Emerging Green Intelligence: Business Analytics and Corporate Sustainability

Emerging Green Intelligence: Business Analytics and Corporate Sustainability Chart 1 Background and Study Demographics Methodology Titles In April 2009, BusinessWeek Research Services (BWRS) launched a research program to determine EVP, 23% CEO, 24% the attitudes and opinions of C-level executives with regard to the use and value of business CXO, 13% analytics. The research program was designed to CFO, 17% understand how companies can optimize business CIO/ CTO, COO, analytics to improve fact-based decision making. 12% 12% This white paper, Emerging Green Intelligence: Annual Revenue Business Analytics and Corporate Sustainability, reviews a portion of the research and provides $5B+, $100M to analysis and insights on the topic of business $499M, 25% analytics. It is part of a series of white 25% papers for C-level executives intended to $1B to $500M to facilitate sharing the most important insights $4.9B, $1B, from the research. More data and insights 28% 23% are available at this exclusive Web site: http://www.sas.com/whitepapers/index.html Business Scope This research program is an online survey of C-level executives at leading large and midsize Regional, companies who are members of the BusinessWeek 17% Market Advisory Board, an online panel of 20,000+ Global, 57% National, business leaders and executives. Overall, a total 26% of 101 C-level executives across the globe were surveyed in April and May 2009 (see Chart 1). For more information about the contributors Industry to this research program, please visit: http://www.sas.com/whitepapers/index.html Financial Services 28% This research project was funded by a grant Manufacturing 17% from SAS but was written by BusinessWeek Professional Svs 15% Research Services. The editorial department of BusinessWeek was not involved in this project. Communications 10% For more information about this project, please contact BusinessWeek Research Services at Healthcare/Pharma 9% samuel_gager@businessweek.com. Other 21% Prepared by BusinessWeek Research Services for SAS 1 Executive Summary • Sustainability, an organization’s ability to meet both its business needs and larger social and environmental needs, is not a top-tier concern at the moment but is still a focus of many C-level executives. • Sustainability issues are driven by C-level executives, especially the CEO – half of executives point to the CEO as the person most responsible for sustainability initiatives. • Although still in its adolescence, sustainability is being recognized by innovative executives for the opportunity it offers; more than half of executives are focusing on sustainability throughout 2009. • Additionally, in the last 12 months, half of organizations have increased their focus on sustainability, while two in five have kept their emphasis on sustainability the same. • Business analytics has a positive influence on achieving sustainable business outcomes; almost half of C-level executives believe that it has an impact on sustainability, and most companies that have increased their focus on sustainability indicate business analytics has had a positive impact on business goals. Prepared by BusinessWeek Research Services for SAS 2 Introduction: Driving Chart 2 Sustainable Performance Question: Who is most responsible for driving sustainability Amid the current climate of greater demand for initiatives within your organization? both environmental awareness and corporate accountability, organizations are finding that CEO/President 47% success is increasingly being measured not only by financial performance, but also by ecological and COO 13% social accomplishments as well. In addition, the current economic climate has reinforced the need CFO 8% to plan for long-term success. The “Triple Bottom Executive Line” of people, planet and profit is incentivizing 7% Vice President companies to innovate in order to satisfy society and shareholders alike, and to realize the potential Other C-Level 5% of previously untapped methods and markets. Research suggests that the most forward-thinking CMO 4% enterprises are using analytics to their advantage by applying it to sustainability. General 4% Manager Balancing economic interests against social Vice President 3% and environmental concerns is referred to as “sustainability,” a growing approach to business CIO/CTO 2% that has led stakeholders to put increased pressure on companies to equalize their goals. Director 1% Yet the messages are mixed. Shareholders expect companies to generate profits, but they also want Other 6% firms to make a positive contribution to society (please specify) while negating environmental impact. Employees, regulators and yes, the customer, all want a company to do well, but they also want it to “do When asked how they would define the concept of good.” Innovative organizations that are winning sustainability, the answer of one C-level executive in the space have found competitive advantages surveyed encapsulates the issue: “Keeping my inherent in embracing sustainability. One thing organization successful for the long term in an is clear: When it comes to driving sustainability environmentally responsible manner.” But doing so initiatives within organizations, C-level executives, requires integrating and analyzing data to achieve especially CEOs, are at the wheel. Almost half goals, and challenging the organizational culture of senior executives surveyed indicated that the to change. Information is vital to understanding person most responsible for directing sustainability key corporate sustainability issues and their initiatives within their organizations is the CEO social, environmental, and economic impact. (47%), with the COO following at a distant second From responding to public policies to engaging (13%) (see Chart 2). Prepared by BusinessWeek Research Services for SAS 3 with the public and the international community, management, organizational effectiveness and companies need to have fact-based information risk management. in order to develop robust sustainability programs that deliver bottom-line benefits to shareholders. For Complex Problems, Sustainability is quickly becoming a mainstream Analytics is the Answer metric.