Recently I gave a talk on the connection between digitalization and decarbonization during a supply chain conference overseas. Here I will share some summarized thoughts and the discussion after the panel.

I always have to remind myself to talk about the difference between "digitalization" and "digitization". According to the answers provided by ChatGPT, "digitization" is the conversion of something from its analog form to digital form. On the other hand, "digitalization" is the utilization of digital technology to transform operations, processes, etc. And in the context of this conversation, "digitalization" is the relevant term.

Digitalization involves a few things based on my personal opinion. One needs to understand the purpose of creating digitalized business processes or operations. Then based on the well thought-out needs we can formulate how and what of data collection. Analytics is the next important step in understanding what is going well and what needs to be improved. And the outcomes of on-going data collection and analyses can guide us in creating the next sets of plans and solutions. Operational decisions derived from carefully curated data analysis and really help increasing efficiency and in many ways lead to the reduction of carbo emissions. This can apply to a lot of transformational areas, including decarbonization.

Both terms of decarbonization and digitalization are not new concepts. In fact, many companies and entities worldwide have been at these for sometime. In fact, many European and Asian countries have been doing more advance works than the U.S. Even the lesser developed countries in Asia actually have sophisticated programs that could really impress everyone. However, from and outsider's perspective looking it, it sometimes could be difficult to realize that how the two concepts could complement each other, especially as related to the supply chain industry that utilizes equipment and assets that often produce relatively higher carbon emissions than those in other businesses.

I am not professionally specialized in decarbonization works so I cannot speak too much about the science behind all the efforts. However, I am heavily involved in operationalizing decarbonization projects in supply chain as well as digitalization development associated with these projects. One example I shared with the audience is the route optimization project I am collaborating with a few overseas partners. The idea is to collect data points along the supply chain, adding operational parameters, and then utilize analytic tools developed by one of the top universities to provide the most idea routing to reduce fuel usage and improve transportation efficiency. This can save both costs and carbon emissions. 

Another related subject that I discussed with my fellow panelists was how those in the more developed countries help the less developed countries in both decarbonization and digitalization areas. There are many international financing mechanisms and I am not the best person to speak about that. However, I talked about international collaboration through knowledge, experience and information exchanges. I believe we have obligation to share our know-how. And I also believe that in sharing there are opportunities for both sides of the world.