The Digital Sustainability Index, jointly published by Tata Consultancy Services (TCS) and the Centre of Digital Enterprise, University of Auckland Business School, highlights three major obstacles that are inhibiting their pursuit of sustainability objectives through digital solutions: limited budget, lack of in-house knowledge and challenges in establishing a traditional ROI.
Key findings:
- 88% of respondents anticipate increased use of digital resources, systems and platforms to address sustainability outcomes in the next 36 months.
- 87% agree that Digital Sustainability can deliver a competitive advantage and is a central value of their companies.
- 80% believe their corporate reputation in the market has improved because of digital sustainability initiatives implemented.
TCS Asia Pacific president, Girish Ramachandran, says the construct of digital sustainability provides a valuable, holistic framework for corporate leaders in their growth and transformation strategies.
He adds that the Digital Sustainability Index will help organisations across the Asia Pacific understand how they can create, use, and regulate digital transformation, innovation, and resources to create future-fit, connected businesses that can deliver value for society today and in the future.
Ilan Oshri, director of the Centre of Digital Enterprise, University of Auckland Business School, New Zealand, believes that the Index can help key decision-makers in every company gain a better understanding of how technology can positively impact business outcomes and deliver longer-term value for all stakeholders.
Inhibitors for the adoption of digital sustainability
The report noted that a lack of clear ROI to justify investments in digital tools for sustainability is a top three inhibitor for respondents from 80% of countries.
The study also revealed that limited budget was a top inhibitor among 80% of companies surveyed.
For companies spending less than US$250 million, budget limitations and in-house expertise are key inhibitors.
On the other hand, companies with budgets over US$250 million are challenged by a lack of an ROI model for investments in digital sustainability and a lack of management support for digital sustainability initiatives.
Finally, a lack of in-house knowledge was identified by 70% of respondents.
