it allows them to reach their customers in this really
    intimate and friendly way, without actually having to go out and
    shake everybody’s hand. For businesses that maybe do a lot of tours
    on site, but would like to give access to more people without
    actually having to take the time, energy, and resources to give them
    the physical tour, you can do a capture of the facility or the
    warehouse or wherever it is, and then integrate your CEO or star
    employee or whatever into that environment. And you can give somebody
    a realistic and authentic virtual tour of that place without having
    to — like I said — dedicate the time and resources of actually
    showing them in person.

    Alan: You know, this comes back

    to something that pops up on every single episode of the show;
    training. Immediately, when you said that you could give people a
    tour. Imagine: for new employees, working on a cruise ship must be a
    daunting experience. The training just to train people where things
    are on the ship, it’s got to be incredible to do that. And one thing
    that I think Metastage and volumetric capture will really drive home
    is the fact that some people are really, really great at training,
    and some people are not so great. Maybe they’re great at creating the
    content, but not presenting it. Now you can have the best person
    train every single employee.

    Christina: Exactly. You can get

    your star employee to walk them through the process, show them
    physically how to do it – which, depending on what field you’re in,
    being able to show somebody with one’s body how to do something can
    be crucially important. And you’ve immortalized them. That employee
    may move on to another position, but you’ll always have that spirit
    and that knowledge captured for years to come.

    Alan: Employee on-boarding,

    training; but I also love this idea of being able to download the
    app, see it, it says, “well, the rest of it is on the ship.”
    I think there’s so much that can be done with this type of capture.
    We’re only really just scratching the surface.

    Now, Metastage is not the only

    volumetric capture system out there, correct?

    Christina: Correct, yeah.

    Alan: There’s 8i. There’s what,

    Intel Studios? Maybe some other ones that we don’t know about. But I
    think there’s more companies realizing the potential of this. What
    sets Metastage apart — in my opinion, it’s obvious, because I’ve
    seen the results — your partnership with Microsoft really sets it
    apart. I’ll let you speak to that.

    Christina: Sure. A lot of

    volumetric capture stages, from just the outside appearance, will
    look similar. You’ll go in and you’ll see a bunch of cameras, all
    facing inward at a stage, so it can look on the surface like they’re
    all the same. But the truth is, the real magic is in the software.
    What the Microsoft Mixed Reality software does better than any other
    volumetric system on the market is not only create really clean,
    high-fidelity captures that look great in the body, in the face, and
    don’t have a lot of artifacting, and look good from every angle that
    you happen to be viewing the captured asset from. We are also able to
    compress those captures to super tiny file sizes, which — if you’ve
    ever tried to make a project for virtual or augmented reality — you
    know how important that is.

    If you’re making a training app for

    your employees, or you’re doing something like the Royal Caribbean
    cruise line, you can’t have a 10-gigabyte application when this whole
    thing is done. It needs to be something small that isn’t going to
    take up a ton of room on their phone and that’s easy to distribute.
    There’s other things, but that alone is the key. Ask any other
    volumetric caption stage how big their final file size is. Microsoft
    has just really got it down to some really workable file sizes. We
    know that you’re doing it — let’s say for the HTC Vive or the Oculus
    Rift, or you’re trying to do it for a mobile phone device — we can
    export at different settings to optimize for mobile AR. Or if we can
    push it a little more for VR, then we can add a little bit more
    quality. But regardless, like the Royal Caribbean cruise app, when
    you download it and you see Richard, he looks really fantastic. So we
    can get our files sizes down to… for a minute of volumetric
    capture? At 50 megabytes. That’s 5-0 megabytes.

    Alan: Holy crap.

    Christina: Yeah.

    Alan: 50 megabytes.

    Christina: For a full minute of

    capture. And then it scales up, depending on our export settings and
    what your final platform is. That’s pretty incredible.

    Alan: It is really amazing. I

    think what people don’t realize is that when you’re pushing out this
    type of 3D content for a phone, for example, it doesn’t actually have
    to be as high-res as you would think, because you’re already looking
    through a high-res screen at another image in 3D space. It has to
    look clear, but people are like, “oh yeah, I need 4K video in
    AR.” Whoa, wait a second. You’re looking at a screen within a
    screen. The maximum of it is really only going to be 720p. So there’s
    some little tricks that people don’t realize.

    Christina: Right. And I show

    people the Royal Caribbean app all the time, and they think that
    looks better than any volumetric capture they’ve ever seen. And
    that’s at our smallest export setting.

    Long story short: quality at low file

    sizes is the key difference between Metastage and other capture
    facilities. But there’s also some added benefits. For instance,
    there’s the Microsoft toolset that we deliver along with our
    captures, which includes gaze retargeting. One of the things is, when
    you’re watching biometric capture — because it’s an authentic
    performance of what happened — if I’m watching it, and I step to the
    right or the left, it might look like the person is looking past me.
    So gaze retargeting will allow the head to subtly follow the viewer.
    If you’re trying to make it look like the capture is looking at the
    person watching it, there can be a subtle gaze retargeting where the
    head just sort of follows the viewer. That’s a standard tool that we
    deliver with our captures to the client, along with some relighting
    tools for game engine. Almost like… I want to call them “Instagram
    filters” for the capture, that allow you to give a little bit of
    a dramatic look, or sunset lighting. Those all go along with it as
    well.

    Beyond that, we offer full end-to-end

    project integration. When we first opened, we were offering just holo
    capture. But it’s become clear that for some of our clients, they
    don’t necessarily have access to game engine developers or
    environment creation. So if you come to Metastage and you’re
    interested in doing this kind of project, we can produce the project
    from conception to completion for you. Or, if you’re a production
    company or agency that already has access to those professionals,
    then we can simply just do the holo capture and deliver that to you.

    Alan: That’s incredible. So, I

    know there’s a lot of people listening that are probably thinking,
    “oh man, I want to use this. I want to jump in.” Let’s talk
    about price. I don’t know if this is something that’s really
    expensive. What does a minute of footage cost to develop? What does
    the process involve? If somebody wants to dive right in and say,
    “yeah, I want to host a two-minute video in AR for my
    shareholders,” what would something like that [cost]?

    Christina: Well, the prices

    start around $15,000, and then it goes up from there, obviously. It
    is — I would say — very comparable to what commercial video
    production rates are, if that’s something you’re familiar with. And
    it’s much, much cheaper than mo-cap and animation.

