Make it sustainable in the Industry Renaissance
In our Experience Economy, consumers want product experiences. New categories of innovators are creating new categories of sustainable experiences for new categories of consumers; but switching from delivering products to delivering experiences requires profound change. Experiences include rich content—customization with users defining what’s needed and when according to the user’s desire. This adds complexity to operations, requiring more diversity and efficiency for predictable, consistent process execution.
Consumers also expect that companies will produce their experiences in ways that minimize impacts on the environment, society and people. People have shown that they are willing to change their behaviors and the brands they buy to help preserve the environment. With a global population of about 7 billion people and growing, we cannot produce and consume in the same way that we did in the 20th century, when the population was just 2.5 billion (1950).
The world is experiencing a global transformation in how we invent, learn, produce and trade. We call it Industry Renaissance. For Industry Renaissance, with the drive of the experience economy, sustainability is a central concern.
Sustainability: A society and business imperative
Sustainability has become a must-have in the Age of Experience. A company’s contribution to the environment directly impacts its value in the market. The triple bottom line (TBL) is a framework that gauges a company’s level of commitment to social responsibility and its impact on the environment. Coined by British management consultant and sustainability guru John Elkington in 1994, TBL measures three bottom lines for a company: Profit (traditional P&L performance), People (how socially responsible a company is) and Planet (how environmentally responsible). When we talk about impact, it’s not just about carbon footprint, representing the unintended negative consequences of our actions on the environment. It’s also about our ecological handprint, the things we do that create positive changes in the environment. Those changes can be significant, by directly reducing our own footprint and by informing, inspiring and enabling others to reduce theirs.
Growing evidence shows that fostering sustainability is good business (according to global studies by Accenture). Companies who take environmental responsibility have outperformed in their markets by 16% over a three-year period. Waste to wealth strategies in the circular economy could create as much as US$4.5 trillion in economic value by 2030.
The calculation is simple: the value of a company depends on its contribution to the environment, its impacts on the planet, on society and the future. In this context, sustainable manufacturing is not an option, and it is not only about energy efficiency or zero-waste strategy. It is about innovation for social and societal responsibility.
TBL holds that if a company focuses on finances only and does not examine how it interacts socially (regarding People and Planet); it cannot see the whole business picture and thus cannot account for the full cost of doing business. Taking measure of these three pillars enables companies to achieve sustainable manufacturing, create value for all (and for good), and grow as a business. The measures are:
- People in the form of the workforce of the future, empowered to use knowledge and know-how to create sustainable experiences that inspire innovation
- Planet by using optimized global operations that minimize waste in crafting sustainable experiences
- Profit with utilization of value network orchestration for higher efficiency, productivity and faster time to market for maximized profit