How Data-driven Intelligence Helps Companies Advance the Triple Bottom Line
Small and medium-sized enterprises (SMEs) are the growth engines of the world’s economy, accounting for 90% of all businesses and nearly 70% of global jobs and GDP. Beyond their economic impact, SMEs are critical for the vitality and resilience of their communities and are often at the forefront of socially responsible practices. Their capacity for innovation, adaptability to market changes and advancement of technological progress cements their role in international trade and global supply chains.
The digital transformation of industry accelerated during the pandemic and the growing adoption of Industry 4.0 enablers such as connectivity, data and intelligence and human-machine systems seek to redefine manufacturing. Smart automation, real-time data analytics, and interconnected systems, coupled with digital twins of infrastructure and processes lay the groundwork for smart factories, real-time performance monitoring, and the Industrial Internet of Things (IIoT), enhancing operational efficiency and decision-making.
However, for truly resilient industry, manufacturing needs to look beyond short-term gain and balance economic growth with environmental and social development goals – the “triple bottom line”. Green industry aims to ensure that today's industrial activities do not compromise future generations' ability to meet their needs. Examples of green manufacturing include the elimination of unnecessary packaging, tracking the quality of production output to reduce waste, improving recycling programmes and contributing to circular economy initiatives. Aligning initiatives to the triple bottom line is essential for a future where manufacturing combats climate change and promotes a healthier world for all.
SMEs are key to advancing the triple bottom line. Currently, 40% of greenhouse gas (GHG) emissions in the business sector are caused by SMEs. Achieving 2050 net-zero GHG emissions targets depends on SMEs embracing the sustainability agenda more deeply and quickly. Advancing a sustainability agenda can also help SMEs with economic growth by lowering costs and improving their brand appeal to eco-conscious consumers. According to TheRoundup, 84% of customers say that poor environmental practices will alienate them from a brand or company and products marketed as sustainable grew 2.7 times faster than conventional products.
The transition to net-zero emission economies can be accelerated through the merging of green industry and Industry 4.0 and the proliferation of sustainable production and consumption practices. For example, an end-to-end visibility of the product lifecycle leveraging automation, IoT and real-time data and decisioning can lead to recommendations reducing energy consumption, waste material and highlight opportunities for further re-manufacturing and recycling.
Data maturity and intelligence is therefore a key enabler of green industry. Yet, SMEs face critical challenges in adopting and scaling data-driven decision-making in their operations.
Limited data access and quality, lack of analytical expertise and tools, cultural resistance to change, difficulty translating insights into actionable strategies, and cost considerations hamper sponsorship and adoption of data intelligence initiatives. Overcoming these challenges requires investment based on target outcomes, planning involving a cross-functional team of business, users and technology representatives, and fostering an outcomes-focused, data-driven culture for true success and scale. The ability to bridge the data-decision-outcome gap is crucial in empowering SMEs to harness the full potential of green manufacturing and contribute to the triple bottom line.
Advancing green Industry 4.0 relies on interconnectivity and the intelligent use of vast amounts of data, both internal and external to the SME. SUSI Tech is at the forefront of this movement, championing SMEs as leaders in the green industrial era.
We invite SMEs to join us by participating in our inaugural benchmark survey on data maturity in the manufacturing industry. Each participant will receive a copy of the final benchmark report and a chance to receive a tailored assessment.
So, take the leap. Join us on this transformative journey and become part of a community driving towards a smarter, more sustainable future for all.