Contemporary supply chains have become more complex as a result of economic globalization, greater product and service complexity, and ever-increasing consumer demand and expectations. Against this backdrop, compression, or “the act of making something smaller or shorter,” can be a useful strategy for supply chain management (SCM) that potentially generates competitive advantages for companies. Supply chain compression typically involves the dual goals of:
- Decreasing wasteful resources related to time, assets, and personnel in the supply chain processes, and
- Increasing the velocity of tasks, decisions, materials, and information moving through those processes.
In particular, the new product development (NPD) process provides a great opportunity to realize the value of compression strategies. Indeed, anecdotal evidence suggests that issues such as long product development time, high development costs, and unrealized sales for new products remain prevalent across industries. These issues indicate that companies desperately need a new model for this vital business process.
One emerging trend that has the potential to compress the NPD process and create competitive advantage is the transition from traditional linear, product-centric innovation models to concurrent, customer-centric ones. This new paradigm, where concept development, validation, and testing all occur at the same time could be greatly enabled by new emerging 3D virtual prototyping (VP) and extended reality (XR) technologies.
NPD: THEN AND NOW
NPD has undergone significant changes in recent years. Conventional and new NPD approaches differ greatly; the former requires extensive planning, whereas the latter promotes experimentation. Conventional NPD approaches typically follow a linear sequential path, are product-centric, are internally focused, and involve only limited communication and feedback among the various stakeholders (see Figure 1: Model A). Limited communication and feedback lead to an NPD process that is too slow, requires too many design changes, is costly, and is often poor in initial quality. Leading companies recognize these shortcomings and are transitioning to a new model that is more concurrent, more customer-centric, and emphasizes interactive and iterative feedback and frequent communication in all NPD stages (see Figure 1: Model B).1
[FIGURE 1] Model A & Model B: Conventional versus Agile concurrent new product development models
Prototyping processes and approaches also vary significantly under the two models. Under the conventional NPD models, a prototype represents the predefined product and a well-formed design concept. The concurrent approach, on the other hand, assumes that products cannot be specified in detail or a priori of testing and validation of the design concept. Instead, the process involves creating various prototypes and using them iteratively such that testing and validations are conducted while prototypes themselves are still developing to gradually concretize and adjust the product design to reduce uncertainty. 2
Virtual prototypes (VPs)—which entail a 3D digital model or rendering of a concept that can be presented, analyzed, simulated, and tested like its physical realization—can greatly enable agile concurrent NPD.3 In an NPD project, VP approaches are either executed alone or together with physical counterparts in what is known as “mixed prototyping.”
XR TECHNOLOGY: A VP GAME CHANGER
To date, the potential benefits of VP approaches are constrained by existing technologies, which include classical CAD (computer-aided design) systems, numerical simulation (mathematical models that simulate physical processes), and interactive computer tools. Because users are interfacing with the prototype through computer screens, mice, and keyboards, their ability to access and interact with the prototype and understand its dimensions is limited.4 While mixed prototyping allows users to draw upon the complementary strengths of the virtual and physical prototypes, it also increases the complexity of the prototyping processes, as there are challenges in transitioning between the two domains.
The advancements in extended reality (XR) technologies, however, are opening new doors to enable not only more integrated mixed prototyping but also more immersive and interactive VP approaches.5 Briefly, XR-enhanced interactive VP approaches use virtual reality (VR), augmented reality (AR), and/or mixed reality (MR) technologies in conjunction with VPs. Processes such as photogrammetry (the process of using photographs to obtain precise measurements of physical objects and the environment), 3D scanning, and 3D modeling are used to create 3D digital assets. Users then interact with these digital prototypes through various visual output devices (such as head-mounted displays or wearables, handheld displays, and traditional screens) and input technology (such as voice recognition and movement tracking). In some more advanced multimodal prototyping environments, visual displays can even be dynamically integrated with audio and haptic technology, which gives users the experience of “touching” the prototype by applying forces, vibrations, or motions. (For more information about how VR, AR, and MR can be used in virtual prototyping see the sidebar below.)
In effect, XR techniques put the human at the center of the design process and offer added design capabilities by allowing them to use several of their senses to interact with the VPs.6 Figure 2 shows the comparative benefits and disadvantages of XR-enhanced virtual prototyping, as well as those of physical, conventional virtual, and mixed prototyping.7
[FIGURE 2] Advantages and disadvantages of different prototyping approaches
WHERE TO APPLY VP
Virtual prototypes and extended-reality technology can be used during every stage of the agile, concurrent new product development process from exploring a design concept to testing and validating the technical feasibility of production methods and processes.8 But the potential does not end with the pre-launch phase, VP and XR technologies can also be used during the launch and post-launch phases in sales presentations as well as in e-commerce and brick-and-mortar retailing.9 Greater detail about how to apply XR-enhanced VP to each phase of the new product development process is provided below.
