2011 Fourth IEEE International Conference on Utility and Cloud Computing
Virtual Simulation and Augmented Interfaces for Business Models with focus on
Banking and Retail
Biju Shoolapani
Global Technology Office
Cognizant Technology Solutions
Chennai, India
Biju.Shoolapani@cognizant.com
Abstract—Globally, priority for technology solutions is towards
launching strategic cost restructuring in sourcing, processes
and infrastructure. Banking and retail business drivers are
explored in context of a maturity model to better understand
future needs. Cost reduction and richer user experiences are
identified as the primary objectives for banking and retail.
Simulation and augmentation of business infrastructure can
reduce cost and launch innovative solutions to market that
would ease the challenge of servicing the millennial population.
The study proposes a logical solution to create futuristic
organizations by integrating virtual simulation, augmented
interfaces and IT systems to meet the emerging challenges in
retail and banking.
Keywords-Banking, Retail, Social, Millennial, Augmented
Reality, Virtual Simulation, Business and Technology maturity
model, Connected User Experience.
I. INTRODUCTION
Recovery from the financial crisis globally is showing
varying trends, while the majority of the developing
countries are regaining full-capacity, some of the high
income and developing European countries continue to
struggle with crisis arising from banking, fiscal and
household restructuring [1]. Predictions indicate that a solid
growth led by developing-countries is the most likely
outcome [2]. Going forward, high food prices, oil-price
hikes, and lingering post-crisis difficulties in high-income
countries pose downside risks [3, 4]. Higher inflation will
result in higher cost for the population in developed and
developing countries. Reducing cost while improving
quality of service will become important for businesses
worldwide. Banking and Retail are important vertical
business units providing essential services to consumers and
will be the focus of this study.
The economic crisis has changed consumer behavior and
banks are faced with increased regulations, higher capital
requirements and consumer backlash, and need to provide
value added products to justify increase in fees. Banks will
have to move towards self-service channels, reduction in
operation cost and repositioning expensive branch
resources. Cost reduction becomes a major driver for banks,
while user experience is still important. In contrast, the retail
978-0-7695-4592-9/11 $26.00 © 2011 IEEE
DOI 10.1109/UCC.2011.77
Parthasarathi Jinka
Global Technology Office
Cognizant Technology Solutions
Chennai, India
Parthasarathi.Jinka@cognizant.com
industry has seen a strong expansion in developing
countries, driven by economic growth and lifestyle changes.
Consumers are leveraging multi-channel shopping (web,
mobile, social media) and better user experiences while
shopping on these channels. User experience becomes a
major driver for retail, while cost reduction is still
important.
The study will explore business drivers in banking and
retail, define a new maturity model to measure technology
and business maturity, and propose a logical solution to
transform business models to deliver richer user experiences
while reducing the operational cost. The business drivers
and maturity model can be used to determine the current
state of a business and potential for reducing cost and
improving quality of service. The logical solution explores
ways of combining virtual simulation and augmented
interfaces in banking and retail.
II. FACTORS DRIVING BUSINESS MODEL CHANGES
In the past, Internet provided traditional businesses with a
new means to serve customers. Consequently many “brick-
and-mortar” businesses have transformed to “click-and-
mortar” by incorporating internet sales. Today the internet
channel is widely used for sales and marketing, but newer
models around usage of Cloud Computing, mobile
application and social networks is gaining popularity. This
is evident from the growth in mobile and tablet usage [5]
[6]. Emergence of cloud computing, growth in mobile (and
devices like tablets, etc) usage, and popularity of social
networks [5] is redefining customers lifestyle and
expectations.
Growth in adoption of cloud computing services (PAAS,
IAAS) [7] provides an impression of infinite capacity and
omnipresence for business services. Mobile and tablets
deliver these services to end customers and the social
networks make these services interesting by allowing them
to engage with their friends and family. Together the users
expect that the content and services will be available
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“anytime”, “anywhere”, and connected to “anyone”. A to a business model supporting mullti-channel delivery using
connected user experience integrating conttent, service, and web, mobile and social. Virtu ualized business models
distribution media is becoming the de-faacto standard for (virtual goods, money, game based selling, etc) provided by
delivering business services. social platforms is driving the transfformation to Level3.

