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Sustainable Business Model

Why Do You Need A Sustainable Business Model To Succeed at Digital Transformation?

Gone are the days when sustainability used to be a part and parcel of every mission statement. Today, businesses are looking for ways to make their processes and operations more sustainable. With digital transformation already in full swing, many businesses have already jumped on the digital transformation bandwagon or are planning to do so in the near future.

It is important for businesses to understand why sustainability is crucial for the success of their digital transformation initiatives. By understanding the link between the two, you will be able to strike the perfect balance and make decisions that will help you not only meet sustainability goals but also hit digital transformation targets as well.

In this article, you will learn why having a sustainable business model is critical for the success of your digital transformation.

What are the Advantages of Sustainability?

Sustainability can offer many advantages to businesses. Some of them are as follows:

  • Surpass customer expectations
  • Boost efficiency
  • Attract top talent

Let’s look at each one in detail.

  • Surpass customer expectations

As the awareness regarding climate change and global warming continues to spread far and wide, consumers have started taking sustainability more seriously than thay have ever done in the past. In fact, the majority of customers think that companies must play their part to curb climate change. This has forced businesses to adopt technologies and tools to help them minimize waste and deliver a more consistent experience without damaging the environment.

  • Boost efficiency

When you create a sustainable business model, you don’t have to change it frequently. This saves a lot of time and resources as building a business model is a resource intensive task. By building a business model that is built to last, you can free up resources and use them smartly for other purposes. This not only optimizes resource utilization but also enhances their efficiency.

  • Attract top talent

It is not only the consumers and businesses that are taking sustainability seriously. It is also the employees. Believe it or not, almost two-third of millennials will turn down a job offer if the company does not follow corporate social responsibilities or they don’t enforce corporate responsibility practices.

What Makes a Business Model Sustainable?

There are two main characteristics that differentiate sustainable business models from traditional business models.

  • Transparency

You need to be open about your material choices and all other sustainability measures and show the team how it is benefiting your business in order to gain acceptance both internally and externally. It can help your brand build trust, motivate employees and build a community of loyal fans. What’s more, if your business scores highly or is regarded as a champion of environmental social governance, you might attract more investments from different companies and venture capitalists, which can help you get over the funding crisis.

  • Communication

It is also important for businesses to communicate their sustainability initiatives smartly. Spread the world out and show the world how the use of sustainable materials, waste minimization strategies have turned your business into a successful business and give you a competitive advantage over other competitors. This will inspire others to follow in your footsteps. As a result, your business will be seen as a torchbearer of sustainability and people and businesses look up to your business.

How Digital Transformation and Sustainability Go Hand in Hand?

Here are some of the ways in which digital transformation can help you build robust businesses.

  • Replace Manual Processes

Since digital transformation is all about digitizing your business processes, it will automatically free your resources up and save them from the hassle of performing mundane and repetitive tasks on a daily basis. This allows them to focus more on value driven tasks, do more research and spend more time in development of new products. This can improve productivity, creativity and accelerate innovation all at the same time. With more automation and less manual processes, you can mitigate the risk of errors, reduce waste and prevent unnecessary expenditures.

  • Speeds up learning

The problem with manual processes is that it takes a long time to identify a problem and takes even longer to fix it. With digital transformation, you can expedite the whole process. Digital technologies and mobile app development makes learning more accessible than ever and with free time on your side, it is easier to learn. With everything at your fingertips, you don’t even need to hire an expert to teach you anything. In fact, you can even understand complex concepts about a particular topic thanks to interactive and engaging tutorials and courses. You can also experiment and try new ideas.

  • Save time and money

When you automate steps involved in operations or your entire business process, you will start to see a major difference in terms of both time and money. Automated production and service steps can reduce your energy costs as well. When you combine the amount of time you save, the amount of money you saved and the number of watts you save on a monthly or yearly basis, digitally transforming your business might seem like the best investment you have ever made. Your organization will consume less energy and deliver more products without exceeding the budget.

  • Identify weaknesses and overcome them

As mentioned before, digital technologies come in handy when it comes to identifying issues and fixing them. Similarly, if you have an area that needs more improvement, data analytics can clearly tell you that. This allows you to take advantage of opportunities that you might have missed in the past.

Technologies like artificial intelligence and machine learning can help you anticipate and predict events and help you optimize everything. It can even help you perform periodic maintenance and fix issues before it can negatively impact your customer experience. By getting over your weaknesses and playing to your strengths, your business can dominate your industry by staying ahead of the curve.

Why do you think that sustainability is critical for the success of your digital transformation? Share your thoughts with us in the comments section below.

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