What is Impact-Tech ?

Impact is big buzzword going around. But what is Impact anyway? According to IMP forum, Impact is a change in an important positive or negative outcome for people or the plant. It can be deconstructed into five dimensions:What, Who, How much, Contribution and Risk.

Hence, on can classify organizations into three categories:

• Act. or rather do no harm. Proactively preventing and reducing effects of negative outcomes for the people and the planet. Such organizations are labeled as "responsible". One example is reduction in waste produced by manufacturing processes.

• Benefit. Avoid harm while generating some positive outcome for people and the planet. These are referred to as "sustainable". For example, focusing on diversion and inclusion in the workforce at all management levels.

• Contribute. Proactively search for solutions to aching problems. This could be contributing to lessen the education gap.

So, how does this connect to Impact-Tech ?

The first layer is taking responsibility. Responsible Technology will refer only to ACT. That is using technology in a manner that does not harm. This means looking into your company and your processes and figuring out how to lessen their unintended consequences. Reducing waste, electronic pollution, bio-hazards, stopping animal testing and so on.

Impact Tech is the next step. It means taking a look at your core products and thinking how can they have a positive effect on all stakeholders. Ideally, you would be solving a real social or environmental challenge. Companies dealing in Health tech, digital health and Ed Tech or excellent examples of companies that their core product is Impact-Tech.

The main challenge today is the feeling that using the term impact still tends to color your company and your product as social-mission driven. And as such, financial returns will be lower. Moreover, companies sometimes feel they do not want to take upon themselves something they cannot accomplish. These concerns should not be easily dismissed.

There is an understanding today that Impact does not contradict business accomplishments. Impact can be measured and impact KPIs can be integrated into the business plans in a synergetic fashion to enhance the financial results while bringing added value to the company, to society and to the environment. There should and there is no contradiction.