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Digital transformation: a journey towards sustainable innovation
Sponsored by Schneider
Integrating digital technologies into operations, processes and products is now a necessity rather than a choice for modern organisations.
While many companies are eager to embrace digital transformation, the journey is far from straightforward. The process can be compared to an endless road trip, but instead of bored kids in the back seat constantly asking, “are we there yet?” the questions are: how do you measure success? When do you know you’ve arrived? And what happens when the destination keeps shifting?
Digitalisation offers clear benefits – yet the path to realising them is complex and often fraught with setbacks.Credit: iStock
A 2023 McKinsey survey revealed that only 56 per cent of organisations that undertook digital transformation in the past five years initially met most or all of their targets.
Nearly half of these efforts fell short of their goals, underscoring the challenges that come with this bold endeavour. Digitalisation offers clear benefits – efficiency, cost savings and sustainability – yet the path to realising these advantages is complex and often fraught with setbacks.
The latest Sustainability Index by Schneider Electric highlights a significant digital divide. Two-thirds of companies still rely on traditional methods such as energy bills or spreadsheets to manage energy use. Without modern digital tools, businesses struggle to monitor emissions, optimise energy consumption and meet sustainability targets. The gap in digital adoption remains a major barrier, even as technology promises a more data-driven future.
For many, technologies like digital twins, automation and real-time monitoring are proving to be transformative.
These innovations not only streamline operations but also chart a tangible path toward sustainability. The index notes that one in four companies is actively implementing AI strategies, while another 29 per cent are considering the shift.
More than a third of businesses are using – or planning to use – AI to manage their decarbonisation efforts. In response, 53 per cent of organisations are increasing their digital transformation investments, with three in four agreeing that digital technology is essential for achieving sustainability goals.
Bridging the technology gap
Farokh Ghadially, vice president of secure power at Schneider Electric, offers a measured perspective on what it takes to succeed. He emphasises that clear objectives are the cornerstone of successful digital transformation.
“The more specific the goal, the more likely you’ll know whether digital transformation has succeeded and had an impact on your company,” says Ghadially.
“Given the operational complexities in today’s economy and the broad impact of digital transformation, success can be attributed to multiple factors – sustainability, efficiency, cost management and quality improvements.”
Farokh Ghadially, vice president of secure power at Schneider Electric.
Ghadially views digital transformation not as a one-off project but as a journey with multiple milestones.
“You can reach several destinations at once with digital transformation. From there, it easily becomes a virtuous cycle of improvement and iterative successes,” he says. His perspective reinforces the idea that digital transformation is an ongoing process, one that requires a holistic and long-term approach.
Ghadially’s insights come at a time when many organisations are rethinking their business models. As companies continue to integrate AI, automation and data analytics into their operations, those that fail to adapt may risk being left behind.
Digital transformation is more than just a trend – it represents a fundamental shift in how businesses operate, compete and contribute to a sustainable future.
The challenge of bridging the digital divide remains significant. Despite rapid technological advancements, many companies cling to traditional systems, limiting their ability to harness real-time data. Without these insights, organisations struggle to optimise energy usage and achieve broader sustainability goals.
Digital transformation, therefore, demands more than just new technology – it requires a rethinking of business processes, breaking down silos and cultivating a culture of continuous improvement.
Real-world examples of successful digital transformation are emerging.
Innovative solutions in action
Blue Connections IT, in partnership with Schneider Electric, has cut its greenhouse gas emissions by 17.1 per cent and is on track for a 20 per cent reduction by 2024.
Their approach blends practical sustainability initiatives with advanced technology. The company has adopted recycled packaging, deployed electric delivery vehicles, and integrated low-energy heating and cooling systems powered by solar energy. This blend of technology and eco-conscious practices illustrates how businesses can drive environmental benefits without sacrificing growth.
“Carbon neutral wasn’t a term when Blue Connections IT was first founded, and it’s been fantastic to have the support of sustainability-focused organisations to help us on our own journey towards net zero,” says Gordon Brownell, CEO of Blue Connections IT.
“We are committed to leading by example in our industry, showing that it is possible to implement solutions that have significant environmental benefits without compromising on growth and innovation.”
The impact of these changes is not confined to the realm of sustainability alone. Across industries, digital transformation is reshaping efficiency and productivity.
Nestlé Waters – the French company behind the Perrier brand – embarked on a digital overhaul to address production challenges. In this case, introducing one common platform enabled measurable improvement.
For Nestlé, that included 20 per cent less production downtime, higher productivity, simplified traceability of the clean-in-place (CIP) process, and improved valve tracking and diagnosis, saving 340 tons of CO₂ used in the sparkling water process in the first year.
German engineering firm Covestro provides another powerful example. By introducing a digital twin – a virtual replica of its operations – Covestro broke down barriers between its control and process engineering teams. This initiative streamlined collaboration and problem-solving, fostering an environment where efficiency and innovation could thrive side by side.
A sustainable future
Looking ahead, the momentum behind digital transformation is set to increase.
Organisations that embrace digital tools not only improve operational efficiency but also build a foundation for long-term resilience and innovation.
The rewards extend beyond immediate cost savings, offering a path toward sustainable growth and enhanced environmental responsibility. As more companies recognise the critical role of data and technology, the digital divide is likely to narrow, paving the way for a future where innovation and sustainability go hand in hand.
Ultimately, the journey of digital transformation is ongoing. For impact makers, the question is no longer whether to adopt digital technology, but how to do so effectively, says Schneider’s Ghadially.
“Success will be measured not by a single achievement, but by a series of iterative improvements that drive resilience, innovation and a sustainable future,” he says.
“With clear goals and a commitment to harnessing the power of digital tools, organisations can transform challenges into opportunities, setting the stage for a new era of business success.”
To find out more, please visit Schneider Electric.