Hyperreality - digital transformation in the new reality

We do not let the topics fall silent after our conference "The Power of Technology. Current trends on the start-up market", which took place in May for our portfolio companies.

Why? Because in the speeches of the speakers and panels there were many interesting conclusions - talking about opportunities and threats, but also the inevitability of trends and phenomena in the world of technology. That is, in the world in which most of the companies in our portfolio move, develop and will develop. It is worth noticing these trends, not being afraid of them and rationally adapting your strategies for the future in accordance with them.

We will successively remind you of them and update them in our publications. To begin with, we would like to remind you of the main megatrends - which in the galloping world of technology is seen and presented to us by Piotr Wiśniewski from DBR77, the creator of the Hyperreality management model.

Hyperreality concept

Speaking of the Hyperreality theory, I present the fundamental factors of change that take place in today's world. This concept is crucial for understanding today's digital transformation processes. Hyperreality is not just a theoretical concept, but a reality that affects every industry and requires immediate adaptation. I will try to describe to you in detail what Hyperreality is and what factors contribute to this new reality.

1. Complexity: the butterfly that causes a hurricane

The first factor that defines Hyperreality is the complexity of the world. This phenomenon consists of dynamic and unpredictable interactions between different elements of social, economic and technological systems. Unlike complex systems, where it is possible to predict results based on the analysis of individual parts, complex systems are characterized by high complexity, variety of objects and internal interdependence. An example is the impact of mobile technologies on various industries, from banking to transportation, which have completely changed in the few years since the introduction of smartphones.

2. Free Education: A Revolution in Knowledge

The second factor is universal access to free education. Thanks to the Internet, everyone, regardless of their place of residence or economic status, has access to a huge amount of knowledge. Platforms like Coursera, edX, or Khan Academy offer university-level courses to millions of people around the world. This democratization of knowledge means that  the barriers to entry into the innovation market are lower than ever before. People from the farthest corners of the world can now gain knowledge and skills that were once available only to a few.

3. Generational changes: new values and expectations

Another important factor is generational changes. There are currently as many as five different generations on the market: Baby Boomers, Generation X, Millennials, Generation Z and Generation Alpha. Each of these groups brings its own unique values, expectations, and consumption habits. Younger generations, particularly Millennials and Gen Z, are digital natives for whom digital technologies are an integral, very ordinary part of life. They prefer authenticity, transparency, and innovation, which forces companies to adapt their business models and marketing strategies.

4. Mass robotization: automation and the future of work

Mass robotization and automation is another important factor. The increase in the cost of human labor, combined with technological progress, makes them more and more profitable. In manufacturing, warehousing, and even offices, robots and automated systems are replacing humans in repetitive tasks. Automation not only increases efficiency, but also improves the quality of processes by minimizing errors and waste.

5. Unlimited Computing Power: An Era of Exponential Opportunity

When telling you about technological trends, I can't omit something as important as unlimited computing power. According to Moore's Law, the processing power of processors doubles every two years or so, leading to huge advances in technology. For example, if in the year of the promulgation of this law, i.e. in 1964, we set off on a journey at a speed of 1 km per hour, and then accelerate according to Moore's law, then in 2025 we would be moving at the speed of light. Today, therefore, we have access to computing power that was unthinkable just a decade ago. This allows us to analyze huge data sets, create complex simulation models, and develop advanced machine learning algorithms.

6. The Third Internet Revolution: VR, AR, and Web3

The sixth factor is the third internet revolution, driven by virtual and augmented reality (VR and AR) technologies and the concept of Web3. VR and AR allow you to create immersive experiences that change the way we communicate, work, and play. Web3, on the other hand, based on blockchain technologies, seeks to decentralize the internet, giving users more control over their data and online interactions.

7. Artificial Intelligence: The Future Is Now

The seventh, but perhaps most important, factor is artificial intelligence (AI). AI is a technology that has the potential to revolutionize every industry, from medicine to finance. AI algorithms are able to process vast amounts of data, learn, and make decisions with unprecedented precision. A perfect example of the development and level of advancement of this technology is the story of Alpa Go Zero, an algorithm that, through simulations of the behavior of two players, was trained in just three days to a level that was enough to defeat the best algorithms based on the analysis of the behavior of human masters. Artificial intelligence is already changing our daily lives, affecting how we work, learn and communicate.

Hyperreality in practice

These seven factors combine to create a new reality that I call Hyperreality. It is a world where change is happening at a dizzying pace, and every industry must adapt to new conditions in order to survive and prosper. Digital transformation is no longer an option, but a necessity. Companies must be ready for constant adaptation and innovation to meet the challenges and opportunities that Hyperreality brings.

Adaptation through innovation

The only way to function effectively in the world of Hyperreality is to constantly question, adapt your own strategies, be ready for radical changes, be courageous, and open to risk and uncertainty.

Companies need to adopt a disruption innovation approach, which involves innovating with the ability to disrupt existing markets and create new opportunities. A perfect example of this is the well-known Netflix company, which, despite making huge investments in building a physical supply chain of movies directly to customers (it started as a DVD rental company), in 2008 decided to boldly enter the movie streaming market. In this way, it began to develop a new sales channel, which at the same time began to kill the previous one. Another example is Tesla, which revolutionized the automotive industry by launching electric cars with advanced autonomous features.

In both cases, these companies not only adapted to changing conditions, but also created new opportunities and actively shaped the future of their industries.