hp - towards greener world (255257)

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    Towards Greener World

    Presentation by:

    Vivek Sharma

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    Quotes

    "Earth provides enough to satisfy every man's

    need, but not every man's greed

    - Mahatma Gandhi

    "You cannot escape the responsibility oftomorrow by evading it today

    - Abraham Lincoln

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    Sustainability

    Sustain means to maintain", "support", or "endure

    Sustainability is improving the quality of human life

    while living within the carrying capacity of

    supporting eco-systems

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    Reasons Why Companies

    Do Not Go For Green

    More environment friendly the companies

    become, the more the effort will erode their

    competitiveness.

    Going Green will add cost ;

    No immediate financial benefits too.

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    Other Important Reasons

    Suppliers can not provide green inputs ortransparency

    Sustainable manufacturing will demand

    new equipments and processes

    Customers will not pay more for eco-

    friendly products during recessionSustainability as a corporate social

    responsibility divorced from business

    objectives.

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    Sustainability Issues

    Pitched battle between

    - Govt. and Companies

    - Companies and Consumer Activists; and

    - Consumer Activists and the Govt.

    Suggestions

    - More and increasing tougher regulations.

    - Educating and organizing consumers so thatthey will force businesses to becomesustainable

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    Conflict of Goals

    "Sustainability is here to stay or we may not be"

    - Niall Fitzgerald

    Largely social benefits of developing sustainable

    products or processes

    VSFinancial cost of Going Green

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    Innovative Companies are Smart

    Companies

    Sustainability Organizational and

    technological innovations Yield both

    bottom line and top line returns

    Becoming environment friendly lowers costs

    because of reduced inputs

    In addition, the process generates additional

    revenues from better products or enables

    companies to create new businesses.

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    The key to success -- INNOVATION

    The quest for sustainability is already starting to

    transform the competitive landscape, which

    will force companies to change the way they

    think about products, technologies, processand business models.

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    Ultimate Goal

    By treating sustainability as a goal today, early

    movers will develop competencies that rivals

    will be hard pressed to match. The

    competitive advantage will stand them ingood position because sustainability will

    always be an integral part of development.

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    Stages of Change

    Stage I Viewing Compliance as Opportunity

    Stage II Making Value Chains Sustainable

    Stage III Designing Sustainable Products andServices

    Stage IV Developing New Business Model

    Stage V Creating Next Practice Platforms

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    Stage I Viewing Compliance as

    OpportunityCENTRAL CHALLENGE To ensure that compliance with norms becomes an opportunity for

    innovation.

    COMPETENCIES NEEDED

    The ability to anticipate and shape regulations. The skill to work with other companies, including rivals, to

    implement creative solutions.

    INNOVATION OPPORTUNITY

    Using compliance to induce the company and its partners toexperiment with sustainable technologies, materials, andprocesses.

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    Examples

    Tata Nano Euro IV regulation for fuel

    consumption and emission standards.

    Hewlett Packard (HP) -1990 Lead solders

    By July 2006 HP was able to comply with EUs

    Restriction of Hazardous Substance Directives.

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    Stage II Making Value Chains

    SustainableCENTRAL CHALLENGE

    To increase efficiencies throughout the value chain.

    COMPETENCIES NEEDED

    Expertise in techniques such as carbon management and life-cycle

    assessment. The ability to redesign operations to use less energy and water, produce

    fewer emissions, and generate less waste.

    The capacity to ensure that suppliers and retailers make their operationseco-friendly.

    INNOVATION OPPORTUNITIES

    Developing sustainable sources of raw materials and components.

    Increasing the use of clean energy sources such as wind and solar power.

    Finding innovative uses for returned products.

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    Examples

    Supply Chain- Vendors consume around 80%resources . UnileverBy 2015 purchase palm oiland tea only from sustainable sources.

    Operations- Fed Ex- replacing old aircrafts with

    Boeing 757 thus reducing fuel consumption by36% while increasing capacity by20%.

    Workplace- IBM -3,20,000 employees, 25%telecommute, leading to annual savings of $700

    million in real estate cost alone.Returns- Returns reduce corporate profitability by

    an average of 4%. Besides returns reuse theproducts- Cisco -> 5% in 2004 to 45% in 2008,

    resulting recycling cost reduced by 40%.

