the role of ict in delivering a low carbon economy
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Presentation on The role of ICT in delivering a low carbon economy, at a Mackay Hannah Conference, Edinburgh, 26th September 2012.TRANSCRIPT
The role of ICT in delivering a low carbon economy. Andrew Mitchell 26th September, 2012 Mackay Hannah Public Policy Conference
1. Low Carbon Hub (High School Yards) 2. Business InnovaBon ERDF project
3. Policy (ClimateXChange)
Scotland’s centre of experLse connecLng climate change research and policy. CollaboraLon between 16 research and higher educaLon insLtuLons across Scotland.
4. ExecuBve EducaBon and Skills Investment and Entrepreneurship workshops. China, India. AssociaLon of Carbon Professionals
Climate Science is Clear Climate change is not new, but it did wipe out life! 1. There are natural accumulaLons and releases of fossil carbon, as deposits of coal, gas and oil are created and destroyed over hundreds of millions of years. Big dump 55 million years ago. 2. The notable increase in carbon dioxide in Earth’s atmosphere since the Industrial RevoluLon has been caused by Homo Sapiens, mainly by our sLll growing use of coal, gas and oil. 3. Earth’s climate has changed greatly in the past, oTen rapidly, long before we were around to light so much as a camp fire. So ‘stability is not an opLon’ (David Jenkins, formerly of BP and Director of BHP Billiton). 4. You can’t argue with rocks.
ISBN-‐10: 0521145597
Scenario One Scenario Two
Let’s get on with scenario two…
• Entrepreneurs and corporate innovators will drive change.
• Drivers: wealth creaLon and cost savings.
• The BT transformaLon story as an example of unintended carbon savings.
• ICT industry carbon footprint is big(ish) 2-‐3 percent of global emissions.
• The BIG prize is ICT as an enabler of efficiency in every walk of life.
The BT transformation story:
“Knowledge Management & ICT” 27th November 2001 Deming Learning Network Meeting Aberdeen
Agenda
§ Some facts about BT Group plc.
§ About my team - stepchange.gov
§ The only constant is change (no more clichés, I promise)
§ A selfish view of knowledge management in BT
§ Disruptive Innovation - does size count?
BT Group facts § BT Group plc.:
§ British Telecommunication plc. § BT Ignite – international networks & solutions § BT Retail – residential & business relationships & channel to market in UK § BTopenworld – mass market internet § BT Wholesale – runs the BT Group networks, sells network capacity. § BT Affinitis – business & computing services § BTexaCT Technologies – research, development & consulting business
§ 137,000 employees (03/2001)
§ Procurement: £5bn, 17m transactions
§ £20.5 billion turnover (fy 2000/2001)
§ mmO2 plc. – new mobile company
§ Global & diverse operations
BT stepchange.gov § Part of BT Retail § 92 people § Innovating to transform public services § We break rules & generally cause trouble (constructively) § We generate business opportunity & develop new markets:
§ www.ukonline.gov.uk (first phases, now with new supplier) § www.businesslink.org (Small Business Service) § Public Sector Change Research (with Lancaster university) § International Centre for eGovernance (SCF, ITC & CEG) § Public Policy Forum & innovation thought leadership § Greater London Authority advisory § Mobility § Location Based Services § eProcurement § eDemocracy
Constant change Employees in BT
0
50,000
100,000
150,000
200,000
250,000
300,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
No.
of E
mpl
oyee
s
BT Group Turnover (£m)
0
5,00010,000
15,00020,000
25,00030,000
35,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Year£m
This is, in fact, a graphical representation of knowledge management.
How did we do it?
Activity-Based Costing * Adaptive Organization * Ambidextrous Organizations * Benchmarking * Business Process Reengineering * Commitment-Based Management * Competitive Capabilities * Continuous Process Improvement * Core Competencies * Customer Focus * Customer Loyalty * Cycle of Failure * Database Marketing * Disruptive Technology * Employee Empowerment * Five Forces Analysis * Flexible Manufacturing Systems * Holistic Management * Horizontal Integration * Just-in-time * Learning Organization * Mass Customization * Neural Networks * Quality Value Engineering * Organizational Delayering * Paradigm Shift * Performance-Based Compensation * Process Value Analysis * Radical Re-structuring * Reengineering * Customer Relationship Management * Rightsizing * Service Profit Chain * Strategic Benchmarking * Team Based Management * Time-based Competition * Total Employee Involvement * Total Quality Management * Economic Value Added * Value Chain * Virtual Corporation * Zero-based Budgeting * Zero Defections *
Change fatigue
BT intranet beginnings
§ BT’s business case forecast average £57.5m/yr § The actual was £305m benefits for 1995/6 § Since early 1995 there have been billions of savings § But… much improved customer satisfaction § And… European Quality Award § And… Completely different ways of doing business § And… Organisational Learning § And… Flexible working § And… The “nervous system” § And… Understanding (benefits)
Our corporate nervous system
KM principles:
no matter who you are or where you are,
you can easily access the people, information and
services you need to do your job
Right time, right place,
right information.
