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Green IT Strategies and Applications

Using Environmental Intelligence

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Green IT Strategies and Applications

Bhuvan Unhelkar

Using Environmental Intelligence

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vii

Contents

Foreword ............................................................................................................................xix Preface ................................................................................................................................xxi Readers ............................................................................................................................ xxiii Mapping to a Workshop .................................................................................................... xxv Contents and Chapter Summaries ..................................................................................xxvii Language ..........................................................................................................................xxix Acknowledgments ............................................................................................................xxxi Endorsements (In Praise of Green IT Strategies and Applications) ..............................xxxiii Author ............................................................................................................................. xxxv

PART A STRATEGIES AND APPLICATIONS

1 Green IT Fundamentals: Business, IT, and the Environment ......................................3 K ey Points .......................................................................................................................... 3 I ntroduction ....................................................................................................................... 3 Ā e Environment Today ..................................................................................................... 6 Information Technology and Environment ........................................................................ 9 Business and Environment ................................................................................................14 Green Enterprise Characteristics .......................................................................................15 G reen Vision .....................................................................................................................17 Green Strategic Points .......................................................................................................18 G reen Value ......................................................................................................................18 Green IT Opportunity ......................................................................................................19 Challenges of a Carbon Economy .................................................................................... 22 E nvironmental Intelligence ...............................................................................................25 Bu siness Intelligence .........................................................................................................25 Application in Environmental Domain ............................................................................ 26 Envisioning the Green Future .......................................................................................... 29 D iscussion Points ............................................................................................................. 30 R eferences ........................................................................................................................ 30

viii ◾ Contents

2 Green IT Strategies: Drivers, Dimensions, and Goals ................................................35 K ey Points .........................................................................................................................35 Introducing Green Strategies ............................................................................................35 Green Strategic Mindset ................................................................................................... 37 Philosophical Considerations in Green IT Strategy ......................................................... 39 Green IT Strategies: Range of Impact ...............................................................................41 Green Strategic Alignment ............................................................................................... 46

Proactive Green Strategies ......................................................................................47 Reactive Green Strategies .......................................................................................47

Green IT Strategies Mix ....................................................................................................47 Green IT Drivers .............................................................................................................. 48

Costs (Energy, Operational) ................................................................................. 50 Regulatory and Legal ............................................................................................ 50 Sociocultural and Political .....................................................................................52 Enlightened Self-Interest .......................................................................................53 Responsible Business Ecosystem ........................................................................... 54 New Market Opportunities .................................................................................. 56

Green IT Business Dimensions (Factors) .......................................................................... 56 E conomy ............................................................................................................... 56 T echnologies ......................................................................................................... 58 P rocesses ................................................................................................................59 P eople ................................................................................................................... 60

Developing an ERBS ........................................................................................................61 Wide-Ranging Considerations in ERBS ........................................................................... 63 Steps in Developing an ERBS .......................................................................................... 64

Green Business Objectives .....................................................................................65 S trategy Descriptions ............................................................................................ 66 P olicy-Based Conditions ........................................................................................67 R esource Requirements ......................................................................................... 68 T ransformation Plan/Timelines ............................................................................ 68 Iterations and Risks .............................................................................................. 68

KPIs in Green Strategies ................................................................................................... 69 Additional KPI Examples ..................................................................................... 72

D iscussion Points ............................................................................................................. 72 A ction Points .................................................................................................................... 73 R eferences ........................................................................................................................ 73

3 Environmentally Responsible Business: Policies, Practices, and Metrics ..................77 K ey Points ........................................................................................................................ 77 I ntroduction .................................................................................................................... 78 Policies and Practices in ERBS ..........................................................................................81 Lean Impact on Green .................................................................................................... 83 Environmental Areas Covered ...........................................................................................85

Breadth of Environmental Policies (Areas Covered) ...............................................85 Depth of Environmental Policies (Intensity of Coverage) ..................................... 87 Length of Environmental Policies (Duration of Coverage) ................................... 87

Contents ◾ ix

Green Values in Practice ................................................................................................... 89 Green Practice: A Balancing Act ..................................................................................... 90 Mobility and Environment .............................................................................................. 92

Advantages to Environment .................................................................................. 93 Challenges to Environment .................................................................................. 93

Relating Environmental Business Policies to Goals .......................................................... 94 Renewable Energy Resources ........................................................................................... 96 Mind Map for the Role of a Chief Green Offi cer (CGO) ................................................. 98 E nvironmental Practices ................................................................................................... 99 Green IT Metrics and Measurements ..............................................................................101

Carbon Metrics Coverage ....................................................................................103 Green IT Measurement Challenges .....................................................................106 Framework for Green IT Metrics .........................................................................107 Measuring the Carbon Footprint of Your Organization.......................................109 Measuring Operational Costs in Your Organization ............................................ 110

Green Balanced Scorecard ............................................................................................... 110 Green IT Readiness and CMM .......................................................................................113 Context Sensitivity and Automation in Green IT Measures ............................................ 115 D iscussion Points ............................................................................................................ 117 A ction Points ................................................................................................................... 118 R eferences ....................................................................................................................... 118

4 Green Assets: Buildings, Data Centers, Networks, and Devices ..............................121 K ey Points .......................................................................................................................121 I ntroduction ................................................................................................................... 122 G reen Assets ................................................................................................................... 124 Building and Facility Management ............................................................................... 126 Green IT Hardware ........................................................................................................ 127 Green Data Centers ....................................................................................................... 130 Data Center Building—Design, Layout, and Location ...................................................132 Data Center ICT Equipment—Server Strategies .............................................................133 Data Strategy and the Carbon Emitting Bit ....................................................................135 Data Servers Optimization ............................................................................................. 136 Data Servers Virtualization ............................................................................................137 Physical Data Server Organization and Cooling ............................................................139 Cloud Computing and Data Centers ..............................................................................140 Networking and Communications Infrastructure ...........................................................141 E nd-User Devices ............................................................................................................143 Smart Meters in Real Time .............................................................................................143 Managing Devices for Central Green Services ................................................................146 Devices and Organizational Boundaries for Measurements ............................................147 Mobile Devices and Sustainability ..................................................................................148 D iscussion Points ............................................................................................................ 151 A ction Points ................................................................................................................... 151 R eferences ....................................................................................................................... 151

x ◾ Contents

5 Green Business Process Management: Modeling, Optimization, and Collaboration ..........................................................................................................153

K ey Points ....................................................................................................................... 153 I ntroduction ....................................................................................................................154 Green Business Process Management ..............................................................................156 G reen Reengineering ....................................................................................................... 157 Green Processes: Individual, Organizational, and Collaborative ..................................... 159 Green BPM and Standards .............................................................................................. 161 Green Business Analysis .................................................................................................164 Green Requirements Modeling .......................................................................................165 Green IT Governance .....................................................................................................167 Green Business Processes—Incremental Complexity ......................................................169 Green Business Applications ..........................................................................................171 Modeling Green Business Processes (UML, BPMN) ......................................................171 Quality of Service (QoS) and Green Business Processes ..................................................172 Documenting Process Goals ...........................................................................................173 Achieving Green BPM ....................................................................................................173 Green Mobile Business Processes .................................................................................... 174

Environmental–Economic Mobile Use ................................................................176 Environmental–Technical Mobile Use .................................................................177 Environmental–Process Mobile Use ....................................................................177 Environmental–Social Mobile Use ......................................................................179

Example—Digital Library GPR ......................................................................................179 C onclusion ......................................................................................................................181 D iscussion Points ............................................................................................................181 A ction Points ...................................................................................................................182 R eferences .......................................................................................................................182

6 Green Enterprise Architecture, Environmental Intelligence, and Green Supply Chains ......................................................................................... 185

K ey Points .......................................................................................................................185 I ntroduction ...................................................................................................................186 Green Enterprise Architecture ........................................................................................187 Views of Green Enterprise Architecture ..........................................................................189 Green Enterprise Architecture—Categories of Requirements .........................................190 Green IT and Organizational Systems ............................................................................192

O rganizational Systems .......................................................................................192 E xternal Systems ..................................................................................................193 I nfrastructure ......................................................................................................193

Green Solutions Architecture .........................................................................................193 Evolving Green Systems Architecture ..............................................................................195 Aspects of Green Solutions Architecture ........................................................................196

C loud Computing ...............................................................................................197 V irtualization ......................................................................................................198 S mart Networks ...................................................................................................198 Real-Time Decision Making ................................................................................198

Contents ◾ xi

A lignment ............................................................................................................199 Op timization .......................................................................................................199 I ntegration ...........................................................................................................199

Contents and Integration with Service-Oriented Architecture ........................................199 Green Supply Chain Management ................................................................................ 202 Mobility in Green Supply Chain Management .............................................................. 204 Building Environmental Criteria into Supplier Contract Conditions ............................. 204 Green Portals in Green Enterprise Architecture ............................................................ 205 Business Intelligence and Green IT ................................................................................ 206 Ā e Environmental Intelligence Domain ...................................................................... 208 Environmental Intelligence Systems’ Evolving Complexity ............................................ 209 Communication Channels in Environmental Intelligence ............................................. 211 Environmental Intelligence Implementation with Web Services ......................................212 Environmental Intelligence with Mobility ......................................................................213 An Example of Green Enterprise Architecture ................................................................ 215 D iscussion Points ............................................................................................................216 A ction Points ...................................................................................................................217 R eferences .......................................................................................................................217

7 Green Information Systems: Design and Development Models ............................... 219 K ey Points ....................................................................................................................... 219 I ntroduction .................................................................................................................... 219 Describing a GIS ............................................................................................................ 220

Phases in a GIS Development and Deployment .................................................. 220 Features of GIS ....................................................................................................221 Modeling and Architecture GIS—Requirements, Design, Implementation,

and Testing....................................................................................................... 222 GIS Requirements .......................................................................................................... 223

Green Organizational Portal ............................................................................... 224 Regulatory Standards Portal ............................................................................... 224 S takeholders/Actors ............................................................................................. 225 Dat abases ............................................................................................................ 226

Package Diagrams and System Scope ............................................................................. 226 Use Case Diagram for GOP ........................................................................................... 227

Use Cases for “Green Organizational Portal” .....................................................233 Use Cases for “Emissions Benchmark Maintenance Use Case Diagram” ............ 236

Class Diagram for GOP ................................................................................................. 238 Sequence Diagram for “Emissions Check” ..................................................................... 240 Class Diagram for RSP ...................................................................................................241 Sequence Diagram for “Setting Standard Emissions Value” ............................................241 State Machine Diagrams for “Emission Report” and “Emission Standard Value”

Objects ............................................................................................................................241 Implementation Diagrams for GIS ..................................................................................241 GIS —Technical Requirements ........................................................................................245 D iscussion Points ........................................................................................................... 246 A ction Points .................................................................................................................. 246

xii ◾ Contents

8 Sociocultural Aspects of Green IT ...........................................................................247 K ey Points .......................................................................................................................247 I ntroduction ................................................................................................................... 248 Green IT’s Social Impact .................................................................................................250 L earning Organization ....................................................................................................250 Green Social Stakeholders ...............................................................................................251 Role-Based View of Green IT ..........................................................................................253 Green User Practices .......................................................................................................256 Attitude and Subjectivity in Green IT .............................................................................257 Green IT Ethics and Code of Conduct ...........................................................................259 Privacy and Security of Green Information .....................................................................261 G reen Washing .............................................................................................................. 262 Communications in Green Transformation Projects ...................................................... 262 Green IT Project—Channels of Communication .......................................................... 263 Green HR and Changing Organizational Structures ..................................................... 264 Green-Collar Workers: Roles and Skill Sets ....................................................................267 Skills Framework for Information Age (SFIA) and Green HR ........................................267 SFIA Skill Set and Green Roles ...................................................................................... 269 Green Virtual Communities ...........................................................................................271 D iscussion Points ........................................................................................................... 272 A ction Points .................................................................................................................. 272 R eferences ...................................................................................................................... 272

9 Green Enterprise Transformation Roadmap ............................................................275 K ey Points .......................................................................................................................275 I ntroduction ....................................................................................................................276 Green Enterprise Transformation ................................................................................... 277 In fl uence of Economic Dimension on GET ................................................................... 279 In fl uence of Technical Dimension on GET .................................................................... 279 In fl uence of Process Dimension on GET ....................................................................... 280 In fl uence of Social Dimension on GET ......................................................................... 280 Transforming the Individual, Organizational, and Collaborative Processes ....................281 A Green ICT Framework ............................................................................................... 283 E quipment Lifecycle ....................................................................................................... 284 P rocurement ................................................................................................................... 284 Recycle and Reuse .......................................................................................................... 285 Disposal of ICT Systems ................................................................................................ 285 E nd-User Computing ..................................................................................................... 285 Enterprise and Data Center ............................................................................................ 286 Data Center ICT Equipment ......................................................................................... 287 Data Center Environmentals .......................................................................................... 287 Networking and Communications ................................................................................. 287 Outsourcing and Cloud Computing .............................................................................. 288 S oftware Architecture .................................................................................................... 288 IT for Enterprise ............................................................................................................ 288 Governance and Compliance ......................................................................................... 289 Teleworking and Collaboration ...................................................................................... 289

Contents ◾ xiii

Business Process Management ........................................................................................ 289 Bu siness Applications ..................................................................................................... 290 Carbon Emissions Management ..................................................................................... 290 A ttitude .......................................................................................................................... 290 P olicy ..............................................................................................................................291 P ractice ...........................................................................................................................291 T echnology......................................................................................................................291 M etrics ........................................................................................................................... 292 Ā e Green Transformation Process ................................................................................. 292 Organizational Focus Areas for GET ..............................................................................293 Co nfi guring a GET Road Map ...................................................................................... 295 GET Program: Roles and Deliverables ........................................................................... 295 Setting Up a Business Transformation Offi ce (BTO) ..................................................... 296 Forming Transformation Work Areas ............................................................................ 297 Green IT Project Roles ................................................................................................... 297

Green Enterprise Transformation Champion (GTC) .......................................... 298 Business Architect and Variations ....................................................................... 298 Technical Architect and Variations ..................................................................... 299 Bu siness Partners ................................................................................................ 299 Green IT Auditors .............................................................................................. 300 E nd-Users ........................................................................................................... 300 I T Managers ....................................................................................................... 300 Bu siness Managers .............................................................................................. 300 I T Governance .................................................................................................... 300 C orporate Governance .........................................................................................301

Green IT Transformation—Deliverables .........................................................................301 GET: Diagnosis Phase .................................................................................................... 302

C hallenges .......................................................................................................... 303 C hallenges .......................................................................................................... 303 C hallenges .......................................................................................................... 306 C hallenges .......................................................................................................... 306

GET: Planning and Scoping Phase ................................................................................. 309 P ilot Project .....................................................................................................................310 Enterprise Lifecycle Plan .................................................................................................310

I nput ....................................................................................................................312 Ou tput .................................................................................................................312 C hallenges ...........................................................................................................312

Planning for End-User Effi ciencies ..................................................................................312 De liverables ..................................................................................................................... 314

I nput .................................................................................................................... 314 Ou tput ................................................................................................................. 314 C hallenges ........................................................................................................... 314

Enterprise IT Data Center Effi ciencies ............................................................................316 De liverables .....................................................................................................................316

I nput ....................................................................................................................316 Ou tput .................................................................................................................316 C hallenges ........................................................................................................... 317

xiv ◾ Contents

Planning for IT as a Low-Carbon Enabler for the Enterprise .......................................... 317 De liverables ..................................................................................................................... 319

I nput .................................................................................................................... 319 Ou tput ................................................................................................................. 319 C hallenges ........................................................................................................... 319

GET: Enactment Phase ................................................................................................... 319 T echnology-Driven Enactment ...................................................................................... 320 Customer Relationships Management .............................................................................321 Supply Change Management (SCM) ..............................................................................321 Human Resource and Payroll Systems ............................................................................321 Business Partner’s Systems ...............................................................................................321

I ntegration .......................................................................................................... 322 Dat a Migration ................................................................................................... 322

Business Process–Driven Enactment .............................................................................. 322 GET: Review and Measure Phase ................................................................................... 323 D iscussion Points ........................................................................................................... 323 A ction Points ...................................................................................................................324 R eferences ......................................................................................................................325

10 Green Compliance: Protocols, Standards, and Audits .............................................327 K ey Points .......................................................................................................................327 I ntroduction ....................................................................................................................327 Protocols and Standards ................................................................................................. 328

United Nations Framework Convention on Climate Change (UNFCCC, Rio) ............................................................................................. 329

K yoto Protocol .....................................................................................................329 Greenhouse Gas Protocol .................................................................................... 330 C openhagen ....................................................................................................... 330

Ā e ISO 14000:2004 Family of STANDARDS .............................................................331 ISO 14001 ...........................................................................................................332

G overnment Initiatives ....................................................................................................332 C ompelling Regulation ........................................................................................332

USA Energy Star—1992 ................................................................................................ 334 EPEAT—Electronic Product Environmental Assessment Tool ....................................... 334 EU RoHS—Restriction of Hazardous Substances Regulations ...........................................335 EU WEEE—Waste Electrical and Electronic Equipment Regulations............................335 Industry and Vendor Initiatives ......................................................................................335 Green Grid—2007 ........................................................................................................ 336 CSCI—Climate Savers Computing Initiative ............................................................... 336 IT Vendor Initiatives ...................................................................................................... 336 Global Reporting Initiative ............................................................................................ 336 Green IT Audits ..............................................................................................................337 A udit Types .....................................................................................................................339 Green IT Audits—Approach, Maturity, and Comparison.............................................. 342 Undertaking Green IT Audits ........................................................................................ 342 Audit and Use of Carbon Emissions Management Software .......................................... 343 C omparative Audits ....................................................................................................... 344

Contents ◾ xv

C onclusion ..................................................................................................................... 344 D iscussion Points ............................................................................................................345 A ction Points ...................................................................................................................345 R eferences ...................................................................................................................... 346

11 Emergent Carbon Issues: Technologies and Future .................................................347 K ey Points ...................................................................................................................... 347 I ntroduction ................................................................................................................... 347 Future Carbon Landscape .............................................................................................. 348 Green ICT and Technology Trends .................................................................................350 C loud Computing ...........................................................................................................350 Sa aS ................................................................................................................................353 N anotechnologies ............................................................................................................353 Qu antum/Trinary Computing ........................................................................................354 New Renewable Energies ................................................................................................354 ISO—New and Upgraded Standards ..............................................................................354 Security and Legal ...........................................................................................................354 E codesign ........................................................................................................................355 B iomimicry .....................................................................................................................355 Green ICT—Business and Economic Trends ..................................................................356 Dichotomy of Developing Economies ............................................................................358 Collaborative Environmental Intelligence .......................................................................358 D iscussion Points ............................................................................................................361 R eferences .......................................................................................................................361

PART B CASE STUDIES

12 Case Study in Applying Green IT Strategies and Applications to a Hospital .............................................................................................................365

K ey Points .......................................................................................................................365 G oodMead Hospital .......................................................................................................365 Preliminary Green Investigation .................................................................................... 366 Green Business Objectives ...............................................................................................367 SWOT of GoodMead Hospital ...................................................................................... 368

S trengths ............................................................................................................ 368 W eaknesses ......................................................................................................... 369 Op portunities ......................................................................................................370 Ā re ats .................................................................................................................370

Strategic Concerns of Management .................................................................................371 Steps in Developing a Hospital’s ERBS ...........................................................................372 Green Transformational Elements ...................................................................................373 Ā e Green Transformation Project ..................................................................................374 Social Dimension in Hospital GET ................................................................................ 377 Technology Changes in Hospital ................................................................................... 377 Applying Mobile Technologies in GET ...........................................................................378

Do ctors ................................................................................................................379 N urses ..................................................................................................................379

xvi ◾ Contents

P atients ................................................................................................................379 Suppliers (e.g., Pharmacies) ..................................................................................379

Lessons Learned in Implementing Green IT Strategies .................................................. 380

13 Case Study in Applying Green IT Strategies to the Packaging Industry .................381 K ey Points .......................................................................................................................381 A uPack Scenario .............................................................................................................381 AuPack’s Green IT Strategies ......................................................................................... 383 SWOT of AuPack in Green Context ...............................................................................385

Green IT Strengths ..............................................................................................385 Green IT Weaknesses ......................................................................................... 386 Green IT Opportunities ..................................................................................... 386 Green IT Ā re ats ................................................................................................ 386

Diagnosis in AuPack ...................................................................................................... 387 Planning for GET .......................................................................................................... 388 Economic Dimension in AuPack .................................................................................... 389 Technical Dimension in AuPack .................................................................................... 390 Process Dimension in AuPack .........................................................................................391 Social Dimension in AuPack ...........................................................................................391 Enactment of GET for AuPack .......................................................................................391 Review of GET for AuPack .............................................................................................393 Lessons Learned in GET for AuPack...............................................................................393

14 Case Study in Applying Green IT Strategies and Applications to the Telecom Sector ...............................................................................................395

K ey Points .......................................................................................................................395 ZeeTel Telecom Scenario .................................................................................................395 Strategic Approach to Green ICT ................................................................................... 398 SWOT of ZeeTel—Environmental Context .................................................................. 400

S trengths ............................................................................................................ 400 W eaknesses ..........................................................................................................401 Op portunities ......................................................................................................401 Ā re ats .................................................................................................................401

Motivators and Dimensions ........................................................................................... 402 Diagnosing the “As Is” State ........................................................................................... 402 P lanning ......................................................................................................................... 404 Enterprise Data Center Transformation Plan ................................................................. 405 Enacting GET for ZeeTel ............................................................................................... 406 Data Center Changes in GET ........................................................................................ 407 Next-Generation Networks in GET ............................................................................... 407 E quipment Lifecycle ....................................................................................................... 407 Attitude and Training .................................................................................................... 408 Review and Measure ...................................................................................................... 408 C onclusions .................................................................................................................... 408 R eferences ...................................................................................................................... 408

Contents ◾ xvii

Appendix A Ā e Environmentally Responsible Business Strategies (ERBS) Research Project Survey ............................................................................................ 409

Appendix B Case Study Scenarios for Trial Runs .......................................................... 419

Appendix C Green IT Measurements from a CEMS ......................................................423 Abbreviations ....................................................................................................................427 Green Glossary ..................................................................................................................429 Index .................................................................................................................................433

xix

Foreword

Green IT means many things to many people, but most defi nitions boil down to two key aspects: internal and external. Ā e fi rst of these refers to the lowering of the energy consumption and car- bon footprint of the IT process itself, and the second refers to t he use of IT to l ower the energy consumption and carbon footprint of the whole organization. Ā is book examines both.

Not so lo ng ago, sustainability was a f ringe issue. Environmentalism was the preserve of “greenies” or “techies.” Now these issues are mainstream.

Green IT is a natural result of the world’s increasing interest in all things sustainable. Ā e term did not exist 5 years ago—now it is a n essential part of any discussion about the role of IT in the modern world. IT is p ervasive in business and society, and it is c losely linked with sustainability.

Sustainability is , u ltimately, ab out ensu ring t hat we t ake out no more t han wh at we pu t into a closed system—an organization, a society, or a planet. How do we ensure this? We need to me asure i nputs a nd outputs. How do we me asure t hem? I nvariably, it is I T s ystems t hat provide t he meter ing capabilities. I T is a lso used as t he data repository a nd as t he reporting tool. IT systems are intrinsic to the measurement and management of sustainability on both a local scale and a global scale.

Internal Gre en I T is b ecoming a n i mportant is sue for ma ny re asons. D ata center p ower bills are soaring as electricity prices go up, and increased processing power means hotter pro- cessors, which means more cooling. At the same time, tough economic circumstances are put- ting a greater focus on running costs, and power consumption as a component of these costs is becoming more visible. Environmental reporting requirements are becoming more stringent, and there is an increased awareness across business and society of the unsustainability of many current consumption patterns.

Rising ele ctricity cost s me an t hat m ore a nd m ore I T depa rtments a re i ncluding p ower costs in their operating budgets as metering capabilities and measurement techniques improve. Power consumption will become a very signifi cant component of the cost of enterprise comput- ing in the next few years. Even if organizations are unable to directly measure their IT power consumption, they are often aware that it is too high and should be lowered if possible.

Ā ere are many well-documented ways of reducing IT’s power consumption, such as server and storage virtualization and consolidation, “Green PCs,” thin clients, and so on. Internal Green IT is important. By various measures, IT is responsible for 2%–3% of the world’s carbon emissions, which puts it on par with the airline industry. In some IT-intensive industries, such as banking, it can constitute well over half of all electricity consumed. Lowering or reducing the growth rate

xx ◾ Foreword

of IT’s energy consumption is a worthwhile activity. Ā us, reduction in IT’s energy consumption would have a signifi cant eff ect on the big picture.

Ā e d isciplines, te chnologies, a nd m ethodologies o f i nternal G reen I T a re re asonably we ll known, b ut n ot so w idely d iscussed i s I T’s en abling e ff ect—its a bility to re duce a n o rganiza- tion’s carbon footprint by facilitating more effi cient a nd l ess c arbon-intensive wo rk p ractices— teleconferencing instead of fl ying or commuting, improved supply chain management, the use of IT systems to rep lace carbon-intensive applications, IT-enabled energy reduction systems, smart metering, and so on. Ā at is what we might call external Green IT.

IT has always been an enabling technology. Computers by themselves are nothing more than pieces of metal and plastic, and software nothing more than magnetized dust on a hard disk. IT systems exist to help individuals and organizations perform better—they are a means to a n end. Just a s I T c an b ring g reater e ffi ciencies to business processes, automate direct marketing cam- paigns, or improve the manufacturing effi ciencies, so can it help reduce an organization’s carbon footprint—both within and outside the IT department.

Technology, a nd e specially I T, i s t he ke y to a m ore su stainable f uture. F rom sm art m eter- ing i n t he home to i nternational c arbon t rading s ystems, it i s I T-based s ystems t hat make it a ll work. IT-based systems are used to design renewable energy platforms and run waste management facilities.

Ā is book addresses all these issues. Unhelkar takes a holistic and pragmatic view of sustain- ability and Green IT, examining every aspect of Green IT and the way it can be implemented. Ā is refl ects the passion for and knowledge of these issues by the author. Unhelkar is particularly good at mixing the theoretical with the practical: discussing the ideas and demonstrating their use. Ā at is this book’s great strength.

Ā is b ook a lso d iscusses t he c orporate re sponsibilities o f o rganizations i n a m arket-driven economy. Increase in profi ts, reduction in costs, application of innovations in business, adherence to g overnance s tandards, re gulatory m etrics a nd m easurements, p rocess m anagement, en viron- mental i ntelligence, a nd t he so ciocultural a spects o f a b usiness a re a ll n eatly i ntertwined w ith Green IT issues. Green IT is not treated as a s eparate silo of technology; this book shows Green IT as an integral part of reducing the environmental impact of all business activities. It looks at the facilities, processes, and people that can all be brought together to reduce the overall impact of business activities on the environment.

Ā e bottom line in being more sustainable is greater effi ciency. It is no coincidence that this is also the bottom line in success in business. Ā e two go hand-in-hand. And more often than not, it is the eff ective use of IT that is the key to success. Ā at is what this book will help you do.

Graeme Philipson Wollongong, Australia

Graeme Philipson is one of the world’s leading Green IT consultants. His company Connection Research developed the Green IT Framework, a s ystem for identifying the diff erent components of Green IT, and the Green IT Readiness Index, a benchmarking methodology for quantifying the maturity of Green IT within an organization. He was the founding editor of MIS Magazine and is a former research director with consultancy Gartner.

xxi

Preface

Profi ts versus carbon, customer services versus carbon, competition versus carbon, regulations ver- sus carbon. For too long, the carbon reduction debate has pitched good environmental outcomes against good b usiness o utcomes. Yet t he r eality, h owever, is t hat be st b usiness p ractice d elivers both good business outcomes and environmental benefi ts. Many CEOs are either looking to show leadership or leading in carbon reduction because it is good for their businesses.

Ā e c arbon re duction debate i s c hanging. I n t he c ontext o f t he en vironment, t he q uestions revolve around what the strategies, policies, and objectives of a business should be. What are the green drivers a business should anticipate, and what are the motivational levers? CEOs are asking what they should measure and how they should report their attempts at green transformations to get the best business outcomes. How will enterprise architecture change when a Carbon Emissions Management Software (CEMS) tool is implemented? What are the risks a business will encounter as green strategies are developed and implemented? What are the risks to a business from a lack of environmental consciousness within the business?

Ā ese are some of the practical questions answered in this book. While respecting the contrary views w ithin t he c arbon reduction debate, t his book focuses pragmatically on t he activities a nd tasks, roles and deliverables, and metrics and measurements that enable an organization to sensibly reduce its carbon footprint because of the business benefi ts achieved through good environmental outcomes.

Ā e scope for carbon reduction is large. Ā erefore, Green IT, as discussed in this book, is not restricted to IT alone. Instead, Green IT (technology, communications, information, policies, pro- cedures, g overnance, r isk, aud it, c ompliance, s trategy, s ervice levels, p erformance m anagement, and more) is discussed in an all-encompassing manner covering a wide range of issues in environ- mental sustainability. Such an approach utilizes the resources available to a b usiness in a u nifi ed (holistic) approach toward t he environment to fo rm a re sulting environmental i ntelligence ( EI) and keep business goals closely meshed with the environmental goals. Ā is intelligence imbues the organization with a green value system that is highly relevant to the future carbon economy.

Ā e discussion in this book is an opportunity to tap into this intelligence. It is a journey of transformation, expansion, and application of the resident business intelligence in a way that will benefi t both the business and the environment. Ā is is an invaluable discussion to have in today’s business world, which is fraught with risks, regulations, and customer preferences—all impacted by environmental considerations.

Ā e application of business intelligence to enhance the environmental credentials of a business can be formalized into the concept of EI. EI can be understood as the use of the organization’s sys- tems, applications, contents, processes, architectures, and designs to t ransform the organization.

xxii ◾ Preface

Ā is b ook a lso e xamines t he a reas o f Business Transformation a nd a ssociated a spects o f Change Management in the context of the environment.

Ā e ideas expressed in this book are a judicious combination of research (as a PhD project over the past three years), the practical experiences of the author as a consultant and trainer in the area of Green IT, and the scholarly and business insights of select colleagues who see the future profi t- ability and sustainability of businesses aligned with environmental outcomes. Ā us, you will fi nd a substantial literature review, many statistical survey results, and insights gained within this book. Ā is is a highly pragmatic and practical book that is written to demonstrate the role of EI within a business, particularly environmentally responsible business strategies (ERBS).

Ā e practical aspect of this book comes from the fact that it demonstrates how ERBS can be implemented i n a n o rganization t hrough m odifi cations, u pgrades, re deployment, a nd o ptimi- zations o f e xisting s ystems a nd p rocesses, tog ether w ith s ystems a nd p rocesses t hat a re n ew to Green IT. Ā is book discusses environmental issues from multiple and varied angles. Ā es e angles include the technologies that create carbon emissions, the technologies that can be used in reduc- ing the organization’s carbon footprint, the impact of carbon emissions on business, the existing and upcoming compliance requirements by business, a nd t he role t hat business a nd society c an play i n utilizing I T i n a g reen way. Ā e sociopolitical c hallenges of environmentally re sponsible business are also discussed, together with strategies to ameliorate them.

Ā is book aims to incorporate business intelligence, as used by business systems, technolo- gies, and people, into environmental intelligence. Ā is book also provides the roadmap for green business transformation using existing business intelligence. Finally, it also provides views on the future direction of Green IT.

xxiii

Readers

Many types of readers interested in environmental issues from a business perspective will fi nd this book interesting:

(a ) Dec ision makers: Strategic decision makers in the industry who are involved in the process of improving their business operations and services to become environmentally responsible. Ā is book includes advice on measurements to back their decisions and for transformation within and from outside the business.

(b ) Te chnologists: Ā e technical leaders of the organization, including IT managers, development managers, data center directors, and network managers. Such technologists will fi nd the dis- cussions in this book, especially Chapters 3, 4, and 6, highly relevant. Of focus is the appli- cation of various strategies and techniques to optimize the use of hardware and upgrade the processes, measurements, and reporting on the organization’s environmental performance.

(c ) Dev elopers: Ā ose i nvolved i n de sign, de velopment, a nd te sting o f C arbon E missions Management Software (CEMS). Chapter 7 in this book has detailed UML-based require- ments and an initial design for such a system that is directly relevant to developers.

(d ) Trainers and Teachers: Ā is book is organized in a way that is highly conducive to industrial training and higher degree courses. Ā e discussion points, action points, and case studies are highly relevant in this regard. Ā e discussion topics can also be used for interactive discus- sions within a classroom environment.

(e ) A cademics: Ā e rapidly increasing body of researchers and academics who are exploring vari- ous w ays of i ncorporating environmental s trategies i n business. Ā e c hapters i n t his b ook are based on literature reviews that provide the scholarly background for the discussions in technologies a nd b usiness i ntelligence fo r t he en vironment. Ā e so cial, c ultural, p olitical, and legal aspects of environmental compliance will also be of interest to non-IT researchers. For academic teachers, each chapter is organized with an introduction, detailed discussion, relevant summaries, and discussion topics.

xxv

Mapping to a Workshop

Ā e book has material that can be divided into a two-day training course or workshop that can be delivered in public or as an in-house customized training, as shown in the following table.

When used in an academic course, this book forms a 13-week teaching exercise for graduate- level study, with each chapter corresponding to a lecture topic, supported by practical group work based on the case studies.

Mapping of the Chapters in This Book to a Two-Day Workshop

Day Session

Presentation and Discussion Workshop

Topic Relevant Chapters Comments

1 8:30 a.m.– 10:00 a.m.

Green IT strategies and policies

1, 2, 3 Covers drivers and dimensions of change; approach to policies, their deployment, and green metrics

10:30 a.m.– 12:00 a.m.

Green IT and data centers; devices; Green enterprise architecture

4, 6 Virtualization; smart meters; optimization; interfaces between existing systems (CRM, ERP) and new carbon systems

1:30 p.m.– 3:00 p.m

Green business process management

5 Process reengineering as applicable to Green IT

3:30 p.m.– 5:00 p.m.

A case study 12–14 (any one)

2 8:30 a.m.– 10:00 a.m.

Green enterprise transformation

9 In-depth business transformation process framework for Green IT

10:30 a.m.– 12:00 a.m.

Carbon Emissions Management Software (CEMS) design; Green HR

7, 8 UML-based models of a CEMS; rewards/motivation and structure of Green HR

1:30 p.m.– 3:00 p.m.

Green IT audits, laws, and standards

10 ISO 14001 and related standards. Audits

3:30 p.m.– 5:00 p.m.

Second case study 12–14 (any one)

xxvii

Contents and Chapter Summaries

Ā is book has 14 chapters. Ā is fi rst part of the book is made up of 11 chapters that discuss Green IT within a business a context, whereas the second part provides 3 supporting case studies. Each chapter in the fi rst part is laid out in the following form: title, keypoints, main body of the chapter, summary, a nd d iscussion topics. E ach c hapter i s i nterspersed w ith si debars a nd c oncludes w ith action points that provide step-by-step guidance on implementing the discussions. Each chapter also includes detailed referencing, a comprehensive index, meanings of acronyms, and keywords, fi gures, tables, and appendices that are invaluable for practitioners. Ā e following table provides a brief overview of each chapter.

Chapter Description

Part A —Strategies and Applications

Chapter 1 Green IT Fundamentals: Business, IT, and the Environment

Chapter 2 Green IT Strategies: Drivers, Dimensions, and Goals

Chapter 3 Environmentally Responsible Business: Policies, Practices, and Metrics

Chapter 4 Green Assets: Buildings, Data Centers, Networks, and Devices

Chapter 5 Green Business Process Management: Modeling, Optimization, and Collaboration

Chapter 6 Green Enterprise Architecture, Environmental Intelligence, and Green Supply Chains

Chapter 7 Green Information Systems: Design and Development Models

Chapter 8 Sociocultural Aspects of Green IT

Chapter 9 Green Enterprise Transformation Roadmap

Chapter 10 Green Compliance: Protocols, Standards, and Audits

Chapter 11 Emergent Carbon Issues: Technologies and Future

xxviii ◾ Contents and Chapter Summaries

Ā e following appendices provide supporting information.

Chapter Description

Part B—Case Studies

Chapter 12 Case Study in Applying Green IT Strategies and Applications to a Hospital

Chapter 13 Case Study in Applying Green IT Strategies to the Packaging Industry

Chapter 14 Case Study in Applying Green IT Strategies and Applications to the Telecom Sector

Appendix Description

Appendix A The Environmentally Responsible Business Strategies (ERBS) Research Project Survey

Appendix B Case Study Scenarios for Trial Runs

Appendix C Green IT Measurements from a CEMS

xxix

Language

Ā e author fi rmly believes in gender-neutral language. However, in order to maintain the simplic- ity of reading she and he have been u sed f reely. Terms like user and manager represent roles a nd not people. We may play more than one role at a g iven time—such as consultant, academic, and analyst. As a result, the semantics behind the theory and examples may change depending on the role you are playing, and should be kept in mind as you read this book. “We” throughout the text primarily refers to the reader and the author—you and me. Occasionally, we refers to the general business or the ICT community, depending on the context.

Critiques Critiques of this work are welcome. Ā e author will be grateful to you for your comments, feed- back, a nd cr iticisms, a s t hey su rely w ill a dd to t he overall k nowledge ava ilable on mobility a nd mobile transitions. A very big thank you to all readers and critics in advance.

Bhuvan Unhelkar

xxxi

In addition to the names above, the author is also extremely grateful to the students, colleagues, and friends at the University of Western Sydney, University of Technology Sydney, DD University (Nadiad India), Gujarat University (SVIT India), a nd Gujarat Technological University (GTU) for t heir va luable inputs, research opportunities, comments a nd criticisms, a nd practical experi- ences. My heartfelt thanks to all these wonderful people spread across the globe.

*Bharti Trivedi needs special mention for undertaking a noted PhD that provided an important backdrop to this book. Her assiduous research, meticulous reporting, and also some editorial help— all balanced with her family responsibilities—have been invaluable in the completion of this work.

Acknowledgments

Warren Adkins Akshai Aggrawal Prasanta K. Banerjea Adriana Beal Siddharth Bhargav Dave Curtis Julian Day Yogesh Deshpande William Ehmcke Abbass Ghanbary Tushar H azra R. Kinjal Anand Kuppuswami Amit Lingarchani Mohammed Maharmeh Girish Mamdapur Javed Matin Vikas Mehrunkar San Murugesan

Dale Nott Christopher Payne Graeme Philipson Amit Pradhan B. Ramesh Norbert Raymond Prashant Risbud Zahra Saeed Manan Shah Nawaz Sharif Keith Sherringham Vivek Shrinivasan Chitra Subramanium Louis Taborda Amit Tiwary Bharti Trivedi*

Sanjay Vij Mindy Wu Houman Younessi

xxxii ◾ Acknowledgments

My sp ecial t hanks a lso to G raeme P hilipson a nd W illiam E hmcke fo r t heir su pport. Ā ey are c ontributing to t he fi eld o f G reen I T a nd enterprises, pa rticularly i n t he a rea o f t he G reen IT readiness index and the Green enterprise transformation frameworks. Ā eir permission to use some of their material is highly appreciated.

Finally, thanks to my family, Sonki, Keshav, and Asha, and extended family, Chinar, Girish, and Amit. Ā is book is dedicated to a beloved person who came into my family before me and left quickly and softly, hardly making any footprints. Perhaps she loved the Earth too much to toddle (let alone tread) over it!

xxxiii

Endorsements (In Praise of Green IT Strategies and Applications)

Ā e foremost reason I would buy this book is because it does not separate and thereby alienate business e ffi ciency from carbon effi ciency. Ā at is an excellent approach to take toward carbon reduction in a market-driven economy.

Warren Adkins Sydney, Australia

Ā is book brings together the research on environmental sustainability with its prac- tice in real life. Ā e value of this book comes from this synergy of research and prac- tice. Ā e practical approaches in t his book fi nd support in t he robustness a ssociated with doctoral-level research.

Akshai Aggrawal Vice Chancellor, Gujarat Technological University India;

and Associate Professor and Interim Director, School of Computer Science

University of Windsor, Canada

Unhelkar has been on the panel of judges for the Consensus GreenTech Awards since their i nception t wo ye ars a go. He h as a lso b een a j udge of t he C onsensus S oftware Awards for nine years. His pa ssion for Green IT a nd environmental sustainability is well known—and is refl ected in the pages of this book. Ā is is a must-have book for anyone associated with eff orts at re ducing c arbon em issions a nd u nderstanding t he key issues aff ecting the future of our planet.

Julian Day MACS MAICD, Founder and CEO,

Consensus Group; Past Chair QESP (Quantitative Enterprise Software Performance) Australia

xxxiv ◾ Endorsements (In Praise of GISA)

Ā e new e conomy i s t he g reen e conomy w here c ost a nd c arbon s avings a re u nifi ed. My own experience in leading and promoting the development of an enterprise-class energy consumption monitoring and environmental impact analysis platform has con- vinced me that management of carbon footprint is an integral part of business—not an add on. Precisely the theme that comes out again and again through the chapters of this excellent book on Green IT strategies authored by Dr. Unhelkar.

Ramin Marzbani, AMSRS, FMA, EPTS Director, Event Zero Pty Limited (Creators of Greentrac)

San Murugesan Professor of Information Systems and IT Management

Multimedia University, Malaysia

For too long, the carbon emissions debate has pitched good environmental outcomes against good business outcomes when, in reality, the two are synonymous. It is refresh- ing to see a business-focused pragmatic and practical approach to delivering business outcomes through good environmental practice.

Keith Sherringham Independent business consultant

Author of Cookbook for Shareholder Value and Market Dominance Sydney, Australia

Ā is book e xpresses very well t he ba sic idea t hat c arbon e ffi ciency is not a n isolated activity but, rather, implicit in running a lean and effi cient business. Ā e discussions on c arbon e ffi ciency of Green IT in this book span almost all the dimensions of an enterprise—strategies a nd p olicies, a rchitecture a nd de sign, so cial [ and] l egal s tan- dards, a nd aud its. A m ust read for a ny business emba rking on t he journey of Green enterprise transformation.

Aditya Ghose Professor, Director of Decision Systems Lab

School of Computer Science and Software Engineering University of Wollongong, Australia

xxxv

Author

Dr. Bhuvan Unhelkar (BE, MDBA, MSc, PhD; FACS) has more than t wo decades of strategic as well as hands-on professional experience in the information and communication technologies (ICT) industry. As a founder of MethodScience.com, he has notable practical consulting and training exper- tise in business analysis (use cases, BPMN), software engineering (object modeling, Agile processes and quality), Green IT (environment), enterprise architecture (including SOA), project management, collaborative web services, and mobile business. His domain experience includes banking, fi nancial, insurance, government, as well as telecommunication organizations, wherein he has created indus- try-specifi c process m aps, quality strategies, a nd business t ransformation approaches. For t he pa st few years, Dr. Unhelkar has been actively involved in researching Green IT and the environment— and its application in practice. He has supervised a PhD in the area of Environmentally Responsible Business Strategies (by B. Trivedi) and also set up and delivered a two-day training course approved by the Australian Computer Society titled “Green IT Design and Implementation” (delivered around Australia through Connection Research/Envirability). He is a w inner of the Consensus IT profes- sional award and the IT writer award under the “best author” category.

Apart f rom au thoring t his b ook, D r. U nhelkar h as p ublished/presented t he fo llowing i n relation to Green IT:

Trivedi, B., a nd Unhelkar, B. ( 2009), Extending a nd Applying Web2.0 a nd beyond for envi- ronmental Intelligence, Handbook in Research on Web 2.0, 3.0 and x.0: Technologies, Business

xxxvi ◾ Author

and S ocial Ap plications ( Edited b y Sa n M urugesan), Pub lished b y I nformation S cience Reference, USA, chapter no 43.

Trivedi, B. , a nd U nhelkar, B. ( 2009), S emantic I ntegration o f E nvironmental Web S ervices in an Organization, Selected in ICECS 2009 Conference held at Dubai 28th to 30th Dec 2009, to be published in IEEE Computer Society Journal.

Unhelkar, B., editor, the Handbook of Research in Green ICT: Technological, Methodological and Social P erspectives, IGI Gl obal, H ershey, PA, U SA. E dited. I n p ress (close to 5 0 c hapters contributed globally).

Unhelkar, B. , Cu tter B enchmark R eview ( CBR) ( 2009), Cre ating a nd A pplying G reen I T Metrics and Measurement in Practice, Green IT Metrics and Measurement: Ā e Complex Side of Environmental Responsibility, 9(10): 10 –17.

Unhelkar, B. , a nd T rivedi, B. ( 2009) “ Managing E nvironmental C ompliance: A T echno- Business P erspective,” SCIT ( Symbiosis C entre for I nformation Technology) J ournal, ISSN 0974–5076, Sep, 2009, paper ID: JSCIT09_015.

Unhelkar, B., and Trivedi, B. (2009) “Merging Web Services with 3G IP Multimedia systems for providing Solutions in Managing Environmental Compliance by Businesses,” Proceedings of t he Ā ird I nternational C onference on I nternet T echnologies an d Ap plications (I nternet Technologies and Applications, ITA 09), 8–11 Sep, 2009, Wrexham, North Wales, UK.

Unhelkar, B. a nd T rivedi, B. ( 2009), “ Role o f m obile te chnologies i n a n E nvironmentally Responsible Bu siness St rategy,” i n Handbook of Research in Mobile Business: Technical, Methodological and S ocial P erspectives, 2n d E dition (Edited b y B. U nhelkar), I GI Gl obal Publication, Hershey, PA, USA.

Unhelkar, B., a nd Dickens, A . (2008), L essons i n i mplementing “Green” Bu siness Strategies with ICT, Cutter IT Journal, Vol. 21, No. 2, February 2008, Cutter Consortium, USA.

Unhelkar, B., and Philipson, G. (2009), “Development and Application of a Green IT Maturity Index,” ACOSM2009—Ā e Australian Conference on Software Measurement (ACOSM), Nov. 2009.

Dr. U nhelkar e arned h is do ctorate i n t he a rea o f “ object o rientation” f rom t he U niversity o f Technology, Sydney, in 1997. Subsequently, he designed and delivered course units such as Global Information Systems, Object Oriented Analysis and Design, Business Process Reengineering, and IT Project Management in the industry as well as across universities in Australia, China, and India. He led the Mobile Internet Research and Applications Group (MIR AG) at the University of Western Sydney, where he is also an adjunct associate professor. He has authored/edited 16 books in t he a reas o f c ollaborative b usiness, g lobalization, m obile b usiness, so ftware q uality, b usiness analysis, business processes and the UML and has extensively presented and published papers and case studies.

Apart f rom G reen I T, m any o ther i ndustrial c ourses de veloped b y D r. Unhelkar h ave n ow been delivered to b usiness e xecutives a nd I T professionals g lobally (in Australia, USA, C anada, UK, China, India, Sri Lanka, New Zealand, and Singapore). Training courses delivered through MethodScience are consistently ranked highly by the participants.

Dr. Unhelkar is a sought-after orator, a fellow of the Australian Computer Society (elected to this prestigious membership grade in 2002 for his distinguished contribution to the fi eld of infor- mation and communications technology), a life member of Computer Society of India, Rotarian at St. Ives (Paul Ha rris Fellow), Discovery volunteer at N SW pa rks a nd wildlife, a nd a p revious TiE Mentor.

ASTRATEGIES AND APPLICATIONS

3

1 Chapter

Green IT Fundamentals: Business, IT, and the Environment

If you lose touch with nature you lose touch with humanity.

J. Krishnamurti’s Journal, April 4, 1975

Key Points A strategy for Green IT forms part of and aligns to an overall business strategy. ◾ Astute business sees Green IT as organizational best practices that lowers costs, provides ◾ better customer service, and improves business operations. Ā e practical discussions within this book on the alignment of business and environmental ◾ outcomes are underpinned by industrial research.

Introduction An indisputably winning argument behind the implementation of Green IT* initiatives is based on business effi ciency. Ā is is the same reason why businesses strive to be lean, improve their qual- ity, a nd reengineer t heir processes. Ā us, while myriad reasons abound for why a n organization should become green, the one reason that is beyond reproach is that “a green business is synony- mous with an effi cient business.” When a reduction in carbon is allied with the economic drivers of a b usiness, t he s earch fo r j ustifying t he c osts to o ptimize b usiness p rocesses a nd v irtualized

* Ā e t erm I T i mplies i nformation, t echnology, a nd c ommunications dom ain. O ccasionally, t he t erm I CT i s used—especially in emphasizing the communications aspect of IT.

4 ◾ Green IT Strategies and Applications

data servers become relatively straightforward. A close synergy exists between a lean and a green business. In fact, in most cases, they are complimentary. Ā is synergy between lean and green has immense p otential to b enefi t b oth, t he business a nd t he environment. A dd e ff ectiveness to t his compliment of lean a nd green a nd t here begins a c omprehensive journey toward environmental consciousness by business.

Green IT (also referred to a s Green ICT or Green computing) has been defi ned or described by several sources including Murugesan (2008), Lamb (2009), Unhelkar (2010a and 2010c, 2011). Green I T de fi nition ap pears i n W ikipedia, 2 010 a s we ll. Bu t i t i s t he de fi nition of Murugesan (2008) that is particularly comprehensive: “the study and practice of designing, manufacturing, using, and disposing of computers, servers, and associated subsystems (such as monitors, printers, storage de vices, a nd n etworking a nd c ommunications s ystems) e ffi ciently and eff ectively with minimal or no impact on the environment.” Ā is defi nition can be interpreted as serving an orga- nization’s attempt to achieve economic viability and improve system performance and use, while abiding the social and ethical responsibilities. Lamb (2009) simplifi es this defi nition: “Green IT is t he study a nd practice of u sing computing re sources effi ciently.” Ā us, Green I T includes t he dimensions of environmental sustainability, the economics of energy effi ciency, and the total cost of ownership, which includes the cost of disposal and recycling.*

Ā is opening chapter of this book on Green IT strategies and applications expands the afore- mentioned theme. Carbon effi ciency has to be imbibed in the overall effi ciency and eff ectiveness of the organization. Ā e equation of a market-driven economy is not eschewed in this philosophy but, rather, strengthened. Increasing the va lue and reducing the costs, the hallowed mantra of a lean organization, is investigated deeply only to discover that reduction in carbon, in so many ways, i s c losely a ligned to re duction i n c osts. S een f rom a b etter b usiness p erspective, c arbon consciousness can be incorporated as an integral part of the mainstream business strategy, rather than a s a n “add on” to t he core business. Ā e time to explore, investigate, and experiment with the existing and future technologies and processes that can be used to dual advantage—business effi ciency and carbon effi ciency—has never been more appropriate.

Ā e ap proach s et i n t his c hapter o f a lignment o f b usiness s trategy a nd G reen I T s trategy permeates the chapters of this book. Subsequent chapters in this book delve into various areas of green business that includes management, processes, architecture, intelligence, and metrics—to name but a fe w. Ā e ba sic philosophy adhered to t hroughout t hese d iscussions is t hat business goals need not be eschewed for the sake of carbon effi ciency. Ā e crucial connection between the business a nd c arbon do main i s e xpounded h ere t hrough t he d imensions o f te chnologies, p ro- cesses, p eople, a nd e conomy. L ong-lasting environmental s trategies a re not t reated i n i solation from the corresponding business considerations. Ā rough the discussions of strategies, policies, practices, and metrics, these discussions strive for an enduring impact of carbon considerations on the individual, organization, industry sectors, and even governments. Ā is is so because start- ing right with an individual’s attitude and working life style, Green IT is shown to aff ect the way the b usiness i s o rganized, i ts u nderlying i nfrastructure, a nd t he fo rmulations o f i ts re gulatory policies. G overnment r ules a nd re gulations, c arbon off sets a nd c arbon t rading u nderpin b oth legal a nd e conomic re quirements, w hich, i n t urn, a re sh aping t he b usinesses o f n ow a nd t he future.

Ā e market-driven philosophy of businesses, thus far, has worked against the environment. Ā is i s o bvious b ecause t he f ree m arket e conomies s tarted w ith t he ba sic p remise o f p rofi t,

* For more d efi nitions of Gre en I T s ee: C ameron (2009), C hen a nd B oudreau (2008), D edrick (2009), Fuchs (2008), Murugesan (2007, 2008), Poniatowski (2010), and Velte, Velte, and Elsenpeter (2008).

Green IT Fundamentals ◾ 5

which, pe rhaps, go t t ranslated i nto p rofi t at any cost . Besides t hat, re fl ecting diff erent views, a strong consensus is currently missing a nd has led to fo rmation of c amps a long political a nd economic lines. Ā erefore, those aspects of society and life that belonged to the “common good” suff ered. Ā e environment did not belong to a particular organization, a particular profi t mak- ing en tity. Ā e sanctifi cation o f p rofi ts lead to dilution of attention to everything that was outside t he organizational boundary—and t he environment w as i ndeed outside t he organiza- tional boundary. Major eff ort in the environment domain, in the last decade, has been to shake this erroneous yet unfl inching belief that anything that happens outside of my organization is none o f m y c oncern. N ot o nly i s t he en vironment w ith t he s eemingly u nending p umping o f emissions of g reat concern for corporate social re sponsibility, but studied closely, it a lso off ers hitherto u nknown o pportunities. Cre ative w ays o f l ooking at t he en vironmental c hallenge opens up opportunities to examine processes for collaboration, take stock of the inventory and infrastructure for optimization, and explore the possibilities of new business streams. Needless to s ay, m ultiple d isciplines, sk ills, a nd i maginative c apabilities n eed to s ynergize to e xplore this unknown. As Yousif (2009) in his keynote Towards Green IT, says, “serious c ollaboration between technologists, developers, researchers, consumers a nd politicians is needed to a chieve green and sustainable ICT.”

With a fo cus o n t he b usiness a nd t he en vironmental do main wo rking together, t he n eed to debate on real cause of c limate c hange a lso s tarts f ading. Ā ere i s l ess pressure to a scertain t he exact c ause o f c limate c hange a nd m ore f reedom to s tart m erging s ensible b usiness s trategies with t he environmental s trategies. A bstaining f rom t he philosophical debate o n t he o ccurrence of climate change (not that such debate is not important; but my focus here is purely business- technology n exus a nd en vironmental va lue to b usiness), f rees u p p recious b usiness t ime a nd energy to focus on environmentally responsible business strategies (ERBS) around a very practical viewpoint: “an effi cient business, by default, is also a environmentally-effi cient business.”

Ā us, w hat s tarts b ecoming p rominent i s t he a ge-old q uest o f b usinesses to i mprove t heir effi ciencies and eff ectiveness. An effi cient business will, in most cases, emit less carbon in the envi- ronment. For exa mple, a n effi cient d ata c enter w ill not only re duce t he operational e xpenses of an organization’s IT department, but will also be environmentally responsible. Another example would be that of an effi cient a irline m anagement p rocess. C hecking-in pa ssengers q uickly a nd accurately, or sidestepping certain “bureaucratic” steps within ticketing, will invariably reduce the carbon generated by these processes. Ā is can be the result of highly optimized data entry using mobile de vices, obviating t he need for a ny printing i n t he process or si mply automated, d igital authorization. Apart from the operational effi ciencies that also eliminate the carbon wastage points, similar arguments a lso apply for the organization’s long-term strategic a ssets and infrastructures including building a nd f acilities, f urniture a nd e quipments, vehicular fl eets, i nventories, supply chains, human resources, and the overall administration of the business.

Standards, processes, g overnances, intelligences, business s olutions, a pplications, data w are- houses, a nd myriad of other te chnology a nd business e lements a re brought to b ear on business effi ciency. Ā e ensuing d iscussions not only demonstrate t he need to a nd t he approach for such collaboration amongst these various business elements but also demonstrate the results from that eff ort t hrough t he u se o f m etrics a nd m easurement. M oving b eyond t he te chnology fo cus o f Green IT, this book explores the many dimensions of business that lie beyond Green IT and that aff ect its c arbon fo otprint i n a subs tantial m anner. Ā e en d re sult i s a d iscussion o f i ssues t hat aff ect t he o verall en vironmental p erformance o f a n o rganization to a chieve a G reen E nterprise that meets the needs of the various stakeholders.

6 ◾ Green IT Strategies and Applications

The Environment Today As mentioned e arlier, whether human activity is t he c ause of change in t he environment or not becomes a background conversation to improving business and achieving environmental outcomes in t he process. It is t his business-driven collaborative pat h t hat opens opportunity for corporate action.

While t he c ause fo r c limate c hange c an b e i nvestigated P achauri, R .K. a nd R eisinger, t hat cause in itself need not be the deciding factor in undertaking Green IT initiatives. For example, if only the facts are considered (and not necessarily the philosophical discussion as to who is creating this climate change), then it is plain and obvious that the Earth as it stands (or revolves) now will run out of coal and oil. Ā is also implies that the source for plastics and related chemicals will dry up; but t he pollution a nd wastage generated f rom t hese plastics w ill remain w ith u s. Ā us, in a way, the closing scene of this play is known. What is required is astute business innovation to see that when the curtain falls the actors and the audience still have food, air, and water.

Figure 1.1 shows that the information technology (IT) aff ects business, which, in turn, infl u- ences the society and the overall environment in which the business exists.

For e xample, I T i n b usiness m akes u se o f m assive c omputing a nd n etworking te chnologies that re quire l arge a nd de dicated d ata c enters. Ā e location of t hese d ata c enters a nd t he p eople who work in them are all socially aff ected by this use of IT by business. Furthermore, as the social fabric gets disturbed, it in turn aff ects the overall environment in which the society exists. Finally, there is also a direct infl uence of IT on the society and environment—independent of its infl uence on business.

Ā is d irect in fl uence o f I T i s s een i n t he m assive p roliferation o f h ousehold g adgets, u se o f computers i n sc hools a nd h ospitals, t he p opularity o f so cial n etworking, a nd t he h igh l evel o f communications technology (such as a GPS) in vehicles.

Despite this huge popularity of IT, it appears as if the corresponding environmental consid- erations of the impact of IT’s usage have lagged behind substantially within business strategies. Events, such as the global fi nancial crises (GFC, 2009) Shah, A. (2010), British Petroleum’s oil leak in the Gulf of Mexico, and the Icelandic volcanic ash have further exacerbated this lack of

Society

EnvironmentEconomy

Society Business

Information Technology

Environment

Bearable Equitable

Sustainable

Viable

Intelligence

(Direct) (Indirect)

Figure 1.1 Information technology infl uences business, society, and environment—lead up to the sustainable triangle.

Green IT Fundamentals ◾ 7

environmental c onsiderations i n b usiness s trategies. O n t he one h and, t he C EO s trapped fo r cash is asking about the environmental initiatives: “why?” or “what is in it for me?,” and on the other hand, these global events are screaming for incorporation of environmental consideration as a part of normal enterprise risk management. For example, if carbon emission is consid- ered holistically by business, then even the risks associated with the a forementioned disasters could have been ameliorated through forward planning, risk mitigation strategies, and eff ective governance.

Ā e answer to t he question of “why?” (should I u ndertake carbon reduction strategies if they are going to c ost me i n t he short ter m) l ies i n observing how c losely t he r isks a ssociated w ith a business i s t ied to i ts c arbon g eneration. Bu sinesses t hat g enerate c arbon a nd p ollute t he at mo- sphere are unlikely to b e sustainable in the long run, whereas green businesses that use IT intel- ligently add substantially to their risk management repertoire and are most likely to be successful businesses both now and in the future.

Ā is viewpoint is depicted on the right side in Figure 1.1, wherein the sustainable triangle of an organization is shown to be made up of a balance between society–economy (how much can the so ciety b ear?), e conomy–environment (is t he en vironmental i nitiative v iable?), a nd so ciety– environment (is t he environmental c onsideration e quitable?). Ā e quest for t he a nswers to t hese questions forms the basis of this Green IT initiative—and its fundamental principle is to have the economic, social, and environmental factors in balance.

Ā is h olistic, ba lanced ap proach to t he b usiness and t he en vironment i s s trongly rep eated through t he t hought p rocesses o f va rious c onsulting p ractitioners a nd re searching a cademics (Unhelkar, 2011). Ā e varied viewpoints in that handbook range from the need to optimize sup- ply c hain p rocesses, s witching off c omputers w hen n ot i n u se, a nd de signing l ow-carbon em it- ting microprocessor chips to creating long-term awareness about the environmental protocols and standards, i ncorporating c arefully c onstrued c arbon m etrics a nd m easurements, a nd c hanging attitudes of users and employees through education and training.

A comprehensive Green IT strategy fully utilizes technology resources, reengineers processes, and uses the positive attitude of people in bringing about environmental consciousness in the daily activities of the business. Ā e Green IT metrics and measurements support the justifi cation of all the g reen en terprise t ransformation a ctions ( Bell a nd M orse, 2 008). Due c onsideration i s a lso given in this holistic approach to the “soft” factors relating to people, their attitudes, and the socio- cultural infl uence of Green IT. Ā e transformation process a lso includes a m odel of t he current objectives and strategy of the organization as well as a model of the future state of an organization from an environmental perspective. Eventually, the transformation process leads the organization to change systematically its state from where it is to the future state.

Ā e s trategy, p olicy, a nd p ractice re lating to G reen I T a re c oncepts t hat c hange at va rying levels within an organization. For example, the formation of the initial Green IT strategy will be a collaborative, dynamic eff ort that will stabilize and provide sound basis for formulation of Green IT p olicies. Ā ese p olicies, i n t urn, a re practiced w ithin t he organization w ith va rious levels of intensity a nd attitude. Ā us, the dynamicity of Green IT strategy, policy, a nd practice imply a n ongoing learning and coordination of various faculties of the organization to c ome up with eco- innovations w ithin a nd a cross t he organization. Nidumolu, Prahalad, a nd R angaswami (2009) have in fact equated sustainability with innovation stating that such eco-innovative approach will lay the groundwork for these organizations to stay ahead in the next economic upturn (at the end of this recession). Ā is is the intelligence aspect of the environmental initiative. For example, a dy namic G reen I T s trategy wo uld en sure t hat t he t acit k nowledge w ithin t he o rganization’s people is connected with the explicit knowledge within the data warehouse to produce intelligence

8 ◾ Green IT Strategies and Applications

that i s u sed i n en vironmental m anagement o f t he o rganization ( Unhelkar a nd Tiw ary, 2 010). Hercheui (2011) has further outlined the role played by knowledge management tools in fostering Green ICT related change in organization.

Ā is l earning a nd i ts d issipation i ncludes e ffi cient w ays of or ganizing pr oduction a nd c on- sumption, improved design of products to reduce their carbon emissions, creative and optimized supply chains, optimized inventory processes, and excellence in customer service from an environ- mental perspective.

Ā us, a sp ecifi c green knowledge management domain emerges within the organization that supports t he entire organization in its Green I T initiatives a nd, e ventually, becomes a n integral part of the organization.

As Jonathan Lash and Fred Wellington advise businesses in their Harvard Business Review arti- cle (2007), “Companies t hat m anage a nd m itigate t heir e xposure to c limate-change r isks, w hile seeking new opportunities for profi t, will generate a competitive advantage over rivals in a carbon- constrained future.” Ā e eff ect of environmental issues on businesses is not just limited to “feeling good” or handling regulatory compliance; instead, this eff ect is refl ected directly in the share prices of companies on the stock exchange. Similarly, when making purchasing, leasing, or outsourcing decisions, many customers have begun to t ake into consideration the company’s current environ- mental records and initiatives, and their future plans (Ambec and Lanoie, 2008; Brown, 2008).

Developing a comprehensive approach to an environmental strategy is not limited to the for- mulation of the strategy and corresponding policies for Green IT. A roadmap and plan for formal transition f rom t he c urrent state of a n enterprise to a g reen enterprise t hrough a s taged t ransi- tion process i s a lso re quired (such a roa dmap a nd its en actment i s de tailed i n Chapter 9). Ā e green enterprise t ransition re sults i n a l ong-term, su stainable business t hat i s a “ lean” business with energy effi ciency and optimized processes. Ā is transitioning to a green enterprise needs to be f urther va lidated a nd justifi ed t hrough supporting return on investment (ROI) metrics a nd related carbon measures (discussed in detail in Chapter 3). Ā e results of t hese green measure- ments should be part of a company’s annual report that makes it obligatory to report the carbon performance of t he organization to i ts s takeholders a nd sh areholders. Ā e end re sult of suc h a unifi ed approach is that the environmental strategy fi nds support across an organization, address- ing te chnology, p rocesses, a rchitecture, a nd m etrics. Ā us, a c arefully c onstrued s trategy fo r Green IT is a cr ucial enabler for an organization’s overall transition toward an environmentally sustainable business.

Ā e following a re some of t he sp ecifi c w ays i n w hich a c omprehensive G reen I T s trategy i s benefi cial to an organization:

Incorporates environmental issues within the business strategies in way that is complimen- ◾ tary to each other. Demonstrates t he i mportance of environmental i ssues a s one of t he “core” business i ssues ◾ rather than merely “good to have” add on. Explores the possibilities of enhanced green performance to discover and develop new busi- ◾ ness opportunities. Expands t he te chnologies o f Bu siness I ntelligence fo r t he p urpose o f re ducing t he o rga- ◾ nization’s c arbon f ootprint—leading in to w hat is c alled Environmental I ntelligence (E I) (Unhelkar and Trivedi, 2009; Wrexham and Cutter, 2009; Unhelkar and Tiwary, 2010). Applies t he c oncepts o f c arbon e ffi ciency to business processes leading up to Green ◾ business p rocess m anagement ( Green-BPM) a nd G reen b usiness p rocess re engineering (GPR).

Green IT Fundamentals ◾ 9

Develops t he i dea o f t he c arbon fo otprint o f c ollaborative b usiness p rocesses ( Unhelkar, ◾ Ghanbary, a nd Younessi, 2 009) t hat c ut a cross m ultiple o rganizations a nd ap proaches to improve that collective carbon footprint. Proposes a G reen en terprise a rchitecture ( GEA) t hat b uilds o n t he te chnologies o f W eb ◾ Services/Service Oriented Architecture and Cloud computing. Discusses the importance of people, their attitude, and approaches to Green IT that would ◾ bring about a positive change without condemnation. Expands o n t he ro le o n G reen H R i ncluding t he t raining a nd p ositioning o f ro les a nd ◾ responsibilities in the green space. Expands o n t he v ital ro le o f b usiness l eadership i n b ringing a bout p ositive g reen c hange ◾ across the organization. Presents t he l egal a nd p olitical a spects t he i nternational p rotocols o n g reenhouse g ases ◾ (GHGs). Argues fo r t he u se o f ISO 1 4001 f amily o f s tandard fo r t he en vironment w ithin t he ◾ organization. Discusses metrics and measurements related to c arbon data with an aim of understanding ◾ and mitigating the sources of carbon generation within and outside the organization. Incorporates the use of mobile technologies and smart metering for real-time measurements ◾ and use of carbon data. Discusses a nd advises on t he u se of Carbon Emissions Management Software (CEMS) in ◾ the context of carbon metrics, measurements, and reporting. Outlines the approach to Green IT audits for reporting and compliance. ◾ Explores the futuristic issues impacting environmental ◾ performance of an organization.

As is seen by t he above list, a G reen IT strategy off ers a lot more value to the organization that goes beyond the con- fi nes of I T p er s e. Ā e off erings of Green IT strategies and policies, together with an approach to implementing them in practice, are studied, modeled, explored, and reported under the umbrella of green business strategies. Ā us, a green busi- ness strategy can also be called an ERBS (Unhelkar, ERBS, Cutter Report, 2010c).

Information Technology and Environment As mentioned earlier, IT is an inseparable, integral part of modern business. In fact, IT is so closely intertwined with business processes that it is diffi cult to imagine any modern core business process sans IT. In addition to being an integral support to business processes, IT particularly with commu- nications technologies, is a creative cause for many new and wide-ranging business interactions. Ā e maxim “Business is IT” is even more relevant in today’s heavily analyzed, networked, and intercon- nected world of business. It is impossible to i magine a t ypical banking, insurance, and hospital or airline process without IT. Ā e synergy between business and IT implies that growth in business also implies corresponding growth in IT. Ā is, in turn, also implies greater IT-based carbon generation.

An environmentally responsible business strategy (ERBS) is a judicious combination of business and environmental goals of the orga- nization. The synergy among business, tech- nology, and environment can be achieved by viewing the organization holistically as an environmentally conscious organization. This is quite a different approach as compared with the piecemeal approach to Green IT, or the one that focuses on the “quick runs” that result in some immediate impact on reduc- ing the carbon footprint of an organization, but does not provide long-term green value to the organization.

10 ◾ Green IT Strategies and Applications

Jain (2011) mentions studies that show the eff ects of IT usage on the environment (Erdmann and Hilty, 2004; Plepys, 2002). Ā ese studies specifi cally indicate the various levels at w hich IT aff ects the environment. An initial level of impact is associated with production, use, and disposal of IT hardware that aff ects the environment directly. Ā e subsequent level of impact is caused by the eff ect of IT on the changes in structure and behavior. Plepys (2002) describes a rebound eff ect that is the result of widely available and plentiful IT resources used in excessive quantities in lieu of other resources. Ā is IT eff ect on carbon footprints can be seen in global trade transcending orga- nizational and regional boundaries. For example, the decree by European Union (EU) is binding to all organizations operating within the Union to comply with their carbon benchmarks. Ā i s, in turn, implies that the service providers from other regions need to be carbon compliant in order to trade with organizations in the EU.

Verticals suc h a s fi nancials, t ravel, a nd h ospitals a re a ll a ff ected f undamentally b y I T a nd its em issions. W hile t hese i ndustries a re t hemselves not I T, s till t here i s h ardly a ny t ransaction in t hem t hat c an be conducted w ithout IT being a n integral pa rt of it. Ā e process of getting a quote for an insurance cover, the process of buying an airline ticket, and the process of checking the ava ilability o f a do ctor a ll h ave i nformation a nd c ommunications te chnology at t heir ba se. Each p rocess re quires a n u nderlying d atabase (or d ata w arehouse), a m eans o f c ommunication (the Internet together with all its add-ons), user interfaces, data and transaction security, and the overall u ser e xperience c onsiderations. Ā erefore, m odeling, e xamining, a nd o ptimizing a ny o f these processes requires due considerations of a ll IT elements. Changes to t he technical systems and database aspects of these processes impact the business aspect of those processes. In fact, it is increasingly becoming diffi cult to segregate the IT aspect from the pure business aspect of these processes. Ā erefore, m any a t hinkers b elieve t hat t he I T i ndustry h as a si gnifi cant role to play in reducing GHG emissions (Tang, 2008). Philipson (2010) has recently published a whitepaper that c ategorically d iscusses t he role of I T i ndustry i n t he overall environmental performance of businesses. As argued in that report, the technology to bring about reduction in IT’s carbon emis- sions is already there. “Ā e other necessary ingredients are political will and appropriate economic initiatives—which can in many cases be facilitated by appropriate government policy.”

To start with, this indicates that a reduction in overall carbon footprint of the organization can be eff ectuated by specifi cally tackling IT-based emissions. Reduction in IT-based emissions—such as the data center and the end-user monitors—will have an immediate and positive impact on the overall carbon footprint of the organization. More importantly though, as is envisaged by Unhelkar and Philipson (2009), Murugesan (2008), Unhelkar (2010a and 2010c), and others, IT in systems and processes can be positive enablers, across the entire organization—providing opportunities for improving the carbon footprint of both the IT and the non-IT aspects of an organization.

