Next-generation market transformation

Ruby Gates and Stephanie Swanson

Here we are in the midst of an economic explosion. We wonder what to repair first, where to swing the hammer next, and how to begin the journey of recovery when a burning question remains: rebuild or reinvent?

If you are committed to reshaping a New Economy, in which business leaders take responsibility for the impact of their practices, the latter applies. Market destruction offers a chance to create new markets that work not in blind response to consumer demand but within the footprint of those demands. In other words, there is an opportunity to create an economy driven by the regenerative nature of our resources. Consider this next-generation market transformation.

Historically, the term ‘market transformation’ has been a strategy defined and leveraged specifically by utilities and energy efficiency groups to promote the manufacture and purchase of energy-efficient products and services. The horizon is long term, with investment yielding beneficial structural, operational and behavioral changes.

Historically, unless you work within or around the utility or energy sector, the advantages of market transformation strategies—such as financial savings, environmental benefits and enhanced productivity—have often become lost in translation for the general business leader…until now. Now there is an opportunity to build a business case for market transformation that applies to the full scope of sustainable economy sectors, including energy conservation, waste management, transportation, building and materials.

First, let’s take a step back. Market transformation is not a new concept; it is a recurrent trend ignited when technological advancements catalyze economic shifts. One of the most pivotal examples is the adoption of electricity. From the manufacturing facility to the family home, vast amounts of time suddenly became available. The use of electricity expanded operational capacity and efficiency on all fronts, leading to booming new kinds of businesses, economies and communities.

We are currently on the precipice of another market transformation opportunity. Why is the new generation different from past forms? First, it is uniquely driven by dire and specific necessity. We must mitigate a rapidly changing climate and reduce a risky dependence on fossil fuels. We must assign a true and accurate cost to carbon and strategize and deploy new innovations, which will prompt research, investment and the commercialization of new technologies. As such changes are pursued and solutions emerge, fresh economic structures will replace the current framework.