A significant disparity exists between sustainability practices and Digital Transformation initiatives across organisations in Malaysia, according to a recent report by Paessler, the experts in monitoring IT infrastructures and networks. Entitled “Keeping Watch: Monitoring Your Path to a Sustainable IT,” the report aims to illuminate the current state of sustainability practices among businesses and delve into the drivers and obstacles in implementing sustainable IT practices.
The report uncovered that the top barriers to adopting sustainability practices in Malaysia are balancing ESG metrics with growth targets (73%), the cost of deployment to businesses (53%), lack of clarity from government bodies (43%), and lack of technical expertise in planning implementation (35%).
Half of the organisations in Malaysia are optimistic about the business outlook for the next three years. The report also revealed that businesses in Malaysia view sustainability and digital transformation as separate entities rather than interconnected. Organisations are developing sustainability frameworks and digital transformation strategies in a fragmented manner, resulting in less effective use of resources such as budgets, time, and skills.
They also lack the capabilities and expertise to develop a sustainability framework and work on it, highlighting a clear disconnect between engaged sustainability practices and their digital transformation journeys.
Meanwhile, organisations in Malaysia are recognising the benefits of monitoring IT infrastructure, a crucial aspect of an organisation’s IT strategy that helps optimise energy consumption (95%), analyse the need for IT equipment (95%), monitor environmental factors like temperature, humidity, and CO2 levels (89%), and reduce emissions (84%).
Therefore, a sustainable IT strategy supported by a comprehensive monitoring framework must be an integral part of business operations. This approach ensures the integration of sourcing materials, production processes, and all other components of a sustainable business with the overarching digital transformation strategy.
Felix Berndt, Regional Sales Manager of Asia Pacific at Paessler, emphasised the importance of aligning sustainability, profitability, and data-based decision-making. He said: ‘Many businesses see sustainability and profitability as contradictory, but when the right values are measured, it results in cost efficiency and a competitive advantage.
“It is imperative to build a robust IT strategy, a digital transformation strategy, and develop a sustainability framework that are all integrated by a comprehensive IT monitoring framework. Bridging the gap between digital transformation and sustainability to make data-based decisions can result in resource optimisation and bring economic benefits for businesses.'”
Sustainability practices (ESG) and Digital Transformation efforts not aligned Although sustainability ranks among the top three business priorities for the next three years, it does not feature among the top five challenges for businesses across markets and sectors. Instead, challenges such as increased competition, digital transformation, driving growth (top line), improving profitability (bottom line), and talent management are considered the top five challenges by businesses.
The primary drivers for adopting sustainable frameworks are reputation (45%), adherence to industry operations standards (36%), and compliance with regulatory frameworks (24%).
The technology, telecom, and data centre sector (82%) were identified as the leading vertical with an established sustainable IT strategy, followed by manufacturing (79%) and essential services/public sector (66%). While the public sector lags in this regard, 31% stated that they would embark on their sustainable IT strategy journey in the next year.
Digital transformation can facilitate sustainability by enhancing business efficiency, reducing environmental impact, and helping companies achieve their sustainability goals. The adoption of suitable digital technologies can aid in monitoring and optimising energy usage, reducing waste, and streamlining supply chains. An effective IT monitoring backbone can enhance the knowledge and significance of a sustainable IT strategy.
Since 1997, when Paessler first introduced PRTG Network Monitor, the company has combined its profound monitoring expertise with an innovative spirit. Today, more than 500,000 users in over 170 countries rely on PRTG and other Paessler solutions to monitor their complex IT, OT, and IoT infrastructures. Paessler’s products empower customers to monitor everything and optimise their resources effectively.