    Alan: To put things in

    perspective, to create a photorealistic digital avatar — rig and
    everything — you’re looking at, what, $10,000 a second?

    Christina: Yeah. I mean, it

    depends on the team you work with. It depends on how detailed you
    want the face and head to look. But I would say that that’s the price
    it costs to get through the door and get something going. And then
    obviously, the more content you’re trying to capture, the prices go
    up from there.

    Alan: I’m really excited. I know

    you invited me for a tour of the stage. I haven’t been to LA yet
    since we talked about it, but I definitely want to come down and
    check it out.

    The other thing that I noticed about

    Metastage — and I watched the video that you showed — is that it’s
    designed like a studio. It’s designed to be in congruence with what
    actors and actresses and people doing professional video are used to.

    Christina: Absolutely. That is

    important, and our production-savvy client-facing staff want you to
    have a seamless client experience, and a fun production day; that at
    the end of it, you say, “oh my gosh, that was really fun and
    easy. I’d like to do more of that.” And so, “easy and fun”
    has been kind of a mantra at Metastage since the beginning, and I
    think we’ve been successful with that. All of our clients have had a
    really good experience, and then on top of it, were surprised when
    integrating the assets that it was as plug-and-play as it is.

    So yeah, if you’re interested at all,

    please don’t hesitate to shoot us a line. You can contact us on our
    website and we’ll do consultation with you. We’ll hold your hand.
    We’ll work to get your goals achieved using this, and hopefully
    something that will be great for your business for years to come.

    Alan: Well, is there anything

    else that you want to share before we wrap this up? It’s been a great
    interview and I can’t wait to record a message. You know, you
    mentioned about the family, and I’ve been thinking of it ever since.
    I just want to record not only myself, but my children at their age
    now. Because as they grow up, you’re never going to get them at this
    age again. And it’s like capturing them in a time capsule.

    Christina: Totally. And that’s

    one thing we have been talking about, having a different pricing
    model for something like that. I think that’s really important. I
    totally understand the desire to want to capture your family; almost
    like a family portrait in this really interesting, three-dimensional
    way, that you could then stand next to later and marvel at the
    changes. Long story short, I do think that at some point we will have
    a way for average people to come and capture their families, as well.
    We’re just figuring out exactly how that works with our professional
    soundstage.

    30 min
  • Volumetrically Capturing Authentic Digital Actors, with Metastage's Christina Heller
    Even with all
    the advancements in CG animation, it can't capture that distinctly
    lifelike essence that a real human exudes. But XR can capture that
    essence -- volumetrically. Metastage CEO Christina Heller drops by to
    discuss the process of transcribing the aura of a person into XR
    space.
    Alan: I have a really special
    guest today; Christina Heller, the CEO of Metastage. Metastage is an
    XR studio that puts real performances into AR and VR through
    volumetric capture. Metastage is the first US partner for the
    Microsoft Mixed Reality Capture Software, and their soundstage is
    located in Culver City, California. Prior to Metastage, Christina
    co-founded and led VR Playhouse. So, between Metastage and VR
    Playhouse, she's helped produce over 80 immersive experiences. To
    learn more about Christina Heller and Metastage, you can visit
    metastage.com.
    Welcome to the show, Christina.
    Christina: Thank you so much for
    having me.
    Alan: It's my absolute pleasure.
    We met, maybe three years ago? At VRTO?
    Christina: Yes, that's correct.
    Alan: Yeah, we got to try your
    incredible experiences, mostly in the field of 360 video. And you've
    kind of taken the leap to the next level of this stuff. So, talk to
    us about Metastage.
    Christina: Sure. As you said,
    it's a company that specializes in volumetric capture. I think, in
    the future, you'll see other things, but at the moment, we specialize
    in volumetric capture. Specifically, using the Microsoft Mixed
    Reality Capture system, which is an incredibly sophisticated way of
    taking real people and authentic performances, and then bringing them
    into full AR and VR experiences, where you can move around these
    characters, and it's as if they are doing that action right in front
    of you.
    Alan: Let's just go back a
    little bit. What is volumetric capture, for those who have no idea
    what volumetric capture is?
    Christina: Sure. For a long
    time, if you wanted to put real people into AR/VR experiences, you
    had basically two ways of doing it. You could either animate it; so,
    you would try to create -- using mo-cap and animation -- the most
    lifelike creation of a human character possible. Think, like, video
    games; when you go play a video game and they've got a character
    playing a scene out with you. If you wanted to put real people into
    these XR experiences, that was the most common way to do it.
    Then there was also volumetric capture,
    which, for a long time, just wasn't quite -- I would say – at the
    technological sophistication that people wanted, to integrate it into
    projects. Volumetric capture -- thanks to the Microsoft system, I
    think -- is finally really ready to be used in a major way in all
    these projects. And basically what it does is, we use 106 video
    cameras, and we film a performance from every possible angle. So,
    we're getting a ton of data. We use 53 RGB cameras and 53 infrared
    cameras. The infrared is what we use to calculate the depth and the
    volume of the person that's performing at the center of the stage.
    The RGB cameras are what's capturing all the texture and visual data.
    Then, we put that through the Microsoft
    software, and on the other end of it you get a fully-3D asset that
    really maintains the integrity and fidelity of the performance that
    was captured on the stage. Unlike some of the animated assets --
    because this was kind of the challenge -- the animated assets, they
    might get kind of there, but they had that uncanny valley thing
    going.
    Alan: Yeah, those are creepy.
    Christina: Yeah. And so if
    you're not familiar with the term "uncanny valley,"
    basically with people and animals – or like, dynamic, organic,
    moving objects -- if you get it kind of close, but not fully there in
    te
    0 min
  • Lighting the Torch for In-App AR Development, with TORCH’s Paul Reynolds

    Game engines

    like the versatile Unity have long been the go-to for AR development,
    and for good reason. But its reputation as a video game engine can
    also be intimidating — especially to those who want to create AR
    software for enterprise. That’s why Paul Reynolds lit his TORCH; an
    app he co-founded that lets you design your own AR platform, right in
    the palm of your hand. He chats with Alan about his claim to flame.

