Indian Businesses Claim that Sustainability is a Crucial Differentiator

Despite FFTF firms being in the global minority, companies in the APAC countries generally led their European counterparts in the survey.

FREMONT, CA:According to 51 per cent of Indian businesses, sustainability is a crucial distinction. Only 19 per cent of the organisations in the nation claim to be prepared for the future.

A survey published by Vodafone Business reveals that high-performing businesses see sustainable practices as a competitive advantage. The annual report produced in collaboration with B2B International, the Vodafone Business Fit for the Future worldwide research initiative, was launched in 2019.

It looks at how global business leaders feel and behave regarding resilience, innovation, and sustainability. 3,101 businesses from 15 different countries were included in this year's poll, including 748 from the Asia-Pacific (APAC) area. Businesses that are deemed Fit for the Future perform well on metrics including speed to market, acceptance of change, thorough strategic planning, and receptivity to new technology.

China, Australia, and Singapore are among the APAC nations included in the poll, in addition to India.

According to the Vodafone Business Report, Fit for the Future (FFTF) firms have technology roadmaps in place to alter their working practices and are aware of technology's ability to address business difficulties. Their tactics are well-defined, well-researched, well-funded, and well-measured. They are aware of the factors influencing their industries and, when necessary, enlist the aid of influential thought leaders. Additionally, they are flexible, viewing change as an opportunity, and responding quickly to emerging trends to enter the market before competing businesses.

These businesses have profited from making an effort to adopt and implement FFTF techniques because they have reported superior financial results. Compared to 46 per cent of non-FFTF enterprises, nearly 70 per cent of FFTF firms are making more money now than they were a year ago. 81 per cent of FFTF companies predict increasing earnings over the next five years, compared to 62 per cent of non-FFTF companies.

Despite being a minority globally, FFTF enterprises outperformed their European counterparts in the survey on average. 33 per cent of the companies surveyed in Singapore, 24 per cent in China, 22 per cent in Australia, and 19 per cent in India received the FFTF classification.

Only 18 per cent of businesses in Germany, 14 per cent in the UK, and 13 per cent in the Netherlands declare themselves FFTF. Italy (23 per cent) and Spain (24 per cent) witnessed an increase in their rankings. In China and Australia, the percentage of FFTF enterprises has marginally decreased since 2019, whereas it has remained largely unchanged in India. Singapore is ahead of the U.S., where 27 per cent of businesses report being FFTF.

Suitable for Future businesses, especially the larger ones, are aware of the ROI from targeted technology investments. Senior executives and managers support innovation throughout the organisation. According to the study's results this year, FFTF enterprises are far more likely than their global counterparts (86 per cent vs 67 per cent) to take a systematic approach to innovation while acknowledging that everyone has a role to play.

Cybersecurity (27 per cent)) Internet of Things (IoT) (26 per cent), Cloud (23 per cent), Mobile (20 per cent) and Business Intelligence (21 per cent) are the top technologies on these firms' minds when it comes to supporting their innovation investment objectives (19 per cent). FFTF companies believe that these technologies will directly affect their long-term sustainable growth.

 

Up to 69 per cent of companies in the APAC region are looking to IoT (sensors, monitors, drones) to improve quality control, optimise supply chains, and identify areas where they can cut back on energy and fleet maintenance expenses. IoT was among the top five tech priorities for small and medium-sized organisations in this year's poll and for Chinese companies and the largest businesses.

Businesses in the APAC area concur that investing in cyber defence is important, particularly with rising digital adoption. According to 51 per cent of businesses, particularly in the government, professional services, and healthcare industries, cyber threats are expected to increase somewhat or significantly.

Less than half of APAC businesses say they are committed to being net zero, and only 24 per cent say they have a well-developed plan to combat climate change, even though 70 per cent of all APAC businesses consider sustainability vital.

Fit for the Future businesses is unique, though. These high-performing businesses prioritise their sustainability initiatives and see them as a source of advantage over rivals. This mindset is most popular in APAC, where businesses understand that sustainability is a key differentiation. Of the enterprises surveyed, 56 per cent said sustainability was important there, followed by 51 per cent in India, 42 per cent in Australia, and 32 per cent in Singapore. These figures were far higher than the proportion of businesses in the U.S., Europe, the Middle East, and Africa.

Although sustainability is a major problem, there is a feeling that development may be slowing down. Most companies continue to concentrate on day-to-day concerns like meeting customer expectations for quicker service and higher quality. Furthermore, just a third (34 per cent) ) of respondents claim that consumers are willing to pay more for goods and services that are ecologically friendly. Customers, therefore, demand that businesses implement sustainable practices without increasing their expenditures.

This may help to explain why the number of companies considering decarbonisation a top priority has been flat since 2019, although the same amount of businesses (21 per cent) view sustainability as a vital component of their existence globally.

Those companies that have already included sustainability principles in their company planning are seeing major business benefits from doing so, even though APAC enterprises have not taken any definitive action on the issue. According to the survey, 74 per cent of companies reporting increased earnings this year had explicit ESG programmes in place. Less than half (47 per cent) of the companies that reported lower profits claimed they had such initiatives in place.