Sustainability as competitive advantage

Sustainability in business is often only understood as merely a set of regulatory requirements and reporting obligations – and at utmost, you should achieve simple incremental gains annually. I believe this is a very narrow view that fails to capture the true potential of sustainability as a strategic tool for companies. Because if we choose to look at sustainability from a dynamic and value-driven approach, we find sustainability can be about looking at a business through a different dimension to find and unlock competitive advantages.

 

By viewing sustainability as a lens through which to examine and reimagine business operations, companies can uncover new opportunities for innovation, efficiency, and growth. We start looking at supply and value chains and opportunities to short them, improving cash flow, transportation costs and their footprint. We view circular-economy as an opportunity to reduce waste and access raw materials at improved cost. We unlock innovation opportunities for value-added products, sometimes even creating new segments or markets. This approach prompts organizations to rethink their processes, products, and services in ways that not only reduce negative impacts but also create positive value for a broader range of stakeholders.

 

When sustainability is integrated into core business strategy, it can become a powerful driver of competitive advantage. Companies that embrace this perspective are better positioned to identify emerging market trends, manage risks, and build stronger relationships with customers, employees, and communities. They are more likely to develop innovative solutions that address pressing global challenges while simultaneously improving their bottom line. In essence, I believe this view of sustainability transforms it from a compliance exercise into a catalyst for business transformation and success in an ever-changing global landscape – and how can one not strive for people, planet and growth opportunities?

Do you know your questions?

I find it passionate to work with Big Data and Gen AI! They share this very specific trait – they know all the answers! Whatever you throw at Big Data pools or Gen AI, they will answer you back – no question marks, no hesitations, no “I don’t really know…”, “I need to find out more”,… They know it all! (It’s a bit like talking to ourselves when we were 15 years-old, but let’s not go down that way)

 

Now, this has an amazing consequence. More than ever, it highlights the importance of the question. If you can have all the answers (and, by the way, the quality is usually quite good, and it is constantly improving), then, the differentiators are in the questions you ask! Strategy definition is not on the answers anymore, but in the questions – and are you sure you are asking the right ones?

 

In Big Data pools, I always advised you to first have it clear what you want to know, instead of just looking at all the data, and trying to make sense of it. The risk of getting lost is tremendous. And the same happens with Artificial Intelligence – it will always give something back to you. If it is the right thing you needed, well… it depends…

 

So, focus on the question. Hone it. Own it. And never stop with the first one. Like in data, you can keep digging more and more – and those constant, well-thought questions, will keep on improving the quality of the outcome you get.

"Everybody's free to commit to lifelong learning"

I was listening to the radio this morning and suddenly it was Baz Luhrmann’s “Everybody’s free (to wear sunscreen)” playing on. And of course, it hit me – because it is a song you don’t listen often on radio, because it is a very different song and I like it and there was something about it addressing “the class of 99” with advice for their next 20 years (so… around now, I would guess). But also, because wearing sunscreen is really one of the simplest and best habits you can have for your health and skin, if you commit to it daily and in the long run. And then my mind wandered, I was thinking what advice would I give for someone for the next 20 years.

 

And I guess “Everybody’s free to commit to lifelong learning” struck a chord in me. It’s probably the best long-term advice I would give for the next 20 years (and, by the way, it’s exactly the same advice I would give myself 20 years ago).

 

“If I could you only one tip for the future, lifelong learning would be it,

Long-term benefits of lifelong learning have been proved by scientists” (that’s an adaptation of the original song, by the way)

 

The first benefit is exactly the one you are thinking about. In a fast-paced and rapidly evolving job market, fueled by innovation and technology advancements, required skills sets are quickly changing. To stay relevant, and surf this continuous wave, one must embrace education as an always-on activity, committing to learning new things, skills and competences every day. Today we are talking about AI and Sustainability, 20 years ago we were speaking about Performance Marketing and E-Commerce, in 5 years-time we will be building on whatever new is coming.