Ā us, in discussions on business effi ciency and eff ectiveness, IT considerations are integral and mandatory. It thus follows that these IT-led business interactions are directly correlated with the production of c arbon a nd related GHGs. Ā e greater t he interactions between IT a nd business, the more are the amount of carbon pumped in the environment. Ā erefore, it follows that inves- tigation a nd a melioration of IT related processes leading to G HGs w ill lead to re duction in t he overall c arbon footprint. Similarly, i mproving t he e ffi ciencies of business interactions supported by IT will also reduce the carbon content emanating from the business.

Figure 1.2 attempts to depict this ongoing interplay between the business and the environment. Ā e IT sheath that encompasses the business is shown on the left in Figure 1.2. Any business

activity that involves IT—and most does—impacts the environment. Ā e carbon impact is shown by an arrow from left to right. Ā is impact of business activities through IT on the environment has to be understood in three ways: from the length of time, the depth of activity, and the breadth

Green IT Fundamentals ◾ 11

of coverage of t he c arbon eff ect. Ā e greater the intensity of business activities, the higher is the carbon generation. Ā e awareness of environmental issues, in turn, infl uence the way in which IT is structured and operated (as is attempted here). Ā is eff ect, in turn, would lead to an improved IT sh eath t hat wo uld b e o ptimized a nd e ffi cient. Ā e lean approach to business is thus easily applicable to t he G reen I T s trategies; a s a l ean b usiness wo uld a lso h ave a c orresponding l ean IT—opening up the idea that lean is green.

Developing an understanding of the intertwining of business and IT, together with the con- cepts of lean business in the background, helps in ascertaining the areas of business that are partic- ularly carbon intensive. Consider, for example, a simple web-enabled process for paying insurance premiums. Ā e manual process of payment was by posting a cheque (check), whereas payment can now be performed using BPAY or credit card either online or on the phone. Ā is electronic process will generate carbon that is direct result of use of IT in the process. Ā e more this insurance busi- ness grows and expands across regions, the greater will be the number of transactions and, in turn, the i ntensity a nd breadth of c overage of I T i n t heir processing. Greater t he BPAY t ransactions, more will the use of IT systems and their associated hardware, software, networks, and communi- cations. While IT provides the necessary fuel for conducting and expanding the existing and new business processes, it also forms the basis for increasing carbon emissions. Growth and expansion of a business, such as the aforementioned insurance business, will require further investments in IT. Ā e environmental angle to those IT investments now starts coming into play. Ā e databases, the business rules, the user interfaces, the security a nd privacy, a nd the overall customer experi- ence envisaged by the business has to now consider the carbon costs. While costs themselves were earlier justifi ed if they provided enhanced customer experience, they can now no longer be justi- fi ed as independent of their carbon contents. In fact, an erudite customer base may not accept a good customer experience if it is highly carbon intense. Ā e attempt of an organization to apply lean principles gets translated and applied here to become lean-green principles. Ā e process ele- ments that support lean ensure that this is not achieved at the cost of the green credentials.

Following are the specifi c areas of IT systems, processes, architecture, and people that impact the carbon footprint of an organization. Ā ese respective IT areas have a dual infl uence: the increase

IT

LEAN

BU SI

N ES

S EN

VIRO N

M EN

T Carbon

Carbon

Figure 1.2 Interplay of business and environment through information technology.

12 ◾ Green IT Strategies and Applications

in business activities through these packages increases the carbon footprint of the organization, but the optimization of the business processes and backend IT servers and networks has the potential to reduce the carbon footprint of the organization. Ā ese IT areas are discussed as follows:

Software A pplications a nd Packages: Ā ese a re t he e xisting ERP/CRM/SCM applications ◾ within the organization that need to undergo a major revamp to incorporate green factors. Ā ese applications will be modifi ed to enable incorporation of real-time carbon data from within a nd w ithout t he o rganization. Ā ese d ata, m easured t hrough va rious m eans suc h as sm art m eters, a re i nputted d irectly b y u sers o r u pdated t hrough i nterfaces f rom o ther systems (such as power usage calculating systems). Carbon usage data are then fed into the fi n ancial-type calculators of the organization to ascertain the corresponding carbon calcula- tions. Ā is area of IT is discussed in detail in Chapter 4. Carbon Trading A pplications: W ith p otential c arbon t rading o n t he c ards, t hese o rganiza- ◾ tional applications will also be geared toward performing analytics on the real-time (mobile) data that will enable the organization to fi gure out trends in its own carbon performance as well as that of the market. Carbon reporting tools will play equally signifi cant role in the car- bon economy. Ā is area is discussed in detail in Chapter 6 and also alluded to in Chapter 10. Green Enterprise Architectures: Ā is is the ground-up building of new enterprise architec- ◾ tures that take a fresh look at the enterprise applications from a green perspective. Ā is area of IT fi nds detailed discussion in Chapter 6. Green Infrastructures: Ā is is an area of IT that deals with the buildings, data centers, vehi- ◾ cles, and other nonmovable and movable assets of the organization. Ā e design, development, operations, and decommissioning of these IT and non-IT infrastructure assets of the organi- zation needs to be investigated. For example, most data center buildings that are more than a quarter century old, are just buildings that house servers. Ā ese buildings present the chal- lenges to t he g reen a spirant organization of either i ncreasingly i mproving t heir operational effi ciencies o r co mpletely r eplacing t hem wi th p urpose-built da ta ce nters. Eff orts toward improving operational effi ciencies include virtualization, aisle reorganization, and improved attitude t hrough tr aining a nd s imilar initiatives. A dditional processes a nd provisioning o f new services forces the data center directors to seek techniques and technologies to improve their data center performances. For example, organizations like HP, VMware, and IBM (e.g., blade servers) are off ering hardware technologies that are a combination of improved perfor- mance and comparative carbon effi ciency. Ā is area of IT is explored in Chapter 4. Governance s tandards ( such a s I TIL a nd C oBIT) n eed to b e re visited to en sure si gnifi cant ◾ Green strategies are refl ected in the use of these governance standards. Ā e way in which the governance standards are implemented is also refl ective of the organization’s carbon initiative. People: Social networks as well as employee/worker socialization tools are IT products and ◾ services that have a corresponding green angle. Ā e attitude of the end-users and the extent to which t hey a re t rained a nd educated i n t he e ffi cient u se of re sources, a nd t he feedback provided to them on their carbon usage is vital in the creation of a Green IT culture within and around the organization. Ā is area of IT is discussed in Chapter 8 in detail. Dynamic Social Groups: the creation of social groups that refl ect their usage and consump- ◾ tion patterns can lead to not only directed marketing and sales but also help the organization in its green credentials. Customers and employees, as well as suppliers and other stakeholders in t he business c ome together i n melee of dy namic g roups whose c ommon i nterest, t rust, direction, and dissolution provide immense sociocultural signifi cance to a Green enterprise. Ā is area is also discussed in Chapter 8.

Green IT Fundamentals ◾ 13

Wired and Wireless Communication: Ā e way in which various communications technolo- ◾ gies are exploding has connotations from Green IT. Ā e Quad functionality of the Internet (Video, A udio, Dat a, a nd T V) w ill bring f urther f uzziness to t he b oundary b etween T V and the Internet. As Vince Kellen prognosticates (2010): “On the Internet, TV can be very easily viewed live or later, thus providing wider access to specifi c content. As high-defi nition technology advances and associated edge devices grow in number, high-defi nition stream- ing will explode.” Ā us, the way in which these wired and wireless networks are confi gured and deployed will impact the carbon footprint of the organization. Advances in networking technologies—such a s self-correcting networks, c ognitive networks w ith energy-conscious nodes that switch performance based on the load—will provide basis for reduction, as well as auto-calculation and reporting of carbon data associated with them. Emerging Cloud Technologies. Computing is becoming increasingly decentralized and having ◾ a dedicated data center is no longer the privilege that it used to be. Ā e nebulous Cloud, com- prising my riad d iff erent technologies i ncluding networks, storages, a nd services, enable orga- nizations to t ap into the storage and computer power of the world. Ā e resultant synergy has correlation with the carbon generation of the users of the cloud. A cloud essentially enables shar- ing of large-scale storage of data, corresponding computation, and analysis and reduces overall carbon. Chapters 6 and 10 elucidate why this emergent trend of Cloud computing has a positive potential to impact the environmental performance of a growing and expanding organization. Green Peripherals: Ā is is the area of printers, copiers, shredders, and similar offi ce equipments ◾ that are associated with IT and that contribute to the overall carbon of the organization. While individually, a u nitary item m ay not produce subs tantial v isible em ission, c ollectively, t hese peripherals have a subs tantial i mpact on t he c arbon footprint of a g rowing organization see ACS 2007. Renewable E nergies: Ā ese i nclude a lternate so urces o f c lean a nd g reen en ergies suc h a s ◾ solar, wind, and nuclear. Ā ese energies will be treated separately in terms of their costs, and in ter ms o f c alculating t heir c arbon c ontributions. Ā erefore, they will impact a growing organization through its IT consumption substantially. Development o f E ffi ciency S olutions B ased o n I T Systems. Ā ese so lutions wo uld i nclude ◾ measurement, monitoring, and reporting on energy performance. Ā ese solutions would fur- ther monitor and control resource usage and energy consumption. Design, Development, and Use of Power Effi ciency in IT and Non-IT Hardware: Ā is would ◾ include not only power effi ciency in electronic chip designs, but also expansion into green power grids and management of equipment through software and operating systems. Adherence to R egulations a nd S tandardization: I ncludes ◾ active p articipation in c reation o f n ew s tandards, a gree- ments, a nd c onsortium-based pr otocols. Ā es e protocols and s tandards a re d iscussed i n Chapter 3 on p olicies a nd Chapter 10 on the ISO 14001 family of standards. Recycling and Disposal of IT Hardware: Ā is will impact ◾ the procurement as well as disposal aspect of IT that is asso- ciated with effi cient design of equipment, as well as ethical disposal of the same when their use is consummated.

Table 1.1 summarizes the major IT areas that infl uence the environment through their incor- poration in the business.

Information technology infl uencing the carbon emissions of business includes end- user devices (typically the large number of computers, laptops, and mobile devices), the large data servers residing in the data centers of the organization, the networks and communications equipments (such as switch gears, routers), and the buildings and related infrastructure (such as the data center building). These various elements of IT pose the risk to business through their emissions. A comprehensive metrics and measurement framework is required as an integral part of this IT-business relationship in the context of Green IT.

14 ◾ Green IT Strategies and Applications

Business and Environment As established earlier in this chapter, the business a nd the environment interact with each other primarily through IT. IT has served businesses well by enabling them to expand their capacities, providing t hem w ith g lobal c ustomer re ach, a nd en hancing t heir c ustomers’ e xperience. I T h as also enabled businesses to optimize their internal processes such as inventory management and HR management and cut their operational costs through process automation. Ā e provisioning of IT resources, in particular, is not just limited to the databases or the application servers. Instead, IT is integrally embedded in business processes* making them cost effi cient and/or enabling businesses to grow and expand. Care in the use of IT to ensure minimal carbon footprint is now becoming a priority for both business and IT. Global initiatives, such as the Copenhagen summit, on GHGs, focus more on the political and legal aspect of carbon emissions. Ā e sensible and sensitive use of technologies within business is usually relegated to a s econd position—behind the sociopolitical issues associated with these challenges.

* See www.business-ecology.org

Table 1.1 Major IT Area Infl uencing Environment

IT Areas Major Environmental Infl uence

End-user devices (desktops, laptops, mobiles)

Large numbers of these devices, together with their rapid obsolescence that depends on factors other than their usefulness. Aim to reduce the number of devices and the emission per devices.

Data center servers Growth of business associated with greater transactions invariably requires greater number of servers. Together with their backups, security, and mirroring requirements, these servers substantially impact the carbon generation. Techniques of optimization and virtualization need to be incorporated in data server management.

Communications equipment (switches, networks)

These equipments, usually part of the data centers, increase in numbers and usage with growth in transactions. New networking technologies, self-healing networks, and use of mobile networks over wired ones can be part of the Green IT strategy here.

Infrastructure (buildings, towers)

Greater the number of servers and offi ce machines, more is the offi ce space required. This increase in physical facilities and infrastructures have their own carbon impact that contributes to the carbon footprint. Building architecture and design, policies and practices for its operation, and maximum use of space as well as location are of importance here.

Metrics and measurements

Inclusion of new KPIs for carbon-related performance in the measures.

Risk management Includes risks associated with not controlling emissions. Also includes the risks that may come due to green enterprise transformation.

Green IT Fundamentals ◾ 15

Technological advances, particularly in the information and communication domain, are seen in terms of the value they add to business. Consider, for example, recent developments in IT (e.g., high-end data servers, sophisticated desktop computers with their low-power using monitors and myriad varieties of laptops), telecommunications (e.g., broadband Internet, mobile devices, trans- mission towers, switch gears), and associated technologies (such as the ever improving gadgetry of the ubiquitous photocopiers and shredders). Ā ese technologies have been used by businesses but an argument can now be made for those businesses to pay attention to the use of these same tech- nologies to re duce t heir overall c ontributions toward GHG em issions. Sir Nicholas Stern i n h is now well-known Stern Report (2007) correctly identifi ed and underscored the correlation between the environment and the economic (fi nancial) stability and prosperity of business organizations. Ā is correlation has immense value as it paves the path for accepting “business sense” to emba rk on strategies and programs that will reduce GHG emissions—particularly those emanating from the use of IT.

Ā e key to creating Green IT strategies for business is to treat the entire organization holisti- cally. W hile t he practical i mplementation of t hose s trategies w ill m ostly b e ba sed on d iff erent levels of sophistication within departments and user groups, still a unifi ed strategy will enable the consolidation of organization wide eff ort. Ā erefore, the starting point for a green business is the organization itself. Indeed, during the execution of the green enterprise transformation program, the organization will be divided into many smaller, departmental level manageable chunks; the Green IT strategy itself cannot be for a single unit of the business. Instead, unifi ed strategy will apply to the entire organization as an entity. Ā is unifi ed approach provides valuable checks and balances in the Green IT eff orts of the organization. An individual, or a single department, can always at tempt to b ecome g reen b y ap plying i ts o wn p rocedures a nd p ractices so l ong a s t he eff ects of these changes is not to increase in carbon and costs elsewhere. Ā e signifi cance of hav- ing an ERBS (whose creation is discussed in detail in Chapter 2) is that it moves the organization away f rom a o ne-off or a d hoc i mplementation of procedures a nd i nstead outlines a l ong-term approach to t he g reening o f t he en terprise t hat en compasses a ll i ts b usiness d imensions. Ā e increasing i mpact o f l egislation a lso i mplies t hat t he d irectors a nd l eaders o f t he o rganization would become responsible for the carbon emissions of the organization. Ā is responsibility of the directors is akin to the responsibility of the directors for the fi nancial performance, governance, and rep orting o f t he c ompany’s fi nancial d ata. A nticipating a Sa rbanes-Oxley ( discussed b y Raisinghani and Unhelkar, 2007) type legislation that impacts carbon performance and report- ing would not be out of place; a legislation that places personal responsibilities of the emissions on the directors.

Green Enterprise Characteristics Ā e d iscussion t hus f ar s tresses t he va rious l evels a nd w ays i n which I T a ff ects t he c arbon fo otprint o f a n o rganization. A t times, IT is the cause of carbon emissions—therefore, switch- ing off computers when not in use produces immediate eff ect in terms of reducing those emissions. At other times, however, IT is a ke y enabler of many business processes; t herefore, in t hose cases, IT has to be used in a cre ative way to bring about reduc- tion in the overall business processes of the organization, such as supply chains and inventory management.

A Green enterprise encompasses various fac- ets of IT as well as non-IT carbon reduction. Switching off monitors and recycling laptops focuses on an important yet small part of an organization. A holistically green enterprise can be achieved by reducing IT’s emission, as well as creatively using IT to reduce the emissions of the rest of the organization. Eventually, the communication capabilities of IT—particularly web services—can lead to collaborative environmental intelligence, which goes beyond a single organization.

16 ◾ Green IT Strategies and Applications

Figure 1 .3 shows t hese va rious l evels at w hich I T a ff ect a n en terprise. E nvisioning t he enterprise is a c onsolidated and green enterprise with diff erent areas of IT directly responsible for em issions, a nd o ther a reas t hat g o b eyond j ust t he I T a spect o f a n o rganization’s c arbon footprint.

Figure 1.3 shows four encompassing l ayers of a c omprehensive Green I T v ision of a n enter- prise, as follows:

IT a s a Pr oducer: ◾ Ā is very fi rst attempt by an organization at Green IT is to handle the emissions p roduced b y t he I T g adgets t hemselves. Ā is, as shown in Figure 1.3, aims to reduce IT’s own emissions that is based on the end-user computer emissions as well as those from the data centers housing the servers and communications equipments. IT as an Enabler: ◾ Ā is area of IT includes its use to enable reduction of emissions across all areas of an enterprise. Ā us, IT systems, supply chains, contents, and metrics together with specifi c CEMS play a role at this level of a green organization. IT governance also plays a role in controlling the procurement and the disposal of IT equipments. Green Ent erprise: ◾ Ā is is the level of an organization that is holistically applying environ- mental strategies to a ll aspects of its business—irrespective of IT. While IT remains a vital part of this initiative, a green enterprise also deals with infrastructure and buildings, people and attitude, legal and standards, and marketing and sales—areas that may not be directly IT but are supported by IT. Green Co llaboration: ◾ Going b eyond a si ngle en terprise, t his i s a c ollaboration o f g reen enterprises t hat may c ome together due to t heir belonging to a c ommon vertical market, or providing collaborative services using web services on a global scale. Ā es e collaborative

Green Collaborations (Consortiums, Forums –Intelligence-)

Green Enterprise (Infrastructure, People, Policies, Legal,

Standards)

IT as Enabler (Systems, Supply Chains, Contents,

Metrics/CEMS)

IT as Producer

(Devices, Data Centres)

Reduce IT’s own Emissions (Management)

Use IT to reduce emissions by rest

of the organization

(IT Governance) Holistic Emission

Reduction— Irrespective of IT

(Corporate Governance)

Green Business Eco- system

(Global Protocols, Standards)

Green Visions

Green Strategic

Points Green Values

Figure 1.3 Envisioning green enterprises—beyond Green IT.

Green IT Fundamentals ◾ 17

organizations a re c onsortium-based ap proaches to g reen en terprises t hat a im to re duce carbon emissions across multiple organizations. W hile they are the most challenging and complex G reen I T e ff ort, they have a far more long-lasting eff ect th an th at o f a s ingle organization.

Green en terprises e xhibit c haracteristics t hat sh ow t heir aw areness i n ter ms o f t heir c arbon emissions t hat c overs a ll d imensions a nd a ll depa rtments o f t he enterprise. Furthermore, g reen enterprises a lso show c lear business s trategies a nd p olicies t hat a re i ntegrated w ith t heir c arbon reduction e ff ect. A stute a nd v isionary c orporate l eadership a nd en hanced p reparedness i n r isk management that identifi es and deals with the strategic pressure points (such as those highlighted by Haas (2004) and Melnick (2005) and further developed by Hercheui (2011)) of the organiza- tion can also be seen in these green enterprises. Ā e Green enterprise and the Green collaborations are the end result of eff ort that is long term and strategic. While the so-called low hanging fruits of small-time eff ort are not shunned, they are also not the main focus of this approach. Green enter- prise characteristics are evident in their individual employees’ attitude, in the end-user gadgets, in the way the data centers are organized, the changes to t heir supply chain systems and the use of CEMS for data collection and reporting. Green enterprises are not only managing and optimiz- ing t heir emissions, but a re showing preparedness for t he e ventual c arbon trade t hat is likely to dominate the coming decade.

Ā e approach to understanding the core characteristics of an organization and bringing about a change in it has been tried in areas such as globalization and process reengineering. For example, according to Bartlett and Ghoshal (1998); also discussed by Lan and Unhelkar (2005), enterprises are encouraged to re view a nd i mprove t heir c ore organization c haracteristics t hat would en able them to succeed in their globalization eff ort. Ā ese approaches are also applicable to a green orga- nizational eff ort. Moran and Riesenberger (1996) have expanded these elements into a number of core organization characteristics that can be called the vision, strategic points, and values. Ā es e core organization characteristics translate to green vision, green strategic points, and green values as summarized in Figure 1.3 and discussed in detail next in the context of a green organization.

Green Vision Green vision is the development of a suitable global strategic vision for an enterprise. Ā is vision, based o n t he a rguments t hus f ar i n t his c hapter, h as to b e n ecessarily h olistic. A s ectional o r fragmentary approach to the vision will not lead to a g reen organization which benefi ts from the carbon reduction eff ort in the long term. It is expected that the CEO, together with the board, will understand a nd a nalyze t he trend of environment factors a nd review t he positioning of t he enterprise as well as the industry in the context of these trends.

Presentation and discussion with the employees and the incorporation of their viewpoints also needs to b e incorporated in this green vision. Ā is green vision can encompass the future of the organization in t he c arbon economy. Ā erefore, t his vision can include not only what a c arbon- effi cient o rganization w ill b e, b ut a lso n ew av enues o f b usiness i n t he n ew g reen m arkets. Ā e green strategic vision will need acceptance and support across the organization.

Furthermore, customers and business partners who will be invariably aff ected by the future changes n eed t o be t aken i n c onfi dence i n t he de velopment o f a g reen v ision. Ā es e external stakeholders can also provide valuable input to this vision, especially if they have themselves experienced change due to their own green enterprise transformation.

18 ◾ Green IT Strategies and Applications

Green Strategic Points Ā e o perational b ehavior o f a n o rganization c annot b e p lotted a s a fl at or a linear graph. Operationally, a n o rganization’s p erformance c an b e v iewed l ike a s eismograph t hat w ill sh ow ups a nd downs at m any diff erent spatial-temporal points within the organization. Ā ese up and down points are the ones at w hich an organization feels stressed—in terms of its carbon perfor- mance a s re lating to t his d iscussion. Ā ese a re t hus t he s trategic p oints of a n organization t hat impact t he structural a nd dy namic a spects of t he organization. Ā e organizational structures— especially i n t he g lobal o rganizational c ontext—have c hallenges, p ressure p oints, a nd o bstacles that are spread across the entire organization. For example, the human resource (HR) department has the challenge, in a large organization, to maintain hierarchies and levels of staff ; but the con- tinuously c hanging business processes subsu me t he e ff ort of m aintaining t he h ierarchies. Ā es e changes result in an unsettled workforce that may not have the right attitude or the desire to gain a positive attitude relating to carbon emissions. At other times, the dynamic, process aspect of an organization creates pressure by having wasteful processes with slack in them, requiring action by management. Temporally, t he organization may do we ll at o ne time in one a rea of business but not so well at others.

Ā us, the organizational structures and dynamics are continuously v ying against each other, creating pressure points. If these pressure points can be identifi ed, then those are also the precise points for action when it comes to g reen enterprises. Ā e development of a g reen strategy, green policies and practices, and eventually a complete transformation, can all be based on these strate- gic points. Particularly in the context of this discussion on Green IT, these organizational pressure points can be understood as the green strategic points. Examples of green strategic points include the need for enterprise architectural stability versus the need to provide dynamic process models, or the need for manufacturing division to i ncrease the throughput versus the need for HR divi- sion to enforce procedures. Ā ese green strategic points put pressure on the decision makers in the IT departments. Examples of decision making includes, say, consolidation of servers versus their virtualization, or as another example, reducing carbon versus undertaking major marketing that would require new servers dedicated to electronic marking.

Ā e organization fe els t he pressure w hen forces pull t he organization i n d iff erent direction: static versus dynamic, structural versus process oriented, high throughput versus effi ciency, and low costs versus low carbon. Ā ese challenges are business challenges, but in the context of Green IT, these challenges need to be seen afresh, keeping the carbon perspective in mind. Ā ere fore, the techniques and procedures used by organizations to create and implement their business strategies can now be reapplied for the development of a g reen strategic plan. A g reen strategic plan is the core business plan of the organization but now produced with respect to the green pressure points of the organization.

Green Value Green enterprises need work on the premise that the eff ort in transforming into a green enterprise has to cre ate a nd m aintain l asting va lue fo r t he o rganization. Ā e cre ation o f g reen s trategies and t heir i mplementation i s e ventually m eant to p roduce t his l ong-lasting g reen va lue fo r t he organization. Ā is va lue i s a c ombination o f t angible a nd i ntangible b enefi ts to i ts em ployees, customers, a nd sh areholders. A s mentioned e arlier, overbearing a nd v isible motivation for busi- nesses to u ndertake green initiatives is business effi ciency and eff ectiveness. W hile t his c an be a

Green IT Fundamentals ◾ 19

wide-ranging a rea o f wo rk, t he f act t hat t he b usiness der ives va lue o ut o f g reen i nitiatives i s o f immediate i mportance i n t his work. Ā is importance of green value to business has to be mea- sured through appropriate ROIs and promoted within an outside of the organization. Metrics for ROI on green investments are discussed in Chapter 3. It is, however, also worth mentioning that some aspects of the green value may not be directly measurable—and may produce returns to the organization that may be intangible.

Green IT Opportunity Ā e strategic approach to Green IT views the carbon challenge as a ctually a g reen o pportunity. E nvironmental i ssues h ave a long-term and strategic impact on the overall business decision- making p rocess o n t he o rganization ( Garnaut, 2 008; S tern, 2007). Ā is also implies that the search for Green IT opportu- nities should also be at the strategic levels, rather than merely at t he o perational l evels. Bu siness o pportunities t hat i nclude sensitivity and response to market conditions, legislative needs, reengineering of business processes, a re alignment of informa- tion ex change, in tegration o f unifi ed c ommunication, a nd, above a ll, c hanging t he business model to a lign w ith e volving business trends a nd market opportunities a re t he ones t hat w ill provide maximum green va lue to the business (based on Sherringham, 2011). Ā is, of course, leads to the direct involvement of business decision makers in the Green IT initiatives of the organization.

Initial involvement of this business leadership in the Green IT initiative can encounter a funda- mental challenge that emanates from a possible viewpoint of the leadership that carbon effi ciency and cost effi ciency are vying against each other. Ā ere is also a justifi able uncertainty around the future of the carbon economic, including carbon off sets and carbon trading. Ā is Uncertainty was evident at t he recently concluded C openhagen su mmit, wherein e ven t he g lobal melee of “non- conclusions” was hailed a s “one small step for mankind.” Eff ective use of green metrics a nd t he resultant ROI indeed take a sm all step, but in the right direction, to demonstrate that costs and carbon effi ciency a re indeed a ligned a long many d imensions of t he business. However, eff ective green metrics a re a chieved only w ith i ncreasing level of m aturity of t he organization a nd e ff ec- tive use of CEMS. Ā is can take time and eff ort that, in themselves, require upfront justifi cation. For example, the purchase of a CEMS or upgrading the data center of the organization will help it ascend the green maturity ladder, but these precise actions need investments that need upfront justifi cation. In order to reduce the pressure on the strategic points of an organization with respect to its green challenges, it is recommended that the intersection between the business priorities and the environment priorities be studied right at the beginning of the initiative. Ā e areas where the two overlap should clearly be the areas where the initial attempt at Green IT initiatives is focused. As shown in Figure 1.4, these intersecting area are where the primary opportunity for Green IT success lies.

Ā is c hallenge i s a lso a kin to t he c lassic C APEX ( Capital E xpenditure) v ersus O PEX (Operational E xpenditure) issue. Green IT’s strategic approach requires C APEX but in order to do so, this initiative has to start demonstrating savings from OPEX (Sherringham and Unhelkar, 2011). Strategically, once the organization moves into the overlapping areas shown in Figure 1.4, the challenges it faces from its Green IT initiatives start becoming more manageable as they are

Green IT is a challenge and an opportunity. The initial attempt by the industry at Green IT was through the so-called low hanging fruits (e.g., acquiring low-carbon emitting monitors and switching off computers in periods of inactivity). These actions still remain important but are by no means stra- tegic. Strategic Green IT views the challenge of reducing carbon emission as an opportu- nity to optimize the business, make it lean, and capitalize on that effort through new markets, different sales approaches, and collaborating with partners.

20 ◾ Green IT Strategies and Applications

also better understood by the entire organization. Ā ese overlapping areas shift the focus of IT to being a utility infrastructure that is used and applied as an assembly line for knowledge workers (based on Sherringham, 2005). For businesses to signifi cantly change t heir environmental foot- print, all of the issues around incumbency (e.g., time, scale, integration, cost, expectation) need to be addressed, while supporting both existing and future requirements of IT and business.

Ā e aforementioned overlapping areas of business and IT encompass many signifi cant activi- ties of an organization. For example, an environmental initiative by a business can include reduc- tion i n u se of paper a nd electricity, i mproved u se of buildings a nd f acilities, re vised d ata c enter management, effi cient end-user computing, supply chain optimization, up-skilling a nd training of people (including dealing with their attitude, concerns, and reporting structures), dealing posi- tively with trade unions, complying with legislations and other regulatory elements, and handling public opinion. In almost all of these areas of activities of a business there is an element of IT that is integrally embedded. Ā e areas where IT and the rest of the business intersect are the areas that off er maximum opportunity for initial success in a Green IT initiative by business. Ā us, the inter- section between the economic and the green priorities in Figure 1.4 is the area of strategic points for Green IT transformation.

Ā is v iewpoint a s a ba sis fo r cre ation o f a n E RBS c an a lso b e j ustifi ed by interpreting an audit by the Australian Computer Society (2007) on the amount of carbon dioxide generated by Australian businesses in their use of IT. Ā is survey indicated that IT as an industry is responsible for 1.52% of the total carbon dioxide emissions, as compared with road transport—12.6%, metal production—2.3%, and the cement industry—1%. Ā e se fi gures indicated that it is the combina- tion of IT and the non-IT aspects of a business that is together responsible for creating the carbon footprint. Ā e se fi gures and the discussion in the aforementioned report also underscore the need to handle environmental issues by creating an organization-specifi c environmental strategy rather than a n IT focused one. W hile t he emissions t hat c an be attributed directly to t he IT gadgetry such a s t he m onitors, l aptops, a nd d ata s ervers c an b e re duced b y s witching t hem off , t he t rue value of a Green IT strategy will emerge only when IT is considered as a Green IT enabler across the entire organization.

Such a s trategic a nd l ong-term ap proach fo cuses o n t he a rchitecture, p rocesses, p eople, a nd technologies to b ring a bout subs tantial re duction i n c arbon em issions o ver a n umber o f ye ars.

Business Priorities

Environmental Priorities

Economic (Increase Profit)

Green (Reduce Carbon)

Real Green IT Opportunity

Figure 1.4 The real Green IT opportunity exists where the environmental and business priori- ties are complimentary to each other.

Green IT Fundamentals ◾ 21

A comprehensive ERBS would judiciously exploit the entire IT domain including its use of software applications and systems, modeling and modifi cation to i ts business processes a nd c hanging t he attitude a nd working style of its people. E xperiences of implementing such a n initiative w ithin a large IT organization have been discussed in the past (Unhelkar and Dickens, 2008).

In addition to these discussions, one of the easiest and vital approaches to understanding and ameliorating the negative eff ects of IT usage by business on the environment has been discussed by Murugesan (2007). Ā ere are also eff orts to outline the approach to Green IT strategy creation as published in a n Australian Computer Society report. A su mmary of a ll t hese approaches can be listed as follows:

Engagement of key stakeholders is considered as a vital fi rst step ◾ Conducting Green IT audits to ascertain the current state of the organization ◾ Setting of internal and external targets that describe the “to be” position of the organization ◾ Developing a nd i mplementing G reen I T s trategies a nd en suing p olicies i n a h olistic ◾ manner Participation and encouragement of the organization’s workforce in the Green IT initiative ◾ and indexing their own rewards and growth to the initiative Use o f a so phisticated m etering a nd re cording s ystem fo r re gular m onitoring o f c arbon ◾ emissions Publicizing and promoting the green initiatives—both internal and external to the organi- ◾ zation through a range of channels Maintenance of ethical standards in promotion of green achievements ◾ Formation of consensus within the organization on the Green IT initiative ◾ Creation of a comprehensive green enterprise transformation programmed optimization of ◾ IT resource usage ba sed on positive changes in attitude a nd underlying shift in t he use of technologies Virtualization of servers and workstations to enable consolidation of hardware and its power ◾ usage Introduction of ISO 14000 family of green enterprise standards within the organization ◾ Focus on integrating networks and communications, including internet telephony that will ◾ consolidate power requirements within and outside the organization. Detailed consideration of ren ewable en ergy so urces a nd m aking t he c hoice o f u sing en ergy p recisely f rom t hose sources despite potential increase in energy costs

Ā ese aforementioned considerations can be seen to include green issues integrally in the busi- ness strategies. Ā ese considerations are based on an understanding that opportunities for Green IT and those for an organization’s growth go hand-in-hand. Ā ese Green IT considerations and approaches en d u p p roviding t he o rganization w ith o pportunities fo r o verall su stainability a nd growth. A similar holistic, unifi ed approach to business transformation has also been discussed by Unhelkar (2010a and 2010c) in detail in terms of mobile technologies.

Ā e greening of a n enterprise c an t hus be considered a lmost a s a b enchmark of t he w isdom of the enterprise. Ā e wiser the enterprise, the greater are the chances that it will use its available resources in the most optimum way possible. IT can be put to g reat use in order to i mprove the capacity of t he organization to produce goods or enhance services a nd in t he process ma ximize the environmental value.

Ā us, i mproving t he p roduction c apacity a nd m aking i t e ffi cient n ot o nly re duces c osts, but a lso has a p ositive i mpact on t he environment. For e xample, u sing mobility to en hance t he

22 ◾ Green IT Strategies and Applications

supply c hain m anagement s ystem o f a p harmaceutical c ompany re sults n ot o nly i n t ime a nd cost savings, but also benefi ts t he en vironment. Ā is is so because, the Mobile Supply Chain Management (M-SCM) with its mobile-enabled business processes reduces wastages, particularly in terms of packaging and distribution of information bet ween stakeholders (discussed in detail in Chapter 5).

Similarly, a business dealing with distribution of goods and materials using a mobile Enterprise Resource Planning (M-ERP) solution fi nds that the ensuing optimum routing of transport facilities not only reduces costs and enhances customer value, but also provides a positive value to the environ- ment by reducing unnecessary goods and people movement. Ā ese various environmental advantages need to b e kept in mind in production, distribution, recycling, design, process, and service related activities of an organization when it incorporates mobile technologies in its business processes.

Challenges of a Carbon Economy Ā us far, t he entire Green IT eff ort of a n organization pr imar- ily emanates today from t he inevitable obligatory nature of t he upcoming c arbon e conomy. Ā is i mplies a m andatory n eed to produce and implement a comprehensive program for the green- ing o f t he en terprise. I n a ddition, i n h andling t he re gulatory compliance re quirements, a c arefully cr afted g reen en terprise program w ill v iew t he c hallenge o f c arbon c ompliance a s a n opportunity fo r o ptimizing b usiness p rocesses a nd e xploring business g rowth. Such well-crafted programs not only produce immediate results in reducing power consumption, but include the approach to handling challenges of sustainability of the sup-

ply chain, strategic planning around sustainability, and incorporating sustainability requirements throughout processes, applications, operations, and infrastructure of an enterprise.

Ā e carbon economy revolves around rising energy prices, concerns about energy sustain- ability in t he long run, a nd t he ensuing pressure from society to re duce GHG emissions related to fossil fuels (Unhelkar and Dickens, 2008). Kahn has pointed out that the market mechanism fails to allocate resources effi ciently when private costs are not equal to social costs or when private benefi ts are not equal to social benefi ts. Ā is situation can be balanced by environmental legisla- tions at the government level and environmental policies at the organizational level.

Carbon economies in the developing countries, however, are unlikely to respond to the carbon reduction challenge only through legislations or negotiations. In those economies, direct enforce- ment of regulation by polluters, an approach disdained by most economists, has been the most widely used method of pollution control (de Steiguer, 2006). Ā e challenges of carbon protocols and agreements in the context of developing economies are outlined in Chapter 10.

A p rogram fo r t he g reening o f t he en terprise i s a bout b usiness t ransformation a nd o rgani- zational c hange. C hanging t he m indset o f p eople, b ringing a bout c hanges i n t heir p ractices, and dem onstrating t he va lue o f t he g reening e ff ort a re a ll cr ucial i ngredients o f t his c hange. Understanding what t he g reen t ransition entails, its goals, a nd t he t ransformation process itself (discussed i n de tail i n Chapter 9) re quire l eadership a nd su pport t hat n eeds to c ome f rom t he top e chelons o f t he o rganization. A s R osen e t a l. (2011) rep ort, w hen enterprises, suc h a s S AP, DuPont, Google, and Georgia-Pacifi c, create the position of Chief Sustainability Offi cer (CSO), they signal their commitment to implement sustainability throughout the business. Ā e role of a

The environmental science per se is a fi eld in which most knowledge depends on the effi cient overlapping of what we know generically with what might be a specifi c carbon issue in an organization. In practice, the carbon reduction action taken within the context of certain department or process feeds back to the more generic sustainability knowledge. Knowledge management sys- tems facilitate a continuous loop between the localized, subjective knowledge and the stored, explicit knowledge in the systems.

Green IT Fundamentals ◾ 23

CSO (or, as discussed in Chapter 3, that of a C hief Green Offi ce, CGO) signals and establishes a high-level commitment from an organization—as this role works closely with that of the CEO to foster holistic green movement external to and surrounding the organization. Ā e CSO/CGO aspires for a strategic rather than tactical change—coming up with business strategies incorporat- ing Green IT, setting up of sustainability policies and practices throughout the organization and fostering the formation of working groups to discuss the challenges, and bring about a consensus in adherence to standards and protocols relating to green initiatives of the organization. Ā e CSO has the necessary authority, infl uence, and expertise to bring about organizational change.

Elements of this change require project a nd program management, HR, a nd marketing a nd communications. An interesting view expressed by Rosen et al. is that the enterprise architecture (EA) of an organization also provides an excellent mechanism for handling the challenges of sustainability ( Ross, Weill, a nd R obertson, 2 006, f urther de veloped by R osen e t a l.). Ā is is so because t he sk ills, f rameworks, a nd practices re quired for E A h ave b een proven i n other t rans- formative initiatives and, therefore, lend themselves to a green enterprise transformation as well. An architectural approach provides a c onceptual framework that divides the problem space into smaller, more manageable pieces. Ā e EA provides an understanding of both the breadth and the depth of the enterprise. Ā us, the use of E A in a Green IT initiative can be considered as a very good technical option that enables handling of the many architectural challenges and constraints that remain embedded in the overall challenges of green transformation.

Apart from the technical challenges, there are also social challenges associated with the green initiatives. Ā e basic challenge in this social context is the acceptance of the green initiative across the entire organization. In practice, some sections of the user groups are convinced of the eff ort, others are skeptics, and then there are some who may actively work against the eff ort. Ā e reasons for t his va riation i n Green I T support c ould b e t hat t he ter ms Green I T a nd su stainability a re themselves susceptible to varying interpretations. Added to that is the fact that the level of interest in sustainability by each individual varies depending on a combination of personal and profes- sional goals of t hat stakeholder. For e xample, a b usiness a nalyst i n t he customer service depa rt- ment has diff erent concern of sustainability than that of a manager in the data center. Ā e former wants f ast, f ail-safe re trieval o f i nformation to en sure t he b usiness’s fi nancial v iability. Yet t he latter wants to re duce redundant s ystems to de crease power c onsumption for both t he fi nancial viability and the environmental responsibility of the business. Both the analyst and the manager may be concerned about sustainability, but their views of what is necessary to sustain are diff erent based on their own perspectives.

Ā us, this challenge associated with the subjective nature of Green IT, which has to deal with both individual and collective attitude of the organization, requires signifi cant eff ort in education and training, internal promotion of the initiative, and creating and sustaining an ongoing atmo- sphere of environmental responsibility. Inculcating a nd supporting environmental responsibility and su stainability i nto a ll t he p rocesses a nd p ractices o f t he o rganization a nd p romoting t hem internally i s a pa rt o f h andling t his c hallenge. I dentifying a nd o perating a su itable re warding structure for eff ort toward the environment is another one.

Ā e c omplex, subjective n ature of Green I T re quires f urther at tention to t he organizational context. While some generalization is acceptable, there is still usually a specifi c issue and a specifi c challenge that depends on the people, processes, and technologies within the departments of an organization where it is being applied. Ā e contextual nature of Green IT and its metrics is dis- cussed in greater detail in Chapter 3.

Ā us, the individual sustainability requirements need to be considered in the context of other requirements of the business and the entire approach needs to be holistic. Ā e infrastructure and

24 ◾ Green IT Strategies and Applications

operations of the business also need to be aligned with the overall green goals of the organization (this is discussed in greater detail in Chapter 2). Eventually, the entire context in which the green initiative is applied in an organization becomes a multidimensional green enterprise transforma- tion program (see Chapter 9 for greater details).

An i nteresting c hallenge t hat t raverses b oth te chnical a nd so cial d imensions i s t hat o f t he terminologies w ithin t he environmental domain. For e xample, i n t his c hapter itself, ter ms suc h as environmental responsibility, Green IT, sustainability, and green enterprise have been used. A separate s ection i n t his b ook at tempts to de scribe a nd, i n t urn, c larify t he meanings. However, being a nascent domain, the work in this environmental space is likely to be challenging in terms of t hese ter ms. De spite a ll t he de fi nitions, one m ay fi nd t hat t here a re ter ms w hose meaning i s not clearly defi ned or well understood. For example, the term Green IT itself, as discussed in this chapter and this book, has diff erent meanings and interpretations. Ā e need for a common set of terms and defi nitions could not have been higher, requiring an international initiative from ISO and consortiums (Kamani, 2011).

Later, as discussed in Chapter 3, the carbon metrics and their measurements is also not very clear. Governments, scientifi c bodies, organizations, and individuals are all uncertain about how to measure carbon. Carbon calculations, in some approaches, require assumptions that create fur- ther uncertainty in arriving at the carbon footprint of an organization. Ā is uncertainty impacts Green I T s trategy a nd p olicy formation e specially a s t he r ules a nd re gulations su rrounding t he green domain are vague and open to interpretation.

Environmental sustainability requires defi nition of parameters for measuring the carbon foot- prints. Maturity levels and benchmarks of best practices in environmental management are a lso required. L ack o f suc h b enchmarks a nd b est p ractices cre ate o bstacles i n b ringing a bout g reen enterprise transitions. Convincing the users of the utility of their eff ort through robust measures is as important as convincing the CEO of an organization of the same eff ort.

Following i s a l ist of c hallenges f aced by organizations i n t heir endeavor to b e re ady for t he carbon economy:

Contextual nature of the environmental sustainability initiative ◾ Subjective nature of Green IT that depends on the context and also on the personal motiva- ◾ tion of the individual Lack of robust metrics and measurements associated with Green IT ◾ Lack of understanding of drivers for the environmental sustainability initiative ◾ Likely confusion due to number of motivators and drivers for a green initiative ◾ Lack of robust metrics and measurements across all dimensions of an organization ◾ Lack of availability of substantial “winning stories” and corresponding supporting metrics ◾ Uncertainty i n ter ms o f r ules a nd re gulations t hat c an b e ap plied a nd a dhered to w ith ◾ confi dence Uncertainty i n ter ms o f t he sc opes o f t he em issions to b e i ncluded i n t he c alculations ◾ (e.g., measurements of the scope 3 emissions; scopes are discussed in Chapter 3) Technologies such as virtualization, thin clients, and Cloud computing are implemented in ◾ organizations, but not for improving its environmental performance Lack of justifi cation (ROI) for investing in the environmental sustainability solutions ◾ Nonrecognition of ineffi cient businesses processes and lack of corresponding business process ◾ management Uncertainty i n ter ms of t rying out new products a nd services t hat m ay be eco-friendly a s ◾ they may disturb the existing processes

Green IT Fundamentals ◾ 25

Overall shortage of consulting and in-house skills in the area of EI ◾ Facilities l ike d ata c enters c annot be replaced a s quickly a s t he servers i nside t hem due to ◾ high i nfrastructure c osts—leading to a m ismatch b etween t he h ardware a nd t he f acilities that house them Skepticism from various sections of an organization including, occasionally, some part of ◾ the leadership Ā e u ncoordinated emergence of m acroeconomic levers (such a s c arbon t axes a nd c arbon ◾ trading) that are also not uniform across regions Disagreements amongst nations—especially divided amongst the developed versus develop- ◾ ing economies—to ratify and implement Stringent environmentally sustainable legislative and regulatory frameworks ◾ Lack of accountability on the part of staff for their own carbon emissions—perhaps due to ◾ lack of feedback metrics Smart/auto meters not suffi ciently integrated with the CEMS ◾ Lack of choice in terms of strategies for cultural change ◾ Emerging i nformation a nd c ommunications t echnologies a nd c orresponding i nnovations ◾ make early attempts at reducing redundant carbon emissions Lack of overall industry experience in business transformation programs that are specifi cally ◾ aimed at Green IT Highly complex supply chain systems that include collaboration amongst multiple organi- ◾ zations—making it extremely challenging to implement environmental initiatives across the entire supply chain Operational re quirements u sually t aking p recedence o ver s trategic ap proach to t he ◾ environment

Environmental Intelligence Ā e d iscussion t hus f ar h as b een o n t he s trategic, h olistic approach to environmental sustainability that is based on mak- ing the best use of the IT resources available to the organization. Examples of t his u sage of IT resources include optimization at the end-user level, virtualization at t he server level, a nd reengi- neering of processes. Procuring and installing a CEMS is also a part of this utilization of IT resources—but from a systems and applications viewpoint. An interesting part of this extension and use o f I T re sources c omes f rom t he e xtension a nd ap plication of the concepts a nd technologies of business intelligence to t he environmental initiative of the organization. Ā is is discussed in detail next.

Business Intelligence Business intelligence derives knowledge, or insights, by analyzing an organization’s information. Ā is in formation c an be o f ma ny d iff erent t ypes i ncluding c arbon d ata, fi nancial d ata, en vi- ronmental pa rameters, h uman re lations d ata, a nd o rganizational s trategy d ata. Ā ese da ta a nd

Intelligence, in fact, is an interesting con- cept. Attempts are being made on a regular basis to incorporate intelligence in com- puting (e.g., through Artifi cial Intelligence). Progressively complex use of data and information, creation of dynamic and varied business processes, and use of knowledge management systems are all attempts in this direction. For example, attempts are made to enable vast data warehouses to commu- nicate through service-oriented technolo- gies and expand to include analytics and correlations amongst otherwise unrelated information to produce actionable knowl- edge. Intelligence, in business, has been a summation of all these technologies and processes—and some more.

26 ◾ Green IT Strategies and Applications

information a bout t he o rganization c an p otentially re side i n si los t hat m ay n ot e asily i nterface with each other. Ā e c hallenge fo r t he o rganization i s to c orrelate t hese va ried p ieces o f i nfor- mation—and t heir subs equence a nalysis—in a w ay t hat p rovides o pportunities fo r i t to cre ate actionable steps, including those that enable it to undertake a green enterprise transformation. For example, an operational support system in a telecommunication company will have a need to cor- relate its switch maintenance information to the billing support system. Ā is correlation will help the organization understand and prioritize its switch upgrades based on the clusters of customers and t heir bill pay ment pat terns. Similarly, a n E lectronic Patient R ecord ( EPR) s ystem needs to correlate with an accounting or HR system in a hospital to be able to glean valuable knowledge on planning a nd organizing pat ient s ervices. Ā e a bility to c orrelate suc h i nformation si los h as potential application in the domain of environmental sustainability.

In t he e arlier e xamples, t he telecom c ompany c an t ake action on c ontinuing w ith t he e xist- ing s witch g ears or upgrading t hem. Similarly, t he E PR tog ether w ith t he H R s ystem c an help in sc heduling t he r ight s taff for t he pat ients on a n a lmost re al-time ba sis. Ā es e organizational processes have greater value when they are based on business intelligence as through the BI tools, information a nd k nowledge i s p rovided at a t ime a nd p lace w here i t i s n eeded. F or e xample, instead o f p roviding a m onthly o r a d aily rep ort, B I p rovides t hat s ame i nformation t hrough interactive graphics on varied mobile devices to the decision makers. Ā e data itself can be sourced from places beyond the organizational boundary.

Ā us, increasingly, through the potential off ered by BI tools, practitioners are considering BI as a suite of technologies that are well positioned to be used with regards to the environ- mental i nitiatives o f t he o rganization ( Unhelkar a nd Tiw ary, 2 011). S uch u se o f B I fo r t he environment would c ombine people together w ith t he a forementioned technologies a nd pro- cesses (Unhelkar and Tiwary, 2010). Ā e systems and applications for BI include CR M pack- ages, Supply Chain systems, Wikis a nd Blogs a nd E xecutive Da shboards. Ā e se technologies make u se o f C loud c omputing, S oftware-as-a-Service ( SaaS) a nd Web X .0. N eedless to s ay, this intelligence g arnered by t he business a lso has immense potential to i mprove its environ- mental credentials. Ā is is so because, BI brings together an organization’s existing as well as new carbon data and provides insights that can be used in timely decision making. BI off ers an excellent opportunity to make use of both t hese categories of data a nd information, a s is explained next.

Application in Environmental Domain Ā e potential for use of BI in the environmental domain is on the rise. Extending and using BI to progress environmental goals of the organization will benefi t both the environment and the busi- ness as well. Ā is is so because combining BI with the environmental factors results in an approach that is not based on treating carbon reduction only as a cost to business. Instead, the EI approach brings together the tools and techniques of BI to a chieve the dual purpose of business and envi- ronmental effi ciency. EI garners all available resources at t he disposal of the organization—both within a nd outside of t he organizational b oundary—and applies it to re duce t he organization’s carbon emissions without sacrifi cing its core business goals. EI also enables an organization to gain insights into its carbon performance as well as opportunities for carbon ameliorating behavior. Ā is is a sensible, long-term approach to sustainability in business.

While the focus of BI is primarily on business effi ciency, EI extends and applies BI for envi- ronmental e ffi ciency. E I c an t hus b e c onsidered a s a su perset t hat en compasses B I. E I re sts o n

Green IT Fundamentals ◾ 27

the principle that if a business is honestly made lean and effi cient, than in most cases it will be a carbon-effi cient business. A business leadership that subscribes to such intelligence will imbue its people, processes, and technologies in organizations with a unique value system that easily corre- lates business effi ciency to the environment. As a result, every decision associated with every work- package in the organization will be aff ected by carbon consciousness; this includes procurement of new technologies, up-skilling of staff , reengineering of processes and organization of resources (Sharif, 2010).

EI t hus goes beyond only installing a nd using a n ew CEMS. Instead, service-oriented inter- faces that enable the creation of a Green IT portal that uses internal and external information on the environment is the result of EI. EI requires an understanding of the current business processes; the w ay p eople u se t hose p rocesses, t he c urrent p roduct/service p ortfolio, a nd t he u nderlying technologies t hat su pport t he b usiness. F urthermore, t he o rganization n eeds to g ain o r i mport substantial practical application in converting, expanding, and applying EI in a way that does not reduce the existing Key Performance Indicators (KPIs) of the organization.

For example, business processes can be improved and optimized to reduce their carbon contri- bution through collaboration with other business processes—both within and outside of the orga- nization. I mplementations o f c omprehensive so ftware s ystems r iding o n t he I nternet communications can be updated and fi ne tuned to record and report on carbon emissions based on the assets and inventories data sourced from the ERP systems of the organization. Upgrading the skills of the people that would eventually refl ect the changes in their attitude will require coor- dination and collaboration with the HR system as well as part of CEMS that record attitude and behavior surveys. Furthermore, Emerging technologies such as Cloud computing, Mobile tech- nologies as well as the existing ERP and CRM systems in the organizations, are reined in, modi- fi ed, a nd dep loyed w ithin t he o rganizations to h elp t hem d ischarge t heir en vironmental responsibilities. Ā us, a ll si gnifi cant a spects o f b usiness i ntelligence g et e xtended a nd ap plied toward t he en vironmental re sponsibility. Table 1.2 su mmarizes t his B I to E I i mpact a cross t he technical process, social and economic dimensions of an organization.

Figure 1.5 shows the creation of EI based on the existing sys- tems and data warehouse of the organization. Ā e CR M, ERP, and SC M s ystems w ill a ll u ndergo m odifi cations a nd u pdate as t he organization moves toward E I. Ā e se modifi cations will primarily de al w ith m aking provision for c alculation a nd s tor- age of carbon data associated with the assets and processes of the organization. Ā e addition of new carbon-related data as well as the quality of existing data will come under scrutiny in this process of moving toward EI.

BI to ols, u sually p laying a m ajor ro le i n t he a ccounting departments, tend to be focused on monitoring inventory, costs, down times, and customer service. Ā ese same tools, with appro- priate modifi cations c an now, w ithin EI, a lso forecast c arbon impacts, re venue growth or losses associated with carbon performance, and, eventually, get the organization ready for carbon trad- ing in the future.

EI will encounter opportunities to provide carbon performance executive dashboards that can analyze data across multiple systems to present the carbon-picture of the organization. Ā e CEMS will have its own database that will focus entirely on carbon data and associated analysis; however, this will be achieved by its interfaces with the other organizational systems such as CRM, ERP, and SCM—as shown in Figure 1.5.

Technologies, sociocultural aspects, busi- ness processes, and economic calculations provide the four dimensions or areas along which environmental intelligence can be applied. These are the four areas of a busi- ness that are impacted when any change takes place. In the context of the environ- ment, technologies create, and are used to reduce, emissions; attitude is changed through training and education; business processes require modeling, optimization, and governance; and the ROI metrics for a green transformation project provides the fi nancial basis for initiating the change.

28 ◾ Green IT Strategies and Applications

EI would not only deal with the existing structured data relating to carbon and noncarbon headings, b ut w ill a lso e xplore t he u nstructured a spects o f t he o rganization: em ail e xchanges amongst g roup o f em ployees, c ollaborative i nformation e xchanges w ith e xternal pa rties o f t he organization, analysis of meeting minutes, and corporate events to name a few. All these data can be correlated with each other through BI tools such as mashups, IMS, Web 2.0, Cloud computing,

CRM SCM

Carbon Data in Existing DB + New Carbon DB

Content Management Systems (Data Warehouse—ERP, CRM, SCM and CARBON DB)

Environmental Intelligence

CARB ON

ERP CARBON CARB

ON CARB

ON

My Organization

PR OC

ES S

PE OP

LE

COLLABORATING

ORGANIZATIONS

TE CH

NO LO

GY

Figure 1.5 Environmental intelligence intersects people, process, and technologies, and creates new correlations in the organizational data warehouses.

Table 1.2 Business to Environmental Intelligence Impact across the Technical Process, Social and Economic Dimensions of an Organization

Organizational Dimensions BI to EI Impact

Technologies Use of Smart meters; implementation of CEMS; modifi cation to existing software systems and packages to incorporate carbon data

Processes Equipment and infrastructure lifecycle to change—now including carbon factors in all activities and tasks. Green business process management

People Attitude change brought about by training and education. Indexing personal growth to carbon reduction. Green HR

Economic Reimagination of fi nancial growth through carbon. Incorporating carbon calculations in micro- and macroeconomic functioning of the organization

Green IT Fundamentals ◾ 29

and m obile te chnologies, to a nalyze, fo recast, c ollaborate, a nd fi gure o ut h ow t he o rganization is performing now, a nd what can be intelligently undertaken in the f uture, to re duce its carbon footprint.

A s ensible a nd c arefully cre ated environmental s trategy w ill not only h andle t he i mmediate environmental i mpact b ut w ill a lso i nclude c arbon p erformance a s a pa rt o f i ts r isk m anage- ment approach. Ā e products, services, and infrastructure of the organization is investigated and optimized to cre ate g reen va lue—not j ust re duce t heir c arbon em ission. Ā e environmentally conscious practices of suc h a n organization a re not just re stricted to i ts I T e quipment a nd pro- cesses; instead, this becomes an all-encompassing adventure by the organization that also includes consideration fo r i ts u se o f n atural re sources suc h a s w ater, a ir, a nd su nlight. Ā e organization endeavors to re duce em issions across its entire va lue c hain, i ncluding its suppliers, its operators, and eventually its disposal policies and practices.

Envisioning the Green Future Ā e future economy is the carbon economy. Bradfi eld-Moody and Nogrady (2010) have described this phenomena very well a s the “sixth wave.” Trust in a g reen f uture is a c ombination of sk ills, processes, leadership, technologies, and sound fi nancial modeling for the future to keep the green credentials of the organization and its collaborating partners in mind. Ā e futuristic technologies and business models associated with Green IT are discussed further in Chapter 11. Certainly, the generation that is studying in schools today will be diff erent to t he Gen-X or Gen-Y or any such generation; it w ill b e m ost l ikely a G en-G (for G reen). Ā ese c ustomers o f t he f uture a re m ost likely to b e a g reen consumer a nd will expect t he organizations of t he f uture to b e prepared for green consumers.

Ā e anticipated impact of emerging technologies is also not necessarily carbon negative. Ā e design, development, production, and distribution of new generation of computer monitors, lap- tops, servers, and associated processes will all be impacted by the incessant pressure to produce carbon-effi cient a rchitectures, de signs, a nd de velopment. Ā e b usinesses o f t he f uture w ill b e ready to h andle t he i nfl ux o f n ot j ust n ew c arbon g eneration e quipments b ut t he h igh-end, well-designed, and low-power emitting equipment that will require a diff erent approach in their usage.

Businesses preparing for carbon trading that, while in some ways being similar to the current stock exchange, will have additional variations due to assignment of diff erent values to such trades. For e xample, t he u nit of c arbon (as d iscussed l ater i n Chapter 3) i s l ikely to h ave its “exchange rate” with corresponding cash currencies, equities, and options.

Ā e “ temporal w indows” w ithin w hich t he em issions o f a n o rganization, a n i ndustry, o r a nation i s measured a nd v iews i s itself a v ery fl uid c oncept. Ā e f uture of g reen/carbon i ndustry remains fuzzy because of this uncertainty of “how long back” one should go to ascertain the total cost of c arbon production—by a n organization, industry, or nation? Time w ill be a cr ucial fac- tor, as a unit, in the mix of futuristic macro- and microeconomic levers that the governing bodies will use to regulate the future emissions of business organizations. Ā e total free market economy where the only index is “cash” will have to give way to “cash-and-carbon.”

Renewable en ergy so urces a re sub jected to si gnifi cant e xploration. O rganizations h ave t o reimagine t hemselves i n t he l ight o f n ew ren ewable en ergy so urces. Chapter 11 e xplores t he possibilities further.

30 ◾ Green IT Strategies and Applications

Discussion Points What do we mean by Green IT? ◾ How does IT relate to business? What is the impact of this close relationship between IT and ◾ business on the environment? What would be a good, astute approach to environmental leadership? ◾ What are the major factors that contribute to carbon emissions in an organization? ◾ What role do people play in improving the Green IT performance? ◾ What are the local and global standards for green organizations? ◾ What are the major internal organizational considerations in an environmentally conscious ◾ approach (e.g., Employee buy-in management commitment)? What a re t he m ajor e xternal c onsiderations i n a n en vironmental i nitiative ( e.g., m edia, ◾ activities, consumer)? What are the likely repercussions of an EI approach to carbon reduction? Are there mecha- ◾ nisms to automatically record and use carbon-related data (such as interfaces to accounting systems that maintain records of the power bill)? Are there opportunities for executive dashboards on carbon performance (alongside) fi nan- ◾ cial performance of the organization (using tools and techniques of Business Intelligence)? What are the opportunities to use mobile technologies and devices in the carbon mitigation ◾ strategies? Where do yo u see the maximum buy-in at t he start of a c arbon mitigation initiative—the ◾ directors in the boardroom, the middle management, and administrators or the operational staff on the ground? Where a re t he opportunities for re al-time c arbon d ata a nalysis a nd t rend plotting w ithin ◾ your IT systems? What i s t he i mpact o f t he Gl obal F inancial Cr ises ( GFC) o n e xisting o r p otential g reen ◾ initiatives? What is the impact of networking and social technologies (such as blogs, wikis, interactive ◾ media, etc.) on green initiatives? Where is Green initiative/movement likely to go in the next 1, 3, 5, and 8 years? ◾

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35

2Chapter

Green IT Strategies: Drivers, Dimensions, and Goals

Some e xperiences a re so i ntense w hile t hey a re h appening t hat t ime s eems to s top altogether.

Al Gore, An Inconvenient Truth

Key Points Presents G reen I T s trategies a s en compassing a nd E nvironmentally R esponsible Bu siness ◾ Strategies (ERBS). Outlines the approach to developing specifi c organizational Green IT strategies. ◾ Presents t he f our d imensions of bu siness t ransformation (economy, t echnology, pr ocesses, ◾ and people) along which green business transformations can take place. Presents a pproaches t o m anaging t he c hallenges in es tablishing gr een s trategies in a n ◾ enterprise. Outlines the factors that drive and infl uence an organization’s green business strategies. ◾ Outlines t he en vironmental l egislations a nd re gulations, a nd p roposes a n ap proach fo r ◾ compliance. Discusses the steps involved in the implementation of an ERBS. ◾ Presents some ke y p erformance i ndicators ( KPI) for re duction of energy c onsumptions i n ◾ an organization.

Introducing Green Strategies Green strategies outline a long-term and unifi ed approach of an organization toward environmen- tal re sponsibility. Green s trategies i nclude Green I T, but a s a rgued i n t he opening c hapter, t his consolidated ap proach to G reen I T i mplies d ue c onsideration to a ll a spects o f a n o rganization

36 ◾ Green IT Strategies and Applications

from the environmental viewpoint. Individuals and business areas within the organization move at d iff erent sp eeds a nd h ave va rying a nd o ccasionally c onfl icting priorities. A unifi ed approach would accommodate these variations and, at t he same time, not restrict the organization on the basis of immediate visibility of its return on green investment. Ā e green strategic approach con- siders both internal and external organizational characteristics, including its structure, dynamics, macroeconomic incentives, compliance constraints, and the need to align corporate social respon- sibility with mainstream corporate business. Realignment of existing business strategies to a new set of environmental objectives requires the organization to rei magine itself. Such reimagination and green transformation is the mainstay of the approach described here.

Ā us, the crux of the discussion in this chapter is a new, unifi ed organization that treats car- bon issues and performance integrally. In addition to this aligned, unifi ed approach to alignment lean, g reen business, t he r apidly a dvancing c arbon e conomy i s a lso l ikely to off er opportunities for many new business ventures that are specifi cally in the green domain. Diversifi cation, mergers and acquisitions, expansions a nd creation of new business streams a re a ll highly likely scenarios in the carbon economy—and a strategic approach is invariably required to prepare organizations for these opportunities. Green strategies have wide ramifi cations, not only on the way the business interacts w ith e xternal a nd i nternal en tities, b ut a lso w ith i ts i nternal o rganizational s tructure, attitudes, policies, and practices.

Esty and Winston (2006) discuss some of these business strategies for building an eco-advan- tage that revolve around the eco-friendly approach to business. Ghose (2011) has also expanded on the approaches to Green IT strategies that consider holistic approach to environmental conscious- ness based on micro- and macroeconomic factors. Ā is holistic approach exploits IT to its fullest, but is not restricted to I T. For example, such comprehensive green strategy would also cover the organization’s supply chain, reusable designs, production processes, recycling approaches, attitude of its people, and the risks associated with changes. For example, incorporating RFID tags in the supply chain will not only help the organization manage its inventories better, but will also open up opportunities to re duce its c arbon footprint due to re duced material wastage. Ā us, a G reen IT strategy, as discussed here, includes wide and varied dimensions of a business that are not just restricted to computing per se. Ā e hallmark of such green business strategies is that they provide a much more robust foundation for sustainability to the organization than, say, focusing on IT alone wo uld p rovide. Ā us, b usiness o ptimization p rocesses (e.g., L ean o r S ix-Sigma), w hether IT fo cused o r n ot, b ecome i mportant to t he g reening o f a n o rganization. C onsider t he u se o f Lean. Lean as a method, aims to eliminate the wastages in the organization’s processes. Ā e same method c an b e i nterpreted a s o ne p roviding o pportunities to a meliorate c arbon em issions to o. Optimization a nd/or elimination of activities within business processes dr ive not only business effi ciency but also carbon effi ciency. Gartner (2009) identifi ed business process improvement a s the top most priorities for CIOs in making a diff erence to their organization. Ā us, green business strategies are combination of extending existing business strategies as well as coming up with new strategies that have a specifi c environmental focus.

Care needs to be taken to ensure that the new elements of a Green IT strategy are not too far removed from the core business strategies of an organization. Instead of coming up with a brand new green strategy that does not align with the core business of the organization, it is worthwhile con- sidering the overall strategic approach to the environment as a business approach—environmentally responsible business strategies (ERBS, 2010; Unhelkar, 2008)—that are the business strategies.

Ā e alignment of business strategies with the environmental consciousness of the organization can be best viewed as an intersection between business and carbon interests of the organization (as was discussed in Chapter 1 and depicted in Figure 1.4). As a result, eff ective Green IT strategies need to

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 37

continuously demonstrate their value to business. Ā e discussion in this chapter focuses on creating and implementing strategies that would enable an organization to survive and thrive in an increasingly carbon-dominated future by encompassing its people, processes, and technologies in the strategies.

ERBS is a conceptual framework that has evolved from earlier works by Unhelkar and Dickens (2008) a nd f urther re fi ned t hrough re search b y U nhelkar a nd Trivedi ( 2009). Ā e E RBS a s a framework has been further developed, extended, and published as a Cutter Executive Report by Unhelkar (2010). Ā is model is being refi ned on an ongoing basis and is fi nding support in various business transformation and business intelligence domains—being called green enterprise trans- formation (GET) and environmental intelligence respectively.

In addition to the ERBS, there are several other frameworks and models that can be considered as a ba sis fo r E RBS. R esearchers a nd p ractitioners i n t he fi eld o f G reen I T h ave de veloped t heir thinking further in this domain and abstracted it as frameworks. For example, Philipson (2009) has developed further an original RMIT (Molla, 2009) framework for Green IT into a fairly comprehen- sive Green IT framework that can be used in practice to model an enterprise from an environmental perspective. Ā is model is discussed later in the book (Chapter 9, Figure 9.5) as an excellent option to be considered during GET also see Connection Research, 2010. In addition to these, there are other Green I T f rameworks suc h a s t he GI TAM (M olla, 2 009), Worthington ( 2009), a nd P rocedural Model toward Sustainable Information Systems Management (Schmidt et al., 2009). Ā es e models or frameworks for Green IT provide valuable input into the development of an ERBS.

Ā is chapter initially discusses t he va rious drivers t hat provide a m ajor fi llip to a business in its considerations to u ndertake g reen business s trategies. Ā e d rivers t hat motivate a n organization to formulate a n approach to a su stainable f uture need to b e c onsidered i n t he c ontext of a pa rticular enterprise and the industry sector. Ā e type, size, and location of a business, all infl uence the way in which the business would interpret and use these drivers and motivators to u ndertake GETs. Ā es e drivers sh ape t he re sponse o f a n o rganization a nd i ts l eaders i n o vercoming i ncumbency to m ake investments i n Green I T a nd organizational t ransformation. Ā e d iscussion on w hat m otivates a n organization needs to be followed by a discussion on the lines or dimensions along which an organiza- tion needs to transform itself. Ā is chapter develops the four dimensions for Business Transformation (BT) outlined earlier by Unhelkar (2008). Ā ese four dimensions of economy, technology, processes, and people provide the foundation for creation of a roadmap, or a project plan, for GET. While the detailed description of the GET process is available in Chapter 9, this chapter outlines and describes these four dimensions in the context of Green IT, followed by a description of what exactly constitutes a green business strategy and the steps involved in the creation of green business strategy.

Green Strategic Mindset Eff ective green strategies result from an approach that cuts across all the tiers and silos of an orga- nization. Such strategies come from individual understanding, leadership, vision, knowledge about the structure and dynamics of the organization, awareness of the operational nuances of the organi- zation, and the attitude of people (stakeholders) to utilize change. Such individuals would be read- ing, training, rewarding, promoting, educating, sharing, and encouraging everyone around them to de velop f urther t hat g reen s trategic m indset. A m ajor b enefi t of d eveloping a n or ganization’s green mindset is that it helps the organization manage the long-term implementation issues whilst achieving re turns f rom t he “ low h anging f ruits” of Green I T to sh ow progress a nd w hat c an b e achieved. Indeed, it is important to immediately start switching off of monitors when they are not in use and immediately stop the wastage of printing paper; but those advantages are not considered

38 ◾ Green IT Strategies and Applications

strategic and nor is the organization gratifi ed by simply achieving some o f t hem. Ā e g reen s trategic m indset a cknowledges t hese vital initial eff orts especially for the visibility they add to the ini- tial eff ort, but does not remain entangled only with these initial eff orts. Instead, a l ong-term, integral, a ll encompassing eff ort is undertaken by the green strategic mindset of the organization.*

Green IT strategies translate into policies that deal with energy reduction across all areas of an organization. For example, strate- gies indicate policy formation on energy consumption in data cen- ters or optimizing equipment procurement and lifecycle processes. Eventually, policies translate into practice (as discussed in Chapter 3) that requires accurate collection and reporting of carbon data and ensuring immediate compliance with the legal requirements.

Strategic use of carbon data involves not only collection and reporting of data, but also identifi cation of risks and opportuni- ties associated with the green domain as also plotting of trends and pat terns i n ter ms o f i nternal c arbon s avings a nd e xternal carbon cre dits a nd t rading. G reen I T s trategies, t hus, e xpand into the areas of capacity planning for the organization, resourc-

ing and skills (HR) strategies, technology acquisitions, and risk management and governances. An important aspect of the risk in undertaking a strategic approach is that its value accrues over a

longer period of time. Ā is, in turn, may entice the decision makers to dismiss the strategic approach in favor of visible, tactical approaches to Green IT.† To add to the challenges of undertaking strategic approach to G reen I T, e ven t he c urrent re turn on i nvestment ( ROI) c alculations i n t he G reen I T domain are easier to compute, compare, and present when they are based on the immediate, tactical approaches as compared with the strategic one. Ā erefore, one of the most crucial considerations for the organization’s decision makers is to engender a change of mindset from a tactical one to a strategic one. Ā is is an inherently challenging situation in a market-driven economy, where all the micro- and macroeconomic levers are pulled by the organization to boost its share prices. Ā erefore, a positive way of looking at the development of the green strategies is the fact that they encompass not only carbon mitigation today, but also work to transform an organization so that it is ready for the carbon economy of tomorrow. Carbon trading in the future is inevitable and the carbon factor will play a crucial role in the stock exchange of the future. Ā us, the organization as a w hole has to a sk the questions: Are the people involved in the green initiative having a positive mindset? Have they been educated and trained in the long-term sustainability approaches that the organization is planning to undertake? Is reduction in power consumption only as a result of switching off monitors (as, say, discussed by Forge, 2007), or are there some fundamental changes being brought about in the company processes? A re there mechanisms to b e put in place t hat a lso measure t his long-term environmental su stainability approach of the organization?

