Exploring Virtual Reality Technology and Its Applications in Retail Industry

This project explores the Virtually reality (VR) technology and its applications in enterprises. It identifies an opportunity of installation in a retail organization for the improvement of the experience of the shoppers so that they give more business to the retailer. The research would explore different types of VR technologies and identify their potential applications in retail customer service scenarios.

8/5/2018
Capstone Project Proposal and Plan | Microsoft Office User
Recent Trends in Virtual Reality

Contents
1 Rationale.............................................................................................................................................3
1.1 Problem domain.........................................................................................................................3
1.2 Purpose and justification............................................................................................................4
2 Sponsor or Supervisor recommendation.............................................................................................4
3 Research Questions.............................................................................................................................5
4 Conceptual or Theoretical Framework................................................................................................5
5 Methodology.......................................................................................................................................5
5.1 Research and Systems Development method(s).........................................................................5
5.2 Data collection...........................................................................................................................6
5.3 Compliance Requirements (Workplace, Industry or Government regulations)..........................7
5.4 Analysis of data..........................................................................................................................7
6 Project Plan.........................................................................................................................................7
6.1 Deliverables...............................................................................................................................7
6.2 Work breakdown structure (WBS).............................................................................................8
6.3 Risk Analysis.............................................................................................................................9
6.4 Gantt chart..................................................................................................................................9
7 References........................................................................................................................................12

1 Rationale
1.1 Problem domain
This project explores the Virtually reality (VR) technology and its applications in enterprises. It
identifies an opportunity of installation in a retail organization for the improvement of the
experience of the shoppers so that they give more business to the retailer. The research would
explore different types of VR technologies and identify their potential applications in retail
customer service scenarios.
Virtual reality is an immersive technology that provides a digital discretion of a scenario that
exists for real. It replicates a real environment and creates its stimulation. To build this
simulation, special equipment’s are required such as Google Cardboard and VR headsets like
HTC Vive, Samsung Gear, and Oculus Rift.
The increasing popularity of VR applications has some driving forces behind such as
accessibility options, Internet of Things (IoT) ecosystem, robotics, and platform support for
technology. In the Internet of Things (IoT) environment, consumer journey can be tracked across
channels which gives an opportunity to implement VR equipment’s in different consumer
environments that can help a retail gather the contextual information about a consumer through
these devices. Robotic devices with VR immersion can be used to build new forms of hardware
that can enable a multisensory experience for consumers. Smart mobiles are used by many
consumers today. These devices come with good computing power and long battery life that
allows them to use VR applications for virtual recreation of the world around (ICEM, 2016).
VR can be used in retail for acquiring data, creating experiences, and providing customer
support. Acquisition can be used for creating immersive brand experiences, running product
trials on consumers, creating customized offers for consumers, providing navigation facility to
store visitors, capturing product history, and creating brand differentiation (Hidalgo, et al., 2016).
VR is used for conversion which involves promotion of remote consultations, creation of
immersive virtual store experiences, and running schemes for in-store engagement. Special
offers and behavioral nudges can also be created with VR support for retention of customers
(White, Robertson, & Compernolle, 2017).

1.2 Purpose and justification
When virtual reality is used in retail, a fully immersive setting can be created in which a real
retail environment is replicated to stimulate senses of consumers so that they can feel stronger
associations with the brand. Major applications of VR in retail industry include pre-planning for
consumers to be able to take fast purchase decisions, gamification to provide support products,
information delivery through virtual coupons, building scenarios for product customization,
product activation through storytelling, virtualization to help consumers search products, and so
on. VR can help a retail store in a number of ways through these applications such as increase in
retention rates of consumers, higher conversions, increase consumer engagement, and more
(Morya, Nigam, Rehman, & Kumar, 2016). With these benefits realized, retailers can achieve higher
revenues and gain brand loyalty with better consumer engagement. Thus, Virtual Reality(VR)
makes a promising technology for retail business. Thus, this research would explore how it can
be used in different scenarios in retail to gain business benefits in different ways (Williams &
Herry, 2016).
2 Sponsor or Supervisor recommendation
The sponsor organization for the project would be the retail organization that is planning to
enhance its consumer experience in the stores through the best use of technologies and virtual
reality can be an option for them. The sponsor has provided some recommendations while it is
being planned to implement VR in the retail organization (Kruh, Coonan, & Devan, 2017). These
include:
 Samsung Gear Virtual reality equipment may be used with the users to connect them with
the company remotely to give consumers the experience of the physical store.
 The VR equipment can be used at the retail store for giving consumers a virtual journey
of the latest fashion shows with labels sold in the store.
 Shoppers must be allowed to try different clothes through a 3D avatar that can be created
using a kiosk at the store which would scan the body of a consumer to create an avatar
and then the installed VR application would create the simulation (Beresford, 2017)