Level 3 (Scale-Out) This level deescribes an organization

Figure 2.1 Connected User Experience
To better understand the factors driving business model
changes, we will define a new maturity moddel. The maturity
model is based on our experience working oon technology and
business consulting across vertical industryy segments. The
maturity model will map business models with technology,
while keeping the user experience in perspecctive.
A. Business and Technology Maturity Mode
del
The business and technology maturity modeel begins to paint
a more complete picture of how an effective use of maturity
levels can help enterprises. The maturity moodel goes beyond
a mere statement of the principles bby defining the
characteristics of various levels.
Level 1 (Silo or Legacy) – This level describes an
environment where the approach of doingg business uses a
physical infrastructure and online informaation website to
drive customers to the physical retail store or bank.
Organizations that identify primarily with thhese descriptions
should be concerned that their competitorrs and customers
are operating at level 2 driven by paradigms around Web2.0
and Social Web. Level 1 supports legacy business models
like brick-and- mortar and click-and-mortarr.
that is initiating investments tow
wards adopting emerging
business models and managing g risk associated with
economic, social and user behaviorr changes. Web Oriented
Architecture (WOA) using RE ESTful APIs promotes
integration of business services wiith any channel and also
with any other business ecosysstems. Level3 supports
emerging business models driven by b lifestyle changes and
the millennial population. Sociaally engaging business
applications, immersive mobile ap pplications, game based
interfaces and Natural User Interfa
faces (NUI) using touch,
voice, gestures etc. allows for better
b engagement with
customers. Organizations that identiify with level 3 are ready
to adapt to changing economicc climate and capture
mindshare and market share using newer
n business models.
Level 4 (Future State) This level describes
d an environment
where the current paradigms are drastically changed to
evolve a futuristic business model. The distinctions between
physical and virtual environments become
b blurred and they
co-exist. The machine can semanticcally understand services
and content. The user interfaces will
w be based on Natural
User Interface (NUI) and the macchine has intelligence to
service your request by interpreeting voice, gestures &
emotions. Level 4 supports a futuristic business model and
will be driven by advances in arrtificial intelligence and
computer vision. Figure 2.2 provid des an illustration of the
maturity model.

Level 2 (Optimize) This level describes the essential or

foundational requirements (Web2.0 and SO OA) that must be
addressed in order to meet current and futuure requirements
to scale out a business. Service Oriented Arcchitecture (SOA)
promotes reuse of software assets within the organization
and Web2.0 improves engagement levels with customers
using various collaboration models (internnal to enterprise,
external social networks, combination of innternal-external).
The user experience is engaging with use of collaboration
within business applications. Organizatioons that identify
with level 2 are able to optimize on usage of their software
assets, channels and business capabilities. L
Level 2 conforms
Figure 2.2. Business & Technollogy Maturity Model

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B. Business Technology Drivers in Banking and Retaill Operations models
- Seek profitable expansion Immersive interfaces for
The purpose of a Business Model in our context is to opportunities millennial (Adopt Level 3)
understand how technology can be converted into market
outcomes and to understand new networked modes of
innovation [8]. In Banking, the business model will focus to The customer expectations are being constantly reset with
improve traditional modes of process, product and user interface innovations from leading internet, gaming &
operational innovation. Retailers in emerging markets can social networking companies. So, there is all the more need
look to commercialize innovative ideas and technologies for investments into virtual simulation and augmented
through their business model. interfaces in business. The next section will discuss the
opportunities for adoption of these in retail and banking.
TABLE 2.1 Business and Technology drivers for innovation
Business Drivers Technology Drivers
Retail Banking
- Profitability from Business - Enterprise wide reuse III. VIRTUAL SIMULATION AND AUGMENTED INTERFACES
- Cost control during economic - Control infrastructure and – A DISCUSSION
crisis operational cost
- Changing customer behavior - Invest in the right channels The Metaverse roadmap (MVR) [9] is a study of the 3D
Retail
- Customer satisfaction across - Managing user experience
future of the World Wide Web. The Metaverse is a complex
multiple channels across channels concept. In recent years, the term has grown beyond an
- Optimize supply chain, IT, - Innovations in sourcing, immersive 3D virtual world, to include aspects of the
Operations execution and channels
- Seek profitable expansion - Invest in newer technologies
physical world objects, actors, interfaces, and networks that
opportunities supporting expansion construct and interact with virtual environments. Virtual
simulation will use digital media (visual, audio and touch)
to illustrate a computer-mediated virtual world that best fits
In banking, the operation of a branch is a big cost involving
our natural modes of sensing and communication [10].
physical infrastructure, man power and IT systems. A
Virtual simulation helps in recreating the infrastructure also
Virtual branch will provide a low cost solution with higher
referred to as virtual infrastructure. Examples could be
capacity and utilization for resources. The barriers to
recreating a physical branch bank or retail virtually.
overcome will be in modernizing current IT systems,
Augmented Interfaces enhance our sense of the physical
security, effectively using SOA/WOA, using newer
world with computer generated sensory input such as sound,
channels, regulation and compliance.
video, graphics or GPS data [10]. The view of reality is
TABLE 2.2 Maturity Model Implications - Banking augmented by the computer. In banking examples include,
Business Drivers Maturity Model Implications a leading bank in Australia that has used augmented reality
Banking
- Profitability from Business Adopt Service Oriented in mobile advertisements, mobile-imaging applications
Architecture using Smartphone and tablet cameras for check deposits, bill
- Cost control during Virtual operations of banking payments, ACH enrollments, and a last example of a virtual
economic crisis branch, etc (Adopt Level 3) world created for a leading bank in US to engage their
- Changing customer APIs (WOA) to provide
behavior integration to channels customers. Retail examples include, virtual store in a
subway station, online social shopping application using
augmented reality, and computer vision based interactive
With the emergence of virtual payments (like facebook solutions for retail. These are great steps and have laid the
credits), the banks will be forced to develop newer products foundation for wider adoption in other business functions.
and solutions while keeping cost from existing operation The primary focus of these solutions have been to provide
down. Virtual branches using simulation and augmented better user experience resulting in improving brand image,
interfaces will provide capability to take the bank to the revenue and reduction in cost.
customer and reduce cost of running physical branches. The
expansion in retail, especially in developing countries like At our research labs, we have implemented few usage
India, is driven by younger generation spending more time scenarios in banking and retail industry by combining
with online, social networks and gaming. Engaging virtual simulation and augmented interfaces.
interfaces using augmented reality, social integration, and Scenario 1: Virtual retail store was simulated using Unity
mobile delivery will become important for success in retail. 3D [11], retail store has virtual objects like apparels, bags,
books, modeled using 3DS max [12]. User can navigate
TABLE 2.3 Maturity Model Implications - Retail around the simulated 3D store using arrow keys or hand
Business Drivers Maturity Model Implications gestures tracked with a Kinect [13]. Customer can rotate the
Retail virtual objects in 3D to get a 360 degree view of the object.
- Customer satisfaction across Mobile Apps and APIs (WOA) to On selecting the object, user can decide to do a virtual trial
multiple channels provide integration to channels
- Optimize supply chain, IT, Develop optimized business using the augmented interfaces. This opens the camera view

