Green Business Analytics

[AMIT GANGULY]

Image - Green Business Intelligence 

 

Amid the current climate of increased demand by the market for corporate responsibility and accountability,companies are seeking innovative ways to enhance their Sustainability image. To achieve long term success in all the core areas of the triple bottom line namely People, Planet and Profit, companies are motivated to satisfy the requirements of both society and stakeholders alike;and to realize the previous untapped methods and markets. As the field of Business Analytics is evolving,it is helping companies plan and manage their Sustainability initiatives by creating a clear understanding of the existing Business environment and the Sustainability drivers that affect the organization.

 

Based on research by SAS on how C-level executives view their Sustainability strategy shaping up the future, one executive encapsulates the idea that " Keeping my organization successful for the long term in an environmentally responsible manner". Doing so requires integrating and analyzing data from various Sustainability and Business related drivers.Information from such analysis has to be used to achieve the goals and challenge the existing organizational structure to achieve higher Sustainability index. Through intelligent monitoring tools such as a Smart Energy meter, companies have access to vast amounts of data.By using Business Analytics to interpret such information's companies can capitalize on their wealth of data to make efficient and accurate decisions.

 

Requirements of Green Business Intelligence
Framework

--> The management of Sustainability performance requires a Fact Based Decision making Framework. This will enable organizations to measure,manage and report on the Triple Bottom line and determine Business strategies that reduce risks and increase the profit value. Adopting such a framework enables organizations to gain competitive advantages in Financial management planning,Sustainable Business growth and High impact risk management.

 

--> An important feature of such a framework should be to use Predictive Analysis. This feature can be used to protect the environment by examining the data in greater detail thereby helping in mitigating the risks. For example, Yorkshire Water has effectively used predictive analytics to identify areas at risk of flooding in the UK, and improved the detection of blockages that could lead to flooding by 25-30%. The increased knowledge and insight allowed them to meet regulatory targets and also predict and avoid damage to the environment.

Data Analytics 

--> Understanding and embracing a Fact based decision making System has a prerequisite - the data should be  quantifiable, measurable and actionable. To support such a goal the Sustainability Business Analytics require three things, as mentioned by Software Advice in its article on Data collection and Business Intelligence.
1. Automated Data Collection - Danone, a Multinational Food corporation used its ERP data to determine the product footprint so as to evaluate its impact on the environment.The result was that the Analytics and the Management teams were able to benchmark the sustainability of its products within its portfolio in its specific location. Thus, Automate data collection provides direction to the development of Business strategy for performing the BI assessment.

2. Efficient implementation of BI tools - Business decisions have to be taken by analyzing the data across multiple Business and Sustainability dimensions. Under such circumstances BI tools become imperative. Visualization and 'Data Storytelling' become important to weed out unnecessary data. 

3. Accountable Sustainability Teams - World wide mandates to reduce GHG emissions  are compelling companies to look for new approaches to Sustainability management.To reduce the Environmental impact of these Businesses, different Business processes have to be streamlines to improve efficiency,enhance quality and add activities that are more environmental friendly. This means that the Sustainability teams have to be data-centric and Green BI proponents. Thus, the more accountable the CSR teams will be the more accountable the businesses and the marketplace will be,where conversation and efficiency can be more easily achieved.

System Analytics

--> Data mining capabilities should include metric analytics and forecasting. Out of the many Sustainability drivers and key variables the System should be able to identify key parameters that have the greatest impact on goal attainment. 

--> Include Strategy Scorecards and Maps to manage and forecast the finances and resources needed to achieve the desired outcomes across the enterprise. Using such Systems Sustainability teams should be able to prioritize organizational strategies, align investments with product strategies and talent development activities.

Conclusion  
Increasingly Businesses are facing responsiveness towards Social, Economic and Environmental changes around them throughout the world. Corporate leaders across industries are striving to transform their organizations to Fully formed Sustainable organization. Green Business Analytics enables such organization to measure,manage and report its Sustainability performance indicators,calculate its carbon footprint and evaluate alternative scenarios to take actions that have greatest impact in achieving its objective. Thus Green BI increases the organizations competitiveness. Hence, Green BI can deliver cost effective results so that all stakeholders can proudly embrace its solutions.

 

[J.Bharat]

True. Business analysts are turning into Green Business Analysts using green intelligence to support rapid growth of green business concept. As organizations are becoming more environmentally conscious, another dimension is added to the work of Business Analyst, focussing on environment-related impact assessment and risk mitigation methodology,  use of renewable energy sources, responsible disposal and recycling of e-waste, compliance with green regulations and internal policies, design for environmental sustainability, energy-efficient computing, power management etc. which ultimately leads to best business decisions and enhance competitiveness. Deployment of suitable business intelligence tools for gathering, analysing and providing athentic and critical information to business decision makers holds a key to sustainability of businesses.    

[GOPI KANTA GHOSH]

Wonderful...this can be basis of our plan of action

[BIJAYA NANDA DAS]

the article looks good,but more details are needed to fully comrehend