Towards a Net Zero Future: The Digital Transformation of Johnson Controls for Sustainability

As the world became increasingly urbanized, the contribution of buildings to climate change had increased dramatically. As of early 2022, the built environment accounted for 39% of all carbon emissions globally. American building technology giant, Johnson Controls International (JCI), recognized the huge business opportunity of providing sustainable and smart building management systems. At the same time, traditional and emerging competitors (e.g., incumbent industrial companies, utility or energy companies, technology companies, innovative start-ups, consulting companies) were also eyeing the same space. JCI took on the challenge to reinvent itself, in transforming from a traditional industrial organization to become a digital industrial organization, and eventually a digital industrial platform for smart building management. This process resulted in OpenBlue, moving the company from manufacturing HVAC, fire detection, and building controls products to providing predictive analytics and smart facilities. The company was now able to provide outcome-based solutions, and "net zero buildings as a service". How would JCI transform itself to seize new market opportunities towards a net-zero future? How promising was the company's new business direction? What could it do to stay ahead of the competition, especially with the new thinking around the future of workspace?

• Climate change
• Digital transformation
• Environmental sustainability