‘Phygital’ reality transforms the business world

The rapid advancement of technology in various sectors of daily life and the acceleration provided by Web 3.0, which increasingly incorporates digital elements into the physical world and vice versa, consolidates what has been called the “phygital” era (of the physical + digital contraction ), in which the hyperconnection becomes part of everyday business and society. AI (Artificial Intelligence), IoT (Internet of Things), cryptocurrencies, NFTs, metaverse, gamification, extended, virtual and augmented realities are part of this new world.

“The main distinction between digital and figital is precisely the feeling of telepresence, which allows for greater immersion and adds a social element to activities that previously, in a purely digital context, used to be performed in an individualized way”, says Juliana Roman, Master in Law from UFRGS (Federal University of Rio Grande do Sul) and researcher at Iris (Instituto de Referência em Internet e Sociedade), based in Belo Horizonte (MG).

5G technology is one of the factors that makes Web3.0 possible and boosts figital, as it expands access to extended reality as a consumer good. “Previously, access to these immersive virtual environments depended on the user himself having equipment with great computing power, which made its use unfeasible by a significant portion of the population, especially in emerging markets”, says Victor Vieira, also a researcher at Iris .

When we talk about business in the physical world, it is common for companies that were born in the physical environment to increase their digital presence, as well as the opposite. Amazon, for example, has been expanding its physical presence with the Amazon Go convenience store chain, with the differential of 100% automated payment, and Amazon Style, which uses machine learning technology to find clothes according to customer preferences.

Alexandre Uehara, founder of Innov8 Mindset & Strategy, says that Amazon is one of the examples of brands that prioritize getting to know the customer and delivering a better experience, regardless of the medium in which they operate. For him, in the physical reality, companies with origin in physical stores need to understand the digital, and vice versa. “The customer, no matter where he is, must feel close to the brand and have the feeling that he is special “

“We cannot, under any circumstances, think that it is enough to add previous experiences in the physical world with previous experiences in the digital world. It is necessary to be aware that this is a transformation”, says professor Heloísa Omine.

Increasingly present in the daily lives of consumers, technologies such as VR (Virtual Reality) and AR (Augmented Reality) are part of this transformation. In the health area, for example, hospitals and laboratories have been using the so-called “mixed reality”, combining VR (which provides total immersion in a 100% digital scenario) with AR (which creates new elements in the physical environment, either with , graphics or texts) in the elaboration of diagnoses, with a differential of three-dimensional models of the human body.

For Frank Sinatra Chaves, president of FCDL-MG (Federation of Chambers of Shopkeepers of Minas Gerais), it is a leap forward in development, even if, at the moment, it is less accessible to smaller companies. “Small people don’t know, they don’t have the financial support or structure to get in. For them, this new area should take a while or, at least, wait for solutions to emerge that give micro and small businesses the space to set up easily and with little investment in these areas.”

“With accessible or free software, in addition to affordable hardware, I believe it will be possible to expand the potential of extended reality and, consequently, the benefits and risks inherent to it”, says Juliana Roman, from Iris.

Virtual tour and real estate with cryptocurrency

The transition to figital occurs at an accelerated rate in the real estate market, improving customer experience and promoting interactivity. The visits, previously carried out in person, are now guided remotely by brokers with video calls. There is also the use of 360º images, immersion with 3D glasses, as well as the use of AR and VR for potential buyers to visit properties still in the plant in a virtual tour.

Arthur Igreja, a specialist in technology, innovation and trends, says that the consumer’s experience at the time of getting to know a project, going through the purchase process or receiving the property is increasingly immersive. “It is excellent to be able to use these technological resources, but one cannot neglect the relationship with consumers, whether on social networks or in customer service. These are points that always need to be observed”, he says.

Another innovation comes from the use of new forms of payment. According to Igreja, more and more physical real estate launches are already accompanied by NFTs (cryptographic tokens that represent something unique) and payment transactions made with cryptocurrencies (transactions with blockchain technology that ensures more credibility and prevents fraud).

Despite being recent, the metaverse, a network of virtual worlds based on AR and VR, is already present in the real estate market. Today it is possible, for example, to buy land and virtual real estate, in addition to the dissemination and commercialization of projects in the physical environment. According to data from MetaMetric Solutions, real estate sales in the Metaverse surpassed US$501 million (R$2.58 billion) in 2021.

But even though the metaverse may represent an opportunity for the development of technologies for companies and new experiences for users, experts warn of risks regarding the protection of personal data and the privacy of users.

For technologies based on extended reality to work, as is the case with the metaverse, extensive collection of information about users is required. “Fittal experiences should represent a new source of concern, as these ecosystems depend on a much more intensive collection of personal data to function. In addition, there is increasing control by companies over this data, which raises concerns about the privacy and protection”, says Victor Vieira, from Iris.

This report was produced from content discussed at Lab Sociedade Digital, a partnership between Unico, ID tech in digital identity, and Folha de S. Paulo with support from ITS (Instituto de Tecnologia e Sociedade do Rio).