    Alan: Hey, everyone, my name’s

    Alan Smithson, the host of the XR for Business Podcast. Today’s guest
    is Paul Reynolds, the CEO of Torch, a really exciting augmented
    reality platform. It’s a mobile augmented reality development and
    deployment platform for enterprise. Paul has been a software
    developer and technology consultant since 1997 – since before the
    interwebs! In 2013, after 10 years of creating video games, he joined
    Magic Leap where he was promoted to senior director, overseeing
    content and SDK teams. At Magic Leap, Paul recognized the lack of
    accessible tools for non-game developers that was hindering
    widespread adoption of immersive and spatial computing technologies.
    In 2016, Paul moved to Portland, Oregon, where he founded Torch to
    address this very problem. To learn more about Torch, you can visit
    torch.app. Paul, welcome to the show.

    Paul: Thanks for having me.

    Alan: It’s such a pleasure. I’ve

    been looking forward to this episode. Torch is such a cool platform
    and I keep seeing your posts on LinkedIn of putting stuff around your
    office and stuff. So tell us, what is Torch, and how did you come up
    with this crazy idea?

    Paul: The easiest way to think

    about it is, it’s a mobile application — currently for iOS — that
    lets anyone build interactive spatial scenes. So, you create a
    project and you’re building it in the camera of your device, which
    means you’re also walking around the space, or moving around the
    space and you’re building up interactive experiences visually,
    without writing any code. We call that the design environment, and
    that’s the freely available [option] — anyone can jump into it and
    just start building. What makes it a platform is the capability of
    taking what you’ve created in Torch, and exporting it and publishing
    it and integrating it into your existing app, or pushing it out to
    another platform or tool. What we really wanted to focus on was
    allowing people to iterate in augmented reality — directly within
    augmented reality — as opposed to sitting on a desktop computer and
    trying to figure out how to work a game editor, and get more people
    able to work productively in 3D. That’s really the heart of it.

    Alan: That’s so cool, because if

    you’re sitting at your office, you’re like, “wow, this AR stuff
    is hot. It’s amazing.” You know what, go learn Unity and coding
    and figure out how to actually make it. Six months later, you’re
    like, “oh, look, I made a portal.”

    Paul: [laughs] Right.

    Alan: What you guys have built

    is a simple way to just do it visually.

    Paul: Yeah. So, my background

    was in video games, back in the day where everyone was building their
    own engine. You really didn’t even have time to build a really nice
    editor on top of that. So when Unity came out — we’ll pick on Unity
    in particular, because it’s just such a well-known product — when it
    came out, it was the game engine that most of these game studios I’ve
    worked for wanted to build. And that was really unique; they had
    basically taken what would normally mean millions and millions of
    internal R&D dollars, and turned it into this tool that pretty
    much anyone can download for free. But what happened over the past
    few years is, it’s become kind of the de facto interactive 3D tool.
    And it was for me as well; I’ve been a Unity user forever. What we
    learned when we started building a platform at Magic Leap for third
    party developers that are not necessarily all looking to build video
    games — so, enterprises and brands — the conversation there was
    first, somebody in your team needs to learn Unity to even get
    started. Just like you said.

    Alan: And this like a red flag

    for these companies because they’re like, “what the hell is
    Unity?”

    Paul: Right, yeah.

    Alan: And then they ask their

    tech teams and they’re like, “does anybody know Unity?” And
    nobody knows what it is. Then they look it up, they’re like, “oh.
    Yeah, well, that’s for video games.”

    Paul: Right! That’s exactly

    right. And the disconnect that has been — coming as a veteran game
    developer — a young kid comes up to me and says, “I want to get
    into making video games.” I’m gonna say “download Unity —
    for free — and take the tutorials, and you’ll learn just as much
    about real professional video game development as anyone else that’s
    actually out there as professional video game developers.” So,
    in our world, Unity — and let’s not just pick on Unity all the time,
    you know, there’s Unreal. There’s these other engines–

    Alan: Improbable.

    Paul: Yeah. For us, they’re the

    easiest way to get in. But then you have to remember — what I saw
    firsthand — was most of our target market for Torch, and most of the
    people I was dealing with at Magic Leap, they’d never heard of Unity.
    You’ve got to imagine there’s a much bigger world out there besides
    ours, that people don’t even know where to get started. I said,
    “look, the world is going to move towards spatial computing,
    where computing is going to be in our world, and there’s 3D input,
    there’s 3D display, and there’s cameras involved. And we’ve got to
    come up with more accessible ways to build software and experiences
    for these platforms, that doesn’t just come from video game
    technology.” (All that said, video game technology certainly
    plays an important role in all of this.) We said, “well, how are
    people building mobile apps today? How are web apps getting built?”
    Businesses are run — and new businesses are created — on top of
    these platforms. How do people build software — in 2018 at the time
    — what’s their workflow? The workflow is very design-oriented and
    very visual, at first. Instead of us building a piece of functional
    software, and then handing it to a designer and say, “hey, make
    this look nice and usable.” The mobile world in particular has
    put a lot of investment and flipped it on its head and said, “let’s
    make a functional prototype first — that everyone can all agree
    around — and say, yeah, this is the thing we want to build,”
    and then you engineer around it.

    That was ultimately how we arrived at

    the current version of Torch, where we wanted to fit in with that
    enterprise workflow. And we say, “well, you’ve already used this
    idea in mobile apps in particular: prototype first, in-design first.
    So that’s what we built for AR; anyone can just jump into this and
    start putting 2D assets in video. We help you find 3D models. We have
    the requisite Sketchfab and Poly integrations. You can find 3D
    models. We’ve got Dropbox integration. Even though anyone can
    download it and start playing with it and working in it, we’ve tuned
    the integrations and the workflow around your standard UX designer,
    or a creative person at an agency, or someone that’s already building
    digital products that are enterprise, and we’re saying “here’s
    how you can start to test out, and share, and show some of these
    early ideas around augmented reality.” And as you get more
    comfortable with what’s good and bad in mobile augmented reality in
    particular, we’ll be there for you to help you get that deployed, and
    help you get that integrated, and turn it into a real product.

    Alan: So it’s really a

    prototyping tool then.

    Paul: So… it’s funny; it

    started strictly as a prototyping tool. Anyone can jump in and build
    something. The only thing you can really get out of it, was you could
    record a video — which is still very important in the screen-based
    world we’re in still, to be able to share an AR experience through
    video. But to add a collaborator, or have someone actually view what
    you’ve built in real time, you had to add them as an editor. We have
    a Google Doc-style, real-time collaborative editing, where you can
    have as many people as you want in a project, but you’re also giving
    them permission to edit the project.

