Twin Transition: Disruptieren oder Disruptiert werden?

Companies are facing a profound change: increasing digitalisation is fundamentally changing established markets, while regulatory and societal demands for greater sustainability are adding to the pressure to act. However, many companies have so far only taken their first steps by digitalising existing processes, without fundamentally rethinking their business models or value chains. As a result, the disruptive potential of the digital transformation remains untapped. At the same time, sustainability initiatives often cannot be efficiently integrated into corporate strategy. The central question is therefore: do we let ourselves be displaced by new, digital and sustainable business models, or do we use this change as an opportunity to become drivers of innovation ourselves?

The dual transformation as a strategic challenge

Companies today are facing two fundamental changes: the digital transformation and the sustainable transformation. Both developments are not optional, but absolutely necessary to remain competitive in the long term. However, in many organisations, these two challenges are considered separately – with fatal consequences.

Digitalisation alone is not enough if it only optimises existing processes instead of fundamentally changing business models. Many companies rely on digital tools, replace manual processes with software and automate existing processes – but real transformation fails to materialise. At the same time, sustainability initiatives are often isolated measures that have no direct influence on the business model or the value chain.

Reality shows, however, that digitalisation can enable sustainability – and vice versa. Companies that strategically link the two topics create new, future-proof business models that integrate both economic success and ecological responsibility. This twin transition is not an additional project, but a fundamental realignment of the corporate strategy. It requires not only technological innovation, but also a new understanding of value creation, organisation and product development.

However, many companies lack the necessary internal resources, expertise and experience to implement this change efficiently. Without a clear strategy, digitalisation and sustainability risk either degenerating into isolated solutions or overwhelming organisations. The question is not whether we have to tackle this transformation, but how we can successfully shape it before the competition forces us to do so.

Sustainable digital product development as a driver of change

A holistic twin transition requires the development of new, digital products and services that combine sustainability and profitability. Companies need to think beyond mere digitalisation and consistently adapt their business models to changing market conditions. A sustainable digital transformation is based on several central pillars:

• Circular Economy by Design: Digital platforms enable longer-lasting products and closed loop systems. By integrating take-back, reuse and recycling mechanisms, companies can make the value chain more efficient while reducing waste.
• Data-driven efficiency gains: Artificial intelligence (AI) and the Internet of Things (IoT) help companies optimise resource consumption through real-time analysis, implement predictive maintenance and minimise emissions.
• Digital services as sustainable alternatives: Subscription models, digital twins and virtual products enable companies to establish resource-efficient business models based on recurring revenues rather than on one-time sales of physical products.
• Sustainable software development: The ecological footprint of digital technologies is often underestimated. Resource-efficient code, energy-efficient IT infrastructures and sustainable cloud strategies play a crucial role in responsible digitalisation.

Industries in transition: opportunities of the twin transition

The shift from traditional to sustainable digital business models is not a theoretical concept, but a reality in many industries. Companies that made a strategic twin transition early on are already benefiting from competitive advantages. Three key industries where this transformation is already taking place are:

Banking:

Banks are under growing pressure to offer sustainable financial products while also making digital processes more efficient. Digital platforms make it possible to channel investments into sustainable projects in a targeted manner, while modern technologies such as blockchain ensure transparency and traceability. At the same time, a resource-efficient IT architecture can significantly reduce the high energy consumption of traditional banking systems.

Insurance:

Insurers are called upon to integrate climate change risks into their models while providing digital services that address changing customer needs. AI-supported loss prevention and sustainable insurance products help to make the business more resilient and resource-efficient in the long term.

Manufacturing Industry:

The manufacturing industry must rise to the challenges of increasing scarcity of raw materials and reducing emissions. Digital twins, networked production units and AI-supported maintenance help to optimise material and energy consumption while making production processes more efficient.

Challenges: Conflicting goals between digitalisation and sustainability

The digital transformation can drive sustainability, but it also presents challenges. Cloud infrastructures, data centres and data-driven applications themselves have an ecological footprint. Companies face the challenge of designing digital solutions in such a way that they offer both economic and ecological advantages. Balancing technological progress and sustainable economic activity requires a strategic approach and consistent integration of both aspects into the corporate strategy.

Conclusion: companies need a clear strategy for the twin transition

Companies are facing a complex but crucial challenge. Those who take the twin transition seriously have the chance to become not only more sustainable but also more competitive. However, many companies are inexperienced in transforming their business models. Often, internal capacities are lacking to implement a strategic realignment efficiently and sustainably at the same time. Without proven methods and in-depth experience, there is a high risk of only superficially modernising existing business models or getting stuck in isolated projects.

Two central levers arise here:

• a) Organisational transformation: companies need new roles, structures and technologies to successfully integrate digitalisation and sustainability. Without a clear strategic framework, the transformation remains fragmented and ineffective.
• b) Development of sustainable digital products: The challenge lies not only in excellent software development, but above all in forward-looking product management. Without a well-founded discovery phase that takes into account customer needs, market risks and transformation requirements, digitalisation is in danger of happening without real added value. Not only must digital products be developed in a resource-efficient manner, they must also actively support users in achieving their own sustainability goals.

The question is no longer whether companies need to transform, but how quickly and how consistently they do it. Do we decide to disrupt ourselves – or do we wait until the market forces us to?