Ideation and concept generation:This stage of NPD centers on identifying and developing product ideas and potential product concepts. “Voice of the customer” (VOC) research is an important activity during this phase. Traditional VOC methods, however, are time-consuming and resource-intensive, involving ethnographic research (direct observation of customers for extended periods), interviews, surveys, focus groups, and user workshops (for example, a group workshop of innovative customers).
With VP applications, ideas are collected not only from customers but also from external partners, vendors, and the technical community through online social network methods, such as customer/user design, virtual focus groups, and idea contests. Participants from anywhere can interact with each other and with the VPs in a digital environment. For example, companies can host a web VR session, which would allow participants from anywhere to see the VPs and its elements in 3D from different points of view from a desktop computer, mobile device, or VR headset. They can compare several alternative variants of virtual product configurations and share comments, suggest ideas, or rate purchase intent. Additionally, today’s XR devices have various data-collecting capabilities—such as head-position tracking, built-in microphones for voice capture, and optical tracking systems—that can be used to capture participants’ responses to content or experiences. As a result, reactions to and interactions with VPs can be automatically recorded instead of relying solely on observations.
Concept development:Once potential product concepts are generated, they need to be further developed. VOC data are analyzed to derive product design parameters, such as functional attributes (for example, performance and quality), physical attributes (such as size, shape, and dimension), materials properties (for example rigidity and flexibility), and aesthetic elements (such as texture, color, and geometry).
Traditionally, techniques such as storyboarding and sketching are used to communicate the initial concept and allow the design team, customers, and other stakeholders to react to the concept and suggest improvements. XR-enhanced VP techniques create richer representations of objects and environments that induce higher fidelity, interactivity, and flexibility than those of more traditional approaches. Design teams not only can present a VP that looks and works like the real realization of a concept, but also can explore, compare, and iterate variations in design with greater flexibility. Furthermore, they can explore different aspects of the design that may have been challenging to create physically and/or in an environment that might be impossible to visualize in the physical world.
Concept validation and testing:The product concepts developed then need to be validated and tested for functionality, performance, cost, and resonance with customers’ requirements and expectations. This NPD stage involves an iterative build-test-feedback-revise process. Traditionally physical prototypes are used, but they can be costly and time-consuming to build. Furthermore, the ability to make modifications and explore alternatives can also be limited, or even not possible, because it would require a brand-new physical prototype to be built for the next iteration.
VP can make validating and testing product concepts faster and cheaper than physical models. A 3D VP can be used in computer simulation models to approximate the product’s functionalities. XR tools can allow users to interactively test product characteristics such as usability, ergonomics, and aesthetics. Here, a VP is projected onto a physical and/or virtual environment, depending on the type of XR system used, and users interact with the VP using multimodal XR input and output devices. For instance, for ergonomic testing, an optical-tracking device would detect the users’ point of view, while a haptic device would capture the users’ movements as they interact with the VP, providing rich 3D information on various human gestures (such as position, movement speed, and frequency of a movement). Once again, the VPs’ high fidelity and interactivity, as well as the ability to easily explore and compare design variations, make it easier to evaluate concepts. Additionally, test results and feedback can be integrated back into digital design flows. Instead of needing to build a completely new prototype, changes can be made directly and instantaneously on the same VP for the next iteration of the build-test-feedback-and-revise process.
Manufacturing validation: Once concept validation and testing are completed, the definitive concept and its specifications need to be translated into a manufacturing process and tooling design before the product is physically made for the purpose of trial production runs. Manufacturers, production engineers, and suppliers are often involved in this stage to review and approve the solutions proposed. The process often involves a number of iterations.
Traditionally, designers and engineers have used engineering drawings created by manual drafting tools or 2D CAD files to transfer design details back and forth and communicate any potential changes. With VP applications, a pre-production file of a 3D VP is used as a medium for design transfer and communication. These digital assets are capable of providing sophisticated visuals and layers of data, such as materials, component price, and properties. Additionally, XR techniques enable users to simulate and optimize complete production lines in terms of materials usage, production speed, robustness, and repeatability in a comprehensive, realistic, and engaging manner. For example, a virtual model of a production line can be created based on the 3D VP. Production staff equipped with XR devices (such as a head-mounted displays that can track a user’s motions) can then walk through, inspect, and test the processes in a life-size 3D environment. All team members can review the data captured, make necessary modification to the product design, and retune and finalize the production line solutions without needing to produce physical samples or engage in the time-consuming back-and-forth inspection of the finished samples.
Product launch, marketing, and sales: During product launch, the approved 3D virtual prototypes can be used for product presentations and promotions instead of making and shipping physical samples to showroom floors, trade shows, and sales meetings. VPs can present a lifelike, 3D view of the products, and demonstrate how they behave in an infinite number of variations and environments.
