I feel like it’s probably time to have a quick chat about business transformation. I know a lot of people have had quite a lot of chats, quick or otherwise, about business transformation over the past few years, months, weeks and days, so I’m not going to drag this one out but it seems appropriate to address one particular aspect of it because it appeared in a recent report and the issue is interesting because it goes much wider than just business transformation.
But we’ll stick to business transformation for now.
The report in question is the Business Transformation Index 2023 from Expleo which surveyed 1,395 global business transformation leaders. It identified “four dynamics” which are limiting the ability of organisations to implement transformation initiatives effectively. The first three are as follows: skills gap and talent shortages; macro-instability and uncertainty; heightened customer experience expectations.
What’s the fourth? The need to do business more sustainably. The report notes that with the climate becoming a primary topic in newsrooms and boardrooms, “regulation and consumer pressures have combined to place greater emphasis on how business should be conducted to preserve the environment”.
Now, the smart arse response here would be to say something like “yeah, well surely you can handle a little delay to your business transformation if it means we can stop a potentially catastrophic planet transformation”.
But once you get past that retort, where do you go next? Let’s accentuate the positives. According to the report, only a minority of those surveyed (31%) believe that focusing too much on sustainability will limit the ability of their organisation to innovate. A clear majority of 53%, otherwise referred to by the unit of measurement known as Brexit+1, agree that focusing on sustainability is a “strong catalyst for innovation”. So that’s good news.
The report also reveals there’s a cost to ignoring environmental and sustainability issues with 42% admitting they had lost customers because of their “poor sustainability practices”. Half of large companies said they had stopped working with a supplier in the last 12 months because of dissatisfaction with its environmental performance.
This may be why a decent proportion of those surveyed (40%) believe that becoming more sustainable or environmentally responsible is a major focus area for them – an additional 39% describe it as a moderate focus area.
From a technology perspective, 77% felt there was room for improvement in making their use of technology more environmentally friendly, which is a potential opening for channel partners and vendors who can make an argument for helping them assuage those concerns.
In that context, it was interesting to see that 45% claimed they were sourcing from environmentally responsible technology suppliers and partners where possible. That seems like an impressive figure and one that is only likely to grow bigger as time goes on. The same goes for the 50% recycling their technology and hardware and the 46% monitoring the carbon footprint from their use of technology.
The question is whether channel partners and vendors get in line with this trend or fall behind it. The caution expressed by some companies in terms of delays to their business transformation efforts might cause some IT vendors and partners to drag their own feet when it comes to sustainability. But that’s probably not a viable approach.
The cold hard fact is that focusing on sustainability is, quite possibly, the most effective aspect of any business transformation you can undertake because of the impact it has on your company, your customers, your suppliers and, not forgetting, this planet we all stand on.
As the report notes, business transformation can “be a catalyst for making the environmental sustainability improvements so eagerly sought by customers and business partners”.
To put it glibly (but without being a smart arse about it), focusing on sustainability makes the business itself more sustainable.
Ltd
