Why sustainability is now the key driver of innovation
Why sustainability is now the key driver of innovation? The basis for advancement and development has always been innovation. In contrast, global innovation in response to the climate crisis is increasingly being driven by sustainability. We’ll discuss the reasons why sustainability is now the most important aspect of developing new goods and services in this section.
The term “sustainability” has become somewhat of a buzzword because it is now used so frequently. It should not come as a surprise that one of the most pressing issues facing our planet is sustainability. But precisely what is sustainability?
Simply put, sustainability means providing for current requirements without jeopardizing the ability of subsequent generations to do so. This includes making sure that natural resources are managed in a way that meets needs now and in the future.
For sustainability, there are three essential pillars: social, financial, and environmental factors. A project or activity must incorporate all three pillars for it to be truly sustainable. For instance, a project may be environmentally sustainable if it does not deplete natural resources or pollute the air. However, it is not really possible unless the social and financial consequences are also taken into consideration.
Businesses incorporate sustainability into their strategies for two main reasons: Sustainability can help cut costs and is compatible with lean production and tight supply chain management. Furthermore, numerous aspects of sustainability can be measured.
Businesses that are truly sustainable innovate on multiple levels: They make it easier for value chains to find new uses for returned goods; They develop products using biomimicry techniques; They develop novel business models that combine physical infrastructures and digital ones; Furthermore, they see sustainability as a means of challenging conventional business logics. Innovative businesses generally adhere to the following five sustainability guidelines:
- Don’t begin with the present: Starting with the current business strategy can only lead to an “optimistic extrapolation” of the future. Ask instead: Which pivotal junctures are necessary to reach the ideal future? What can we do now to get there? How will we determine whether our plan is correct? Don’t let the inertia of your organization get in the way.
- The investment must precede learning: Start small, pick up skills quickly, and move quickly. The objective is to develop “next” practices rather than replicating “best” practices. Three steps are needed for this: pilots and research; learning and debriefing; and expanding.
- Maintain your goal, but change your strategy: Innovative leaders are aware that every journey necessitates tactical adjustments, particularly when it comes to sustainability strategies, which may require years of refinement. Consistency in direction is just as important as tactical adaptability.
- Develop your capacity for collaboration: The ability to work effectively with other businesses, governments, and non-governmental organizations is taught to world-class businesses. Few innovations emerge from internal vacuums. Leaders must devise novel revenue sharing, product development, and distribution mechanisms in order to innovate sustainability.
- Use a worldwide presence for testing: Numerous governments of developing economies are increasingly concerned about the impact on the environment. As a result, they are encouraging multinational corporations (MNCs), particularly those at the bottom of the corporate ladder, to introduce eco-friendly products and procedures. Global businesses can gain from innovation in emerging markets, which typically lack established systems and mentalities.
In order to demonstrate their social dependability, most organizations look for manageability. They anticipate that the project will have no immediate financial benefits, reduce their ability to compete, or raise their costs. In the meantime, activists and policymakers argue that businesses can’t adopt sustainable practices unless they have educated, organized customers and stricter regulations.
However, the authors assert that the pursuit of sustainability can lead to the discovery of numerous technological and organizational innovations with both positive top- and bottom-line effects. Businesses are rethinking their products, procedures, technologies, business models, and strategies as part of this effort to change the competitive landscape. Businesses can lay the groundwork that will position them in the lead when the recession ends by equating innovation with sustainability now.