They can also be used after product launch as a complement to or replacement of physical product displays at physical stores. Furthermore, by providing customers with XR devices, retailers can give customers a chance to engage and experiment with the virtual prototype during their in-store shopping.
The 3D VPs can also be instantly transferred to e-commerce platforms to deliver more detailed, intuitive product information than standard web experiences. Furthermore, the 3D VPs, enhanced by AR, allow customers to try on/try out the products online before placing orders. Taking it even further, VPs can be used in e-stores that allow customers to move around a life-size VR environment on their phones or computers and interact with products that are virtually merchandised.
THE ADVANTAGES OF VP
XR-enhanced virtual prototyping offers many advantages over more traditional prototyping methods. For one, these technologies can potentially drive a radical compression of the NPD process by enabling functionally and geographically dispersed stakeholders to interact more frequently and at a much lower cost. The new technologies also enable design and operational flexibility without adding waste and complexity to the workflow. The dual supply chain compression goals of reducing resource waste and increasing velocity are consequently attained, bringing with them various business values as depicted in Figure 3 and elaborated below.
[FIGURE 3] Business value of VP applications in NPD, Lauch, and Post-launch activities
Enhance sustainability and reduce cost: Prototypes and samples are one of the largest cost drivers of the NPD process. The expenses associated with making, shipping, revising, and remaking iterative physical items can amount to several million dollars each year. VP applications lead to a reduced quantity of physical prototypes required to design, develop, and sell new products. As a result, hours of labor time are saved, along with a reduction in resources used, material waste, transportation and distribution costs, and carbon emissions associated with these activities.
Reduce concept-to-consumer cycle time: The digital nature of virtual prototyping enables innovation speed to be increased in two primary ways: It increases the rate at which companies develop new products and the rate at which they deliver those products to markets. The former is achieved through faster concept development, testing, and validations. Test results and feedback obtained from cross-functional NPD teams and stakeholders can be easily integrated back into digital design flows and on the same VPs. As for the latter, data associated with this digital asset (for example the design, customer feedback, and test results) can be easily retrieved and translated into technical specifications. This capability enables more accurate, smoother, and quicker handover from design to manufacturing, creating a faster time to market.
Enable collaborative and interactive NPD processes: A VP approach fosters more active interaction and collaboration among NPD team members and key stakeholders than a traditional approach that relies on sketches and storyboards. The virtual prototyping technologies create a high-fidelity 3D view of the products that shows their various features and functionalities, and the XR technologies enable the target audience to interact with the prototypes to a high degree.
Foster creativity and innovation: With VPs, designs that were previously too costly or time-consuming to prototype can now be quickly and inexpensively manipulated, iterated, vetted, and moved through the process in a matter of days instead of months. In effect, VPs free NPD teams from the traditional budget and time constraints associated with physical prototype development, fostering higher levels of innovation.
Improve prototype reusability: Most new products are derived from improvements and revisions to existing products. Virtual prototyping allows companies to easily and quickly reuse prototypes of existing products to create “new and improved” versions (for example, new colors, materials, or packages). As a result, VPs reduce the overhead associated with traditional catalog development methods. NPD teams can also avoid redundant efforts and resources by bypassing early design iterations and fast-tracking potential new products to the later NPD stages.
Facilitate customer research: Conducting customer research has always been part of the NPD process and is one of the most critical inputs to successful NPD. VPs facilitate VOC research with their high visual fidelity, interactive and automated data capture capabilities, and digital flexibility. With virtual prototypes, it is less onerous to explore a wider variation of design concepts with a larger group of consumers within time and cost constraints.
Improve customer experience: When VPs are used for in-store and online commerce, they can enable better customer intimacy, improved customer experiences, and improved customization.
THE POWER OF COMPRESSION
By applying the concept of supply chain compression to the new product development process, companies can respond to today’spressing need for rapid innovation while keeping costs and resource usage under control. In particular, VP and XR technologies hold great potential for enabling the supply chain compression dual goals identified at the beginning of this article.
By achieving these dual goals, companies can realize business value through swift innovation, increased speed to market, and enhanced customer experience, as well as improving the reputation of the firm for its contribution to sustainability through waste reduction. To be sure, VP and XR technologies are still in the early stages of development. But as they advance, these technologies could lead to the next renaissance in supply chain management, enabling competitive advantages and greater innovation through a highly compressed supply chain.
Author’s note: The authors dedicate this article to Dr. John J. Coyle (in memoriam) who sadly passed away before the completion of this work.
CHOOSE YOUR REALITY
There are three different types of extended reality (XR) technology, and each can be used in different ways to enhance virtual prototyping.