    Alan: That’s the last thing you

    want. [laughs]

    Paul: Yeah, yeah. We’ve had

    people ask, “how many people can I add? Technically, how many
    collaborators can you handle?” And the answer is always,
    technically way more than you actually want collaborating, anyway.

    Alan: No kidding.

    Paul: We’ve had upwards of, I

    think, 50 people on one project before. The way we do the
    collaborative stuff, it’s not very taxing computationally. So, you
    can have tons and tons of people in there. After being out for… I
    would say, two or three months, we started seeing this trend, where
    people were coming to us and saying, “Torch is great. It’s the
    first time I’ve been able to actually feel like I’m creating in AR; I
    can pull in my assets” — and these are all professionals and
    they’re very limited on time — and they’ve said, “but how do we
    get this out of Torch? Where does it go?” Keeping in mind, we
    were patterning ourselves after — back to the mobile app world —
    where people may prototype in something like Sketch and InVision and
    Figma — these functional prototyping tools — and Framer. And then,
    once they decide to build the production version, they usually go to
    code; they’ll build it in React or whatever. And so originally, our
    thought was, well, we’ll get the creative people iterating visually
    in our prototyping tool, and that will inform the production team.
    So, these people will probably wind up building this stuff in Unity,
    or Spark, or Lens Studio — whatever the tools are at the time. But
    there’s this moment of handoff. The interesting thing in hindsight is
    kind of obvious, which was what I said earlier: a lot of the people
    that found us, don’t even know what Unity is.

    Alan: So you’re like, “oh,

    wait a second, we’ve built this tool for you. And yeah, you can use
    it. But then you got learn… yeah. Oh, oops!”

    Paul: Yeah. And on top of that,

    the things people are building today are fairly simple. Even the
    people that knew what Unity was, they’re like, “wait, you’re
    telling me I’m going to rebuild this thing, but it already works in
    Torch? So why can’t I just get it out?” And that was always on
    our longer-term roadmap. But we’re like, okay, this is obviously the
    direction we need to support, because now we have this very
    accessible, extremely fast workflow, that you can use as just a
    prototyping, pre-visualization environment. But we started adding
    more and more functionality to it, that would allow you to build
    full-blown experiences. It’s just a totally alternative augmented
    reality workflow, that people could use depending upon their use
    case.

    And the other part of it was we were

    like, today — and still, this is true in the moment — right now,
    today, where is all the engagement, and — quite frankly — revenue,
    and where’s the rubber really meeting the road? In particular, with
    mobile augmented reality? And the obvious answer to me was social:
    Snapchat, and Facebook, and Instagram. They are pumping out a lot of
    augmented reality content. They’re making real revenue from it.
    They’re getting huge engagement. People are building lenses and
    filters that are getting hundreds of millions and billions of views.
    And brands are trying to figure out how to get into that. So we said,
    “well, those are pretty simple experiences.” We don’t do
    anything with the face in Torch; we’re fully concentrated on the
    world-facing camera, and the world-based experiences on those
    platforms are fairly simple. And we said, “well, if we gave
    people a few more authoring capabilities beyond just prototyping —
    let them hook up some more interactivity and call APIs and things
    like that — and then we allow them to publish out to these
    production platforms. We’re kind of filling a need in a lot of ways;
    filling a very fragmented ecosystem. Because the other part of this
    was,we kind of addressed the initial friction — for any enterprise
    that’s probably listening to this podcast, and they’re trying to
    figure out, “how do we even get started?” — we are trying
    to be there to say, “we are literally the fastest and easiest
    way to get started.” And we feel like we’ve fulfilled that
    promise pretty well.

    But then, the other part of it is on

    the outside of the creation; it is the distribution and deployment.
    And if you look at that, it’s very fragmented. If you want to build
    for Snapchat, you’ve got to use Lens Studio. If you want to build for
    any of the Facebook properties, you’ve got to use Spark. If you want
    to build a fully-dedicated AR app, you’ll probably use Unity. If you
    want to embed an AR experience in an existing mobile app — which is
    a very popular request we hear — you’ve either got to write to
    Google Sceneform or Apple’s ARKit, or kind of hack Unity into your
    mobile app. It’s all very fragmented by the tool. So, we’ve
    eliminated the fragmentation at the early prototyping part, but
    there’s still all these crazy problems on the distribution side. In
    the New Year, in 2019 — and most recently — we’ve put a lot of
    effort in letting you publish and export out. The most exciting thing
    we announced around that was around the time of AWE – Augmented World
    Expo – we announced Torch 3, which lets you create a public link to
    your project.

    Alan: Oh, cool.

    Paul: Yeah, it opens in the

    Torch app, as a viewer-only mode. So, you’re not adding people as
    collaborators. We don’t require the viewer to log-in or register.
    They do have to download the Torch app. But it’s a very quick, fast
    way to say, “hey, I built something in AR. I want to tweet it
    out. I want to put it on LinkedIn,” or, “I want to send it
    to my client, or my internal team.” And people can very quickly
    iterate and view it, in real-time interactive 3D.

    The other thing we announced is our

    ability to export a Torch project into another project. Our
    demonstration of that was, we were able to generate a Spark AR
    project from Torch. So — for Mother’s Day — we built a little
    Mother’s Day experience in Torch, but we actually published it
    through Facebook–

    Alan: Cool.

    Paul: –through the Spark

    export. So, that’s where we evolved beyond just prototyping, and

    [became]

    kind of a creative tool.

    Alan: It’s awesome that you

    didn’t set out with that intention, but you ended up there.

    We always knew that we would start with

    designers and grow a platform around that. I think what happened was
    we mapped to the mobile ecosystem — which is very mature — and the
    AR ecosystem is still growing and maturing. And if this were a much
    more established market, we probably could have built a pretty tidy
    business, just being considered the AR design tool. But we saw these
    bigger opportunities for filling in these gaps in the ecosystem. So,
    in some ways, it’s where we expected to go. But in other ways, we got
    there a little quicker than we had originally thought we should or
    would. And it’s been very well-received.

    Alan: You’ve been working on

    this for a bit. How are businesses using this right now?