3 Research Questions
The aim of the research is to explore how VR can be used in retail store for enhancing
experience of the consumer. This aim would be realized by answering following research
questions:
 How does a Virtual Reality System work?
 What are different applications of Virtual reality in retail?
 How can VR systems be installed in a retail store?
 What benefits can the organization achieve with implementation of VR in a retail
store?
4 Conceptual or Theoretical Framework
A research is a systematic exploration of any area of study which is directed by stepwise
procedures defined in conceptual models. A research involves identification of a problem,
defining of objectives, development of arguments, collection of data, analysis of collected data
for proving arguments, and interpretation of the same to answer research questions. The research
can be basic or applied when used for an enterprise. Basic research expands the knowledge base
on a subject. Basic research mostly deals the theoretical assumptions and have a universal utility.
Applied research on the other side is more practical and involves development of technologies to
solve an existing problem in the domain (Numanaker, Chen, & Purdin, 1991).
5 Methodology
5.1 Research and Systems Development method(s)
A VR system can be developed for the retail store using a unified methodology for research and
development which would involve exploration of theories, development of VR systems,
installation, and testing. There are a variety of development methodologies that can be used for
the development of the system for the retail store and these include the following:
 Waterfall model uses a linear sequence of the development
 Prototyping can be used for the development of a preliminary product which would be
tested for identification of issues that can be later resolved

 Incremental methodologies like Agile make use of iterative processes through which the
system can be developed in intermittent phases
 Spiral method can be used for an exhaustive development of a system which combines
the linear and iterative systems such that solution is developed in multiple cycles that
provide improvements over previous cycles (Burstein & Gregor, 1999)
 Rapid Application Development is a fast and iterative development method which can
deliver high quality solutions in less time and with less investment needed (CMS, 2008)
Spiral method can be both costly and time consuming while RAD would need a very
high level of expertise for the development. Considering the lack of experience of the
developers in dealing with retail applications and VR in the scenario, this method may
not be chosen. A prototyping is usually used when there is a lack of experience so that a
preliminary version can be created and tested. However, this would need more expertise
in the team for prototyping. Waterfall model is linear and simple but used mostly for
projects where requirements are very clearly defined so that rework is less as it can be
costly. Incremental methodologies using iterative process of development appear to be
most promising methods for the current project as it would have several benefits.
Incremental approach allows less mistakes and intermittent testing, low cost
development, and so on. Thus, this project would make use of Agile methodology for the
development of the VR application for retail.
5.2 Data collection
The data would be collected using secondary sources including journals, case studies, research
reports, news reports, and books that would help the researcher understand how VR technology
works, equipment’s that are available to be used, how they are used by other retailers, how they
enhance consumer experience, and how they can be used for the development of the current
system for the retail organization. The researcher would also make use of the presentations and
business collaterals of the retail organization to understand the operations of the current retail
company so that a customized VR application can be developed for them

5.3 Compliance Requirements (Workplace, Industry or Government regulations)
OSHA safety regulations have to be followed by the organization as the implementation of VR
technologies may pose any kind of danger to the users of the equipment’s. The equipment’s used
must be safe for the users and employees and thus would be compliant with OSHA. As VR
systems would use the personal data of the users or consumers coming to store to generate the
simulations or visualizations, the company needs to comply with the Privacy Acts and ensure
that sufficient practices have been implemented for the regulatory compliance so that the private
data of the users does not get leaked or misused by any of the company representatives.
5.4 Analysis of data
Simple content analysis would be used by the researcher on the data collected and based on this
data, the categories would be created for each research question and the narrative of the content
would be presented as the analysis for understanding. These categories would include
equipment’s to be used, customer experiences to be created, processes to be followed, and
system implementation. The collected data would be critically reviewed and answers would be
obtained for each of these categories to build a plan for the development of the VR application
for the retail organization.
6 Project Plan
6.1 Deliverables
The deliverables of the current project of implementation of VR in retail include:
 Kiosk System: Kiosk system involving VR applications installed and Samsung Gear to
provide users the simulation of their experience of trying clothes
 Virtual Journey: The latest fashion products displayed in the store would have related
fashion shows going on of which the consumer would be given experience through the
use of VR in the kiosk (KANNAN, 2017)
 3D Avatar: A 3D avatar application would be implemented in the Kiosk using which
consumer would be able to try on clothes virtually on themselves (Pachoulakis &
Kapetanakis, 2014)
 Navigation: A navigation module would be installed in the VR system which would
allow consumers to navigate through the store and this would be connected with the

mobile application that consumers can use for navigation to reach specific brand or
product in the store (Allanwood & Beare, 2014).
 Ecommerce module: The kiosk and the store systems would be connected with an online
application over the ecommerce website of the company that would allow the customers
of the store to experience virtual reality over mobile or desktops even from remote
locations if equipment’s are available (Hobson, 2016).
6.2 Work breakdown structure (WBS)
1.0 Requirement gathering
1.1 VR Equipment’s
1.2 VR application in retail
1.2.1 3D application
1.2.2 Ecommerce
1.2.3 Navigation
1.2.4 Virtual journey
2.0 Planning
2.1 Scheduling
2.2 Resource Allocation
2.3 Application Design
3.0 Development
3.1 Procurement of equipment’s
3.2 Coding of VR modules
3.2.1 3D application
3.2.2 Ecommerce
3.2.3 Navigation
3.2.4 Virtual journey
4.0 Implementation
4.1 Equipment installation
4.2 Installation of modules on Kiosk
4.3 Mobile application