Culture, policy and values.
Human design & Business benefits
A selfish view of KM in BT
§ Really a personal view of KM in BT § ICT (IP) enabled knowledge management
§ BT.com § Intranet Home § BT Today § Teamconnect Directory § eGatekeeper § Intellact
BT.com KM inside & out
§ www.bt.com
§ 1.3m registered users, doubled in 6 months
§ 15,000 logins/day
§ the “killer apps”
§ e-Billing (83k per day)
§ Friends & Family
§ directory enquiries
§ increasingly personalised
Disruptive Innovation
Applying new or novel technologies through new or novel ways of organisation.
“enable a larger population of less skilled or less wealthy individuals to do things once reserved for
specialists.”
(Prof’ Clayton Christensen HBS)
Disruptive Innovation
§ Usually very simple technology § Usually cheaper § Usually of lower performance/functionality § Is almost always disregarded by mainstream § It challenges existing wisdom & models § It creates, enlarges or makes more accessible markets
§ It makes what BT’s done cheap & easy!!
Summary
§ BT is big and complex § KM was and is at the heart of transformation § We started small § Growth brought some chaos § We have a long way to go § Pull not push § But are recognised globally for what’s been done § Disruption means size doesn’t matter
Andrew Mitchell Chief Innovation Officer BT stepchange.gov [email protected] 020 7778 4080
Thank you
The role of ICT in delivering a low carbon economy.
1. InformaLcs & Computer Science as an interdisciplinary approach to understanding climate change. InformaLon & CommunicaLon products and services as enabling technologies in the transiLon to a low carbon economy. Reducing the carbon footprint of the ICT industry itself (about 3% of global emissions, but growing rapidly).
2. Reducing the carbon footprint of ICT’s used by consumers and organisaLons. 3. ICT as enabling technology for “dematerialisaLon” and “arLficial intelligence*” of:
– Land Use, Waste and Water, Renewable Energy, Built Environment & Sustainable Transport, Carbon AccounLng & Finance, OrganisaLon and OperaLons Management.
* ArLficial Intelligence (i.e. what we mean by “smart” grid / ciLes / buildings / logisLcs Sub themes:
– Green ICT for CiBes & Built Environment – Green ICT for People – Green ICT for OrganisaBons
• Next GeneraLon Internet • MulL-‐modal InteracLon • Modelling and AbstracLon • Complex Systems Engineering SICSA as an interdisciplinary group also brings deep relaLonships with sociologists, economists, designers, other physical sciences and biotech.
ScoSsh InformaBcs & Computer Science Alliance hlp://www.sicsa.ac.uk/themes
The role of ICT in delivering a low carbon economy.
SICSA potenLal applicaLons in renewables: Next GeneraBon Internet Smart Grids, connecLng and opLmising all renewable sources. The network layer between power distribuLon and the Smart City / Built Environment. LogisLcs and supply chain (enabling technology). Modelling and AbstracBon, MulBmodal InteracBon SimulaLon and surveying. ForecasLng wind, wave and Ldal capacity. Modelling and analysing renewable device performance, dynamics, structural load and faLgue. Complex Systems Engineering Scotland’s new power grid is one large-‐scale complex system made up of numerous complex sub-‐systems. For example a single wind farm or a fuel-‐cell device are complex systems themselves. LogisLcs and supply chain (management science, socio-‐technical).
Scenario One Scenario Two Employees in BT
0
50,000
100,000
150,000
200,000
250,000
300,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
No. o
f Em
ploy
ees
BT Group Turnover (£m)
0
5,00010,000
15,00020,000
25,00030,000
35,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Year
£m
BT transformaBon story: 1. Doing more with less. 2. ICT enabled dramaLc change. 3. Does not mean mass unemployment! 4. In 1992 the driver was corporate survival (not emissions!). 5. In 2012 the same can apply to reducing carbon emissions.
Andrew Mitchell Business Manager Edinburgh Centre for Carbon Innovation 15 South College Street, Edinburgh, EH8 9AA Email: [email protected] Web: www.edinburghcentre.org Twitter: @EdCentreCC
Thank you!