    Paul: It’s kind of across the

    board. We’ve got people building Torch projects as internal tests or
    prototypes. But we have had people — and especially now that we just
    turned on this ability to publish and export; it’s technically under
    early access right now — we’ve been giving it out to people, so
    people are still just getting their heads wrapped around what they
    can deploy and what they can do with this capability. We’ve seen
    people use it for wayfinding — a super popular use case for us —
    because if you build content in the environment using a mobile
    device, building in a wayfinding experience — where you’re actually
    setting the checkpoints on the wayfinding experience physically in
    the environment — is just so much more intuitive and fast. For
    example, we built a couple wayfinding demos for Torch that have
    always gotten huge response online when we post videos. And… it’s
    really funny, because the first time I posted a wayfinding demo, of
    how to get from the front door of our office building to the front
    door of our office–.

    Alan: I saw that it was cool.

    Paul: It’s funny, because I’ve

    had people get to our office by saying, “I watched the video,”
    or “I remember the video and I just remembered how to get here,”
    which was kind of fun. But the funny thing was the divide in my
    super-savvy AR friends who’ve been in the business as long as I have.
    They thought we had scanned the building, or done complex
    measurements, because the wayfinding experienced in that case
    actually goes across two floors — two levels of the building — and
    they’re like, “what did you do? Did you scan it in, and then
    bring it into Unity?” I was like, “I literally stood at the
    front door and I placed the welcome checkpoint, and then I walked to
    the bottom of the stairs and place that.” We actually priced
    that out, and if you were to build it with the traditional
    desktop-based workflow, you’d have a team of people working on it,
    and we estimated it would take roughly $100,000 or more, a team of
    four people, and probably at least a few weeks to get it something
    workable and viewable. And I built it in about 45 minutes on a lunch
    break, and probably total cost — including recording the video and
    buying a couple 3D models — we were into it for just a couple
    thousand bucks. We’re talking about radically transforming the cost
    of building these experiences. So, wayfinding’s a great example of
    the cost efficiencies brought in when you actually build AR
    experiences inside of AR, like we do.

    As far as vertical markets, we’re

    seeing a lot of interest around eCommerce, obviously — in shopping.
    But also physical retail. People are really interested in bringing a
    layer of digital experience into the retail environment. Travel and
    hospitality has been very engaged. Media companies. One of my
    favorite examples — I will qualify it with they are not using Torch
    yet — but ABC News Australia. I don’t if you follow Nathan Bazley on
    Twitter, but he posts these great little infographics in AR that
    they’ve built. We actually reached out to him and talked to him about
    his process. And ABC Australia is kind of like the BBC; they’re a
    government-funded media company, and two or three years ago, they saw
    AR as an interesting way to present information and to engage. And
    they actually built an Unreal engine-based app to publish news
    content to go on with their news. It was so expensive and difficult
    to update the app, every time they had a news story! Still, kudos for
    even getting it out, because that’s a huge leap, and no telling how
    much they spent.

    Alan: Oh my God. In the hundreds

    of thousands.

    Paul: Yeah. At least. Right? But

    they did see engagement. So, when Facebook came out with Spark, they
    said, “most of our audience is on Facebook and Instagram, so
    this is a great distribution for us. We could try this again.”
    And they taught themselves Spark. So now they have a little team of
    — I think — four people, two or four people, that build these
    little AR experiences that go along with that news story. And Nathan
    was telling us — and I think I’m quoting this correctly — when they
    put out a news video on those social channels, it gets around
    30,000-50,000 views. And when they would put out a world filter, or
    AR-based experience, through the same channels, they were getting
    hundreds of thousands of views, highly engaged. What’s exciting for
    us is that they’re getting this value through this one workflow. So,
    what we can offer them — as an example — is, well, how about
    everyone in your newsroom can start creating AR experiences to go
    along with their stories, instead of running through this really
    small team that’s taught themselves Spark? That’s what we think Torch
    can provide, is that accessible workflow. And by the way, if you’re
    already putting together the experience and these assets, and you’re
    building this AR thing, why not deploy it everywhere AR can be
    viewed? Why not push it to not just Facebook, but possibly Snapchat?
    But also your own mobile app that people have installed? And what
    about wearables? Giving people this flexibility and freedom of
    publishing is something that we’re seeing resonate with, like, media
    companies; people in the book industry, and film and television.

    Alan: You don’t want to make

    things twice, that’s for sure.

    Paul: Not when it’s this hard

    and expensive — and experimental — for a lot of people.

    Alan: No, you’re right. So

    you’ve been working on this for a couple years now. You were Magic
    Leap before. What are some of the experiences that you’ve seen —
    either made on Torch or otherwise — that have just kind of blown
    your mind?

    Paul: I mean, obviously, my

    early days and Magic Leap, it was really where I saw incredible
    things I’d never seen before. That was when I became convinced that
    spatial computing was coming. Some of that stuff is now public. Now
    that they’ve released the device and some of the content, I was a
    part of the org of that company that built the Dr. G, game where
    they’re shooting robots.

    Alan: Yeah. Cool to see that for

    the first time.

    Paul: And we’re talking 2014?

    That was pretty cool, but it’s only gotten better. Obviously, most of
    my most crazy experiences have been around that tech in particular,
    just because we used a bunch of different hardware and stuff. The
    Magic Leap one that just shipped last year is certainly the most
    consumer-friendly version of the tech that we’d worked with. But
    there were some demos and things that I saw that were just very
    unusual, where people are claiming that they feel temperature changes
    on their hands when a little firefly-type robot flies up to their
    finger, or they actually have a sense of weight of an object because
    of the way the optics were kind of showing stuff in true 3-D. So some
    of that stuff was pretty mind-blowing.

    I’m trying to think of my most

    recent… I really think, because I’m so in the weeds and I always
    look at the technical execution of stuff, both Apple and their quick
    look stuff that they’re showing, where they’re actually real-time
    generating shadows, light estimation and reflections. And I don’t
    know if you’ve seen it, but you can bring in, like, a shiny toaster,
    and you can wave your hand past the virtual toaster, and you can
    actually see your hand reflecting in it.

    Alan: How are they doing that?

    Paul: They’re building on an

    environment map in real time. And so as you’re moving around–.

    Alan: What, are they using the

    camera to capture the environment?

    Paul: Yep.

    Alan: Oh, my God. That’s

    amazing.

