Cost cutting & increasing efficiencies has been one of the main methods of improving company profitability. However, certain costs seem to be almost impossible to reduce; such as material and energy costs. These costs will be almost impossible to reduce without delving into new possibilities; including new business models which are essentially green technology applications.
Green tech, environmental technology, sustainable technology or other similar terms have been seen as an unnecessary additional spending that will limit or cut revenue while providing little tangible benefits for businesses. However, recent trends in green tech can actually benefit the planet and businesses' bottom line.
Something Old, Something New
Despite in-house electricity being a relatively new feature (since 1925), humans have harnessed nature's power in all sorts of way. Simple examples would include using the sun for drying clothes & preserving food, using bio materials to generate heat, using wind to mill grains, etc. These millennia old technologies might be making a comeback soon as fossil fuel burning become less desirable; not only due to the fluctuating price, but also because of the health and environmental threats it poses.
Solar, Wind, and Biomass generated electricity are becoming more popular as technological advancements allow for more efficient energy conversion. Renewable energy generation is even cheaper than fossil fuel now. While it must be admitted that many renewable energy generators require a high initial investment, their subsequent cost saving effects would counter effect the spending shortly. In effect, businesses and houses which use renewable energy might spend much less without any reduction or interruption in normal operations.
The renewable energy sources combined with the higher efficiency makes mini grids possible which can also help extend the central grid's reach and realize electrification the remote regions or areas becomes more possible than ever. This might not be considered a success or even relevant to many businesses; but the non-electrified regions can become a potential expansion target. Currently, an estimated 1.1 Billion people do not have access to electricity. This means there are 1.1 Billion potential customers for ICT companies of untapped potentials.
Environmentally & Business Friendly
Ecofriendly practices also benefit businesses financially. Many consumers around the world are willing to pay a little more for goods from environmentally conscious companies. At the same time, employing green tech can also reduce costs more than just energy. Material extraction from damaged products or defects can reduce cost as the manufacturer can bypass some component manufacturing processes as the intermediate products are used instead. This will not only shorten & simplify the supply chain; it will also reduce the costs associated with manufacturing the product itself. The possibilities of higher revenue and reduced costs mean the companies that adopt green tech into their businesses can most likely increase their profits quite significantly.
The popular green tech applications available today seem to be more of a support to ICT rather than a new addition or a new form of it. However, the ICT industry can most definitely benefit from green tech and its applications. One of the most direct applications that can benefit the users is most definitely efficiency improvement.
Many of today's technologies require heavy computing powers; including for AI processing, blockchain hashing, data hosting, etc. As their usage grows in the future, so too will the demand for computing powers and without an increased efficiency, the energy demand can reach an unsustainable level. To ensure businesses can enjoy the values and benefits from the new technologies while not spending too much on energy, a high efficiency solution is vital.
Conclusion
Green tech can benefit businesses more than just as a marketing tool as it can concretely add value and profits. The problem that green tech may face to prevent its adoption from businesses is sometimes the initial investment which can deter potential adopters. However, it is important to note that green tech adoption is a long term game where the benefits might not be seen in the same quarter or year. The vital added value of green tech is how it enables businesses to reduce cost, increase revenue, and most importantly open new possibilities.
See More Green Tech in InnoVEX 2019
Green tech is increasingly becoming a popular industry and also one of the main topics of InnoVEX 2019. Relating to this growing trend, InnoVEX will have a dedicated theme pavilion on green tech & its applications. Startups interested in joining can register here.