Blog

Sustainable Digital Transformation: How Technology Is Redefining the Future of Businesses

Date:

June 4, 2024

Reading time:

minutes

By Paulo Secco, CEO and Founder of Mignow

In my career spanning over two decades in the technology sector, working with renowned companies and collaborating with some of Brazil's leading tech partners, I've witnessed a significant transformation in how businesses approach sustainability. This evolution is no longer a trend but a necessity, especially considering the current global environmental landscape. Being sustainable has ceased to be an option and has become an essential requirement for survival and success in today's competitive market.

Organizations that ignore sustainable practices not only face a loss of monetary value through cost-saving opportunities, such as energy efficiency, but also lose market relevance. The demand for sustainability, now more than ever, is driven by consumers themselves, who measure companies by their practices and choose to support those that demonstrate a real commitment to the environment.

In light of this reality, it is crucial not only to implement more sustainable internal processes, from the production chain to office services, but also to develop business practices that promote sustainability. It is alarming to know that, in 2021, just six companies were responsible for 71.4% of global greenhouse gas emissions, according to a study by the Institute for Energy and Environment (IEMA). This data emphasizes the role of organizations in reducing these emissions and combating climate change.

Reducing carbon emissions, for example, contributes to the UN's goal of reducing greenhouse gas emissions. Adopting "Carbon Neutral" status goes beyond mere symbolism of environmental commitment; it is a concrete step to counterbalance the negative effects of business activities on global warming.

Among the efforts to promote business sustainability, the transition from fixed servers to cloud-based solutions stands out as a concrete example. By facilitating organizations' migration to the cloud, we observe a direct impact on energy efficiency and resource management. This impact is so significant that it placed SAP among the top three in IDC's Sustainability Index for Software Providers, which evaluated 23 vendors.

By migrating from a physical server to the cloud, companies not only ensure a reduction in gas emissions and energy consumption but also gain an advantageous position through direct server reduction and improved energy efficiency. Furthermore, organizations that demonstrate sustainable concerns and initiatives are better prepared for the future. Technologies like Artificial Intelligence, incorporated into the conversion process, can further assist by decreasing migration time and leading the company to a more sustainable environment with reduced project time and cost.

Moreover, migrating to the cloud has been shown to increase employee productivity, as they now save time and resources on activities like cash closing or payroll processing, which were previously time-consuming but are now significantly faster and more efficient with the use of advanced systems like SAP S/4HANA.

An example of the positive impact of these technological innovations on sustainability is the case of Carrefour, which, by adopting cloud hosting, not only achieved a significant 45% reduction in its energy consumption but also a remarkable 40% decrease in its operational costs. This transformation also resulted in a considerable reduction in carbon emissions, demonstrating the positive environmental impact of innovative technological decisions.

Based on this premise, migrating to SAP and adopting cloud computing emerge as business solutions that can reduce the environmental impact of operations. As more organizations adopt the system, the environmental impact will be significantly smaller.

Reflecting on the importance of sustainability in the business world, it becomes clear that energy consumption is one of the main contributors to greenhouse gas emissions. Therefore, by adopting sustainable practices and technological solutions, we are not only benefiting organizations in terms of efficiency and cost savings but also significantly contributing to environmental preservation.

A commitment to innovation and sustainability drives digital transformation with a focus on reducing environmental impact. The integration of advanced technological solutions with sustainable business practices can not only foster business success but also significantly contribute to a more sustainable and greener future for generations to come.

*Paulo Secco is a distinguished professional with over two decades of experience in the technology sector, having worked at renowned companies such as Xerox, Accenture, Softtek, and SAP. In 2010, he founded Integre IT, an IT consultancy, and later partnered with Essence, a key SAP partner in Brazil, as a partner and COO. Secco is a pioneer in developing innovative software that automates the conversion from SAP ECC to S/4HANA, launched after a successful implementation case in just 18 days. In 2020, he founded Mignow, an endeavor that expands its focus to support all phases of SAP journeys, not limited to conversion but also encompassing annual updates. Under his visionary leadership, Mignow has established itself as a market leader, providing innovative and high-quality solutions for optimization in SAP environments.