Ā e a nswers to t hese a nd si milar q uestions a re n ot e asy. I n f act, we m ay h ave n ot ye t f ully answered t he q uestions p ertaining to s trategic ap proaches i tself. Ā erefore, a g reen s trategic approach is certainly fraught with many challenges. Ā ese green challenges were alluded to earlier in Chapter 1. Following is a further list of such challenges (in no particular order of importance)

* A risk is something that has the potential to impact the achieving of an outcome. An issue is a realization of a risk and is something that is now impacting upon achieving an outcome.

† For details, see Harvard Business Review on Green Business Strategy.

A green strategic mindset makes use of the available environmental intelligence (EI) tools and techniques within the organization. The strategic approach is based on a compre- hensive use of technologies and systems that are based on extending business intel- ligence and applying it to the environment domain. Enterprise Risk Management (ERM)* can benefi t the application of business intel- ligence toward environmental intelligence. While the traditional ERM is based on the risks associated with profi ts and cash fl ow, the Green strategies can incorporate carbon- specifi c risks, their sources, creation of car- bon risk management frameworks as well as approach to risk mitigation. Green ERM also includes strategies for minimization of car- bon impact through effective governance, creation and compliance with standards, and all the associated tools and technologies. Sherringham (2010) has advised that this strategic approach to ERM is based on incor- poration of risks into routine business opera- tions as a norm rather than an exception.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 39

that an organization is likely to face in its eff ort to cultivate a green strategic mindset and subse- quently a comprehensive green strategy.

Ā ere i s s till a subs tantial a mount o f sub jectivity, skep ticism, a nd do ubt a bout t he en tire ◾ green enterprise. Ā is is a personal, individual attitude challenge that is diffi cult to quantify through contemporary metrics and measurements. Quantifying the economic returns of a green project remains uncertain especially when it is ◾ considered strategically. However, it is the strategic approach to Green IT that has tremen- dous signifi cance in terms of green value and meaningful returns. Organizations tend to take a hurried and, as a result, fragmented approach to environmental ◾ initiatives. Instead, a holistic, unifi ed approach is required. Ā ere is no single packaged solution that can work as an application to transform the organization ◾ to a g reen one; instead, painstakingly, a c ollaborative eff ort t hat brings together a nd integrates existing packages as also the carbon emissions management software (CEMS) is required. Ā e at tractiveness o f i mmediately s witching off physical carbon emitting hardware (e.g., ◾ monitors, data servers) a nd t he ensuing feeling of smugness at h aving achieved something for the environment. Fuzzy c ost-benefi t a nalysis a nd e qually f uzzy m etrics a ssociated w ith g reen p rojects. Ā e ◾ uncertainty in the payback on the environmental initiatives can discourage an organization- wide initiative. Potential risks associated with the use of technology-based initiatives such as Cloud comput- ◾ ing, business intelligence, and knowledge management in the area of green initiatives. Ā e inherent risks and challenges associated with these technologies also translate into risks for green initiatives. Design, development, a nd production of good s, a s well a s appropriate services keeping t he ◾ carbon c osts in m ind may initially require g reater eff ort than the status-quo or business as usual scenario. Furthermore, products and services will have to be reconfi gured in a manner that produces long-term advantage from a green perspective. For example, the existing CRM, SCM, and HR applications can and will undergo modifi cations and enhancements to c ater to the green consciousness of the organization.

Philosophical Considerations in Green IT Strategy Ā e i mpacts o f te chnology i n b usiness a nd u pon so ciety h ave been d iscussed e xtensively b y Toffl er (1980). I n t he c ontext o f the en vironment, h owever, i t i s wo rth s tarting w ith a t hought by Pearce (1989) who, more than two decades ago, presented two separate yet interrelated viewpoints that gave an insight into businesses, t heir w ealth g enerating a ctivities, a nd t he e nviron- ment: (1) leave f uture g enerations w ith at l east a s m uch c api- tal we alth a s we i nherited a nd (2) future generations must not inherit less environmental capital than we inherited.

Ā ese t wo viewpoints need to b e treated together. One is not exclusive to t he other, a lthough both, in their own right, provide a major insight into the market-driven economies that most of the

Green IT strategic planning includes due considerations to the business goals of the organization, its demographic character- istics, its existing approach in the context of Green IT as also its maturity in terms of Green IT. Earlier approaches to strategic planning were based on the principles and models based on Porter (2008; e.g., the Five Forces model and the Value Chain mod- els). SWOT and PEST analysis also provide a good starting point for strategic planning, as these techniques ascertain the posi- tion of the enterprise in terms of where it stands and how it can approach the trans- formation. Unhelkar (2009b) and Atkins and

40 ◾ Green IT Strategies and Applications

world is now used to. If only the fi rst of the two viewpoints is con- sidered, then it will lead to generation of wealth capital at the cost of the environmental capital. Ā e ensuing environmental losses can- not b e c ompensated by g eneration of c orresponding we alth. Ā e second v iewpoint u nderscores t he n eed fo r i ntelligent u tilization of environmental capital in a way that will result in production of wealth capital. Note th at the s econd v iewpoint does not e schew

creation of wealth. However, such development and growth of an organization has to be synergistic. Further, Pearce’s viewpoint (1989) that “it is possible to have economic growth (more gross national product—GNP) and to u se up fewer resources” also needs to be considered and fully developed for a pr actical, s uccessful E RBS. Ā ese a forementioned v iewpoints l ead to t he p hilosophy fo r a g reen strategy itself. Ā e green strategic mindset, especially at t he decision-making level, is functioning at its best when the business and carbon interests of an organization continue to overlap each other vis- ibly. Figure 2.1 shows, simplistically, the philosophy of a g reen strategy mix. Ā is green philosophy is exhibited by organizations when it comes to t heir carbon versus cost priorities. Ā e philosophy of the green strategic mindset can vary from the obvious one—gaining both carbon and cost advantag- es—to a complete lack of strategy or a dysfunctional view of Green IT. Ā is is shown in Figure 2.1 as four quadrangles. Following are the ways in which each tab of the quadrangle can be viewed:

Risky, Growing ◾ : Strategies that directly improve the economic performance of the organization but a lso add to t he carbon contents. Expansion of the products a nd services portfolio by a n organization will increase its turnover, but at the same time, there is a very high possibility that its corresponding carbon contents will also go up. Ā is may happen due to increased produc- tion activities in the organization. For example, an airline expanding its services to new regions would expect to increase the carbon it produces as it fl ies to these new geographical regions but with new fuel-effi cient aircraft, the increases can be minimized. Organizational growth, which is usually associated with increase in operational costs relating to manufacturing and distribu- tion (supply chains), can be reasonably expected to increase its carbon costs as well.

Ali (2009) have extended and applied these techniques to mobile business transforma- tion. Here, these techniques provide the basis for strategic planning for Green IT.

The philosophy behind a green strategy can be risk, associated with growth; social, nonprofi t; careless, without any strategy; and the lean-intelligent, balanced one.

Intelligence, Balance, Lean

Social, Non- profit, Govt.

Risk, Growth Careless,

Dysfunctional

INCREASE PROFITS

INCREASE COSTS

R E D U C E

C A R B O N

I N C R E A S E

C A R B O N

Figure 2.1 Strategy matrix—carbon versus profi t.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 41

Social, Government, Nonprofi t: ◾ Strategies that improve the carbon performance of the organi- zation but hurt the bottom line. For example, optimized insurance services by an insurance organization may imply shifting some aspects of such service to less powerful servers. Such strategies may reduce the carbon generation by those business processes but may also reduce the customer service. Such strategies can hurt the revenues and/or increase the costs. Careless, No Strategy: ◾ Ā ese are the less well-managed and even dysfunctional organizations whose a ctivities hurt b oth t heir e conomic a nd c arbon p erformance. For e xample, c areless increase in the number of servers within a data center without proper estimation of their workload may laden the organization with unnecessary servers. Ā e data servers would not add any discernable gain in terms of economic returns, nor would they provide any business value. Ā e c arbon footprint of such a n organization would a lso increase due to a dditional GHG generation. In most cases, though, such an organization may not be even aware of its carbon impacts as the necessary metrics and measurements are often missing. Lean, I ntelligent, B alanced: ◾ S trategies th at i mprove b oth th e e conomic an d car bon p erfor- mance. Ā is is the core winning philosophy of an ideal Green IT strategy. Ā is is an approach that applies the principles of lean business to evolve into a green business. Ā is is the philoso- phy that invites and expands the technologies of business intelligence to move toward environ- mental intelligence. Ā is is an approach that is highly balanced—ensuring that the goals of the business are in balance and in sync with its environmental goals. For example, the same airline mentioned earlier, in its expansion strategy, would consider procurement of new, low-carbon- emitting a ircrafts w ith l ess f uel c onsumption. Furthermore, t he a irline m ight en courage its passengers to opt for carbon off sets—the proceeds from which can be used in that business’s eff ort to reduce carbon elsewhere. Ā ese strategies will be intelligent, lean, and in balance— providing the much needed economic growth as well as reduction in carbon for the business.

Using the right philosophy behind the creation and implementation of the strategy is vital. While the l ast o f t he fo ur q uadrants d iscussed e arlier i s t he m ost i deal, a nd i n m ost c ases t he o nly philosophical option to u se, s till t here m ay b e o ccasional re asons for a n organization g oing for increasing c osts to re duce c arbon, o r t aking t he r isk o f i ncreasing t he c arbon i n o rder to g row the business. Ā ese four quadrants provide a si mple yet fundamental basis for the philosophy of becoming green, and, sticking to t he lean, intelligent, and balanced approach to de veloping and implementing green strategies is the winning philosophy.

Green IT Strategies: Range of Impact Figure 2.2 shows the range of impact of Green IT strategies on the organization. Ā is is primarily a temporal view of the eff ect of t he Green I T s trategies. Figure 2 .2 a lso t hrows l ight on t he various t ime-based i mpacts o n t he e xecution o f t he s trategy within a nd a cross t he o rganization. A lso sh own i n Figure 2 .2 are t he va rious roles t hat a re a ff ected by a nd i nvolved i n t hese Green IT strategies. Following is a brief discussion of the time- based impact on Green IT strategies:

Today ◾ [Operational]. Ā is is the typical, immediate action taken b y a n o rganization w ith re spect to G reen I T. F or

Strategic approach to Green IT is a long-term approach that includes business and envi- ronmental factors. Starting with the immedi- ate or tactical actions, such as switching off monitors, the strategic approach goes into long-term planning, typically 3–5 years, that will include environmental issues integrally in the business. Eventually, the think tanks need to envision the future for not only one organization but also a collaborative group of organizations that may be geographically spread into different regions.

42 ◾ Green IT Strategies and Applications

example, switching off the computer monitors when not in use, or not printing on paper when- ever possible are the immediate actions, the “low hanging fruits.” While these are most visible actions, they do not require what is considered as a strategic approach. Simply inform the users that they need to switch off computers when not in use; or, implement an internal method to charge the users (i.e., their cost center) for the use of paper. Feedback in terms of carbon usage per action, developing a consensus amongst a group of users, and initial training is helpful in getting t hese operational Green IT initiatives off t he ground. Many early adopters of Green IT have done precisely this. Ā e caveat, as mentioned earlier, is to c onstantly remember that this is not a strategic action. Ā e impact may be visible, may also provide the basis for shaping the culture of the organization to a g reen one, but the eff ect may not be long lasting and the actions may not lead to a strong organization that is ready for the carbon economy. Individual employees and stakeholders within the organization can eff ectuate these changes immediate- ly—as these changes primarily deal with their own habits in terms of computer usage. 1-Year ◾ [Tactical]. An organization cannot do everything at once. Ā erefore, even at a tacti- cal level, it has to build up its ability to reduce its carbon emissions over some time. A 1-year time period is ideal for some aspects of the Green IT strategies that enable action that is manageable. Ā ese t actical actions, for e xample, i nclude t he replacement of e xisting c om- puter monitors within the organization with g reen, fl at-screen m onitors. S imilarly, sm all- time gadgets and equipments can be replaced within a year by agreements within the middle management and administrative staff . Similarly, recycling programs can be put together by the m anagers fo r t heir re spective depa rtments t hat w ill en courage s taff to have processes for recycling of paper and reduction in printing. Ā is is still a tactical approach but the one with benefi ts of some measurements and metrics in place that can start showing ROI on the

Think Tank (Govt. Research, Industry, Society)

Today [Operational] —e.g., Switch Off Monitors.

1-Year [Tactical] —e.g., Replace with “Green” Monitors; Recycle; Measure; Comply.

3-Years [Strategic- Initial] —e.g., Reengineer Processes; Eliminate Monitors; Green Supply Chains, Disposals, Marketing; Comply.

5-Years [Strategic] —e.g., Complete Attitude Change; New Business Architecture; Collaboration; Governance; Renewable Energy Use; Physical Infrastructure.

8-Years [Strategic- Imaginative] —e.g., Nano technologies in Green IT; Advanced Biomimicry; Renewal Energy; Dramatic Infrastructure; Global Legislations.

Individual

Management

Board K ey

Gr een

Ro les

Consortiums

Figure 2.2 Range of impact of Green IT strategies.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 43

eff ort. Ā is eff ort certainly makes moves in the right direction for organizational compliance to carbon regulatory requirements. 3-Years ◾ [S trategic-Initial]. Ā e 3 -year t imeframe fo r t he i mpact o f G reen I T i nitiatives i s certainly based on strategic initiatives as promoted in this discussion. Ā ese initiatives would include the senior leadership of the organization including a dedicated “C” level role (such as t hat of a C hief S ustainability O ffi ce or a C hief Green O ffi cer—mentioned in Chapter 1). Ā ese Green I T s trategies a re formulated a nd approved by t he b oard, h ave subs tantial budgetary backing, a nd re quire a h olistic approach by t he organization. Ā us, t his strate- gic approach w ill include Reengineering of Bu siness Processes t hat may re sult in not only upgrades to low-carbon emitting devices but also elimination of some of these devices due to t he reengineering eff ort. Other a reas of the organization such a s its data centers, build- ings, supply chains, disposal strategies, a nd even sales a nd marketing are a ff ected through these strategies. Ā e organization is able to comply with the regulations and is able to move forward strongly in the new carbon economy. 5-Years ◾ [S trategic]. Ā is G reen I T s trategy i s a f urther e xtension o f t he a forementioned 3-year strategy but has greater depth and breadth of coverage. For example, in addition to the reengineering eff ort over the 3-year period, this strategy would also bring about a com- plete attitude change in people at all levels, reorganize the business architecture, and imple- ment substantial g overnance mechanisms for t he b oard. Ā e physical i nfrastructure, suc h as buildings and data centers will also undergo a major revamp in this period. Furthermore, the organization will be infl uenced by and, in turn, will infl uence other partnering organiza- tions through a c ollaborative eff ort. Renewable energy sources are explored and consumed with f ully automated, s ystems-based measurement, reporting, a nd monetizing. Ā e CEO, board of directors of the organization, and those of its collaborating partners, are involved in this long-term strategic approach. 8-Years ◾ [Strategic-Imaginative]. A Green IT strategy that is stretched over this long a time period would include elements of controlled imagination. Considerations of environmental issues over a long time period may not produce immediate results, and yet, they are impor- tant, especially for large and global organizations as well as government bodies. Large, global organizations h ave a n eed a nd a n o pportunity, t hrough t heir t hink t anks, to c onsider t he implications of futuristic technologies on Green IT. For example, such organizations will have the re sources to cre ate prototypes a nd measure t he i mpacts of, say, Nano technologies a nd Biomimicry on their carbon emissions. Over this period, the expectation is that the carbon economy will be a truly mainstream economy and organizations will be dealing with carbon in all aspects of their business. Ā e imaginations here should be all encompassing—including aspects of technologies as well as economy (e.g., carbon trading on the stock exchange).

Although t he a bove d iscussion c overs a p eriod c lose to a de cade, t he G reen I T s trategic approach is ideally poised to impact the organization in the next 3–5-year period. Ā is is based on the initial literature review and the environmental survey conducted by Trivedi and Unhelkar (2010). Ā e study asked the participants to rate their views on the factors that are likely to infl u- ence an organization’s strategies, particularly in the next 3–5 years. Ā e results from that survey are shown in Figure 2.3. Ā ese results can also be interpreted as follows:

More than 51% of the participants agreed and close to 8% strongly agreed to the use of IT ◾ in m inimizing t he o rganization’s en vironmental fo otprints, i ndicating t he i mportance o f IT felt by participants in the role it can play in reducing carbon impact.

44 ◾ Green IT Strategies and Applications

Forty-six percent agreed and 15% strongly agreed that government regulations that require ◾ organizations to limit carbon emissions are a substantial factor in the organization’s formu- lation of Green IT strategies aff ecting them over next 3–5 years. Ā us, the strategists of an organization are likely to ke ep a s trong eye on the policy makers of the government to s ee what legal, fi nancial, and social implications those policies will have on the business in terms of Green IT. Forty-eight p ercent o f t he re sponses a greed-to-strongly a greed o n t he n eed to i mplement ◾ monitoring m ethods fo r c arbon fo otprints i n a n o rganization; a nd t he s ame p ercentage, 48% agreed-to-strongly agreed on the need to include alternate source of energy such as solar/wind energy in the organization’s Green IT strategies. While some of these alternative sources of energy, such as solar, will take more than 3 years to be fully eff ective, nonetheless, they are a vital consideration in the current Green IT strategies of the organization. Exactly 5 0% re spondents t hought t hat t he c osts i nvolved i n i mplementing G reen i nitia- ◾ tives have a major impact on the Green IT strategies of the organization. Ā ese are the costs associated w ith t he c hanges to t he h ardware, so ftware, p eople, a nd p rocesses. A lmost a ll aspects of a n organization’s structure a nd dy namics change when it undertakes Green IT. Ā e investment in those changes is not going to be readily visible—unless it is coupled with the business effi ciency view. Finally, only 19% disagreed-to-strongly disagreed on the formation of an executive body for ◾ overall responsibility for environment for the organization. Ā e rest of the participants seem to support the view that a dedicated executive body with powers to bring about change, and budget to support the powers, needs to be formed. Ā e formation of such an entity is akin to almost all previous major revolutions in business transformations—such as process reen- gineering, lean and quality initiatives.

0% 10% 20% 30% 40% 50% 60%

Use of ICT in minimizing the organization’s environmental footprints

Government regulations that require organizations to limit carbon emissions

Implementing monitoring methods for carbon footprints in an organization

Use of alternate source of energy such as solar/wind energy

Costs involved in implementing Green initiatives

Formation of an executive body for overall responsibility for environment

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure 2.3 Environmental factors infl uencing organization’s business strategies over next 3–5 years.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 45

Keeping the 3–5-year period as a strategic period with maximum advantage for the organization, the environmental survey (Trivedi a nd Unhelkar, 2010) f urther a sked t he pa rticipants about t heir organization’s strategic plans to a chieve Green t argets for t hat t ime period. Ā e re sults f rom t hat survey are shown in Figure 2.4. Some of these results can be simplistically interpreted as follows:

Fifty-four percent of the participants agreed and close to 4% strongly agreed to t he use of a ◾ methodology to undertake suitable and defensive power consumption. Ā is indicates the need for a s trategic i nitiative r ather t han a t actical or operational plan to a chieve Green t argets. Such strategy initiative would result in even greater savings in energy bills than the a lready signifi cant estimates of 20%–30% made by the Carbon Trust (see carbontrust.co.uk). While there was no need to ascertain a specifi c methodology in the survey, examples of methodolo- gies for Green IT framework and transformation are presented in Chapters 4, 6, and 9. Fifty percent of the participants agreed and close to 4% strongly agreed to the creation of power ◾ management polices to reduce energy consumptions. Ā ese power management policies, based on the strategic decision taken by the management, can cover a wide gamut of decisions such as use of smart switches for reducing power consumption, off -peak use of power, seeking renew- able sources of power if available (e.g., wind or solar), or even refurbishing buildings and facili- ties of the organization (e.g., installing solar panels on the roof or providing cross ventilation for f actory fl oors). I n t his re gard, note t he d iscussion by Przybyla a nd Pegah (2007), w hich highlights the carbon challenges in managing the cooling of data centre infrastructures. Forty-four percent of the participants agreed and close to 7% strongly agreed to the need for ◾ training plans a nd budgets to h elp employees u nderstand Green issues a nd achieve Green

6%

7%

7%

6%

6%

4%

4%

6%

16%

18%

13%

17%

13%

12%

11%

13%

29%

37%

26%

35%

34%

25%

19%

37%

39%

31%

44%

33%

36%

50%

54%

36%

9%

7%

11%

9%

11%

10%

12%

8%

0% 10% 20% 30% 40% 50% 60%

Documented targets for carbon

footprint reduction

Investment funds dedicated to incorporate Green policies

Training plans and budgets to help employees understand

Green issues

Seek external help for upgrades to a Greener

business system

Modify the current business processes to incorporate

environmental needs

Create power management policies to reduce

energy consumption

Methodology to undertake suitable and defensive power

consumption

Use of power management software

Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 2.4 Organization’s strategic plans to achieve green targets over next 3–5 years. (Based on Trivedi and Unhelkar, 2010.)

46 ◾ Green IT Strategies and Applications

targets. Ā is response is also anticipated, and is in line with almost all business change expe- riences. Ā e importance of sociocultural and HR issues is dealt with in Chapter 8. About 45% of the participants agreed-to-strongly agreed to the need for a use of power man- ◾ agement software that will automate the process of tactical/operational reduction of carbon in the fi rst instance. However, this kind of power management software can also include the operating systems that can be used for desktop virtualization and optimizations. Similarly, about 46% agreed-to-strongly agreed for the modifi cation of the current business ◾ processes to incorporate environmental needs. Ā e entire domain of Green BPM fi nds dis- cussion in Chapter 5. Ā irty-three percent agreed and 9% strongly agreed to seek external help for upgrades to a ◾ Greener business system. Ā irty-one percent agreed and 7% strongly agreed to an investment fund by the organiza- ◾ tion that would be dedicated to incorporate Green policies in the organization. Finally, 48% agreed-to-strongly agreed on the need for an organization to have docu- ◾ mented t argets fo r c arbon fo otprint re duction—indicating a s trong de sire o n t he pa rt o f the participants to see the creation of a strategy and a plan that is supported by metrics and measurements.

Ā ese a forementioned fi gures i ndicate n ot o nly t he su pport fo r a s trategic p lan fo r G reen IT, b ut a lso h elp de velop a n u nderstanding of t he t imeframe w here t hey w ill b e a ll ap plicable. For example, the fi gures mentioned earlier indicate t he support for policies, use of software a nd application of metrics that will provide tremendous value to a g reen enterprise transformation— and that value will itself be maximized by keeping a 3–5-year timeframe for implementing those strategies and plans.

Green Strategic Alignment Green IT strategies, especially in the 3–5-year impact range, are well p oised to p rovide c ontinuous a lignment o f t he o rganiza- tion’s business and carbon goals. Signifi cant work has been done in this aspect of developing a conceptual framework for strategic alignment by Wang a nd Ghose (2006). A lignment in t he c on- text of Green IT strategies can be seen as transforming the fi rm’s resource ba se i n a w ay to c ater to b oth g oals—business a nd green—of t he o rganization si multaneously. W hile t he f rame-

work of Wang and Ghose views alignment as a binary relationship between two strategies, in this discussion it can be understood as the application of that conceptual tool kit to synergize between Green IT and the core business strategy of the organization. As further developed and reported by Wang and Ghose (2011), Green IT strategic alignment is basically viewed as a resource allocation decision t hat, w hen dep loyed c orrectly, b ring a bout a ction t hat b rings t he b usiness a nd c arbon goals close to each other. Commonalities from existing strategic work within the organization can be identifi ed and applied to the Green IT domain. For example, the prerequisites of a strategy are the conditions that should be met before such strategy translates into policies and practice. Ā es e conditions, in the instance of a Green IT strategy, would be the availability of funds and the deci- sion by the board to proceed with the initiative. Similarly, the precondition of a resource base for a strategy is handled through the formation of a green transformation board, a green transformation

Green IT strategies can be roughly divided into two types—the ones that are reacting to the carbon challenge, and the ones that are based on positive action to meet the challenge now and in the future. With the inevitable carbon economy of the future, a combination of both reactivity and pro- activity is required in the development of Green IT strategies.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 47

program, and the nomination of a Chief Green Offi cer to lead that change. Finally, the execution of a strategy should be done in a manner that keeps the business and carbon goals aligned.

Proactive Green Strategies Extending the earlier discussion on green strategic alignment leads also to an understanding of the general “bent” of strategies. Green strategies can encourage the organization to bring about signifi - cant organizational change. Ā ese changes are based on an understanding of the various Green IT drivers by the organization’s leadership. Ā ese strategies, that are not enforced on the organization but are based on anticipation by the leadership of the organization, can be considered as the proac- tive green strategies. Ā e organization’s own understanding is translated into a Green IT initiative and is supported by most layers of the organization. Ā e solution is also coordinated and integrated in a h olistic way (see paper by R aghavendra et a l., 2008). In case of such proactive strategies, the organizations ta ke t he ini tiative in i dentifying, determining, a nd en listing t he f actors t hat w ill infl uence t he t ransformation of t he organization to a g reen organization. For e xample, proactive strategies w ill identify t he opportunities for new business s treams i n t he g reen domain, or c om- pletely new business models. Globalization, multinational business market, and the economies of scale in terms of greening an enterprise can be part of these proactive strategies. Proactive strategies also aff ect the infrastructure, equipments, and people of the organization by bringing about radical change in them that is based on a combination of organizational and personal initiatives.

Reactive Green Strategies In a ddition to u ndertaking g reen t ransformation o n i ts o wn v olition, t here a re a lso si gnifi cant elements of reaction by an organization to the external green infl uences on it. For e xample, t he impact of g overnment r ules a nd re gulations re lating to c arbon provide a m ajor i mpetus for t he organization to undertake green strategy formulations. When the organization has to put together an immediate response to an external change in legislation, it results in reactive strategies that are short-term strategies (less than 3 years on the scale outlined earlier in Figure 2.2). External compe- tition, outsourcing, globalization, and customer demands can all put the organization in reactive mode resulting in reactive Green IT strategies.

Major d rivers fo r G reen I T s trategies a nd t heir i mpact o n fo rmulation o f t he s trategies a re discussed later in this chapter. It should be noted that all Green IT strategies will have elements of both proactive and reactive within them. Ā e next section describes the overall mix of various elements within the Green IT strategy formulation by an organization.

Green IT Strategies Mix Table 2 .1 su mmarizes t he va rious elements of a n E RBS. Ā es e elements are grouped in four categories:

Drivers—these a re t he m otivating f actors fo r a n o rgani- ◾ zation to p ut together a G reen IT strategy a nd u ndertake transformation. Six such drivers have been identifi ed in the Green IT strategy formulation discussed here, and listed in the fi rst column in Table 2.1.

According to the Global CEO study (www. 935.ibm.com), chief executives believe that energy and environmental activities can help differentiate their brands and promote the reputation of their products and services. Enhanced green brand image can deliver enhanced market penetration and facilitate customer loyalty—especially from the new generation customers that are demanding carbon-conscious products and services.

48 ◾ Green IT Strategies and Applications

Dimensions—these are the various areas along which an organization undertakes transfor- ◾ mation. Ā ere are four such dimensions identifi ed and listed in Table 2.1 in the second col- umn. Ā e corporate ERBS needs to consider all four signifi cant components of any strategy: economy, people, processes, and technologies. Business—this is the domain of policies, practices, and procedures undertaken by the orga- ◾ nization along each of the four dimensions. Intelligence—this is the systems, information technology, and contents aspect of Green IT. ◾ Ā is is the further evolution of the concept of business intelligence into what is considered here as environmental intelligence.

Ā is t able a lso h ighlights t he f act t he Green I T s trategy (also i nterchangeably k nown a s a n ERBS) is incorporated into and made an integral part of the overall business strategy of an organi- zation. Since each of these elements infl uences the way in which the organization operates, it has specifi c bearings on its green credentials.

Green IT Drivers Ā e d rivers t hat i mpact t he u nderlying m otivations o f a b usiness fo r its en vironmental re spon- sibility are, Figure 2.5, where six separate yet interrelated areas are seen. Figure 2.5 a lso shows a mapping between the drivers and the corresponding Green IT framework. Ā e strategies, policies, design, i mplementation, a nd p ractice o f G reen I T a re p rimarily d riven b y o ne o r m ore c ombi- nation of t hese drivers. Ā ese si x g roups of business d rivers for environmental re sponsibility, a s shown on the left in Figure 2.5 are the costs (including energy costs, operational costs); regulatory and l egal; so ciocultural a nd p olitical; n ew m arket o pportunities; en lightened s elf-interest; a nd responsible b usiness e cosystem. Ā e re cognition o f t hese d rivers fo r G reen I T l ead to a f urther investigation by Trivedi a nd Unhelkar (2010) who reported t he re sults su rveys relating to t hese drivers as presented in Figure 2.6.

Table 2.1 Elements of an ERBS Forming the Green Strategies Mix

Drivers Dimensions Business Systems

Costs and • revenues

Sociocultural and • political

Regulatory and • legal

Enlightened • self-interest

Responsible • Business ecosystem

New market • opportunities

Economic•

People•

Process•

Technology•

Policies, practices, • and procedures

Systems and • support

Legal compliance•

Architecture•

Environmental • Metrics

Maintenance•

Data•

Information•

Process•

Knowledge•

Environmental • intelligence

(EI implementation • includes Green ICT)

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 49

Ā e results from Figure 2.6 can be interpreted as follows:

Forty-four percent of the participants agreed and close to 27% strongly agreed on that gov- ◾ ernment rules and regulation in implementing environmental measures is the major driver for carbon reduction.

Costs (Energy, Oper

ational)

New Market Opportunities

Social and Political Pressure

GREEN IT DRIVERS

Government Legislation

Enlightened Self-Interest

Responsible Business

Ecosystem

Green IT Strategy

Green IT Policies

Green IT Design

Green IT Implementation

Green IT Operation/Practice

Green IT Framework G

reen IT

M etrics

Figure 2.5 Drivers for environmental responsibility of business.

9%

11%

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12%

6%

10%

7%

11%

24%

22%

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23%

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27%

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3%

11%

Government rules and regulation in implementing

environmental measures

Customer’s demand or pressure for Green policies

and Green products

Pressure from society (physical/electronic groups)

to adopt Green policies

Self-initiated implementation of environmental policies

(Increased) Energy consumption in your organization

(Increased) Carbon footprint in your organization

(Increased) Operational costs in your organization

Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 2.6 Drivers for carbon reduction. (Based on Trivedi and Unhelkar, 2010.)

50 ◾ Green IT Strategies and Applications

Ā irty-three percent of t he pa rticipants a greed a nd close to 15% strongly a greed t hat self- ◾ initiated i mplementation of environmental p olicies a nd energy c onsumption by organiza- tion is the drivers for carbon reduction. Ā irty-one percent of the participants agreed and close to 11% strongly agreed that opera- ◾ tional costs by their organization is the driver for carbon reduction. Twenty-seven percent of the participants agreed and close to 7% strongly agreed that pres- ◾ sure from society (physical/electronic groups) to a dopt Green policies as the driver for car- bon reduction. Twenty-six p ercent o f t he pa rticipants a greed a nd c lose to 1 1% s trongly a greed t hat c us- ◾ tomer’s demand or pressure for Green policies and Green products is the driver for carbon reduction. Sixteen percent of the participants agreed and close to 3% strongly agreed that carbon foot- ◾ print in their organization is the driver for carbon reduction. About 25% disagreed-to-strongly disagreed on these as drivers for carbon reduction in their ◾ organizations.

Ā ese drivers and how they encourage organizations in the formulation of an ERBS are explained in greater detail next.

Costs (Energy, Operational) As discussed in the previous chapter, the positive impact of Green IT on the bottom line of the business is part of what organizational leadership is trying to achieve. A good sustainable approach by an organization includes opportunities to optimize its processes, consolidate its technologies, and thereby reduce its costs. Ā us, costs provide an excellent driver for the organization to come up with a comprehensive Green IT strategy. Examples of cost reduction include reduction in the use o f r aw m aterials a nd e quipment, re cycling o f e quipment, a nd o ptimization o f s torage a nd inventory as a re sult of the green initiative. W hile eff ort to re duce costs can provide an impetus for reduction in carbon emissions, the organizations undertaking green transformations need to be aware of the spending that they have to i ncur a s a re sult of the greening eff ort. For example, optimizing a b usiness process c an e liminate t he need for a de sktop m achine but, i nstead, t here may b e a n eed to rep lace t hat de sktop w ith a m obile de vice. A t t he o rganizational l evel, c osts associated with the green enterprise transformation program need to be factored in along with the anticipated reduction in costs due to the transformation.

Regulatory and Legal Environmental legislations put together by governing bodies have a greater enforcing power than the aforementioned social opinions. (Ā ese regulations are discussed in greater detail later in Chapters 8 and 10.) For example, in Australia, it is now legally binding for an organization emitting more than 150 kT (kilo tonne) of carbon to calculate and report it to the government on an annual basis.* Ā es e regulatory a nd l egal re quirements n ow m ake it m andatory fo r o rganizations to c omply w ith c ar- bon emission requirements. Ā is, in turn, forces a company to implement environmental measures within its business operations. Formation of a comprehensive environmentally responsible strategy is then undertaken to ensure that the organization is compliant with the legal requirements.

* NGERS website—www.climatechange.gov.au.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 51

Figure 2 .8 i ndicates t hat t he g overnment r ules a nd re gulations a re a m ajor d river for m any green enterprise transformation programs. Ā e relative importance given to this regulatory factor, as compared with the other factors such as organization self-initiation, customers demand, and the pressure from society are the highest—70% as shown in Figure 2.8.

Regulatory a cts suc h a s N GERS a nd C PRS ( www.climatechange.gov.au) re quire o rganiza- tions to m andatorily rep ort t heir c arbon em issions o nce t hey re ach a c ertain l evel. R egulatory bodies a lso p rovide so me ba sic c alculators (e.g., OSC AR) to en able c alculations o f g reenhouse gases. Ā ese c alculators a re u sed to a rrive at t he total c arbon em issions of t he organization t hat can be used to decide whether the organization falls under a mandatory reporting requirement. In addition to t he ba sic c alculators, green information systems a lso source external regulatory data (such as permissible emission fi gures), store, analyze, and broadcast the results that enable moni- toring and improvement of performance of the organization. Ā ese organizational specifi c green information systems need to b e much more sophisticated than the basic calculators provided by the regulatory bodies (Unhelkar and Philipson, 2009).

An example of such mandatory reporting requirements is the Australian government regula- tion. On October 31, 2009, approximately 1000 Australian businesses fell under the mandatory reporting requirements for carbon emitters above 150 kT per annum (National Greenhouse and Energy Reporting Act, 2007). Another example is of the American Clean Energy and Security Act that was passed to reduce emissions by 17% in year 2020 (compared with 2005 levels) and around 80% by 2050 (this legislation is yet to re ach a vote in the Senate). Ā e EU also has a m andatory target of a 2 0% reduction in greenhouse gases by 2020 (compared with 1990)—with particular emphasis on the cap-and-trade EU Emissions Trading Scheme (EU ETS), that covers major emit- ters o f C O2. F inally, t he U .K. g overnment h as a lso pa ssed l egislation i n N ovember 2 008 t hat aims to a chieve em issions reduction of at l east 26% by 2020 a nd 80% by 2050, a gainst a 1990 baseline.

As early as 1992, the United Nations Conference on Environment and Development “placed the i ssue o f su stainable de velopment at t he h eart o f t he i nternational a genda” ( Boutros-Ghali, 1995). Agenda 21, as it is called, provides the background for eventual agreements and legislations by i ndividual c ountries re lating to su stainable de velopment. A greements i n t he R io c onference also re sulted i n de claration o f r ights a nd re sponsibilities o f n ations fo rming t he ba sis fo r t wo legally binding conventions: climate change and biodiversity, signed by 150 countries.

In a ddition to t he c ontrolling o f c arbon em issions o n o perational ba sis, t here a re a lso stringent regulatory requirements in many industries that deal with the physical procurement, handling, and disposal of goods and equipments. For example, the EU’s Waste Electrical and Electronic Equipment (WEEE) Directive requires manufacturers of electrical and electronic equipment to a ssume re sponsibility fo r t he c ollection a nd d isposal o f t heir m anufactured products ( European C ommission, 2 009). Ā us, fo r o ther n on-EU c ountries to do b usiness with EU requires them to comply with these WEEE requirements. Ā e vendors of materials and e quipments f rom, s ay, C hina or Japan, h ave to p rovide a re cycling program t hat would also accept the return of expended equipments such as printers and copiers. Ā is legislative requirement i s a m ajor d river fo r v ending o rganizations to re vamp t heir a rchitectures a nd designs t hat wo uld en able e asier re cycling a nd re duce t he i ssues a ssociated w ith e lectronic waste that is generated at the end of the life of a equipment rather than the carbon generated during its operation.

Ā e appropriateness and application of the legal, compliance requirements relating to the envi- ronment w ill c hange dep ending on t he i ndustry. For e xample, a s de scribed by G odbole (2011), within th e h ealthcare s ector, h ospitals h ave s ignifi cant challenges with disposal of hazardous

52 ◾ Green IT Strategies and Applications

waste, while insurance companies are more concerned with reducing paper utilization or decreas- ing power consumption in their data centers (see Przybyla and Pegah, 2007, for greater details).

Eventually, legislative changes can drive markets and infl uence the strategic directions of orga- nization. F or e xample, a s m entioned i n t he E U d iscussion e arlier, l egislative dem ands re quire vending organizations to re structure their off erings. Legislation changes the bar for competition

and requires creation of new business streams and business for- mats. A nother e xample i s t he i ncoming l egislations a llowing trading o f c arbon o n t he s tock e xchange—that w ill re sult i n signifi cant c hanges i n t he b usiness m odels o f o rganizations a s the value of the organization will depend on its carbon credits.

On t he m anufacturing f ront, c arbon t ariff an d c arbon- related t ax b reaks wo uld c hange t he w ay, s ay, c ars o r toa sters are p roduced. E ven o perationally, i n t he c oming fe w ye ars, one would expect a gauge next to the mileage odometer, show- ing the total carbon emitted by that auto; and legislations that would be binding to t he way that vehicle is manufactured and operated.

Sociocultural and Political Ā is driver comes mainly into play when the society in which an organization resides accepts the en vironment a s o f si gnifi cance i n i ts va lue s ystem. S uch a cceptance o f t he i mportance of the environment by the society brings pressure on the organization to change. For example, the increasing popularity of the Earth Hour (last Saturday of March), wherein almost all large edifi ces around the world switch off their electrical power for an hour, or Earth Day (April 22 in the Unites States a nd March 20 by U N) has a c orresponding bearing on many large busi- nesses’ sustainability strategies. Ā is groundswell of opinions also leads to corresponding shifts in political viewpoint. As a result, the organization is forced to seriously reconsider its business priorities and processes in light of the environment. For example, pressure of social opinion is felt by the marketing department of an organization—by way of its needs to d iff erentiate the products or services; a nother example is of t he school education system t hat inculcates green values in the upcoming generation that then brings to bear political pressure in the form of an emancipated electorate. Such sociopolitical pressure may, however, not be always legally bind- ing. Ā is is the reason, perhaps, for the 34% importance given to it in Figure 2.7 (Trivedi and Unhelkar, 2 010). Ā e po wer i n t he ab ility o f a c ollective o pinion t o e nforce good c orporate citizenship cannot be underestimated. Ā is eff ect of the social opinion is seen in the formation of corporate social responsibility (CSR, 2010) as a part of an organization’s portfolio of activ- ities. CSR, also known as corporate responsibility, corporate citizenship, responsible business, and sustainable business, integrates self-regulation into a b usiness model. Ā e formulation of a CSR policy, that f unctions a s a b uilt-in, self-regulating mechanism, monitors the organiza- tion’s b ehavior, i ts a dherence to l aw, e thical s tandards, a nd i nternational n orms. Ā is same CSR e xtends to emb race re sponsibility fo r t he i mpact o f t he o rganization’s a ctivities o n t he environment, consumers, employees, communities, stakeholders, a nd members of t he public. Ā e sc ale a nd n ature o f t he b enefi ts o f C SR fo r a n o rganization c an va ry dep ending o n t he nature of the enterprise, and are diffi cult to quantify (Garito, 2011). However, the importance of the same cannot be discounted.

An HBR Spotlight article, “Why Sustainability Is Now the Key Driver of Innovation” argues that sustainability offers immense opportu- nities for organizational and technological innovations that yield both top-line and bot- tom-line returns. The sustainability journey of organizations, according to Nidumolu, Prahalad, and Rangaswami, is based on fi ve distinct stages of change: (1) viewing com- pliance as opportunity; (2) making value chains sustainable; (3) designing sustainable products and services; (4) developing new business models; and (5) creating next-prac- tice platforms.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 53

Enlightened Self-Interest Ā is driver comes into play when an organization, on its own accord, realizes the need to b e environmentally responsible, and creates or adopts a green strategy. Ā is driver can include a range of in terests in cluding t he d esire o f a n o rganization t o u nder- take genuine common good, t he need of t he business leadership to achieve personal satisfaction, or si mply t he u nderstanding of the de cision m akers t hat c osts c an b e re duced a nd c ustomers can be more satisfi ed with a self-interest approach that also helps the en vironment. Ā e de sire to h ave a b rand re cognition ba sed around environmental sustainability or an understanding of its impact on business continuity also forms part of these drivers for an ERBS (Cartland, 2005). As seen in Figure 2.8, the survey results i ndicate t hat a subs tantial 56% re spondents b elieve t hat self-initiation i s a d river fo r u ndertaking g reen t ransformation. Ā is fi gure indicates that self-motivation has the potential to b e an eff ective green driver for businesses. A variation of this driver known as incentive-driven compliance (IDC) incorporates inno- vation and self-motivation within its environmental approach for better carbon compliance. Enlightened self-interest, as a driver, is in bet ween the good behavior for fi nancial gains and avoidance of bad, carbon-intensive behavior due to fear of penalties.

Self-interest c an itself depend on va rying factors such a s t he si ze, sector, methods of pro- duction, climate, location, and even management decisions of the fi rm in question. Although a fi rm may not be entirely driven by self-interest, the fact that it is pursuing a honest abidance of local environmental laws and regulations without fi nding methods to bypass them, in itself is a good demonstration of enlightened approach to ERBS. Such a fi rm will be under no pressure from the government to fi t environmental regulations—it would have already found a way to meet them.

Enlightened self-interest can translate into green Essential value (discussed in detail in Chapter 3) that goads the fi rm to operate not only within environmental constraints but also social, ethical, cultural, and legal ones. There are number of incentives for organizations to align their business inter- ests with enlightened interests for the envi- ronment. For example, US $78 billion from the American Recovery and Reinvestment Act funds are allocated for energy effi - ciency and green transportation initiatives (U.S. Government, 2009); CAD $1 billion dedicated by the Canadian government to support environmental improvements for the Canadian pulp and paper industry (Natural Resources Canada, 2009); and Green Building Fund (Grants ranging from AUD $50,000 to $500,000 are available for up to 50% of project costs, $90 million over four years) from the Australian Government to go toward reducing energy consumed in the operation of existing commercial offi ce buildings.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Strongly Disagree

Disagree Agree Strongly Agree

Figure 2.7 Green policies are taken up to increase revenue in an organization. (Based on Trivedi and Unhelkar, 2010.)

54 ◾ Green IT Strategies and Applications

Responsible Business Ecosystem Ā is driver is based on the simple fact that if a large organization that has myriad diff erent associations with its many collaborat- ing smaller sized organizations changes its direction and priori- ties, then those collaborating organizations have to change their priorities accordingly. Figure 2.9 shows this green business eco- system. A large global green organization in Figure 2.9 has three major a reas t hrough w hich i t c an i nfl uence: G reen P rocesses, Green Data Center, and Green Consortiums. When such a large, global o rganization c hanges to en vironmentally su stainability, an en tire e cosystem m ade u p o f t he b usiness pa rtners, su ppli- ers, a nd c ustomers a nd i nternal u sers o rganizations, tog ether with t he i ndustry a nd t he c orresponding business c onsortiums in w hich t he organization e xists a re a ll a ff ected. Ā e se various stakeholders a nd a ssociations a re i nvariably pu shed i nto i mple- menting en vironmentally re sponsible i nitiatives a nd s trategies. Ā is h appens by v irtue of t he multiple i nteractions—by physi- cal a nd e lectronic—that a re u ndertaken i n t he c ourse of d aily business a ctivities. F or exa mple, if a l arge o rganization in sists on de aling w ith m any sm all o rganizations o nly i f t heir p rod- uct or service is within a c ertain self-ascertained or permissible

carbon em ission r ange, t hen t he sm aller o rganizations a re au tomatically g eared to ward c arbon compliance. Ā is scenario is demonstrated by HP, wherein not only are the environmental impacts monitored and managed by the organization, but also by virtue of its own management and active involvement with the members of its supply chain, the overall carbon impact of the activities of the suppliers to HP is also reduced (based on Velte, Velte, and Elsenpeter, 2008).

Ā e impact of business ecosystem can also be felt in the reverse. Ā us, for example, if a large group of collaborating organizations form a consortium and start moving together toward ERBS, then that will force even a large organization to follow suit as, otherwise, it would be left behind. Ā e end re sult i s a n environmentally re sponsible business “ecosystem” t hat a lso encourages a nd

As reported by Rosen et al., in the San Francisco Bay area, if a company tracks its resource usage and its waste generation, it can be certifi ed by the Bay Area Green Business Program. This gives the business a higher profi le in an environmentally sensi- tive community and may translate into cus- tomer and brand loyalty.

Hewlett-Packard is also known to have been a pioneer in the domain of environ- mental sustainability (Velte, Velte and Elsenpeter, 2008; Unhelkar and Dickens, 2008). As far back as 1970s, HP had cre- ated an internal program of recycling print- outs and punch cards that has eventually blossomed into a full take-back program of its electronic goods. Once returned, these electronic goods can then be safely and responsibly disposed off. Interestingly, HP capitalizes on its large size and goes beyond its organizational boundaries to leverage its experience and reputation to help suppliers and others improve along the environmen- tal responsibility dimension.

Factors influencing your organization to adopt Green policies

70%

37% 34%

56%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Government rules

Customer’s demand

Pressure from society

Self initiation

Figure 2.8 Drivers infl uencing ERBS. (Based on Trivedi and Unhelkar, 2010.)

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 55

enjoins these smaller partnering organizations to implement environmentally responsible business practices and initiatives.

In a ddition to t he i mpact o f c ollaborating o rganizations i n a b usiness e cosystem, t here a re also considerations of superimposition of long-term trends upon short-term markets (Goel et al., 2011). Such superimpositions bring about major business changes and restructuring of ideas that are environmentally friendly.

Ā is is particularly true with long-term suppliers who continue to infl uence the organizations they supply to, and are, in turn, infl uenced by them. A business ecosystem is not just made up of physical relationships between customers and suppliers; such an ecosystem would be made up of electronic c ollaborations o n t he web —driven b y web s ervices a nd s ervice o riented a rchitecture (see Chapter 6 for more details). Electronic collaborations off er opportunities to reduce total car- bon within a c ollaborative process t hrough integration of systems. Ā is integration a lso leads to an opportunity to facilitate electronic sharing of information and sharing common operational platforms relating to Green ICT.

Impact of changes to government legislation is also felt by a c ollaborative suite of businesses. Legislative changes impact areas of governance, audit, reporting, and compliance across a group of organizations in an industry. Given the timeframes involved around the implementation for and compliance with legislation, business is often faced with the need to implement tactical solutions to meet immediate needs, which may then become the incumbent or are replaced by longer-term solutions (Sherringham and Unhelkar, 2011). Green ICT can be used to deliver both tactical solu- tions for businesses to meet legislative needs as well as enable longer-term solutions across a group of organizations that form a green business ecosystem.

1

pp Client 1

Large Global Green

Organization

Supplier-1 Supplier-2

Supplier-3 Supplier-4

Govt -Local Govt -State

Govt -Federal

Client-1 Client-2

Client-3

Green Processes

• Lead by Interacting with Partners in a Green way • Reengineer for Green Processes

Green Data Centre

• Lead by Reducing its own emissions • Relocating, Virtualizing Data Centre

Green Consortiums

• Lead through formation and support of Green lobby groups, consortiums

Client-4 Client-5

Figure 2.9 Green business ecosystem of a group of organizations—a large green organization, in its wake, infl uences its partners, customers, and even regulatory bodies.

56 ◾ Green IT Strategies and Applications

New Market Opportunities As mentioned i n e arlier d iscussion, g lobal environmental aw areness, c orresponding legislations, and the sociocultural and political pressure on businesses has resulted in a n ew market that was not visible a decade ago. Ā is new market is based on the suite of opportunities that have opened up for cre ating a nd providing s ervices a nd products t hat assist other organizations i n a chieving their green initiatives and goals. Ā us, we a re talking not only about “businesses that are green” but “green as a business off ering.” For example, the CEMS is a new breed of software applications that are suddenly available in the market. Ā e developers of these new software applications have discovered a market that did not exist earlier. Similarly, smart meters to measure carbon emissions, opportunities t o a pply n ew s tandards f or o ptimization o f e missions, a nd n ew a rchitecture a nd design of low-carbon gadgets is a market that is likely to grow in the carbon economy.

Despite t he d iscussion on t he a forementioned d rivers for businesses to u ndertake g reen i nitia- tives, practical experience suggests that these drivers of a green strategy are usually interpreted by the organization in its own ways. Ā us, in practice, these drivers will result in a combination of drivers for the business to initiate Green IT—depending on what it considers as its own key environmental as well as business issues. For example, a bank may interpret the social and political pressure as the most important initiator for it to undertake green initiative; a mining or a transport company may fi nd it important to heed to the environmental legislations up-front in its approach to ERBS; or, an organization may attempt to create a green business ecosystem through a green broadband (such as done by Iprimus) or carbon-neutralizing your fl ight (such as booking air ticket on Qantas.com.au). Ā us, in the development of a Green IT strategy, not only do these drivers need independent analysis, but they also need to be studied together to see their overall impact on the organization.

Green IT Business Dimensions (Factors) Once the drivers that provide the impetus to the business for its green initiatives are identifi ed and documented, they lead to the discussion on the areas of business that are likely to be aff ected by the changes. Ā e changes resulting from the Green IT initiatives transform t he organization. A n organization c hanges or t rans- forms a long four d iff erent l ines, or d imensions. Ā e se business transformation dimensions have been studied and published by Unhelkar (2010) a nd a re applicable to a ny k ind of transforma- tion. Figure 2.10 shows these four dimensions of an organization in the context of ERBS.

Ā ese dimensions can also be understood as the factors that will change as the organization changes. Figure 2.10 highlights how each of these four dimensions comes into a play when an organization considers environmental responsibilities within its business strategies. Ā es e four dimensions/factors are: economy, people, processes, and technology (Unhelkar, 2009a, 2010). Next four sections describe these four dimensions of change for a greening organization.

Economy Economic c onsiderations a re o ne o f t he ke y f actors i n a n o rganization’s de cision to i mplement environmental policies and systems. Ā ese considerations that deal with the costs associated with green transformations and the return on those costs, are the fi rst ones to appear in the minds of

Economy, people, processes, and technol- ogy provide the four core dimensions of an organization along which it can change. These are not independent dimensions, but are dependent on each other as the orga- nization undertakes green enterprise trans- formation. However, usually, one or two dimensions may lead the transformation depending on the type, size, and current green maturity of the organization.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 57

the leaders and those in charge of the green transformation. Ā erefore, this is a primary dimen- sion a long which green transformation occurs in an organization. Ā ese include the cost-benefi t analysis, as well as fi nancial ROI m etrics—as depicted e arlier i n Figure 2 .7. Figure 2 .7 f urther highlights the stark reality of environmental approaches by an organization. W hen asked in the Trivedi and Unhelkar (2010) survey as to whether green policies are taken up by organizations in order to increase their fi nancial bottom line, close to 35% “Agreed” and 30% “Strongly Agreed” (a

• Green BPM • Collaborative Process Optimization • Reporting (Metrics)

• Attitude • Green HR • Education/Training

• Hardware (Networks, Data Centre, Monitors] • Environmental Intelligence (Cloud, Applications)

• Cost Benefit Profit • ROI on Green • Non-Compliance Costs (Legal)

Economic Technical

ProcessPeople

Figure 2.10 Economy, people, processes, and technology dimensions in an ERBS.

Drivers &

Dimensions of ERBS

Continuous Improvement

Monitoring Drivers / Factors

E R B S

[Green Enterprise Transformation]

ERBS Policies & Practices

ERBS & Green ICT

ERBS Systems

and Support

Environmental Intelligence (EI) Implementation

Green Data

(Warehouses)

Green Information (Analysis)

Green Processes (Models,

Reporting)

Green Knowledge

(Correlations)

IS O

1 40

01

Intelligent Use of all Available Resources in a from a Sustainability Viewpoint in a Strategic Manner to bring about a Green/Sustainable Enterprise with Continuous

Improvement

Figure 2.11 Drivers and Factors lead to an ERBS.

58 ◾ Green IT Strategies and Applications

total of 65% above the neutral line). Ā ese data underscore the arguments throughout this book— that unless environmental initiatives are coupled with economic performance, the motivation to undertake ERBS is much reduced.

Economic growth in the current economy is usually associated with increase in carbon emis- sions. Ā is i s pa rticularly t rue of t he de veloping e conomies, w here a ll t he i ndustries a re on t he rise—leading to increase in emissions across the board and not just restricted to a particular orga- nization. For example, this economic dimensions brings friction between the “developed” and the “developing” worlds—as was evident in the Copenhagen summit completed in December 2009. Ā e dichotomy between the developed world’s consumption of resources and their demand for the BRIC nations (Brazil, Russia, India, and China) to u ndertake their share toward conserving the environment for the future can lead to economic and legal quagmire.

Ā is i s pa rticularly so b ecause t he c onsumption o f re sources a nd c orresponding G HG g en- eration do es n ot ap pear to b e e quitable a cross t he g lobe. S hould a u niform re gulation o n c ar- bon emissions reduction be applied g lobally, it would take away resources a nd growth potential from t he a forementioned d eveloping e conomies. How ever, not r educing c arbon e missions w ill harm t he f uture g enerations g lobally a nd i s n ot su stainable. Ā us, t he e conomic d imension for green business transformation is fraught with challenges for the single organization, a consortium within an industry, and with entire nations. Additional discussion on this dimension appears in Chapter 3—especially on the economic impact of policies and vice versa.

Technologies Technologies p rimarily i nclude t he h ardware, n etwork i nfrastructure, so ftware, a nd ap plications within the organization. Ā ese te chnologies a re su mmarized i n Figure 2 .12. Ā is is a lso t he more “popular” and visible aspect of Green IT. Switching off monitors, virtualization of servers, and eschew- ing printing on physical paper are the initial, visible aspect of change that occurs along this dimension. Ā is is then followed by the long-term strategic change in the way the data center is organized (includ- ing its physical building, the rack system, and the actual servers themselves) and operated. Emerging technologies, suc h a s S ervice o rientation, Sa aS, a nd C loud c omputing t ake t his d imension to t he next level—leading up to what is called “Environmental Intelligence.” Ā ese technological aspects of Green IT changes are discussed later (particularly Chapters 4 and 6) in this book.

Ā e technical dimension presents challenges in terms of the size and position of the organiza- tion. For example, small and medium enterprises (SMEs) tend to have a diff erent approach to t he technical dimensions as compared to l arge multinational technology producing vendors and con- glomerates (Marmaridis and Unhelkar, 2011). What in the SME space is heralded as technologically innovative and new may actually have been around at the enterprise space for years. For example, virtualization, which is considered a “given” for most large organization, may have just appeared in a small business—perhaps only as a desktop virtualization. Ā us, in the technical dimension, large enterprises c an m ake signifi cant i nroads toward t heir Green I T accomplishments t hrough server consolidation and energy-effi cient data center technologies, whilst smaller businesses may not able to achieve the same rate of change because they do not use that many servers or rely on data center’s for their hosting. In such cases, SaaS-based solutions that a re now rapidly emerging may provide excellent opportunities for small businesses to shift their hardware/operating costs and carbon gen- eration over to the SaaS vendors. SaaS-based information technology solutions will make informa- tion readily accessible while leveraging data center cooling and power consumption effi ciencies and do aw ay w ith up-front c apital c osts for purchasing h ardware s ervers to r un f rom t heir premises. Ā ere is a lso a d irect correlation between turning away from desktop computers to u sing laptops

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 59

and other mobile or portable devices and moving closer to Green IT. Ā is dimension of Green IT transformation is thus aff ected by more than one of the drivers discussed previously—particularly rules and regulations and responsible ecosystem. Ā e introduction of eco-friendly technologies and technical management practices sees the organization comply with rules and regulations measur- ing power consumption. On the other hand, lowering the organization’s carbon footprint through intelligent application of technology and greener infrastructure helps the organization further com- ply in the context of responsible business within its ecosystem of operation.

Processes Ā e process dimension of an organization deals with “how” things are done within an organiza- tion. Figure 2 .10 l ists G reen B PM, C ollaborative b usiness p rocess o ptimization a nd rep orting (with metrics) as some of the key elements of process aspect of an environmental strategy. Green BPM (discussed in detail in Chapter 5) is made up of process management as well as process reen- gineering. Business process reengineering is t he f undamental rethinking a nd radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of perfor- mance such as cost, quality, service, and speed (Hammer and Champy, 1993). Ā e need to reengi- neer the business operations, process, and services according to the environmental para meters has also been highlighted by Murugesan (2008). Herein, an organization model studies and optimizes

ERBS

Buildings

Data Centres

Education and Training

(Attitude and Culture)

Technology (Hardware/ Servers/Net

work) Upgrades Applications

/Systems upgrades

Green Process

Reengineering

Green Metrics &

Measurements

Legal Compliance

Figure 2.12 Various areas of infl uence of a ERBS.

60 ◾ Green IT Strategies and Applications

its processes in order to i mprove its green credentials. Ā is work is made up of optimizing exist- ing processes and that of introducing new green-aware processes that will not only reduce carbon emissions but also enhance customer experience (e.g., Aronson, 2008).

Ā e process d imension of a n organization rem ains a s p erhaps t he most v isible one a nd it i s often used to judge the level of ecological responsibility for Green ICT of the organization. Ā is is because the process dimension has immediate and measurable eff ects to the carbon footprint of the business operation. It also has far-reaching eff ects on clients, vendors, a nd bu siness partners in the collaboration. Ā e process carbon footprint and compliance for Green ICT operations by other business pa rtners c an serve a s a good proxy for measuring t he eff ectiveness of Green ICT initiatives within the organization.

In addition to t he need for optimizing the business processes themselves, there is also a need to pay attention, in this dimension to the internal, support processes. For example, organizations that are in the business of banking, insurance, airlines, or hospitals have a need to organize their support and maintenance processes around their IT assets and infrastructure. Ā e refore, support processes such as those called upon when a user machine breaks down, need to be considered in light of their overheads and corresponding carbon generation within the organization. Proactive maintenance o f de vices a nd s ystems, o utsourcing o f n oncore s ervice f unction, p recautionary actions such as installation of antiviruses and antispam, can a ll contribute to o ptimized support processes and reduced carbon generation.

People Ā is is the most diffi cult and most complex dimension of a green enterprise transformation. While the people aspect of an organization’s behavior has been studied to in great depths, in this discussion the focus is on the attitudes of individuals and the sociocultural setup in which they operate in the context of the environment. Ā e same sociocultural driver that drives the organization toward Green IT also provides the challenge when the organization actually undertakes that transformation. In addition to the individual employee and, also, the customer at the grassroot level, there is a signifi cant challenge in this people dimension when it comes to business leadership for Green IT transformation.

An enterprise-wide green strategy is best driven from the top of the organization in order to ensure its success. Leadership within this people aspect, such as that by senior directors and CxOs, plays a decider in an environmental initiative. Ā e involvement of senior management in bringing about a change in this people dimension is vital—and it has to be done at an early stage of a green initiative. Making the key stakeholders fully aware of the importance of the green initiative for the organization and, through them, promoting the initiative to bring about fundamental change in the attitudes is the key to work in this dimension. While such involvement from the senior leader- ship requires substantial commitment in terms of time, money, and other resources (as discussed earlier in the economic dimension), still the attitude and the subjective viewpoints of people play an equally major role in the success of a Green IT project.

People thus become a major diff erentiator between two organizations with similar drivers for sustainability. O rganization of te ams for t he Green I T project a nd f urther e ff ect of t he C GO’s mindset on the project are discussed in Chapters 3 and 8. Finally, people also need to be consid- ered by large organizations in terms of attracting new talents. It is not uncommon for the bright MBA graduate to select and choose to work for an organization that boasts high green credentials than only a good workplace. Ā us far, the discussion in this chapter has been on the drivers and the dimensions for Green IT transformation. Ā ese drivers and the dimensions under which the transformation takes place are discussed from the viewpoint of their core characteristics.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 61

Finally, i n t his d iscussion, i t i s wo rth rei terating t hat t here i s n o si ngle d river, d imensions, or Green IT strategy that will fi t a ll o rganizations. Figure 2 .11 sh ows a c omprehensive v iew o f the drivers and dimensions leading to a c omprehensive ERBS. Ā e policies, systems and support providing basis for what is called Environmental Intelligence (EI) (Trivedi and Unhelkar, 2009). Ā e data, information, process and knowledge aspect of Green IT are also integral to t he ERBS as shown in Figure 2.11. Although the earlier discussion has distilled the commonalities in these aspects of a s trategy, still organizations need to i dentify, develop, a nd implement their own spe- cifi c short- a nd long-term g reen strategies. Ā us, t hese va rious a forementioned a spects of Green IT drivers and dimensions vary depending on the industry sector and the size (small or large) and type (product or service) of the organization. Ā ese a spects o f G reen I T d rivers a re ap plied i n diff erent combination and with varying emphasis. Ā e case studies, later in this book, attempt to highlight these diff erences in t he way t he drivers a nd dimensions a re interpreted a nd applied to Green IT. Table 2.2 lists the major Green IT considerations for diff erent organization types—with examples of corresponding industry sectors in which these organizations exist.

Table 2.3 lists some of the nuances of Green IT strategies when it comes to sp ecifi c industry verticals. E ach i ndustry s ector l isted i n Table 2 .3 h as its own va riation to G reen I T dep ending on whether it is a product, service, or infrastructure organizations. Similarly, size and location of organizations bring variations in their Green IT strategies.

Developing an ERBS An ERBS is the result of the strategic vision of the organization’s leadership. I n t he c ontext o f t his d iscussion, t his E RBS a ims for strategies that will be relevant in a 3–5-year time period. Developing suc h a s trategic v ision re fers to w hat t he leaders of the enterprise would expect it to look like in the future (Lan and Unhelkar, 2 005). I n t he c ontext o f g reen s trategies, t his i deal image, m ade up of e xpectations a nd g oals of t he organization,

Wills (2009) has applied the lean approach to the greening approach under the aegis of what is called Green-Stream Mapping (Wills, 2009). Those environmental consid- erations include seven areas of focus that are derived from the International Standard of Sustainability Reporting: Energy, Water, Materials, Garbage, Travel/Transportation Emissions and Effl uents, and Biodiversity.

Table 2.2 Organizations Consideration of Green IT Strategies

Type of Organization Major Green IT Consideration

Product (retailers, electronic goods vendors, vendors of consumables, packaging)

Operational carbon (as they don’t have production infrastructure and overheads). The unit of carbon-producing device or product is, however, easier to calculate. Therefore, economy and technology dimensions may be more handy to start with. Furthermore, inventory, supply chains, and distribution processes may assume signifi cance in the Green IT effort.

Service (banks, insurance, education/ healthcare)

People and their attitudes play a crucial role in service-based organizations. Therefore, process and people dimension of transformation become highly signifi cant. Effi ciency in processes can have a dramatic impact on the carbon footprint of service- based organizations.

Infrastructure (buildings, telecom)

Architecture and design at the start of the project is a vital consideration. Furthermore, with telecom, improvement and effi ciency in communication around the world can be another major contributor to reduction in carbon footprint.

62 ◾ Green IT Strategies and Applications

Table 2.3 Industry Verticals and Green IT

Industry Verticals and Green IT Nuances

Education—A service industry in which processes are important. Green IT can be used in collecting as well as promoting educational material globally. Online education mechanisms, sharing of online classrooms, and tutorials can provide signifi cant advantage in terms of reduced infrastructure and, therefore, reduced carbon.

Hospital/Medicine—In addition to the processes and people relating to Green IT, attention should also be paid to the fact that major IT revolutions have resulted in high-end medical equipments, which, while saving lives, also contribute to the carbon footprint of the hospitals. These medical equipments, together with the IT systems and support, make up a substantial amount of carbon emissions.

Entertainment—has signifi cant infrastructure as well as operational carbon-costs. For example, most high-carbon emitting equipments such as televisions, cable TV, movies, theaters, and gaming are studded with carbon-generating gadgets. There is a need to calculate the carbon footprint by separating the procurement/ installation, operation, and disposal of equipments.

Finance—Information technologies and systems are heavily used in the fi nancial world, right from providing prices for stocks through to completion of trades. The entire global wealth generation and growth depends on these high-end servers and equally high-end communication equipments that have direct carbon connotations.

Security—In a different, security-conscious new world, the security vertical is replete with electronic gadgets that produce signifi cant carbon. Furthermore, with security gadgets, it is almost mandatory that they operate all 24x7 duration. Therefore, gadgets such as alarm systems in homes, vehicles, business premises, and the associated TV monitoring, recording, and analysis have a tremendous carbon-cost in addition to the actual costs of having and operating these devices.

Telecom—Clearly an infrastructure type of organization, with challenges in terms of procurement and installation of large (and many a times public) infrastructures. The carbon footprints of the installations are much higher than those of the operations. End-user devices and applications supporting telecom business (such as the billing and operational support) also need to be studied from their procurement and operational emissions viewpoint.

Bank—Although a fi nancial services industry, the IT infrastructure and applications used in the banking sector are staggering. Banking vertical is one of the very high emitter of carbon emissions and, as such, requires strategies that span both services and infrastructure aspects of Green IT.

Packaging—A unique product-based industry that is involved in producing and delivering packaging materials in myriad different forms. Reusability and recycling of packaging materials as well as innovative ways of creating packaging is likely to impact environmental sustainability in a major way in this vertical. Green IT can be used as a support mechanism to facilitate optimized production of packaging.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 63

provide the primary input for the development of those strategies. Ā is input into the initial envi- sioning process of a green organization is provided by the drivers and dimensions of Green IT. A simple and direct vision, based on the drivers and dimensions translates into the strategic plan. Ā e strategic vision and the ensuing strategic plan should be an actionable plan. Leadership and senior management need to be directly involved in the development of the green strategic vision for their enterprise. Ā is requires them to carefully evaluate the enterprise from its carbon perspective and the trends of the entire future business environment in which the enterprise exists.

While a 3 –5-year time period is a good starting point in terms of the impact of the strategic plan, still this period can vary from industry to industry. For instance, the oil industry may have a 10+ year strategic plan, whereas a d ress manufacturer in the fashion industry may have only a strategic plan for Green IT that would be current for no more than a couple of years as the contents and expressions in that business sector changes rapidly.

Green IT strategies require due consideration to the resources, knowledge, and skills that are required in the green transformation, as also the current resource utilization in development, pro- duction, services, markets, and sales. Perhaps some indication of what the competitors are doing in the green space may also be of importance, as it may indicate the urgency and importance of action.

Wide-Ranging Considerations in ERBS Development o f a n E RBS re quires d ue c onsideration to w ide-ranging o rganizational f actors a s shown in Figure 2 .12. Many of t hese considerations a lso appear in t he development a nd imple- mentation of a Lean IT strategy and framework.

Figure 2.12 lists the specifi c considerations in development of an ERBS. Ā ey are as follows:

Buildings and associated infrastructures need to be considered from their initial design and ◾ construction viewpoint. Ā ere is opportunity for substantial reduction in t he emissions of an i nfrastructure i f at tention i s pa id to i ts i nitial de sign a nd c onstruction f rom a c arbon reduction viewpoint. Data centers, which a re specialized buildings to h ouse data a nd computing servers a s well ◾ as n etwork e quipments o f t he o rganization, re quire m ajor s trategic at tention f rom a c ar- bon perspective a s the impact of such decision in the early stages of a d ata center a re long lasting. Education a nd t raining (attitude a nd c ulture) of t he s taff i s of primary c oncern i n de vel- ◾ oping a n ERBS. Ā is would require not only pay ing at tention to t he current at titude a nd understanding t he pat h for c hange, but a lso c onsidering g reen H R t hat provides su pport and encouragement for changes to the attitude. Technology (hardware/servers/network) upgrades that will invariably occur as the organiza- ◾ tion p repares s trategies fo r a g reen t ransformation. Ā is c onsideration i ncludes reu se a nd recycling of existing hardware as well as strategies for replacing it with new, more carbon- effi cient hardware. Applications/systems upgrades need to be considered in two major areas—fi rst, the upgrade ◾ of the existing applications and systems to enable incorporation of carbon data within them and, second, to strategize for the new carbon emissions management software that is dedi- cated to collecting, storing, analyzing and reporting only on carbon data.

64 ◾ Green IT Strategies and Applications

Green process reengineering also includes green business process management (as discussed ◾ in Chapter 5). Ā e reengineering strategies need to appear in the overall ERBS in terms of the approach to their identifi cation, modeling, and optimization. Green metrics and measurements that form part of identifying the “as is” and modeling the ◾ “to be” state of the organization (in-depth discussion in Chapter 3). Legal compliance has to be an integral part of Green IT strategies. Legal requirements can ◾ vary f rom l ocal a nd s tate l egislations t hrough to c arbon l egislations at t he n ational l evel. Ā ere a re a lso i nternational c onsortiums a nd su mmits t hat d ictate t he l egal re quirements and need to be incorporated in the ERBS.

Ā e above discussion indicates that a b usiness striving to b e green needs to cre ate a c ompre- hensive strategy that should include these wide-ranging considerations in it. In fact, depending on the type, size, location, and industrial vertical, many more factors will have to be considered in the development of a Green IT strategy.

Rosen et al. (2011) have also suggested factors that need to be considered in developing eco- nomic viability of green initiatives. Ā ese include waste management, toxin measurements, water quality, resource usage, recycling and reuse, and product lifecycle impact.

ERBS a lso re quires de tailed c onsideration to en vironmental i ntelligence a cross a ll f actors within it. Ā us, t he e xisting business i ntelligence s ystems, processes, a nd c ontents a re e xtended and refi ned to handle EI when it comes to implementing ERBS.

Steps in Developing an ERBS After giving due consideration to the wide-ranging factors infl uencing ERBS, the focus should be on the steps in developing that strategic document. Figure 2.13 shows, at an abstracted level, what are the major phases (steps) in the development of an ERBS.

