Virtual Reality Systems in the Management of Technology-based Organizations Allan McLay MEng. Grad Dip TT&L A Thesis submitted in fulfilment of the requirements for the degree Doctor of Philosophy School of Aerospace, Mechanical & Manufacturing Engineering Science, Engineering & Health Portfolio RMIT University August 2011 i Declaration "I certify that except where due acknowledgement has been made, the work is that of the author alone; the work has not been submitted previously, in whole or in part, to qualify for any other academic award; the content of the thesis is the result of work which has been carried out since the official commencement date of the approved research program; and, any editorial work, paid or unpaid, carried out by a third party is acknowledged." ________________________________________ Allan McLay Permission to copy "I hereby give permission to the staff of the RMIT Library and to the staff and students of the School of Aerospace, Mechanical & Manufacturing Engineering – RMIT University to copy this thesis in whole or in part without reference to me. This permission covers only single copies made for study purposes, subject to normal conditions of acknowledgment." ________________________________________ Allan McLay ii Acknowledgments Acknowledgment is made to the following people for their assistance and support: Professor Bruce Wilson, Director of the European Union Centre at RMIT University; Associate Professor Adela McMurray, Associate Dean Research in the School of Management, RMIT University; Professor John Mo, Discipline Head Manufacturing, and supportive colleagues in the School of Aerospace, Mechanical and Manufacturing Engineering, RMIT University; Mr Norbet Nimmervoll, Past Director, RMIT Interactive Information Institute (I 3) and Mr Ray Denison and technical staff at RMIT I 3; an amazingly patient, tolerant, and loving wife Tricia, and family! iii Publications & Presentations The following publications and presentations have been derived from this research program: Publications: McLay, Allan (2002) Applying Visualisation Technologies and Strategies for Effective Knowledge Management and Decision Analysis in Engineering and Technology-based Enterprises, in Proceedings of 3rd International Conference on Quality and Reliability , 2002, Edited by A.J. Subic, H.C.Tsang, C.Y.Tang, & G. Netherwood, RMIT University, Melbourne. McLay, Allan (2003) Virtual Reality – Quality Management Integration, in Proceedings of QUALCON 2003 International Conference , Edited by Anthony Pilli, Australian Organization for Quality & RMIT University, Melbourne. McLay, Allan (2010) Realising Virtual Reality: A Reflection on the Continuing Evolution of New Media, International Journal for Sociotechnology and Knowledge Development, Vol.2, No.3, July-September, 2010, pp.37-53, Hershey, PA: IGI-Global. Invited Presentation: Invited presentation and paper presented to meeting of researchers in the Centre for Strategy and Performance, Institute for Manufacturing, Department of Engineering, University of Cambridge, UK. Nov. 28 2008 A Taxonomy for Describing Necessary Conditions for the Application of Virtual Reality Systems in the Management of Technology-based Organizations. iv Table of Contents Table of Contents . iv Summary . 1 Chapter 1 Introduction . 2 1.1 Research Purpose and Background . 2 1.2 Thesis Structure and Organization . 5 Chapter 2 Literature Review and Thematic Development . 7 2.1 Introduction to the Literature Review and Thematic Development . 7 2.2 The Continuing Evolution of Electronic Media and Meta-media . 9 2.2.1 New Media - New Language . 9 2.2.2 New Media Technology Evolution . 17 2.2.3 Thematic 1. Formative Data Outputs for Electronic Media and Meta Media . 20 2.3 Simulation Systems, Virtual Worlds and Virtual Reality . 21 2.3.1 Contemporary Virtual Reality Systems . 21 2.3.2 Virtual Reality: Definitions . 32 2.3.3 Simulation Systems, Design and Virtual Reality . 35 2.3.4 Virtual Worlds. 