    Paul: Yeah, it’s really cool. To

    be fair to everyone else, Apple’s very tightly coupled to the
    hardware. Everything is super optimized, and they can actually do
    these things because they’re in control of the hardware. It’s a
    little more difficult to do in a very cross-platform type of context.
    I really liked the… I want to say “wonderscape,” but I
    think it’s “wonderSCOPE…” the books–

    Alan: Oh yeah. Those are cool.

    Paul: Yeah, I like to show

    those. The other part of it is, is the experimental side. I follow a
    lot of the Snapchat lens and the Instagram creator community. There’s
    some folks like Zach Lieberman and Max Weisel — they’re all doing
    really interesting stuff, and they don’t have a commercial
    motivation. They’re just seeing what weird things they can do with
    this technology. And I really think that’s where we’re seeing the
    most creative stuff come out. Zach Lieberman in particular has an app
    called… Weird? Is it Weird Type for ARKit? It’s like a toy type of
    thing, where you can walk around and place words, and have them react
    to your movements. And that’s always pretty fun to show people is
    really cool.

    Alan: Have you tried Babble

    Rabbit?

    Paul: Yeah. That’s Patrick

    [O’Shaughnessey]’s. His baby, right? That’s running on top of 6D?.

    Alan: Yeah, exactly.

    Paul: Yeah. We’re buddies of the

    6Ds guys.

    Alan: Actually, Matt

    [Miesnieks]’s been a guest on the show.

    Paul: Oh, nice. Yeah. I’ve known

    him for a while. We actually announced that we integrated 6D into
    Torch as a proof of concept.

    I’m pretty excited about both occlusion

    and persistence. I think persistence really changes the game for a
    lot of people. Once people start to get their head around — again, I
    go back to our target market; they’re so new to this world — I’ve
    shown people in real time; I’ve built a project in Torch on an iPad
    in front of them, and I’ve built a little scene on top of a table.
    And even then, they still don’t quite get that they can walk around
    that thing that I’ve put out into the world. They think it’s like a
    static [image]; like, a 2D thing on top of video. They just… people
    still have not unlocked the spatial part of their mind with this
    stuff. Which is crazy, because we live in a 3D world, and 3D people.
    When you do see people get past that initial understanding of what’s
    going on, then their assumption is, “oh, well, when I build
    something, or place that in the world, it’ll just stay there, and
    somebody else walks in the room, they’ll see it. And if I leave the
    room and come back tomorrow, it’ll be here tomorrow.”

    Alan: It should, really.

    Paul: Yeah, “should!”

    Yeah. They’re absolutely right.

    Alan: Let’s be honest. That’s

    what we expect. And I even expect that! The only technology that’s
    lived up to its promise of, like, rock-solid persistence has been the
    Hololens.

    Paul: Yeah. It is a hard

    technical problem to solve, but there’s so many people working on it,
    and we’re getting closer now. Microsoft’s got a great product around
    it. Google kind of shocked me a couple of years ago, when they
    announced their spatial anchors were cross-platform.

    Alan: Apple seems to the only

    one that is playing in their own sandbox, and they don’t play well
    with others.

    Paul: Yeah.

    Alan: Like, what is USDZ?

    Paul: Yeah.

    Alan: Come on. Like, everybody

    in the world is moving to GLTF — for the people listening, GLTF and
    USDZ and FBX, they’re all 3D model formats, and the world hasn’t come
    to a standard. But we were getting close. Everybody was moving
    towards GLTF, and then Apple decided to invent their own.

    Paul: Yeah, yeah. We used GLTF

    at Torch. We have a pretty sophisticated asset processor, so we
    actually take 70 different file formats. But on the back end, we
    always turn them in the GLTF, and on our export, we always turn them
    into GLTF.

    Actually, I got a funny little side

    story around that; as a part of this export and publish thing —
    having the industry agree upon a 3D model format, like you said, it’s
    still not fully agreed upon, but it’s getting pretty close; if you
    can handle GLTF, FBX, or OBJ, those are pretty well-supported,
    well-known file formats, but they’re not interactive. There’s no
    interaction in that. And the Torch is all about building interactive
    scenes. I put an object in a space, and I want to respond once
    somebody walks up to it, or when they look at it, or when they tap
    it. To be able to do this whole publishing and export thing, we had
    to come up with our own GLTF-equivalent for interactive scenes; this
    portable file format for saying, here’s a construction of a scene,
    and here’s all the interactions that are connected to it. Apple just
    announced — at WWDC a few weeks ago — their reality kit effort, and
    included in that is… I forget the name. It might just be Reality
    Files. They call them Reality Files, and they’re actually have
    interactivity in them, and they can be generated from their tool
    chain and be shared across tools and all [sorts of] stuff.

    So, I was talking to someone on the

    market team about it, and I said, “oh, that’s really cool. You
    know, we’ve had to do our own thing, and we want to learn more about
    your file format, and maybe it’s gonna become a standard.” And I
    was like, “have you guys thought about cross-platform?” And
    he said, “we’re already cross-platform.” I’m like, “oh,
    wow, that’s great! “And he said, “yeah, you can use it
    across iOS; iPad OS or Mac OS.” That was his definition of
    “cross-platform.” We think a little bit more in terms of,
    we want you to be able to build and view content on Hololens, Magic
    Leap, phones, tablets, looking glass display; anything that is a
    reasonable place to view AR. We think your interactions should be
    able to be distributed on those platforms.

    Alan: Let’s put on our business

    hat, here: what are some of the business applications that you’ve
    envisioned for this? How will people use this?

    Paul: So for us, what we’re

    seeing is people wanting to add AR capabilities to their existing
    systems. And so — as an example, a company that sells CRM platform
    for the heavy equipment industry. Well, this is a platform that, when
    sales reps go out and they’ve got all this literature around the
    different products — and heavy equipment in particular — has all
    these crazy configuration options. This company built a platform with
    a mobile component that lets them organize all this information, but
    it’s all based on, like, PDFs and images and spreadsheets. And so
    they said, “we see where AR is super helpful, because we could
    — first of all — show something at scale on location to a customer
    and say, ‘oh, if you want this backhoe, it’s not going to fit in this
    particular area,’ or to show different configurations in the sales
    process at scale.” Like, people can actually walk around and
    look at this stuff in detail.