- Virtual reality (VR): Users wear a headset or glasses to view and interact with a virtual prototype in a completely virtual 3D environment. These interactions can be generated through 360-degree videos, photospheres (360-degree photos), and completely computer-generated 3D environments, and they can occur either in a lab or online. Users can interact with these completely virtual objects be clicking a mouse or using a wearable device such as a headset or special gloves.
- Augmented reality (AR): Virtual images such as text, pictures, and 3D objects (for example, virtual prototypes) are superimposed on the user’s real-world view, allowing the user to see a composite view of physical or real-world elements and digital elements. In this way, AR can be used to enhance “mixed prototyping” by incorporating various combinations of virtual objects, physical objects, physical environments, and virtual environments. With AR, users are not able to manipulate the virtual objects or information.
- Mixed reality (MR): Similar to AR techniques, digital elements are put into the real-world environment where the physical and digital elements can interact. But with MR, users can also manipulate the intelligent virtual objects via gesture, touch, and voice through next-generation sensing and imaging technologies. For example, users may be able to take apart a virtual object to see its inner parts. Mixed reality, like augmented reality, is well-suited to mixed prototyping.
Notes:
1. Serena Camere, “Experience (Virtual) Prototyping: The Use of Virtual Technologies to Support Experience-Driven Design Process” (PhD. diss., Politecnico di Milano, 2016). Marco Cantamessa, Francesca Montagna, Stefania Altavilla, and Alessandro Casagrande-Seretti, “Data-driven Design: The New Challenges of Digitalization on Product Design and Development,” Design Science 6 (2020). Robert G. Cooper,“The Drivers of Success in New-Product Development,” Industrial Marketing Management 76 (2019): 36–47.
2. See Salman Ahmed, Jianfu Zhang, and Onan Demirel “Assessment of Types of Prototyping in Human-Centered Product Design,” Proceedings of The 9th International Conference on Digital Human Modeling (DHM) and Applications in Health, Safety, Ergonomics and Risk Management, Las Vegas, NV, USA, July 15–20, 2018: 3–18. Camere (2016). Cantamessa et al. (2020).Tobias Sebastian Schmidt, Annette Isabel Böhmer, Anne Wallisch, Kristin Patzold, and Udo Lindemann, “Media Richness Theory in Agile Development: Choosing Appropriate Kinds of Prototypes to Obtain Reliable Feedback,” Proceedings of The 23rd International Conference on Engineering, Technology and Innovation, June 27–29 2017: 537–546.
3. Allan V. Cook, Lokesh Ohri, and Laura Kusumoto,“Augmented Shopping: The Quiet Revolution,” Deloitte Insights, January 10, 2020. Haptics Industry Forum, “Recommended Practices for Automotive Haptics,” May 2021. Lee Kent, Chris Snider, James Gopsill, and Ben Hicks, “Mixed Reality in Design Prototyping: A Systematic Review.” Design Studies 77 (2021):101046. Mickael Sereno, Xiyao Wang, Lonni Besancon, Michael J. Mcguffin, and Tobias Isenberg“Collaborative Work in Augmented Reality: A Survey,” IEEE Transactions on Visualization and Computer Graphics 28 (6) (2022): 2530–2549.
4. Albin Andersson and Shkölqim Fejzi “A Knowledge-Based Perspective on VR Applications in the New Product Development Process,” (Master’s Thesis, Karlstad University, 2019). Soheil Arastehfar, Wen Feng Lu, and Ying Liu,“A Framework for Concept Validation in Product Design Using Digital Prototyping,” Journal of Industrial & Production Engineering 31 (5)(2014): 286–302. Camere (2016).Cantamessa et al. (2020).
5. Andersson and Fejzi (2019). Cantamessa et al. (2020). Haptics Industry Forum (2021). Anuja Hariharan, Nico Pfaff, Fabian Manz, Fabian Raab, Artur Felic, and Thomas Kozsir “Enhancing Product Configuration and Sales Processes with Extended Reality” in Augmented Reality and Virtual Reality: Changing Realities in a Dynamic World, edited by Timothy Jung, M. Claudia tom Dieck, and Philipp A. Rauschnabel (Springer, 2020), 37–50. Nathalie Harz, Sebastian Hohenberg, and Christian Homburg,“Virtual Reality in New Product Development: Insights from Prelaunch Sales Forecasting for Durables.” Journal of Marketing 86 (3)(2022): 157–179. Kent et al (2021).
6. Cook, Ohri, and Kusumoto(2020). Mickael Sereno, Xiyao Wang, Lonni Besancon, Michael J. Mcguffin, and Tobias Isenberg, “Collaborative Work in Augmented Reality: A Survey,” IEEE Transactions on Visualization and Computer Graphics 28 (6) (2022): 2530–2549. Nicole Silberstein, “Experiencing Metaverse FOMO? Don’t Panic, It’s a Marathon, Not a Sprint,S” Retail TouchPoints, March 7, 2022.
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