41 2.4 Managing Engineering & Technology-based Organizations . 43 2.4.1 The Technology-based Organization . 43 2.4.2 Innovation and Technological Change Management . 50 2.4.3 Virtual Reality in Organizational Contexts . 51 2.4.4 Virtual Reality in Industrial Training Contexts . 54 2.4.5 McLuhan’s Tetrad Applied to Organizational Use of Virtual Reality 57 2.5 Literature Review Summary . 59 Chapter 3 Methodology . 62 3.1 Research Objectives . 62 3.2 Approach Outline . 62 3.3 Philosophical Position & Methodological Process & Reasoning . 63 3.4 Application of Grounded Theory Method in Content Analysis . 66 3.5 Systems & Systems Thinking . 68 3.6 Soft Systems Methodology . 70 3.7 Adaptive Grounded Soft Systems Methodology . 73 3.8 Methodology Summary . 77 v Chapter 4 Initial SSM Analysis & the Problem Situation Expressed . 79 4.1 Introduction to Initial SSM Analysis and the Problem Situation Expressed 79 4.2 Virtual Reality Projects and Case Studies . 80 4.2.1 Background to Virtual Reality Projects . .. 80 4.2.2 Illustrative Case Studies . 81 4.2.2.1 Inter-VR Centre Simulation Project . 81 4.2.2.2 Collaborative Virtual-design Environment Project . 82 4.2.2.3 Virtual Reality Centre Emergency Services Training Project 83 4.2.2.4 Risk-based Systems Visualization Project . 84 4.2.2.5 Major Traffic Intersection and Streetscape Visualization 85 4.2.2.6 Multi-story Building Visualization Project . 86 4.3 The Problem Situation . 87 4.3.1 AGSSM Stage 1a. The Problem Situation: Unstructured . 87 4.3.2 AGSSM Stage 1b. Related External Experiential and Theoretical Considerations . 88 4.3.3 AGSSM Stage 1c. The Problem Situation Evaluated Against External Considerations . 89 4.3.4 AGSSM Stage 2. The Problem Situation: Expressed. 92 4.3.5 AGSSM Stage 3. Root Definitions of Relevant Systems . 93 4.3.5.1 Proposed General Root Definition . 93 4.3.5.2 Customers . 93 4.3.5.3 Actors . 94 4.3.5.4 Transformation . 94 4.3.5.5 World View . 96 4.3.5.6 Owners . 98 4.3.5.7 Environmental Constraints . 99 4.4 Formative Data Outputs for Virtual Reality Visualization Projects . 101 4.5 Content Analysis Using Category/Priority Matrix Analysis . 102 4.6 Initial SSM Analysis & The Problem Situation Expressed: Summary . 109 Chapter 5 Conceptual Analysis for Proposed Taxonomy . 111 5.1 Introduction to Conceptual Analysis . 111 5.2 Conceptual Issues . 111 5.2.1 Conceptualising What is Being Addressed . 111 5.2.2 Conceptualizing Innovation Issues . 112 5.2.3 Infusion as Endogenous Technological Innovation . 114 5.2.4 Visualization as Innovative Transfer Media . 115 5.2.5 An Initial Grouping Abstraction . 117 5.2.6 Conceptualising Technological Change Issues . 118 5.2.7 Decision Support Issues. 120 vi 5.2.8 Epistemological and Ontological Issues. 121 5.2.9 Mind mapping approach . 123 5.3 The Strategic Context and Organizational Environment. 128 5.3.1 The Strategic Context . 128 5.3.2 The Organizational Environment. 130 5.4 Corporate Strategic Capabilities. 132 5.5 Organisational Stakeholder Issues . 134 5.6 Systems Modelling Issues . 136 5.7 Taxonomy Systems Elements and Fields . 138 5.8 VR as an Instrument for Paradigm Change . 145 5.9 Conceptual Analysis Summary . 147 Chapter 6 Proposed Taxonomy and Structural Components . 149 6.1 Introduction to Taxonomy Structural Components . 149 6.2 Structural Components of Taxonomy . 149 6.2.1 Tetradic Structure . 149 6.2.2 Visualization Approach . 151 6.3 Domains of Influence . 153 6.3.1 Organizational Domain . 153 6.3.2 Technological domain. 155 6.3.3 Sociological Domain . 156 6.3.4 Phenomenal Domain . 158 6.4 Paradigmatic Planning Framework . 159 6.5 Virtual Reality – Organizational Index. 162 6.6 Assembling the Proposed Taxonomy and Planning Framework . 163 6.7 Proposed Taxonomy Summary . 166 Chapter 7 Testing and Review Processes and Findings . 167 7.1 Introduction to Testing & Review Processes. 167 7.2 Approach . 167 7.2.1 Pre-theory building stage . 167 7.2.2 Post-theory building stage . 168 7.3 VR User Surveys Review . ..