As m entioned e arlier, t hough, t he de velopment o f a n E RBS re quires a ctive pa rticipation ◾ from t he business leadership—including t he C EO a nd t he C GO (Chief Green O ffi cer— discussed in Chapter 3). Murugesan (2008) has also highlighted the need to engage with the

Green Business Objectives

Strategy Descriptions

Policy-based Pre-conditions

Resource Requirements

Transformation Plans

Iterations

Dimensions Drivers

Metrics Risks

Figure 2.13 Steps in developing an ERBS.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 65

key stakeholders and create awareness of environmental issues in the green strategies for the enterprise. Ā e drivers, dimensions, length and breadth, metrics, and measurements are all required to be embedded in the ERBS.

Ā ese major phases in the development of policies and practices (discussed in Chapter 3) and the Green IT transformation roadmap (Chapter 9) are further expanded in the ensuing sections. However, these phases are worth discussing here in terms of what they entail and what resources are required by organizations to undertake these steps.

Green Business Objectives Ā e green business objectives are the core objectives for a business undertaking green transforma- tion. Following are some of the points that can be used to fo rmulate specifi c green objectives in the development of ERBS:

Ensuring a s ynergy b etween t he c ore b usiness o bjectives a nd t he a ccompanying g reen ◾ objectives Length of time for potential application—3–5 years being ideal ◾ Key drivers and dimensions that are impacting the organization ◾ Identify the growth potential and means for returns on green investment ◾ Attention to collaborative opportunities especially at a global level identifi cation of markets ◾ and regions for green products and services globally Finding the niche where the competitive advantage for the organization lies ◾ Identifying t he a reas fo r fo rmal G reen I T aud its to a scertain t he g reen m aturity o f t he ◾ organization Development of Green HR as a part of the strategy ◾ Optimization and integration of supply chain systems ◾ Incorporation of government rules and regulations ◾

A SWOT (Strength, Weakness, Opportunity, Ā reat) a nalysis can be carried out to f urther fi n- tune the green business objectives. In this regard, the environmental survey (Trivedi and Unhelkar, 2010) quizzed t he pa rticipants a bout t he c urrent s tate o f t heir o rganizations w ith re spect to i ts green credentials. Ā is current state would give a good indication of the green preparedness of the organization and a lso an indication of the areas in which eff orts need to be focused. Ā e results from that survey are shown in Figure 2.14.

Ā ese results can also be interpreted as follows:

Forty-three percent of the participants agreed and close to 26% strongly agreed on the fact ◾ that t heir organizations a re aware of t he importance of Green metrics. Ā is indicates t hat there is a signifi cant awareness of the need for specifi c green metrics when the green business objectives are specifi ed and developed within the ERBS. Ā ir ty-fi ve percent of the participants agreed and close to 8% strongly agreed on assuming ◾ responsibility for its carbon footprints within their organizations. Ā ese results also indicate that t here a re a si gnifi cant number of respondents who do n ot believe t hat t heir organiza- tions are taking responsibility for its carbon footprint—leading to a p rimary consideration of responsibility in developing ERBS.

66 ◾ Green IT Strategies and Applications

Ā irty-one percent of t he pa rticipants a greed a nd c lose to 9% s trongly a greed on t he f act ◾ that their organization has a higher power consumption than other similar organizations. Twenty-six percent of t he pa rticipants agreed a nd close to 21% strongly agreed to t he fact ◾ that they have a person responsible for environmental matters at their organizations. Nineteen percent of the participants agreed and close to 9% strongly agreed to the ◾ fact t hat t hey a re u sing de vices a nd/or so ftware to m easure c arbon em issions i n t heir organizations. Eighteen percent of the participants agreed and close to 7% strongly agreed on the fact that ◾ their organizations are measuring its carbon emissions accurately. Sixteen percent of the participants agreed and close to 3 % strongly agreed to t he fact that ◾ carbon footprint in their organization is the driver for carbon reduction. About 2 9% d isagreed-to-strongly d isagreed o n u sing o r h aving t hese g reen cre dential i n ◾ their organizations.

Strategy Descriptions Figure 2.13 shows strategy descriptions as second phase in the development of an ERBS. Describing the green strategy should be done in clear terms and with goals and KPIs that are measur- able. Strategy de scriptions i nclude a nalysis of c urrent business process, consideration to organizational values, and description of underlying IT systems and hardware. For a 3–5-year strategic

Strategy descriptions include specifi cations of the products and services affected by Green IT, current and anticipated market conditions and customer behavior and sup- plier behavior, spelling out the necessary and required expertise, knowledge, skills and goals/objectives.

12%

7%

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10%

17%

28%

31%

35%

33%

8%

38%

19%

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9%

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18%

31%

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18%

26%

43%

19%

9%

8%

7%

21%

26%

9%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Has a higher power consumption than other similar organizations

Assumes responsibility for its carbon footprints

Measures its carbon emissions accurately

Has a person responsible for environmental matters

Is aware of the importance of Green metrics

Uses devices and/or software to measure carbon emissions

Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 2.14 Current state of organization with respect to its green credentials.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 67

plan, it is not uncommon for the organization to spend anywhere between 3 and 6 months devel- oping a comprehensive strategy description. Strategy descriptions lead to green enterprise trans- formation projects that infl uence the organization for between 3 a nd 5 years. Ā is also requires an understanding of the current strategic plan if it exists.

In the environmental survey (Trivedi and Unhelkar, 2010), the participants have been asked about the green strategies that are formulated to h andle these factors at t heir organizations. Ā e results from that survey are shown in Figure 2.15.

Ā ese results can be understood as follows:

Seventy-eight percent of the participants agreed that their organizations anticipated changes ◾ to governmental regulations related to carbon emissions. Fifty-seven percent of the participants agreed that their organizations enhanced the human ◾ resource management through green strategies. Fifty-fi ve p ercent o f t he pa rticipants a greed t hat t heir o rganizations c onducted s trategic ◾ changes to how the business operates to reduce carbon emissions. Fifty-two percent of the participants agreed that their organizations elevate corporate repu- ◾ tation by adopting green strategies. Forty-six p ercent o f t he pa rticipants a greed t hat t heir o rganizations a re i dentifying n ew ◾ market opportunities through adoption of green strategies.

Policy-Based Conditions Develop and implement a Green IT policy that aims to achieve higher utilization of your IT sys- tems while reducing energy use and lessening your other environmental impact. You don’t have to do all at once—adopt a phased approach.

Ā e Green IT policies of an organization are derived from its strategic descriptions. Chapter 3 discusses the development of policies and their practices in great detail. Ā e impact of policies,

51%

55%

78%

0% 50% 100%

Operational (day to day) improvements to

reduce carbon emissions

Strategic changes to how the business

operates to reduce carbon emissions

Anticipate changes to governmental

regulations related to carbon emissions

54%

52%

46%

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0% 20% 40% 60%

Improve your risk management with

respect to environment

Elevate corporate reputation by adopting

Green Strategies

Identifying new market opportunities

through adoption of Green Strategies

Enhance human resource management

through Green Strategies

Figure 2.15 Green strategies are formulated to handle the seven organizational (business) factors.

68 ◾ Green IT Strategies and Applications

however, is not just in their manual practices. Instead, policy-based conditions for Green IT can be embedded in the organization’s service-oriented architecture and protocols. Ā us , the policy-based conditions have the opportunity to infl uence t he automation of G reen I T i mple- mentation. Ā is is a n ex cellent a nd p rofi table o pportunity fo r a n e lectronic o rganization to embed policies within its services, applications, and packages and thereby take lead in Green IT implementations.

Physical development of policies, as discussed in Chapter 3, can be based on the SMART (http:// www.smart2020.org/_assets/fi les/02_Smart2020Report.pdf—accessed March 16, 2011) approach to green enterprise transformation. In terms of green policies, they need to be SMART—specifi c, measurable, attainable, realistic, and timely. SMART can be further understood as follows:

Standardize (S) how energy c onsumption a nd em issions i nformation c an b e t raced a cross ◾ diff erent processes. Monitor (M) energy consumption and emissions across the economy in real time, providing ◾ the data needed to optimize for energy effi ciency. Accountability (A) with the help of tools and systems. ◾ Redesign (R) based on systems and technologies—that will impact the equipments, materi- ◾ als, processes, and attitudes. Transform (T) the way we work and play and will do so in a low-carbon economy. Ā is will ◾ be based on a green enterprise transformation plan.

Resource Requirements A green strategic plan has to have a suite of resources that are required to undertake and maintain green t ransformation. R esources i nclude p eople, p rocesses, a nd te chnologies t hat en gender t he green transformation as well as those that are aff ected by the transformation.

Transformation Plan/Timelines Development of a g reen enterprise t ransformation plan i s t he fi nal a nd i mportant s tep i n t he development of an ERBS. Ā is transformation plan is a project plan that contains tasks, roles, and deliverables together w ith t he t imeline for delivery. Chapter 9 d iscusses i n detail t he cre- ation o f suc h a t ransformation p lan. U sually, t his t ransformation p roject p lan p rovides t he roadmap for t ransformation. Ā is p lan c an b e d ivided i nto t wo pa rts—a h igh-level roa dmap that identifi es major areas of work, deliverables, and timelines. Ā is can then be followed by a detailed, task-by-task project plan that makes use of all know project and program management techniques.

Iterations and Risks Figure 2.13 also indicates that the development of an ERBS should not be a u nidirectional pro- cess. Instead, it should be de veloped a s a n iterative process—going t hrough t he d rivers, d imen- sions, risks, and metrics more than once. Ideally, there should be three iterations to a rrive at t he fi nal and comprehensive actionable Green IT plan. Ā ese iterations, over a period of 3–6 months, would also include observing the industry trends and new developments with respect to Green IT. Ā e green policies have to be revised based on these trends.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 69

Ā ese iterations also indicate the approach to implementation of the policies—that should also be based on iterations. Iterative refi nements of the policies are expected during practice. However, the c oncepts of c ontinuous i mprovements i n pr ocesses, p eople, a nd t echnologies t hat pr ovide impetus to a lean business initiative also apply here.

KPIs in Green Strategies Key p erformance i ndicator ( KPI) p rovides i nformation o n a n organization’s performance against defi ned and measurable cri- teria. K PIs c an p rovide h elp i n m easuring t he p rogress o f a n organization i n t he a rea o f en vironmental su stainability a nd Green IT. Since the progress of a g reen initiative must be mea- sured against the stated goals, the KPIs provide an opportunity to a scertain w hether t he s trategic g oals h ave b een a chieved o r not. Ā e K PIs n ot o nly m easure t he p rogress b ut a lso p rovide indication of what needs to change during the course.

Since t he d rivers, d iscussed e arlier, p rovide t he n ecessary impetus fo r t he en vironmental ap proach i n a n o rganization, they provide valuable input in creating KPIs. However, the four dimensions are along which an organization transforms itself— therefore, the four dimensions of a green enterprise transforma- tion, n amely t he e conomy, p eople, p rocess, a nd te chnologies, provide an excellent basis for the formulation of the KPIs.

Ā e KPIs lead to an indication of the Green IT metrics that need to be collected. Standards, metrics, and monitoring the progress of sustainability are closely associated with K PIs evaluated for adoption. Standards a llow t he enterprise not only to m easure success in a s tandard way, but also to compare itself against industry benchmarks and other organizations.

Having identifi ed KPIs and metrics, the processes and systems to collect the metrics need to be in place. For example, if reduction in paper consumption is a KPI, then the measurement of paper consumption needs to b e planned a cross depa rtments, processes, a nd t hen t he c ompany. Ā ere will be a need to know diff erent usages of paper (e.g., mailing, reports, copy machines, employee printing, forms), and a means of measuring consumption across these diff erent usage categories. After collecting this data on the KPI, there is a need to store the results and analyze them for their sustainability knowledge.

Following are some typical KPI that is required to be embedded in an organization that is undertaking green strategies.

Ā e K PI g roups, l isted i n Table 2 .4 can b e f urther e xpanded a long t he fo ur d imensions. However, each dimension has its own nuances when it comes to Green KPIs. For example, a KPI that is entirely focused on carbon reduction irrespective of cost considerations may not be accept- able i n t he e conomic d imension o f t he o rganization. A lternatively, a te chnologically a dvanced energy-effi cient c ooler m ight u se l ess en ergy a nd h ence l ower o perational c ost; b ut t he c apital expenses toward such a cooler will be part of the economic dimension. Ā us, K PIs should regu- larly tie business effi ciency with carbon effi ciency. Savings in carbon related to va rious aspects of the organization such as production, sales and marketing, research and development, and admin- istration—all need to be related to savings in costs.

These environmental KPIs can vary depending on the business and the spe- cifi c goals of the business. For example, an airline may decide to base its KPI on the “carbon produced per passenger kilome- ter” whereas a hospital may have “carbon emission from IT instruments per patient” as its criteria to measure its carbon per- formance. Measurable targets for each KPI need to be set as the strategies evolve. These performance areas are then mea- sured to ascertain success or otherwise of the environmental strategies of the organi- zation. KPIs in the Green ICT domain will refl ect the organization’s environmental goals and provide the basis for measuring the factors that are crucial to the organiza- tion’s success.

70 ◾ Green IT Strategies and Applications

Further, when K PIs are discussed, there is a n eed to ke ep in mind the metrics and measure- ments t hat a re re quired to su pport suc h K PIs. S etting K PI t argets i s t he e asier pa rt; measuring and reporting on the actual emissions is the greater challenge. Ā erefore, setting a m easurement program u sing smart meters t hat feed t he d ata into t he s ystem t hat c an c ollate a nd a nalyze t he resultant d ata i s a n i mportant a spect of K PIs. Formulation of K PIs a lso re quires re ferencing to the local, national, and international standards and practices—feasible. Finally, each KPI needs to be considered in the context of the organizational conditions, requiring some premonition of the caveats that should be adhered to in the use of those KPIs.

EXAMPLES OF GREEN KPIS

Example KPI-1: My organization will reduce 10% over its last year’s energy bill. This reduction is aimed over next 3 years, at the end of which, we will review all factors associated with this reduction.

Caveat: Without reducing business activities. Explanation: Enhancement in business sustainability through not only reduction in energy con-

sumption but also through effi ciency in overall business processes. ERBS provides organizations with a mechanism to consider energy-effi cient measures, monitor, assess, and manage their carbon emissions.

Example KPI-2: My organization will eliminate the use of paper in all communications in the next 3 years.

Caveat: Except where it is legally binding to produce paper-based documentation. Explanation: Elimination of paper, especially in banks, insurance, and legal fi rms, is not going

to happen immediately. Due consideration to the legal requirements of paper-based documentation is required.

Example KPI-3: My organization will reduce production machines operation hours by 20% via intense focus on idling times of the machines over the next 3 years. At the end of the 3-year period, all factors impacting operation and production costs will be reviewed against their carbon costs.

Table 2.4 Green KPIs in Four Groups

Primary Dimensions

Example Goals/KPIs (Timelines, Lengths, and Depths) My Organization Will Experience the Following:

Economic Reduction in energy consumption by 10% of its current level per year for 3 years.

Increase in green services (addition of one detailed service dedicated to green).

Technical Use virtualized data servers for all its data warehouse; use smart meters to record, repost, and control emissions.

Process Optimize SCM to reduce emissions by re-engineering individual processes.

People Train people for Green IT at all levels.

Telecommute once a week to reduce emissions.

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 71

Caveat: This 20% reduction over 3 years will require training for the staff, as well as use of power- saving gadgets (including software) that can help detect idling times of various machin- eries and equipments in the organization and switch them off.

Explanation: The cost of training of personnel and the costs associated with procurement of power- saving gadgetry are important aspects of this KPI. Therefore, they need to be included in the calculations of ROI on the carbon reduction initiative.

Example KPI-4: My organization will promote the creation and implementation of Green IT strate- gies and the subsequent carbon savings by adhering to standards and guidelines and proper label- ing of green compliance in products.

Caveat: Standards associated with labelling of Green products are continuously changing; they are also different from region to region. Costs and effort are required to ensure formal labelling.

Explanation: All products and services need to disclose their carbon contents. This would usually result in enhancement of public image and thereby increase the marketability. A 2009 study by Forrester Research, Inc., “The Rise of the Green Enterprise: A Primer for IT Leadership’s Involvement,” notes that in the “Economist Intelligence Unit’s February 2008 survey of more than 1,200 business executives, companies that rated their Green efforts most highly over the past three years saw annual average profi t increases of 16 percent and share price growth of 45 percent” (Carotenuto, 2009).

Example KPI-5: My organization will ensure its carbon emissions are within 150 kT as stipulated by the government regulations in the year 2010–2011.

Caveat: The government regulations will change. Keep in mind this changing nature of the regula- tions and caps when committing to staying within stipulated limits.

Explanation: An ERBS can help an organization start complying with the governmental regula- tions. For example, an ERBS implementation contains environmental web services that increase the access to the information about the carbon status of the organization. Functional capabilities of the enterprise can be updated to ensure carbon compliance. However, such compliance is based on a dynamic fi gure that will keep changing as new regulations are brought in place.

Example KPI-6: My organization will provide easy access to information about carbon emission status.

Caveat: Privacy of information should be of immense importance, as increasing carbon perfor- mance of an organization will be as important as its profi t performance.

Explanation: Access to carbon performance of the organization can be part of good corporate citizenry. This carbon data presents the personality of the organization to the con- sumer and the general public. Therefore, making this data available is going to help the organization and the consumers in understanding its direction. This is similar to the requirements to disclose the company’s fi nancials to the stock market within limits and legal requirements. However, similar to fi nancial data, there is a need to limit what gets presented to the public to ensure that the company is not disadvantaged in its market dealings.

Example KPI-7: My organization will compare its green efforts against industry standard bench- marks in order to improve its carbon performance. This rating comparison will occur over next 5 years, at the end of which, we will review the impact of rating on organization revenues, profi t increase, and share price growth.

Caveat: The benchmarks and standards are themselves likely to change over the period of 3–5 years.

72 ◾ Green IT Strategies and Applications

Explanation: None of the standards and benchmarks associated with carbon performance of orga- nizations are steady. As this gets written, the prime minister of Australia, Ms. Julian Gillard has met with President B. Obama - and the meeting has refl ected a new direc- tion associated with carbon taxing for the Australian government. Similar vacillating policies relating to carbon emission control can be seen elsewhere in the world result- ing in uncertain standards and benchmarks.

Example KPI-8: My organization will establish a suite of green alliances across various business lines. The alliances are aimed over the next 3 years, at the end of which we will review the impact of these alliances on organization business growth.

Caveat: Trust and security of alliances is a factor that should be considered upfront. Explanation: ERBS promotes organizations to collaborate with each other, resulting in a suite of green

alliances across various lines of business. Organizations can assist each other through formation of common standards and subscribing to them, sharing carbon data and infor- mation through collaborative web services, and share experiences in terms of successes and risks associated with their green initiatives. Eventually, the monetizing of carbon pro- cesses will require greater alignment by multiple businesses—as is envisaged by ERBS.

Additional KPI Examples My organization will reduce the energy consumption of its IT systems by 20%, 15%, and ◾ 10% every fi nancial year over the next 3 ye ars which will results in total cost savings over the current operation of 50%. My organization will reduce the rest of its energy consumption (non-IT, such as smart light- ◾ ing, air conditioning, car fl eet) by 10% per year over previous year for the next 3 years. My o rganization w ill i ntroduce reu se o f m aterials a nd e quipment b y m aking c onscious ◾ attempt i n t raining, e ducating, a nd e quipping p ersonnel. S uch reu se i ncludes re sponsible recycling of e-waste (inc toners, unused IT/mobile phones; see Unhelkar (2009b) for detailed discussion). My organization is committed to buying Green IT products. ◾ My organization is committed to use of renewable/green energy wherever possible. All busi- ◾ ness processes in the organization will be modeled and subjected to Green IT audit. Forty percent of all work that requires physical meetings will be conducted using telework- ◾ ing facilities such as video conferencing and social media networks. My organization will achieve Green IT maturity of Level 3 in the next 3 years. ◾ All employees will be provided 2 days of training per quarter in developing an understand- ◾ ing and use of Green IT.

Discussion Points What is a green strategy mix? Consider examples of organizations that you know of that ◾ would fi t within the strategy mix. What are Green IT strategies? How would you develop Green IT strategies for an organiza- ◾ tion looking 3–5 years ahead in time? Discuss the importance of consortiums in an 8+ year Green IT strategy. ◾

Green IT Strategies: Drivers, Dimensions, and Goals ◾ 73

Explain how costs and profi t margins play a role in driving an organization toward ERBS? ◾ (hint—refer to Figure 2.7 in your discussion) Compare enlightened self-interest with the sociopolitical pressure as Green IT drivers. ◾ How do es a g reen b usiness e cosystem i nfl uence m any sm all o rganizations? H ow do es i t ◾ infl uence a large organization? What a re t he fo ur d imensions a long w hich a n o rganization c an t ransform to a g reen ◾ organization? Show how you would incorporate data centers, metrics, education and training, and green ◾ process reengineering within an ERBS. Argue for the need for iterations in following the steps for ERBS. ◾

Action Points Identify the most important ERBS driver that will impact your organization in the short ◾ term (within a n ye ar, e. g., re gulatory a nd l egal—identify t he sp ecifi c re gulation t hat yo u may be required to comply with). List that driver specifi cally against the current business goals of your organization (e.g., cus- ◾ tomer experience enhancement and regulation). List the potential confl ict between the two goals—environmental and business (e.g., need to ◾ comply with lower carbon emission requirement may lead to reduced customer experience). Identify areas of business where ERBS can cause substantial and measurable impact. ◾ Discuss a strategy to ameliorate the above situation (e.g., by highlighting to the customer the ◾ reduction in carbon through a slightly slower process of providing service). Update the above strategy with an approach that can do both—enhance the customer expe- ◾ rience and reduce carbon (e.g., through the use of an upgraded device, or reengineering of the process to provide service that makes it more effi cient). Measure the driver for which the approach or initiative is taken. For example, measure cus- ◾ tomer experience through customer survey or fi nd it out by customer uptake. Discuss all the above steps, but now in the context of a driver for ERBS that will aff ect your ◾ organization in the long term (3–5 years). List the potential Green KPIs in four groups corresponding to the four dimensions for your ◾ organization. Revise the list of Green KPIs after discussions with your green strategy team. ◾

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3Chapter

Environmentally Responsible Business: Policies, Practices, and Metrics

“Nature shrinks as capital grows. Ā e growth of the market cannot solve the very crisis it creates.”

Vandana Shiva (Soil Not Oil: Environmental Justice in an Age of Climate Crisis)*

Key Points An overview of what makes an environmentally responsible business is presented. ◾ Ā e translation of Green IT strategies into actionable policies is addressed. ◾ Understanding and insights from survey data are used to shape environmental policies of a ◾ business. Discusses and analyzes the goals that need to be defi ned by an organization in order to adopt ◾ green policies. Addresses the importance of renewable energy sources in practicing Green IT. ◾ Creates a n u nderstanding o f G reen m etrics a nd t he ap plicability o f t he 5 Ms (M easure, ◾ Monitor, Manage, Mitigate, and Monetize) of audit. Discusses greenhouse gas emission types and their analysis. ◾ Provides a f ramework fo r G reen I T m etrics a nd t heir p ractical re levance to a n ◾ organization.

* Dr. Vandana Shiva has been described as an eco-feminist and antiglobalization campaigner. She won the Sydney Peace Prize in 2010.

78 ◾ Green IT Strategies and Applications

Discusses company policies on usage of nonrenewable resources consumed in the company ◾ premises. Defi nes guidelines for providing recycle facilities for biodegradable materials. ◾

Introduction Ā is chapter discusses the policies, practices, and metrics that result from the development of the Green enterprise strategies. Such policies, practice, and metrics are an important and integral part of an overall Green initiative of an enterprise. Development of green policies equips an organiza- tion to h andle t he i nevitable re sulting c hallenges w hen c hanging t he w ay it c urrently o perates. While b oth t he K yoto a nd C openhagen su mmits o n c limate c hange d id n ot p roduce g lobally binding legislations, t hese su mmits h ave h ad a d irect b earing on t he g reen d rivers, d imensions, and subsequent green policy formulations of organizations. Ā e use of macro- and microeconomic levers are also brought to bear in this chapter to show their role in the organizational decision mak- ing because a s highlighted by Ghose a nd Billau (2011), t he current t hinking on climate change emphasizes the use of economic levers and the associated monetizing to alter energy consumption behavior. Ā e organization responds to this demand for behavioral change through business strat- egies that set the direction of the organization, as discussed in the previous chapter. Development and validation of strategies is a signifi cant step by an organization in its green transformational eff ort. F or a f undamental d iscussion o f t hese G reen I T s trategies s ee M urugesan ( 2007). S uch strategies, however, need to be brought down to the level where the organization can act on them, that is, monetizing. Ā e strategic discussion of Chapter 2 is translated into policies and practices on c arbon c ontrol fo r a n o rganization. De veloping, de fi ning, a nd re fi ning p olicies r elating t o carbon emissions is also an ideal way for the organization to prepare for legislation, binding stan- dards, a nd corresponding protocols t hat a re likely to re sult from upcoming global summits a nd consensuses on global carbon control.

Green business policies and corresponding practices, as discussed in this chapter are also related to a lean business because green policies align themselves with the lean business principles and prac- tices. For example, an organization can change its practices to re duce the slack in its business pro- cesses in response to a lean business initiative aimed at reducing waste. Such lean initiative would not only reduce waste due to reengineered activities but also reduce the organization’s carbon footprint. Alternatively, an organization might decide to improve its product design in response to the changes in customer preferences in terms of green products and services. Ā is redesign of product will also help to reduce the emissions as there will be operational effi ciency embedded in the product as also enhanced customer satisfaction with the use of the product. Ā us, green policies as discussed here are closely associated with the business itself and are an integral part of the business.

As sh own i n Figure 3 .1, o rganizations a ddress t heir g reen initiatives by defi ning sustainability policies and goals that align with the corporate objectives. Ā ese policies are then prioritized and applied in practice and their eff ectiveness measured against a ba se line. Ā ese metrics a re de veloped to m easure a nd report the carbon emissions resulting from va rious sources within t he organization such as computers used by individuals, data serv- ers, networks, and the business processes that use these devices.

Figure 3 .1 f urther sh ows t he sh ift i n t he va lues a nd u se o f corporate governance in the last decade. With increasing carbon

One word to describe the future of the busi- ness world is “Lean.” Therefore, the focus of corporate governance has to shift to include the lean-green nexus. The policies and practices of a lean organization will also help it become green. This lean-green status is achieved primarily through process effi ciencies. However, all fi ve principles of lean business (see www.lean.org) can be formally applied in a green initiative.

Environmentally Responsible Business ◾ 79

footprints o rganizations a re a dding “ green” a spects to t heir c orporate g overnance re sulting i n “Green G overnance.” Green governance a llows c ompanies to s et policies a nd practices to a ssess their current energy consumption as well as the environmental impact of business practices of the company. As also seen in Figure 3.1, IT governance is shifting focus toward use of IT as an enabler of green initiatives across the organization. IT initiatives in optimizing the business services and business practices as well as use of virtualizing technologies (Murugesan, 2007) that enable energy effi ciency re sult i n a w ide i mpact o n t he o rganization. Figure 3 .1 i llustrates t hese sh ifting p er- spectives t hat e xtend t he c orporate governance to g reen governance, I T governance to i ncorpo- rate t he ro le o f I T a s a g reen en abler, a nd ro utine I T m anagement to G reen I T m anagement. Green Governance includes controls, policies, and practices that are supported by Environmental Intelligence (EI) (Unhelkar and Trivedi, 2009b). EI was introduced in Chapter 1 as an intelligent use of business tools and technologies that can lead an enterprise to being a green enterprise.

Ā erefore, Green Governance combines EI with lean process optimizations for data creation and maintenance. Ā e green policies are expressed either as high-level or abstract policies that are worded by t he c orporate b oard, or a re e lectronically emb edded i n t he web s ervices protocols of an e-organization. Policies are implemented through practices adopted by the green organization (see Murugesan 2008a and Murugesan 2008b for examples of some of these practices). Practices, however, result from a combination of good policies as well as training, education, and the overall attitude of the individuals working in the organization.

Ā us, practices are the greater challenge than the formulation of green policies. Eventually, the success (or otherwise) of practices is judged based on metrics. Green metrics can measure not only the reduction in the carbon emissions per process but also the lean-ness of the business processes as a result of process optimization. Ā ese metrics and measurements are carried out in practice with the help of carbon emissions management software that uses smart metering.

In t he c ontext o f g reen p olicies a nd p ractices, i t i s wo rth m entioning a si gnifi cant modern management i nsight i nto business su stainability. A s d iscussed by Younessi (2009), de velopment of b usiness s trategies a nd c orresponding a ctionable p olicies n eed n ot b e ba sed only i n ter ms o f

Green Governance

IT as Green Enabler

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Figure 3.1 Green corporations based on green policies, practices, and metrics (shifting of IT function).

80 ◾ Green IT Strategies and Applications

profi ts but, instead, need to i ncorporate the time factor. A business whose strategies and policies are focused only on a single dimension, that of “making money” in the short term is likely to lose sight of t he bigger picture i n ter ms of long-term profi tability a nd su stainability. L ong-term profi tability and sustainability can be achieved through policies that facilitate an organization to exploit technologies together with environmental considerations. For example, technologies such as mobile (Unhelkar, 2009a), off ers immense potential to reduce people and material movements and r adically optimize t he business processes f rom a n environmental v iewpoint. Green p olicies need to b e de veloped t hrough a c ombination o f p rofi tability a nd en vironmental su stainability. Every new innovation, approach and lean business initiative is increasingly judged on sustainabil- ity and environmental responsibility.

In addition to aff ecting the way IT governance is implemented in an organization, the practice of Green IT also results in creation and implementation of green programs within the organiza- tion. Ā ese green programs can be developed around one or more areas of the overall policies, and work toward implementing them in practice. Information analysis tools, knowledge management techniques, and environmental intelligence are all utilized when green programs are launched as a result of policy implementations.

Ā e p ractice o f G reen I T w ithin t hese g reen p rograms re quires l eadership a nd re sources to implement the programs. Implementation at a technical systems level requires creation and diff u- sion of data, information, knowledge, and intelligence. Ā e wording and promotion of policies is subjective (tacit), whereas their implementation in practice is objective (explicit). Together, green policies and their practice aff ect an organization’s core culture and belief system in both tacit and explicit ways.

Green programs and projects result from the commitment of an organization to fulfi ll its policies. Figure 3 .2 sh ows t he c orrelation b etween p olicies a nd p ractice. W hile t he p olicies a re tacit, t heir i mplementation i s e xplicit. A lso depicted i n Figure 3 .2 i s t he p ositioning o f m etrics in im plementation o f t he p olicies in p ractice. E xisting a pproaches t o p olicy d evelopment a nd implementation in an organization can be used here, with some caveats. For example, the carbon

Green Policies

(Holistic)

Drafting Policies

Implementing Procedures

Executing Practices

Providing Evidence (Metrics)

Organizational Boundary

Figure 3.2 Green policies are implemented through practices, and proved through metrics.

Environmentally Responsible Business ◾ 81

factor is now brought into the policy wordings along with the cost factor. Metrics are the means to ascertaining whether a green program has actually fulfi lled a policy goal. Studying the results of the metrics would result in modifi cation, updates, or occasional cancellation and re-initiation of green programs. Attempts of converting policies into practices through the green programs may also re sult in occasional modifi cation of the policies themselves. Ā is should be anticipated and provisioned for in any good policy development schedule.

Policies and Practices in ERBS In practical terms, a policy can be a high-level document that spells out what the organization will (and will not do) when it comes to business decision making. Green policies ensure that the decision making in the organization has carbon reduction as its integral component. Ā e green policies are created with signifi cant input from the senior management of the organization and are embedded into the business strategy of the company. While the policies state, through detailed statements what is implied in the ERBS, the green practices are the implementation of the policies (see Pratt 2009 for related discussion). Together these policies and practices drive the environmentally responsible activi- ties of the organization. For example, these policies and practices help in ascertaining both internal and external decisions made by the organization. Ā erefore, these policies and practices need to be carefully drafted, validated, and embedded within the strategy of the organization. Ā e policies and practices are based on a number of sources from within and outside of the organization. For example, a Green IT strategy based on technical dimension will result in policies on server procurement and choice of data center building and acceptable risks by the data center directors.

Ā ere a re va rious t ypes of environmentally responsible business policies. Some of t hese poli- cies a nd t heir re lative i mportance a re sh own i n Figure 3 .3. F ollowing i s a d iscussion o f t hose environmentally responsible business policies which should be taken into consideration for devis- ing organizational policies. Ā e insights gleaned from the survey around the importance of these environmental policies is also discussed below.

Purchasing Green equipments/services and turning existing services into green services. ◾ Ā is policy requires t he organization to de vise standards a round procuring new e quipments or buying new services from external parties. Figure 3.3 shows that 40% people “agree” with formation of such a policy whereas 15% people “strongly agree” to incorporating such policies for green equipments/services. Such environmentally re sponsible purchasing for IT products is being incorporated into purchasing programs of many private and public sectors. For example, the EPEAT and Energy Star standards have been widely adopted for government purchases at the Federal, State, and Local government levels (Manuel and Halchin, 2010). Ā e se environmen- tal objectives form part of the objectives within government procurement programs Disposal of u sed m aterials an d e quipments. ◾ D isposal o f h azardous a nd h armful w aste pa r- ticularly out of computing equipment requires careful policy consideration. In Figure 3.3, almost e qual n umber o f p eople “agree” (34%) a s a nd “strongly a gree” (32%) to h aving a policy around disposal of waste material. Ā is policy will also ensure that the waste manage- ment is performed in accordance with the legislative requirements. Ā is policy should also accompany promotion of environmental awareness that will also encourage change in atti- tude toward waste minimization, reu se, a nd recycle. Ā e a mount of waste generated f rom any organization is directly proportional to the business activities. Ā erefore, this policy will be closely associated with the lean policy on waste reduction.

82 ◾ Green IT Strategies and Applications

Equipment recycle and u se. ◾ Ā is policy reduces t he d isposal of equipments which may still be functioning. Figure 3.3 shows that 35% people “agree” that it is good to have policies for implementing recycling of equipments whereas nearly half of them (19%) “strongly” recom- mend the formulation and implementation of such policies. Ā is survey response also indi- cates that if waste cannot be prevented then as many of the materials as possible should be recovered through recycling. Policy for adopting and implementing recycling of equipments will recover usable materials and components, postpone replacement of working equipment, and increase reuse awareness. Environmentally r esponsible bu siness pol icies. ◾ Bu siness p rocesses c an va ry f rom u tilizing l ow level resources such as paper to highly required resources such as electricity. In carrying out business processes, a lot of energy is wasted and that energy cannot be recycled at many times. Hence, policies to optimize energy consumption in business processes should be incorporated in business strategy. Ā e survey tells that about 44% people would like to have such a policy as t heir o rganizations a re v iewing t heir en ergy re sources a s a pat h to s trategic c ompetitive advantage. Twenty-one percent respondents suggested implementing such policies strictly. Use of renewable energ y sources. ◾ Di ff erent sources of renewable energy suc h a s solar p ower grids, n uclear p lants, a nd w ind f arms a re i ncreasingly c oming i nto p lay. Ā e su rvey i n Figure 3.3 shows that only 23% “agree” and 14% “strongly agree” to the creation of policies for use of renewable energy sources. Issues around the solar cells, their life, and sunlight were cited by organizations using solar energy. In the case of wind power, consistency of wind for continuous power generation was raised as an issue and for geothermal energy, the manage- ment of pollutants was cited. Further analysis of the survey data indicates that decision mak- ers a nd quality m anagers s trongly b elieve i n a lternative, or renewable energy sources, but

Policies for purchase of Green equipment and related services

Policies related to safe disposal of hazardous waste, material or equipment

Policies for adopting and implementing recycling of equipment

Policies for optimizing energy consumption in all business processes

Policies for use of renewable energy (e.g., solar, nuclear)

Policies to influence attitudes of staff towards carbon emissions

10%

5%

7%

5%

10%

11%

13%

15%

16%

15%

31%

25%

22%

14%

23%

15%

22%

20%

40%

34%

35%

44%

23%

27%

15%

32%

19%

21%

14%

18%

Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 3.3 Environmentally responsible business policies.

Environmentally Responsible Business ◾ 83

cost appears to be a big constraint in the use of alternate source of energy. As this gets writ- ten, Japan’s east coast suff ered the tragedies of a massive earthquake followed by a Tsunami that de stroyed t he c ooling s ystems of its Fukushima nuclear plant. Ā e re sulting leakages from the near meltdown is having worldwide impact in terms of use of nucelar technology for renewable energy. Ā us, it i s worth noting t hat 41% re spondents d isagreed (including strongly) to the policy for the use of renewable energy sources in business processes. Awareness and positive attitude ◾ . Awareness and positive attitude amongst the employees and users within the organization about carbon emissions can bring about substantial changes in the way the organization operates. Ā is awareness need to be inculcated within an orga- nization’s c ulture. Twenty-seven p ercent o f t he re spondents “ agree” a nd ( 18%) “ strongly agree” to h aving policies t hat raise awareness of green issues a mong people. Ā es e policies that infl uence t he staff requires training plans and budget as well as support from human resource (see discussion on Green HR in Chapter 8).

Lean Impact on Green Environmental returns can be gained by rethinking and redesigning the existing paradigm and pro- cesses. An organization can achieve the sustainability goals through eco-effi cient and eco-innovative policies. Policies for reduction, reuse, and recycling leverage the reduction of carbon footprints of an organization a nd t he survey results depicts t hat most organizations a re committed to a dopting poli- cies fo r en vironmental c ompliance. Ā e fi rst re quirement o f suc h c ommitment i s t he su pport f rom and involvement of the leadership of the organization. Ā e decision makers bring the green strategic concepts to t he green policies. Other sources for green policies and practices include data of industry specifi c c limate c hange a nd c orresponding a nalysis w ith re spect to g reenhouse g ases. A llocation o f resources in an optimized manner as undertaken in a lean business also impact Green IT initiatives.*

Application of lean principles in IT can be easily extended, understood, and applied for Green IT. F or e xample, u nderstanding t he p roduct f rom t he s tandpoint o f t he c ustomer w ill en sure that the product is easily accepted by the customer with minimal or no rework. Ā is effi ciency in product development translates into carbon reduction due to immediate acceptance of the product (or service). When process optimization occurs in a lean eff ort by business, steps that do not add direct value to t he production process are eliminated. Ā is concept is discussed in the context of Green IT in great detail in Chapter 5. However, modeling of processes, critical examination of its s teps, e limination a nd/or m erger o f s teps—all o f t hese a ctivities t hat fo rm t he ba sis o f l ean business principles, also reduce carbon emissions due to effi ciency and eff ectiveness of the develop- ment, production, or supply process of the organization.

Ā us, lean processes continuously strives to e liminate wastage and slack within the business. Such l ean i nitiatives a lso e quip em ployees w ith s ystems l evel su pport to h elp t hem i n re ducing the carbon generated through their routine work. Ā e government rules and regulations relating to c arbon emissions should a lso be made k nown within t he organization. Ā is awareness of t he regulatory requirements can encourage the employees to participate in and perfect their processes under the lean-green initiatives to enable them and their organization to comply with the emission limits set for their products and processes. External entities such as customers, business partners, and support center staff also provide a signifi cant input into what is expected of a Green IT policy from an organization. Customers, in particular, are encouraged to play an active role in a lean business initiative. Ā is same eff ort can be handy in the lean-green initiative, wherein customers

* For example, www.eia.doe.gov.

84 ◾ Green IT Strategies and Applications

are consulted for their needs, wants, preferences, and timings. Ā e proper, formal, and successful implementation of environmental policies of an organization that successfully capitalize on its “lean” eff ort can be summarized as follows:

Lean-green goal identifi cation. ◾ Ā ese goals e xtend t he business goals to i ncorporate c arbon effi ciency and reduced wastage. To identify the correct lean goals, a ll stakeholders need to be taken in confi dence by the leadership. Ā us, customers, employees, and owners need to participate in the lean-green goal identifi cation. Product diff erentiation. ◾ Ā e practice of price and product diff erentiation in business can be applied in green business; in both the short and long term (Younessi, 2011). In the long term, a sh ift f rom t he t raditional e conomic m odels o f b usiness to n ew l ean a nd g reen b usiness models is evident. From the consumer’s perspective, the perceived diff erences in value results in costumers comparing a green product with a traditional product, or comparing the same green product from one organization as against another one. Alignment w ith g reen e nterprise goa ls. ◾ Ensuring t hat t he g reen p olicies a nd p ractices a re aligned with t he lean principles being applied in t he organization. It is important to o pti- mize the lean-green practices of the organization with respect to the business strategies and goals. Such a lignment of green policies and practices will result in va lue creation that a lso occurs in a lean business. Lean-green measurements. ◾ Lean measures would provide an organization with an indication of t he e ff ort a nd c osts s aved t hrough t he o ptimization o f p rocesses. L ean-green m easure- ments p rovide ba sis fo r n ot o nly a scertaining t he re duction i n c osts b ut a lso re duction i n carbon. Furthermore, g reen m easures (such a s d iscussed l ater i n t his c hapter) a lso p rovide an understanding of potential increase in carbon due to c ost reduction eff ort. For example, extending the life of an old equipment may be a cost-eff ective decision but not necessarily a carbon- eff ective decision as the old equipment design may not be based on carbon effi ciency. Ā erefore, a ll lean-green de cisions a nd a ctions, re lating to g reen business processes must b e based on a set of measurable actions. Green metrics provide assessment of Green readiness, and goal setting. Setting arbitrary goals of becoming carbon-neutral without respect to the indus- try within which the organization operates can be potentially detrimental to the organization. For example, the goals for carbon reduction that may be achievable in a service or technology fi rm may not, in practice, provide t he same challenge t hat a m anufacturing or mining fi rm may face. Each industry sector needs to have its own benchmarks and achievable goals. Lean-green st ructures an d i nteractions. ◾ O rganizational s tructures d efi ne t he w ay i n w hich people a nd processes a re put tog ether. Ā ese s tructures i nclude t he h ierarchies w ithin t he organization, t heir i nteractions, a nd t he c orresponding s ystem support. L ean-green enter- prises must be viewed in terms of their structures, their processes, and functions. Detailed models o f a ll t he s tructure a nd i nteractions o f a l ean-green o rganization a re e ssential fo r comprehensive u nderstanding o f h ow su stainability m ight b e i ncorporated a long w ith lean in such an enterprise. For example, an organization’s HR structure that has multiple, unwanted layers of hierarchies between the workers and the managers will neither be lean, nor green. Merger of a deep, hierarchical structure that would result in a fl atter management structure will obviate the challenge and result in a lean-green value. System sup port for l ean init iatives. ◾ Multilayered s ystems u sed fo r o ptimizing o rganization processes need to focus—at each layer—on the support required to reduce carbon impact. For e xample, T rivedi a nd U nhelkar ( 2009) h ave de scribed fo ur l ayers—Business l ayer, Carbon Em ission M onitoring la yer, Se rvice la yer, a nd I T-infrastructure la yer. E ach la yer

Environmentally Responsible Business ◾ 85

defi ned in this business strategy system focuses on the mitigation a nd management of the environmental i mpacts of t he process, s ervices, a nd products of a n organization t hat a lso make the organization a lean organization. Lean-green marketing. ◾ Ma rketing e ff orts of green technologies in an organization need to align w ith i ts l ean e ff ort. Ā us, u sing g reen te chnologies sh ould b e sh own to en hance o r upgrade the level of productivity. For example, value of carbon reduction aff orded by the use of Green IT technologies can be realized in lean marketing approach. Lean-green pr ocess qu ality an d pr ocess impr ovements. ◾ E ngendering p rocess c hanges w ith respect to green initiatives have a parallel in the corresponding changes during a lean busi- ness initiative. Specifi cally the impact of decisions in production, service, and marketing to reduce wastages a nd tighten t he slack in a p rocess a lso reduces t he c arbon contents of t he process. However, in employing Green IT technologies in process optimization, care should be taken to en sure the technology integrates throughout with the business layers. Keeping the process separate from the technology will not produce the desired carbon reduction as technology, on its own, may not serve a specifi c business goal and, instead, simply produce carbon for no discernable value. Lean-green business framework. ◾ Enabling technologies such as Green IT might be identifi ed, jus- tifi ed, and implemented through the development of a lean business framework. Green technol- ogies can be used to: (1) assess and measure the extent of a concept (e.g., eff ectiveness of Green IT introduction project) within a specifi c level of an organi- zation or a particular process or project; (2) do a gap analysis based o n a c omparison b etween s tatus q uo a s de termined through an assessment and an optimal scenario, which often times can be logically defi ned; and (3) set policies and strate- gies of an organization with respect to the environmental challenges at all levels of the business framework.

Environmental Areas Covered Policies a nd t heir practices c an be viewed from t hree d iff erent a ngles—the breadth of coverage, the depth at which they operate, and the length of time they are infl uential within the organiza- tion. F igure 3 .4 sh ows t hese t hree a reas o f c onsideration i n t he de velopment o f g reen p olicies. Ā ese areas are also summarized in Table 3.1 and discussed in the following sections.

Breadth of Environmental Policies (Areas Covered) As shown in Figure 3.4, one axis shows the breadth of environmental policies that cover the various areas of an organization, including its various departments, subsidiaries, and partners. For example, the g reen policies in a n organization may a ff ect its i nventories a nd its production activities. Ā is may be a relatively “narrow” eff ect of the green policies on the organization as reduction in invento- ries itself may not immediately and necessarily aff ect the supply chain of the organization.

However, alternatively, the breadth of Green IT policies may cover not only the production of goods within the organization, but a lso its building, infrastructure, a nd operative environment. Ā is w ill be a much broader i mpact of t he g reen policies on good s a nd i nventory. Ā e broader the i mpact of t he policies, t he closer t he organization is to i mplementing a h olistic approach to Green IT.

Lean organizational policies tacitly include carbon effi ciencies in them. However, they have to be made explicit in practice by combining them with green procedure and metrics. Thus, the metrics that measure the lean-ness of an organization need to be updated to also refl ect its green-ness. These measures are context sensitive and depend on the nature and type of the organization.

86 ◾ Green IT Strategies and Applications

Ā us, w hat i s h ighlighted i s t he n eed to c onsider t he o verall o rganization a nd i ts en tire breadth in terms of Green IT policy development and implementation. Such consideration will result i n ap propriate cre ation o f g reen p rograms, c orresponding u se o f a nalyzing, m odeling, and si mulation to ols fo r t he s tudy o f en vironmental r isk m anagement a nd i mproved a ccuracy of measurements. Ā e broader is the coverage of green policies, the better are the organization’s chances at success.

However, this breadth of coverage also increases the risks associated with the green transfor- mation and, therefore, requires greater coordination amongst the four dimensions of change and additional upfront resources. Ā e policies, practices, metrics, and corresponding tools (techniques) that are relevant in considering the breadth of a green organization are shown in Table 3.1.

Extend to Which Green Activities Are Carried Out (Length).

Proven through Metrics

D ep

ar tm

en ts

a nd

A re

as o

f W

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HOLISTIC Green

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sit y o

f A cti

vit ies

,

Th eir

Pr act

ice , an

d I nfl

ue nc

e

(D ep

th)

Figure 3.4 Green IT policies impact in three ways (length, breadth, depth).

Table 3.1 Policies, Practices, and Metrics

Policies Practices Metrics Tools

Breadth Departments and activities covered; collaborative partners

Number of activities; people and partners practicing them

Green activities per departments

Leadership techniques; administration

Depth Described intensity of activities

Reach—infl uence of each activity; honesty and seriousness

Carbon amount per activity;

Smart meters; CEMS implementations.

Length Period of green policy implementation

Sustained period of practice by individuals and departments

Daily, yearly; other time units; staggered implementation periods

Duration on meters; time calculators; KPIs.

Environmentally Responsible Business ◾ 87

Depth of Environmental Policies (Intensity of Coverage) As shown in Figure 3.4, another axis represents the depth of environmental responsibilities of an organization. Ā is depth is an indicator of the intensity with which the policies are implemented and practiced by the organization. For example, if reduction in inventory is correlated with reduc- tion in wastages and therefore reduction in carbon production, then the participation, coordina- tion, a nd u se o f s ystems a nd to ols to a chieve t hat i nventory re duction w ill b e c oncentrated to provide the necessary depth of coverage.

A deep practice of policies in large organizations is usually well supported by tools for eco- management, operating on de dicated s ystems platforms re sulting i n not only support but a lso measurements and reporting of carbon performance for single and collective business processes. Ā e depth of coverage for each process includes detailed description, mapping, responsibilities, and e xecution of roles, deliverables, activities, a nd t asks w ithin t he organization. Ā e depth of coverage o f g reen p olicies a lso f acilitates aud its a nd fe edback to t he s ame p rocess i n g reater detail.

EI a nd c orresponding en vironmental k nowledge m anagement s ystems, sh aring o f en viron- mental knowledge through common platforms, and collaborative environments for decision sup- port a re a lso en abled i n de ep c overage of g reen p olicies a nd c orresponding practices. Similarly, development of environmental ontologies and their availability on environmental portals for the organization ( see Chapter 6 fo r g reater de tails) a re a lso f acilitated w hen a n o rganization g oes deeper into the Green IT coverage.

Ā e policies, practices, metrics, and corresponding tools (techniques) that are relevant in con- sidering the depth of a green organization are shown in Table 3.1.

Length of Environmental Policies (Duration of Coverage) Figure 3.4 also shows that length of time in terms of Green IT polices fo rmation a nd p ractice i s a nother v ital c onsideration. Sustainable p olicies a re t he p olicies t hat, i nterpreted si mply, enable a business to su stain itself for a long period of time. Ā e longer a b usiness s tays “ in business,” t he b etter a re its c hances of suc cess i ncluding e conomic suc cess. Ā erefore, a c orrela- tion b etween en vironmental su stainability a nd e conomics c an be e stablished t hrough t ime. Ā e re lationship b etween suc cess and time has the potential for driving green business advantage depending on the understanding and emancipation of the policy makers. Ā e policies, practices, metrics, and corresponding tools (techniques) that are relevant in considering the length of a green organization are shown in Table 3.1.

Green policy formulations require the policy makers to h ave the ability to l ook at t he future strategies t hat m ake p redictions re garding t he f uture o f t he fi rm. W hen in corporating tim e in policies, it becomes important to consider the longevity of the fi rm itself, together with the longev- ity of the Green IT initiative. A Green IT can transform the organization, but maintaining that transformed green state over a period of time is only given due importance when the “length” is considered. Ideally, such length should be the length of the organization itself, and are therefore an integral part of its sustainability drive. Implementation of policies, however, require them to be further broken down and applied with varying timings to ensure they are gently and successfully introduced with the organization.

The polices and practice can be analyzed in a three dimensional axis: breadth of cov- erage, depth of operation, length of time. Breadth indicates the number of depart- ment/people participating. Depth indicates the intensity of the “Green” activities under- taken. Length measures the time duration for which the policy was implemented. These axes translate to coverage, duration, and intensity in measuring the carbon foot- print of an organization.

88 ◾ Green IT Strategies and Applications

Figure 3.5 shows that eventually, the carbon footprint of an organization is made up of the cover- age, duration, and intensity across all its functions. Carbon footprints are directly proportionate to the work area of an organization and the type of business sector. For example, a chemical industry which is manufacturing dyes and fertilizers will emit more emissions than the education sector.

Offi ce practices such as use of computers, printers, space heating and cooling, lighting, paper, employee travel, and communication, all contribute to carbon footprints of an organization. Emission re duction c an b e a chieved t hrough e ffi cient u se o f re sources. E ffi ciency with respect to carbon footprints is measured as an “intensity.” Intensities can be useful metrics and must be interpreted to attain information. Intensities c an be good indicators of t he emission trends. For example in service oriented sectors, intensities may be defi ned as emissions per employee, or per unit of offi ce spa ce. I n t he m anufacturing i ndustry, em issions i ntensity i s i nvariably de fi ned in terms of p ollution p er u nit of e lectricity produced (e.g., C O2-e/kWh or some variation of these units), t rends c an b e i nterpreted at t he i ndustry-level b ecause l arge fi rms m ay o wn n umerous facilities using diff erent t ypes o f f uel. Ā eir h oldings m ay c hange f rom ye ar to ye ar, l eading to dramatically diff erent ratios of emissions to output.

Ā e measurement of this footprint is a c ombination of reduction in carbon due to suc cessful Green IT initiatives across length-breadth-depth or the organization. Ā is measurement, as listed in Table 3 .1, en ables t he o rganization to f ully u nderstand a nd re duce i ts en ergy c osts, s tream- lined IT processes, increase collaboration, and have a more effi cient interaction with suppliers and customers.

Ā us, a u nifi ed length-breadth-depth backdrop can result in a lean, agile business which can be measured to demonstrate its carbon reduction. Such corporate commitment to environmental awareness not only reduces emissions but also enhances brand value signifi cantly.

Specifi c IT initiatives may involve end-user working practices, energy-effi cient offi ce environ- ments, or reducing back offi ce a nd da ta ce nter e nergy consumption. Effi ciencies a re a lso bei ng derived by taking a u nifi ed view of the procurement and supply chain management process that includes m aterial c hoice, a cquisition, pa ckaging, de livery, a nd d isposal. Taking t hese p otential benefi ts into consideration, CIOs are thus in a position to play a key role in enhancing brand value and competitiveness as well as meeting compliance requirements.

• Departments • Activity Range

• Monthly/Yearly • Comparative • (with Previous Periods)

• Iterations • Repeatitions

Total

C

Coverage

Duration

Intensity

Figure 3.5 Carbon footprint of an organization is based on coverage, duration, and intensity.

Environmentally Responsible Business ◾ 89

Green Values in Practice Converting policies to practice becomes an immediate action on the part of the organization that can be seen within a short timeframe. Ā erefore, even if the strategies and policies are formulated for t he l ong-term c hange i n t he o rganization, t heir e ff ect i n p ractice c an b e s een i mmediately. Ā e approach to converting the green policies into practice is through a combination of training, usage, incentives, and possible introduction of penalty risks.

Younessi (2011) has developed a matrix of various Green values that can be considered in the development o f g reen p olicies. Ā ese a re t he u tility, e xchange, e ssential, a nd l ongevity va lues. Table 3.2 lists and expands them in the context of Green IT. Also listed in this table are the prem- ise on which that value is based, the factors that infl uence the green values, and a mention of the techniques to achieve these values in green policy development.

Ā e short-term operational strategies discussed in Chapter 2 are easy to implement in practice. For e xample, shutting down u nused c omputers or re ducing t he a mount of pap er b eing printed (e.g, discussion by Pratt, 2009). Tactical, 1-year time framed strategies have the potential to trans- late into immediate actions such as implementing effi cient power management, use of energy-effi - cient lighting, reduction in paper usage, and maintenance of optimal room temperature (further discussed in detail by Murugesan, 2007, 2008a, 2008b). Ā ese basic practices, however, only have a short-term, visible impact on the overall green transformation.

Examples of converting short-term policies into practice are as follows:

Computing pow er m anagement. ◾ U pgrades to t he o perating s ystems o f c omputers—especially desktops—can be undertaken to enable automatic shut down or “sleep” mode when not in use.

Table 3.2 Various Green Values Derived by Organizations

Type of Green Value Premise of That Value

Factors Infl uencing the Green Value

Technique to Achieving the Green Value

Green utility value

Based on the demand for green initiative

Quality; differentiation; marketing and relevance of the green initiatives

Trend analysis and forecasting of green data and information; optimization of green processes for quality

Green exchange value

Based on the green market and their structure

Elasticity; demand and supply market structure; as impact green products and services

Forecasting, estimating, and optimization of green markets

Green essential value

Based on social values of the organization and its partners

Economic and social environment that promotes (or demotes) sustainability

Forecasting, estimating and analysis of carbon data for trends in the context of green economy and society

Green longevity value

Based on sustainable time duration—future

Integration and innovation or green products, services, and systems

Forecasting, optimization, and trend data analysis from Green IT systems perspective

90 ◾ Green IT Strategies and Applications

For example, all machines that are inactive for over 30 minutes can be forced into sleep mode centrally, and the ones not in use for 2 hours or more can be centrally shutdown. Ā is subsequent reduction in power consumption occurs without reduction in performance. According to an esti- mate by the US Environmental Protection Agency (EPA), having “sleep mode” on desktops can save energy use by 60%–70%. Ā is is estimated to provide savings in electricity of up to US $2 billion, and reduce carbon dioxide emissions by the equivalent of 5 million cars (CEC 2005). Use a blank screen saver. ◾ Use of a blank screen saver without the moving images can reduce electricity consumption. Ā is is due to minimal power consumption by the monitor and also its reduced interaction with the machine’s CPU. Ā is still results in some carbon emission as compared with the sleep mode. Limited printing. ◾ Capping the number of pages printed per employee, per day, is one tactical way of reducing emissions as well as wastage. Similarly, double-sided printing, draft printing as a default option, and stringent recycling can directly impact wastage reduction. Printing paper and ink eventually end up as a waste. Furthermore, the power consumed in the print- ing process contributes to t he emissions. A n online report on t he use of printing pa ges by employees, also provided to the line managers, is helpful in implementing this practice. Alternatively, a centralized helpdesk service to print documents can also be considered. Reuse and recycling of equipment. ◾ While this is not an immediate tactical practice, still it can be applied for all ICT equipments from the very fi rst day of the organization’s commitment to Green IT. A balance between length (longevity) of the equipment and its ongoing power consumption needs to b e a chieved. R euse of e quipment—even outside t he organizational boundary—can reduce the overall emissions, and therefore should be enshrined in the poli- cies and their practice. Equipments that simply cannot be used, reused, or donated need to be disposed in an environmentally responsible manner. Environmentally conscious procurement. ◾ Any new procurement must be ba sed on its energy effi ciency. Ā is e nergy effi ciency n eeds to b e va lidated a nd b e c ompliant w ith l ocal a nd international s tandards. Ā us, so urcing o f e quipments sh ould b e ba sed o n c osts tog ether with energy effi ciency. A ll new procurements should be Energy Star compliant or EPEAT certifi ed and be approved by the Green IT program committee. Single mac hine. ◾ An em ployee i s p rovided w ith ei ther a l aptop o r a de sktop b ut n ot b oth. However, a s et o f c ommon de sktop m achines a re ava ilable u sing sh ared de sk p rinciples. While such practice would require regular monitoring to ensure they don’t result in loss of business effi ciency and eff ectiveness, they are still worth considering even though they may appear radical in the fi rst instance.

Green Practice: A Balancing Act Ā e g reen u tility, e xchange, a nd e ssential va lues d iscussed i n Table 3.2 provide a n understanding of t he need to ba lance t he green policies a nd t heir practice in a n organization. Figure 3.6 depicts t his ba lancing b etween t he e xternal a nd t he i nternal pressures o n t he de velopers o f t he g reen p olicies fo r t he o rga- nization. Ā e green values and the green costs (that is the costs associated w ith de veloping a nd i mplementing g reen p olicies)

may occasionally vie a gainst each other. Ā erefore, t here is a n eed to re fl ect t heir ba lance a s t he policies are drafted.

A green sustainable policy is defi ned as a policy that incorporates a “Green” factor and helps business to sustain over a lon- ger period of time. Utility value, exchange value, essential value, and longevity values are a few factors that need to be considered for developing such a policy.

Environmentally Responsible Business ◾ 91

Ā e internal pressure on the development of these Green IT policies and their practices comes from the need to reduce both energy consumption and costs. Ā e internal focus and concern, there- fore, can be rightfully also on the increased costs associated with green initiatives. Implementation of Green IT policies in practice may bring about, internally, substantial changes to t he underly- ing I T infrastructure of t he organization such a s its buildings, or its networks a nd d ata servers. Implementation of these changes should, therefore, be in a phased approach. Known and standard project management as well as risk management techniques can be brought in use here.

Ā e ba lancing a ct, i n practice, a lso re quires c onsideration of t he I T v ersus non-IT a ssets of the o rganization. I n de veloping t he g reen p olicies a nd e ventually p racticing g reen i n a h olistic way, the organization needs to consider Green IT from both IT and non-IT viewpoint. While the overall infl uence of IT on the greening eff ort will vary depending on the type and size of the organization, still u nderstanding t his m ix of I T a nd non-IT a ssets i s i mportant for both policy development and eventual practice.

For example, in a manufacturing organization, the plant and equipment involved in the manu- facturing activity may not be IT related; whereas a service-based organization, such as a bank or an insurance company, may have more IT equipment. Both types of equipments, together with their users, play a role in green policies and practices.

Ā e value-based approach, discussed earlier, applies to the way the changes in the organization are prioritized. For example, combination of utility, exchange, and essential values indicate which of the Green IT practices should be prioritized (e.g., operational reduction in energy consumption, or refurbishing/renewal of computing equipment, or upgrading the networks).

For example, the consolidation and virtualization of computer systems and servers will require modeling a nd u nderstanding o f b usiness p rocesses a nd en terprise a rchitecture E A. S imilarly, implementing n ew p olicies o n p rocurement, o peration, a nd d isposal o f c omputing re sources would re quire s ep-by-step c hanges to t he SC M. F actors suc h a s b randing, i mage cre ation, a nd marketing are also going to come in the mix of this balanced act.

A ba lanced policy for Green IT a lso accepts that profi t and costs remain prime necessity for business. Ā e refore, profi t-costs form part of this balancing act. However, as argued by Younessi

Government Rules and Regulations Customers Demand or Pressure

Pressure from Society Self Initiated Implementation

Increased Energy Consumption Increased Carbon Footprints Increased Operational Costs

Internal Pressure

External Pressure

Green Poli cies

My Organization

Green “Cost” Focus Green

“Value” Focus

Utility Exchange Essential

Figure 3.6 Development of green policies is a balancing act.

92 ◾ Green IT Strategies and Applications

(2011), the value-based approach is not entirely based on the profi t-cost diff erence. Freeman et al. (2007–2008) and Figge and Hahn (2005) have outlined and expanded on the various values that need to be considered by fi rms in their measurement of return on investment (ROI). Ā ey are the utility va lue, (assessed subjectively by c ustomers a nd re lated to t he c oncept of product quality), exchange value (realized in the form of revenue), and essential value (realized in the fundamental improvement of the societal condition). Ā ese va lues, a s shown in Figure 3.6, directly a ff ect the “delta” green va lue—that is from t he current green va lue of t he organization to i ts f uture green value and form an important part of balancing act.

Ā e length, depth, and breadth of Green IT policy implementation come into play in expand- ing and enhancing the “delta” for both costs and values of the fi rm in terms of its sustainability eff ort. C onsider, for e xample, t he “utility” va lue of g reen te chnology. Ā e g reen t ransformation can provide an eff ective marketing strategy which presents the organization as a market leader in green technology. Ā is creates a perceived value on the part of consumers for green products and services from the organization. Ā is practice then translates into utility value through brand rec- ognition based on an honest organization with a commitment to true green values.

Ā is p ractice e ventually a lso t ranslates i nto p roduct a nd s ervice d iff erentiation wi thin th e industry vertical and its market. Such practice will serve to buff er the shocks of moving to green production, as well as providing the fi rm with a business model that is dynamic and responsive to the needs and wants of the market for green products.

Sherringham (HRG) has also discussed and expanded on the concept of value, applying it to Green IT business beyond its normal or essential value. While the reengineering of business pro- cesses and implementation of green practices may provide essential value, it maybe the marketing opportunities o f b eing g reen t hat a re re alized fi rst. Ā e n eed fo r ba lanced c onsideration c omes from the costs, eff ort, a nd time for returns. Businesses looking for a m arket diff erentiator a nd a customer engager a re increasingly likely to c anvass t heir green credentials. Ā e ability of a b usi- ness to say “it has Green IT,” “it uses Green IT to do good,” or “it is returning value to customer’s vested i nterest t hrough t he u se o f G reen I T” a re a ll p owerful to ols t hat ap ply to de velopment, production as well as marketing. From charging a premium price to have an environmental foot- print reduced through to making donations to community and environmental organizations, the marketing, and business opportunities are almost limitless (Sherringham, 2011, HRG).

Ā us, the exchange value of a reduced emission identifi es the “worth” of the goods and services in the open markets. Practices across the length-breadth-depth of the organization (optimized and carbon-conscious design, development, storage, and distribution), leads to higher exchange value for the product or service. Eventually, this higher exchange value at a single product level translates into higher exchange value for the entire organization on the stock exchange.

Mobility and Environment Ā is discussion on development of policies and their implemen- tation in practice requires due consideration to mobile technolo- gies. Mobility h as a si gnifi cant role to play in the reduction of carbon em issions a s it h as t he p otential to off er l ocation i nde- pendence, t hat i s, re duce t he n eed to t ravel, to m ost b usiness processes. Some of t he advantages a nd challenges in t he u se of mobile technologies in business from the point of view of envi- ronmental sustainability are noted in this discussion.

The application and implementation of a Green policy is a fi ne balancing act. This requires careful understanding of the busi- ness process and enterprise architecture. ROI also needs to be considered for expanding a green policy. Factors like energy consumed, emissions, effi ciency, and reputation also should be considered. Even though renew- able energy sources offer an alternate solu- tion, it is still in its infancy to be considered as an alternate path.

Environmentally Responsible Business ◾ 93

Advantages to Environment Mobility off ers location independence and personalization (Unhelkar, 2009a), both of which are characteristics t hat c an b e u sed to o ptimize b usiness p rocesses a nd re duce c arbon. Ā ere fore, mobile technologies—including devices, networks, and contents—have a signifi cant role to play in the global carbon reduction eff ort. For example, mobility infl uences the way in which people access information on their location which in turn reduces people-movement and, therefore, infl u- ences t he en vironment. A nother e xample, i s t hat o f a sm all si zed m obile p hone (although t his device may need to use batteries) which still has a much lesser need for energy than a larger desk- top device.

Similarly, there are infl uences on processes through optimization of supply chains, customer relationships, a nd fi nancial s ystems; c hanges to t he so cial n etworking s tyles o f em ployees a nd their unions; technical changes to the architecture and design of software and enterprise systems to re fl ect t he en vironmental re sponsibility, a nd e ven t he w ay i n w hich c orporate sp onsorships change d ue to t he n eed fo r en vironmental c onsiderations. Ā ese va rious i nfl uences o f m obility on the environment have been discussed in detail in mobile enterprise transition and management (Unhelkar, 2009a).

Mobile technologies c an a lso a id t he sustainability eff ort of organizations through redesign and re cycling o f p roducts a nd o ptimization o f p rocesses. M obility, o f c ourse, h as to b e i ncor- porated strategically in the approach, and implemented through policies and practice. A s men- tioned earlier, examples of activities resulting from such green use of mobility are incorporation of m obile p rocesses t hat re duce p hysical m ovement o f m en a nd m aterials, c ollaborative u se o f mobility i n re cycling of products (including t heir de sign), a nd m aking t he physical w ired net- works within the organization redundant. Furthermore, both technical and process dimensions of green transformation encourage consolidation of mobile data centers as well as the use of vir- tualization through mobility, wherever possible. Ā e resultant environmentally responsible busi- ness has less need for physical movements a nd activities, reduced power c onsumption, lowered carbon emissions, and savings in time and space resulting from an overall wireless operation of business.

Challenges to Environment Despite i ts s eemingly o bvious a dvantage, t here a re so me i nteresting a nd u nique c hallenges o f mobility when it deals with the environment. Consider, for example, how mobility enables virtual collaborations between business and individuals. Ā ese virtual collaborations, especially between businesses, c an i ntroduce management c hallenges i n i mplementing environmentally re sponsible strategies. Ā is is so because virtual collaborations bring together multiple stakeholders with diverse v ested i nterests. W hile t hese s takeholders c ollaborate to p rovide u nifi ed services to cus- tomers, the collaborations themselves become very complex and dynamic. In such collaborations, enabled by mobile technologies, it is diffi cult to identify the precise contributors to the greenhouse gas emissions and pollutions.

Mobile u sers a lso p resent c hallenges f rom a n en vironmental v iewpoint. Ā is is s o bec ause these mobile users are diffi cult to track due to their location independence, which results in chal- lenges in tracking their environmental activities and calculating the pollutions that may have been generated.

Furthermore mobile networks, mobile computers, and corresponding mobile devices consume signifi cant a mounts of e lectrical energy. W hile t he de vices t hemselves a re sm all, t heir numbers

94 ◾ Green IT Strategies and Applications

are growing by the millions, especially in the earlier mentioned BRIC nations. Ā is increasing use places a heavy burden on the electric grid that, in turn, contributes to greenhouse gas emissions, resulting i n a n i mbalance i n t he environmental e quilibrium. Ā is i mbalance c an b e p otentially further exacerbated with large number of mobile networks and servers. Ā erefore, when incorpo- rating mobile technologies in business, it is vital to keep the environmental impact of the transi- tion in mind.

In addition to the technological balance, there is also a need for careful “engineering” of busi- ness processes of an organization from an eco-friendly viewpoint. Ā is c areful en gineering o f business processes c an b e a chieved t hrough e xcellence i n modeling t he w ay i n w hich its p eople and technologies are employed to achieve the process goals. Modeling of mobile business processes can be based on the goals to be achieved by the users with minimal impact on the environment, reduced waste, a nd increased productivity. Process modeling c an play a v ery creative role in t he environmental p erformance of t he organization by si mply helping t he u sers of t he organization to do t hings diff erently. However, experience suggests that creation of such eco-friendly business processes can succeed only when they are part of the overall environmentally responsible business strategy.

Relating Environmental Business Policies to Goals Ā e importance of policies and their practice is that they enable an organization to achieve its environmental goals. Ā erefore, policies need to refl ect the green strategies of the organization in this regards. Policies, in practice, also need to provide help and guidance in terms of prioritizing the actions to be undertaken by the organization.

