- In the biological world, many species have symbiotic relationships, mutual dependencies, with other species to increase their ecological fitness.
- We maintain that there can be a similar symbiotic relationship between digitalisation and collaboration in business and society.
A recent news article published in the Loadstar speaks about Digital symbiosis: the engine powering sustainable shipping.
Co-determine economic fitness
Neither can exist without the other because they co-determine economic fitness. Furthermore, the combination can drive significant economic and societal capital creation. Successful partnerships co-evolve their collaboration through cooperative digitalisation to contribute to an emerging era of digital symbiosis.
We assert that all industries need to emphasise the interrelationship between collaboration and digitalisation to create economic and societal value through enhancing human and social capital and preserving and restoring natural capital. This mindset can take shipping to higher levels of digital symbiosis.
Making shipping sustainable
The shipping sector is the backbone of the global economy, requiring large-scale partnerships. While economic value can be created in silos, dealing effectively with global challenges like climate change or vanishing biodiversity requires collaboration.
While industry cooperates to create a dynamic self-organising ecosystem, freedom of association that permits collaboration for positive change has yet to demonstrate its full potential. This lack of deep cooperation can cause slow digitalisation, which handicaps coordinated action to address global challenges.
We assert that the most effective way to drive balanced capital creation is to combine collaboration (c) and digitalisation strategies (d) to drive business models that simultaneously address economic (e) and societal capital (s) creation (Figure 1). The cdes model is a general guideline for public and private sector actors in their quest to deal with today’s significant challenges.
Every organisation, whether private, public, or non-governmental, is in the business of capital creation. The winners are those organisations with a recipe that generates the highest level of productivity within their competitive sphere. A pure short-term focus on profits that neglects a balanced broader stakeholder view, such as cdes, can jolt the share price but inflict long-term damage.
What this means for shipping
Reaching the IMO 2018 ambitions to reduce CO2 emissions is a complex endeavour. Complexity often results in actions in one cluster of value chains impacting other clusters.
These positive or negative transitive or domino effects require more data sharing to ensure sufficient situational awareness across related systems and value chains. Standardised data exchange enables effective collaboration to trigger desired goals and resolve unwanted interactions.
The decarbonisation of shipping requires a high level of alignment between industries and their critical value chains, such as the marine fuel, shipbuilding, and shipping operational value chains.
Collaboration through cooperative digitalisation across these clusters of vital value chains is conducive to minimising greenhouse gas (GHG) emissions, pollution of the oceans, the destruction of marine life, and global wealth inequities.
Another example of a solution rooted in the idea of combining collaboration and digitalisation for better and more balanced outcomes is the virtual watch tower (Figure 2).
An international network of virtual watch towers could provide situational awareness of vital assets (e.g., cargo) and answers to emerging disruptions. While still theoretical, the concept promises to yield enhanced fluidity of goods and delivery precision and a reduction of transport emissions by creating an extensive data pool hosted by a neutral entity.
This data store can feed analytical engines that can share their finding with the network members for their individual and collective benefit.
The world needs a formula for healthier growth. Shipping industry decision makers acknowledge there is a need for closer collaboration. Nevertheless, they are less aware that combining collaboration and digitalisation while an appealing idea lacks the requisite scale for navigating the next phase of disruptions.
New regulations, particularly in Europe, North America, and in Asia, will force change upon shipping. It should welcome these developments as they focus on collaboration and digitalisation for balanced economic and societal value creation, which should benefit many in the short- and the long-term.
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Source: The Loadstar