471
port and super imposes the dress on the person by tracking
his face and eye positions. User can take a snap and share
this with friends in social networks and also buy it using the
checkout APIs from online ecommerce service providers.
Scenario 2: Virtual Branch Bank developed using Open
Wonderland [14] simulates a physical branch to address
customer queries on products and services provided by the
bank. The employees of the bank will login to the virtual
branch using avatars and will be available in their virtual
office for assistance. The scenario starts with the customer
visiting the banks online website and selects a product e.g.
loans product. While trying to complete the formalities for
applying for a loan, the customer has clarifications and
wants to talk to a loan representative. Custo mer is teleported
outside the virtual office of a loan officer in the virtual bank
by clicking a button to get assistance on the website. The
loan officer’s avatar can interact with the customer’s avatar
using voice and text chat. Customer can also invite friends
into the virtual bank to interact and make decisions. The
loan officer can drag drop assets from his desktop including
brochures, presentations, and forms to help the customer
complete his loan application.
In both scenarios, we have combined augmented interfaces,
virtual simulation, social or collaboration plug-ins and
business services to deliver a connected user experience in
retail and banking. The infrastructure (IAAS), platform
(PAAS) and the content will reside on the cloud,
social/collaboration plug-ins provide connectivity to friends
and the interface can be accessed via devices like tablet or
personal computer or kiosk. To bring about a broader
adoption in the banking and retail industries, the proposed
solution (in Figure 3.1) have to be integrated into core
operational areas in branch banking and retail selling. This
requires support for security and exteensibility in the
underlying technology platforms. The extensibility has been
explored with the plug-in model (social, collaboration, and
checkout, etc.), the security aspects and regulatory standards
for banking and retail are still areas for further exploration.
A logical representation of the solution based on the above
implementation experience is shown in Figure 3.1.
Figure 3.1 Proposed Solutions
The business services in the proposed solution have to
operate at Level 3 (Figure 2.2) of the maturity model,
providing easy integration to channels (Social, Games and
TV) and devices (Tablets, Media and Mobiles). Further at
Level 3, organization’s investments into NUI will be
leveraged to develop a fully operational virtual business. As
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next step we plan to explore options to provide adequate
security using fingerprint scanner, iris scanner, body
scanner, face recognition, etc.
In a banking scenario, operation of a virtual branch in a
kiosk model can reduce cost of operations and provide
immersive user experience.
Solution explored to reduce cost
- Augmented interfaces using touch, voice, gestures
- Virtual simulation - A virtual bank using simulation
- Business services – Integration of virtual assistant
- Mobile, Tablet and Social integration for a connected
user experience
Security and scanning solutions need to be integrated to
make this an effective solution.
In a retail scenario, operation of a virtual retail with
augmented interfaces will improve in-store experience and
deploying kiosks can increase reach at a reduced cost.
Features explored to improve user experience
- Augmented interfaces to do virtual trial, Face tracking,
eye tracking, body detection
- Virtual Simulation of a 3D retail store and integration to
gesture and voice
- Business services - Integration to ecommerce
- Mobile, Tablet and Social integration for connected
user experience
IV. CONCLUSIONS
Looking at the global trends, retail and banking will be
faced with challenges to improve user experience while
keeping cost down. In this paper, having captured some of
the key business drivers in banking and retail industries, a
maturity model was developed based on past experience,
and this was mapped with the business drivers. To succeed
in the market and meet business objectives, banking and
retail industries have to operate at Level 3 of the maturity
model, which involves leveraging Web Oriented
Architecture and Connected User Experience (Cloud,
Social, Devices).
Investments into Augmented Interfaces and Virtual
Simulation prepare them to face the millennial challenges
by providing richer user experiences, while keeping the cost
down. A logical solution using virtual simulation and
augmented interfaces is proposed for banking and retail.
Banking sector traditionally has been more conservative
compared to retail when it comes to adopting newer
technology and innovations. Security and compliance are
future exploration areas.
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