    So for us, what we’re offering is their

    capability to inject an AR capability into their existing platform,
    and say, “we’ll just use Torch to build the different pieces of
    interactivity in AR, and then use our SDK to be able to surface this
    stuff inside of our own app.” We’re seeing a lot of people
    thinking like that, which makes a lot of sense, right? As enthusiasts
    of the industry, you hope people just go whole hog in, and just say,
    “AR is going to disrupt everything, and you should be thinking
    about it for not only your marketing, but your internal processes and
    your retail side and your sales side.” But rationally, these are
    companies that are placing bets, and they’re dipping their toes into
    the waters. They’re looking at how they can… oh, man. I just now
    thought of this: they’re looking at how they can augment their
    current product line, or business, or whatever it is they do. So
    we’re seeing a lot of that.

    People that are — like it’s said, the

    retail side — people that have invested a lot in mobile
    applications, and they have these really interesting AR ideas for
    their physical locations. Like, when a customer comes in and you have
    a personalized experience; you can help guide them to the appropriate
    things that they’re looking for. You can make recommendations. All
    this great, engaging stuff, but they don’t want to put out the AR app
    that that somebody has to download and install, and it’s totally
    separate from their primary app that already has millions of
    installs. And that way, that works very similar to the CRM example,
    where they just say, “we want an AR capability in our app that
    we can publish content into, and we want more and more of our team to
    be able to create the content and publish it.” So, retail has
    been a big one. And eCommerce, you know, obviously; pretty
    visualization of a product before you buy it, and making that not
    just a model that you stick in your room, and can’t only scale and
    rotate it, but it actually tells you about itself and you can
    actually buy it in the moment.

    This has always been the difficult

    question for me to answer, as far as what is the addressable market
    for AR. It’s everything. It really is the easier thing for me to say
    — as you mentioned in my bio — you know, I kind of got into
    software in the very early days of the web. In those early days,
    people were saying, “what do we even need a Web site for.

    Alan: [laughs]

    Paul: And then there’s the

    progression of, “well, we should have a Web site, but we’ll just
    stick our company’s logo on it. And then an About Us page.” And
    then over time it became, “wait a minute: real value is
    happening. A real audience exists on this platform. Not only do we
    have to have a website, but we’ve got to have some form of
    transaction happening there. We could run our support through it. We
    could run our business through it.” And then eventually,
    everything matures to the point where people say, “well, we’re
    going to build a business entirely on top of this. We aren’t this
    existing business trying to figure out how to incorporate the web
    into it–“

    Alan: “–the web IS our

    business.”.

    Paul: Right. And then the same

    exact thing happened with mobile! You have people said, “why do
    we need a mobile app?”.

    Alan: That is… like, honestly?

    The people that are asking these questions: if you’re listening, and
    you’re asking, “why do we need an AR app?” Think about what
    Paul’s saying here. “Why do you need a website?” “Why
    do you need a mobile app?” These are questions that seem
    absolutely ridiculous to ask now, because the world is on web, and a
    larger portion of the world is now on mobile. If Google is all-in on
    AR, Apple’s all-in, Amazon, Facebook, Walmart — like, every major
    company in the world gets it. So, it’s coming.

    Paul: Yeah. Yeah! Without a

    doubt. When? Now that’s the trillion-dollar question.

    Alan: You know what? You just

    said the magic number: a trillion dollars. And I’m going to unpack
    this quick, because I actually predicted that XR will create a
    trillion dollars in value, in five years.

    Paul: Yeah.

    Alan: The industry itself —

    just hardware and software — is going to create about between $400-
    and $500-billion, right?

    Paul: Yeah.

    Alan: That’s based on all the

    different studies that are coming out. So, just the sales. And if you
    add it up… so this year we’ll do probably $20-billion. Last year
    was $10-billion. Next year to be $40-billion. It compounds. So by
    2021, they’re anticipating $100-billion a year. So, forecast out to
    2025: we’re looking at… call it half a billion [dollars] created.
    Right? And that’s just half a billion dollars. That’s not factoring
    in one dollar of value created for engineers, doctors, hospitals,
    designers, retailers, training, education. If you factor in the value
    created with this technology, it’s in the multi-trillions.

    Paul: Yeah. Yeah! We’re standing

    on the shoulders of the web and mobile, and we’re introducing totally
    new forms of interaction that we’ve only begun to understand.

    Alan: I know! It feels like I’ve

    been doing it forever, but it’s only the beginning.

    Paul: Yeah, no, it is. It’s

    still early days–

    Alan: Can I retire yet, Paul?

    [laughs]

    Paul: No. Not yet. Just like me,

    we’ve gotta hang in there a little bit longer.

    Alan: I think we’ve got to grunt

    it out. So, what is your timeline prediction on this, then? When are
    we going to see AR, in its different forms, take off?

    Paul: I hesitate to do, like, an

    actual year, but what I have observed is that last year, when we were
    out in the market, most of the enterprises we were talking to had
    experimental and proof of concept-type budgets — things that were in
    the emerging tech group, or some kind of R&D fund.

    Alan: “We hired a kid out

    of high school to work on Unity.”

    Paul: Yeah. This year, it’s very

    much, very serious conversations around… it’s still early. Most
    still haven’t figured it out, how it fits in with their business. We
    spend a lot of our time educating — as you do as well — but we are
    seeing serious budget considerations around, “this is going to
    become part of our business.” And so I do see that progression.
    I talked about where it’s, “ehh, this is kind of weird and
    experimental. Maybe we’ll do it, just to kind of stand out from the
    crowd,” to, “oh, it feels like we really should be on top
    of this early, because we’ve got the extra money for it, and time.”
    It seems like it’s coming. And then next year, I think there’ll be a
    whole lot of people jumping on that bandwagon. I still think we’re
    probably — I would say — two to three years out from it being as
    vibrant as those Web 1.0 days.

    Alan: It’s interesting, because

    my prediction — and I don’t say this in public, and I guess this is
    going to be the first time I’m saying it — my prediction is: 24 to
    36 months, we’re going to see massive growth. Like, exponential
    growth. We’re going from $10-billion last year, $20-billion this
    year, $40-billion, $60-billion, $100-billion. So, we’ll be in
    $100-billion market, which is huge. But we’re also going to be seeing
    a roll up of the entire ecosystem. I think there’s going to be big
    companies that realize, “oh my God, we need an in-house team for
    this.” And rather than try to scrounge it together, they’re just
    going to start acquiring studios.

