Sustainability is a broad topic. Today, many companies are struggling with what to prioritize and how to maximize their output with limited resources. During my several interactions with companies, I’m often asked: How can we reach our customers and show them as to how we’re making a difference? Besides that conundrum, other challenges that I have encountered includes the difficulty of automating data collection and visualizing the results of efforts towards sustainability in a comprehensive way.
This blog is intended to help you get started with your aspirations towards sustainability in a more structured way, using the tools I employed with clients in my mundane work. It will be a mix of digitalization, analytics, and visualizations linked to business value.
More business development and less Google
You don’t have to be an expert in Scope 1, 2, 3, or ESG reporting to start working with sustainability. One approach is to utilize the knowledge you already possess and append a few different types of questions instead.
- How can more people use <insert the product you sell> more often and for longer duration?
- How can we sell our <insert your product/service> with minimal transportation and zero waste — throughout the entire supply chain?
Another good approach is to remember the letter “R” and few words that emanate from it in English. The two aforementioned queries are instances of ‘Rethink’ and “Reduce”. Additionally, consider “Repair”, where repairs shall be one of the keys to the transition. Another consideration is “Reuse”, which involves rethinking how the product (or parts of it) can be used elsewhere. Third is “Recycle”, which covers everything related to recycling. Recycling today is expensive, difficult, and complicated. So we need to take better care of materials before we send them for recycling.
Regardless of which questions or “R”s you use, these will drive analysis, reporting, and digitalization, and there is much here that relates to business development. You can create new customer flows and new ways to generate sales — resulting in improved sustainability.
With these as foundations for sustainable business development, here are the four concrete tips on how data and analytics can become a driving force for the transition:
- Prioritize an area
No matter what area or problem you’re tackling and trying to solve, it’s important to segregate it into smaller, manageable parts. I usually encourage clients to look for local advocates who want to make a change — whether it’s a process, a product, or understanding a connection. Often, there’s also data of some kind that can be used — sometimes internal, but also external. A good example is a company that wanted to transition to an electric vehicle fleet and began by establishing better records of its fleet, fuel usage, and miles driven. This allowed them to gain a better understanding of their current situation and the emissions they generate.
No matter where you start — don’t overcomplicate things; dare to set priorities, start somewhere, and build on that over time.
- Develop new sustainability metrics
Do you know how much carbon dioxide a particular product emits? Or is it easier to assume that it probably generates less carbon dioxide if we repair it instead of making a new one? In that case, the repair rate, for example, could be a relevant key performance indicator (KPI) to start measuring. As you gather further data over time, you can add more information about the emission it generates, or the amount of plastic used.
You can also utilize your gut feelings and common sense to develop relatively simple key metrics as a starting point.
- Does the end user understand the visualization?
One of my optimal recommendations is to spend more time on visualization. It is the visualization that is presented to the end user and is your actual “digital product that you’re selling”, whether your target audience is internal or external. Your end users must understand what they’re looking at in order to take action and make more sustainable decisions rather than just passively watching.
A current example related to today’s pricing around electricity. More often than not, few users can comprehend what the technical figure “1 kWh” means. Only some find it easier to understand that it means you can use the space heater for half an hour now that autumn is approaching. Add color coding to clarify how the price fluctuates over time, and you’ve increased the likelihood that the end user will understand the message and make informed decisions or choices, irrespective of their background or the depth of knowledge.
- Collaborate by sharing data
A key to faster digitalization is collaboration across the key stakeholders in order to share data. This applies both, internally with employees and externally, where, for instance, suppliers and customers using e-commerce solutions handle large amounts of data. To demonstrate why one product or service is more sustainable than another, suppliers need to provide relevant data and assist us consumers when purchasing the product or service. But in the same way, retailers, for example, should do a better job of highlighting suppliers who are committed to sustainability and willing to share their data. Collaboration between both parties is essential to help us consumers make better choices.
If you’ve read this far, all that’s left is to take action. Schedule a meeting with your colleagues tomorrow and use these tips to see how you can improve your products or services and transition to a more sustainable business using data and analytics.
Don’t hesitate to contact me and my colleagues to learn how we can support your business with data-driven solutions.
Magnus Fälth works as an Advisor for Analytics & Sustainability at Epical
magnus.falth@epicalgroup.com
+46 73-231 6363
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Ulrika Bjurinder
Business Development Executive, Epical
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