Industry 4.0: Dynamics, Development, and Sustainability
Industry 4.0, with its rapidly evolving dynamics and extraordinary technological progress, brings a unique situation, experience, and new business characteristics. But this isn’t entirely new—each industrial revolution has, in its own way, shaped and transformed the world and its people. What sets the fourth industrial revolution apart from the previous three is, among other things, the concept of sustainability.
It’s now widely accepted that the world must build a more sustainable future. This is a complex task, but the good news is that many of the largest companies have already started the process. According to research by Knut Haanaes (IMD), as many as 62% of leaders believe that sustainable business models and strategies are key to maintaining competitiveness.
What is sustainability at its core?
At its simplest, sustainability is a business approach that seeks to create long-term value by taking into account an organization’s performance in the environmental, social, and economic spheres—the three pillars of this concept (IMD).
Good intentions and professional communication are no longer enough. The key performance indicators for businesses are changing; profit-driven models will no longer be at the forefront. Companies are now seeking long-term solutions for sustainable development.
Where and how do I experience this as a consumer?
Ørsted, a renewable energy company, was ranked number one on Forbes’ list of the world’s most sustainable companies in 2020. It became the first energy provider to receive this recognition. Over the past ten years, Ørsted completely transformed its business model—phasing out fossil fuels and investing in offshore wind power. As a result, they reduced their carbon emissions by 83% (Forbes). Their wind farms now supply green energy to over 13 million people, and their goal is to reach 50 million by 2030.
Nike focuses on reducing waste and its environmental footprint. Using innovative technologies, they design various shoe models made from at least 50% recycled materials.
Method, a San Francisco-based brand of household and cleaning products, creates items free of harmful chemicals. They offer employees health insurance, competitive vacation benefits, three paid volunteer days per year, generous retirement matching, and even invitations to a global ping pong tournament and dance party.
The Role of the Leader
To build a sustainable future, we need leaders who are willing to embrace the concept of sustainability and lead in this direction. New business models and strategies, along with constant change, require a new leadership style. This style must foster a culture of learning and innovation, while being responsive and adaptable—with the Adaptability Quotient (AQ) emerging as the new star among indices.
Industry 4.0 opens doors to new ways of communication, a different use of power, and evolving directions and priorities. Leadership is becoming more team-oriented and cross-hierarchical, and the ability to influence others is increasingly based on new personal skills.
It’s a whole new world for leaders too!
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