Figure 3.7 shows results from the survey on how these green policies enable an organization to prioritize its environmental goals. Ā ese results are discussed further in details as follows:

Energy Consumption—Energy gets consumed as various processes are executed within the ◾ organization. Reducing energy consumption has to be incorporated within policy develop- ment a s a b usiness g oal. M any opportunities e xist, e specially at t he c orporate g overnance level, to make changes to policies and practices that do not cost much but produce carbon savings. For e xample, t he c arbon t rust (www.carbontrust.co.uk) e stimates t hat most busi- ness in the service sector can cut their energy bill by 20%–30%, while those in industry can make saving from 5% to 10% by simply changing user behavior and processes. Encouraging people to change behavior can lead to substantial carbon savings. However, the energy man- agement activities comprise analysis, improvement, control, and monitoring. User attitudes can be surveyed, analyzed, and presented to the decision makers of the organization as rec- ommendations. Energy consumption can be reduced across the entire lifecycle of an equip- ment or product starting r ight f rom de sign a nd specifi cation, production, quality c ontrol, installation, commissioning, a nd ongoing energy monitoring. Ā e survey results shown in Figure 3.7 shows t hat a bout 25% of re spondents don’t b elieve t hat t here i s a ny re duction in energy consumption in their organization. Whereas about 38% agree and 26% strongly agree to t he n eed fo r a nd e ff ort i n i ncorporating re duced en ergy c onsumption a s a g oal within their policies. Energy Effi ciency—Ā e key of business sustainability is energy effi ciency and the reduction ◾ of e missions. O rganizations d evising c arbon a batement s trategy, c onsider e nergy e ffi cient measures, monitor, assess, and manage their carbon emissions. Carbon footprints need to be

Environmentally Responsible Business ◾ 95

reduced by implementing policies that change business processes. About 10% people in the survey results shown in Figure 3.7 believe their organizations have no such policies to reduce carbon fo otprints w hereas 15% p eople s trongly a gree fo r i ncorporation o f suc h p olicy. I n contrast, 22% of respondents were not able to express their view clearly for or against exis- tence and development of such green policies and their practice. Operational Costs—Ā ese a re signifi cant in all major business activities. Ā es e operating ◾ costs i nclude s ales a nd m arketing, re search a nd de velopment, a nd a dministrative c osts associated w ith b usiness. R eduction i n t hese o perational c osts i s c losely a ssociated w ith the policies and practices of reducing carbon emissions. Ā e survey results seen in Figure 3.7 i ndicate t hat m ost o f t he re spondents (about 65%) a re i n f avor o f p olicy i mplemen- tations t hat wo uld re duce t he c osts tog ether w ith c arbon re duction, w hereas a bout 21% were disagreed to strongly disagreed that reduction of operational costs will reduce carbon emission. Organizational Reputation—Improvement in the reputation of the organization as a goal ◾ associated with carbon reduction is a valid and important goal to have. Ā e green initiative can provide a much needed brand name in a competitive market. Implementing green poli- cies off er organizations many benefi ts, including enhancement of public image, increase in marketability, re duction of operation c osts, a nd i mprovement i n employee morale. Ā us , apart from being environmentally responsible, there are opportunities for business in a green initiative. En ergy effi ciency a nd en vironmental a ctivities c an h elp d iff erentiate products

0% 20% 40% 60% 80% 100%

Reduction of energy consumption in your organization

Reduction of carbon footprint in your organization

Reduction of the operational costs in your organization

Improvement of the reputation of your organization

Meet government regulations and legislation

Meet the sustainability goals of your organization

Increase revenue and profitability due to Green initiatives

9%

10%

10%

8%

4%

8%

9%

16%

20%

11%

12%

14%

12%

15%

12%

22%

14%

18%

20%

25%

27%

38%

32%

42%

32%

37%

32%

27%

26%

15%

23%

30%

25%

23%

23%

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 3.7 Green organizational goals to be achieved through policy development.

96 ◾ Green IT Strategies and Applications

and s ervices a nd en gender c ustomer l oyalty. I n Figure 3 .7, 18% re spondents em erged a s “neutral” to ward i ncorporation of t he p olicies t hat i mprove organization reputation. O n other side, about 62% respondents believe (agree to strongly agree) in formulation of such policies w hereas 2 0% c learly do n’t a gree w ith t he va lue o f suc h g reen p olicies i n b rand creation. Environmental P erformance—Improved e nvironmental pe rformance a s a n in ternational ◾ business standard and foundation for competitiveness is increasingly a m andatory require- ment for business. Ā e compliance of IT with existing and new legislations leads to a height- ened en vironmental p erformance b y b usiness i tself. F or e xample, w hen a n o rganization complies with the European “Eco design for energy Using Products” (EUP) directive, it is enabling itself to compete beyond emissions and also on costs and other performance indica- tors. Another example is of the UK government’s carbon neutrality target by 2012. Ā ere are further targets by the UK government to reduce Greenhouse gases by 26% or more by 2020 and by at least 60% by 2050. Compliance with these legislative requirements results in lower power consumption, improved business effi ciency, and better competitiveness. Emissions are reduced by implementing the lean business practices such as optimized business processes, lean working practices, and stringent outsourced services contracts. Ā e survey shows that very high percentage (62%) of respondents believe in setting goa ls that enable compliance with th e r egulatory s tandards o f th e s pecifi c c ountries o r re gions i n w hich t he b usiness operates. Interestingly, about 20% of the respondents were not sure (neutral) in terms of the relevance of legislative compliance as goals associated with carbon reduction. Green Sustainability—Such goals need to be incorporated in the overall organizational poli- ◾ cies a nd t heir practice. SS A & C ompany, a g lobal operations c onsulting fi rm, found t hat businesses were a ble to i mprove t heir p erformance b y a n av erage o f 3 0%–40% i n a reas such a s energy c onsumption, recycling, a nd waste reduction, saving t hose c ompanies ten s of millions of dollars annually by adopting Green policies in their business. About 65% of the respondents “agreed” to “strongly agreed” with the need to de velop green policies a nd practice them in achieving the sustainability goals of the organization; whereas about 20% did “not agree” that such green policies can indeed help an organization achieve its sustain- ability goals. Increased R evenues—Green i nitiatives c ould help i n i ncreasing overall re venues w hich i n ◾ turn c an help to provide good i ncentives to employees. C ompanies today a re c onsidering every resource available to adopt more Green standards in an eff ort to not only reduce their carbon fo otprint, b ut a lso to i ncrease re venue. A bout 5 0% re spondents a gree w ith suc h policy implementation, whereas a quarter of them (about 24%) did not agree with the pos- sibility that green initiatives can increase the organizational revenues.

Renewable Energy Resources Apart f rom d iscussing t he p olicies a nd practices a ssociated w ith t he organization i n its c urrent state, i t i s a lso wo rth c onsidering t he i mpact o f to tally d iff erent t ypes o f en ergy a s i s c urrently consumed within an organization. For example, if instead of oil or gas, the energy was generated from coal—will t hat make a d iff erence in t he way t he organizational policies a re developed? A s another example, should the organizational policies relating to carbon emissions refl ect t he f act that the power consumed in the organization is generated from brown coal instead of black coal (the former being more polluting than the latter)?

Environmentally Responsible Business ◾ 97

Ā ese considerations lead to a discussion on renewable energy, its sources, and its usage. While renewable energy is a carbon-effi cient way to run a business, not all renewable technologies may be appropriate in all situations or locations. Furthermore, renewable energy itself may not be cheap (as discussed in this chapter in the previous section). Ā erefore, the use of renewable energies will require t he g overnment a nd t he re gulatory b odies to p lay a v ital ro le i n en couraging its u se b y changing market levers through legislations and use of carbon off sets.

European countries, in particular, are foremost in the trials and use of green/renewable power sources. In Germany and Spain, for example, up to 40% of power is now green—Germany using a large a mount of hydroelectric power a nd Spain using wind a nd solar. Companies, such a s t he Spanish power conglomerate Iberdrola, a re leading t he way in s witching to g reen power sources (Russell, 2009; Sanford, 2009). While the consumers themselves may not be aware of the fact that the power sources a re renewable, business customers in pa rticular show sensitivity a nd concerns in pushing for greater use of green technology through a commitment to purchase only renewable green power.

Figure 3 .8 sh ows so me o f t he p opular ren ewable en ergy so urces. D iff erent t ypes o f en ergy sources such a s nuclear, t hermal, solar, water, w ind, a nd biomass c an be u sed a s core enabler of green environment. Ā is is so because, instead of focusing only on reducing the power consump- tion within the organizations, these a lternative energy sources provide an opportunity to re duce emissions based from the source itself—in generation of the energy. Ā us, these renewable energy sources are set to play an important role in the formulation of the green policies of an organiza- tion. Ā ese renewable energy sources should be incorporated in the core business strategies of the organization as an enabler of green initiatives. Using renewable energy is one way that businesses can minimize their greenhouse gases. Consumers, businesses, and organizations may use renew- able energy to reduce the environmental impacts of conventional electricity generation. Renewable energy c ertifi cates a re o ne w ay fo r o rganizations to su pport g reen en ergy. I mpact o f ren ewable sources of energies is usually felt through Government regulatory standards. Government devises regulatory s tandards w hich c ontrols a nd support t he energy providers. E nergy providers i mple- ment t hose standards a nd a s a re sult, organizations have t he opportunity to so urce f rom one or more energy providers.

End-User Organization

Solar

Bio-Mass

Nuclear

Renewable Energy Sources

Water (Waves/

Tides, Falls)

Wind

Thermal (Geo, Solar)

Energy Provider

Government/ Regulator

Figure 3.8 Renewable energy sources need to be increasingly incorporated in green policies.

98 ◾ Green IT Strategies and Applications

Mind Map for the Role of a Chief Green Offi cer (CGO) Formulation of environment policies is in itself a complex aff air. Converting them into practice is often as equally as complex. Ā is results in a green enterprise transformation program discussed in detail in Chapter 9. Ā e success of green transformation and prac- tice depends on a linchpin role that deserves discussion here. Ā e Chief Green Offi ce (CGO), also called the Chief Sustainability Offi cer (CSO), is the most senior person in the organization, working at the board level, responsible for green strategies, green

policies, a nd g reen g overnance. Ā e C GO, tog ether w ith t he c orporate b oard, i s re sponsible fo r development a nd m aintenance of g reen p olicies t hat a re i ntegral to t he overall business p olicies. Ā e CGO, in the fi rst instance, is also the person responsible for undertaking green transformation (see Chapter 9). Makower and Pike (2009) have highlighted the CEO’s needs for becoming green without going into what the CIO has to off er in terms of existing intelligence in the business. Ā e role of a CGO fi ts in between the CEO and the CIO; although, in many instances, the CIO may be asked to perform the CGO role.

Figure 3.9 shows the mind map of a CGO. Ā e drivers and the four dimensions remain upper- most in the mind of a CGO. Ā ese green drivers and dimensions push for green strategies that, in turn, translate into policies. Green IT policies are developed in consultation with various depart- ments a s a lso e xternal pa rties l ike customers a nd suppliers. Green metrics provide t he ability to justify t he ROI. Technically, t he CGO would c oordinate w ith t he CIO to e xploit t he potential off ered by Environmental Intelligence. Metrics can also be used in offi cial reporting on the carbon performance of the organization, and its legal compliance.

An u nderstanding of t his m ind m ap of a C GO c an b e helpful i n s etting a nd d irecting t he green enterprise transformation of an organization. Ā is mind map, however, needs to be created specifi cally fo r e ach o rganization a nd e lements t hat a re sp ecifi c to t he o rganization n eed to b e

Chief Green Offi cer (CGO) or the Chief Sustainability Offi cer (CSO) is the most senior person in the organization respon- sible for green strategies. He/she is respon- sible for the development and maintenance for the green policies. The green policy should have the ability to justify the Return of Investment (ROI).

Drivers

CGO

Factors

Policies

Metrics Environmental

Intelligence

• Internal • ISO14001

• Device metrics • Data Centre metrics • Life cycle metrics • E-Waste metrics

Compliance; Reporting Program

• Green • Transformation

• Data Warehouse • Collaborating Partners

• NGERS

• Economic; Social • Process; Technical

• Costs; • Enlightened Self-interest

Figure 3.9 Mind map for the role of a CGO.

Environmentally Responsible Business ◾ 99

listed in this mind map. Ā is fi gure is a dy namic fi gure, so t he importance of t he elements c an keep changing depending on the way the transformation of an organization takes place.

Environmental Practices Ā e CGO takes t he responsibilities for green enterprise transformation a s well a s ongoing prac- tice after the transformation is successfully achieved. Figure 3.10 shows the many environmental practices that can be used by a green organization. Ā e survey was used to ascertain the extent to and ease with which these environmental practices can be incorporated in a g reen organization. Following are the results and discussion on the responses:

Operational improvements to reduce carbon emission: ◾ Usual business activities and processes are carried out as part of operations of any organization. Improvements in operational prac- tices sh ould b e c onducted to m ake a g reen o rganization. E mploying t he c orrect l evel o f change to the operational program to attain environmental goals will improve service level performance without placing undue burden on the operational staff . Ā e survey shows about 50% respondents agree with this practice whereas about 24% are in disagreement. Strategic chan ges t o h ow t he bu siness ope rates t o r educe ca rbon e mission: ◾ C hanging t he w ay business operates help i n providing a n en hanced ba ckground for g reen organization. Ā e business strategy should be changed in order to change the business operations. About 45% respondents a gree to m ake s trategic c hanges to c hange b usiness o perations, w hereas 31% don’t agree and 24% have neutral view on this. Anticipate changes to governmental regulations related to carbon emission: ◾ Government stan- dards should b e c hanged i n order to i mplement c arbon em ission re gulations so t hat t hey are implemented by every organization. Fifty-four percent respondents look forward toward changes in government standards. In contrast, only 21% respondents disagree to look toward the changes in government standards. Infl uence gove rnmental r egulations r elated t o ca rbon e mission ◾ : G overnmental re gulations should be incorporated throughout the chain mentioned in Figure 3.8. Ā e infl uence of governmental regulations related to carbon emissions is thought to be an important practice by a bout 41% re spondents i n t he su rvey w hereas 25% d isagree w ith t he i nfl uence of the governmental standards toward green organization. Access new sources: ◾ One of t he important g reen practices involves accessing new sources of capital, energy, and raw material as part of procurement process. Ā is would help in provid- ing g reen s tructure fo r a n o rganization. A bout 4 4% re spondents a gree w ith t his p ractice whereas 25% disagree with it. Improve r isk m anagement: ◾ R isk m anagement i s v ery i mportant to i ncorporate a ny p olicy. Changes to r isk management structure are needed according to t he environment changes. More than half respondents (about 54%) agree with the practice to change risk structure according to environmental changes whereas 22% disagree. Elevate cor porate r eputation: ◾ A doption o f g reen s trategies w ill e levate t he c orporate i den- tity. O rganizations a round t he wo rld a re t aking i nitiatives to re duce p ollution a nd w aste generation t hrough re duce, reu se, a nd re cycle methods. A part f rom helping environment, these organizations are also gaining a g reen corporate image in the market. Fifty-four per- cent respondents agree that green practices, conservations, and reuse should be incorporated as pa rt o f b usiness s trategy. A ccording to t hese re spondents, g reen b usiness s trategies a re

10 0

◾

G re

e n

IT S

trate g

ie s an

d A

p p

licatio n

s

Figure 3.10 Incorporating environmental practices in green organization.

4% 5%

4% 5%

6% 5% 5% 5% 5%

20%

26%

17%

20% 19%

17% 16%

17%

13%

25% 24% 26%

33% 31%

23%

27%

31%

24%

37% 37%

42%

34%

37%

46%

36% 35%

45%

14%

8%

12%

9% 6%

9%

16%

11% 13%

Operational (day to day)

improvements to reduce carbon

emissions

Strategic changes to how the

business operates to reduce carbon

emissions

Anticipate changes to

governmental regulations

related to carbon emissions

Influence governmental

regulations related to carbon

emissions

Access new sources of capital

/energy/raw material

Improve your risk management with

respect to environment

Elevate corporate reputation by

adopting Green strategies

Identifying new market

opportunities through adoption

of Green strategies

Enhance human resource

management through Green

strategies

Strongly Disagree Disagree Neutral Agre e Strongly Agree

Environmentally Responsible Business ◾ 101

catalyst for innovation, new market products, and eco-services, whereas 21% disagree with its implementation. Identify n ew m arket o pportunities: ◾ A dopting g reen s trategies c an l ead to de velopment o f another new market segment in a competitive market. Businesses are capitalizing on grow- ing c onsumer de sire fo r su stainable b usiness b y “ greening” t heir p ractices to m ake t hem environmentally friendly. Businesses are viewing a new market opportunity for green prod- ucts a nd s ervices. Today, g reen b usiness i s a n e xtremely p rofi table b ranch o f t he b usiness world, a nd i t h osts a r ange o f c ompanies, f rom p restigious m ultinational c ompanies to small, locally based companies. About 46% respondents believe in adoption of this practice, whereas about half of them (about 23%) disagree with this practice. Enhance h uman r esource m anagement: ◾ G reen s trategies a nd t heir p ractice re quire en hanced human resources management. Ā is has been discussed in detail in Chapter 8. Employees and contractors following green practices and contributing toward reducing carbon emissions need to b e provided w ith formal i ncentives. Guang (2008) a rgues for a g reen l abor-management relations in which environmental protection is made integral to green labor management and associated negotiations. About 58% respondents agree with this potential practice of embed- ded environmental issues in green labor management, whereas 18% disagreed with it.

Green IT Metrics and Measurements Measurement i s a n i mplicit re quirement o f m anagement. Ā erefore, for an eff ective Green IT strategy to be implemented in practice, robust measures are required. Ā ese measures should clearly i dentify re duction t argets a nd m easures i n suc h a reas as achieving energy savings, reducing carbon emissions, and improving recycling eff orts.

Green IT initiatives can be fraught with dispersed collection of i ndividual a nd sub jective o pinions, va cillating p olicy do cu- ments, p ersonal r ecommendations, a nd v aried in terpretations of experiments—all reported diff erently a nd across a va riety of media. Ā ey need to be classifi ed properly, recorded, managed, and made available for use within the organization in many diff erent formats that suit the need of the user and the situation. Ā e need for a comprehensive Green IT metrics and measurement pro- gram could not have been higher. Metrics provide a sound basis for Green IT implementation that includes all stakeholders, employees as well as management, all coming from diff erent perspectives and concerns and from sources both inside and outside the organization. While many aspects of Green IT are generally applicable, metrics help in making them specifi c to the organizations.

Ā e m easurement re sulting f rom c arefully c onstrued m etrics p rovide e xcellent su pport to a green t ransformation p rogram. S uch m etrics p rovide i ndividual, o rganizational m easurements, and, in addition, a lso provide vital benchmarks at i ndustry levels a nd equally vital comparisons amongst industries a nd industrial verticals. Green IT metrics support t he f undamental require- ments of an organization—and that is to provide justifi cation to the business leadership to invest in green transformation.

Ā us, Green IT metrics become a major area, on their own, in the overall green movement— especially as these same metrics are also used by the organizations to demonstrate their compliance with the regulatory requirements. A Green IT framework (a specifi c example of such a framework

Mobility technologies can play a signifi - cant role in the carbon reduction process. Location-requirement independence and personalization of mobile devices can opti- mize business process and reduce carbon emission. Mobile technologies also help in virtual collaborations. In spite of all the advantages offered, it does introduce few challenges. The mobile devices though small, but with large number in operation, increases the cumulative emissions. Also with new collaborative working, it becomes diffi cult to identify the precise contributor.

102 ◾ Green IT Strategies and Applications

is discussed later in Chapter 9) as part of the green transformation process, thus becomes a tool, or a mechanism, to not only enable organizations to rapidly implement their Green IT strategies but also enables comparison, demonstration of ROI, and the all important compliance requirements. Ā ese comparisons pave the path for reporting and imminent carbon trading.

Ā e CEO of an organization is easier to convince and, in turn, is able to convince his/her board to undertake carbon initiatives, provided the business case is supported by measurable data. Ā e acute need for carbon emissions data to be calculated in detail, regularly, accurately, and then analyzed, reported, and used for optimization purposes, cannot be overstated. Such data analysis can be used to ascertain the Green IT readiness and maturity of an organization, its corresponding industry, and at a global level (Unhelkar and Philipson, 2009). Ā ese reasons propel the business to s tart m easuring c arbon d ata a nd t hen u sing it i n a c ompelling f ashion to b ring a bout g reen investment and green initiatives. Green IT metrics provide data that can be used in support of a formal business case for green transformations.

However, i n o rder to u se suc h d ata, i t i s i mportant to m easure suc h d ata o n a re gular a nd accurate ba sis, a s a lso re cord, c alculate, a nalyze, rep ort, a nd u se i t fo r o ptimization p urposes. Such g reen measurements/data a nd its a nalysis c an be u sed to a scertain t he Green I T re adiness and maturity of an organization, its corresponding industry and at a g lobal level (Unhelkar and Philipson, 2009). Philipson (2010) together with the earlier work done by Molla (2009) has out- lined attitude, policies, practices, and technologies are areas that need to be understood and used in measuring the carbon footprints of an organization. Governance and enablement of Green IT has also been discussed, based on the potential for accurately measuring emissions. Ā is need of businesses to have reliable carbon data, however, does not appear to be served well with the exist- ing c arbon metrics a nd measurements. Ā e level of m aturity of environmental m etrics to day i s perhaps akin to the maturity of measures in the early industrial revolution—wherein new metrics and measurements had to be invented rapidly and be standardized across the industry. As is true with most nascent approaches, the dearth of concrete carbon measures prevents proper compari- son, justifi cation, and optimization of an organization’s green credentials. Ā is lacuna is addressed in this discussion. Creation and validation of Green IT metrics is important in a green enterprise transformation. First, these Green IT metrics provide that robust ROI that enables the business leadership to justify its investment. Second, increasingly, the performance of an organization will not be only measured by its fi nancial books. Instead, organizations will have to report their carbon performance as much as they have to report their fi nancial performance. Ā e increasing relevance of c arbon p erformance o f a n o rganization a nd t he w ay i t g ets i ntegrated i n u nderstanding t he overall performance of a n organization implies that carbon measurement is no longer a “nice to have” feature within an organization. Customers can easily demand to see, in their invoices, not only the monetary fi gure but also an associated “Carbon” fi gure that indicates the amount of car- bon generated in the production of a particular product or service.

Following a re t he sp ecifi c w ays i n w hich G reen I T m etrics a re re levant to a n o rganization (Unhelkar, 2009b):

Helps in measuring the carbon footprint of a product or service in an organization, thereby ◾ enabling a u nit-level measurement of t he product or s ervice w hich c an t hen b e totaled to arrive at the overall carbon emission Understanding of the extent of carbon generated and, therefore, providing a benchmark for ◾ current as well as reduction in the future of the carbon contents Provide an ability to compare the carbon performance of one organization against another ◾ organization, within same or dispersed geographical regions

Environmentally Responsible Business ◾ 103

Enable marketing of products and services not only for lower costs and higher quality, but ◾ also fo r re duced c arbon g enerated i n t he de velopment a nd d istribution o f t hat pa rticular product or service Ability to c omply with the regulatory requirements through mandatory measurement and ◾ reporting of carbon generation Potential to trade carbon by measuring and storing the credits generated by optimized car- ◾ bon performance Opportunity to m ature the green processes in an organization thereby enabling increasing ◾ optimization on the green CMM scale

Carbon Metrics Coverage Figure 3.11 shows the various activities that are covered by car- bon metrics. Ā ese activities including measuring, monitoring, managing, m itigating, a nd e ventually m onetizing t he c arbon emissions a ssociated w ith t he o rganization. Ā e se fi ve “ M”s of carbon metrics determine the current and future state of a green organization as also the degree of success in terms of reaching that state. Ā ese are described as follows:

Measure: ◾ Ā is i s t he primary application of metrics—which i s to m easure t he em issions. Ā is m easurement i s a chieved t hrough a r ange o f em ission s ensors, m easurement p lat- forms, monitoring and inventory systems, and inference methods. Systems associated with

Measurement is a key for the implementa- tion of any policy. Green policy, we need clear techniques to measure energy savings, reduction in carbon emissions. These mea- surements will eventually provide bench- mark at industry levels and vital comparison statistics. Green IT framework provides the required tool and techniques.

Measure • Scoped Emissions • Effort (Cost- Benefits)

Monitor • Real time reports • Length-Breadth- Depth

Mitigate • Holistic v/s Incremental • Process Reengineering

Manage • Carbon Risks • Implement Governance • Continuous improvement

Monetize • Carbon Trading • Carbon Stocks

Repeated (Lesser Impact)

One-Off (Maximum Impact)

Design Supply Chain Usage

(Operations) Disposal (Recycle) Carbon

Develop- ment

(Production)

Figure 3.11 Coverage of carbon metrics.

104 ◾ Green IT Strategies and Applications

the measurement are required to e stablish baselines and measure carbon storage and emis- sions changes on various scales from individual machines to large processes of the business. Improved measurement a nd monitoring te chnologies a nd c apabilities c an help to i dentify and g uide f uture opportunities for technology development. Measurements ca n only suc- ceed i f t hese m etrics a re cre ated a nd te sted fo r t heir va lidity. Cu rrently, i n t he G reen I T domain, very few metrics exist that are robust enough to be applied across the organization. Furthermore, u nits for t hese m etrics a re a lso n ot ava ilable i n a u nifi ed a nd we ll-accepted manner. Monitor: ◾ ICT’s crucial role in economic recovery is the key to u nlocking the opportunity of Green growth a nd standardized metrics a re required for t he net CO2 reductions. Once the m etrics a re de veloped, t hey a re u sed to m onitor t he p erformance o f t he o rganization from a c arbon pe rspective. Ā is m onitoring a lso i mplies c ontinuous m easurement u sing smart metering de vices a s we ll a s a bility to a scertain i mprovement. Standards to m onitor and verify carbon emissions with reference to a baseline need to be defi ned in advance. Use of a reporting dashboard (Environmental Sustainability Dashboard) assists with the task of monitoring emissions and taking appropriate actions. Software systems need to be designed to ensure that environmental data collection is considered as a normal part of the business and that regular and frequent feedback is provided to the users. Manage: ◾ Taking the results of the measurement and monitoring process and determining from that data what should be done to improve the process. Managing emissions involves commitment to reduce business impact on climate change, auditing the emissions, making the target plan. Ā e plan must be integrated in the business policies by reviewing the perfor- mance and encouraging carbon reducing policies. Mitigate: ◾ M itigation (M olina e t a l., 2 009) i s t he a ction t aken to re duce g reenhouse g as emissions. Ā is can be achieved by reducing their origin through the places from where they are sourced or by improving the ability of the organization to dissipate or sink the emissions. Mitigation s trives fo r i mprovement i n t he p rocess so a s to re sult i n p ermanent re duction in t he em issions. Ā us, a fter measuring c arbon footprints u sing intelligent d ata c ollection and modeling technology, carbon emissions are mitigated through performance tracking of reduction targets and improved energy effi ciency. Monetize: ◾ De als w ith c onverting t he i mprovement o f t he o rganization o ver i ts c arbon performance i nto m onetary va lue suc h a s t hrough i ts m arketing e ff ort or on t he s tock exchange or through carbon trading. Developing strategies for energy use, combined with the widespread misconceptions about the energy system. Human resource of an organiza- tion essentially be informed a nd educated about energy. Such education a lso helps create support fo r en ergy-related p olicies a nd s trategies. C ontinuous m onitoring o f au tomation and b ehavior c hange of t he business c an help to e stablish new s tandards a nd legal prec- edents to further mitigate the causes and eff ects of the greenhouse gas emissions from that business. Ā is will also help to develop alternatives to high carbon activities in that busi- ness. Ā e standards and the alterations in the processes must ensure conformance to envi- ronmental standards such as ISO 14001. Understanding the organization’s carbon liability and managing carbon reduction investments, renewable energy credits, and energy-effi cient processes with clarity (Unhelkar and Trivedi, 2009a) will help to decrease the intensity of carbon footprints.

Ā e variation in importance given to these measures is evident in the response to our surveys— and is depicted in Figures 3.12 and 3.13. Figure 3.12 shows the percentage importance of emissions

Environmentally Responsible Business ◾ 105

Different industry sectors that monitors emissions on regular basis

36%

53%

14%

29%

67%

17%

15%

21%

39%

0% 10% 20% 30% 40% 50% 60% 70%

Manufacturing

Construction & utilities

Retail & wholesale trade

Education, health & community services

Transport & postal

Communication & Media

Finance

Administrative & Professional services

Others

Figure 3.12 Emissions monitoring by different industry sectors.

Type , Size

, Mo tivat

ors, Budg

ets

of an Org

aniz ation

Influ ence

the

way the F

rame work

is ap plied

Sy ste

m s (

CE M

S,

ER P/

SC M

/C RM

)

Sc op

e 1 Scope 2

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M etering Devices S

of t M

ea su

re s

(S ur

ve ys

)

Scope 3

End User Devices

D at

a C

en tr

e

Li fe

c yc

le

Waste Disposal

GreenGreen EnterpriseEnterprise

Green Enterprise

Procure New Software

Modify Existing Systems

Use Emerging Tech. (SaaS, Cloud, SOA)

Automate Data Collection, Reporting

Use Smart Meters

Consider Wireless/ Mobile Technologies

Identify Soft Factors

Incorporate in Calculations (not legally required)

The Technologies for Green Measures

What is it that gets Measured

Scopes in Measurements

Figure 3.13 Framework for Green IT metrics.

106 ◾ Green IT Strategies and Applications

measurement for diff erent industry sectors which, as can be seen, is diff erent for mining, oil gas, and so o n. Further notice how, in terms of percentage importance to em issions monitoring, t he transport i ndustry g ives v ery h igh i mportance (67%) to t he m easurement o f c arbon em issions, whereas fi nancial services provide the least importance (15%) in terms of carbon measurements. Ā is relative importance placed by the industry sectors is interestingly refl ected i n t he a ctual results in terms of the emissions.

Ā e w ay i n w hich t hese G reen I T m etrics g et c ustomized a nd i mplemented i n a n o rga- nization dep end on t he original g oals of t he organization, its d rivers, a nd a lso t he c hallenges in o btaining t hese m easures d epending o n t he co ntext. Ā e c ontext-sensitive n ature o f t hese measures a nd how t his can be represented a nd managed is t he primary discussion in t his sec- tion. Furthermore, t he opportunities for deploying t hese measures a re a lso discussed here, for example, in IS design and management or green BPM or other IT-mediated design/monitoring settings.

Green IT Measurement Challenges Having d iscussed t he G reen I T m etrics a nd m easurements, i t is also important to identify and deal with the challenges orga- nizations are likely to face in implementing them in practice. Following are the specifi c challenges and issues relating to the use of Green IT metrics and measurements within organizations:

Lack of formal metrics and associated measurements related ◾ to carbon performance of an organization, particularly at the end-user and the data center level. For example, carbon emis- sion calculations cover many diff erent factors such as power, cooling, fl oor space, carbon off sets or emissions, ROI, TCO,

TCCO, and other calculations relating to an IT data center. Each of these calculations can vary for diff erent organizations and even departments within the organization. Lack of availability of real-time data and corresponding defi ned metrics to calculate carbon ◾ performance. Ā ere i s h igh c omplexity a nd d iffi culty o f i nformation g athering a s we ll a s defi ciency of reliable primary and secondary sources of data. Lack o f r obust c ost-benefi t c alculations t hat wo uld dem onstrate to t he c orporate g ov- ◾ ernance b oard a nd t he sh areholders t he R OI o n g reen i nitiatives. A ctual i nvestment cost o f i mplementation o f g reen b usiness s trategies h as m any a spects w hich a re s till undiscovered. Lack of experience and necessary expertise within the organization to p ut together a m ea- ◾ surement a nd o ptimization p rogram. M ost o rganizations c urrently l ack b oth t he m eth- odology a nd m etrics to u ndertake de fensive a nd su itable p ower c onsumption a nd c arbon footprint measurement programs. Lack o f s tandards a nd a greements a mongst a g roup o f o rganizations b elonging to a n ◾ industry group as to what should and should not be included within carbon emissions calculations (in spite of t he ISO 14001 standard, t he Scope 1, 2 , a nd 3 —as c ategories of carbon emissions—is still not standardized, and does not include electronic waste disposal calculations). Confusing rules and regulations and their inadequacies in addressing the complete and com- ◾ prehensive c arbon footprint of a n organization (as a gainst measuring only t he operational

Five “M”s of carbon metrics determine the current and the future state of the organiza- tion. Measure: this is the core “M” for the green policy. This provides the metrics for capturing the statistics. Monitor: after mea- surement, we need to monitor the system for refi ning the policy. Manage: we need to manage the measured and monitored infor- mation to improve the process. Mitigate: reduce greenhouse gases by reducing the sources or increasing sink. Monetize: con- vert the improvement into monetary values for the organization.

Environmentally Responsible Business ◾ 107

emissions). Ā ere is no agreed baseline to measure carbon emissions; government support is ins uffi cient a nd q uite a bsurd l iterature re garding en vironmentally re sponsible b usiness strategies. Lack of proper motivation, e specially at t he top-end of t he business leadership, to i nitiate ◾ and i mplement c arbon c ontrol p rograms. Top m anagement o f o rganization i s n ot aw are. Ā ere is a lack of support, awareness, and willingness. Commitment to cause is also lacking in organizations. Unknown a nd/or u nclear va lue proposition for business t hrough its g reen i nitiatives both ◾ internally and externally, and the information is not properly available anywhere in the open source libraries. Unclear u nderstanding o f h ow to i ncorporate at titude a nd v iewpoints o f pa rticipat- ◾ ing em ployees a nd m anagement i n m easuring t he g reen cre dentials o f a n o rganization. Confusing carbon calculations resulting from increased global collaborations amongst busi- nesses. For example, outsourced projects and global work can result in duplicated or missed carbon calculations spread across partners. Diff erences in calculations of carbon emissions based on electricity consumed from diff er- ◾ ent so urces (De shpande a nd U nhelkar, 2 011). F or e xample, p ower g enerated f rom fos sil- fuel fi red power stations needs to b e calculated diff erently to t he ones from gas stations or renewable energy generators. Ā is adds signifi cant complexity to the challenge of calculating emissions. In this regards, it is worth mentioning that popular models to compute power consumption of electronic equipment tend to be simplistic. Some metrics do not even allow for va riations in u sage or va riability in c onsumption depending on t he state of t he equip- ment (busy or idle). Assumptions. Monitoring the actual power consumption of large number of electronic ◾ equipments c an b e a l ogistical n ightmare. G reen p olicies i n p ractice re quire a ssumptions in terms of the number of equipments and their usage patterns. Ā ese assumptions need to be va lidated periodically. Furthermore, these assumptions need to b e carefully generalized across industries and even regions. Scientifi c sampling, statistical techniques for extrapola- tion, a nd a lso sophisticated metering a nd measurements a re pa rt of t he Green I T metrics challenge.

Framework for Green IT Metrics When i t c omes to m easuring t he c arbon em issions, e specially across medium to l arge businesses, t here is urgency to m easure and report carbon data. As argued earlier, two important things related to c arbon emissions stand out: the need to c omprehend how much of c arbon i s b eing g enerated by t he business a ctivi- ties and, even more importantly, the lack of standardized and detailed measurements necessary. Furthermore, IT systems sup- port fo r t hese c alculations i s a lso l imited. F or e xample, at t he time of this writing, an offi cial site (OSCAR) providing information on calculating carbon emis- sions provides a n excel spreadsheet—and t hat too, with a d isclaimer! Similarly, at a n individual level, we have a much lesser feel for the carbon emissions occurring through their activities than we have for our power or water usage. For example, an average home PC user is occasionally sur- prised to note that his/her computer emits anywhere between 0.4 Tonne to 1.6 Tonne of carbon in a year (depending on how it is being used).

Green IT measurement has a few specifi c challenges. Lack of issues like formal met- rics and associated measurement, robust cost-benefi ts calculations, experience and expertise, standards and agreements, and proper motivation. Also unclear value prop- osition and confusing rules aggravate the challenges.

108 ◾ Green IT Strategies and Applications

Detailed m etrics a nd m easurement p rogram fo r c arbon em issions re quires a f ramework. Figure 3 .13 sh ows suc h a n o verall f ramework fo r m easuring c arbon em issions. I n t he c enter o f this framework are the three scopes (discussed next) of carbon emissions. Ā ese emissions falling into the three scopes are measured across four areas of the organization: the end-user devices, the data c enter, t he l ifecycle, a nd t he w aste d isposal. Ā ese a reas for c arbon em issions i ndicate w hat gets measured. On the outside of the framework are the means, the “how to” of carbon emission measurement—achieved through systems, services, metering devices, and surveys. Eff ective carbon emission measurement program is best provided through the framework presented in Figure 3.13.

Figure 3 .14 de tails t he sc opes a s we ll a s t he va rious e lements ap pearing i n c arbon em ission measurements. Ā e CO2e provides t he ba sic u nit of GHG Measurement a nd t he re sultant out- put is measured in Tonnes (and kilo tonnes = kT). Ā e corresponding energy consumption from which the emissions are calculated is calculated using terajoules (TJ). Costs are usually available in the organization’s ERP systems that correspond to the energy consumption and/or the carbon emissions—summarized in Figure 3.14.

Formal approaches to m easuring Greenhouse Gases (GHG) starts with a n understanding of the si x major t ypes of GHGs—Carbon Dioxide (CO2), Methane (CH4), Nitrous O xide ( N2O), Perfl uorocarbons (PFC), Hydrofl uorocarbons (HFC), and Sulphur Hexafl uoride (SF6). GHGs are measured in Tonnes (and kilo tonnes = kT). Ā e en ergy c onsumed i n p roducing t hose G HGs is c alculated i n J oules/Terra J oules ( TJ). W hen i t c omes to c alculating t he to tal em issions fo r an organization, t hese si x greenhouse gases emitted by t he use of materials a nd equipment, a nd execution of various processes by the organization need to b e calculated and converted to C O2e (Carbon dioxide equivalent). While CO2e comprises only 0.05% of the atmosphere, it is the one that has tremendous detrimental eff ect and is, therefore, the focus of carbon metrics.

Measures

Energy (kJoules)

Carbon (kTonnes)

Cost ($$)

Scope 1

e.g. Transport

,

Scope 2

Power

Scope 3

(Devices)(Data Bases)

e.g., Outsourced

e.g., Electricity

Power

Figure 3.14 Elements and scopes of Green IT metrics.

Environmentally Responsible Business ◾ 109

Ā e CO2e c alculations, ba sed o n t he N ational G reenhouse a nd E nergy R eporting S ystem (NGERS), a re re quired to b e d ivided i nto t hree d iff erent c ategories, or sc opes. Ā ese scopes of emissions f acilitate t heir c alculations a nd rep orting. Ā ese em issions a re d istinguished u nder Scope 1, 2, and 3 emissions depending on their characteristics.

Scope 1 e missions ◾ a re t hose c aused by d irect em issions of c arbon d ioxide a nd other g reen- house g ases i nto t he at mosphere, for e xample, vehicle e xhausts, m anufacturing em issions, and so on. Ā ese are the emissions resulting from manufacturing activities, physical move- ment of people and materials, chemical emissions, and so on. Scope 2 emissions ◾ are those caused indirectly through the usage of energy that causes GHG emissions in its generation. By far the most common Scope 2 emission is the usage of elec- tricity from the power grid. Scope 3 emissions ◾ are those caused by the organization’s supply chain, that is, the embedded carbon used in the manufacture of products it buys or services it uses.

Currently, NGERS requires reporting only on Scope 1 a nd 2 em issions. Ā erefore, most carbon emissions metric become important only for these two scoped emissions.

Each area of the organization such as manufacturing, logistics, energy management, and waste management produces measurable GHG emissions. Carbon emissions data regarding the carbon foot- prints is collected and stored in database for further retrieval, reports, summary, and manipulation.

Eventually, carbon metrics have to measure and report on the TCCO (Total Carbon Cost of Ownership) measures for various groups of emissions (as shown in Figure 3.13) and eventually add them up for the organization.

Measuring the Carbon Footprint of Your Organization Figure 3 .15 sh ows t he p ractical a spect o f a rriving at t he c arbon fo otprint o f t he o rganization. Ā e measures of carbon emissions of an organization, in Figure 3.15, are divided into two major categories: the static measures and the dynamic ones. In a typical Green IT metrics and measure- ment e xercise, only t he dy namic measures g et c onsidered i n de tail. However, t his fi gure argues for the need to include both static and dynamic measures of an organization’s environmental per- formance in order to a rrive at a c omprehensive carbon footprint of the organization. Ā e overall footprint of an organization is represented by a “C” notation in Figure 3.15.

Ā e dynamic measures shown in Figure 3.15 are the measures of energy consumed during the day-to-day operation of t he organization. Ā us, t he dy namic measures c hange on a d aily ba sis, and are made up of the emissions of the organization in its production line, service processes, and also include the impact of attitude and behavior of the people working within the organization. Ā e dynamic measure is an ongoing measure that needs to be computed over a specifi c period of time (e.g., one month, one year) to ascertain the emissions of the organization. Ā e scope of emis- sions measured in the dynamic aspects is usually Scope 2 and Scope 1. Scope 2 is more prevalent and easy to measure as it is usually based on the power bills of the organization.

Ā e static measures a re a g roup of measures t hat a re a scertained ba sed on t he procurement, design, and also the disposal aspect of materials and equipments in the organization. Furthermore, these measures also include the buildings, infrastructures, and all such procurements that are one- off , usually undertaken at the start of a project within the organization and do not change during the course of the usage. For example, the carbon emissions associated with the construction of a data center form occur only once at t he start of the data center. Ā ese emissions result from the

110 ◾ Green IT Strategies and Applications

building, its m aterials, i nstallation o f a ir c onditioning, a nd so o n. Ā ese a re t he s tatic, u pfront emissions that need to be calculated and added to the overall emissions of the data center.

Eventually, t he total static c arbon em ission measures w ill be apportioned over t he l ife of a n infrastructure or equipment to arrive at the Total Carbon Cost of Ownership (TCCO).

Measuring Operational Costs in Your Organization Ā e dynamic measures referred to in the previous section are mainly the operational measures of carbon e mission i n t he or ganization. Ā is i s so b ecause t hese dy namic measures encompass t he carbon produced w hen a n e quipment (such a s a c omputer m onitor, a d ata s erver, or a n etwork router) is operational or in use. Since the way in which an equipment is used is likely to c hange on a daily basis, these operational carbon calculations vary from day to day and from equipment to equipment.

Ā e calculation of CO2e for an organization would be made up of operational carbon produced by its business units (or departments) as shown in Figure 3.16. A s this is the operational carbon calculation, it is made up of not only the equipment itself, but also time duration for which it is in use. For example, in Figure 3.16, the total departmental usage of PCs is calculated per month to add up to the yearly emission. Each departmental usage and corresponding carbon calculation is itself made up of PC usage by each individual user, per day, in the department or business unit. Ā us, operational carbon emission calculation will be a combination of the equipments in use and the various time durations for that use.

Green Balanced Scorecard Green I T metrics a nd measurements need to c onsider yet a nother popular option of measuring organizational performance, that of the “balanced scorecard.” Applying the concept of a balanced

Static Measures: Development and Distribution (Usually One-off; Scope is Uncertain) Design & Supply-Chain impact (External Influence—usually under Scope 3, hence don’t get reported) E-Wastage & Distribution Infrastructures (Depreciation-type calculations)

Suggested Notation

Dynamic Measures: Energy consumed in Operation (ongoing) Process & Attitude impact Scope 2 and 1

C

•

•

•

•

•

Figure 3.15 Measuring CO2e.

Environmentally Responsible Business ◾ 111

scorecard ( Arveson, 1 998) to G reen I T c an h elp o rganizations i n cre ating a nd i mplement- ing balanced Green I T strategies a nd t heir policies. A g reen ba lanced sc orecard c an provide t he necessary measure a nd benchmark for t he ba lanced approach to G reen IT d iscussed earlier (see Figure 3.6). Ā e c oncept of t he ba lanced sc orecard i s va luable i n Green I T a s it builds on four perspectives: fi nancial, internal business processes, customer, and learning/growth. Ā e balance in these four perspectives is achieved based on the core vision and strategy of the organization. Ā is core business v ision would de al w ith t he c ore business itself a nd which remains at t he c enter of the balanced scorecard. Ā e four perspectives of the balanced fi nancial scorecard with respect of Green IT can be understood as follows:

Ā e fi nancial perspective in a ba lanced scorecard is used to a ssess t he business activities a nd fi nancial standing of the organization that assists in identifying the strengths and weaknesses of the o rganization. Ā erefore, i n a w ay, t his p erspective o f t he ba lanced sc orecard i s si milar to a cost benefi t a nalysis for t he g reen i nitiative. Ā e fi nancial perspective of t he ba lanced sc orecard investigates t he fi nancial p erformance re cord o f t he o rganization. Ā is in vestigation in cludes a measure of the transitioning organization’s business activities, its green objectives, and the method of measuring those green objectives. Senior management can undertake this activity at t he start of a Green IT initiative, formulate a project, discuss, and comment on the overall green approach that an organization need to take in adopting Green IT. Ā e Green I T metrics a ssociated w ith this Green IT initiative of the organization provide the feedback on the success (or otherwise) of the transition. Ā e need for additional Green IT business processes over and above the greening of existing processes is also in this section of the balanced scorecard. An understanding of the fi nancial p erspective h elps a b usiness m easure its p erformance i n t he e conomic d imension o f a green enterprise transition.

Ā e fi nancial p erspective o f t he ba lanced sc orecard i s fo llowed b y t he p rofi ling a nd u nder- standing o f t he dem ographics o f t he c ustomer. Ā is profi ling of the customer is primarily an understanding o f t he o bjectives o f t he c ustomer i n de aling w ith t he b usiness. Ā e m anner a nd extent to w hich t he c ustomer u ses t he b usiness i ndicates t he i nfl uence o f t he c ustomer o n t he business. Details of the customer, his or her green preferences, and the desire and ability to specify those preferences in consuming services or purchasing products from the organization are impor- tant measures in this aspect of the green balanced scorecard.

Individual [using a PC or

Laptop]

Departmental [Individual � Days �

PCs ]

Organizational Carbon (Total for End Users in 2011)

Year (2011)

Month_1 ( Jan)

Day 1..

Day 2...

Month_2 (Feb) Day 1..

C

Figure 3.16 Typical breakdown in measuring carbon emissions (example of end-user devices).

112 ◾ Green IT Strategies and Applications

Ā e internal business processes that comprise the operative aspect of the organization under- taking green enterprise transition are then recorded in the green balanced scorecard. Ā e se internal business processes include, for example, the inventory, time sheets, a nd payroll f unctions. Ā es e processes also include the internal aspects of the “external” customer functions. For example, an internal b usiness p rocess u sing R FID to i mprove its i nventory m anagement a nd s tock l ocation processes would result in an improved carbon performance as well. Overall, these internal process optimizations result in reduced carbon emissions of these processes.

Finally, the green balanced scorecard investigates and records the learning and growth of the organization re sulting d uring a nd f rom i ts G reen I T e ff ort. Ā is learning and experience that occurs with its employees is of immense intangible benefi t to t he organization as it improves the quality of working l ife of t he employees (this i s d iscussed i n g reater de tail i n Chapter 8). Ā us , this management technique of balanced scorecard comes in very handy during the formulation of Green IT strategies.

Table 3.3 summarizes the four aspects of a green balanced scorecard.

Table 3.3 Measures for Green Balanced Score Card

Green Balanced Scorecard Aspect

Elements of Scorecard That Affect the Green IT Metrics Measurements

Financial Measures Risks associated with environmental fi nes and penalties

Operational energy costs and corresponding emission calculations

Investments in equipments and infrastructures that (a) are currently emitting carbon and (b) are required to ameliorate the effect/ emission of carbon

Costs associated with reuse and disposal

Customer Measures Green product preferences and resultant increase/decrease in sales as a result of green-specifi c actions by the organization

Marketing and sales of green products based on the demands of the customer. Varying the way in which products are promoted, requires understanding of varying customer preferences

Pre- and postsales services associated with green products and services

Internal Business Processes

Power consumption of internal processes

Use of technologies (e.g., RFID) in reducing internal power consumption and optimizing processes

Supply chain processes (e.g., procurement of materials) that are optimized and that enable conformation to set carbon limits

Recycling, reuse, and disposal of materials and equipments

Learning and Growth Training and education of employees and other users (e.g., customers using the Internet-based services of a bank)

Ascertaining attitude through survey questionnaires. Also, ascertaining changes in that attitude due to the green initiatives

Green HR and its support (e.g., for Telework, videoconferencing)

Environmentally Responsible Business ◾ 113

Green IT Readiness and CMM Yet another function of Green IT metrics and measurements is to ascertain the preparedness of an organization with respect to the environment. Metrics open up opportunities to measure the emissions of the organization in the “as is” and the “to be” state. Green IT metrics also create a comparative index that enables an understanding of t he level at w hich a n organization is in com- parison with other organizations within the industry sector.

A si gnifi cant de velopment i n en abling suc h c ompari- son i s t he G reen I T R eadiness I ndex ( Connection R esearch, 2009). Connection Research (also known as EnvirAbility), an Australian market research and consultancy company, together with RMIT (Molla, 2009), has devised this index that provides a si mple ye t e ff ective m easure o f t he g reen p reparedness a nd maturity o f a n o rganization. B ased o n t he C MM ( Capability Maturity Model) (Humphrey, 1988), the Green IT readiness of an organization is measured across four aspects: attitude, policy, practice, and technology.

Connection Research determines the Green IT maturity lev- els through a survey quizzing the participants on the aforemen- tioned four (and metrics) aspects. Answers enabled a rating on a CMM scale from 0 to 5 . Level 0, an additional level, indicated absolutely no readiness or awareness of Green IT on part of the fi rm. Level 1 i ndicates some awareness of Green IT but ad hoc implementation. Level 2 is the level where a fi rm is able to make formal attempt at Green IT which it is able to replicate in time. Level 3 i s where the Green IT processes, roles, and deliverables are f ully defi ned. L evel 4 i s a c omprehensive Green I T metrics level, and Level 5 is where the results from the metrics are used to optimize t he g reen performance of t he organization. Ā is is the “Best practice” level of an organization.

Ā e relevant answers to questions in each of the four aspects of Green IT were aggregated and weighted by Connection Research and used to create a score (out of 100). Based on responses from over 300 organizations (Philipson, 2010), this survey provides a suffi ciently large base to develop average ratings for industry sec- tors a nd d iff erent si zes of organization. Averaging t he re sponse across each Green IT aspect of the organization has resulted in a G reen I T m aturity o r “readiness” b y i ndustry s ector a nd b y size of organization, as shown in Figure 3.18. Figure 3.18 fur- ther re veals t hat t he t ransport s ector w as b y f ar t he b est s ec- tor i n ter ms of c arbon em issions c ontrol, w hereas t he ba nking and fi nance d id n ot f are t hat we ll. U se o f t his re adiness i ndex has t he p otential to en able a n i ndividual o rganization to e as- ily determine whether it is above or below average in its Green IT m aturity i n e ach a rea. F urther a nalysis o f t he re sponses to

The Green IT readiness of an organization can be ascertained by comparing it with a benchmark. Connection Research-RMIT has developed such a benchmark, which is based on CMM. Alternative ways of mea- suring the Green IT readiness include mea- surements for fi nancial, customer, internal business process and learning and growth. For example, ROI calculations on the green initiative is a fi nancial measure, measuring eco-effi ciency of product or service related to the customer, measuring electricity con- sumed can be an internal business process, and imparting employee training on Green IT is measured to ascertain learning and growth. Organizations measured along these aforementioned areas can then be indexed and categorized as follows:

Watchers:• These are the organi- zations that prefer to wait and see what happens in terms of regula- tions, competition, and the over- all impact of the drivers. These organizations are not interested in taking the green initiative and do not have the green ROI in place. Minimalists: • These organizations only take the minimum action required to ensure they maintain the legal and other regulatory compliance. While compliant, these organizations are unlikely to be leaders in the green econ- omy. They miss out on the poten- tial advantages of developing green products and services for the future. Transformationals:• These organi- zations are keen to signifi cantly undertake transformation. They have specifi c goals, budgets, and transformation teams in place to undertake green enterprise trans- formation program. The CGO is a revered role in these organiza- tions and they are changing to achieve leadership positions in the green economy. Leaders:• These organizations lead a group of collaborative organi- zations by example, and also by using their own green standards in interacting with other partner- ing organizations. This leads to leadership in consortium-based Green IT initiatives.

114 ◾ Green IT Strategies and Applications

5 Optimised Best Practices with Continuous Improvement in Economic, Technical, Process & Social

dimensions; Green Consortiums/Leadership.

4 Managed Green enterprise transformation; Economic, Technical, Process, Social. Green Metrics, CEMS

support.

3 Defined

Formal Green Strategies & Policies; Transformation Program Defined; Initial implementation.

2 Replicable

Ad hoc Action/implementation of Carbon Reduction; Not holistic (only Department Level).

1 Initial

Awareness of Carbon Issues; Agreement; But no Action yet.

0 No Intention

Organization Records NO awareness of Carbon issues; Never thought about it.

Figure 3.17 Green Capability Maturity Model. (Based on Philipson, G., www.connection research.com, 2009, accessed 15 October 2010.)

50.7

44.7

44.2

42.6

41.3

40.7

38.1

34.3

32.7

Transport and Storage

Communications and Media

Wholesale and Retail

Utilities and Construction

Personal, Professional, and Other Services

Government Administration and Defence

Education, Health, and Community Services

Finance/Insurance/Business Services

Manufacturing and Mining

Figure 3.18 Emissions per industry sector. (Reproduced from Philipson, G., www.connection research.com, 2009, accessed 15 October 2010. With permission.)

Environmentally Responsible Business ◾ 115

individual questions in the survey can then identify specifi c policies or technologies that might be implemented to improve the organization’s Green IT maturity in that area.

Context Sensitivity and Automation in Green IT Measures In this concluding section of this chapter, the importance of automation in Green IT measures and the context-sensitive nature of these measurements are discussed. Automation assists in mea- suring and monitoring of emissions in real time. Ā is is usually accomplished by means of smart meters at the data collection end of the Carbon Emissions Management Software (CEMS). Smart meters record a nd report on t he c arbon emissions from equipments a nd operations. Ā e carbon emissions data from these meters are used by CEMS to analyze, plot trends, and provide alerts to the workers and the leaders in terms of emission and potential actions. In addition, web s ervices from regulatory bodies, SaaS (software as a s ervice), and mobile technologies also play a p ositive role in the automation of carbon measurements as they enable integration of systems and services that measure and monitor emissions. For example, mobile devices can be used to c ollect carbon data from remote and mobile locations; mobile user devices can provide instantaneous feedback to users in terms of t heir carbon ratings; a nd web s ervices pick up changes to re gulations on a n instantaneous basis. A well designed CEMS can also be subjected to audits and certifi cation. Ā is will enable cross-organizational comparisons on carbon performance, as also pave way for carbon credits and their trading. Ā e resultant environmentally responsible business “ecosystem” can have a snowball eff ect on many other business partners.

One of the challenges of current carbon measurements arise from the context-sensitive nature of these measures. Ā is context sensitivity extends from the specifi c nuances of an organization, its size, its physical location, and a lso its industrial sector (NGERS). For example, the transport sector wo uld b e fo cused on t he c ombustion o f f uel a nd its d irect c arbon g eneration, w hereas a peripheral manufacturer will be equally keen to ascertain the e-waste disposal metrics. Industries such as agriculture and mining have their own unique criteria which need to b e incorporated in the metrics.

Ā e fo llowing t ables p rovide su mmaries o f va rious c arbon m etrics. Ā ese m easures s ug- gested i n t hese t ables a lso c ater to t he c ontext-sensitive n ature o f c arbon m etrics. Table 3 .4 lists t he Green I T metrics, t heir suggested u nit, a nd t heir context f rom t he perspective of t he management. Table 3.5 does the same from the data center viewpoint, Table 3.6 from the orga- nizational and equipment lifecycle view, and Table 3.7 from the social and attitude viewpoint. Note t hat t hese t ables p rovide t he s tarting p oint fo r G reen I T m easures t hat a re l ikely to change depending on the context or the situation in which they are measured, analyzed, and reported.

116 ◾ Green IT Strategies and Applications

Table 3.4 Management and Cost-Benefi t Metrics for Green Enterprise

Metrics Unit Context

Cost of Green IT transformation for the enterprise

(Replacement costs of devices—primarily of IT domain)

(Systems upgrades, people costs—training and consulting)

$ (or equi)

Derived by close work with existing fi nancial and inventory management systems.

Costs associated with change in business (possible loss of customers

Rewriting of SLAs; this will be usually outside of IT; need to calculate NPV of the carbon initiative for next 3–5 years)

$ Green IT may reduce the quality of service for some customers. Corporate customers may enforce rewrite of SLAs.

Savings resulting from the Green IT transformation

Reduction in operational expenses (Scope 1)

Reduction in energy expenses (Scope 2)

$ These savings need to be included in the budgets for greening of the organization. Carbon and cost are both reduced.

Potential penalty costs (likely to change dramatically as the legislations mature)

$ Green IT projects need to be budgeted keeping these potential penalty costs in mind.

Green IT strategy within business strategy (can be measured in terms of the total number of elements within a strategic business approach, and the numbers within them that are related to Green IT/carbon emissions)

% Derived from the existing elements of strategic measures (a fi nancial/ time measure in percentage).

Table 3.5 Enterprise Data Center Metrics

Metrics Unit Context

Carbon emission per megabyte of data stored on the servers

CO2e Relates the carbon emissions to the total electronic storage occupying the servers

Carbon emission per MIE (million instructions executed—time, or speed of execution, can be incorporated later after this metric is refi ned)

CO2e Relates the carbon emissions to the speed with which the data center is operating

Carbon emission of the data center per user (this needs to be divided into internal users/ employees versus external customers)

CO2e Relates the carbon emissions to the total users being served by the data center

Power usage effectiveness (PUE) (existing) versus PUE of outsourced data center (potential—the outsourcing vendors will have to provide this) (PUE or DCiE)

% or ratio

Well-known measure that provides a ratio of effectiveness of power consumption for data storage purposes

Environmentally Responsible Business ◾ 117

Discussion Points What a re t he d iff erences i n fo cus b etween o rganizations a de cade a go, i n ter ms o f t heir ◾ governance focus? How does a Lean organization correlate to a Green organization? ◾ How would you go about drafting green policies from the strategies discussed in the previ- ◾ ous chapter? How would you convert those green policies in practice? Discuss the coverage, duration, and intensity of CO ◾ 2e measures.

Table 3.6 Organizational Behavior and Lifecycle Metrics

Metrics Unit Context

Green supply chain index (total green-specifi c or green-rated materials/ total materials); similarly, extended for equipments

CO2e Carbon calculation for the lifecycle of equipment/material. Carbon generated during the production of the equipment, then its transport and installation.

Green recycling index = [(number of days or years beyond the offi cial life of an equipment x carbon emission)/ (corresponding emissions from new equipment) + carbon generated in production and transportation of the new equipment)]

Ratio This measure should provide a benchmark for the extent of recycling.

Carbon generated in disposing existing equipment

CO2e This carbon is calculated toward the end of the equipment, after it has been decommissioned and being disposed off.

Landfi ll Tonne Total landfi ll generated by disposal of equipments and/or materials by the organization.

Table 3.7 Attitude and Other “Soft” Metrics

Metrics Unit Context

Level of positivity of employee attitude toward Green

Level 1 through 5 Ascertained through a survey at the start and completion of a Green IT transformation program.

Level of positivity of senior management attitude toward Green

Level 1 through 5 As above

Separate level of positivity of data center manager/director attitude toward Green

Level 1 through 5 As above

Level of positivity of customers toward Green

Level 1 through 5 As above

118 ◾ Green IT Strategies and Applications

Why formulation and application of Green IT policies are required to be in balance? What ◾ are the factors that vie against each other are required to be in balance ? Discuss t he va rious ren ewable so urces o f en ergy. H ow do t hese d iff erent en ergy so urces ◾ impact the carbon emission calculations? List and discuss any three elements in the mind map of a Chief Green Offi cer. ◾ Discuss t wo en vironmental p ractices t hat c an b e i ncorporated i n a g reen o rganization. ◾ Identify the challenges one would face in implementing these environmental practices. What are the fi ve purposes of Green IT metrics? ◾ List, with examples, the “Why, What, and How” of a Green IT metrics framework. ◾ Separate the static and dynamic Green IT measures and then show how the two can be used ◾ together (through apportionment).

Action Points Identify existing policies in your organization that deal with the environment. ◾ Identify t he l imitations a nd c hallenges o f t hose p olicies t hat yo ur o rganization f aces to ◾ implement environmentally responsible policies and strategies. Create a list of new environmental policies that would be appropriate for your organization. ◾ Ā ese policies should be based on the strategies developed in the previous chapter. Update your business strategies on the basis of green policies that can be put in practice. (Note: the actual process of policy formulation will take a fe w weeks, and will be accomplished a fter internal discussions.) List the challenges your organization is likely to face in measuring carbon emission data. ◾ Ā is list should be based on various departments, their user devices, the data center, and the supply chain processes. Extend and apply the Green IT metrics framework (Figure 3.13) to your organization. ◾ Study the how, what, and why of carbon measurements in your organization. List them for ◾ a specifi c “pilot” department. List the current “as is” Scope 1 and Scope 2 emissions of your organization. ◾ List t he de sired “to b e” s tate o f yo ur o rganization t hrough t he m anagement, te chnology, ◾ process, and social metrics. Apply t he G reen I T re adiness i ndex to a scertain t he c urrent G reen I T m aturity o f yo ur ◾ organization. I ntroduce re levant m easures to h elp i mprove t he g reen re adiness fo r t he organization.

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Unhelkar, B. and Trivedi, B. (2009a). M anaging environmental compliance: A techno-business perspectiv e. SCIT Journal, IX, August 2009.

Unhelkar, B. and Trivedi, B. (2009b). Merging w eb ser vices with 3G IP M ultimedia systems for pr ovid- ing solutions in managing envir onmental compliance b y business, P roceedings of IT A09 Confer ence, Wrexham, UK, September 8–11, 2009.

Younessi, D. (2011). S ustainable business v alue. I n B. U nhelkar, ed., Handbook of R esearch in G reen ICT: Technical, Methodological and Social Perspectives, pp. 98–115. IGI Global, Hershey, PA, USA.

Younessi, H. (2009). Strategic view on creating business value through mobile technologies. In B. Unhelkar, ed., Handbook of Research in Mobile Business: Technical, Methodological and Social Perspectives, 2nd Ed., Chapter 1. IGI Global, Hershey, PA, USA.

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4Chapter

Green Assets: Buildings, Data Centers, Networks, and Devices

When the soil disappears, the soul disappears.

Ymber Delecto

Key Points Describes t he va rious a ssets (buildings, data centers, a nd devices) of a n organization from ◾ their carbon generation perspective. Investigates t he i mportance of c arbon-effi cient buildings a nd i n pa rticular t he g reen d ata ◾ centers. Creates a relationship between the “bit, watt, and cost” that further relates data, data servers, ◾ and the corresponding data centers in which they are housed. Presents various data center strategies for carbon reduction such as server virtualization, ◾ device optimization, and hot–cold aisle arrangements. Describes n etworking a nd c ommunications a ssets o f a n o rganization, u sually i n t he d ata ◾ centers, from their carbon generation perspective. Discusses mobile technologies in the way they contribute to e-waste as also the opportunities ◾ they off er for carbon reduction. Discusses the smart metering technologies for measurements that invariably come into play ◾ when green metrics and strategies are automated.

122 ◾ Green IT Strategies and Applications

Introduction Ā is chapter focuses on the assets of an organization from the point of view of their impact on the overall c arbon c ontribution of t he organization. W hile t hese a ssets h ave b een g rouped f rom a n accounting perspective in tangible and intangible assets, it is worth grouping them into two groups from a carbon perspective: the static, infrastructural assets (e.g., the data center) and the nonstatic assets (which are mobile, such as a laptop computer) of the organization. Ā ese assets impact the carbon fo otprint o f t he o rganization r ight f rom t heir p rocurement a nd i nstallation t hrough to their d isposal. E ventually, a stute c arbon m anagement o f t hese a ssets re sults i n re duced c arbon footprints t hat c an be exchanged, traded, a nd used to i ncrease t he va lue of t he organization, its products, and services. Ā is chapter outlines the approaches to management of assets that would ameliorate the impact of carbon through environmental-consciousness such as maintenance and replacement of assests, computer virtualization, and ethically correct electronic waste disposal.

Ā e s tatic, i nfrastructural a spect of a n organization re quires s eparate, sp ecial at tention. Ā e long-term strategies of t he business i n ter ms of ownership, de sign, procurement, operation, a nd disposal of these infrastructure assets all aff ect its carbon footprint. Ā is is so because the infra- structure h as a o ne-off decision-making point at the time such as when it is procured and/or constructed. After that initial decision-making process is consummated and an asset has been pro- cured, the only way its carbon impact can be reduced is through optimized operation. However, the upfront decisions, when a static, structural asset is being procured or constructed, have a much longer a nd s trategic i mpact on t he overall c arbon fo otprint of t he organization t han w hen t hat asset is in operation. Ā erefore, t he p ractices o f p rocurement a nd c onstruction g ain i mmediate importance in the discussions on Green IT.

Similarly, special attention is required when an asset is disposed off . Ā is is so because when it gets removed f rom t he a sset register of a n organization, it may not generate t he c arbon em is- sion it used to generate during operation. Ā is may create a f alse impression t hat t he a sset is no longer t he o rganization’s re sponsibility. H owever, h as t hat e lectronic (typically c omputer) a sset been ethically disposed off ? Or is the lead or cadmium from a desktop box or laptop battery leak- ing into the water supplies of a community? How are its parts being dismantled? Ethical disposal of electronic waste can cost multiple times (some estimates range from 10 to 20 times) in a f ully developed country than in a developing nation—primarily due to availability of cheap labor and not so s tringent legislations. Ā ese costs need to b e factored in the overall green strategies of the organization. Ā is c hapter d elves d eeper into t hese organizational practices a ssociated with t he assets and infrastructure of the organization.

In t he context of t hese electronic a ssets, t he strategies a nd policies of a g reen organization discussed in the previous two chapters need to be translated into practice of the way it procures, uses, and then disposes these various assets. Ā is chapter expands on how those practices can be developed and implemented. For example, this chapter develops further the ideas relating to the green data center strategies a nd t heir implementation. In practice, t hese strategies translate to not only t he servers a nd t heir positioning within t he physical data center, but a lso correlating the impact of one extra bit of storage on the overall planning and operation of the data center. Mapping a b it to t he o verheads i t p roduces i n t he d ata c enter, a nd e ducating a nd t raining employees as it relates to t heir use of databases, is a pa rt of this practice. Subsequently, in this chapter, there is also a discussion on mobile devices and smart meters that play a crucial role in measuring and monitoring the overall carbon emissions. Ā e calculations and reporting of the organization’s carbon performance can be simplifi ed a nd automated t hrough t he u se of smart

Green Assets ◾ 123

carbon m easuring de vices. F inally, t his c hapter a lso u nderscores t he i mportance o f n etworks and related gadgets in sustainability.

Consider t he Figure 4.1 w hich i s ba sed on t he Trivedi a nd Unhelkar ( 2010) su rvey. Ā is fi gure sh ows t he re lative i mpor- tance o f va rious o rganizational p ractices p rimarily re lating to its assets as adopted across the entire organization. W hile these practices were also discussed in the previous chapter, this chap- ter l ays pa rticular em phasis o n t he g reen p ractices re lating to the static as well as mobile assets of the organization. As shown in Figure 4. 1, t hese p ractices r ange f rom re ducing t he u se o f peripherals a nd their consumables such a s paper, ink, or toners through to the practices associated with procurement and opera- tion o f h igh p ower c onsuming e quipments, t ypically t he d ata servers, housed in the organization’s data centers. Figure 4.1 is consistently r anking h igh on “agree” option (40%–45%) for most of t hese a ssets a nd h ardware related f actors c ontributing to c arbon em issions. E ncouraging product i nnovation a nd environ- mentally conscious design, assessing the lifecycle assessment of energy-consuming equipments and optimizing the overall operations of the assets are all high on “agree” to “strongly agree” ratings by most respondents. Similarly, effi cient operation of equipments through training, lifecycle a ssess- ments, and good maintenance have a combined score of more than 75% for “agree” and “strongly agree” in Figure 4.1.

The carbon footprint of an organization comprises lot more than its carbon emis- sions. Apart from the emissions during the operation of its assets, an organizational carbon footprint is also directly affected by the procurement and disposal strategies and practices relating to its assets. Fifty-three percent of the survey participants (40% agreed and 13% strongly agreed) were in favor of the need for a full lifecycle assess- ment of energy-consuming assets. Without such assessment and inventory list, it will be very challenging to start implementing Green IT.

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124 ◾ Green IT Strategies and Applications

Green Assets Ā e green assets and infrastructure comprise substantial part of that long-term approach (discussed in Chapter 2) to managing the carbon performance of the organization. Figure 4.2 depicts exam- ples of these enterprise infrastructure assets (both movable and nonmovable) on the left. On the right side, in Figure 4.2, the three major phases or activities associated with the lifecycle of these assets is depicted: the way they are established or procured, the manner in which they are operated or run, and eventually the strategies for their disposal or demolishment. Ā ese assets made up of building, data center, devices, and vehicles are also summarized in Table 4.1. Each of these three major activities relating to the infrastructure assets has the following carbon repercussions:

Establish (Pr ocure) ◾ deals w ith t he g reen cre dentials o f t he a sset i n ter ms o f its de sign a nd development. Ā is is a one-off decision-making process that decides on the carbon effi ciency of t hat a ssets de sign. F or e xample, t he o riginal de sign o f a c ar en gine o r a m obile p hone that make it carbon effi cient. Ā is is a one-off factor when an organization is procuring the asset. Similarly, in case of buildings, the one-off factor that comes into play has to do with its architecture and design, as also highlighted in Table 4.1. Operate (Run): ◾ Ā e manner of operation of the asset has a bearing on the total carbon contri- bution of the organization. Length of operation of the asset, such as operating a vehicle for 10 years or a mobile phone for 2 years will impact the overall emissions of that asset over its lifetime. Ā e user of the asset is responsible for operating (using) it in such a way as to reduce its carbon impact. Ā us, this is an ongoing, daily decision-making process. Dispose (D emolish): ◾ Ā is i s t he e ventual p hase o f a n a sset a nd i t a lso i mpacts t he o verall carbon footprint of an organization. Ā is impact is through the organization’s approach to disposing o r dem olishing t he a sset. Ā is i s a lso a o ne t ime de cision-making p rocess w ith long-term eff ect on the environment. For example, ethical disposal or desktop and laptops are a m ajor do main fo r d iscussion a nd a ction—especially w ithin m edium to l arge o rga- nizations, w herein p olicies m ight d ictate t he en d o f u se o f a n a sset r ather t han i ts a ctual

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Green Assets ◾ 125

disfunctionality. Ā erefore, policies for recycling of assets that are beyond the “use by” date for t he organization need to b e s tudied a nd re vised to en sure t hat t he a ssets a re d isposed ethically and with least impact on the environment. Such revision of policies will also open up opportunities for reuse and recycling, before the eventual disposal is eff ectuated.

Ā is is the Green Procurement-Operation-Disposal (P-O-D) lifecycle of an assets. Figure 4.2 also highlights the fact that each step of P-O-D produces carbon that aff ects t he Total C arbon Cost of Ownership (TCCO) of that asset—albeit is diff erent ways. Ā us, assets need to be con- sidered in the context of not just their current costs, but their TCCO. Ā e concept of Total Cost of O wnership ( TCO) fo r I CT e quipment w as m ade p opular b y re search c onsultancy G artner

Table 4.1 Types of Assets (Categories) and Their Impact on the Environment

Type of Assets Impact on Environment

Buildings and Facilities (e.g., offi ces, meeting rooms, training centers, social rooms, sports facilities)

Long-term impact as major environmental considerations should be during architecture and construction. Purpose of buildings, people movements, geographical locations (weather), and durability of the building impact their overall carbon contribution.

Examples of one-off decision making in design include the materials used in the construction, the extent to which the building is facing the sun, the wind directions, and the way in which these natural light and natural cooling are put together to reduce energy consumption.

Data Center (as separate, dedicated buildings to house servers)

This is a special purpose building to house data servers. In addition to the standard building considerations, the ratio between power usage by the servers versus the rest of the power is a popular environmental consideration. CRAC (Computer Room Air Conditioning) is a discipline in its own right that separates the cooling of the servers from the air conditioning required in rest of the building. Thus, building technologies together with data server technologies are put to use here to reduce carbon.

Devices (e.g., laptop, mobiles)

Design, development, procurement, operation, and usage of devices is considered here. Example of this includes low-power consuming design for laptops and mobile devices, effi cient batteries for them, carbon-conscious electronic chip design, biodegradability of materials used, and so on. Apart from the operational carbon generated by these devices, their disposal itself is an important issue.

