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Digitainability: Profiting from the combination of digitalization and sustainability

Ulrich Lichtenthaler • Nov. 09, 2021
Many firms have started digital transformation and sustainability initiatives – but they neglect to profit from the combination of these two megatrends.

The term ‘digitainability’ has recently been coined in the academic literature to highlight relevant interdependencies between digitalization on the one hand and sustainability on the other. Actually, it does not really matter whether this specific term is used or whether companies refer to digital sustainability or sustainable digitalization instead. Much more important is the general awareness of interdependencies between these two megatrends. The variety of potential positive and negative interactions is addressed in my article entitled ‘Digitainability: The Combined Effects of the Megatrends Digitalization and Sustainability’, which has recently been published in the Journal of Innovation Management. The full text of the article is available for free.

Digitalization and sustainability
The following abstract of the article gives a brief overview of its content: “The concept of digitainability has recently been suggested to underscore potential cross-fertilization effects between digitalization and sustainability, which have often been neglected. This conceptual article draws on an innovation-based view to develop a framework for combining digitalization and sustainability in firms’ strategic initiatives. It distinguishes four settings depending on whether firms pursue either digitalization or sustainability – or both or none of them to a strong degree. Beyond the individual importance of the two megatrends, their positive and negative interdependencies will gain further importance, and this article underscores the need for overcoming a potential dark side of digital solutions in terms of their carbon footprint and energy consumption to enable a sustainable digital transformation. In addition, digitainability offers the opportunity to move beyond optimization and cost savings due to digitalization and sustainability initiatives in order to capture the cross-fertilization potential of these two megatrends for innovation, business development, and sustainable design.” (Source)

Figure 1: Combining digitalization and sustainability (Source).

Innovation and business development
When discussing this topic with executives and with experts from other fields, many people can immediately highlight some positive or negative synergies of digitalization and sustainability in their work environment. Nonetheless, many large companies as well as startups often ignore these interfaces and continue to focus on relatively isolated digital transformation initiatives and sustainability programs. To some degree, it is understandable to manage digitalization and sustainability in a relatively separate way based on different responsibilities in an organization.

At the same time, however, companies tend to leave major opportunities for innovation and new business development unconsidered if they do not address the cross-fertilization effects of their digitalization and sustainability programs. In the full text of my article, several examples for such effects are presented for companies from different sectors. If executives and managers have any touchpoints with digitalization and sustainability in their organizations, they should therefore have a close look at potential positive and negative interdependencies when planning activities, budgets, and goals for the next months and years.

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