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    Stage III Designing Sustainable

    Products and ServicesCENTRAL CHALLENGE

    To develop sustainable offerings or redesign existing ones to become eco-friendly.

    COMPETENCIES NEEDED

    The skills to know which products or services are most unfriendly to theenvironment.

    The ability to generate real public support for sustainable offerings andnot be considered as green washing

    The management know how to scale both supplies of green materials andthe manufacture of products.

    INNOVATION OPPORTUNITIES

    Applying innovative technologies in product development.

    Developing compact and eco-friendly packaging.

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    Examples

    UnileverIn October 2005 it launched the sustainableconcentrated detergent, which saves 500 million gallons ofwater and 150 million pounds of plastic each year. And thesmaller bottle means Unilever can transport three times asmuch product in every truck, saving 26 million gallons ofdiesel each year.

    ING Bank provides funds which invest in renewable energy,microfinance, or Kyoto Protocol emission reductionprojects.

    British Airways-Zero waste to landfill in the UK by 2010,

    Improve carbon efficiency by 25% by 2025 - reducing thegrams of carbon dioxide per passenger kilometre from 111to 83 grams, Reduce the average noise per flight by 15% by2015, 50% reduction in net CO2 emissions by 2050.

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    Stage IV Developing New Business

    ModelCentral challenge To find novel ways of delivering and capturing value, which will change

    the basis of competition.

    Competencies needed

    The capacity to understand what consumers want and to figure outdifferent ways to meet those demands.

    The ability to understand how partners can enhance the value ofofferings.

    INNOVATION OPPORTUNITIES

    Developing new delivery technologies that change value-chainrelationships in significant ways.

    Creating monetization models that relate to services rather thanproducts.

    Devising business models that combine digital and physicalinfrastructures.

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    Example

    Indian Posts

    Instead of shipping the electronic transfer it

    sends the master copy to one of its offices.

    Prints and binds the document and deliver

    copies anywhere in the city.

    Result- Shrinking of the delivery cost while

    service also becomes eco friendly.

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    Stage V Creating Next Practice

    PlatformsCENTRAL CHALLENGE

    To question through the sustainability lens the dominant logic behindbusiness today.

    COMPETENCIES REQUIRED

    Knowledge of how renewable and nonrenewable resources affect businessecosystems and industries.

    The expertise to synthesize business models, technologies, andregulations in different industries.

    INNOVATION OPPORTUNITIES

    Building business platforms that will enable customers and suppliers tomanage energy in radically different ways.

    Developing products that wont need water in categories traditionallyassociated with it, such as cleaning products.

    Designing technologies that will allow industries to use the energyproduced as a by-product.

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    Smart Grid

    For Internet and Energy Management

    Features Using digital technology to manage powergeneration, transmission and distribution from alltypes of sources along with consumer demand.

    Operating resilience against physical and cyber attack.Result - Lower cost and efficient use of energy.

    Usage -The grid will allow companies to optimize theenergy use of computers, network devices, machinery,telephones and building equipment, through meters ,sensors and applications. Enable energy needs of cities,companies, buildings and households.

    Examples - HP, Dell, IBM, Cisco as internet platform whileutilities include GE and ABB in India.

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    Smart Grid

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    ITC

    ITC Royal Gardenia, Bangalore has been rated

    the world's largest & India's first Leadership in

    Energy and Environmental Design (LEED)

    Platinum Green Hotel

    CII-ITC Center of Excellence for Sustainable

    Development, Gurgaon is also a Platinum

    Green Center and has been said as Center ofFuture by Hillary Clinton, Foreign Minister of

    USA.

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    IBM Software Reduce commuting with online collaboration and increasing work from

    home

    Reduce business travel by using online collaboration

    Shift workloads to underutilized servers to reduce energy and floor space

    needs

    Schedule execution of workload to off-peak hours to use lower-cost energy

    Effectively manage asset life cycles Optimize applications to reduce needed IT resources and energy

    Consolidate and virtualise to eliminate floor space and computing

    infrastructure

    Optimize HVAC for hot spots to reduce energy consumption

    Effectively manage your data storage needs

    Reduce the power consumption when workloads decrease

    Optimize business processes to reduce the energy footprint and costs of

    operations

    Reduce use of paper by enabling business processes to use e Forms andimages

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    An Appeal

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    THANKYOU