Organizations and their business models have evolved a lot throughout history, both in their processes and structures and in their objectives. Increasingly, trends and the environment dictate the steps of many companies and they can no longer ignore that they require periodic adaptation beyond fashion.
Traditionally, they have focused on issues of operation, productivity and market coverage, but in recent years it has been in technology and value creation, where many companies seek to go ahead and print their characteristic stamp to last over time.
In today’s abundance of business terms, it is common to confuse fundamental concepts such as sustainability and sustainability, from which other more elaborate ones have been derived, such as sustainable development and sustainable development. The first is related to the efficient use of scarce resources so as not to run out, while the second has more to do with a comprehensive, defined, and aligned search for value creation in the economic, social, political, and environmental fields. , among others. Although there is more than one definition for both cases, there is a consensus to use them in these senses.
The challenges of sustainability are multiple; from the scarcity of resources and decarbonization to demographic and social changes, stimulated by great technological evolutions that, on the other hand, represent great opportunities to generate greater internal and external value to organizations. Technologies such as artificial intelligence (AI), the Internet of Things or data analytics are today a starting point for discovering, understanding and developing the potential of business models.
There are many fears of technology, such as the replacement of human labor by robotic processes carried out by AI. This is already a reality, but it is not something new. The so-called fourth industrial revolution is preceded by other revolutions such as mechanization, electricity, information technology and, today, the digital age. In each of them there were moments of transition for the structures, products, business models and so on. And, in all of them, there was a need for change and adaptation. But there was always the opportunity to capitalize on investments, assets, processes and the market by developing business models more in line with the present reality.
Generating value has many implications, from first understanding what it means worth and how it seeks to translate and adapt to the organization, interest groups (stakeholders) and his or her environment.
When we talk about how technology can support such sustainable value creation, a huge range of possibilities opens up for the business. Among the countless examples, we can mention the following:
- He blockchain makes it possible a more efficient logistics with a lower environmental impact and social assistance to traceability that allows sharing profits at different stages of the process with the respective actors.
- Data analytics and AI promote greater knowledge of the market, making a more efficient use of resources at the corporate level and even at the level of public policies.
- The Internet of Things helps to streamline production processes with less environmental impact and greater knowledge of the environment and its evolution.
And this list could be expanded with a plethora of opportunities that were not available before, or not in the way they are available today or will be available tomorrow.
For this reason, we must be open to knowledge, but also to reflect on the state we are in and the potential that lies ahead. Today, our highly dynamic environment invites us to become aware of our role individually, corporately and as a society.
Dr. Raúl Montalvo, Director of EGADE Business School Gualadajara