    Paul: Yeah.

    Paul: And it’s kind of

    interesting, because this technology is not just about the platforms
    like Torch, but it’s also about the content creators. A lot of
    investment has gone into platforms and products, but they’ve
    neglected the fact that these studios are really, really vital.
    That’s why we actually started XR Ignite; to bring the industry
    together, and create a community hub and investment arm and
    accelerator. To take these smaller companies that have great promise,
    and combine them with corporate clients, and bring them to that point
    where maybe they are acquired, maybe they are just selling it. It
    doesn’t matter. But we need to bring them together. And I think over
    the next three years, we’re going to see an absolute explosion of
    growth in this industry.

    Paul: Yeah, exactly right. I

    think you’re going to see people that already have a kind of
    intuitive understanding about how to execute ideas in this new
    medium, they’re going to be very valuable people, and there’s gonna
    be people that will — like me; I was a graphic designer at a daily
    newspaper building ads, and I heard our executive staff of the
    newspaper start to think about, “hey, maybe we need a website.”
    I’ve been online for a few years at this point, and I knew I could do
    enough HTML to help them out. And not only did they let me help plan
    the… I was, like a 23-year-old kid helping these executives plan
    their online department. But I also got the job as manager once it
    got set up.

    Alan: Yeah, we’re seeing that

    all over the place. Put it this way: one of the kids that we
    sponsored when he was 13? He’s 16 now. I think it works for Google
    now. He worked for Microsoft last year.

    Paul: The other thing that

    excites me about it is: I think we should really rethink how software
    gets built. AI plays a role in this as well, but that’s one of the
    reasons why I was pretty proud that we introduced a totally different
    workflow into AR, because we’re not reusing tools from other
    industries. We’ve built something from scratch. I think it’ll be
    interesting. I don’t know if coding… it may not be coding anymore,
    right? It might be application creation. Experience creation.

    Alan: Yeah, you’re absolutely

    right. I do a talk called The World in 2039, and part of it is, what
    are the jobs of the future? What happens when, all of a sudden, our
    education system catches onto coding and says, “we’ve got to
    teach everybody coding” — which they’re doing now; they’re
    starting to teach code, which is great. But what happens when code
    starts to code itself, right?

    Paul: Yeah.

    Alan: We could go down that

    rabbit hole for days.

    Paul: Yeah. Totally.

    Alan: Paul, I want to thank you

    so much for taking the time to join me on this podcast. I’m really
    looking forward to digging into Torch and seeing what we can build.

    Paul: Thank you for having me. I

    also wanted to say, you’re a prolific poster on LinkedIn. You’re a
    huge advocate for our industry. And I know that’s not easy to do.
    Thank you for all the time you put into that.

    Alan: I appreciate it. It’s a

    labor of love for sure. And my mission in life is to inspire and
    educate future leaders to think and act in a socially, economically,
    and environmentally-sustainable way. I believe that this technology
    is the way we are going to educate in the future. I’m doubling down
    on our future, and the kids who will create it.

    Paul: Absolutely.

    42 min
  • Lighting the Torch for In-App AR Development, with TORCH's Paul Reynolds
    Game engines
    like the versatile Unity have long been the go-to for AR development,
    and for good reason. But its reputation as a video game engine can
    also be intimidating -- especially to those who want to create AR
    software for enterprise. That's why Paul Reynolds lit his TORCH; an
    app he co-founded that lets you design your own AR platform, right in
    the palm of your hand. He chats with Alan about his claim to flame.
    Alan: Hey, everyone, my name's
    Alan Smithson, the host of the XR for Business Podcast. Today's guest
    is Paul Reynolds, the CEO of Torch, a really exciting augmented
    reality platform. It's a mobile augmented reality development and
    deployment platform for enterprise. Paul has been a software
    developer and technology consultant since 1997 - since before the
    interwebs! In 2013, after 10 years of creating video games, he joined
    Magic Leap where he was promoted to senior director, overseeing
    content and SDK teams. At Magic Leap, Paul recognized the lack of
    accessible tools for non-game developers that was hindering
    widespread adoption of immersive and spatial computing technologies.
    In 2016, Paul moved to Portland, Oregon, where he founded Torch to
    address this very problem. To learn more about Torch, you can visit
    torch.app. Paul, welcome to the show.
    Paul: Thanks for having me.
    Alan: It's such a pleasure. I've
    been looking forward to this episode. Torch is such a cool platform
    and I keep seeing your posts on LinkedIn of putting stuff around your
    office and stuff. So tell us, what is Torch, and how did you come up
    with this crazy idea?
    Paul: The easiest way to think
    about it is, it's a mobile application -- currently for iOS -- that
    lets anyone build interactive spatial scenes. So, you create a
    project and you're building it in the camera of your device, which
    means you're also walking around the space, or moving around the
    space and you're building up interactive experiences visually,
    without writing any code. We call that the design environment, and
    that's the freely available [option] -- anyone can jump into it and
    just start building. What makes it a platform is the capability of
    taking what you've created in Torch, and exporting it and publishing
    it and integrating it into your existing app, or pushing it out to
    another platform or tool. What we really wanted to focus on was
    allowing people to iterate in augmented reality -- directly within
    augmented reality -- as opposed to sitting on a desktop computer and
    trying to figure out how to work a game editor, and get more people
    able to work productively in 3D. That's really the heart of it.
    Alan: That's so cool, because if
    you're sitting at your office, you're like, "wow, this AR stuff
    is hot. It's amazing." You know what, go learn Unity and coding
    and figure out how to actually make it. Six months later, you're
    like, "oh, look, I made a portal."
    Paul: [laughs] Right.
    Alan: What you guys have built
    is a simple way to just do it visually.
    Paul: Yeah. So, my background
    was in video games, back in the day where everyone was building their
    own engine. You really didn't even have time to build a really nice
    editor on top of that. So when Unity came out -- we'll pick on Unity
    in particular, because it's just such a well-known product -- when it
    came out, it was the game engine that most of these game studios I've
    worked for wanted to build. And that was really unique; they had
    basically taken what would normally mean millions and millions of
    internal R&D dollars, and turned it into this tool that pretty
    much anyone can download for free. But what happened over the past
    few years is, it's become kind of the de facto interactive 3D tool.
    And it was for me as well; I've been a Unity user forever. What we
    learned when we started building a p
    0 min

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