Vehicles (e.g., cars, trucks, corporate vans, and buses)

Direct fuel emissions, pollution level of the type of fuel, design of the engines, and so on. Procurement, operations and disposal activities apply to vehicles used by the organization. These vehicles produce the Scope 1 emissions. Fleet maintenance systems need to be updated with carbon calculations. The kind of vehicle, its design, how long it will be operated, and the method of its disposal has to be considered. Vehicle emission consideration is vital when considering the entire organization. This table lists vehicles as an important reminder. However, detailed discussion on vehicle emissions is out of scope for this chapter.

126 ◾ Green IT Strategies and Applications

(as reported by Kirwin, 1987). TCO, as its name suggests, is based on the full cost of equipment over its entire life, not just the purchase price. It takes into account running costs, maintenance, upgrades, and so on. For computing equipments, it is reasonable to e xpect their TCO to e xceed the original purchase price by a factor of three or more. Ā erefore, counting the total carbon costs over the lifetime of an asset including its carbon content in production, the carbon generated dur- ing its operation over its lifetime and the carbon produced in its disposal, is vital.

Until recently many TCO computations have not taken into account the costs of the power to run the ICT equipment. Ā is is so, because power costs have been comparatively low, and because ICT departments and users are rarely billed separately for the electricity they consume and have no visibility of it (Philipson, 2010). However, when the TCCO calculations are made, it becomes important to incorporate the carbon that is generated along with the calculations of costs associ- ated with equipments. TCCO can be improved with smart metering capabilities, carbon calcula- tions throughout the life of the equipment and its disposal. Since the power consumption of data centers is rising, so is the heat generated by data center processors. TCCO has to also include the power involved in the eff ort for cooling (Philipson, 2010).

Subsequent sections of this chapter develops this Green P-O-D lifecycle further and applies it to buildings, data centers, and other electronic assets of an organization.

Building and Facility Management Ā e physical buildings and facilities belonging to t he organiza- tion fo rm t he cr ux o f i ts n onmovable a ssets. Bu ildings, w hile usually n ot a pa rt o f I T d irectly, a re s till a m ajor c ontributor to th e o rganization’s car bon f ootprint. Ā is c arbon g eneration from buildings, as described briefl y in Table 4.1 depends on the material of t he building itself, its a ir c onditioning, a nd re lated operational features such as lighting and ventilation. Ā e archi- tecture a nd de sign o f t he b uildings u sed b y b usinesses i mpact the long-term c arbon generated by t hem. W hile most c ontem- porary focus of Green IT has been on the operational aspect of these facilities, t he a rchitecture a nd design of offi ces, factories, and also related facilities (such as, a sporting complex or a com- munity room) have a s trategic role to p lay in the organization’s carbon footprint. Ā e need and demand to consider the carbon issues u pfront, during i nitial procurement a nd/or c onstruction of buildings and facilities and subsequently focusing on its opti- mized o perations i s cr ucial to t he h olistic ap proach to a g reen enterprise. Ā is forces the construction industry to handle issues such as the type of insulation used, facilities to recycle water, and the use of natural light in determining the TCCO for that building. Ā ese f actors wo uld a ff ect i ndirectly o r di rectly o n every p revious s tep t aken i nto c onsideration. For e xample, t he location o f a n o perational ro om, w here s taff i s i deally l ocated, should have natural and suffi cient sunlight during day time that would reduce electricity usage. Use of translucent materials for dividers, fo cus o n so lar c harging, a nd u se o f so lar e quipments

Building and facilities impact the long- term strategic approach to carbon reduc- tion. Consider, for example, the activities of Wal-Mart in this context, as reported on Wal-Mart (2009). The roofs of most of its warehouses are painted white to reduce the heat generated from direct sunlight. The expense in painting the roof is compensated by reduction in the cooling expenses along with reduction in corresponding carbon generation. Another example by the same organization is to install LED lights instead of normal lights in its freezer facilities to reduce both its costs and carbon emissions (Wal- Mart, 2009). In 2007, the company also reached out to its customers with an in-store education program to encourage replace- ment of incandescent light bulbs with com- pact fl orescent bulbs (Sanders, 2008).

Similarly, Google too is reported to have solar panels installed in its offi ce campus in the United States. These solar panels, installed over the rooftops of eight build- ings, together with two solar carports pro- duced 5,327 kilowatt/hours of electricity from the sun in 1 day. Google’s offi ces in Darling Park, in Sydney, Australia also boast the highest 6-star ratings in terms of their environmental credentials. These infrastruc- ture projects are a combination of one-off strategies relating to architecture and design of the buildings together with operational strategies relating to the use of the buildings and facilities.

Green Assets ◾ 127

and cells are all examples of strategic aspects of environmental asset management. When applied specifi cally to b uildings, t hese c onsiderations f all u nder t he c ategory of g reen f acilities manage- ment that has capabilities to show signifi cant savings on a long-term basis.

Ā e N ABERS ( the N ational A ustralian Bu ilt E nvironment R ating S ystem, http://www. nabers.com.au/) legislation specifi cally focuses on the carbon footprint of buildings and facilities. Table 4.2 summarizes the location, architecture and design, construction, livability, and promo- tional aspects of green building and facilities that eventually contribute to the carbon footprint of the organization.

In addition to the offi ce b uildings a nd re levant m anufacturing f acilities, w hen i t c omes to buildings that house the data centers of large organizations, the entire perspective on their carbon productions sh ifts to being I T specifi c. Ā erefore, t he d ata c enter a spect of Green I T re lates to both b uilding m anagement a nd I T m anagement. Due to i ts i mportance a nd its i mpact on t he overall green credentials of the organization, the management of data centers needs to be discussed separately—as has been done later in this chapter.

Green IT Hardware Ā e h ardware a spect of Green I T de als w ith t he a rchitecture a nd de sign of I T h ardware, t he manner in which it is procured and operated. W hile operational energy consumption is increas- ingly an important issue for computer manufacturers, what is even more interesting is the impact a good, energy optimum design can have on the overall energy consumed by a piece of hardware over

Table 4.2 Rating Building Features to Environmental Factors

Building Features Environmental Relevance Comments and Actions

Location Use of geographically specifi c natural resources such as cool weather, natural sunlight.

Locating a data center in Iceland can reduce the cooling costs, effort and corresponding carbon.

Architecture and design

To maximize the use of available natural resources for the building.

Windows facing sunlight; cross-ventilation; air and water cooling of data centers.

Construction Use of material (concrete, carpets, terracotta) to compliment the location and design to ensure that the material reduces wastage and maximizes natural resources.

Use terracotta roof instead of concrete.

Livability (occupancy)

People friendliness of the building/ facility that has health as well as aesthetic benefi ts.

Optimizes the way in which people use the facilities. A naturally lit, cheerful building will need less power.

Visibility Promoting the physical building as a place of attraction adds marketing value, as also improved asset value.

Ivy’s climbing on the walls. Terrace gardens.

128 ◾ Green IT Strategies and Applications

its entire life. A purpose-built computer chip, or an effi cient laptop battery design has potentially greater impact in reducing carbon emissions over its lifetime than its operation would have.

Figure 4.3 summarizes a range of Green IT hardware that would be of interest to an organiza- tion in the context of its Green P-O-D. Ā ese Green IT hardware elements, listed in Figure 4.3, are aff ected by t heir P-O-D in diff erent ways a s was a lso a lluded to i n Table 4.1. Following is a more detailed description of these IT hardware assets of an organization:

Data s ervers—deals w ith t he p hysical m achines a nd t he sp ecifi c b uildings i n w hich t hey ◾ are h oused. Ā ese s ervers a lso h ave b oth w ired a nd w ireless n etworks a nd c orresponding communications equipment associated with them that are directly emitting carbon. Ā e discussion on data centers is undertaken in the next section, and forms substantial part of the rest of this chapter. End-user computers—laptops, desktops, their capacities, operational effi ciencies, and their ◾ disposal (especially a s t he lifecycle of a c omputer is getting shorter by t he d ay) need to b e discussed f rom t heir P-O-D v iewpoint. W hile t he e ffi cient de sign a nd m anufacturing o f these en d-user de vices rem ains t he p erceiver o f t he h ardware m anufacturers, t he e ffi cient operation and disposal is with the user organization. Mobile de vices—the m obile de vices a nd a ssociated h ardware (e.g., e xtension l eads), t heir ◾ batteries i ncluding t he re charging m echanism a nd d isposal o f t he bat teries a nd t he p oli- cies a nd a ctions w hen t he de vices b ecome o utdated (quickly). Ā e m obile de vices P-O-D is a ff ected h eavily b y t he c orresponding at titude o f t heir u sers. F or e xample, a p erfectly working mobile phone may be discarded by a yo ung user if it goes out of fashion. Ā us , a sociocultural issue is an important contributor to the carbon behavior of these devices.

Green Hardware (IT Specific)

Data Servers

Physical Servers

Wired and Wireless

Networks/ Comms

Housing hardware

(racks)

End-User Computers

Desktops, Monitors

Laptops, Batteries

Mobiles

Phones, PD As, Pods,

Chargers

Peripherals

Printers; Copiers;

Shredders

Green P-O-D (Procure/Operate/Dispose)

Figure 4.3 Range of Green IT hardware generating carbon.

Green Assets ◾ 129

Peripherals—printers, p hotocopiers, sh redders, a nd so o n. Ā ese e lectronic g adgets a re o f ◾ immense i nterest i n G reen I T d ue to t heir l arge n umbers, t heir p otentially u nnecessary overuse, the operational waste that is generated as a result (such as paper, ribbons, and ink), and the carbon associated with the eventual disposal of these “fast moving” items.

Ā e carbon emissions from each of these Green IT hardware group mentioned above is aff ected by its procurement, operations, and disposal (Green P-O-D) phases in its lifecycle. Procurement focuses on well-designed, low-carbon emitting data servers or monitors, buying it from a green supplier a nd u sing t he most effi cient means of packaging a nd transporting t he equipment. For example, t he e nergy effi ciency i ncorporated i n t he de sign o f b lade s ervers wo uld b e a o ne-off factor infl uencing the carbon emission of that server over its lifetime. Operation is the ongoing use of hardware in an effi cient and eff ective manner. Attitude of the end-user, a ff ected usually by v isible metrics, plays a si gnifi cant part here. And fi nally, disposal of IT equipment requires due c onsiderations a s we ll. Ā e I T depa rtment si milar to t he b uilding a nd f acilities m anage- ment department can focus on recycling, reuse, and “buy-back” policies to improve its disposal function.

Ā e Green P-O-D phases are practiced based on the policies of the organization. Ā e devel- opment o f t hese G reen I T p olicies w as d iscussed e arlier, i n Chapter 3 . Figure 4. 4 sh ows t he output of the survey on these organizational policies and practices, particularly as it relates to the G reen I T h ardware. W hile c onsiderations to en ergy s aving c apabilities o f n ew h ardware was uppermost i n t he m ind of most re spondents (43% a gree, 18% s trongly a gree), it i s i nter- esting to n ote t hat t he c ounting a nd m onitoring o f I CT de vices f rom t heir c arbon em ission perspective was not happening in many organizations (almost 35% disagreed and 13% strongly

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Figure 4.4 Organizational policies and practices relating to Green IT hardware.

130 ◾ Green IT Strategies and Applications

disagree when queried on such use—as seen in the second right set of bars in Figure 4.4). Ā is response indicates an urgent need for the green conscious organization to adopt smart metering (also discussed later in this chapter) and also modify their existing ERP systems to incorporate carbon c alculations a gainst t heir I T a ssets. O ther re sponses, suc h a s t hose to q uestions re lat- ing to re duction i n en ergy c onsumption b y d ata c enters, u se o f o pen so urce so ftware, s erver virtualization, a nd replacing c onventional de vices w ith environmentally f riendly de vices were as expected. Ā at is, respondent agreed-to-strongly agreed around 60%–70% mark with these Green I T p ractices i ndicating a s trong de sire o f t hese p rofessionals to m ove to ward c arbon- effi cient computing.

Green Data Centers As m entioned e arlier, d ata c enters fo rm t he m ajor c hunk i n the overall Green IT hardware a ssets of a n organization. Ā ey house a su it of large computers and associated networks of the organization, forming the “heart” of most businesses. Ā ey hold the da ta a nd inf ormation r esiding in t he o rganization’s da ta warehouses t hat a re re siding w ithin t hese d ata s ervers, w hich in turn, are placed in the data centers. Data servers, in practical terms, can be seen as powerful computers that have the capacity to store as well as process vast amount of multiformatted data. Ā erefore, t hese d ata c enters a re, u nderstandably, t he m ajor power guzzler for an organization. Ā is growth in demand for

vast a mount of d ata s torage c oupled w ith c orresponding dem and for i ncreasingly f ast process- ing resulting in carbon emissions. As Cloud computing makes rapid strides, data, in its myriad multimedia format will have to be stored and instantly made available upon request. Apart from the business users who need to store data in perpetuity—at times justifi ably as it enables them to comply with legislations (such a s the Sarbanes–Oxley accounting data legislation)—consumers of these data also range from school students doing their projects, doctors exchanging new tech- niques in treating patients, a nd social users loading a nd watching video clips on YouTube. Ā e demand of storing and processing of data is unabating. Ā erefore, businesses that particularly deal w ith c ontents ( e.g., en tertainment, n ews) h ave to i mprove t he en ergy e ffi ciency of their data ce nters t hrough inn ovative s trategies in da ta m anagement. Ā is m eans fi nding e ffi ciency even i n co mplexity. Ā e data management solutions need to be agile so as to cater to rapidly changing d ata n eeds. D ynamic a nd a gile d ata m anagement i mplies a bility to m odify, u pdate, backup, and mirror data even as the organizational needs of the data keep changing. Innovation, together with disciplined operational management of the data center is required. Costs and car- bon em issions a re a lso c losely t ied tog ether i n c ase of d ata c enters. Green d ata c enters i nclude the architecture, design, construction, operation, and decommissioning of buildings specifi cally used for housing servers. Green data centers also include the architecture, design, development, production, procurement, installation, operation, a nd disposal of t he data server machines a nd their associated paraphernalia—such as monitors, printers, storage devices, and networking and communications systems.

Figure 4.5 su mmarizes t he spe cifi c a reas o f a d ata c enter t hat n eeds to b e c onsidered i n detail when discussing Green IT. Ā ese areas are expanded based on the earlier discussion on green buildings a nd f acilities of a n organization a nd need to b e supported by organizational

The demand for data center capacity world- wide has been on the rise. This has also lead to a steady increase in carbon emissions. For example, by year 2020, the world will be using 122 million servers up from 18 mil- lion or so in 2008–2009 (IBM, 2008; Chuba, 2008). In addition to the annual increase of approximately 9% in server numbers, one can also anticipate a change in the type of these server machines. This is so because servers will not only handle greater volume but will also require greater processing.

Green Assets ◾ 131

as well as industrial metrics relating to carbon emissions from buildings, racks of servers, and individual machines. Specifi c areas for Green IT with respect to data centers shown in Figure 4.5 are discussed as follows:

Data center design, layout, and location ◾ —Physical building in which the data center resides. Ā is c an b e one building, or multiple buildings t hat house t he m achines but a re t hem- selves spread across geographical regions. Architecture and design of the building (physi- cal shape, naturally cooling and ventilation, natural light, ease of access etc.), geographical region (e.g., locating a data center in Iceland), and the material used in construction of the building (Terracotta for roofi ng; painting the roofs white) are all valid considerations here. Ā e size and design of rooms in which servers are housed and also the location of the server rooms w ithin t he data center c an play a ro le in c arbon reduction. For example, if the room to house the server exactly fi ts the server size, cooling eff ect will be maximized. Ā ese purpose-built data center buildings are a major infl uence in an organization’s green endeavor. Cooling, a ir con ditioning, pow er so urce an d pow er con sumption ◾ . Ā is in cludes t he co oling strategies of the servers; and the air conditioning relating to the actual building. CRAC, as a specialist discipline, plays a role here. Also wherever choice permits, this also includes use of green energy sources (such as wind or solar). Furthermore, the impact of the physical loca- tion of the rooms to be cooled, that are housing the servers. Power management—lights and operational aspect ◾ . Number of people working, opening and closing of doors. Ā is would include procurement and installation of green products (such as LED light bulbs) and use of green services. Ā e source of renewable energy mentioned in the previous factor also plays a role in power management. Servers—their n umbers, t heir posit ioning an d cor responding e nergy-effi cient computing ◾ — Physical l ocation o f t he r acks, t heir p ositioning ( hot i sle/cold i sle). A rchitecture a nd t he

DATA CENTRE

Architecture & Design

—Physical Building

Cooling/ Air

conditioning

Energy Efficiency—

Lights Operations

Server Positioning

Strategy

Computing and Data strategy

(efficiency, security, backups)

Networks (switches,

installation, usage)

Actual Storage

Backups, Security

Im pa

ct Im

pa ct

Im pa

ct

Future Storage

Figure 4.5 Green data center infl uencing factors.

132 ◾ Green IT Strategies and Applications

physical rooms in which they are placed. Design of each server—water cooled, air cooled, and other effi ciencies are also to be considered. Data strategy—including security and backup ◾ . Virtualization within each server, and com- bined virtualization. Organization of a cluster of servers—private cloud. Space storage and usage strategy. Virtualization aims to pool resources together to deliver data center services by pooling resources that may be otherwise underutilized. Adopting virtualization strat- egies a nd cre ating g round-up v irtualization a rchitectures w ill en able d ata c enter en ergy effi ciencies. Virtualization software such as VMware and SWsoft, coupled with consolida- tion analysis software such as CiRBA, can enable people to maximize server production while providing the same reliability and functionality (Ryan, 2008). Ā ere are new server management tools for better control and visibility into the capacity usage (Yi and Ā om as, 2007). Networks and c ommunications equi pment ◾ , made up of land-based as well as wireless com- munications such as switchgears, routers, and modems. Ā e numbers and capacities of these equipments in the data center contribute to its carbon footprint.

Ā ese a forementioned d ata c enter f actors n eed to b e d iscussed a longside t heir fi nancial impact, t heir at titude i mpact, a nd t he Total C ost of C arbon O wnership ( TCCO). Ā e usual linear re lationship b etween c ost a nd en ergy m ay n ot b e su ffi cient to b ring a bout b ehavioral change.

For example, although the cost of energy is high, companies are not often organized so that the person paying for the IT equipment is also paying for the energy consumption of that equipment. Costs a nd c arbon need appropriate d istribution b etween business a nd I T. Dat a c enters need to lead a signifi cant consolidation trend that can also help in dealing with the impact of existing or legacy data center. Furthermore, by focusing on the TCCO, as against only initial procurement costs or only operational effi ciencies, it is possible to ascertain and lower the overall carbon emis- sions from equipments.

Ā e c orrelation b etween d ata a nd d ata s ervers i s a s i mportant a s t hat b etween s ervers a nd the data centers. Ā us, d ata c enter c arbon c osts n eed to m atch its d ata s torage a nd d ata u sage. As has been indicated on the left in Figure 4.5, the actual data storage requirements a re usually coupled with additional backup storage as well as future storage requirements. Ā us, for every new byte stored by the data center, there are additional overheads associated with backup storage, and provision fo r f uture s torage, t hat a dds to o therwise n onproductive dem and o n t he d ata c enter. In subsequent sections, va rious a spects of t hese green data center infl uencing factors a re f urther developed.

Data Center Building—Design, Layout, and Location Ā e data center buildings are specialized buildings to hold the large computing and communica- tions e quipments of t he organization. Table 4. 2 e arlier, l isted building fe atures a nd t heir c orre- sponding environmental relevance. Each of those factors aff ecting the long-term carbon generation needs to be considered in the content of the data center.

Ā e challenges in handling data centers from carbon perspectives arises from the fact that t he data center buildings t hemselves a re ba sed on a ROI over 15–20 years, whereas t he internal equipment, the data servers and other computing equipments themselves are usually

Green Assets ◾ 133

upgraded e very 3 –5 ye ars. Ā erefore, the d ata c enter building, together with the d ata c en- ter’s n on-ICT i nfrastructure, c an q uite e asily ( and m ost o ften do es) c onsume m ore p ower than the ICT equipment within it. Ā is can be because of the legacy architecture and design of t he i nfrastructure a nd f acilities t hat m ay n ot h ave kep t u p w ith t he s erver te chnologies themselves.

According to G artner, “ Traditionally, t he p ower re quired for non-IT e quipment i n t he d ata center ( such a s t hat fo r c ooling, f ans, p umps a nd U PS s ystems) rep resented o n av erage a bout 60% of total annual energy consumption. In fact, in many cases, the newest data centers of most organizations are seven or more years old whereas the oldest servers in the same data centres are less than fi ve years old.” As a result there is a mismatch between the operational effi ciency of the data center over its lifetime as compared with the cooling strategies of the data server. Ā e older data centers may thus not be equipped to power and cool the newer IT equipment (servers) in an energy-effi cient manner. Ā ere will usually be a need to upgrade the data center building in order to handle its carbon effi ciency requirements. Alternatively, the data center may have to be shifted to a b uilding t hat i s de dicated to h andling t he needs of t he s ervers. Ā ese m ismatches b etween the building and the servers it houses, requires a study of its design and layout, as well as its time in u se. W ith t he ba ckdrop o f Table 4. 2, fo llowing a re t he sp ecifi c de sign, l ayout, a nd l ocation consideration for data centers.

Physical ( geographical) location of t he building. Ā is includes t he we ather pat terns of t he ◾ geographical region (such as warm or cold), proximity of the data center building to water and air (for cooling) and the ease of access to the staff . Ā e building that houses the data center. Ā is may be a dedicated stand-alone facility, or it ◾ may be purpose-built within a larger facility, or it may be retrofi tted into existing premises. Whatever the case, there are a number of aspects of the built environment that will have an eff ect on power consumption, such as insulation. Ā e power supply. Data centers usually have dedicated power supplies, and very often more ◾ than one. Ā ei r effi ciency varies enormously. Data centers can also generate their own power, and backup power supplies are common for business continuity. Cooling a nd l ighting. M odern ICT e quipment t ypically dem ands si gnifi cant a mounts o f ◾ cooling, ei ther a ir c ooling o r w ater c ooling. Ā ere a re m any de sign a nd i mplementation issues t hat a ff ect p ower c onsumption. L ighting i s a lso a f actor t hat m aintains a mbient temperature. Server and storage virtualization. While this technology is meant to reduce power consump- ◾ tion as it reduces the overall number of devices; however, in practice the power consumption of data centers can rise as the virtualized servers may be more powerful and may use greater electricity. Facilitation of new a nd emerging te chnologies. Ā e building of the data center should be ◾ conducive to wireless communication, Cloud computing-related communication, and such best practices.

Data Center ICT Equipment—Server Strategies Ā ey are housed within the green data center and require specifi c strategies for positioning, cool- ing, and usage.

134 ◾ Green IT Strategies and Applications

Servers are powerful computers that form a signifi cant part of the IT assets of an organization. Increasingly t hese p owerful s ervers provide t he organization w ith t he a bility to a ccess, provide, analyze, a nd s tore d ata, i nformation, k nowledge, a nd i ntelligence i n m yriad d iff erent w ays. A s argued earlier, t here is e ver increasing demand for more powerful servers w ith increased storage and processing facilities. With more powerful processors and proliferating number of servers the power consumption continues to climb rapidly (Koomey, 2007).

Ā e av erage p ower c onsumption o f a r ack o f s ervers h as i ncreased fi vefold o ver t he l ast ten years (Gantz, 2 009) w hen c ooling re quirements a re t aken i nto a ccount. Storage u sage not only increases exponentially as prices drop, but that usage also tends to become increasingly ineffi cient. Furthermore, e ach i nstance of t he u se of t he s erver re quires s trategies for u ninterrupted p ower, security, a nd s torage, a nd t hat h as rep ercussions o n t he c arbon fo otprint o f t he o rganization. While de sktops a re predominantly i ndividual m achines, servers belong to t he d ata c enter m an- ager who is responsible for providing a service to the rest of the organization rather than using it directly themselves. Ā is philosophical diff erence between a de sktop and a server requires diff er- ent server-side strategies for c arbon c ontrol. Ā is i s pa rticularly so b ecause t he u sers of t he d ata application are usually removed from the physical data center. Following are a list of green server strategy considerations that need to be expanded in detail in practice:

Online, real-time list of server inventory that enables location and uses of the servers. ◾ Power c onsumption bill i n re al t ime—mapped to c arbon generation, t hat provides opera- ◾ tional feedback to the entire organization. Bit to carbon ration as part of comprehensive—data strategy—that provides metrics on not ◾ only the used “bits” but also the carbon generated by the provisioned bits. Pue, DCiE—these popular metrics providing comparative data over a length of time, as also ◾ across the industry. Mirroring ba ckup s trategies t hat a re ba lanced by t he “acceptable r isks” of t he d ata c enter ◾ director. Data capacity forecasting. Server capacities need to be estimated on a continuous basis as the ◾ business changes. Ā e correlation between business change and growth, and corresponding data center capacity, is ascertained based on statistical analysis, trend spotting, and estimat- ing the impact of technological innovativeness. Carbon-cost visibility. Lack of visibility of server costs and particularly its mapping to indi- ◾ vidual or departmental use of space. Effi cient decommissioning. Once t he purpose of a s erver i s c onsummated, t here i s a n eed ◾ for a formal yet quick way of decommissioning the server. Manual processes for decommis- sioning and lack of confi dence of the data center director/manager can lead to servers lying around and consuming power for no apparent purpose. Incorporation right redundancy. Earlier discussion on bit-watt indicates the crucial need for ◾ optimum redundancy. Enhanced s erver d istribution. N eed to d istribute, t hrough p roper a ssignment, t he u se o f ◾ the data space across and between various departments/users. Ā is would also enable server sharing between operational development and test environments. Incorporate s erver s witching. Dat a s ervers sh ould b e c apable o f b eing s witched f rom o ne ◾ type of usage to another (e.g., from test usage to production). Ā is a lso en hance c apacity sharing and peak load performance. Incorporate Cloud computing and server virtualization. ◾

Green Assets ◾ 135

Data Strategy and the Carbon Emitting Bit Closely associated with the data server strategy is the data strategy itself. Ā is data strategy encompasses the use, storage, mirroring, security, backups, clean ups, and architectures for data. It covers both external and internal approaches to data management. Data effi ciency in relational database management systems includes use of techniques such as data normalization and incremental storage. Such practices enable creation of nonredundant and fl exible data structures which tend to save data storage space when multiplied on a large scale. Using the correct data type would also aff ect the amount of data space that is being used in every “bit” of data.

Figure 4.6 shows the impact of a single bit on the correspond- ing increase in the use of storage space in the data center. Every “bit” adds to the carbon generation from the data center. Ā e end-user is usually privy to only that one bit. However, one additional “bit” of data is not just that a bit. Ā ere are many entities associ- ated with the data that add to the carbon and data challenge of the data center. Following are the ramifi cations of one extra bit in a data center on the green performance of the organization:

Additional f ree s pace p rovisioning ◾ . F or e xample, fo r e very u sed b it, t here i s a n a dditional 0.7 bit (70%) is required to be kept aside as an “unused” space that might be required imme- diately for use in future. Speed and density ◾ . Each additional bit of data comes with an implicit demand for comput- ing c apacity. Ā us, i ncrease i n s torage o f d ata i s n ot m ere i ncrease i n spa ce u se, b ut a lso increased dem and o n c omputing p ower. F urthermore, h igher c omputing sp eeds dem and greater computing power. Backup ◾ . E very b it n eeds a nother b it o r m ore o f spa ce u sed fo r ba cking u p t he d ata. Ā is backup not only occupies digital space but also communication mechanism as usually this data has to be stored elsewhere from the main data center.

The strategy relating to emails and email storage directly refl ects on the size and numbers of servers required. According to a study, nearly one-third of emails contain attachments and 95% of the information that fl ows through email systems in the typical organization is attachments (http:// www.biscomdeliveryserver.com/collateral/ wp/BDS-wp-osterman-200901.pdf). Emails themselves, and the corresponding attach- ments can not only create poor delivery performance, but also increase the storage requirements and corresponding backup requirements of the data strategy.

Bit

Speed

Density

Backup

On/Off site Mirroring

Quality

Reliability

Security

Privacy

Data Centre

Provisioning

Spare space

End User

Figure 4.6 A carbon-emitting bit—repercussions on overall carbon emissions.

136 ◾ Green IT Strategies and Applications

Mirroring ◾ . A bit may require another bit that is a live copy (and that is more than a backup). Ā is live mirror copy would be required for mission critical systems with security and safety risks. In such systems, every data bit added has signifi cantly higher overheads than the bits in noncritical systems. Quality and reliability ◾ . Every additional bit of d ata adds to t he eff ort required to ke ep t he data clean. Such data cleansing eff ort are also carbon intensive. Ā erefore, increase in quality and reliability of data can improve the carbon performance of the organization. Security ◾ . With every additional bit, there is a n eed to p rovide security of access. Ā e eff ort needed in checking and validating the security access and security levels can be carbon intensive and needs to be factored in when data size is increasing. Provisioning ◾ . Each bit requires provisioning for spare capacity, with corresponding need for spare room space, people and infrastructure.

[1 bit + m b it (additional) leads to → 1.m bit × n w atts (direct energy need) → leads to nxp watts (support energy-infrastructure) infl uences → People (attitude)]

Ā e above equation attempts to summarize the impact of 1 additional bit on the overall energy consumption by the organization. As shown in the equation, each bit requires an additional m frac- tion of additional bit as part of provisioning. For mission critical, security or defense related applica- tions, this m fraction may be greater than 1.0. In turn, every bit has corresponding need for power coupled together with demand for supporting infrastructure. Eventually, the bit continues to infl u- ence and is infl uenced by the attitude of people (resulting in the need for training and education).

In addition to the data server strategies discussed thus far, there is also a need to compliment those strategies with astute IT governances that ensure incremental improvements to the data cen- ter performance. IT governance with additional focus on data centers help to manage the overall number of servers, their lifecycle and the underlying server virtualization strategies. Ā us, the gov- ernance frameworks such as COBIT, ITIL, CMMI, and Six Sigma could be applied to o ptimize the performance of the servers. Consider, for example, the application of ITIL. Organizations gov- erned by stringent I TIL standard (typically a g overnment depa rtment) h ave a l ong lead t ime for procurement of hardware. To obviate these challenges, data center directors may provision, procure and i nstall s ervers. Ā ese s ervers would b e a ll re ady, w ith necessary c onfi guration and operating systems ready to g o in anticipation. Ā is can lead to u nnecessary and wasteful server uptime and corresponding carbon generation. Conversely, if ITIL implementation is made to adhere to carbon control requirements, then use of ITIL can reduce the occurrences of such anticipatory behavior.

Data Servers Optimization Optimization of servers deals primarily with the numbers, usage, and collaborations amongst the servers. Ā is data server optimization can be improved through better organization of the databases including t heir de sign, p rovisioning fo r re dundancy, a nd i mproved c apacity fo recasting, fo llow- ing R DBMS ( Relational Dat abase M anagement S ystems) s tandards suc h a s d ata n ormalization and usage of proper data types within database as and when required. Optimization also includes consolidation of va rious physical s ervers t hat would re duce t heir total numbers. Standardization of e quipment a lso re duces t he o verall c apacity n eeded fo r ba ckups a nd m irroring o f d atabases. Improved technologies of the servers themselves (e.g., Blade) also help in the optimization process.

It is worth noting that the cost associated with cooling of servers is much more than the initial cost of procurement a nd i nstallation of t he h ardware. Furthermore, p ower c onsumption of t he

Green Assets ◾ 137

servers t hemselves i s r apidly i ncreasing. Ā erefore, t he c osts a ssociated w ith t he c ooling o f t he servers are equally on the rise.

Ā ere is a discrepancy between the advanced technologies used in the servers, the supporting rack level infrastructure of the data center, and the lagging air conditioning and building infrastructure of the data center. Data centers are also heavily occupied and are stretched for their cooling capacity as these buildings are catering for far more sophisticated servers than they originally are designed for.

More techniques that could be considered by an organization for server optimization are described as follows:

Undertake intense and iterative capacity planning for the data center. Ā is will involve man- ◾ agement, anticipation, and optimization of storage capacities of the data center. Undertake in-depth optimization through identifi cation of unused capacity of servers and ◾ storage disks within them. Implement full storage virtualization that will enable hosting of multiple data warehouses ◾ on t he s ame s erver. Ā is will include conversion of existing physical servers to “virtual servers”—partition servers that can operate in parallel without any interference. Effi cient server operations. For example, a server that is on but idle would consume half the ◾ power it needs when being used fully. Ā erefore, instead of operating multiple servers, some of w hich m ay b e i dling, o ptimization a nd m anagement o f s ervers w ill en able r unning o f servers as closer to their maximum capacities. Effi cient management of air-conditioning and cooling equipments that require, at times, ◾ even more power to cool the servers than required to operate them. Decommissioning servers once their service level agreement has expired. ◾ Applying virtualization during architecture and design of the servers, corresponding operat- ◾ ing systems, and even applications. Enabling virtual servers easily will enable effi cient capac- ity management and reduced hardware maintenance costs. Making u se o f i nfrastructural a nd h ardware e conomies o f sc ale. Ā is can be achieved by ◾ implementing C loud c omputing a nd m aking u se of s ervices or software s ervices f rom a n already existing repository. Ā is will signifi cantly reduce the amount of resources being used in order to provide a software solution or a result. Increasing B2B relation for a more common and effi cient solution service. Outsourcing ser- ◾ vices help organizations reduce their man power and energy utilization in order to complete a particular task.

Data Servers Virtualization Of the many approaches and options discussed in terms of effi - cient data server management, virtualization can be considered as t he most i mportant one. Dat a server v irtualization, a s a ke y strategy, includes creation of many virtual servers from one phys- ical server. Virtualization has been popular as an effi cient hard- ware resource utilization; however, it also has signifi cant impact on reducing carbon emissions.

Ā rough v irtualization, d ata c enters c an c onsolidate t heir physical server infrastructure as multiple virtual servers are hosted on lesser number of servers. Ā is result in reduced power consumption, r educed n umber of s ervers, a nd a lso r educed

IBM has a U.S. $1 billion per year investment program which capitalizes on virtualization to double the energy effi ciency of its com- puter data centers and those of its corporate customers (IBM, 2007). This data center spe- cifi c program aims to improve energy moni- toring, advanced 3-D power management and thermal modeling capabilities, better design techniques, cutting-edge virtualiza- tion technologies, enhanced power man- agement systems, and new energy- effi cient liquid cooling infrastructures. These initia- tives can not only improve building (fl oor space) use, data server use (computing), but also reduce carbon emissions by almost 7,500 tons a year (IBM, 2007).

138 ◾ Green IT Strategies and Applications

demand on the data center infrastructure. For example, virtualization reduces the demand on the data center fl oor space, which, in turn, reduces building size, number of people required to run the center, and reduced number of support tasks. Virtualization has to be supported by the operating system that would separate the underlying hardware from corresponding application software. Ā is is shown in Figure 4.7. As also shown in Figure 4.7, virtualization software is mainly focused on creating multiple views of the same underlying hardware and operating sys- tem. Sometimes, the operating system is itself equipped with virtualization capabilities. Ā ere are various ways and at various levels at which virtualization can be implemented. Ā es e include presentation virtualization (wherein users get a fe el for owning the presentation of an applica- tion, whereas it is actually shared), application virtualization (enables multiple users to use the same application), desktop virtualization (applies the virtualization techniques of the servers at a local, desktop level), storage virtualization (applied to databases), and network virtualization (relates to the communications and networking equipments of the data center). Ā es e various virtualization te chniques a re not i ndependent of e ach other. For e xample, presentation v irtu- alization, w hich g ives u sers t he o pportunity to a ccess t he p resentation l ayer i n a sh ared w ay, is a ctually c losely c onnected w ith t he ap plication v irtualization. A pplication v irtualization i s where a n application is delivered to t he end-user in a v irtualized environment separated f rom the underlying operating system (see Figure 4.7). Multiple application versions can be executed in this way also where there are compatibility issues between an application and the operating system.

Desktop v irtualization wo uld s eparate t he en vironment o f t he u ser f rom t he h ardware. Operating s ystems m ay a lso en able s ession v irtualization (that u se te chnologies l ike Ci trix) to enable separate execution of sessions on the same instance of application and hardware.

Applications Software (Owns & Uses)

Virtualization (Manages Virtual views)

Operating System (Facilitates sharing)

Physical Server (Hardware-Shared)

One Physical Server is divided in many Virtual Servers

Machine

PCOS

Use

Figure 4.7 Data server virtualization.

Green Assets ◾ 139

Physical Data Server Organization and Cooling Ā e physical a rrangements of d ata servers, t heir a isle organiza- tion, and the manner in which the fl oor space and racks are phys- ically organized a lso i mpacts t he overall c arbon em ission f rom that d ata c enter. Figure 4. 8 sh ows a p opular p hysical a rrange- ment of servers to reduce the power required to cool them. Ā is is called the hot-aisle–cold-aisle arrangement. Figure 4.8a shows a typical server machine. Figure 4.8b shows the aforementioned arrangement.

Ā e p hysical c ooling o f t he d ata c enter i s o ne o f t he m ost important ap proaches to re ducing t he c arbon fo otprint o f a n organization. Ā ese s trategies s tart w ith a rchitecture, de sign, and c onstruction o f t he d ata c enter b uilding, l ocation o f t he center itself, p ositioning of t he s ervers. a nd s trategies for u sing air, water and other means for cooling the servers.

As d iscussed b y Philipson (2011), d ata c enters u se a n umber of d iff erent te chniques to c ool their servers. Water cooling has been popular to handle the heat dissipation issues (Cronin, 2008). In addition to w ater cooling, a ir cooling of servers using the concepts of hot-aisle a nd cold-aisle (i.e., making the servers face diff erent directions to maximize cooling) is also popular—as shown in Figure 4.8.

Ā ese techniques are becoming far more important because they not only reduce the carbon footprint of the organization but, at the same time, improve its economic performance by reduc- ing r unning c osts o f p ower c onsumption. F urthermore, rep orting re quirements a re b ecoming increasingly stringent a nd t here is a n increased awareness across business a nd society of t he un- sustainability of many current consumption patterns (Philipson et al., 2009).

According to the EPA, we can expect a global consumption of 100 million kWh energy for cooling data centres that should cost approximately $7.4 billion. This is mainly because there is rapid increase in sophisti- cation of data server technologies demand- ing greater power but the corresponding cooling technologies have not kept pace. Therefore, physical organization of the data servers, their operational effectiveness and cooling strategies all play a crucial role in the overall reduction in carbon footprint.

Based on http://googledatacenters. blogspot.com/2009/11/data-center-cooling. html accessed March 23, 2011.

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140 ◾ Green IT Strategies and Applications

Physical arrangements of servers require the following careful considerations:

Server optimization ◾ . W hile physical data servers usually reside in t he data center, t here a re still numerous opportunities in a l arge organization for some of t hese servers to ap pear in offi ces. E ventually, t his “ server h oarding” c an re sult i n u nmanaged, u naccounted s ervers that keep consuming power without t he benefi t of virtualization. Ā is can also happen in particular w ith te st s ervers w hich, a lthough n ot h idden, m ay p roliferate w ithin t he d ata center itself. Multiple s ervers m ay b e u sed fo r d iff erent te st sc enarios. A fter t he te sting i s completed, the servers may remain unused and unaccounted. Disk identifi cation ◾ . In addition to t he servers, identify the disks and other memory mecha- nisms used in the servers. Optimized use of storage devices in the data center is vital to reduc- ing the overall power need of the data center. Storage devices that are operational and running but not providing any services should be formally accounted for and decommissioned. Implement a m ultitiered st orage sol ution ◾ . P rovide h ot a ccess to u sed d ata a nd l ess sp eedy access to data that is there as a backup or legal requirement. A large amount of data that is ready to be used on storage devices is not accessed frequently. Specify l ow-power c onsumption, l ow v oltage s ervers tog ether w ith h igh-effi ciency Power ◾ Supply Units that have a conversion of 80% or more. Equipment Reuse. Ensure reu se of equipment t hat is no longer required but is still serviceable. ◾ Energy is required to manufacture, distribute, and recycle equipment as well as to use it. Extending its use or seeking its reuse elsewhere will save energy as well as purchase and disposal costs. Re-engineer Layout. Data center auditing identifi es mismatches between the current physi- ◾ cal layout and the layout that would maximize the eff ectiveness of cooling from air condi- tioning units. Up to a 20% reduction in cooling could be achieved by doing this.

Employ cooling strategies that are applicable at various levels within the data center—such as room-based, rack-based, a nd component-based cooling. Ā ese cooling strategies are interspersed with water-based and air-based cooling for example.

Cloud Computing and Data Centers Cloud computing (Murugesan, 2011) provides substantial oppor- tunities for organizations to c onsolidate t heir hardware a nd c or- responding data space requirements. Cloud computing off ers the potential for economies of scale that go beyond a single data center and a single enterprise. Ā is is so because with Cloud computing there is opportunity to n ot only consolidate t he costs of services but a lso sh ift t he c arbon g eneration to a re latively c entralized place where it can be better controlled and optimized. Alford and Morton (2009) estimated that the use of Cloud computing costs an organization two-thirds less than running the same workload on a p rivate n onvirtualized d ata c enter. Ā e c oncept o f C loud computing i s a lso ap plied w ithin t he o rganizational b oundar- ies, e specially for large, multinational organizations. Ā is results in c onsolidation of applications, d ata w arehouses, a nd h ardware

within the organization, resulting in what is called a private cloud (discussed by Velte et al., 2009). Ā e “software as a s ervice” (SaaS) business model emanating from Cloud computing allows companies

The offerings of Cloud computing have a role to play in carbon reduction. However, it has to be a highly balanced act. The cloud can take the responsibility of carbon emissions of a business outside its boundaries. But that is not necessarily an overall reduction in car- bon emissions by the IT industry. A cloud, as a offering of computing services on the Internet, provides “a new consumption and delivery model for information technology (IT)” (Mell and Grance, 2009). Consolidation and optimization of services on a Cloud, resulting from on-demand self service, ubiq- uitous network access, location independent resource pooling, rapid elasticity and pro- visioning, and pay-per-use—all go toward reducing carbon footprint of the IT industry.

Green Assets ◾ 141

to access key enterprise applications such as customer relationship management (CRM) and supply chain m anagement (SCM) t hrough t he I nternet. A s a re sult, t he c loud o bviates t he need to h ost these applications in a proprietary data center. Ā e opportunities to reduce carbon emissions increase with consolidation of both hardware and software applications. Furthermore, the payment models for SaaS-based applications is usually based on its usage—akin to the typical monthly bill received for utilities such as gas or electricity. Ā e typical data center planning that makes provision for even- tualities can be sidestepped for an overall planning by the cloud service provider. Ā ere fore, future business growth (including mergers a nd acquisitions) c an be planned without producing excessive and, eventually, unusable data center capacity. Ā e resulting carbon savings from not having a private data center can be phenomenal.

Networking and Communications Infrastructure Ā e discussion thus far has been on data centers and the physi- cal servers housed in them. However, the data centers also usu- ally h old t he c ommunication e quipments a nd re lated a ssets o f the organization. Ā ese communications infrastructure support the internal a nd external networks of a n organization a nd play a si gnifi cant role in its carbon footprint. Ā is “C” for c ommunications i n ICT t hat c ontributes to t he c arbon generation includes t he s witches, routers, t he L AN, WAN, a nd a ssociated mobile transmission devices. Monitoring of networks, their interoperability, their uptimes and full-times, are also factors contributing to the carbon footprint.

Networking strategies that are part of information architecture can not only help reduce traf- fi c but also improve carbon performance. For example, having a t hick-client architecture, which enables subs tantial processing at t he c lient end, c an re duce t he processing t raffi c. Reduction of communication tra ffi c e ventually re duces t he s erver l oad m inimizing m emory a nd p rocessing time o n t he s erver. H owever, t his i s a lso a ba lancing a ct t hat re quires c areful at tention to t he overall p erformance of a n application. I f s erver-side t raffi c is reduced, then the thick-client will require installation and confi guration of a large part of the application. Ā is can result in increased infrastructure at the client end. Ā e approach has to be a unifi ed one, balancing the network traffi c reduction with the potential increase in overheads at the client side. Following are the categories of networks that need attention of the network manager in terms of their carbon connotation.

Local Area Networks (LAN). Ā ese are the local networks of the organization that are made up of t he physical connections a mongst t he machines a nd primarily t he d ata center. Usually, t hese may be a collection of cables that may have “grown” as the organization grew; lack of planning and architecture for LANs is a major factor in consuming substantial power and thereby adding to the cooling requirements. A well-architected and effi cient LAN will imply lower power consumption and therefore lower emissions.

Wide Area Networks (WAN). Going beyond a local region, the wide area networks of an organiza- tion enables communication amongst its desktop and laptop machines with and beyond its data center. Typically, the WAN comprises use of communication lines that make up the virtual private network (VPN) of the organization. Such VPN is made up of leased communications lines which reduce the extent of infl uence an organization has over its power consumption and carbon generation.

Mobile Networks. Unhelkar (2008) h as d iscussed i n detail t he va rious mobile network tech- nologies and mobile enterprise architecture that can also provide the backdrop for carbon reduc- tion. Ā e mobile communications infrastructure stack is made up of TCP/IP at the base, followed

Well-integrated and optimized networks that also incorporate combination of cen- tralized and decentralized approaches and plug-in sensors which can increasingly play a major role in reducing carbon effects.

142 ◾ Green IT Strategies and Applications

by the WAP, personal area networking (PAN), and, depending on the needs of the applications, metropolitan area networks (MAN). Ā ese network communications technologies further include the IEEE 802.1x group of standards and Infrared, Bluetooth, RFID, WiMax, and Wireless VoIP. Using a good M EA enables c alculations of c arbon across t his entire st ack of networks together with i ts l inks o r p rogrammable i nterfaces fo r I nfrared, Bl uetooth, a nd t he c ellular n etworks. As discussed by Jamalipour, and also by Ghanbary, the upgrading of the current mobile network architectures is inevitable—as the future demands from the mobile Internet are likely to b e dra- matically diff erent (e.g., the imaginative 4G and 5G).

Wireless L AN/WAN. Ā e pa raphernalia a ssociated w ith w ireless c ommunication b ecomes a major source of carbon generation and needs to be considered in comparison with the wired com- munications. W hile w ireless c ommunication m ay g ive t he i mpression of re duced h ardware a nd infrastructure (due to lack of physical wiring), it may still be ineffi cient and result in substantial carbon i f not properly a rchitected during i nstallation a nd not monitored during operation. For example, if wireless transmitters and receivers are left on when they are not being used (full-time), they would produce more carbon than their wired counterparts. For example, short-range mobile networks such as those used in offi ces, homes, a nd local “ hotspots” (such a s a c off ee shop or an airport) tend to have an unplanned usage pattern.

WiMax is another mobile standard for point-to-point communication that is based on radio- frequency standardized technology (IEEE 802.16) that tends to guzzle power, especially when it is on but not in use. WiMax, made up of transceivers to base antennas, need standards to ensure these networks a re s witched on-and-off dep ending on t heir u sage pat tern. Ā e ne ed to d evelop these s tandards i s ur gent, es pecially a s t he n ewer ( IEEE 8 02.20) s tandards f or m obile b road- band communications technology providing further high-speed wireless, IP-based connectivity to mobile devices like cell phones, PDAs, and laptops comes into play. Ā e end-users, however, can play a role in the use of these communications technologies as they are short-range communica- tions that can be controlled partially by the end-user.

Ā e l ong-range co mmunications net works, p rimarily m ade u p o f t he c ellular n etworks (defi ned through their generations (G)), require a much more organized and consortium-based

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Figure 4.9 ICT devices as green enablers.

Green Assets ◾ 143

approach fo r c ontrolling t heir c arbon em issions. I n pa rticular, t ranscending to t he 3G n et- works dem ands si gnifi cant i mprovement i n t he q uality-of-service ( QoS) to en able p rovision of a ll t he s ervices t hat t he vendors w ant to p rovide. Ā e c arbon c ontribution t o i mprove t he QoS has not been considered thus far. Now, it is vital to ba lance the provisioning of 3G with its carbon coeffi cient.

End-User Devices End-user devices and gadgets including the peripherals that are employed by the users were depicted in Figure 4.3. Ā es e gad- gets a nd de vices a re pa rt o f t he m ovable a ssets o f t he o rgani- zation. Ā ese de vices n eed to b e c onsidered f rom t heir c arbon contribution viewpoint, typically in the initial tactical or opera- tional ap proach to G reen I T b y t he o rganization. Ā is is t he typical 3 –5 ye ars s trategy (as de scribed i n t he Figure 2 .2). For example, H P l ab te sts h ave fo und t hat c onfi guring P Cs w ith the optional 80% effi cient power supplies a long w ith t he other ENERGY S TAR 4. 0 h ardware re quirements c an re duce to tal system p ower c onsumption a s m uch a s 5 2%, t ranslating i nto an average a nnual cost savings ranging from $6 to $ 58 per PC (Palo Alto, 2007). On the infrastructure front, broadband networks and cyber-infrastructure can go a long way in helping reduce the U.S. carbon footprint. Estimates of 15%–20% overall reduc- tion of CO2 are possible through virtualization and dematerialization using broadband networks (Hatch, 2009).

Devices n eed to b e i nspected a nd fo rmally aud ited to en sure t hey a re s erviceable. P roper maintenance o f e quipments w ill en sure t heir l onger o perating l ife a nd e ventually t heir reu se. Nonreusable e quipments sh ould b e re cycled. E ventually, i f t hey c an n ot b e fo rmally re cycled, equipments should be ethically disposed. Ā is disposal implies decomposing the equipment (typi- cally a PC) into its plastics, metals, and other basic materials which can then be reused in future. A “green” disposal like this would ensure necessary safety as well as security procedures are carried out prior to reuse, recycling, or disposal.

Following Table 4.3 ( Kamani e t a l., 2 011) l ists t he i nitial or t actical approach to de vices i n Green IT that is based on the Green P-O-D. Ā is table refl ects the fact that a substantial amount of carbon can be saved by paying attention to the manufacture, delivery, and disposal of comput- ing equipments.

Smart Meters in Real Time Smart m eters a re m eters t hat n ot only m easure t he p ower c onsumption automatically, b ut a lso provide feedback to the users in real time. Ā us, these smart meters give businesses an opportunity to monitor a nd t ake i mmediate a ctions to m itigate t heir p ower c onsumptions. By a dding price information and by providing trends and patterns, households and businesses can be encouraged to monitor and reduce their use of power consumption.

In a ddition to g athering re al-time i nformation f rom de vices i n u se (such a s c omputers a nd monitors at work and microwaves and dryers in households), smart meters can also transmit this

As per the climate group (2008) the num- ber of PCs are expected to increase glob- ally from 592 million in 2002 to more than 4 billion in 2020 (Garito, 2011). An impor- tant development in this regards is that the desktop PCs that dominate today’s market (84%) will be largely replaced by laptops. Year 2020 may see 74% of all computers in use as laptops. The remaining will have fully used the low energy alternatives, such as liquid crystal display (LCD) screens. Research areas such as quantum and opti- cal computing could also have a substantial impact on the hardware assets.

144 ◾ Green IT Strategies and Applications

Table 4.3 Polices and Practice of Green P-O-D in the Context of Devices and Peripherals

Tactical Green IT Activities Comments and Reasoning

Eliminate the use of active screen savers

The amount of energy used by a monitor with an active screen saver is almost the same as the one doing useful work. Therefore, active screen savers should be eliminated.

Implement active power management

Operating systems of end-user devices should be controlling the switching-off of the devices when not in use. Hibernate feature is much more useful than standby in this case. Furthermore, standby, hibernation, and switch-off features for end-user devices should be automatically confi gurable—enabling their shutdown without user intervention, at given times, and reducing the overall energy consumption.

Central management of machines

Many large offi ce environments (such as banks and insurance organizations) have thousands of computer machines that can be managed centrally. At certain times, such as at night, these end-user machines need not be even on standby power. Even if a fraction of these machines are left on standby or running, they consume power. Central management of these machines will enable much better handling of their on- and off-times.

Specify low-power consumption CPUs and high-effi ciency power supply units (80% conversion or better)

System specifi cations should be optimum. Over specifi cations with rich functionality on a device draws more power even if the features are not all used. Similarly, power supply units with corresponding power surge protection need to be specifi ed for the power requirements at hand. Effi cient power supply units can go a long way in reducing energy consumption.

Consider thick versus thin client carefully

Ensure right balance between a thick- and a thin-client architecture. While a thin client is less complex than a PC and contains fewer components. However, additional energy is required to support the greater bandwidth necessary for connection to its server as well as to run the server and its supporting air-conditioning equipment.

Use timer switches to gadgets (e.g., printers)

Peripheral devices, such as fax machines, printers, and copiers consume power even when on standby. Improved switch-off mechanisms including timer switches can reduce their overall carbon footprint.

The use of timer switches to turn off such equipment automatically has to be a mandatory feature of these devices.

Printer setup Setting the printer, centrally, to a default feature of draft, duplex, and grey scale can reduce the amount of ink and paper used by printers. Other procedural features such as providing only a limited number of common printers (rather than one per desktop), counting and providing real-time feedback to users on their paper usage, and reducing the printing to only legal and formal documents can produce signifi cant carbon savings.

Green Assets ◾ 145

Table 4.3 (continued)

Tactical Green IT Activities Comments and Reasoning

Device consolidation and sharing

Consolidating the total number of electronic devices such as PCs and printers is a part of tactical/operational strategy. Such consolidation and reduction in numbers will reduce not only the energy consumed by the devices but also their support and maintenance effort.

For example, shifting from a PC to laptop, using the same laptop in the offi ce and at home and using integrated mobile phones can all reduce emissions.

Green P-O-D and the Polices and Standards on Peripherals

Open source system software (ICT) and applications

Open source systems are much better positioned to support an agile organization. Changes to business processes can be handled easily by the underlying applications as they are not restricted to a proprietary environment. Cloud computing is likely to further add to the opportunities for open source systems. Therefore, the relationship between open source and carbon reduction is a positive one and should be explored in the organizational policies on Green IT.

Device replacement approach.

Polices on device replacement should incorporate replacing conventional devices with environment-friendly devices. This replacement, however, should not be undertaken in one go—but should be phased to coincide with the end of working life of an equipment.

Attitude and practice Procurement, operation, and disposal of user devices are infl uenced by the attitude and practices of individuals. Therefore, provide training to staff and support the practice of Green IT.

Encourage product innovation and environmentally conscious design

This is an important consideration for manufacturers of end-user devices. A carbon-effi cient product design has tremendous opportunity to infl uence overall carbon reduction over the life of the device.

Lifecycle maintenance and assessment

Put together a maintenance program that also includes preventative maintenance. Apply metrics to measure the emissions of a device over its entire lifecycle. This includes calculations of the TCCO. Thus, a device that is produced with less carbon emissions should also be measured for the emissions it generates over its lifetime— and during disposal.

Maintain current device inventory

Device inventories provide an understanding of not only the carbon-emitting devices that are in use, but also the ones that are on standby or in the stores and not yet being used. An improved understanding of the devices and their usage can lead to a reduced inventory and corresponding reduced carbon footprint.

(continued)

146 ◾ Green IT Strategies and Applications

data for further analysis. Smart meters can thus be the front end of environmental intelligence (EI) applications. By computing the carbon data in real time, and correlating it to other information such a s weather pat terns, production planning, a nd HR, EI applications c an provide actionable information to the users.

Ā e transmission of carbon data also occurs to the utility organization that is providing the energy or, si mply locally, to t he business or householder. Smart meters c an f urther enable auto- matic management of a device or group of devices. For example, apart from providing the power consumption d ata in real t ime, a sm art meter c an a lso be confi gured to sh ut t he de vice when a certain level of power has been consumed.

Smart meters thus require a supporting infrastructure that includes the installation, confi gura- tion, and communications with the meters. Ā is infrastructure facilitates changes to the meter con- fi guration, its activation and reading, and its reporting mechanisms. For example, currently, smart meters c an b e c onfi gured to g enerate hourly, h alf-hourly, or quarter-hourly re adings. I ncreasing the frequency of carbon data collection can improve its monitoring and potential mitigation—but will increase the infrastructure associated with the meters themselves.

Managing Devices for Central Green Services Most large organizations (e.g., banks, airlines, hospitals) will have thousands of end-user devices such as computers and printers. Strategic Green IT will not leave the management of these devices to the individual users. Instead, increasingly, it is making sense to manage these myriad devices through centralized green services. See Figure 4.9 for the ways in which devices are used for green services. For e xample, a ll t he de sktops or laptops i n a l arge ba nk or i nsurance organization c an be confi gured according to the Green IT policies of an organization. Ā is can include specifi c use of to ols (e.g., B igFix’s p ower m anagement, http://www.bigfi x.com/content/green-it) t hat wo uld enable management of thousands of PCs with a single server that would consolidate and automate the management of their operating system, upgrades, and security management tasks. Centralized management of large number of machines for an organization is set to play a signifi cant role in an o rganization’s at tempt to re duce i ts c arbon fo otprint a s i t en ables c onsistency a cross a ll t he machines in terms of power management software, low-level power settings, lower energy confi gu- rations, and also consolidated green procurement and disposal.

Table 4.3 (continued)

Tactical Green IT Activities Comments and Reasoning

Green IT technical standards

Apply standards such as the ISO 14001 family of standards to reduce emissions.

Supporting ICT infrastructure

For every device within the organization, there are supporting infrastructure requirements. These include external cables, routers, and repeaters. External to the organization are the fi ber optic networks, transmission towers, and related communications infrastructures. Correlate the devices to these external requirements. Reduction in the number of devices can also reduce the infrastructure requirements.

Green Assets ◾ 147

Centralized s ervices fo r m anaging c omputers c an m ake u se o f en vironmental s ensors a nd intelligent controls to monitor and manage a cluster of computers remotely. For example, a wire- less smart meter can generate an alert in response to the occurrence of an event. Centralized device management c an t ake ap propriate a ction a s a c ombination o f au tomated re sponse a nd m anual intervention—to reduce the eff ect of the event.

Smaller-sized, sm art, m obile de vices c an a lso p lay a m ajor ro le i n re ducing em issions. Ā is is so b ecause m obile de vices a re n ow a ble to su pport a nd h andle a sset m anagement, m arket- ing, outsourcing, security and information distribution, and other business collaborative activities location independently. Ā is can ensure performance and availability of the corporate system by real-time access of the enterprise and, at the same time, enable easier management of these smaller- sized de vices a s c ompared to de sktop c omputers. M obile de vices c an a lso re duce u nnecessary movement of people and materials. However, mobile devices may produce electronic waste due to shorter lifespan of their batteries and the devices themselves. Ā erefore, they should be introduced and used in the organization in a balanced way.

Devices and Organizational Boundaries for Measurements Devices in the Green IT discussion play two roles: those that emit carbon and others that are used to measure, monitor, and mitigate carbon. Ā e previously mentioned smart meters that automati- cally measure a nd report on c arbon em ission a re pa rt of t he tools a nd te chniques t hat a re u sed in measuring and mitigating carbon emissions. It is important to take care in the use of such metering devices as they themselves may be carbon emitters. Ā e devices should meet standards, operating w ith m inimum energy re quirements a nd b e te sted for quality b efore i nstallation a nd usage. Ā is should ensure that the device itself would not act as an energy consumer which would although reduce the process’ emission but would itself consume energy. Ā ey are also very eff ective tools in measuring and monitoring emissions.

Adding to the complexity in the use of devices is the fuzzy nature of organizational boundar- ies. Collaborative businesses a nd web s ervices make it challenging to c alculate a n organization’s carbon footprint. While devices that belong to the organization are relatively easy to account for, these same de vices when outside t he physical boundary of t he organization may still contribute to t he c arbon em issions. For e xample, a l aptop b elonging to a n organization, b eing u sed by a n employee w ho i s on a n overseas t rip, i s g etting c harged at a n overseas de stination b elonging to another. E nergy c onsumed i n suc h c harging m ay n ot g et c alculated i n t he p ower b ills o f t he organization.

Figure 4.10 shows t he i mportance g iven by t he su rvey pa rticipants to t he va rious to ols a nd techniques in carbon measurement.

Dashboard displays attached to t he devices to d isplay emissions: 5% strongly agreed, 20% ◾ agreed whereas 47% d isagreed-to-strongly d isagreed when a sked whether such de vice d is- plays were in use in their organization. Ā is could be due to the lack of availability of such devices or, more importantly, lack of supporting infrastructure based on wireless communi- cation that would enable collection and reporting of carbon data on dashboards. Mobile gadgets attached to devices for measuring emissions: 20% agreed-to-strongly agreed ◾ to the use of such gadgets currently occurring in their organization. Forty-two percent felt that such use was not occurring—indicating a need for further investigations into promot- ing the use of mobile gadgets in carbon measurements.

148 ◾ Green IT Strategies and Applications

Surveys of employees and other stakeholders: 39% on the favorable side whereas 35% view- ◾ ing suc h a to ol u nfavorably i n its c urrent format. However, t his su rvey te chnique w ill b e required for measuring the subjective factors such as attitude. Inventory o f t he o rganization t o i dentify u nused good s: 22 % st rongly a greed a nd 3 3% ◾ agreed (total of 55%) that such inventories are available in their organizations and that these inventories of unused goods plays an important role in their carbon management strategy. Interviews of employees and stakeholders to ascertain carbon emissions: 9% strongly agreed ◾ and 35% agreed to t he use of this technique in their organization. 33% did not agree with the suggestion that such technique was used in measuring carbon emission.

Mobile Devices and Sustainability Mobile technologies including mobile networks and mobile devices have a substantial role to play in the sustainability eff ort of an organization. Unhelkar (2008) has discussed in detail the impact of m obility o n b usiness su stenance a nd t he p hysical en vironment i n w hich t he b usiness e xists. Ā at d iscussion a lso e xtended to t he d iscussion on responsibility of mobility toward people a nd society from an environmental perspective. Mobile users are increasingly concerned with the cost of en ergy a nd t he en ergy c onsumption o f t heir de vices. Ā is l eads to d iscussions sp ecifi cally

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Figure 4.10 Tools used for measuring carbon emissions in your organization.

Green Assets ◾ 149

Mobile devices, in particular, impact the car- bon footprint of an organization by consum- ing operational power, generating electronic waste as the devices and their batteries become redundant, and, on the positive side, offering opportunities to reduce carbon by being incorporated in the green processes of the organization. Thus, mobile technologies, like the data centers, are both—the cause for carbon generation and the potential help in ameliorating that carbon.

According to the Environmental Impact Assessment Review (July 2005), between 1994 and 2003, PC disposal resulted in 718,000 tons of lead, 287 tons of mercury, and 1,363 tons of cadmium being placed in landfi lls. As PC penetration continues to increase worldwide, the e-waste problem will only get worse. Fortunately, the mobile devices are smaller, lighter, and contain far fewer electronic parts compared to a PC. In fact, mobile gadgets reduce e-waste by 98% because they weigh less than a typical PC. (www.hardwarezone.com)

focusing on improving energy and reducing the environmental impacts associated with mobile usage by business.

Ā e demonstration of the importance of the environment in mobile technology deployment is considered as an essential factor to t his r apidly e merging t echnology. Ā is is so bec ause, mobile technologies and devices, through their permeation in the fabric of our society, infl uence the physical environment as well as social attitudes a s ne ver b efore. Mobi le t echnology a round t he world has m ade m obility a u nique en vironmental c hallenge, re quir- ing at tention to ward w hat i s c alled G reen M obile. Figure 4.11 summarizes the concept of Green Mobile. Green mobile can be considered as eff ective adoption of mobility by business in envi- ronmental c onsideration. Ā us, g reen m obile a ff ect economic viability, business process optimization, social responsibility, and technological capabilities, which form t he four dimensions in a green en terprise t ransformation. Figure 4.12 i ndicates t he p er- centage use of mobile technologies across various industrial sec- tor. Ā is fi gure hi ghlights t he co rresponding o pportunities f or carbon reduction with the use of mobile technologies.

Green m obiles en compass c arbon-sensitive b usiness s trate- gies, optimized and collaborative business processes based on environmental intelligence approach,

Smart Card

Mobile Phones Wireless Laptop/

Tablet PCs

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Carb on

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on CarbonReductionMobile Devices

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Network Routers

Figure 4.11 Mobile devices and Green P-O-D (outside of data center). The devices shown in (a) are grouped in (b). Each group of devices have their own uniqueness in terms of carbon emissions. For example, phones and laptops have lesser infrastructure but greater operational impact, whereas its the otherway round with networks and routers. Figure 4.11 (c) further highlights the need to con- sider the carbon production and reduction in both design and operation of these devices.

150 ◾ Green IT Strategies and Applications

mobile n etworks, i ncorporation o f t he R FID t ags, m obile t ransmissions, i mproved de sign o f t he devices and their batteries, and also their ethical disposal.

Examples of green mobile includes policies for reuse rather than upgrade of mobile phone, introduction o f m obile sm art m eters, i mproved a nalysis a nd rep orting o n en vironmental d ata (EI), and biodegradable material usage in the devices themselves (e.g., Biodegradable “Sunfl ower Phone” that has a built-in seed that will grow once the phone is planted in the ground; or Nokia— 3110 “bio-cover,” the casing is composed of 50% recycled material and packaging made from 60% recycled material).

Ā e use of laptops in the business processes also have an interesting aside in their use as com- pared with the desktops and servers on the business side. Ā e desktop computers are heavy in size, need more power to run, and contains more amount of toxic materials such as lead, cadmium, and zinc. Mobile laptops such as notebooks, sub-notebooks, PDAs, and palmtops require low weight, low-power consumption, and good interactive performance (Douglis et al., 1994). Ā ey also tend to consume less power than the corresponding desktop machines.

“Mobile en terprise t ransitions,” a s d iscussed b y Unhelkar ( 2008), p resents a c omprehensive framework that has greater details on how to approach these environmental issues in a holistic and responsible manner. For example, in addition to recycling the phone itself, the mobile transforma- tion framework also focuses on the place of the mobile device in the overall business process—and investigates the need to use that device in the process. Ā is may be the use of a wireless PDA for an insurance agent that will reduce people movement. Reengineering the process with sustainability in m ind c an f urther lead to p otentially e liminating t he mobile phone a s a de vice a nd, p erhaps, replacing it with a messaging system combined together with a laptop or a tablet PC. Ā is respon- sible approach toward mobility is in sync with the thoughts on sustainability by business experts working in this area. For example, Cartland (2005) writes about the signifi cance of studying and optimizing supply chains with regards to sustainability in business. Unhelkar and Dickens (2008) and Unhelkar and Trivedi (2009) have also argued for the importance of Green ICT and environ- mentally responsible business strategies (ERBS) and have explored various ways in which mobility can help the environment and sustain the business.

88%

93%

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0% 50% 100%

Manufacturing

Construction & utilities

Retail & wholesale trade

Education, health, & community …

Transport & postal

Communication & Media

Finance

Administrative & Professional services

Others

Figure 4.12 Use of handheld devices across industrial sectors.

Green Assets ◾ 151

Discussion Points What is the impact of the data center aspect of Green IT strategies on carbon reduction? ◾ Describe how organization’s Green IT strategies could be translated into practices in terms ◾ of procurement and disposes of assets that leads to reduction in carbon emission? How an effi cient use of Green assets could lead to reduction in energy consumption? ◾ Describe h ow t he b uilding l ocation, de sign, a nd a rchitecture h as a d irect i mpact o n t he ◾ overall carbon generated by the organization? List, with examples, the factors infl uencing Green data centers. ◾ What is just one extra “bit” for an end-user evolves into a signifi cant overhead for the orga- ◾ nization. Discuss the various ways in which one bit infl uences the overall carbon footprint of the organization. What is virtualization? What are the advantages and risks associated with virtualization? ◾ How can Cloud computing help reduce carbon emissions? ◾ What is the role of smart meters in Environmental Intelligence? ◾ Discuss in detail the role of green mobile. ◾

Action Points Identify the various Green assets for an organization. ◾ Does your organization have a data center? Identify two important factors that are aff ecting ◾ the carbon emissions of your data center. Update your Green IT strategy with approaches to improving data center building based on ◾ the discussion in this chapter. Apply d ata c enter s trategies fo r c arbon re duction suc h a s s erver v irtualization a nd de vice ◾ optimization. Identify the impact of asset management procedures on carbon reduction such as procure- ◾ ment of assets and asset disposal. Incorporate smart meters in your EI implementation. ◾ Incorporate green mobile in your EI implementation. ◾

References Alford and M orton. (2009). http://www.techrepublic.com/whitepapers/cloud-cube-model-selecting-cloud-

formations-for-secure-collaboration/2311549 Chuba, M. (2008). Gartner S urvey S uggests E xtensive D ata C enter E xpansion P lans A re on the H orizon.

Stamford, CT: Gartner. Cronin, D. (2008). Using Water Cooling in the D ata C enter B rings Challenges , F acilitiesnet, F eb. 2008.

Retrieved D ecember 12, 2008 fr om www.facilitiesnet.com/datacenters/article/Using-Water-Cooling- in-the-Data-Center-Brings-Challenges--8227

Fred, D., Ramón, C., Frans, K. M., Krishnan, P., Kai, L., Brian, M., Joshua, T. (1994). Storage Alternatives for Mobile Computers: Operating Systems Design and Implementation.

Gantz, J. (2009). Ā e Diverse and Expanding Digital Universe. Framingham, MA: IDC. http://www.dcgtasia. com/ index.php/dcgtasia/Sydney

Ghanbary, Abbass. (2006). Evaluation of Mobile Technologies in the Context of their Applications, Limitations and Transformation. In Handbook of R esearch in M obile B usiness. E dited b y B huvan U nhelkar. IGI Global, Hershey, PA, USA.

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Hatch, D. (2009). “Green IT/broadband and cyber infrastructure.” Telecommunications, May 2009. IBM GBS. (April 2008). Ā e Green Data Center: Cutting Energy Costs for a P owerful Competitive Advantage,

pp. 1–16. IBM. (2007). IBM Unveils Plan to Combat Data Center Energy Crisis; Allocates $1 Billion to Advance “Green”

Technology and Services. Press release, 10 May (www03.ibm.com/press/us/en/pressrelease/21524.wss). Jamalipour, Abbas. (2003). Ā e Wireless Mobile Internet: Architectures, Protocols, and Services. Wiley. See also A.

Ghanbary’s subsequent research conducted at the Mobile Internet Research and Applications Group at the University of Western Sydney and published in a PhD thesis by the researcher (2008).

Kamani, K., Kathiriya, D., Virparia, P., and P arsania, P. (2011). Chapter 19, Digital Green ICT: Enabling eco-effi ciency and eco-innovation. In B. Unhelkar, ed., Handbook of Research in Green ICT, pp. 282– 289. IGI Global, Hershey, PA, USA.

Koomey, J. G. (2007). Estimating Total Power Consumption by Servers in the U.S. and the World. Stanford, CA, USA. R etrieved January 13, 2010 fr om http://enterprise.amd.com/Downloads/svrpwrusecompletefi - nal.pdf

Murugesan, S. (2011). Cloud Computing. Chapman-Hall, USA. Palo Alto, Calif., March 12, 2007. HP D elivers Industry’s First PCs to Meet ENERGY STAR 4.0 hardware

requirements. Available at http://www.hp.com/hpinfo/newsroom/press/2007/070312b.html, accessed October 2010.

