What is the purpose of technology? What is technology with purpose?

What is the point of technology? It is a na?ve question, but one I often feel like asking every time another technological marvel is unveiled. From TikTok to self-parking vehicles, many technologies have a peripheral or trivial feel. Perhaps it will go on to play a major role in our lives (think smartphone), but often it looks like technology for its own sake; smart (no pun intended) but decorative. Tech that doesn’t seem to answer a specific need.

What, then, is the raison d’être of a technology company? Is it to dazzle us with ever more impressive gadgets? Or is it, as Steve Jobs famously observed, to make a “ding in the universe”?

For me, technology exists – and matters – in order to make our world a better place. Societal and human improvements rely on technology. As such, the impact/the value of a technology company should be measured by the improvements it brings about in the world rather than by the “novelty value” in terms of required technical competences and leveraged business model of its products or by its financial valuation.

In the long run, there is no trade-off between profit and purpose.

A company’s agenda should not be dictated by simple money making profit seeking, but by the interests and passions of its engineers, combined with the input of consumers and likely social benefits of any project they work on. And I insist that providing technologies is not enough to make a better world. However, what really matters is how people use technology.

Recently, there has been a surge of green-washing, and even purpose-washing, announcements from companies, attempting to position themselves as good corporate citizens (Purpose-driven Leadership). Purpose is the new golden buzz word. What is purpose-driven leadership?? What does it look like? Do words translate into actions? How is it impacting customers? Slogans and visions should encapsulate what the company really stands for. Our actions must contribute to creating a better society. We are facing serious global challenges – food shortages, rapid urbanization, environmental protection, ageing, mitigation of natural disasters and more.

The next generation of the internet, the Internet of Things, is a driving force for this drastic change. People and the “things” around us are all linked together, sharing information. The World Economic Forum calls it a hyperconnected world and it will have a huge impact on the future of business and everyday lives of people. Combined with big data, we expect new innovative services will be created. At the same time, we will face serious challenges in information security and privacy protection, ensuring organizations look for skills and trust in their partners.

In this new world, it is essential for organizations to enable three dimensions: people, information, and infrastructure. How we connect and empower people; how we create knowledge from information; and how we connect everything and optimize business and social infrastructure. Siemens helps customers deliver new value by bringing together these three key dimensions. This is what people-centric innovation is all about.

My ambition is doing well by doing good. In the end, our customers and key stakeholders are the ones who can tell and verify whether we are doing a good job or not.

“Technology company seeks customers for serious relationship with a view to co-create world improvement.”

Now that does sound like a useful innovation to me. And is my definition of technology with purpose.

At Siemens, we believe in technology with purpose. We even create it. We live up to our responsibility to develop smart, sustainable solutions. It's great to work in a team that makes a difference. Our partner Auto-Info has developed an innovative mobile #COVID testing unit for fast detection. In September 2015, Siemens was one of the first global industrial companies to commit towards carbon neutrality by 2030.

We have reduced our global CO2 emissions by 54% over the last 6 years, and we are on track toward our target of being carbon neutral by 2030. I am so proud of our progress. Our Environmental Portfolio helps us achieve our goal, and also supports our customers to increase their competitiveness and to combat climate change.

In order to meet the climate objectives of the Paris Agreement and take tangible action on climate change, it is crucial to accelerate the implementation of international carbon pricing mechanisms. Companies are increasingly integrating a climate-related approach into their business strategies.

Recently, a fast-moving consumer goods company adopted a “carbon adjusted” earnings per share metric. The move, announced on February 26, was designed to expose the financial cost of carbon emissions on its entire value chain and help investors better understand the firm’s environmental impact. Also the Dow Jones Sustainability Index family already tracks the stock performance of the world's leading companies in terms of economic, environmental and social criteria. Do you think new financial metrics can help us further refine the definition of technology with purpose?

The justified skepticism is high that companies use social and green issues only as an additional marketing tool - "purpose-washing". How can a company prove that it is serious about its social responsibility? Do you have any ideas?