Smart analytics, artificial intelligence and sustainable performance management in a global digitalised economy

Abstract

As a Professor of Marketing, sustainability is very close to my heart. I am deeply involved and engaged with research and teaching in the areas sustainable marketing and consumption. And it is a well-known fact that the development of a digital economy will have a major and far reaching impact on the sustainable development of an economy and society. Hence, a book addressing sustainability in critical areas of business and management certainly spiked my interest.

Dr Pallavi Tyagi, one of the lead editors of this book, is a dear friend and colleague, for whom I have immense respect, and faith in her credibility to address a topic of such strategic importance with alacrity and confidence. Along with her coeditors, Dr Pallavi has put together a book which encompasses certain very critical areas of sustainable performance management in a global digital economy.

There is immense potential benefits for society and the environment as a result of digitalisation which provides access to an integrated network of unexploited big data. As digital technologies disrupt one sector after another, many companies are actively embracing digital transformation. Interestingly, the accelerating rate of digital transformation on economic performance is quicker under low market turbulence. In contrast, when market turbulence is high, higher digital transformation is associated with worse environmental performance. The development of smart systems connected to the internet of things can generate unique opportunities to strategically address challenges associated with the United Nations Sustainable Development Goals (SDGs) to ensure an equitable, environmentally sustainable, and healthy society. This perspective describes the opportunities that digitalisation can provide towards building the sustainable society of the future. Improving our future readiness entails redirecting capital towards sustainable companies, governments incentivising sustainable activities, customers exhibiting a preference for sustainable products and services and employees demanding sustainable leadership. To meet expectations, businesses today need to align their digital transformation with sustainability objectives.

COVID-19 pulled back the curtain on our vulnerabilities to myriad global risks. The pandemic forced most organisations to accelerate their digital transformation initiatives and move towards creating sustainable digital enterprises where organisations put people and the planet at the core of their digital transformation strategies. There was evidence of improved resilience, better operational performance and business success among companies that invested in sustainability. These companies witnessed their sustainable indices outperforming their parent benchmarks. In recent years, there has been a proliferation of technological advances, often described under the umbrella term Industry 4.0. These technological advances have had the effect of dramatically changing the way firms operate resulting in a massive improvement of their performance and thereof, productivity. A wealth of advanced technologies and systems such as artificial intelligence (AI), smart systems, smart cities, predictive analytics, blockchain, autonomous vehicles, big data, and internet of things increasingly change not only the companies that adopt them but also the context within which this adoption take place. [Foreword by Dr. Sujata Khandai]