Back

How would digital transformation help leverage environmental sustainability?

Introduction

The concept of digital transformation is not new. Certain important technologies have recently reached maturity and have given digital transformation a new start. Yet, organizations still have a long way to go. Digital transformation, in general, entails the idea of reengineering organizations as a means of capturing the potential of information technologies. These impacts, whether they are positive or negative, ultimately play a part in the sustainability of our environment. In today’s world, examples of digital transformation can be seen across all industries covering every aspect and encompassing vital changes happening within them. Researchers have mentioned numerous definitions of digital transformation. Hamidi et al. (2018) have explained digital transformation more specifically in these words; “the most profound and accelerating transformation for business activities, processes, competencies, and models to leverage the changes of digital technology and their impact in a strategic and prioritized way” (Hamidi et al., 2018, p. 723). Digital transformation makes use of digital technologies like artificial intelligence (AI), the Internet of Things (IoT), blockchain, big data analytics,  mobile and cloud computing, machine learning, and other technologies (Vial, 2019).

Digital Transformation and the Pandemic

Throughout the COVID-19 pandemic, technology played a significant role and affected a wide range of activities, from working remotely to communication tracing. Digital organizations have demonstrated potential digital resiliency during the period of the pandemic. Digital technologies, in times of pandemic, have helped connect health teams, global experts, and health organizations virtually to gain immediate access to a range of healthcare services via digital technologies. Advanced health system performance during the COVID-19 period promoted a more sustainable society (Snowdon, 2022). Undoubtedly, digital technologies have been widely used, especially in uncertain times.

Digital transformation as a strategy to reach sustainability

Digital transformation has leveraged the technological system that is influencing every aspect of human life. This transformation has increased hopes for the improvement of our environment (Santarius et al., 2020). Digital information is no longer viewed as a purely technical function but as one that encompasses a wide range of strategic, operational, and organizational capabilities. Organizations must evolve to harness digital technologies to learn intervention strategies. The newest strategies will support the organizations to engage in the sustainable environmental challenge. Therefore, understanding digital technologies and how they interact and contribute to knowledge, innovation, and value creation should be enhanced to leverage continuous environmental sustainability. The digital transformation within the business sector has brought changes in management practices causing an impact on the sustainability of the overall business organizations (Park et al., 2021). Sustainability considerations have become one of the critical features of companies’ strategic planning as part of this transformation (Kaartemo and Gonzalez-Perez, 2020). Sustainability strategies are seen as a moderator between financial performance and digital strategies (Ukko et al., 2019). Therefore, digital transformation needs to overcome the financial limits and eliminate resistance to change (Heilig et al., 2017). Currently, organizations are using digital transformation to establish the pathway for the creation of sustainable communities (Pappas et al., 2018). The more traditional role of digital technology is to provide high-quality and cost-effective services. As a result, digital technologies are increasingly focused on creating value for the business. Digital transformation has an enormous capacity to improve the efficiency and sustainability of firms through a series of changes (Ananyin et al., 2018; Bucci et al., 2019). Sustainability is one of the most important outcomes of the application of digital technologies, as it allows businesses to increase their recognition and add more value by being sustainable (Ordieres-Meré et al., 2020). Organizations are also compelled to enhance the usage of new applications and services due to technology transformation. This increased adoption will eventually sustain the competitive advantage of companies (Hsu et al., 2018). Moreover, digital learning about sustainability needs to be customized in niches of education preferences not only in individual but collective groups as well (Türkeli & Schophuizen, 2019).

The Impact of Digital Transformation on Environmental Sustainability

Environmental sustainability is a critical issue that has piqued scientists’ interest since the 1990s. To date, positive and negative effects of digital transformations have been seen on environmental sustainability. Digital transformation has impacted the whole socio-ecological systems of the world through its changes and leading to the sustainability of these changes (Arts et al., 2018). It is estimated to have profound impacts on societies, businesses, organizations, as well on industries, and the planet overall. The production, consumption, and disposal of digital goods affect the environment directly in diverse ways. These processes are causing the depletion of the earth’s resources, water scarcity, greenhouse gas emissions, and pollution. Therefore, these impacts have put substantial pressure on biodiversity (Truong, 2022). Environmental sustainability aims to enhance human welfare by protecting and preserving the raw material sources used for human needs and ensuring that human waste drains aren’t exceeded to ensure the safety of the human race. It has close the material and energy flow loops to make the economy circular. Environmental effects have seen to be reduced due to the optimization of waste reduction and the use of resources utilizing digital technologies. It has helped in increasing energy efficiency at the same time, has promised to provide clean energy for future generations. In addition, digital transformation has made consumers capable of making choices and informed decisions regarding their lifestyles and the products they use. There is a wide range of advantages to reaching sustainability by the mean of digital transformation. Remote work should be implemented by using digital technologies as it is extremely mattered in today’s time (Bai, 2021). Piroscă et al. (2021) claim that the workforce, if enhanced in digital skills, can easily adjust to new inevitable circumstances in no time. More organizations are launching new products and forums using digital technologies to improve environmental sustainability (Feroz et al., 2021). Demartini et al. (2019) proposed that digitalization indeed contributes to environmental sustainability by lowering carbon emissions and other environmental waste. Companies that are undergoing digital transformation can help in promoting a variety of sustainable development initiatives. Overall, the previous research findings support the belief that digital transformation has the tremendous possibility of achieving objectives of environmental sustainability. Nonetheless, it raises several issues that require further investigation.