Philipson. (2010). ICT’s R ole in the Lo w C arbon E conomy. A ustralian I nformation I ndustry Association (AIIA), September 2010, Scott Evans and Josh Milln.

Ryan, E. J. (February 2008). Building sustainable IT. Cutter IT Journal, 21(2): 6–12. Sanders, T. (2008). Saving the World at Work. New York: Doubleday. Unhelkar, B. (2008). Mobile Enterprise Transition & Management. Auerbach, NY: Taylor & Francis Group. Unhelkar, B. (2008). Mobile enterprise architecture. Cutter Executive Report, Boston, USA, April 2008, 11(3),

Enterprise Architecture Practice. Velte, T., Velte, A., and E lsenpeter, R. (2008). Green IT: R educe Your I nformation S ystem’s E nvironmental

Impact While Adding to the Bottom Line. New York: McGraw-Hill Companies. Wal-mart. (2009). Sustainable B uildings. R etrieved M arch 23, 2011, fr om Walmart.com: http://walmart-

stores.com/Sustainability/ Trivedi and Unhelkar. (2010). PhD research, conducted at DDU University, Nadiad, Gujarat, India in 2010. Data appearing in the PhD thesis due for Submission.

Yi, L. and Ā omas, H. R. (August 2007). A review of research on the environment impact of e-business and ICT. Environment International, 33(6): 841–849.

153

5 Chapter

Green Business Process Management: Modeling, Optimization, and Collaboration

Just understand the natural way of things, and do not go against nature, because going against nature creates all sorts of problems.

Master Osho

Key Points Develops t he c oncept o f b usiness p rocess m anagement ( BPM) f urther to a G reen B PM, ◾ that of a lean business process to a lean-green business process, and that of business process reengineering (BPR) to a Green BPR. Green B PM ap plied f rom t he i ndividual, o rganization, a nd c ollaborative p erspective to ◾ ensure proper understanding of the levels of green processes. Green governance a ligned to c orporate governance a nd standards makes it pa rt of routine ◾ business. Use o f g reen s tandards a ligned w ith o ther c orporate s tandards to i mprove a nd en hance ◾ green best practices because of the business benefi ts achieved. Green business policies and business rules are discussed as necessary part of green business ◾ processes. Green BPM aff ects people, facilities, transport, development, production, and information ◾ and communication of an organization. Green business analysis applies effi ciency, eff ectiveness, and agility to organization’s business ◾ processes.

154 ◾ Green IT Strategies and Applications

Green business processes are best handled by keeping in mind their incremental complexi- ◾ ties: broadcast–informative–transactive–operative–collaborative. Mobile technologies support environmental initiatives in technical, economical process and ◾ social dimension.

Introduction Green business process management (Green BPM) deals with the overall management of all inter- nal and external processes of an organization from a green perspective. BPM is a well-established industry p ractice e ncompassing p rocess m odeling, r eengineering, a nd o ptimization o f p ro- cesses, and the measuring, merging, and elimination of business processes. Chapter 2 previously highlighted the four dimensions of green transformation (technology, people, processes, and eco- nomic aspects of the organization) and this chapter extends and focuses on the process aspects of an organization to outline ways in which transformation can occur. Ā e discussion in this chapter uses the premise that considerable carbon savings can be made if an organization changes the way it does things because it is good for business. Such a premise does not discount the carbon savings through the other aforementioned dimensions. Synonymous with the Lean approach to business optimization, a greening eff ort is heavily dependent on activities, tasks, their sequencing, and their utility to business goals.

Green business processes can be understood as environmentally conscious business processes that ar e n ecessary, e ffi cient, eff ective, a gile, a nd m easureable i n t he c ontext o f a n o rganiza- tion. P rocess c haracteristics t hat a re si gnifi cant to m aking a g reen p rocess a re su mmarized i n Table 5.1.

Processes a nd t heir a forementioned c haracteristics a re i nvestigated i n g reater de tail i n t his chapter. I n o rder to u ndertake t his i nvestigation a nd fo llow i t w ith g reen p rocess t ransforma- tion, a p rocess needs to b e de fi ned a nd u nderstood. I n t he c ontext of t his d iscussion, a p rocess can be u nderstood a s t he “manner in which” t hings a re c arried out w ithin a nd by a n organiza- tion. Processes are thus the “how” aspect of an organization’s functions. Ā e manner of operating a m achine, t he m anner o f s erving a c ustomer, t he m anner o f a dministering t he h uman re la- tions, and the manner of sales and marketing activities by an organization are all examples of these processes. Other examples of this “how” of an organization, include: how does a customer with- draws cash in a bank; how does a passenger buys an airline ticket; and how is a patient admitted in a hospital? Ā ese are common examples of business processes that, in reality, are highly complex and intertwined with other processes as well as technologies and people. Ā erefore, modeling and investigating t hem in detail reveal invaluable opportunities to c ut t he overall c arbon generation by the organization. In the green process optimization exercise, processes are challenged for their necessity in the fi rst place, others are optimized for effi ciency, some others are made more eff ective and a gile, a nd a ll a re measured in order to a scertain t heir c arbon c ontribution. Ā e exploration of processes in this manner leads to many opportunities to improve and optimize them during a green enterprise transformation.

It is worth nothing that the focus of carbon reduction from a process viewpoint implies that in some ways, this eff ort would be independent of the corresponding changes to t he hardware and applications of t he organization. W hile changes to te chnologies a nd people a re inevitable in a c omprehensive g reen en terprise t ransformation, i t i s i mportant to n ote t hat si gnifi cant advantages can be gained simply by changing the way things are being done in the organization.

Green Business Process Management ◾ 155

For example, in t he c ash w ithdrawal process by a c ustomer, effi ciency from a c arbon perspec- tive can be achieved by, say, not printing a physical receipt; or reducing the time in the queue for a physical cash withdrawal by applying the principles of operations research. While process reengineering and corresponding process management has been a part of business strategies for more than two decades, in this chapter, that knowledge and experience is applied to the organi- zational processes from a green perspective. Ā is chapter develops the concept of BPM further to a G reen B PM, t hat o f a l ean b usiness p rocess to a l ean-green b usiness p rocess a nd t hat o f BPR to a Green BPR.

Table 5.1 Basic Process Characteristics and Corresponding Green Connotation

Process Characteristic Description (Lean Business) Green Business Connotations

Necessary Challenges the need for the process in the fi rst place. There is no point in making a process effi cient and effective if it is not creating business value.

Eliminating an unnecessary process (not involving in value creation) will also eliminate its carbon contribution.

Effi cient Models the process to study its various activities/tasks. Challenges, automates, and merges activities to ensure they are performed with the best tools, technologies, and people.

Aims to reduce the carbon generation within the process by optimizing and/or eliminating the activities/tasks within the process. Technology is used by being embedded in the process.

Effective Ensures that the process is actually achieving the goals it is meant to achieve. A process that is otherwise effi cient and agile, but does not achieve business goals is not considered as effective.

Substantial wasteful carbon is generated by a process that is not effective—as it does not achieve business goals. Also, a process that is repeated more than once in order to produce the desired effect is a carbon- ineffi cient process.

Agile Deals with the ability of the process to change itself in response to (or in anticipation of) external and internal changes affecting the organization. Deals with the dynamicity of the process.

An agile process will change easily and effortlessly in response to changing external situation. The agile virtue also renders the process green, as it can change with minimum carbon generation.

Measurable Enables monitoring, control, and ascertaining the success of its optimization. Ongoing management of process performance is also supported.

In addition to the standard process measures, such as cost, time, and quality, now the “carbon content” of a process is measured. This helps in identifying the slack and optimizing it.

156 ◾ Green IT Strategies and Applications

Green Business Process Management Green B PM i s a n o verall ap proach to m odeling, o ptimizing, consolidating, a nd e xecuting b usiness p rocesses o f a n o rgani- zation f rom a c arbon p erspective. A pplication o f G reen B PM results i n i mproving t he w ays i n w hich a n o rganization (users and business areas within an organization) undertake operations. BPM c an be u nderstood a s a d iscipline of modeling, re alizing, executing, monitoring, and optimizing business processes (ACS, 2010). E ach o f t hese a spects o f B PM c an b e ap plied to ward a green enterprise. Silver (2006) has also described various fl avors of BPM such as enterprise application integration (EAI), work- fl ow, content management, and enterprise-wide human and sys- tem process automation that can be applied toward Green BPM. Ā us Green BPM, as discussed in this chapter, has opportunity to c apitalize on t he BPM approach in a n organization a nd c an be considered as a set of management and technology disciplines

focused primarily on workfl ow a nd process automation t hat drives t he implementation of opti- mized and sustainable business processes.

Such optimization of processes covers many aspects of the performance. Processes can be opti- mized to ensure effi cient utilization of resources. A lternatively, processes c an be reengineered to creatively eliminate the use of some redundant or duplicate resources. For example, a home loan (mortgage) process that requires application by a broker, credit check validation, and risk assess- ment through three separate agencies can be electronically consolidated as one. Such reengineer- ing of processes has been a hallmark of business effi ciency over past few decades.

Reengineering has been described as the fundamental rethinking and radical redesign of busi- ness processes to achieve dramatic improvements in critical, contemporary measures of perfor- mance suc h a s c ost, q uality, s ervice, a nd sp eed ( Hammer a nd C hampy, 1994). Dav enport a nd Short (business process redesign, 1990) developed the ideas of reengineering further toward holis- tic redesign of the organization based on processes. BPR aimed at a complete and radical change to the entire organization as against a piecemeal change per department. BPR also creates organi- zation-wide, holistic opportunities for carbon reduction as discussed in Chapter 2 on green strate- gies. Furthermore, Green BPR brings about dynamic changes to the business—implying, thereby, that not only are the processes changing but also the fact that those are continuous changes.

Green process management has a l ot to g ain f rom “Lean” a nd “Lean I T.” Ā e popularity of these “Lean” approaches to b usiness a nd IT can be attributed to t heir focus on reducing a nd/or eliminating wastages within the organization processes. Ā e relevance of lean to green policy for- mulations (lean-green) is discussed earlier in Chapter 3. Ā ese methods or approaches are initially applied by large and global organizations in order to produce process optimizations because such large enterprises are ideally suited to apply and capitalize through lean processes. Unlike smaller business, large organizations have greater strategic resources available to t hem and stand to g ain more. Activities of large organizations, especially mining, agriculture, and airlines, have a much greater i mpact on t he environment t han sm aller organizations. Ā erefore, re engineering of pro- cesses and application of the lean principles has a major role to play in Green BPM using an envi- ronmental parameter. Ā us, lean-green can be viewed a s a c hange to b usiness practices together with changes to business models and methods. However, in addition to making use of the lean approach toward greening an organization, enterprises, government, and society have to a lso get

Green business process transition is based on resource optimization. These resources include computers, contents, systems, and communication platforms that are part of the business processes. Green ICT includes tools for process modeling and many of the process-enabling technologies such as busi- ness rules, policies, and metrics. Examples of tools in Green BPM include Abnoba and Lombardi. Green BPM thus becomes an extension and sophistication of the process management domain that utilizes the con- cepts of process effi ciencies and effective- ness and applies it for carbon reduction. The earlier BPR advantages such as reduced expense, faster processing time, concur- rency/multiple access ability, effi ciency, and effectiveness can be identifi ed and mapped to reduction in carbon contents.

Green Business Process Management ◾ 157

together on a c ommon platform in order to i mprove environmental processes and practices that go beyond immediate business motivation.

Ā us, i t i s n ot o nly t he c hanges to t he p rocesses o r “ how” a n o rganization o perates t hat i s important, but also the underlying business models, technologies, and social aspects of that busi- ness. For example, business processes need not be only supported by technology resources, com- mon infrastructure, or application platform, but also through a transparent business methodology (see www.business-ecology.org) a nd b usiness m odels. I T p lays a subs tantial ro le i n p roviding a utility or a service to the business that can then be used by the business in its models and methods, such as lean, to become green.

Green Reengineering As mentioned earlier, Green BPM includes reengineering of business processes to o ptimize their emissions. R eengineering o f p rocesses to g reen p rocesses w ill i ncorporate re evaluation o f p ro- cesses a nd a lso a n u nderstanding a nd m odeling o f t heir su pporting h ardware, so ftware, a nd people i n o rder to c ut do wn t he c arbon g enerated t hrough t hem. S imilar to o riginal Bu siness Process R e-engineering ( BPR) e xercise b y Ha mmer a nd C hampy (1994), t he suc cess o f G reen process reengineering (GPR) depends heavily on undertaking a model-based, performance-driven approach that is applied to the entire organization.

Figure 5.1 illustrates t he concept of process reengineering in a si mple way from a g reen per- spective. Ā e si mple d istribution p rocess o n t he l eft i n Figure 5.1 sh ows a m anual d istribution

Manufacturer

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Figure 5.1 Core concept of GPR—a distribution example.

158 ◾ Green IT Strategies and Applications

process, w ith s teps l eading f rom t he m anufacturer t hrough to t he w arehouse, re tailer, a nd t he end-user. A reengineering exercise will lead to the formulation of the process shown in the middle of the Figure 5.1. Ā is is an electronically enabled process that will provide business effi ciencies and eff ectiveness in terms of the distribution network. Such effi ciencies are typically achieved by displaying the product on an organization’s web site and enabling the consumer to order it directly from t he web si te. W ith suc h re engineering, t he s teps a ssociated w ith t he w holesaler a nd t he retailer can both be avoided—although the intermediaries can be the technology service providers and content managers (Unhelkar and Ginige, 2010).

However, the third process model, shown on the right in Figure 5.1, is aiming for yet another alternative. Ā is r eengineered process is effi cient and eff ective f rom a c ost a nd t ime v iewpoint, and a lso from a c arbon viewpoint. For example, the third process model will aim to c ompletely eliminate t he E -intermediaries. Cu stomer d riven reengineering w ill optimize collaborative busi- ness processes to eliminate steps that were required only because of lack of alternative technologies (Unhelkar e t a l., 2 009). L ocation-sensitive m obile te chnologies c an i mprove t he c arbon p erfor- mance by eliminating intermediary steps that result in carbon. Ā e premise here is that if the same process goal is achieved with fewer steps, the end result would be a carbon-effi cient process.

Green metrics help in u nderstanding t he e ff ects of reengineering. For exa mple, green reengi- neered process can be measured for the total carbon content of the production process, the carbon generated by customer searches, and the overall carbon produced in ordering, packaging, and dis- tribution to t he consumer. Ā e closeness of effi ciency and eff ectiveness with carbon reduction has equal impact on cost reduction. Ā e resultant quality, end-user experience, and carbon reduction would all come under the umbrella of BPM. As Nott (2010) succinctly mentions, increasing aware- ness of the environment by businesses has also opened up the opportunities for businesses to use the BPM approach to model, measure, analyze, and mitigate the carbon impact of business activities.

Green BPM includes f undamental changes to t he processes and their ongoing management. Ā e change to the processes is that Green BPR aims for a dramatic drop in the carbon emissions by a combination of process changes and systems (technology) support. For such Green BPR ini- tiatives, carbon can be used as an important performance measure, together with contemporary measures of performance, such as cost, quality, service, and speed. Measures that support carbon- related performance provide required justifi cation as well as proof of success for process optimiza- tions. BPM can thus be considered as a vital key to the overall green business strategy and specifi c player in the process dimension of green enterprise transformation.

BPR initiatives lead to customer-focused processes whose end-goal is to achieve customer satis- faction rather than create hierarchical reorganization. Serving a customer effi ciently and providing an en hanced c ustomer e xperience re duces w aste a nd t herefore re duces c arbon. A n e ffi cient and optimized supply chain will also reduce the organization’s carbon footprint.

In addition to lean and reengineering, it is also worth considering TQM (total quality manage- ment) and its impact on the green process dimension of an organization. TQM brought about signif- icant changes to the way an organization operated—imposing discipline and quality consciousness to the organizational processes. Ā e resultant improvement in quality leads to reduction in rework. Ā is reduced rework can be directly correlated with reduction in carbon. A process that achieves its goal by a si ngle at tempt for e ach process c ycle i s, by i mplication, going to g enerate less c arbon a s compared with the same process attempted more than once for a pa rticular cycle. In other words, a process c ycle w hich needs to g o ba ck a nd forth to a chieve its business g oals t hrough a dditional reworks w ill not be very e ffi cient a nd w ill generate more c arbon. A h igh-quality process t hat gets the work done right in fi rst attempt will reduce its carbon content and increase the user satisfaction.

Green Business Process Management ◾ 159

Green Processes: Individual, Organizational, and Collaborative Figure 5 .2 sh ows t he va rious l evels o f p rocesses w ithin a n organization a nd t heir c orresponding ke y f actors. Ā es e are the individual, organizational, and collaborative processes that need to be considered in detail during GPR. Changes made can be either tactical (bearing immediate results) or strategic (long- term results). In general, individual processes tend to be tactical and tend to provide quick-wins, such as individuals switching- off t heir c omputers when not in u se. Changes to c ollaborative processes ten d to de liver l onger-term re sults. M odeling a nd optimization of the collaborative processes requires more time and eff ort and include more players and multiple systems.

Ā ere is a need to understand and relate the core processes as well as peripheral activities of the organization to the corresponding carbon contents. Modeling and optimizing core processes from a carbon perspective has higher risks than peripheral. For example, a hospital has its core compe- tency of treating patients. A hospital is often associated with pharmacies for dispersal of medica- tions and pathology laboratories for conducting a su ite of tests on patients. Ā ese pharmacy and pathology processes are closely supporting the core processes dealing with treatment of patients. Ā e core and the peripheral or supporting processes need to be modeled, measured, and optimized from their carbon perspective. For example, a hospital cannot aff ord to modify its patient-related core processes even if they are carbon-intensive if they increase the risks to the patient. Ā ere fore, each step within the process has to be studied before it is changed or eliminated.

Table 5.2 summarizes these types of processes and also lists the key factors (shown in Figure 5.2) that a re i mportant i n h andling t he c arbon a spect o f t hese p rocesses. P rocesses c an va ry w idely

Reengineering of business process to reduce their carbon contents has to happen at three levels: individual, organizational, and col- laborative. These levels tend to be increas- ingly strategic, taking longer time and greater effort as the business moves from individual processes through to depart- mental- and organizational-level processes. Collaborative processes cut across multiple organizations and systems—making them even more challenging to be reengineered in the context of carbon reduction.

Collaborative Green Processes

Forums

Portals

Standards

Organizational Green processes

Policies

Rules

Individual Green Process

Attitude Training

Retain, Remove

Optimize

Model

Rank

List

Figure 5.2 Individual, organizational, and collaborative green processes and their reengineering.

160 ◾ Green IT Strategies and Applications

depending on their importance, their technology support and the end-goals they achieve for the organization. Ideally, p rocesses n eed t o b e i dentifi ed a nd m odeled f rom en d-to-end. I n re ality, especially for large businesses, there will be layers within processes leading to the idea of compos- ite p rocesses—that i s p rocesses co ntaining s ubprocesses a nd s ubprocesses co ntaining a ctivities. Furthermore, the business rules embedded within the business processes also need to be addressed in Green BPR. For example, existing business rules a ssociated with, say, a c ash withdrawal pro- cess that requires two forms of identifi cation will have to be adhered to irrespective of its carbon content. Ā e manner in which the rule is implemented (e.g., matching of signatures with stored electronic si gnatures, o r va lidation o f p in-codes) c an b e o ptimized b y m odeling, s tudying, a nd changing the activities of the process.

During a Green BPR exercise, careful evaluation of all these business processes at individual, organizational, and collaborative levels within the organization needs to b e undertaken. During this e valuation, t hese p rocesses a re l isted, r anked ( prioritized), m odeled, o ptimized, a nd e ven- tually, either retained or eliminated. Ā ese steps, as applicable collectively to a ll processes in the organization, a re shown on t he right in Figure 5.2. Ā ese steps, in terms of Green BPR, c an be further described as follows:

Listing ◾ —of all processes within an organization. Ā is is an initial list, which will be refi ned as this green transformation exercise proceeds. Ā is list can be created based on the value creation of the organization and which can be categorized into primary, secondary, or supporting pro- cesses based on major functions of the organization such as production, inventory, supply chain, customer relations, fi nance, a nd H R. E ach g roup of processes c an a gain h ave levels, suc h a s end-to-end processes, subprocesses, activities, and tasks. Each process within the list can have a description of what it provides or which goal of the organization is served by the process. Ranking ◾ —of the processes within the process list can be undertaken based on the carbon- criteria. Ā us, while normal BPM exercises list the processes with criteria such as their costs and eff ectiveness, in Green BPM, t hese processes a re a lso ranked ba sed on t he a mount of estimated carbon they produce. While this estimation can be uncertain in the fi rst instance, still a s t he organization proceeds w ith its Green BPM e xercise, it c an e asily re evaluate its carbon estimates. Ā is r anking i s meant to p rovide a n u nderstanding of w hich pa rticular processes should be given highest priority in terms of green reengineering.

Table 5.2 Green Process Categories and Their Carbon Impact

Green Process Categories

Key Factors That Infl uence Carbon Comments

Individual Attitude, Training Personalized processes are infl uenced by attitude and training. Motivation of the individual may be based on personal value system, personal reward, and growth.

Organizational Policies, Rules, KPIs

Dynamic creation and management of business rules that optimize processes. Metrics are crucial to demon- strate the ROI on investment for green enterprise.

Collaborative Portals, Forums, Standards

Collaborative processes transcending organizational boundaries. Portals containing green knowledge, regulations across regions.

Green Business Process Management ◾ 161

Modeling ◾ —process reengineering requires accurate modeling of those processes. If an orga- nization h as a lready u ndertaken a B PM e xercise, p rocess m odels fo r a ll m ajor p rocesses should be available. If not, the green transformation project can start by modeling the pro- cesses that are ranked high in the previous step. Process modeling in itself is a vast topic; however, here it has been discussed within the narrow context of Green BPR. Ā e (Unifi ed Modeling L anguage) U ML ( particularly i ts u se c ases a nd a ctivity g raphs), u ser s tories, BPMN (b usiness p rocess m odeling n otation), a nd ( Integration D efi nition) I DEF a re a ll well-known techniques for process modeling. Any of these techniques, or their combination, can be used for modeling of processes. Optimizing ◾ —this s tep i s t he s tudy o f t he p rocesses t hat a re m odeled f rom t heir c arbon impact. Ā us, e ach activity w ithin t he process model c an be studied a nd t he c arbon gen- erated within that activity ascertained. Ā en, t hat a ctivity c an b e m odifi ed to reduce its carbon, supported by technologies and systems to a gain reduce its carbon, or eliminated if found to be unnecessary. Ā e optimization of processes i s a subs tantial pa rt of t he Green BPM exercise and has to be taken in coordination with other dimensions of the organization (for greater details, see Chapter 9 on green business transformation). Retaining ◾ —processes that are modeled and optimized will reduce their carbon contribution. Ā ese are the processes that can be retained and placed in a continuously optimized mode. Ā ese processes will also be the core business processes of the organization that have to b e maintained in t he best possible way. Ā erefore, for processes t hat h ave to b e retained, t he rankings will be high and the optimization process will be iterated two to three times. Removing ◾ —the BPM exercise will also identify processes that are either redundant/dupli- cated or are so excessively carbon ineffi cient that they have to be replaced. Ā ese are the pro- cesses that will be removed from the suite of business processes. Ā e impact of their removal has to be studied across all other dimensions before processes are removed. In practice, it is also discovered that some processes, typically manual processes, that were being undertaken without total awareness on the part of the rest of the organization, will get eliminated. Ā e informal processes, however, a re t he m ost d iffi cult to eliminate as they don’t have proper process models and supporting technologies.

Green BPM and Standards Green BPM can be carried out in a number of ways, and using diff erent to ols a nd te chniques. I nnovation i n BPR i s a s ynergy of business process thinking and corresponding tools and tech- niques. K en O rr ( 2007) h as de scribed t he c oncepts a nd s trat- egies in volved in b usiness p rocess inn ovation in cluding t he major threads of business process thinking. Ā is discussion also includes technical approaches, such as service oriented architec- ture (SOA) that are closely intertwined with BPM. Ā e relation- ship b etween SO A a nd B PM b ecomes m ore i mportant i n t he green en terprise spa ce a s c hanges to p rocesses to m ake t hem green cannot be brought about independent of the information and enterprise a rchitecture. Michael K . Guttman a nd John H. Parodi h ave a lso o utlined i n t heir Cu tter a rticle t he p otential convergence of the BPM, SOA, and MDA paradigms. Ā is con- vergence leads to e ffi ciency and eff ectiveness, but a lso business

BPR involved use of technologies to reor- ganize the business along process-lines that would enhance the business performance multiple times. Green BPR uses the same principles of BPR to explore the possibility of reduce carbon contents of the organization in multiples. This multiple reduction in carbon is to be achieved not merely by optimizing the existing processes but also by creating a new business architecture that may not need all of the existing processes. Review of busi- ness rules, use of systems and applications, and encouraging customers to be a part of this initiative, GPR can make substantially effective and effi cient use of organizational resources. For example, with Internet-based processes, not only can queuing times in a line can be reduced but the queues them- selves can be given up, thereby reducing the overall carbon content of the processes and the footprint of the organization.

162 ◾ Green IT Strategies and Applications

agility. Since each of these characteristics are important from a g reen perspective (as highlighted in Table 5.1), t hey provide t he re asons for Green BPM/Green SOA. Green SOA i s d iscussed i n greater detail in Chapter 6.

Green BPM remains a su perset of Green BPR. Excellence in Green BPM is based on under- standing and application of the reengineering and process management concepts to the organiza- tion but with the focus on carbon reduction together with cost reduction.

Viewing the organization as a whole including its people, processes, and technologies is the key to applying Green BPM in practice. Figure 5.3 shows various aspects or layers of an organization that a lso have their own processes. Ā e end-user is shown accessing the device, which in turn is linked to a presentation process. Ā is is then supported by the business or system level processes. Ā e business processes are supported by applications, corresponding data warehouses, and eventu- ally the technical infrastructure such as data servers and communications networks. Each of these technologies a nd p eople w ithin t he p rocesses a re a ff ected d uring G reen B PM e ff ort. Ā is is s o because a comprehensive Green BPM is a combination of technology-enabled but business-driven process m anagement. Figure 5 .3 a lso sh ows a nother i mportant a spect o f G reen B PM—that o f application and use of standards for process improvement, governance, and even project manage- ment. Following are the important aspects of the use of these standards in Green BPM:

TQM, K aizen, a nd Six Sigma provide standards a nd techniques to o ptimize a nd improve ◾ business pr ocesses. Ā is will result in improvement in quality of product and, thereby,

Data Servers

Layers & Protocols

T ec

hn ic

al -B

us in

es s

Security; Availability; Authentication

Devices

Process

Applications

Data Warehouses

Hardware & Operating Systems

Networks

Presentation and Personalization

CoBIT, ITIL

Six Sigma, Kaizen, TQM

Prince2, PMBOK

Processes are linked to Devices, Applications, and then their effect

Is felt in the Data Warehouses. Eventually the Data Servers and

Network layers are affected.

Bu sin

ess

Go ve

rn an

ce

Pr oje

ct

M an

ag em

en tBusiness, System

Software; Service Oriented

Figure 5.3 Applying business, governance, and project management standards to green business processes.

Green Business Process Management ◾ 163

improve organizational performance. Ā e business effi ciency techniques arising from these quality management approaches can also be used to i mprove the carbon credentials of the organization. Effi cient business processes may also create opportunity to produce greater quantity of goods ◾ resulting from improved production capacity. However, care has to be taken to ensure that improvement in production does not dent the green credentials of the process. Customization a nd p ersonalization o f p roducts to su it t he dem ands o f c ustomers i s t he ◾ result of process reengineering. Once again, care has to be taken to ensure that personaliza- tion does not lead to addition of carbon in the process. Reengineering of processes also results in optimizing the internal organizational structure. ◾ Ā is includes rearranging and repositioning people. Communications, together w ith IT, has lead to t he customer being able to e ff ectively cre- ◾ ate his/her own product a nd service t hat is tailored to t he specifi c need; dynamic creation of products and services is the result of the Internet-based communications that has to be factored in the Green BPM. Knowledge m anagement en ables ke eping t rack o f c ustomer p references; a nd n ow i t c an ◾ be u sed to m anage g reen p references o f t he c ustomer a nd t he g reen p erformance o f t he processes. Integration of processes is facilitated by integration of underlying applications and systems. ◾ Integrated processes off er tremendous opportunities for customers to fulfi ll their specifi c needs. At the same time, such integration also creates opportunities for overall carbon reduction. Outsourced p rocesses a re a nother e xample o f t he o pportunity to re duce o verall c arbon ◾ emissions. Processes of the outsourcing vendor are usually optimized for a specifi c purpose (Unhelkar, 2008), resulting in carbon effi ciency. Knowledge a bout t he c ustomer, su ppliers, a nd t he m anufacturing process c an b e u sed to ◾ strategically organize the manufacturing, call center support, and other assets of the organi- zation in order to derive maximum green potential.

Green BPM cre ates opportunities to a llow u ser-driven processes to i nfl uence t he overall c arbon footprint o f t he o rganization. Ā is infl uence i s ba sed o n i nputs a nd c omments m ade f rom t he customers regarding the business processes. Given an opportunity, customers are keen to provide input into the business processes which would help the organization improve its green credentials. Ā erefore, d uring g reen re engineering o f b usiness p rocesses to ward g reen p rocesses, c ustomers should not b e c onsidered a s “external pa rties” but, i nstead, i nvited to pa rticipate i n t he model- ing, o ptimization, a nd m anagement o f t he p rocesses. S ome o f t he i mportant c onsiderations i n customer-driven reengineering from a green perspective are as follows:

Setting up of regular c ommunications w ith t he c ustomers i n terms of t heir precise needs. ◾ Such identifi cation of the needs of the customers upfront enables their provision in an effi - cient and eff ective way, reducing the carbon overheads associated with unplanned provision- ing of customer requirements. Creating a nd en gaging c ustomer g roups t hat c an t hen pa rticipate i n t he g reen s trategic ◾ planning sessions as well as green policy formulation. Ā is can be done both face to face and electronically. An asynchronous discussion group resulting from an online collaboration can provide valuable input in to the green demands of current and future customers. Inputs from select customers can result in creation of training packages that facilitate ease ◾ of use of those processes by customers. Customer education and training can also result in

164 ◾ Green IT Strategies and Applications

eff ective use of green business processes that makes use of technologies and positive attitudes in reducing the carbon contents of those business processes. Ā is education and training can result in eff ective use of organizational processes. Measurement and feedback on customer service. Use of real-time metrics in terms of carbon ◾ associated w ith a b usiness p rocess (such a s w ith sm art m eters) c an re sult i n a i mmediate impact on customer behavior.

Information and communications technologies—especially applications and systems—can aid a nd support Green BPR. For example, t his help occurs when a pa rticular step in t he pro- cess i s automated by u sing a so ftware s ervice or a n etwork g adget. Such u se of te chnology i n GPR re quires c areful c onsideration b ecause e ven t hough t he i ntroduction o f a n etwork a nd communications te chnology w ill o ptimize t he p rocess, t here a re c orresponding c arbon o ver- heads i n t he n etwork a nd c omputing i nfrastructures. W henever re engineering e ff ort requires technical support, the potential of increased carbon generation exists and should be given due consideration.

Reengineering o f p rocesses a lso l eads to c hanges i n e xisting o rganizational p rocesses t hat demand a c lear u nderstanding of t he p otential d isruptions re sulting f rom t hose c hanges. Ā es e changes include the way the organization relates to the customers, the organization of the internal business, a nd t he p otential c hanges to t he o perating p latforms. G reen B PR c an i nvolve u se o f virtualization technologies or, alternatively, incorporation of a new technology in the process with the i ntention o f r educing i ts c arbon foo tprint. H owever, i n t he abse nce o f good m odeling a nd study of processes, t he likelihood of increased carbon exists a s most practical business processes are highly complex a nd have a ssociated infrastructure. Consider, for example, the way in which organizational s ervices a re m odeled a nd p rovided. Due to G reen B PR e ff ort, t he to tal s ervices off ered may be reduced. Alternatively, new green services might be introduced with corresponding infrastructure and support requirements. Ā erefore, even with the use of virtualization, risks asso- ciated with increase in carbon exist. Similarly, there are risks associated with customer satisfaction if only carbon performance is kept in mind during Green BPR.

Careful weighing of every green process optimization needs to be made to consider the tech- nology-process ne xus. Performance of I CT a pplications ne ed to b e s tudied by bu siness pr ocess modelers in the context of its satisfaction rating from the customers. Addressing the risks associ- ated with the GPR is vital in its success.

Green Business Analysis During a ny discussion of green business processes, one needs to c onsider the role of business analysis activity, including the gathering of business requirements, understanding and model- ing processes, process a nalysis a nd optimization, a nd te sting prior to dep loyment. Ā e green business process m odeling a nd t he role of a G reen business a nalyst ( BA) h as b een d iscussed succinctly by Beal (2011). Ā is role of a Green BA can provide analytical help and support for green business process modeling. BA is the role that owns and models the requirements of the project. Ā is is particularly so in a software development or maintenance project. Green BA is i nvolved i n u nderstanding a nd do cumenting t he u se c ases ( for e xamples o f u se c ases, s ee Chapter 7). Ā e BA is also responsible for working with the key business executives and users to de termine t he g oal a nd e xpectation o f t he b usiness p rocess. Ā ese exp ectations a re docu- mented b y t he BA w ith re ference to t he te chnical c apabilities o f t he I T so lution. Ā ere fore,

Green Business Process Management ◾ 165

the BA i s in an excellent position to s tart incorporating green business goals in the modeling of b usiness p rocesses. A g reen-conscious pa rticipation o f a BA i n t he s ystem re quirements lifecycle c an re sult i n n ew b usiness p rocesses t hat a re o ptimized r ight f rom t he b eginning. A G reen BA c an p lay a d ual ro le: F irst, m odeling re quirements fo r a G reen I T p roject a nd, second, modeling existing processes for their optimization from a g reen perspective. BA s can ensure alignment of a Green IT technical solution (e.g., CEMS) with environmentally respon- sible bu siness s trategies. Ā e Green BA i nvolvement i n a p roject promotes a n u nderstanding that even if certain business requirements are important to a stakeholder, they may not be still necessarily desirable in a solution if they are not aligned with the need to generate least carbon. For example, if a Green IT project facilitates the generation of ad-hoc reports, then the daily report generation can be excluded from the solution as that will save potential wastage of paper or wastage of system resources.

A Green BA will also aim to create fl exible green processes. Similar to any normal business pro- cesses, the green business processes should also be fl exible and continuously evolving (Hercheui, 2011): Ā is fl exibility allows the processes to be adaptable to diff erent contexts in which they are being used. Changes to green business requirements are rapid and should be incorporated imme- diately in the green business processes.

Furthermore, t his fl exibility a lso caters for the users who have varying levels of k nowledge about sustainability depending on their own personal context. Considering the urgency of envi- ronmental issues and the need of fi nding solutions that foster sustainable development, Green IT should be adaptable for the use of as many people as possible (Hercheui, 2011). Green BAs cater fo r t he m odeling a nd i mplementation o f t hese va rying re quirements o f g reen b usiness processes.

Green BA s a lso f acilitate t he d iff usion o f k nowledge o n su stainability. L ater, i n Chapter 8 , there is a d iscussion on t he importance of t he u se of I T tools a nd technologies for creating a nd promoting green awareness across wide cross-section of society. Green BAs incorporate channels within the processes to foster creation of green groups and spread corresponding green knowledge amongst them.

Green Requirements Modeling One o f t he m ajor re sponsibilities o f a G reen BA i s to u ndertake m odeling o f re quirements fo r a g reen p rocess o r s ystem. Ā is re quirements m odeling c an b e c onsidered a s a sub discipline o f systems en gineering t hat i s c oncerned w ith t he b ehavior, q uality at tributes, a nd a lso te chnical constraints. Requirements modeling is widely recognized as both a challenging aspect of software development, as well as a crucial one, because it lays the foundation for all the subsequent project work (Wiegers, 2006). Examples of functional requirements of Green IT systems are provided in Chapter 7. W hile t hey a re in t he form of u se c ases, Green BA c an work to m odel requirements using other approaches such as user stories, scenarios, and simple fl owcharts.

Green p ractices c an a ff ect re quirements re lated to h ardware, so ftware, a nd b usiness p ro- cesses. A requirement may establish, for example, a solution that must not only fulfi ll business goals, but also measure and report energy improvement over previous generations. Approaches such a s s erver c onsolidation a nd v irtualization, s torage v irtualization, C loud c omputing, a nd power m anagement, a mong o ther g reen-related te chnologies, c an h elp ICT so lutions b ecome more e ffi cient, fl exible, re silient, a nd en vironmentally f riendly w hile e conomical to o perate (Murugesan, 2008).

166 ◾ Green IT Strategies and Applications

Green requirements modeling keeps these technologies in the background as it pursues green business g oals. BA s working for c orporations i mplementing g reen practices b ecome re sponsible for de fi ning requirements a nd validating solutions t hat ta ke advantage of t hese a forementioned advancements in technologies. Green requirements modeling can be divided in two major parts— functional and nonfunctional (or operational).

Functional require ments, t he m ost we ll-known t ype o f so ftware re quirements, de scribe t he behavior t hat t he software w ill h ave a nd t he i nformation t he solution w ill m anage. Functional requirements a re a ssociated w ith t he required behaviors a nd operations of a s ystem, defi ning its capabilities in terms of actions and responses. Functional requirements are frequently captured in the form of use cases (Unhelkar, 2005). Green IT frequently impacts functional requirements as a consequence of new procedures or business rules emerging from corporate environmental policies and industry standards.

Consider a c orporate g uideline i ssued to h elp re duce pap er rep orts b y en couraging o nline reporting. W hile de fi ning t he re quirements fo r a n ew ap plication w ith rep orting f unctionality, the BA m ust sp end t ime i nvestigating t he c apabilities n eeded i n t he s ystem to c onvince u sers (system users and indirect users, such as managers and customers who do not work directly with the system, but need access to its outputs) to stop printing, and read from their computer screens instead. In order to achieve this objective, functional requirements may be added to the software specifi cation, to facilitate tasks related to reading and distributing online reports to their intended audiences.

Ā ere are requirements, however, that go beyond system behavior. Ā ese requirements describe the p roperties a nd at tributes o f t he so lution a nd a re re ferred to a s nonfunctional requi rements. Examples of such requirements include availability, performance, usability, portability, robust- ness, e tc., a nd t hey p rovide t he de sign c onstraints fo r t he p roject ( e.g., te chnology o r re gula- tory limitation). Green IT policies typically add nonfunctional requirements to software projects, imposing new demands in terms of quality attributes that become necessary or desirable, and also establishing new constraints.

Take, for example, a company adopting a mechanism to control all monitors and computers, so t hey c an b e p laced i nto a l ow-power c onsumption m ode (such a s shutdown, h ibernation, or standby) when they are not being used. Imagine that this company is also building an application that a few users will access via their PCs to update the state of alerts aff ecting a core business ser- vice. Ā e BA in charge of capturing the requirements for the alert system would have to investigate the potential impact of a delay caused by the need to recover the computer from its energy-saving state before the application could be used to update the status of an alert. Ā e BA would also be responsible for discussing with the stakeholders the expected system behavior under these circum- stances. A decision could be made stating that a user returning to her desk after taking care of an event that triggered an a lert should be able to a ccess the application within 5 s econds or less, to post an update. As a consequence, a nonfunctional requirement could be created establishing that “once an alert is issued, and until it is resolved, the application will prevent the workstation from going into any energy-saving state that requires more than 5 seconds to reverse.”

Corporate environmental practices, sustainability policies, regulations, a nd contractual obli- gations to meet environmental standards may impact both functional and nonfunctional require- ments of ICT applications. Green BA tasks relates to enterprise analysis, requirements elicitation and analysis, and solution assessment and validation in determining the green optimal solution to fulfi ll the business needs. As such green policies have to deal with procurement, operations, appli- cation design, and/or disposal of computing resources, and establish the necessary foundation for defi ning the scope and requirements of ICT projects.

Green Business Process Management ◾ 167

Green IT Governance Green p rocess m anagement m atures a s p roper b usiness g ov- ernance w hich a lign w ith p erformance g overnance, p roject governance, change governance, and IT governance and con- trol i s applied to i t. A n ideal w ay to do t his i s to i ncorporate green aspects within the existing governance structure within the organization. Ā is c an t ake sh ape of m odifying t he busi- ness p rocess a rchitecture, ba lance sc ore c ard, a nd b usiness policies fo r g overnance. Chapter 3 d iscussed t he cre ation o f green business policies out of t he organizational strategies for carbon reduction. Ā ese policies, when translated in practice, dictate o rganizational c ompliance to ward a g reen o utcome. Ā is brings in the opportunity to update the corporate and IT governance standards a nd u se t hem for g reen c ompliance, see Figure 5.3. Governance standards bring together legislation, regulation, industry standards, contract agreements, and internal rules together in a synergy. Ā ese standards also provide the framework for BA to capture and defi ne requirements from varying sources within and outside the organization, on an ongoing basis that handle the compliance needs both at t he enterprise and project levels.

Green organizational policies require business rules. Ā ese business rules are either embedded electronically or followed manually. Ā us, these business rules have a w ide-ranging infl uence on both the manual processes used by individuals within the organization, and the software systems and a pplications w ith bu siness e mbedded bu siness r ules. W hether bu siness r ules a re e mbedded within t he ap plication so ftware o r n ot, suc h b usiness r ules s till h ave a b earing o n t he re quire- ments. Ā erefore, there is a need to correlate policies to rules to requirements. Table 5.3 provides an e xample o f so me g reen b usiness p olicies t hat a re pa rt o f t he u pdated I T g overnance, w hich translate into business rules and requirements.

Table 5.3 indicates how a governance standard is translated into policies and practices through business rules. Ā ese business rules also apply to external business processes, thereby ensuring that the external and, particularly, collaborative business processes are also carbon compliant. When it comes to buildings, data centers, communications, and networks infrastructure (as were discussed in Chapter 4 ), t he m ost c ommonly u sed g overnance s tandard i s t he I nformation Technology Infrastructure Library (ITIL) also known as Infrastructure Management Service (IMS). Ā e fi ve core publications of ITIL (ITIL, 2009) are briefl y d iscussed b elow i n t he c ontext o f G reen I T process and management.

Service Strategy—provides guidance on explanation and prioritization of service provider and their customers’ investments in services (Addy, 2007). Ā e s ervice s trategy sh ould h ave so me “Green” f actor embedded i nto t hem a nd t his c an i nfl uence t he way i n which a n organizations IT services are provided, with green factor introduced, this is even more infl uential. Ā is service strategy infl uences the service providers as well as service consumers. Green business processes, in t his c ontext, c an be modeled t hrough u se c ases or u ser stories to d ictate t he r ules to b e fol- lowed i n t he e xecution of t hose processes. For e xample, g reen business priorities a nd technical estimations can be combined to ascertain the level and scope of services. As mentioned earlier in the context of interrelated standards, the service strategy of an organization can also be based on SOA and incorporate web services—which would, in turn, have embedded rules during service collaboration (Unhelkar, Ghanbary, and Younessi, 2009).

ITIL, as a best practice framework describ- ing an end-to-end service management environment can provide a signifi cant input into the business rules and policies related to Green IT. For example, green business rules can be embedded within ITIL’s service management. This would result in effi cient and effective management of IT services, application of green metrics to the services, and their internal and external reporting in terms of carbon contents. ITIL can help in mapping IT, business, and green strate- gies by bringing together the service goals policies, rules, and practices from each of them.

168 ◾ Green IT Strategies and Applications

Service Design—provides guidance on design of new or modifi ed IT services through a catalogue. Ā e design of each service can be based on the Green IT policies and practices, thereby ensuring that the systems and applications consuming these services have an implicit green angle to them. Customer input can be used in these service designs to ensure that they cater for the ever increasing demands of the customer for green services. Furthermore, green service designs will ensure that meeting the level of service expected is not counterproductive from a carbon perspective. Functional as well as nonfunc- tional (or operational) areas of services are handled here to reduce their carbon impact.

Service Transition—facilitates transition of a service to the operational area of the business with environmental c onsiderations i nbuilt i nto t hem. Ā is requires proper planning and controlled changes to the services. Ā is is a unit-level change to the overall changes in business processes of the organization with a delta change toward “Green.” Ā us, a service transition to a green service is made up of changes to the activities that make use of technical web services to reach the process goals. Formal service transition based on ITIL will now also bring in green business rules that will improve the overall carbon performance. Ā ese measures can additionally be used in tracking and maintaining services.

Table 5.3 Business Policies, Rules, and Process Requirements

Green Business Policy

Corresponding Business Rule Description Green Business Purpose

Carbon content of solutions cannot exceed current levels

All deployments must be preceded by the evaluate alternatives for reducing the solution’s total power consumption.

Ensures that the green solutions themselves are not carbon intensive. Servers and data center infrastructures should not add to the carbon footprint that exists.

Apply automation in all power management

Power management systems to be used in all organizational environments.

Prevent waste of energy by shutting off, hibernating, or putting systems on standby. Centralized device management is of immense value here.

Reduce data center carbon

Make extensive use of Cloud computing to shift the data center activities and resources.

Effective reduction in emissions due to consolidation of data center resources on the Cloud.

Increase carbon awareness in products and services

EPEAT style labeling of products and services resulting from the organization.

Carbon value calculations appearing on products and services can assist the customers in choosing products that are low in carbon.

Business processes to be carbon responsible

Introduce KPI for all major activities and processes in the organization; apply metrics to measure process outcome for carbon.

Assists in understanding, benchmarking, and improving green performance for each iteration of activities and processes.

Reuse and recycle

Reuse equipments through their entire lifecycle, then recycle.

Reduces not only emissions during the life of the equipment, but also reduces electronic wastage toward the end of useful life.

Green Business Process Management ◾ 169

Service Op eration—is w hen t he s ervice h as b ecome o perational a nd c an b e c alled “ Green Service” when the environmental considerations are taken into eff ect. Ā ese are typically the web services based activities of a business process and, therefore, have to be measured for their carbon impact during operation. Ā e ITIL guidance in monitoring the service during operation including recording faults during operation can be extended to calculate its carbon impact. Identifying and fi xing service failures during operation and quickly restoring service operation to a user are a part of I TIL a nd, t herefore, c an be u sed to m easure, u nderstand, a nd i mprove t he c arbon em issions resulting from those services.

Continual Service Improvement—provides guidance on the things that need to be controlled and m easured fo r i mproving s ervice q uality, pa rticularly f rom a g reen b usiness p erspective. Continual S ervice I mprovement i n I TIL de als w ith en gaging I T a nd b usiness m anagement i n an ongoing dialog. Such dialog would also provide measurements for service availability, reliabil- ity, and performance and reporting. Ā is ongoing improvement and maintenance of services can produce highly optimized services with the bare minimum carbon footprint. Service orientation should enable developers to produce ongoing improvements by isolating and updating services on a “need” basis so as to have minimum carbon losses.

Green Business Processes—Incremental Complexity Figure 5.4 shows how t he four d imensions of g reen business t ransformation (economic, te chni- cal, social, and process) infl uence the formulation of green business strategies and policies. Ā es e policies and their corresponding rules are then brought to bear on the processes of the organiza- tion. E arlier i n t his c hapter, t hese p rocesses were c ategorized a s i ndividual, o rganizational, a nd collaborative. Ā is categorization of processes is based on original work on processes by Unhelkar (2003) and later by Unhelkar and Murugesan (2010), wherein a fi ner categorization is attempted. Figure 5.4 hints at t he increasingly complexities of these processes and a lso indicates that at t he operational and collaborative levels, the application of lean and agile principles will support busi- ness sustainability.

Green Operation

Green Transaction

Green Informative

Green Broadcast

In cr

ea si

ng C

om pl

ex ity

Economic

Technical

Process

Social

Corporate Business Strategy

Green Business Strategy

Green Collaboration

Lean & Agile

Figure 5.4 Green business strategy drives incrementally complex GPR.

170 ◾ Green IT Strategies and Applications

Figure 5.5 further specifi es the increasing complexity of these green processes. Ā es e processes are also discussed again, later in this chapter, in the context of mobile green processes.

Broadcast processes—Ā ese are easiest processes to understand, model, and optimize when ◾ they are the one-way broadcast processes typically used by the organization to promote and advertise their products. Ideal way to reduce the green contents of these broadcast processes is b y re ducing t he “ bells a nd w histles” a round t he a ctual c ontents, need-based broadcast, and keeping the contents direct and short. Informative processes—Ā e green a spect of t his informative c ategory comes from t he fact ◾ that t he re ceiver o f t he o utput o f t his i nformative p rocess i s k nown to t he o rganization. Ā ese informative processes provide data on carbon emissions per day, per asset, and so on. Such a receiver can also contribute, albeit in a small way, to the reduction in carbon by only seeking the bare minimum and necessary information. Transactive processes—Typically called the electronic commerce processes requiring a 3-way ◾ interaction between t he vendor, t he customer, a nd t he pay ment facility (such a s PayPal or Visa cr edit). Ā e c arbon c ontent o f a t ransactive p rocess i s h igher t han t he p revious t wo processes because multiple parties are involved and the transaction is stored electronically in a secured and also mirrored format because of its higher value (including the corresponding legal obligations). Ā is increases the number of “bits” to be stored on the servers and, there- fore, the overall load on the data servers of the organization. Operative p rocesses—Ā ese p rocesses a re o f m ore c omplexity a nd de al w ith t he i nternal, ◾ operational aspect of the organization. Ā erefore, they include processes such as HR, inven- tories, and time keeping. Ā ese processes a lso include the supply chains, the procurement,

Collaborative Processes

Transactive Processes

Informative Processes

Collaborations between External Businesses

Processes; Web x2.0 & Beyond

Internal Processes Transformed to Ensure

Efficiencies (e.g., Inventory, HR, Finance)

Commercial Transactions; Usually Three-way Payment

Gateways; (e.g., CRM, Supply Chain, Marketing).

Check Agility

Directed at Specific Users; one- way communication with Low Security; Check Necessity and

Effectiveness for Green

Green Business Processes

One way communication to large group of people and

users. Check necessity (e.g., Advertisement)

In cr

ea si

ng C

om pl

ex ity

Broadcast Processes

Operative Processes

Figure 5.5 Increasing complexity of green processes.

Green Business Process Management ◾ 171

and e ventually, t he d isposal p rocesses o f t he o rganization. Ā e c arbon c ontent a ssociated with these operational processes can be signifi cant, as the organizational inventory of equip- ment and materials comes under these processes. Rules-based modeling and optimization is the only way to improve the carbon performance of the operative processes. Collaborative pr ocesses—When m ultiple or ganizations i nteract w ith e ach ot her t hrough ◾ collaborative web -based p rocesses, t he c arbon g eneration i s n ot o nly si gnifi cant, b ut a lso increasingly c hallenging to t race b ecause t he o rganizational b oundaries o f t hese p rocesses is extremely f uzzy. W hen collaborative business processes occur electronically through web services (Unhelkar, Ghanbary, and Younessi, 2009), the complexity is so phenomenal that it would be impossible to ascertain the true carbon content that can be attributed to single, par- ticipating organizations. Ā is is particularly true in ascertaining Scope-3 emissions, as in col- laborative processes organizational boundaries are fuzzy. So, it becomes diffi cult to ascertain whether the Scope-3 emission of one organization is actually a S cope-1 emission of another organization. In spite of these challenges, however, collaborative processes off er a unique per- spective in carbon savings. Ā is is so because, as discussed by Unhelkar and Tiwary (2010), collaborative processes have the potential for saving carbon, as they prevent reinvention of the basic business functions. For example, name and address can be sourced as a service from a third-party provider, thereby preventing the need to create the software to manage name and addresses in the systems of every participant organization in that collaboration. Ā is is an area of f urther i nvestigations a nd re search, a lthough c ollaborative processes a re a lso mentioned again, later in this chapter, in the context of mobile green.

Green Business Applications Figure 5.3, earlier in this chapter, depicted a mapping, or relationship of processes to devices and applications. Most green business processes will have to be supported by corresponding green systems and applications. Understanding this relationship between processes and applications is important as, during the BPM exercises, changes to the processes will require corresponding changes to those systems and applications that support the processes. Figure 5.6 shows this relationship and impact of g reen b usiness p rocesses o n c orresponding o rganizational l evel s ystems a nd ap plications. F or example, Figure 5.6 shows how the broadcast, informative, transactive, operative, and collaborative processes impact business applications such as—fi nancial management information systems (FMIS), enterprise resource planning (ERP), supply chain management (SCM), and customer relationship management (CRM). In addition to these applications, there are many more specialized and in-house developed custom applications that are industry specifi c, and that are aff ected by GPR.

Modeling Green Business Processes (UML, BPMN) Ā e m odeling o f p rocesses i s a cr ucial s tep i n p rocess o ptimi- zation. Ā ere a re fe w d iff erent w ays o f ap proaching p rocess modeling. H owever, i f m odeling o f p rocesses i s ba sed a round constraints, t hen i t n eeds to s tart f rom t he b usiness p rocesses architectural v iew o f t he en terprise a rchitecture—that i tself could be based on the value chain concept. In the case of Green BPM, the va lue at t he end of the process is not independent of

Green business applications require due consideration of modeling, quality of ser- vice (QoS) and documenting the goals. QoS is, in particular, important as it can not only enhance customer experience but, in many cases, legally binding. Most importantly, though, higher the QoS, lower would be the need to repeat the process, translating directly in reduction in carbon.

172 ◾ Green IT Strategies and Applications

the carbon generated. Ā erefore, all process modeling has to include carbon consideration at each step and for each process. Ā us, each process needs to be modeled in an optimized way, with mini- mum activities and tasks that relate to each other and that achieve the process goals with reduced carbon footprint.

Ā is modeling of processes c an b e u ndertaken w ith t he help of process modeling s tandards such a s t he U ML o r t he p rocess-specifi c n otations o f t he B PMN. Ā e m odeling n otations a re made available through process modeling tools (Unhelkar, 2003) and can be used in a team struc- ture wherein a group of BAs could be working in unison to produce and optimize process models. Examples o f s uch intense b usiness p rocess m odeling a ctivities a re p rovided in gr eater d etail in Chapter 7.

Quality of Service (QoS) and Green Business Processes While process models play a cr ucial role in Green BPM, they have to be also validated and veri- fi ed for their quality and their impact on the quality of services off ered by the organization. Ā e process models depict t he fl ow, or f unctionality of a pa rticular process or service. Ā e activities within the process are then optimized for their carbon content. However, an ever greater impact of these processes on the carbon footprint of the organization is through the expectations of the quality of service (QoS) of these processes. Apart from the functional accuracy of the processes, this QoS is usually the result of the nonfunctional or operational demands on the business pro- cesses. Organizations are generally involved in enhancing their QoS through varied eff orts at vari- ous levels within the organization. Ā is can include eff ort at optimizing processes through use of communications as well as knowledge management technologies.

Marketing/Sales

Customer/Partners/ Card Payments

Operational (Inventory) Organizational

(HR, Employees)

Portals/Standards/ SLA (International Law)

Collaborative Processes

Operative Processes

Transactive Processes

Informative Processes

Broadcast Processes

Gr ee

n

Pr oc

ess es

Sy ste

ms &

Ap pli

ca tio

ns

Im pa

ct

Figure 5.6 Relating green business processes to systems and applications.

Green Business Process Management ◾ 173

In a Green BPM, however, QoS is not enhanced entirely for the sake of customer satisfaction. In fact, the carbon content of enhancing a customer experience and, thereby, improving the QoS is a lso dem onstrated to t he c ustomer. Ā erefore, Qo S, i n a G reen B PM, i s n ow ba lanced w ith quantity of carbon (QoC) within the process. Finally, in the context of this discussion, it is worth mentioning t hat a n a ssumption t hat enhancing t he QoS will result in increased c arbon content may not be correct. Ā is is so because an enhanced QoS will result in less repetition and therefore less w astage. I n f act, en hancement i n Qo S h as a h igh p otential fo r re duction i n Qo C o ver t he entire life of the interaction of the customer with the organization.

Documenting Process Goals Processes can be measured for their effi ciency and eff ectiveness as described by Unhelkar (2003). When applied in the green context, each process has to b e measured for its carbon content. For example, the business process dealing with “cash withdrawal from a ba nk counter” has a c ertain carbon c ontent t hat i s ba sed o n t he a ctivities, t he p eople u ndertaking t hose a ctivities a nd t he deliverables produced. Similarly, processes in airlines, hospital, and insurance organizations have their corresponding carbon contents that need to b e measure. Later, in Chapter 7, use cases and activity graphs are discussed as a means of modeling business processes. Ā e UML diagrams are also relevant in measuring the carbon generation when they are executed.

Achieving Green BPM Figure 5 .7 shows t he en tire b readth o f f actors t hat n eed to b e considered in the Green BPM. Ā ese are as follows:

People k now p rocesses a nd e xecute p rocesses. Ā ey need ◾ to know the purpose and the passion to perform processes in such a way to achieve Green BPM goals. So it depends on how much people knows about green concepts and how they want to approach the envi- ronment that results in the success of Green BPM goals. Transport i s a subs tantial c ontributor to t he g reenhouse g ases. Ā e G reen B PM sh ould ◾ essentially reduce the need of transports while doing jobs. Although transportations is nec- essary for business, t he suc cess of Green BPM depends on how t he business processes a re re-engineered to reduce transportation. Facilities are essential for any business and these facilities should be rearranged to suit green ◾ business goals. Ā e Green BPM should facilitate to h ave a ny facility which could produce less carbon footprint during the business operation and in idle time. Development of product or service in any business is one of the core components of the value ◾ chain of the business. Ā e development processes should be carefully modeled so that the carbon footprint for the development of any product or service could satisfy the Green BPM goals. Production is a continuous work done in businesses which also add carbon footprint to the ◾ outputs. Ā e production processes n eeds much at tentions i n m odeling a nd o ptimizing i n terms of carbon contents so that the outputs will lead to lesser carbon footprint. Information is the most important part of any process. Ā e way of managing information is ◾ the key to achieve the Green BPM goals in any business. Information modeling, capturing,

Green BPM covers people, facilities, trans- port, development, production, informa- tion, and communication within and across an organization from a green perspective. These areas of Green BPM form a matrix with the individual, organizational, and col- laborative type of processes.

174 ◾ Green IT Strategies and Applications

presenting, a nd a nalyzing wo uld i mpact o n c arbon c ontent a s we ll a s i t c an p rovide t he knowledge of green status of the processes. Communication is one of the most important enabler for Green BPM. Eff ective communi- ◾ cation will pave the way to achieve Green BPM goals quicker and it can also reduce the eff ect of carbon footprint. So the Green BPM requires the use of communication factor eff ectively and effi ciently to achieve Green BPM goals.

Organization-wide GPR needs to c onsider processes in groups. Figure 5.8 shows an example of how business processes can be grouped as internal and external. Ā is enables creation of com- monly applicable green criteria to these processes. Ā e external group is made up of processes that require cooperation and coordination with business partners of the organization. Ā ere fore, this may b e a m ore c hallenging g roup to ap ply g reen practices to. Ā e s econd g roup, shown on t he right in Figure 5.8, is internal process group. Ā is group can benefi t by support from the employ- ees and unions within the organization. Ā ese are example groups—and in practice processes can be grouped in multiple ways to produce manageable chunks for green transformations.

Green Mobile Business Processes Unhelkar (2009, METM) has discussed the approach to i ncor- porating mobi le t echnologies i n t he bu siness pr ocesses of a n organization that is undertaking green enterprise transforma- tion. Ā is green mobile business was described in the context of the fo ur d imensions d iscussed e arlier i n Chapter 2 (economic, technical, process, and social factors) from their environmental- responsibility v iewpoint. Ā ese fo ur d imensions, w hich fo rm

Mobile technologies can be incorporated in business processes to improve their carbon effi ciencies through location-independence and personalization. This incorporation of mobility has to be in the manner of increasing complexity of those mobile pro- cesses—from mobile-broadcast to mobile- collaborative.

People (Attitude)

Transport (Inventory)

Facilities (Infrastructure)

Development (Design)

Production (Manufacturing)

Information (Analysis, KM)

Communication (Cloud)

Individual/Organizational/Collaborative

Figure 5.7 The Green BPM factors.

Green Business Process Management ◾ 175

the pa rt o f a ny en terprise t ransformation, a re a lso i ncorporated i n t he E RBS ( Unhelkar a nd Dickens, 2008). In this section, the discussion is on the eff ect o f e ach o f t hese d imensions o n green mobi le bu siness pr ocesses. Ā ese fo ur d imensions wo rk tog ether i n t he en vironmentally conscious approach of an organization and, hence, not a separate and isolated addition to the busi- ness. Ā e way in which mobile green processes are enacted by incorporation of mobility in to the business processes is a lso ba sed on t he increasing c omplexities of t he processes a s was d iscussed earlier. Ā ese a re t he b roadcast, i nformation, t ransactive, o perative, a nd c ollaborative b usiness processes. An understanding of this increasing complexity also provides opportunity, through the use of mobile technologies, to reduce corresponding carbon contents of these processes. Increasing complexity of transactions also implies an opportunity to reducing that complexity and, thereby, reducing carbon emissions in those processes.

Mobile-Broadcast—use of mobi le technologies enables sending of one-way information to ◾ a large g roup of people who may or may not be registered a s u sers. Such broadcast u se of mobility, fo r e xample, i s s een i n p roviding t raffi c fl ow i nformation to a g roup o f m obile devices in a particular area. Ā e opportunity to redirect traffi c during a congested period has signifi cant carbon connotations (as discussed by Bhalla and Chaudhary, 2011). Mobile-Informative—use of mobility provides the organization with the ability to provide ◾ environment-related i nformation to t he va rious s takeholders w ithin t he business. Ā ere is a p otential to c ollect c ontents o n c arbon em issions, tem perature l evels, a nd so o n, f rom the o rganization’s a ctivities, a nd di sburse t hem us ing m obile ga dgets. I nformative us age of mobility f acilitates re al-time update of t he benchmarks set by t he re gulatory bodies on acceptable levels of carbon emissions for specifi c industries.

Compliance

Business Partner

Management

HR

Finance & Accounting

Product Portfolio

Marketing Customer

Relationship Management

External Process Group—will require Cooperation from Partners/Customers

Inventory

Supply Chain

Management

Internal Process Group—will Require cooperation from

Employees, unions Interfaces

Figure 5.8 Grouping of “business processes” for green reengineering.

176 ◾ Green IT Strategies and Applications

Mobile-Transactive—usage i ncludes c ollection, c ollation, a nd rep orting o f en vironmental ◾ data with the use of handheld mobile as well as stationary but wireless devices. For example, the measurement of the temperature of a furnace or an engine can be conducted using wire- less devices. Ā is information is then further analyzed and used in order to manage, moni- tor, a nd c ontrol t he c orresponding s ystem. Transactive c apabilities o f m obile o r w ireless devices can thus be put to good use to measure and monitor carbon emissions and report on those em issions to i nternal management a nd e xternal regulatory bodies. Ā u s, transactive use of mobility has a greater opportunity to infl uence the environment positively, than the informative use of mobility. Mobile-Operative—usage provides opportunities for the organization to model and optimize ◾ its internal processes t hat w ill produce environmentally f riendly re sults. E xamples of such initiatives include management of people in a way that reduces their unnecessary movement, virtualization of teams to enable dispersed team members to get together without travel, and enabling internal inventory management processes in a way that reduces the burden on the environment a nd rep orting a nd optimization of t hese i nternal processes. Mobile te lecom- muting is a serious consideration for mobile-operative use by business, wherein workers need not be physically present at t he premises of the company. Ā e employees have an access to the en vironmentally i ntelligent s ystems w hich c an h elp t hem c arry o ut t heir d ay-to-day activities in an eco-friendly way. Mobile-Collaborative—where organizations are infl uenced by their business partner’s poli- ◾ cies and strategies toward green environment. Ā is infl uence results in a cluster or group of companies to have environmentally responsible policies that are not limited to the boundar- ies of a single organization. Instead, the mobile collaboration infl uences the entire “ecosys- tem” of companies that are together, dealing with each other using mobility. Collaborative environmental intelligence is also a futuristic topic that is discussed in Chapter 11.

Having t hus discussed t he gradually increasing complexity a nd infl uence of mobility on t he environment, in this section, the four dimensions are also discussed from the environmental- mobile context.

Environmental–Economic Mobile Use Ā e economic i nfl uence of mobility needs to b e c onsidered here i n ter ms of its relevance to t he environment. F or e xample, t he e conomic re asons fo r t ransitioning to m obile b usiness c an b e extended a nd d iscussed i n ter ms o f t he e conomic re asons fo r t ransitioning to a nd m anaging a sustainable mobile business. Ā e important economic factors of costs and competition for mobile transitions have a correlation with the environmental issues as well. Focusing on the environmen- tal issues in the short term tend to occasionally give an impression that they will incur costs (such as costs of recycling gadgets or costs associated with modifying the mobile business processes). In the su stainable a nd long-term t imeframe, however, t hese c osts t ranslates to goodw ill a nd hence customer retention and growth. At an individual level too, economic attitude translate into envi- ronmental attitude (such as, for example, not throwing away old, out-of-date, and fashion mobile devices but reusing those mobile devices or their parts).

Apart from the mobile gadgets, there are also costs associated with creating and implementing environmental strategies and costs associated with maintaining them through environmental pro- grams within the organization. Furthermore, economic considerations need to be brought in with collaborating mobile businesses—in terms of their own budgets and willingness to spend money

Green Business Process Management ◾ 177

on environmental issues. Organizations are keen to promote their “green awareness” by providing part of their proceeds toward green activities. For example, the Green broadband from iPrimus, is a green initiative that, based on less than a dollar per month extra, encourages the customers and the service provider companies to participate in tree plantation activities that can compensate for the greenhouse emissions (www.iprimus.com.au).

Environmental–Technical Mobile Use Millions of new mobile phones are bought each year worldwide under various reasons including the social reasons for the adolescent market (Unhelkar, 2009, METM). Mobile gadgets are envi- ronmental c hallenges both during m anufacture a nd at d isposal ( Unhelkar a nd Dickens, 2008). Mobile g adget m anufacturers c an p lay a m ajor ro le i n re ducing t he en vironmental i mpact o f mobile products by ensuring their products are free of hazardous materials such as brominated fl ame retardants (BFRs), PVCs, a nd heavy metals l ike lead, c admium, a nd mercury. B eginning with their design, manufacturers can improve reuse and recycling of their mobile products, includ- ing the use of eff ective and responsible take-back and recycling that can be put to good use by the users. Mobile phones that can be recycled more eff ectively at end of life are more environmentally friendly than the ones that cannot be recycled. Regulatory approaches for product reuse and recy- cling can also be used.

Environmentally re sponsible mobile businesses apply t he c oncept of reu se to t he de sign a nd distribution of mobile gadgets as well. Technical designers seek to create mobile gadgets which will have m inimum i mpact on t he environment. Ā is environmentally re sponsible de sign of mobile phone can reduce the a mount of the materials used, reducing the impact of those materials and thereby increasing the effi ciency of t he use of t he mobile phones with t he customers. Nokia has released a m odel c alled “ 3110 E volve” w hich i s c laimed to u se “ bio-cover”—the c asing o f t he phone, w hich i s c omposed o f 5 0% re cycled m aterial a nd pa ckaging m ade f rom 6 0% re cycled material ( http://www.compareindia.com). F urthermore, ac cording t o t he s pecifi cations o f t he phone, this Nokia phone model also has a high-effi ciency charger, as well as an eco-friendly user interface. O ther at tempts i nclude t he “S unfl ower P hone” b y G reen M obiles i ntroduced i n t he United K ingdom t hat claims to b e biodegradable a s it has a b uilt-in plant seed which will grow once the phone is planted in the ground.

In addition to the mobile devices, there is also a need to consider environmental issues through optimized use of other mobile hardware such as base stations, transmitters, and computer servers that support mobile applications. For example, an environmentally responsible mobile infrastruc- ture will include appropriate location of mobile transmission towers to ensure minimal envi- ronmental impact on people a nd forests. Ā e inherently complex issues of mobile infrastructure planning need further considerations due to challenges of environmental considerations.

Ā us, mobility i nfrastructure planning b ecomes a cr ucial te chnical a spect of environmental planning for a mobile organization. Such infrastructure planning goes beyond a single organiza- tion and becomes an important part of the governmental initiatives, or that of the regulatory bod- ies. A major issue in the setting up of systems and architectures is to take into account the impacts of the mobility system on environmental and social quality (Borri et al., 2005).

Environmental–Process Mobile Use As d iscussed earlier in t his chapter, t he way in which businesses operate c an have a t remendous impact on t he environment. Ā e m odeling, s tudy, a nd o ptimization o f b usiness p rocesses n eed

178 ◾ Green IT Strategies and Applications

to be u ndertaken f rom a m obile pe rspective. Ā e p otential o f m obile de vices to re duce p eople movement is obvious; this potential needs to be woven in the green business processes of an orga- nization. A m obile worker who c an access t he information he needs at t he location where he is, reduces physical a nd vehicle movement—making t he business processes progress one suc cessful step in going green.

Business i ntelligence ( BI) p rocesses c an a lso m ake u se o f t he w ireless c apabilities to i mple- ment, maintain, and sustain the environmentally intelligent business systems. IT has been thrust into limelight as a key element in advancing strategic business objectives and certainly mobile BI plays a major role in achieving these objectives. Ā erefore, IT must have its own set of mobile BI capabilities to maintain and sustain the overall environment (Imhoff , 2005).

Enterprises are looking to use mobility to extend the BI solutions that coordinate offi ce, fi eld, and home decision making. Ā is extension of BI a nd its application to g reen business is termed environmental i ntelligence ( EI) a nd h as b een d iscussed i n de tail i n Chapter 6 . Mobility e quips users with real-time access to critical business applications, analytical application, decision-making systems, queries on performances, and customer data. Ā erefore, enterprises are looking to mobil- ity solutions to extend their BI solutions to involve and coordinate offi ce, fi eld, and home decision making resulting in potentials for the communities. Ā ese improvements enable organizations to gain environmental advantage by optimizing mobile fi eld and workforce.

Ā e B I u sers ( executives, a nalysts, fi nancial p lanners, s trategists, a nd fi eld w orkforce) wh o are equipped with mobility are able to utilize their time and location free connectivity to reduce movements. C ompanies w ith a h igh number of mobile sales a nd service personnel in industries like retail, fi nancial institutions like banks, healthcare, and manufacturing are using mobile tech- nologies and EI in order to improve access of data and information to mobile workers.

Client 1

Loan 1

Vendors Vendors

Vendors Vendors

Digital Library

Management System

Loan 2 Loan 3 Loan 4 Loan 5 Loan 6 Loan 7 Loan 8

Loan n . . . .

.

.. . . . .

Client 2 Client 3 Client 4

Client n

D e l i v e r y

Figure 5.9 Example existing digital library—core business processes.

