The workforce has changed in recent years and the result is that “old school” techniques used for training and collaboration are no longer as effective. Millennials are now the largest generation in the workforce and Gen Z are right behind them.

These generations learn by doing — not by listening. Classroom presentations and watching videos are simply not enough to engage these learners. VR fills this gap by creating memorable learning experiences that translate to real-world skills transfer on the job. VR is also the core medium behind the Metaverse, whereby companies can virtually interact with customers, employees and supply chains to design and test products, and more. Companies that expect to thrive in the future must gain VR proficiency now.

Industrial companies are using VR across four (4) functional areas: product development, workforce training (MRO, EHS), marketing, and sales.

Product Development teams use VR for rapid prototyping, real-time concept development and manufacturing simulation prior to investments in physical prototypes and manufacturing tooling.

Learning & Development professionals to simulate hard skills training (e.g. MRO), safety training (EHS), and soft skills development in combination with existing LMS content.

Marketing teams are using VR for hybrid and virtual events to allow buyers to experience product solutions without having to be in the same physical location.

Sales organizations are using VR to conduct virtual product demos across time zones and borders to engage customers earlier in the sales process and then to train their operators after equipment delivery (customer retention). 

Yes, and there is brain science data and industrial use cases to prove it. Because the brain perceives VR experiences as real-world experiences, it engages emotions and records them as memories for greater recall.

PwC research shows VR improved training time, learner confidence, emotional connection, and learner focus by 3X-4X over classroom learning. VR allows for real-world simulation without interrupting business operations (revenue), requiring physical travel by SMEs to training locations (cost), or creating dangerous scenarios for safety training (risk). VR doesn’t replace hands-on training, it accelerates it as learners gain tens (or hundreds) of hours of task familiarity before ever having to do it in real-life.

Companies deploying VR can measure ROI by assessing the impact on (i) making money, (ii) saving money, and (iii) reducing risk.

As it relates to how VR helps companies make money, the two predominant use cases are pre-sales (virtual product demos to overcome time/distance barriers of engaging sales leads) and post-sales (accelerating customer installation and operator training). Simply put, did the VR simulations help buyers visualize a solution to enable a sale? Subsequently, did the VR simulations fast-track the customer’s ability to adopt and use their purchase?

As it relates to saving money, while VR has a moderate up-front cost, it can be amortized over hundreds (or thousands) of trainees/sessions such that it becomes cheaper than on-site or classroom training and you don’t have to shut down a fuel terminal, manufacturing line, or other operating unit — thereby losing production (often a million dollars a day).

Finally, the risk reduction is obvious as VR offers a “safe place to fail” for training operators on electrical systems, operating at heights, fuel/vapor systems, and more. 

It depends on the comparison. VR is not a cost-effective option for training, sales or customer support if the user audience is small. For training small groups of 5-10 people a few times a year, there are other methods that might suffice (although learning efficacy may not be as high). However, once the user audience reaches several hundred people or more, the cost amortization becomes attractive.

Remember, it’s not just comparing the cost of VR headsets and content against flying a SME to a training site — it’s the business interruption and other financial impacts that tip the scales in the favor of VR. A refinery fuel terminal that shuts down for a single day to train truck drivers to safely fill fuel tanks can cost $750,000 alone in lost revenue. Therefore, a VR training module that might cost $100,000 looks very attractive.

Similarly, if hundreds of workers are going to use a training module on a semi-regular basis (e.g. quarterly) the cost per worker of VR learning becomes less than a cup of coffee. Each use case is different, and that’s why we help each customer match the technology to the appropriate use case to ensure they receive ROI.