6min. Reading time, Written by: Ruxandra Ionescu

Sustainability is without any doubt one of the most important issues of our time. People have become more aware of various aspects of sustainability when purchasing their products and services. In doing so, they want to make a significant contribution to improving their ecological footprint. Companies have also made it their task to implement sustainable concepts in their entire value chain, from the idea to sales. Digitalisation plays a key role in this context. Data analytics helps  companies to design their processes more sustainably and also uncover their own potential. But why is sustainability so important and why should technology be used in the implementation of sustainability programmes? In this article, we explain why data analytics plays such a key role and what advantages result from it.

This article addresses the following  questions:

• Why is sustainability so important?
• Why rely on data-based solutions such as data analytics?
• What are the concrete advantages of data analytics?

Why sustainability is so important?

Over the last few years end-consumers have shown more and more conscious purchasing behavior. Companies have started to react to this development. Companies have the responsibility to integrate sustainable innovations in their value chains in the interest of all, for the balance between economy, ecology and social issues. In addition, sustainable management means more efficiency in one’s own business, as costs can be avoided by identifying so-called “pain points”.

Why rely on data-based solutions like data analytics?

Technology is a proven tool in terms of time saving, resource conservation and cost efficiency. Through digital data solutions, various advantages could be achieved, such as:

• Paperless handling of procedures and processes.
• Less travel due to digital communication platforms
• More efficient supply chains to save CO2 emissions
• Facilitating searches for targeted industry partners, suppliers, products, etc.

Data-based software solutions have so far been able to make a significant contribution to driving sustainability initiatives. However, the Covid-19-crises has shown that the potential uses of technology are far from being realised. According to a recent study by Orange Business Services and Longitude, around 40% of supply chains failed due to high pandemic-related challenges.

What are the concrete advantages of data analytics?

Through data analytics solutions, many of the respondents are now more aware of risks such as:

• Raw material shortages
• production stoppages
• and difficulties in the supply chains

than they were a year ago. Companies have therefore discovered the value of sustainability through possible analyses. Collecting and analysing data provides companies with important information regarding

• Energy and resource consumption
• Supply chain performance
• Production machinery in operation
• Greenhouse gas emissions
• Potential cost savings in purchasing

This enables companies to easily implement sustainability initiatives and to make more efficient use of all their resources. In addition, data analytics systems can perform relevant analyses with high volumes of data from the past, present and future, almost in real time. They thus help to identify financial, social and environmental factors in order to address them.

Conclusion: 

To summarise, technologies have already made a significant contribution to improving their ecological footprint. By using data analytics, companies can be supported in combining economy, ecology and social issues in order to act more sustainably in the interest of all. By doing so, they not only operate more efficiently, but also ensure greater awareness of sustainability throughout their value chain.