Conclusion

This article discusses whether pre-pandemic global IT trends will come back or if a new IT normal will emerge. In general, the previous literature has not provided a holistic view and enough empirical evidence about how the environment is being affected due to digital transformation (Truong, 2022) and how the impacts of industry and digital transformation on energy efficiency paved the way to climate change (Gurtu & Goswami, 2020). Nonetheless, the implications of digital technologies are clear.  It will continue to grow as a pivotal vehicle for the creation of sustainable societies. The global epidemic is concrete evidence of digital technology’s effectiveness. The pandemic’s technological advances are influencing the future of labor. Still, many business organizations are planning end-to-end transformations to move their selves beyond the present drawing board. Digital technologies need to blend human and technical capacities to keep the ongoing digital transformation  In this way, digital transformation and advancement will continue to control society and the economy at unprecedented levels.

References

Ben-Zvi, T., & Luftman, J., (2022). Post-Pandemic IT: Digital Transformation and Sustainability. Sustainability (2071-1050), 14(22), 15275. https://doi-org.eres.qnl.qa/10.33 90/su142215275 Demartini, M., Evans, S., & Tonelli, F., (2019). Digitalization Technologies for Industrial Sustainability. Procedia Manuf., 33, 264–271. Feroz, A.K.,  Zo, H., & Chiravuri, A. (2021). Digital transformation and environmental sustainability: A review and research agenda. Sustainability, 13, 1530. Gomez-Trujillo, A. M., & Gonzalez-Perez, M. A. (2021). Digital transformation as a strategy to reach sustainability. Smart and Sustainable Built Environment, 11(4), 1137–1162. https://doi-org.eres.qnl.qa/10.108/SASBE-01-2021-0011 Hamidi, S. R., Aziz, A. A., Shuhidan, S. M, Aziz, A. A., & Mokhsin, M., (2018). SMEs Maturity Model Assessment of IR4.0 Digital Transformation. In Proceedings of the 7th International Conference on Kansei Engineering and Emotion Research 2018 KEER, Kuching, Malaysia, 19–22 March; pp. 721–732. Pappas, I.O., Mikalef, P., Giannakos, M.N., Krogstie, J., & Lekakos, G., (2018). Big data and business analytics ecosystems: Paving the way towards digital transformation and sustainable societies. Inf. Syst. E-Bus. Manag., 16, 479–491. Piros, că, G.I., S, erban-Oprescu, G.L., Badea, L., Stanef-Puică, M.R., Valdebenito, C.R., (2021). Digitalization and labour market—A perspective within the framework of pandemic crisis. J. Theor. Appl. Electron. Commer. Res., 16, 2843–2857. Santarius, T., Pohl, J., & Lange, S., (2020). “Digitalization and the Decoupling Debate: Can ICT Help to Reduce Environmental Impacts While the Economy Keeps Growing?” Sustainability 12, no. 18: 7496. https://doi.org/10.3390/su12187496 Snowdon, A.W., (2022). Digital Health Ecosystems: A Strategy for Transformation of Health Systems in the Post-Pandemic Future. In Nursing and Informatics for the 21st Century–Embracing a Digital World, 3rd ed.; Book 1; Productivity Press: New York, NY, USA,; pp. 1–28. Truong, T. C., (2022). The Impact of Digital Transformation on Environmental Sustainability. Advances in Multimedia, 1–12. https://doi-org.eres.qnl.qa/10.11 55/2022/6324325 Vial, G. (2019). “Understanding digital transformation: a review and a research agenda,” Journal of Strategic Information Systems, vol. 28, no. 2, pp. 118–144.