Lifelong learning enhances career prospects by expanding one's skill set and opening doors to new opportunities. It fosters creativity and problem-solving abilities, enabling professionals to tackle complex challenges in an ever-changing work environment – so, you can look at things from different dimensions, and if you are lucky enough, even bridge different experiences. But with this comes an additional benefit - it boosts confidence and job satisfaction, as we feel more capable and valuable in our roles.

But lifelong learning goes beyond career prospects and our professional angles. It keeps the mind sharp, encourages curiosity (and that’s probably one of the human brain’s greatest assets), and cultivates a growth mindset. So, what I am saying here is that it also has a positive impact on your cognitive health and overall well-being.

 In essence, committing to lifelong learning is an investment in oneself, ensuring continued relevance, adaptability, and personal fulfillment in an increasingly dynamic and tech-driven world.

But don’t forget. Life-long learning is like wearing sunscreen. It requires daily long-term commitment. And trust me on this.

AI and RX importance

We live in a very fast and evolving world – and that is especially true in marketing. AI is actually changing the marketing world in an incredible way. One dimension is about AI Agents. Because, in a world where purchasing decision making is increasingly done by AI Agents, marketing will necessarily need to be a lot about influencing robots. Not only humans, but robots. And the question is, are we ready for this?

Don’t think this is in a distant future. In some industries, it’s months away. In others, it is happening already! Think about the way purchasing happens in financial markets or digital ads – you basically brief the AI consols and they will automatically look for, buy (and sometimes sell) assets, products or digital advertising space. And think about commodity markets (power / electricity, insurance, banking,…) where there are already agents that you can upload your data and latest bills, and the agents will give you back the best providers and products for your profile – this is already happening in Portugal and throughout Europe.

The impact of these purchasing-side agents on marketing will be huge:

-            Data-driven approaches: AI agents will rely heavily on data for decision-making. Marketers will need to ensure their products have robust, accurate, and easily accessible data points that AI agents can analyze.

-            Algorithm optimization: Understanding and optimizing for the algorithms used by AI agents will become crucial. This may involve tailoring product information and pricing strategies to align with AI decision-making processes.

-            API integration: As buyer-side AI agent APIs become more prevalent, marketers will need to develop strategies to interact effectively with these APIs, potentially creating seller-side AI agents to broker interactions.

-            Reputation management: AI agents will likely prioritize factors such as reliability, quality, and customer satisfaction. Maintaining a strong digital reputation will be critical for influencing AI purchasing decisions.

I feel you have a question when reading this – what about humans? Don’t worry. We still play (and will play) a significant role. Despite the rise of AI agents, human oversight and intervention will remain important – and don’t forget we will be the ones briefing the agents, or, at very least, experiencing the products these agents will buy for us.

But we shouldn’t ignore this new dimension of marketing that is rising. As Professor Pedro Moreno said yesterday at an IE Business School session in Lisbon, we are seeing the dawn of RX – Robot-Experience. As AI agents become more prevalent in purchasing decisions, marketers will need to develop new strategies and skills to effectively influence these digital decision-makers while maintaining ethical standards and adaptability.

42% of CEOs don't believe...

In a recent PwC study, it became clear that in an era of unprecedented transformation, businesses face a critical juncture. A staggering 42% of CEOs believe their companies won't survive the next decade without dramatic change, highlighting the urgency for innovation and adaptation. This sentiment is echoed by the majority of business leaders who recognize the need for a fundamental shift in how value is created, delivered, and captured in the coming years.

I believe that at the heart of this transformation lies a dynamic triangle of forces: technology (particularly AI), sustainability, and people – and I think we are all having the opportunity to witness firsthand how these elements can either support or conflict with each other. The challenge – and opportunity – for businesses lies in effectively managing this interplay to drive growth and innovation.

Let’s look at Gen AI as an example by itself. While 46% of CEOs believe Generative AI will lead to greater productivity, only a fraction are currently reaping significant gains from its adoption. Moreover, many leaders lack confidence in successfully integrating AI into their company systems. This gap between potential and realization underscores the need for strategic guidance in navigating the AI landscape.

By aligning people, technology, and sustainability, businesses can not only survive but thrive in this new era. And as we stand at this crossroads, the question becomes: How can each organization (and yours) harness these forces to create sustainable growth and innovation?