4.4 Ecommerce application
5.0 Testing
5.1 System testing
5.1.1 Mobile application testing
5.1.2 Web application testing
5.2 User acceptance testing
6.3 Risk Analysis
Any application development project can be faced with risks that have to be taken care of. Risk
management can be used for this which would involve identification of risks and use of
mitigation measure to eliminate or reduce risks. The current project can face the following risks:
 Lack of resources: The researcher may not have sufficient resource required for the
research and development of the VR application. An accurate prediction of the resource
requirement before starting the project can avoid this mistake (Cooper, 2004)
 Unclear requirements: If the requirements of the project are not clear, it can cause
errors in coding and development. This problem can be avoided by ensuring that the
requirements are clearly understood for which all project stakeholders must be involved
in data gathering (Gotterbarn & Rogerson, 2005)
 Cost Escalation: the cost of development can turn out to be huge which would affect the
bottom line of the retailer. This cost can be minimized with appropriate research done on
how they would be incurred and planning saving for the company as well as utilization of
the products for getting returns for mitigation (Sharma, Bajpai, Singh, & Khatter, 2016)
6.4 Gantt chart
Task 6-10th
Aug
11-
15th
16-21
Aug
22-
31st
1-10th
Sept
11-
20th
21st-
30th
1st Oct
-10th
11-
20th
21st –
31st

Aug
2018
2018 Aug
2018
2018 Sept
2018
Sept
2018
Oct
2018
Oct
2018
oct
2018
Requirement
gathering
3D
application
Design
Ecommerce
design
Navigation
Virtual
journey
Application
Development
Kiosk
Application
Development
Mobile
Application
Development
Ecommerce
Application

Development
Equipment
installation
System
testing
User
acceptance
testing
7 References
Allanwood, G., & Beare, P. (2014). Basics Interactive Design: User Experience Design:
Creating Designs Users. A&C Black.
Beresford, M. (2017). How are immersive technologies being used in retailing . Edgar Dunn and
Company.

Burstein, F., & Gregor, S. (1999). The Systems Development or Engineering Approach to
Research in Information Systems: An Action Research Perspective. Australia: Monash
University .
CMS. (2008). SELECTING A DEVELOPMENT APPROACH . CMS.
Cooper, R. (2004). Risk Analysis and Preventing Information Systems Project Failures. School
of Computing and Mathematical Sciences.
Gotterbarn, D., & Rogerson, S. (2005). RESPONSIBLE RISK ANALYSIS FOR SOFTWARE
DEVELOPMENT: CREATING THE SOFTWARE DEVELOPMENT IMPACT
STATEMENT. Communications of the Association for Information Systems, 730-750.
Hidalgo, S., Kumar, R., KRK, M., Chaudhary, A., Konda, R., & Richard, F. (2016). Next
Generation Shopping Experience. University of California.
Hobson, A. (2016). REALITY CHECK: THE REGULATORY LANDSCAPE FOR VIRTUAL
AND AUGMENTED REALITY. R Street.
ICEM. (2016). RETAIL INDUSTRY INSIGHTS FOR TODAY’S RETAILERS AND CPGS.
Interactions Consumer Experience Marketing, Inc. .
KANNAN, S. (2017). Disruptions in Retail through Digital Transformation. delotte.
Kruh, W., Coonan, D., & Devan, D. (2017). Global retail trends. KPMG.
Morya, A., Nigam, A., Rehman, F., & Kumar, A. (2016). The Digital Retail Theater: Shopping’s
Future . Cognizant.
Numanaker, J. F., Chen, M., & Purdin, T. D. (1991). Systems Development in Information
Systems Research. Journal of Management Information Systems, 7(3), 89-106.
Pachoulakis, I., & Kapetanakis, K. (2014). AUGMENTED REALITY PLATFORMS FOR
VIRTUAL FITTING ROOMS. The International Journal of Multimedia & Its
Applications (IJMA) , 35-46.
Sharma, A., Bajpai, P., Singh, S., & Khatter, K. (2016). Virtual Reality: Blessings and Risk
Assessment. Manav Rachna University.

White, D., Robertson, R., & Compernolle, T. (2017). How much is that virtual doggie in the
virtual window? Deloitte.
Williams, D., & Herry, C. (2016). FOUNDATIONS AND FUTURE OF AUGMENTED
REALITY AND ECOMMERCE. Augment