Green Business Process Management ◾ 179

Environmental–Social Mobile Use Ā e social dimension of mobile technologies—particularly the devices and the social networks—relate to the environment in many ways. For example, the ability of personalized transmission of messages can be utilized in raising environmental awareness amongst specifi c users. Mobile businesses can also take additional social responsibilities by investing in communities that can be helped to learn, work, and thrive in a “green” environment. Mobile businesses can also facilitate mobile networking amongst interested groups of users on the issues of environment. For example, all transitioning organizations can setup green blogs that form an important part of the green initiatives of an organization. Blogs, wikis, and discussion groups can be an attractive way of creating and spreading social awareness of environmental issues. Ā e free exchange of information amongst the participants between the readers can become an important part of public dialog on environmental matters (Dicum, 2006). According to Alex Steff en, founder of one of the most widely read green blogs, “Climate change has become a big issue. A lot of people are interested in green building, green fashion and green product design.” Mobile businesses need to encourage and support these social networking opportunities, enabling users and customers to express their views and share innovative ways to go green.

Example—Digital Library GPR Consider, for example, the reengineering of the processes of a digital library. Ā e overall archi- tecture of t his d igital library is shown in Figure 5.9. Ā e clients approach t he library t hrough the l oans p rocesses, a nd t he v endors u pdate t he off erings of the library. Figure 5.10 shows a detailed process fl ow of a d igital library. Ā e process can be divided into internal and external domain. Demand estimation, purchasing, catalog management, storage management, delivery management, disposal are some of system comprising the internal business process. Web search, physical search, loan service, return management, delivery management are some of the systems present in the external process. Apart from these, the reservation management and the circula- tion management overlaps between both the processes. On detailed analysis, some of these components can either be eliminated or consolidated.

For example, the physical search on the external process can be eliminated and replaced by an overall search system. Storage, reservation, and loan processing are closely coupled systems with numerous overlapping components. With intelligent reengineer- ing ap plied, t hese c ould b e de signed a s o ne c entral s ystem to manage all these processes. Ā e centralized system could either be maintained in-house or can be outsourced to external agen- cies or can be deployed into the Cloud environment. As a result of these various computing equipments can be disposed and for the remaining equipments, a high-end energy conservation panel could be applied, which c an lead lower-carbon em issions. A lso when deployed to external agency or to Cloud environment, the services could be off ered to other digital libraries. Ā is could reduce the number of systems which individual libraries have and reduce the overall carbon emissions cumulatively.

Finally, this chapter of green business processes concludes with a simple yet popular example of a d igital l ibrary t hat loans or vends d igital media for entertainment or i nformative purposes. Ā e purpose of these examples is to show how the change in process can reduce carbon contents of that entire business.

Process reengineering in practice is based around three important elements: the roles, the activities performed by the roles, and the technologies that support the activi- ties. For example, roles can include the client, supplier, and owner of the organi- zational processes that are all concerned with carbon. Activities include the check-in and check-out of items that are provided directly to clients. These are the steps that are merged or eliminated as part of Green BPR. Eventually, the supporting technology can move from the local data warehouse to, say, Cloud computing.

180 ◾ Green IT Strategies and Applications

Demand Estimation

Purchasing/ Acquisition

Catalog Management

Storage Management

Delivery Management

Resale; Disposal

Owner

(a)

Supplier

Retrieve/ Circulation

Management

Return Management

Loan Service

Physical Search

Web Search

Demand

Clients Reference

Service Delivery

Management

I n t e r n a l

P r o c e s s

E x t e r n a l

P r o c e s s

Reservation Management

Demand Analysis

Purchasing/ Acquisition

Catalog Management

Delivery Management

Resale; Disposal

Supplier Owner

(b)

Demand Search On Info System

Reference Service

Clients

Green Re-engineered Process

Updated System:

• Storage • Retrival • Reservation • Overdue Notification • Loan service • Payment • Return • Others

I n t e r n a l P r o c e s s

E x t e r n a l

P r o c e s s

Figure 5.10 (a) Digital library GPR. (b) Digital library GPR—results.

Green Business Process Management ◾ 181

Ā e c ore processes of e xisting d igital l ibrary de al w ith c ontent vendors a nd c lients. C ontent vendors supply digital contents and the library manage the catalog and digital content storages to serve clients. In this case, our focus point is the digital library itself for the Green BPR. Ā e digital library h as to a cquire d igital c ontents, m anage i nventories, m anage de livery, a nd m anage l oan services. Some of these are in manual and physical form in the existing processes. Ā e fi rst stage in GPR is to model existing processes so t hat the holistic view of the digital library is presented. Ā e se fl ows of core processes a re shown in Figure 5.10a, where manual activities a nd ineff ective green processes are identifi ed. Ā is model is analyzed and relevant business rules are documented before starting to optimize those processes under the GPR eff ort.

Ā e green business policies will help in rewriting the business rules related to d igital library processes. O nce t he p olicies a nd r ules a re do cumented a nd n ecessary p erformance i ndicators are e stablished, t he c ore p rocess c an b e re -engineered. Ā ese re engineered c ore p rocesses a re shown in Figure 5.10b. Ā is fi gure shows extensive automation of processes and reduced number of m anual p rocesses. A ll t hese p rocesses sh ould b e m onitored t hrough K PIs t hat a re de fi ned together wi th g reen b usiness K PIs. Ā ese K PIs re sults w ill en able t he b usiness to g ain m ore knowledge on the carbon footprint generation throughout the processes and helps to improve the digital library and make it green.

Ā ese green core processes for digital library could be mapped to the Green BPM factors which were shown in Figure 5.7. For example, carbon footprint by the storage facilities can be reduced by adopting a smart inventory management system. Enabling online search and lending services will reduce transport and thereby help to reduce the carbon generation. Adaptation of Cloud com- puting by the digital library can a lso help to re duce carbon generated down for the information storage a nd processing. Ā is Green BPR w ill a lso en able people (clients, vender, a nd society) to adopt and comply with green business.

Conclusion Ā e b usiness p rocesses m anagement i s a v ital c omponent fo r a n o rganization’s o peration. Reengineering the business process can help identify various aspects that can improve the overall effi ciency of the organization. Infusing the “Green” component to the BPM can have tremendous impact on the environment. Eliminating redundant steps and consolidating various components into a centralized system can have myriad advantages. Ā e money invested in the business process reduces as a result of eliminated and consolidated systems. Also with outsourcing, the mainte- nance c ost fo r t he o rganization i s e liminated. F urthermore i ntroduction o f m obile de vices fo r remote c omputing c an off er va rious a dvantages. W ith c areful s trategic p lanning, t his c ould b e used for better process management and off er improvements to carbon emission levels.

Discussion Points What i s Green BPM? Discuss t he role Green BPM plays i n t he re duction of a n organiza- ◾ tional carbon footprint. What are the characteristics of a process and how do they apply to a green process? ◾ Explain how you understand individual, organizational, and collaborative processes. Discuss ◾ why i ndividual g reen p rocesses a re sh ort-term s trategies, w hereas c ollaborative g reen p ro- cesses are long-term strategies.

182 ◾ Green IT Strategies and Applications

Discuss how “Green” BPR can improve organization’s effi ciency and aid in achieving better ◾ carbon effi ciency. What is the relevance of process modeling in Green BPR? What techniques you would use ◾ to undertake green process modeling? Take any one phase of ITIL. Discuss how it is applied in the context of a green initiative. ◾ Discuss how to employ mobile technologies to reduce paper-based work and how to reduce ◾ the carbon footprint with careful planning. What a re t he a dvantages o f C loud c omputing i n t he c ontext o f G reen I T? W hat a re t he ◾ challenges and risks associated with Cloud computing in the same context?

Action Points List t he e xisting processes i n your organization. Divide t he l ist i nto i ndividual/single u ser ◾ processes, departmental-organizational processes, and the ones that go beyond an organiza- tion and into the collaborative space where multiple organizations are involved. Apply a “rough” Green IT metric to ascertain the amount of carbon each of these processes ◾ are generating. Focus initially on the departmental-organizational processes as that is where the maximum ◾ carbon value will be derived. Rank t he p rocesses ba sed o n t heir c arbon g eneration—highest c arbon g enerators b eing ◾ listed on the top. Categorize them as broadcast, informative, transactive, operative, and collaborative processes. ◾ Undertake process modeling of the top fi ve “transactive” business processes using BPMN, ◾ use cases or any other appropriate mechanism. Step t hrough each activity/task of t he process. Reengineer t he processes to o ptimize t hem ◾ by combining activities. Eliminate activities t hat do n ot add va lue to t he goals—or replace t hem with system sup- ◾ ported services. Identify the individual processes (such as ones carried out by staff members) that are carbon ◾ intensive. Ā ese may also be categorized as operative processes that deal with the operations of the business. Model a nd o ptimize t hem b y s tudying e ach a ctivity, t ask, a nd de liverable w ithin t he ◾ process. Collaborative processes are the most challenging of all. In the initial attempt at Green BPR, ◾ collaborative processes should only be modeled as far as possible. Once collaborating part- ner organizations are on board, collaborative BPR can be applied to t hese processes from a carbon reduction/elimination viewpoint.

References Addy, R. (2007). Eff ective IT Service Management to ITIL and Beyond! Berlin Heidelberg, Springer, pp. 89. Beal, A. (2011). Role of business analysis in G reen ICT. In B. Unhelkar, ed., Handbook of Research in Green

ICT, pp. 42–50. IGI Global, Hershey, PA, USA. Bhalla, I. and Chaudhar y, K. (2011). A pplying ser vice oriented ar chitecture and cloud computing for a

greener traffi c management. In B. Unhelkar, ed., Handbook of Research in Green ICT, pp. 332–347. IGI Global, Hershey, PA, USA.

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Borri, D., Camar da, D., and Liddo . (2005). A D e, M obility in E nvironmental P lanning: An I ntegrated Multi-Agent Approach. Cooperative Design, Visualization, and Engineering published by Springer Berlin/ Heidelberg, V olume 3675/2005, r etrieved M arch 24, 2010, fr om http://www.springerlink.com/co ntent/8r09mvbfq42glv26/

Hammer, M. and Champy, J. (1994). Reengineering the Corporation: A Manifesto for Business Revolution. HarperBusiness, Business Process Re-engineering (BPR) exercise by Hammer and Champy.

Hercheui, M. D. (2011). U sing kno wledge management tools in fostering G reen ICT r elated behavior change. In Unhelkar, B., ed., Handbook of Research in Green ICT, pp. 290–300. IGI Global, Hershey, PA, USA.

ITIL (2009). What is ITIL?, APM G roup Ltd. A vailable at http://www.itil-offi cialsite.com/AboutITIL/ WhatisITIL.asp, accessed July 16, 2009.

Imhoff , C. (July 12, 2005). Business Intelligence Environments: Ā e Need for Mobility, Business intelligence networkTM. Retrieved March 24, 2010 from http://www.b-eye-network.in/view- articles/1128

Murugesan, S. (2008). H arnessing Green IT: Principles and Practices. IT Professional, 10, (1), 24–33, J an./ Feb. IEEE.

Nott, D. (April 2010). Sustainability & Agility. Available at www.Alinement.net, accessed February 2, 2011. Orr, K. (July 2007). Business process modeling fundamentals. Cutter Executive Report 10(7), Cutter, Boston,

USA. Philipson, G. (2010). A CS R eport, “Carbon and Computers in A ustralia.” A vailable at http://www.aiia.

com.au/docs/AIIA%20and%20the%20ICT%20Industry/Green/ACS%20Carbon%20and%20 Computers%20Energy%20Consumption%20and%20Carbon%20Report%200510.pdf

Silver, B. (2006). Ā e ABCs of BPM. Information Age April 2006, http://www.infoworld.com/d/applications/ abcs-bpm-807

Unhelkar, B. (2003). Process QA for UML-based Projects. Addison-Wesley, Boston, USA. Unhelkar, B. (2003). “Understanding Collaborations and Clusters in the e-Business World,” We-B Conference

(HYPERLINK “ http://www.we-bcentre.com” www.we-bcentre.com; with E dith Co wan U niversity), Perth, Nov. 24–25, 2003.

Unhelkar, B. (2005). “Practical Object Oriented Analysis,” Ā omson Publishing, Australia, March, 2005. Pages 221; ISBN 0-17-012298-0 (Foreword by Prof. Houman Younessi, Rensselaer Institute of Polytechnic, Hartford, USA).

Unhelkar, B. (2008). Sourcing methods. Cutter IT Executive Report, 9(3). Unhelkar, B. (2009). Mobile E nterprise Transition and M anagement. Taylor & F rancis G roup (A uerbach

Publications), Boca Raton, FL, USA. 393 pages, ISBN: 978-1-4200-7827-5 (Foreword by Ed Yourdon, USA).

Unhelkar, B. and Dickens, Annukka. (2008). Lessons in implementing “Green” Business Strategies with ICT. In S. Murugesan, ed., Cutter IT Journal, Special issue on “Can IT Go Green?”, Vol. 21, No. 2, February 2008, pp. 32–39.

Unhelkar, B. and Ginige, A. (2010). A framework to derive holistic business transformation processes,” Paper 44, Proceedings of International Conference on E-Business, 2010. Greece

Unhelkar, B. and M urugesan, S. (2010). “Ā e E nterprise Mobile A pplications D evelopment Framework,” Computer.org/ITpro, IEEE Computer Society publication, May/June 2010, pp. 33–39.

Unhelkar, B. and Tiwary, A. (2010). “Collaborative Intelligence” in Cutter IT Journal edited by Dave Higgins’ Business Intelligence 2010: Delivering the Goods or Standing Us Up?- Vol. 23, No. 6, June 2010.

Unhelkar, B., G hanbary, A., and Younessi, H. (2009). Collaborative B usiness P rocess E ngineering and Global O rganizations: F rameworks for S ervice I ntegration. IGI G lobal, H ershey, P A, USA, ISBN: 978–1-60566–689–1; 323 pp; (c) 2010.

Wiegers, K. E. (2006). More about Software Requirements: Ā orny Issues and Practical Advice. Microsoft Press.

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6Chapter

Green Enterprise Architecture, Environmental Intelligence, and Green Supply Chains

I, Cyrus, the Emperor of Persia, say . . . Who keeps the earth cleansed, Appreciates rain, Respects Mother Nature and her kindness . . .

Cyrus the Great; circa 600 BC, fi rst Zoroastrian Persian emperor

Key Points Enterprise architecture (EA) of the organization is extended with due consideration to the ◾ environment, resulting in a Green enterprise architecture (GEA). Importance and relevance of a GEA in an organization’s transformation to a green organiza- ◾ tion. Various types of architectures within the enterprise, such as information architecture and solutions architecture, are discussed and their role in Green information systems (GIS) highlighted. Fundamentals o f a G reen so lutions a rchitecture ( GSA)—the d ata, s ervice, a nd i nterface ◾ tiers—are discussed. Discusses evolution of GSA to incorporate a collaborative green process model. ◾ Discusses the vital role of supply chain management (SCM) systems in the GEA and their ◾ evolution to a Green SCM. Equips G reen SC M w ith m obile te chnologies to re duce c arbon em issions i n t he su pply ◾ chain process. Maps green contents to corresponding green functions and Green web services (GWS). ◾ Discusses g reen s ystems i ntegration u sing s ervice oriented a rchitecture (SOA) u sing d ata, ◾ application, services, processes, and messaging.

186 ◾ Green IT Strategies and Applications

Discusses s ystems i ntegration a mongst G reen CR M, G reen E RP/SCM, C EMS, a nd t he ◾ Green regulatory portal. Expands on t he elements of a g reen information portal a nd de scribes t he role of a gencies, ◾ technologies, ontologies, and stakeholders in these green portals. Develops i n de tail t he c oncept o f en vironmental i ntelligence ( EI) i ncluding i ts e volving ◾ complexities—from data, information, and processes to knowledge and intelligence. Relates EI architecture’s implementation with Cloud computing/web services. ◾ Relates m obile te chnologies to t he o verall GE A a nd p resents t he pat h to E I w ith m obile ◾ technologies.

Introduction Ā is c hapter d iscusses en terprise a rchitecture ( EA) i n t he c ontext o f t he g reen i nitiatives o f a n organization. Ā e E A c an b e s een a s a n u mbrella for a ll other a rchitectures t hat form a pa rt of the o rganization. Ā ese a rchitectures tog ether a re m eant to p rovide t he b usiness w ith s tability and a gility. Ā ese architectures also play an integral part in enabling the business to meet its specifi c goals. Ā erefore, de spite many generic E A f rameworks, most practical E A a re organiza- tion specifi c. Ā e EA defi nes relationships between the specifi c domain architectures and how the diff erent a rchitectures relate to e ach other a nd contribute to t he overall enterprise (Rosen et a l., 2011, HRG). When these architectural relationships are further investigated and developed from the point of view of t heir underlying carbon impacts, t he end result is a G reen enterprise a rchi- tecture (GEA). A GEA is thus an EA that provides sound basis for the organization to transform its systems, applications, a nd processes t hat would eventually support a g reen organization. Ā e enterprise-level a rchitectural concepts a re extended in GE A to p rovide long-term, strategic ba sis for updating t he existing s ystems, procuring f uture s ystems, a nd integrating t hem into t he day- to-day a ctivities o f t he g reen o rganization. A GE A i s a lso i nstrumental i n p roviding te chnical constraints w ithin which t he organization must operate. In t he absence of such constraints, t he existing organizational systems and processes will encounter challenges, especially when they have to be integrated with the new Green information systems (GIS). Ā ese challenges are discussed in depth in this chapter.

With the help of an EA-based approach, the organization can defi ne, assess, measure, analyze, report, and monitor the systems and processes that specifi cally deal with Green IT. In addition to providing constraints, this architectural approach to Green IT also results in the development of common terminologies that bring clarity, understanding, and consistency to the green enterprise initiative ( based o n W eill a nd R oss, 2 004). Ā us, u sing a n a rchitectural ap proach w ithin t he Green IT paradigm can facilitate the adoption of sustainability in an integrated way throughout an en terprise. R osen e t a l. ( HRG, 2 011) h ave a lso de scribed i n de tail suc h p ositive va lue a nd impact of EA on sustainable initiatives of an organization. Extending an EA to a GEA, and then using that GEA as a basis for transforming the systems, applications, and processes of an organiza- tion to a green one provide the following advantages:

An u nderstanding of t he e xisting s ystems, applications, a nd processes of t he organization ◾ and its current technological capabilities and constraints Ā e re lationship o f t he s ystems w ithin t he c urrent E A to t he n ew G reen I T s ystems a nd ◾ applications (their development discussed in Chapter 7)

GEA, EI, and Green Supply Chains ◾ 187

Alignment o f e xisting a nd n ew i nfrastructure, o perations, s ystems, a nd ap plications w ith ◾ each other and with the environmentally responsible business strategies (ERBS) of the orga- nization in a synergetic manner (discussed in Chapter 2) Creation a nd de scription o f c ommonly u sed ter minologies, s emantics, a nd b usiness r ules ◾ relating to the organization as well as to its green initiative Creation o f sp ecifi c G reen I T f rameworks, t hat a re ba sed o n k nown a rchitectural ◾ frameworks, a re developed or ground up, specifi c to t he organization (also discussed in Chapter 9—on transformation) Holistic decision support by providing inputs from multiple dimensions of the organization’s ◾ carbon performance and bringing together of otherwise disparate information together in a knowledge base—leading up to environmental intelligence (EI) Provide basis for changes to the large applications supporting the organization—such as the ◾ CRM, SCM, HR, and fi nancial applications—with particular emphasis on SCM Reduce the risks associated with incorporating new carbon contents (such as carbon emis- ◾ sions and regulatory benchmarks) within the organization Facilitate incorporation of service orientation architecture (SOA) and web services (WS) in ◾ green systems Explore t he p ossibilities of C loud c omputing i n Green I T t hat w ill not only i mprove t he ◾ carbon fo otprint b ut a lso so urce a nd p rovide c arbon c ontents f rom b eyond t he o rganiza- tion’s systems Enable t he cre ation o f GIS p ortals w ith c orresponding ◾ models for green content providers and consumers Evolution o f b usiness in telligence (B I) t oward EI u sing ◾ data, i nformation, p rocesses, a nd k nowledge a ssociated with the organizational systems Evolving the green contents and processes to collaborative ◾ green processes that go beyond organizational boundaries, through architectural models Enhancing existing knowledge of the enterprise and using ◾ emerging te chnologies ( such a s C loud, Sa aS, SO A, a nd Web 2 .0) Incorporating mobile technologies with the evolving EI ◾

Green Enterprise Architecture Ā e a im of a GE A i s to de velop a n u nderstanding of d iff erent v iewpoints of business, te chnol- ogy, and the environment in which the business exists. Ā is understanding also reduces the risks associated with the green transformation. Developing such an EA would imply an understanding and m odeling o f t he b usiness a s we ll a s te chnology spa ce o f t he o rganization. For e xample, a n EA would include a model of the way in which information is used by the business. Ā is model can be a process fl ow or, at an abstract level, even a simple block diagram. Similarly, the solution architecture would model t he te chnology spa ce i n t he organization. Ā is solution model would incorporate t he G reen re sources, networks, t heir sp eeds a nd ba ndwidths, a nd t he c ontents a nd applications. Ā e GE A su perimposes o rganizational a nd te chnical c onstraints o n t he i nforma- tion a nd solutions a rchitecture. E A f rameworks suc h a s Z achman a nd TOGAF provide practi- cal means of bringing te chnology a nd business tog ether a nd providing a c omprehensive w ay of

An “enterprise” is a high-level, strategic view of the organization and an “architec- ture” implies a structured framework for the analysis, planning, and development of resources. SOA is a conceptual business architecture where business functionality or application logic is made available to SOA users or consumers as shared, reusable services on an IT network. An EA-based approach to Green IT helps reduce the risks in both technological and process dimen- sions. This is so because a GEA helps the organization visualize the impact of new carbon data, processes, and services on the existing systems. A GEA provides sound basis for development of GIS and portals.

188 ◾ Green IT Strategies and Applications

modeling of an enterprise. For example, the Zachman framework provides a neatly laid 6 rows by 6 columns view of an enterprise. Ā is view can be used in order to understand the business that is undergoing transformation. TOGAF a lso provides a te chnical architectural framework that can be used in green transformation.

Ā e GE A c an t hus be m ade up of well-defi ned a nd reu sable business a nd technical c ompo- nents that are put together to handle rapidly changing external business. GEA-based approach to Green IT is particularly helpful in understanding and integrating heterogeneous enterprise appli- cations (that include internal legacy code and/or new software components that could be sourced as services and collaborative applications from business partners). Ā is results in data integration, process integration across multiple systems, collaboration amongst internal and external business applications, and extension to real-time information using mobile technologies and systems. Ā e end result is a u nifi ed view of the business that can be updated and tuned for a green enterprise. A GE A a lso incorporates interfaces to t he organization’s customers, suppliers, and other trading partners.

Ā ese i nterfaces i nclude t he te chnical i nterfaces ( Green web s ervices) a s we ll a s p eople-to- people i nteractions ( between b usiness l eaders, a nd a lso wo rkers). S uppliers a nd pa rtners o f t he organization need to comply with all environmental laws and regulations as much as the organiza- tion itself. However, sometimes it can become challenging for an organization to enforce compli- ance on its suppliers. A GEA can be used as a basis for technical assistance (e.g., training, CEMS implementation, p olicy i nterpretation) t hat c an h elp su ppliers to c onform w ith t he re gulations and standards. Similarly, a good GEA also helps the customers by providing them with the neces- sary Green web service interfaces, promoting the organization to them and assisting the corporate customers to setup their own GEA.

GEA is also crucial in providing technical basis for development and implementation of a GIS. Ā e de velopment of GIS ( also c alled Carbon Emissions Management Software, CEMS), a re d is- cussed i n g reater de tail i n t he n ext c hapter. Ā ese GIS p rovide t he o rganization w ith so ftware system l evel su pport i n m easuring, m onitoring, a nd rep orting c arbon d ata. H owever, i n m ost cases—especially w ith l arge organizations—GIS a re a c ombination of i mplementing a n ew soft- ware sy stem, t ogether wi th s ignifi cant u pgrade o f a nd i ntegration w ith e xisting s ystems. Ā us , typically, the following activities are undertaken, with help and support of a GE A when it comes to GIS in an organization:

Integration of new s ystems w ith e xisting organizational s ystems (typically E RP pa ckages, ◾ CRM) using SOA-WS interfaces Modifi cation o f ex isting da ta s tructures t o a ccommodate n ew ca rbon da ta e lements a nd ◾ related contents associated with a Green IT hardware and other carbon-emitting assets Conversion of existing organizational data in a new format that will enable use of that data ◾ in calculating carbon emissions after the organization has transformed Populating pa rts o f d ata a nd s ystems w ith e xternal c arbon d ata ( such a s re gulatory ◾ requirements/standards/benchmarks) Evolution of existing decision support and knowledge management systems toward environ- ◾ mentally intelligent systems Creation of a suite of green services using SOA and WS ◾ Applying mobile technologies to provide location-independence and personalization to GIS ◾ interfaces with green information portals that facilitate collaboration Quality assurance and testing of Green info systems ◾

GEA, EI, and Green Supply Chains ◾ 189

Views of Green Enterprise Architecture A c omprehensive GE A en compasses a n u nderstanding o f t he va rious v iews o f t he o rganization and its interrelationships. Figure 6.1 shows these various architectural views together with the key functionality and the roles that hold primary responsibility within those views. Ā e Green infor- mation a rchitecture (GIA), shown i n upper h alf of Figure 6 .1, primarily de als w ith t he models of information capture and information provisioning to both external and internal parties in the business space. Ā e information architect and the business analyst work in this space identifying and m odeling t he i nformation re quirements. Ā e GI A de scribes t he enterprise f rom a b usiness perspective. Ā is a rchitecture i s de veloped ba sed o n t he b usiness re quirements i n t he “problem space” a nd t akes i nto a ccount t he s trategies a nd p olicies o f t he o rganization ( Unhelkar, 2 003). Ā e GIA identifi es the basic functional requirements that are modeled in the context of the Green IT strategies, processes, applications, and IT governance of the enterprise. Ā is would result in a prioritized suite of functional and operational requirements that become part of the green trans- formation program. Green solution a rchitecture appearing in t he lower half of t he a rchitectural spaces, deals with the design and development of systems from a technical perspective. Ā is solu- tions a rchitecture primarily handles models a nd implementation of contents, networks, applica- tions, their testing, and deployment.

Ā e solution a rchitect predominantly works i n t his spa ce supported by t he s ystems a nalysts and de velopers. F inally, t he a ll en compassing GE A, dep icted i n t he ba ckground i n Figure 6 .1, provides the constraints across all the systems and applications. Ā e GEA also infl uences both the information and solution architecture models. Ā ese three form the basic enterprise architectural views of t he organization. Ā ere a re m any other a dditional a rchitectural v iews of t he organiza- tion. Rosen et al. (2011, HRG) have described diff erent architectural domains such as the business

Green Information Architecture

Green Solution Architecture

Green Enterprise

Architecture

Leaders (CEO/CGO/CIO)

Information Architect

Solution Architect

Enterprise Architect

Project Manager

Needs; Capabilities; Processes

Green Systems Design; DataWarehouse; Green Portal

System Analyst Developers

Business Space

Technology Space

Business Analyst

(Vision, Strategy)

Quality Manager

In te

gr at

io n

En ter

pr ise

Sp ac

e

Figure 6.1 Various views of a comprehensive Green enterprise architecture: Business, technol- ogy, and enterprise spaces.

190 ◾ Green IT Strategies and Applications

architecture, i nformation a rchitecture, ap plication a rchitecture, te chnology a rchitecture, a nd operational architecture. Ā ey have a lso added performance architecture, which has been added for t he s ake of a ccountability a nd c ontinual i mprovement to t he enterprise a nd i s meant to c ut across all other domain architectures. Ā e overall GEA encompasses all of these architectures and provides c onstraints, l imitations, a nd re quirements for e ach of t hese a rchitectural domains. For example, in Figure 6.1, the GIA domain deals with the needs and capabilities of the organization, the technical-solution space with the implementation of green portals and data warehouses, and the background-enterprise space w ith t he integration a nd constraint models t hat a re a lso super- imposed on the information and solution architecture. Ā e project manager and quality manager support the architectural work by helping in formulating and scoping Green IT projects and using appropriate and matured standards and processes.

Green Enterprise Architecture—Categories of Requirements Figure 6 .2 expands a nd g roups t he va rious a ctivities t hat fo rm part of the overall green architecture of the enterprise. Ā e activ- ities that deal with the business and information aspect of the organization a re p rimarily t he re quirements; t he o nes t hat a re in t he so lution spa ce a re re lated to t he d ata a nd ap plications; and the overall GEA that provides the constraints and is in the background space. It should be stressed, however, that the GEA shown in the background in Figure 6.2 is not a s eparate entity.

The GEA is not an independent entity per se. While a GEA deals with constraints, compliance, integration performance, and security issues, it also infl uences both—the GIA in the business space and the GSA in the technology space. Thus, the activities with GEA span the problem, solution, and background space.

Green Customer Requirements

Green Customer Requirements

Green Information Architecture

Green Solution Architecture

Green Enterprise

Architecture

Green Supply chain Process Requirements

Green Facilities Management

Requirements

Green Networks Solutions

Green Enterprise Constraints

GreenTesting (Functional,

Operational)

Green Business Architecture

Green Compliance, Audits

Green Integrations

Green Performance

Green Security

Green IT (technology) requirements

Green Marketing

Green Recycling/ E-Waste Requirements

Green Power Requirements

Green Measurement Requirements

Green Data Centre/Warehouse

Solutions Green Application

Development

Figure 6.2 Categories of requirements in the various green architectural spaces.

GEA, EI, and Green Supply Chains ◾ 191

Ā e GEA in the background is infl uencing and infl uenced by the GIA as well as the GSA from the problem and the solution space respectively.

Ā e GI A p rovides t he ba sis fo r u sing en terprise ap plications, p rocesses, a nd c ontents. Ā e semantics for the master data including the green data are defi ned and the operational and ana- lytical i nformation i s m odeled i n t his a rchitectural spa ce. Ā e re quirements t hat i nfl uence the information architecture come from the business, information, and enterprise domains. Ā is infor- mation a rchitecture p rovides t he c ontext fo r f acilitating i ntegration a cross va rious ap plications. Ā e information architecture also outlines the processes for capturing and modeling requirements. Ā e i nformation a rchitecture a lso c ontains a rep ository o f o verall ap plications a nd t heir i nter- relationships. A good understanding of this interrelationship can help eliminate redundancy and eventually also contribute to the reduction of resources.

Green c ustomer re quirements t hat a re ba sed o n t he dem ands o f t he c ustomer fo r g reen ◾ products and services. Green marketing requirements that promote the organizations green products and services. ◾ Green supply chain process requirements that interface with the suppliers systems. ◾ Green technical requirements that are specifying the technologies that are needed to handle ◾ the Green IT initiative. Green f acilities m anagement r equirements t hat d escribe t he b uilding a nd f acilities infr a- ◾ structure and the approach for measuring and reducing their carbon. Ā e design and con- struction of facilities (Chapter 4) are important here. Green m etrics a nd m easurement re quirements t hat sp ecify t he e lements to m easure a nd ◾ report. Green recycling and e-waste management requirements that deal with the one-off disposal ◾ of assets.

Ā e GSA includes the models of technologies and infrastructure required to support applica- tions, operations, and reporting requirements in the information space. Ā ese solutions architec- ture needs to cater for distribution, scalability, reliability, device support, security, and application integration (Rosen et al., 2011). Ā e infrastructure is also a primary contributor to c arbon emis- sions. Ā us, this is a two pronged approach is the solution space use of IT to reduce emissions and reduce the IT domain’s emissions.

Green data center design and solutions relates to the building and facility requirements that ◾ are IT specifi c. Green content strategies that are infl uenced by the backup, mirroring, and so on. ◾ Green networks and architecture solutions that provide the communication hardware. ◾ GIS programming solutions that relate to green information and solution. ◾

Ā e ba ckground spa ce a rchitecture de als w ith c onstraints, c ompliances, i ntegration, p erfor- mance, and security. Ā is provides a consistent mechanism to defi ne, collect, analyze, and report on metrics (e.g., KPIs at the business level, paper utilization at the application level, and server and power utilization at the technology level).

Green enterprise-level constraints that span across both information and solution ◾ Green compliance requirements that are dictated by the regulatory portals ◾ Green systems integrations (SOA based) ◾

192 ◾ Green IT Strategies and Applications

Green performance (KPI that are related to all dimensions—discussed in Chapter 3) ◾ Green security deals w ith c arbon d ata, storage, transmission, a nd its interfaces w ith other ◾ data

Green IT and Organizational Systems A GE A provides various views of the organization and its systems. Ā ese views refl ect the eff ect of changes in one a rea of t he organization on t he other a reas a nd systems. Ā is view enables a n overall understanding of the impacts of the charges and thereby reduces the risks associated with changes to the systems and operations of the organization as a result of the green initiatives.

In t he p revious c hapter, F igure 5 .5 p rovided a m apping o f t he o rganization’s s ystems to i ts business processes. Figure 6.3 further expands on those impacts, and shows the signifi cant areas of organization systems aff ected by changes due to Green IT processes. Figure 6.3 also summarizes this impact of Green IT transformation on the infrastructures and portals of the organization. On the left, in Figure 6.3, a re t he t ypical IT systems t hat a re a ff ected by t he change. Ā e se include the e xisting s ystems t hat n eed to c hange, a nd a lso t he c hanges a ssociated w ith t he n ew GIS ’s implementation.

A good GE A is a mechanism to incorporate t he changes a ssociated with Green IT transfor- mation on the right in Figure 6.3 into the systems and processes on the left. Ā e changes to t he systems are as follows:

Organizational Systems Ā ese are the core systems that are primarily internal to the organization. For example the typical CRM, SCM, and Payroll applications that need to be updated with the new carbon data and that also need to be integrated with the GIS/CEMS. SOA provides basis for these integration.

Green Information Systems (GIS/CEMS)

Portals/Collaborative Services

External (Partner’s) Systems

C R M/SCM/PAYROLL

Organizational Systems

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Standards

Integration

Conversion

Testing

Deployment

Contracts

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Green

Enterprise Architecture

Green IT

Transformati on

Figure 6.3 Green enterprise architecture helps in handling the impact of Green IT transforma- tion on the rest of the organizational systems.

GEA, EI, and Green Supply Chains ◾ 193

External Systems Ā ese are not just systems external to the organization, but also external interfaces of the organi- zational systems. Ā ese external systems and interfaces belong to the green organizational portals that relate with the regulatory portals, and also the collaborative services off ered and consumed by the organization.

Infrastructure Ā ese are the communication Networks and Servers (discussed in Chapter 4).

Ā ese are the IT-specifi c infrastructures of the organization as against building and facilities. Ā ey change to replace existing carbon-intense equipments and also provide basis for GIS/CEMS communication and integration.

On the right, in Figure 6.3, are the various IT areas that need to be handled when an organiza- tion embraces Green IT. Ā ese are as follows:

Conversion ◾ of some of the existing data that will ensure it works well with the new carbon data. Some applications and interfaces may also require conversion to a potential new format (e.g., XML interfaces that have to now deal with carbon data exchange with other data). Integration ◾ of data with applications, as well as across applications that are both existing business applications as well as new carbon-specifi c applications. Standards ◾ dealing with web service interfaces at technical level and ISO standards applies to the systems at organization level. Ā e technical standards assist in the conversion of data and interfaces, whereas the business standards enable streamlining of business processes. Testing ◾ of new applications and their interfaces—requiring a suite of carbon test data to test the functionality and operational aspects of the systems and their integration. Deployment ◾ of new applications—especially as the CEMS are most likely to be SaaS-based deployments using Cloud computing. Contracts ◾ that implement policies in SOA and SLAs. Electronic contracts becoming promi- nent when green organizational portals deal with other external portals of partnering orga- nizations and regulators. Training ◾ of users as well as support personnel for the new green applications, in terms of how to use their metering capabilities, recording, and analysis of carbon data and identifying the trends in carbon emissions.

Green Solutions Architecture Ā e transformation of the organization to a green enterprise entails changes to its systems. Ā es e systems and applications are part of the solution space.

Each o f t he g roups o f s ystems sh own i n Figure 6 .3 w ill u ndergo c hange i n t heir t hree ba sic areas—data, services, and interfaces. Ā ese basic areas are the same as those of a fundamental 3-tiered architecture in an IT system. Ā ey are discussed here with consideration to green-specifi c issues.

Figure 6 .4 h ighlights t hese ba sic c onsiderations i n a GS A. Ā ese a re t he d ata, s ervices, a nd interfaces that are aff ected as follows:

Data: c hanges h ere de al w ith cre ation o f n ew c arbon d ata a nd m odifi cation o f ex isting ◾ enterprise d ata. For e xample, t he SC M w ill c hange its l ist of i nventory to i nclude c arbon

194 ◾ Green IT Strategies and Applications

emission record for a particular asset. Ā is new data element will have to be read and used by the reporting modules. Ā ese green carbon data reside in the back-end of the GSA, and pres- ent the challenge of integration. Ā is would involve building interfaces or wrappers around legacy systems to include green data in the reporting modules. Services: Ā ese i nclude t he f unctions, applications, a nd t heir u se i n a nalyzing g reen d ata. ◾ Services plot trends, estimate emissions, enable reporting, and create opportunities for col- laboration. Services can be coarse or fi ne, depending on their reuse requirements. Ā e coarse or fi ne level of modeling and amount of services that need to be exposed externally is a solutions a rchitect’s decision. Ā is decision is shown as dotted line across green services in Figure 6.4. Interfaces: Ā ese a re p rimarily t he d isplay m echanism o f t he s ervices a nd ap plications. ◾ Figure 6.4 shows three interfaces as graphic user interfaces (GUI), the reporting and related physical interfaces, and the web service interfaces. Ā ey form the front-end of the GSA and enable personalization of services.

Figure 6.4 further highlights the solutions architect’s views of the data, services, and interfaces. Ā is view predominantly handles integration challenges at back-end of the system, and presenta- tion challenges at the front-end.

For example, the organizational data residing in its existing ERP systems has to be modifi ed to accommodate carbon calculations and, at the same time, this data has to be integrated with new suite of C EMS d ata. Oc casionally, a n entire new version of E RP software, f ully e quipped w ith carbon data and calculations can be procured to replace existing systems. Design and development of GIS /CEMS t hat p romotes c ompatibility w ith e xisting E RP s ystems c an p rovide si gnifi cant advantages in implementing GIS. Analyzing how market leaders for ERP software store and man- age data would help CEMS/GIS to take advantage of the already existing ERP data and minimize data transformation changes during integration.

Figure 6.5 re fl ects t he v iewpoints of t he re spondents i n t he su rvey c orresponding to t he u se of ERP software for environmental purposes in the organization. Participants were a sked to rate

Business

Technology

Ba ck

-e nd

-

F ro

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nd

Positioning this dividing

line up or down is an

Architectural decision!!

Green Data (New Carbon, Existing)

Green Services (Coarse, Fine)

Green Interfaces

(UI, Reports, Services)

In te

gr at

io n

-

Pr es

en ta

tio n

Systems

Figure 6.4 Fundamental considerations of a Green solutions architecture.

GEA, EI, and Green Supply Chains ◾ 195

their views on modifying existing ERP software versus buying a new and external ERP package that will handle all environmental needs of the organization. As seen in Figure 6.5, 36% (agree) and 10% (strongly agree) went for modifi cation of existing ERP packages, as against 26% (agree) and 7% (strongly a gree) for buying e xternal pa ckages. Ā is response indicates that participants felt that greater eff ort would be required in implementing new ERP packages that can handle the environmental issues as against modifi cation of existing packages. Ā is eff ort can include conver- sion, integration, and deployment issues. Ā ere was also some support for external help in imple- menting a Green ERP as against carrying out the implementation in-house.

Ā e g reen t ransformation b oard ( discussed i n Chapter 9 ), l ead b y t he C GO ( discussed i n Chapter 3), will have to use this information to decide the green strategy. Usually, the fi nal orga- nizational action will be a combination of the various options shown in Figure 6.5.

Evolving Green Systems Architecture Figure 6 .6 shows how ba sic s ystems a rchitecture e volves i nto a more complex and a collaborative green process-based architec- ture. Ā e ba sic a rchitecture, d iscussed e arlier i n Figure 6 .4 i s shown in Figure 6.6 as evolving to a suite of linear green process, which eventually becomes a suite of collaborative green processes that make use of the concepts of SOA and WS.

Ā e linear green processes would be the typical business processes such as customer, supplier, and accounting. Linear processes also include totally new green processes within the organization such as counting carbon PPM. Ā ese are, however, all organization-specifi c linear processes—and were discussed in detail in Chapter 5. Ā e c ollaborative processes on t he r ight w ill i nclude t he data, s ervices, i nterfaces, a nd s ecurity t hat encompass a ll t he a forementioned processes t hat a re

A GEA has evolved from a basic base 3-tiered architecture, to a collaborative green process architectures. The data, services, interfaces, and security apply to existing and new green processes in a col- laborative manner.

10%

16%

35% 35%

4%

10%

18%

40%

26%

7%9%

15%

31%

36%

10%

Modify the current ERP system to meet environmental challenges

Buy a new ERP software package which will meet environmental needs

Seek external help for training and implementation of Green ERP

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 6.5 ERP software—organizational action.

196 ◾ Green IT Strategies and Applications

now interconnected through WS. Ā ese collaborative processes are both internal and external to the organization. For example, the customer processes are modifi ed internally, through their data models, to re fl ect the carbon in a particular sale of product or service. When that customer pro- cess is exposed as a WS, the modifi cations are to the interfaces of the CRM—an external impact. Similarly, the service off ering of a supplier may include the guarantee of a certain carbon emission during the operation of an equipment supplied (e.g., a green monitor). Ā at carbon emission limit, supplied by the WS of the supplier, is internalized for comparison against actual emission. When a complete green enterprise transformation takes place, collaboration of the organization with sup- pliers and customers is inevitable. Ā erefore, apart from being a technical issue, this relationship with business partners also becomes a social issue. Ā e green initiatives and enthusiasm shown by the organization needs to be shared by its suppliers and customers to achieve the overall objective of the transformation.

Aspects of Green Solutions Architecture Ā e GSA brings about a synergy of technologies that can enable effi cient use of IT resources. Ā us , the resources are themselves used effi ciently and, in turn, these IT resources provide the basis to enhance t he e ffi ciency o f t he re st o f t he e quipments a nd p rocesses i n t he o rganization. W hile Chapter 4 focused primarily on the user devices, this discussion is a ll encompassing in terms of the solutions technologies that can be used in the solutions space.

Sherringham ( HRG, 2 011) h as d iscussed i n de tail t he i mpact of Green I T solutions on t he green enterprise. Ā e Green I T solutions de al w ith i nternal c arbon re cording, rep orting of c ar- bon e xternally, i mplementation o f Sa aS-based so lutions, c ollaborative g reen s ervices a nd a lso

GUI

Bu sin

es s

IT Basic

Architecture Linear

Green Processes Collaborative Green

Processes

Service

Data

Customer Processes

Supplier Process

Accounting Process

New Green Processes

Data

Customer Processes

Supplier Processes

New Green Processes

Accounting Processes

Services

3-Tier ed Proces

s-Orie nted

(Client -Serve

r; OO) Service

-Orien ted

(Distri buted;

Intero perabl

e;

Hetero geneou

s; Real Time)

Security

Interfaces

Figure 6.6 Evolving Green systems architecture: Basic to linear process and then collaborative process-based architecture.

GEA, EI, and Green Supply Chains ◾ 197

technology-based opportunities for new green services. Ā ese are shown on the left in Figure 6.7. In order to de al with the a forementioned impact, the solution space of the enterprise uses many technologies. GEA facilitates incorporation of technologies in the Green IT solutions by providing the right interfaces and models. Figure 6.7, on the right shows these technologies as virtualization, Cloud c omputing, re al-time de cision m aking, sm art n etwork m anagement, s elf h ealing, a lign- ment, integration, and optimization (extending Sherringham, HRG, 2011). Ā e solutions spa ce has its own internal Green IT framework that encourages the solutions architects and the systems analysts to c ontinuously identify new a nd emerging technologies, model t hem to e xamine t heir repercussions, and eventually incorporate in the overall architecture of the organization. Ā e solu- tion space technologies are all aff ected by the identify-modify-incorporate phases. Ā e se technolo- gies are further expanded below:

Cloud Computing Ā e Cloud, a s mentioned i n Chapter 4, i s a si gnifi cant technology in the solution space. Cloud computing is already in use and, yet, there are many emergent aspects of it (they are discussed in Chapter 11). I dentifi cation a nd i ncorporation o f C loud-based so lutions b ring a bout i mmediate change in the carbon emissions of large data centers. Ā is is so b ecause, t hrough t he u se of t he Cloud, d ata a nd ap plications t hat were s tored a nd e xecuted w ithin t he d ata s ervers n ow t ran- scend the organizational boundaries. Ā e organizational data together with the new and updated green so lutions d ata i s s tored a nd e xecuted e xternally. C loud c omputing i n t he so lution spa ce leaves the organization to deal only with the remaining end-user computing devices and therefore

Internal Green Solutions Framework

Virtualization CloudComputing

Real time Decisions

Smart Networks

Alignment Optimization

Integration

Identify Modify GE

A f aci

lita tes

inc orp

ora tio

n o f

tec hn

olo gie

s in Gr

een

(IT ) S

olu tio

ns Incorporate

Internal Carbon Recording Services

External Carbon Reporting Services

SaaS based Implementation

Collaborative Green Services

New Green Market

Opportunities

Figure 6.7 Various aspects of a Green solutions architecture.

198 ◾ Green IT Strategies and Applications

limited carbon responsibility. However, this arrangement does shift the infrastructure outside the organization—so t he overall emissions, c alculated c ollectively between t he Cloud a nd t he orga- nization, m ay s till b e subs tantial. It i s i mportant, t herefore, i n a C loud c omputing sc enario, to explicitly discuss and document in the service contract the sharing of carbon emissions resulting from this shift in the infrastructure. It is only when the carbon responsibility is shared appropri- ately amongst the users and providers of Cloud computing that the overall reduction in carbon can be a scertained. However, si nce t he C loud merges t he i nfrastructure a cross m any organizations, it results in assured delivery of service and the sharing of risks—eventually leading to a n overall green advantage.

Virtualization Ā is solution space technology was also discussed in detail in Chapter 4. As a part of the solutions architecture, however, virtualization provides the basis for consolidation of the data center’s hard- ware that reduces the overall carbon emissions of the organization. Virtualization, as its name sug- gests, creates multiple operating views on the same physical machine resulting in much reduced use of hardware than if the servers were all physical. Carbon performance requirements from vir- tualization should be identifi ed, documented, and measured in accordance with the overall green strategies and objectives of the organization (discussed in Chapter 2). A green solution architecture will ensure, though, that the specifi c virtualization technologies are able to operate along with the new, SaaS-based implementations of the new systems.

Smart Networks Smart networks and their management make use of automated devices, sophisticated switch man- agement, o ptimized n etwork o perations a nd re al t ime rep orting o f t he n etwork p erformance. Effi cient network operations assure delivery at lower cost and improved environmental footprint. Further interesting developments in both the wired and wireless network architecture is the abil- ity of these networks and communications devices to self diagnose. As a result, these networks are able to make corrections to their links and thereby provide uninterrupted operations. Sherringham (2011, HRG) highlights how upgrading the organization’s communication networks can not only assure service delivery, lower operational costs, but also create a smaller environmental footprint. Incorporating t he s elf-healing c apabilities o f t he n etworks i n t he g reen so lutions spa ce cre ates opportunities for network effi ciencies in operations and thereby, reduces the overall carbon emis- sions of the organization.

Real-Time Decision Making Real-time decision making in the solution space is based on availability and delivery of informa- tion precisely a nd in t he context of t he need of t he u ser. Such real-time delivery of information is primarily a chieved t hrough m obile te chnologies, de vices, a nd applications ( Unhelkar, 2 009). Incorporation of mobile computing capabilities in the GSA provides two distinct yet interrelated advantages: (a) augments the real-time aspect of decision making. Such decision making also frees up s taff to sp end m ore t ime o n va lue-added s ervices. Travel t imes a re re duced w ith a ssociated environmental i mpact; a nd ( b) i mproved a bility to u nderstand a nd i nterpret c arbon d ata a nd information that can be used to fi ne-tune t he p erformance o f t he o rganization i n re al t ime to reduce the carbon emissions.

GEA, EI, and Green Supply Chains ◾ 199

Alignment Alignment o f d ata, p rocesses, a nd i nterfaces i s a n a rchitectural i ssue i n t he so lution spa ce t hat focuses on reducing the friction within and amongst the systems. Ideal Green IT solutions, there- fore, c an b e u nderstood a s a bsence o f c ontradictions a mongst d ata, p rocesses, a nd i nterfaces. Ghose and Biliau (2011, HRG) have further developed these ideas of a lignment by highlighting how an optimization architecture can help an organization align with its carbon footprint mini- mization. Ā ey have further described the need to understand how to measure (or monetize) the trade-off s between the local objectives of an optimizing factor and the global (carbon mitigation) objective of the organization. Ā is factor focuses the attention on modeling and investigating the impact of changes in data, processes, and interfaces in one aspect of the systems on the rest of the systems and the organizational functioning. Green IT systems need to be aligned with the existing organizational systems in order to have the desired positive impact of carbon reduction. If Green IT systems are themselves not aligned, they will create the friction mentioned above—resulting in waste of organizational energy.

Optimization Optimization i s c losely a ssociated w ith a lignment a nd de als w ith t he a lignment of t he solution technologies suc h a s t he s ervers, ap plications, a nd d atabases. Op timization, i n t he GS A, i s t he choice amongst possible alternative solutions that are aligned with the carbon footprint minimiza- tion objective of the organization. Ā us optimization includes mechanisms to incentivize an agent to adopt behavior t hat is potentially suboptimal relative to i ts own objectives, in t he interests of the global objective (Ghose and Billau, HRG, 2011).

Integration Ā is i s a m ajor a ctivity i n t he g reen so lutions spa ce t hat wo rks a cross t wo te chnological a reas: (a) integration of carbon data with green services and interfaces within an application; and (b) inte- gration amongst the diff erent applications themselves. Integration in the GSA is a detailed activity that requires independent discussion as undertaken next.

Contents and Integration with Service-Oriented Architecture An i mportant c hallenge i n t he solution spa ce re lating to g reen technologies i s t he r apidity a nd c omplexity of c arbon-specifi c changes. Ā ese changes primarily relate to carbon contents that comprise t he d ata i n ter ms of em issions a nd re gulatory bench- marks, as well as strategic information on what a collaborative group of companies are doing and performing in terms of their carbon credentials. Ā ese c arbon d ata a re going to b e a m ix of existing data that is modifi ed as well as new carbon data. Similar to t he c hallenge of e xposing t he legacy of C OBOL a nd IS AM data to the Internet-based user, this challenge of green data man- agement also requires substantial interfaces and integration. Ā e technology of WS together with the concept of SOA needs to be discussed in this context. Services are self-contained (and usually

Integration is a major challenge in imple- menting new GIS. Service orientation with WS is the answer. The SOA approach breaks down large software applications and systems into sets and subsets of smaller, manageable components called services. These services then provide the building blocks of many different kinds of business applications and business processes. They can thus be used for creation of Green IT services and applications.

200 ◾ Green IT Strategies and Applications

object-oriented) software components that have well-defi ned interfaces. Information systems based on t he c oncept of off ering a nd c onsuming of s ervices a re c onsidered s ervice oriented i n n ature. Ā erefore, a software architecture that comprises many self-contained services and which process data and information through the interfaces of these services is known as SOA. SOA enables most software applications to easily off er and publish, as well as locate and consume services.

SOA, i n t he so lution spa ce, u tilizes web s ervices ( WS) to p rovide t he ba sis fo r i nformation systems architecture that assimilates software contents and corresponding software components. Ā e c ore c ontent a nd t heir w rapping b y t he f unctions a re sh own i n Figure 6 .8. Ā e contents, however, a re s ourced f rom m yriad p laces in cluding in ternal a nd ex ternal co ntributors s uch a s employees, customers, and users as well as the various regulatory governmental bodies. WS take these functions further and expose them over the Internet. As a result, green solution architectures that incorporate WS-based applications open up opportunities for the contents to be received and exported g lobally t hrough c ollaborative WS. Ā ese c ollaborative WS i nterfaces a re dy namically created, consumed, and dispersed. Ā is exchange of green contents includes exchange of core data types belonging to the GIS, message formats, and communication protocols. WS-based interfaces enable exchange of information irrespective of the specifi c platform or vendor specifi cations. Ā is enhanced a bility of i nformation s ystems to c onnect a nd c ommunicate w ith e ach other leads to a collaborative opportunity for green enterprises. Ā is is based on the fact that a ll green-specifi c software entities are now able to interact with each other over the Internet irrespective of their underlying platforms.

Services lend themselves to reuse and integration in many diff erent ways. Ā e characteristics of these services with respect to a collaborative business model are (a) self-contained so that they are able to p rocess data a nd information w ithin t hemselves, (b) having a we ll-defi ned interface with the intention that inputs to a nd outputs from these services can be easily understood, and (c) available for communication—that is they are Internet enabled.

Ā e ability of executable services being made available across diff erent communication chan- nels enhances collaboration. Ā is services-based approach also results in overall less software code, lower cost of developing and deploying software solutions, and increased standardization

Within Organization’s

Data Warehouse

Green Contents

Green Functions

(Applications)

Inputs

Outputs

Push versus Pull

Web Service Interfaces (External)

Internal Processing &

Reporting

Green Services

Figure 6.8 Sourcing and dissemination of green contents through functions and services.

GEA, EI, and Green Supply Chains ◾ 201

(Hazra, 2007). Such SOA approach together with the use of Web as more than mere communi- cation tool (i.e., Web 2.0) facilitates communicating, connecting, collaborating, and expressing information in new ways.

SOA provides opportunities for integration of va rious business applications at t he enterprise level. An example of the practical application of SOA in green integration is shown in Figure 6.9. Ā is fi gure sh ows fo ur m ajor g roups o f ap plications t hat a re b enefi tted b y a se rvice-oriented approach to the GEA.

CEMS—has to deal with new green (carbon) data, as well as modeling and implementation ◾ of new green services. Ā e data and information are then processed and are available to other services that are calling them. Green CRM—primarily deals with modifi cation of data models that will accommodate the ◾ elements of carbon emissions in them. Mostly external. Green SCM/ERP—also has to deal with modifi cation of data models that will enable inven- ◾ tories and other operational information to be expanded to include carbon data. Regulatory—deals w ith t he l egal a nd o ther c ompliance a spects t hat a re p rovided b y t he ◾ relevant authorities through a regulatory portal through a web service.

SOA p otentially f rees up t he organizational re sources to fo cus on optimizing its c arbon p erfor- mance rather than the underlying technologies and systems. Each service has three basic features (Hazra, 2010) of a service: modularity, granularity, and loose coupling. Modularity enables carbon data to be properly encapsulated and then exchanged with other data and systems; granularity of a service deals with the level of abstraction incorporated in a service; and, fi nally, loose coupling

Green ERP/SCM [Modified Green Data]

Regulatory Portal

[Governmental Carbon Standards,

Benchmarks]

CEMS [New Green

Data]

Call Centre Systems Green CRM

[Modified Green Data]

Application Server

Services Repository

Process Repository

Messaging Organizational

(Green) Portal)

Data Repository

G re

en S

er vi

ce s O

ri en

ta tio

n

Figure 6.9 Detailed Green-SOA (this fi gure is a 3-dimensionsal top view with the center part of the fi gure indicating height).

202 ◾ Green IT Strategies and Applications

separates s ervices f rom e ach other, t hereby en abling i mplementation of GIS w ithout d isturbing the existing services that support the business fl ows. Enabling easy sharing and exposure of infor- mation, SO A a llows we ll-defi ned m essage fo rmats to e xchange d ata. Figure 6 .9 f urther sh ows these various layers of repositories in a SOA:

Data repository is made up of data that belong to each of the four groups of systems. Ā e ◾ data repository integration should be kept to minimum, as existing data will require sub- stantial eff ort. Application server that enables data to be analyzed. ◾ Services repository that provides storage, consumption, and exposure of WS. Services, thus, ◾ encapsulate application logic with a defi ned set of interfaces and make these interfaces pub- licly available. Process repository that creates processes based on services. ◾ Messages that eventually provide the integration amongst the various layers of a SOA. Ā es e mes- ◾ sages form the building block of support for collaboration and coupling of remote resources.

Green Supply Chain Management Supply c hain m anagement (SCM) s ystems a re a n i ntegral pa rt of o rganization’s s ystems, a s w as sh own e arlier i n Figure 6 .3. Ā erefore, they deserve specifi c attention when the GE A is dis- cussed. Figure 6.10 highlights t he results f rom t he Trivedi a nd Unhelkar (2010) survey that depicts this importance of vari- ous a spects o f a su pplier re lationship a nd t heir en vironmental responsibility. Ā e need to bring together the suppliers, custom- ers, employees, a nd senior management in order to p roduce a n integrated a nd effi cient su pply c hain t hat w ill re duce c arbon emissions c annot b e o verstated. Ā e SC M o f a n o rganization needs to be analyzed, planned, and optimized for sourcing and deliveries in an environmentally conscious manner. All modern- day su pply c hain s ystems a re web -based. U ndoubtedly, t hese electronic ( Internet-based) s ystems de liver t he en terprises w ith a competitive advantage by opening up opportunities to stream- line processes, reduce costs, increase customer patronage, and

enable t horough p lanning a bilities. SC M t hus i ncludes g eographical, re lational, en vironmental considerations b etween b uyer a nd su pplier. G reen i ssues re quire f urther at tentions a s d iff erent legislations apply to the integrated supply chain management (ISCM) across regional boundaries. Cross-borders l ogistics, c ulture, l anguage, a nd e conomic a nd re gulatory c limate a re a dditional considerations which can aff ect the integration of business processes between regional offi ces and external organizations. One ill-performing participant in the supply chain will aff ect the perfor- mance of the entire supply chain (Strausl, 2001).

Ā ese characteristics of a good ISCM now need to be converted to handle the environmental issues related to the supply chain. Following are the advantages of GISCM:

Reduction in unwanted inventory through accurate identifi cation of material requirements ◾ within the integrated process leads to re duced storage space a nd less materials resulting in corresponding carbon savings.

Green supply chain systems, especially with mobile technologies incorporated in them, are a major component of GEA. They reduce inventories, costs, and carbon. However they require contract negotiations. SCM have evolved rapidly to automate and opti- mize the lifecycle of material procurement. Similarly, SCM are also integral to procure- ment and use of equipments and correspond- ing infrastructure. (Lan and Unhelkar 2005) Integration with supply chains has also been studied resulting in integrated SCM (ISCM). Unhelkar and Lan (2011) have extended the concept of ISCM to incorporate environ- mental considerations within them resulting in Green integrated supply chain manage- ment (GISCM) that brings together various stakeholders in the supply chain within and outside the organization.

GEA, EI, and Green Supply Chains ◾ 203

Improved usage of infrastructure/equipment through sharing of resources reduces number ◾ of equipments and infrastructure needed. Reduction in carbon overhead relating to material transfer and storage. ◾ Optimize the number of people that need to handle material on their way to the end cus- ◾ tomer, thereby reducing the carbon content of that process. Eliminate business processes that do not add direct value to t he most optimum movement ◾ of goods, thereby reducing carbon. “Buy-in” from customers by enabling them to provide input into the design and manufac- ◾ turing of the goals or services that can be based on green initiatives. Real-time integration and improved logistics of distribution centers reduces carbon. ◾ Planning t he dem and a nd su pply, m anagement o f i nfrastructure p lanning, a nd p lanning ◾ the production includes environmental consciousness and metrics. Sourcing of materials, services, maintenance of catalogs, collaborative supply management ◾ of electronic payments are integrated and measured to ensure reduction in carbon. Integration in supply chain enables optimum product lifecycle management, demand plan- ◾ ning, production management, and event management. Ā ese activities are improved with reduced c arbon a s t hey a re a ll integrated together w ith t he production, quality a ssurance, packaging, and distribution. Disposal of electronic waste and consumed products is handled much better with integrated ◾ supply chains and systems. Improved and eff ective handling of returns from customers, especially as the organization ◾ that provides the material in the supply chain is in the best position to also accept returns from customers.

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Figure 6.10 Organization’s supply chain and procurement management.

204 ◾ Green IT Strategies and Applications

Mobility in Green Supply Chain Management Mobile t echnologies i n S CM e nables bu siness t ransactions to b e lo cation i ndependent, r educes unnecessary inventory and transportation of material (Unhelkar, 2009). Ā us, a mobile not only adds value to the businesses but also opens up opportunity that enable the organization to handle environmental i ssues. F or e xample, t he m obile fl ow o f i nformation c an cre ate g reater so urcing opportunities for raw materials and their locations—resulting in long-term eff ects such as reduc- tion in stocks and holding costs (see Borri et al., 2005 for an interesting early discussion on mobile and green). Ā e WS (XML, SOAP, UDDI, and WSDL) standards on mobile gadgets can simplify information e xchange a nd o ptimize su pply c hain b usiness p rocesses w ithin t he en terprise a nd between supply chain partners.

Environmentally sound processes together with mobility can be eff ective in vendor assessment, total quality management, lean and collaborative supply strategies. Mobility in integrated supply chains enable real-time analysis of relevant consumer attitudes, legislation, and concepts in envi- ronmentally so und m anagement t hat i ncludes l ifecycle a nalysis, w aste m anagement, re cycling, and product procurement.

Mobile supply chain management (MSCM) can bring together, dynamically, factors such as number, location, a nd si ze of w arehouses; c orresponding d istribution c enters a nd f acilities; a nd relationships with distributors a nd customers. MSCM bring together technology infrastructure, demand planning, forecasting, sourcing, production, logistics, scheduling, inventory, a nd trans- portation that are also supported by mobile devices.

MSCM can also use radio frequency identifi cation devices (RFIDs) to improve material handling in distribution logistics. At individual customer levels, shipping, receiving, and store deliveries are also improved through mobility resulting in optimized business processes and reduced carbon emissions.

Ā ere are numerous applications of mobility in SCM that can help an organization in its carbon reduction eff ort. For e xample, i n c ase o f t he organization’s t ransport a nd fl eet logistics, mobile technologies help improve and optimize processes such as mobile rerouting, mobile order tracking, mobile package tracking, instant messaging, exception a lerts, vehicle tracking, mobile reporting, f uel t ax c alculations, GPS, route, a nd vehicle i nformation a nd i ntegration to va rious data co llection d evices. Ā e re sultant i mprovement i n e ffi ciency a nd a ccuracy i n l ogistics a nd material handling would all also reduce the carbon contents of these processes.

Mobility solutions and services in the SCM ensure that supply chain information and statistics will be accessible to the organization on an anywhere, anytime basis. Ā is results in reduction in carbon together with an increase in productivity, customer satisfaction, and employee satisfaction.

Building Environmental Criteria into Supplier Contract Conditions GISCM can include environmental criteria within its contracts. Ā ese contracts can be at multiple levels. For e xample, a su pplier a grees to si gn a c ontract t hat requires it to p roduce a nd supply a gadget that has a sp ecifi ed, low-carbon emission. Ā is would be a one-off action. However, then the contract at the next distribution level, may apply to an environmentally conscious delivery of supplies every time.

Table 6.1 lists some criteria that need attention during negotiating a contract. Ā e d iscussion t hus f ar h as o utlined t he si de o f GE A, i ts re levance i n re ducing t he r isks

in i mplementing G reen I T, t he o rganizational s ystems a ff ected b y G reen I T, t he e xtension o f

GEA, EI, and Green Supply Chains ◾ 205

a basic three-tired architecture to a c ollaborative Green architecture, a lignments and optimiza- tions, i ntegration, a nd t he GSC M. Ā e subsequent discussion brings all of this together into green portals.

Green Portals in Green Enterprise Architecture Ā is section discusses the creation and use of Green ICT portals and the consequent use of information. Ā e discussion on con- tents, de scribed e arlier i n Figure 6 .8, fo rms t he ba sis fo r t hese Green I CT p ortals. De shpande a nd U nhelkar ( HRG, 2 011) have discussed several aspects of collecting data and information relating to green portals. Ā e fi rst one is the possible sources of green i nformation. Ā e s econd a spect i s t he sc ale of t his g reen information that is available at any given time. Ā e third aspect combines re liability a nd re levance of t he ava ilable i nformation to t he organization i n question. A fter g athering t he re levant i nformation, it h as to b e a nalyzed and m ade ava ilable to m anagement, em ployees, a nd c ustomers, ke eping i n v iew t heir s eparate perspectives.

Green ICT portals can collect (source) and provide (disseminate) information in various ways. Outsourcing, i n-sourcing a nd “crowd-sourcing” a re ap plications o f d istributed p roblem so lving and production models.

Figure 6.11 depicts t he e xternal a nd internal a spect of t hese d ata collections a nd d issemina- tion s trategies for a n organization. A G reen ICT i nformation p ortal would h ave e xternal a gen- cies, te chnologies, a nd ontological e lements supporting its d ata c ollection s trategy—external to the o rganization. Ā e i nternal s takeholders, so lution spa ce te chnologies (such a s SO A a nd WS discussed earlier) and access media will form part of the internal strategy for carbon data for the portal.

A portal is an electronic means for an orga- nization to interact with the external world. A green portal will be specifi cally focused on carbon data and information. Portals provide the organizations with what they want to know collaboratively—across other organizations, government agencies, and standard bodies (that are entrusted with benchmarking and regulating the carbon emissions).

Table 6.1 Supplier Contract Conditions in the Context of Environmental Intelligence

Supplier Contract Condition Comments from EI Perspective

Certifi cation Proves the green credentials of the supplier. Ensures compliance. This would apply to all dealings with the supplier, externally auditable.

Maturity Shows the ability of the supplier to repeat carbon- effi cient processes in providing materials and services. This criteria is applied to all iterations of the process.

Supplier’s supplier Enforceability of collaboration amongst a suite of suppliers.

Attitude Indicates the sociocultural factor of the organization. This is the least measurable of all in a supplier contract.

Reactivity and Responsiveness Ability of the suppliers to respond to increases in carbon outputs along the supply chain.

206 ◾ Green IT Strategies and Applications

Figure 6.12 shows a combination of these strategies that evolve into the Green ICT informa- tion portal. Ā is portal i s shown at t he c enter, w ith sources a nd de stinations of i nformation on either side of the portal. Ā e left side of the portal in Figure 6.12 corresponds to information com- ing from external sources. Ā ese are the content providers for the portal. Ā e right of the portal, in Figure 6.12, corresponds to the internal sources and destinations for information. Ā ese are the content consumers who, in turn, provide internal information. Ā e arrows show the direction of the fl ow of information into and out of the portal.

Ā e green contents are rapidly changing dynamic contents that are usually diff used amongst various a gencies a nd media w ithin a nd e xternal to t he organization. E xamples of suc h a gencies include ICT organizations, governments, industry, research organizations, a nd standard bodies. For example, companies, such as Intel, IBM, Microsoft, Oracle, and Google, as well as profes- sional organizations s uch a s ACM, B CS, a nd IEEE f orm p art of a gencies providing a nd using carbon data. “Government” sources could be local, state, or national. “Research centers” include research institutes in general with specifi c projects in Green ICT or specialized research institu- tions concentrating on Green ICT like GreenGrid or more general ones, like IPCC. “Standards bodies” cover standards as well as legislations dealing with carbon data for the Green IT portals.

Business Intelligence and Green IT Business intelligence (BI) was discussed in the very fi rst chapter as a basis for EI. Ā erefore, BI is an important consideration on a GEA. Ā ere is a phenomenal amount of intelligence that exists in business. Ā is intelligence, which is more than mere analysis of data and information, is gleaned from the various systems of the organization (such as ERP, CRM, HR, and SCM), corresponding

Internal Stakeholders

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Portal

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Information Gathering

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Information Dissemination

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Figure 6.11 Elements of a Green ICT information portal. (Based on Deshpande, Y. and Unhelkar, B., Information systems for a Green organization. In B. Unhelkar, ed., Handbook of Research in Green ICT: Technical, Methodological and Social Perspectives, pp. 116–130. IGI Global, Hershey, PA, USA, 2010.)

GEA, EI, and Green Supply Chains ◾ 207

processes and vast amount of underlying data in multiple formats. BI can be thought of as a rich matrix of applications that access, collect, store, process, and analyze data within and outside the organization to produce new bodies of knowledge. Decision support system (DSS), online analyti- cal processing (OLAP), statistical analysis, forecasting, and data mining are examples of BI tools (see Bryla and Merchant, 2009, for BI tools) that need to be revisited from EI perspective, wherein they help to reduce the number of data services and, thereby data centers.

Ā is intelligence garnered by the business also has immense potential to improve its environ- mental credentials.

Ā ese various elements of an organization’s intelligence that are embedded in its systems and data emerge as invaluable decision-making tools when they all work together. Ā is systems-level collaboration and correlation results in ongoing improvement in customer service and optimiza- tion of business activities. Ā e creation of this collaboration a nd correlation is BI (see Bryla a nd Merchant, 2 009). B I i s t he p rocess o f u sing c ollective i nformation w ithin t he o rganization to optimize its business performance, enhance its customer service, and provide it with overall com- petitive advantage and sustainability (Unhelkar and Tiwary, 2010).

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Figure 6.12 Inputs and outputs in a Green ICT information portal. (Based on Deshpande, Y. and Unhelkar, B., Information systems for a Green organization. In B. Unhelkar, ed., Handbook of Research in Green ICT: Technical, Methodological and Social Perspectives, pp. 116–130. IGI Global, Hershey, PA, USA, 2011.)

208 ◾ Green IT Strategies and Applications

BI p rimarily wo rks to e xchange a nd a nalyze i nformation t hat re sides i n i nformation si los. Ā e c hallenge for t he organization i s to c orrelate t hese va ried pieces of i nformation—and t heir subsequence analysis—in a cohesive whole so as to assist the organization with its environmental eff orts. For example, an operational support system (OSS) in a telecommunication company will have a need to c orrelate its switch maintenance information to t he billing support system (BSS). Ā is c orrelation w ill h elp t he o rganization u nderstand a nd p rioritize i ts s witch u pgrades ba sed on the clusters of customers and their bill payment patterns. A f urther correlation between these data entities and their carbon emissions data can also be made. Another example can be from the health domain. An electronic patient record (EPR) system needs to correlate with an accounting or HR system in a hospital to be able to glean knowledge on planning and organizing patient services. E ff ort c an b e m ade to e xtend t hese n ew b odies o f k nowledge to s ee t heir re lationship with, say, the electronic wastage from hospital information systems, or the ratio of patients to data center em issions. BI to ols a re helpful i n c orrelating a m yriad (and at t imes s eemingly u nrelated pieces of ) information into actionable insights. In the earlier examples, the telecom company can take action on continuing with the existing switch gears or upgrading them. Similarly, the EPR together with the HR system can help in scheduling the right staff for the patients on an almost real-time basis. Ā is BI can be categorized according to domains and sectors in business and the portal could help in setting the standards and benchmarks specifi c to domains and sectors based upon the information presented by BI.

Furthermore, BI tools can adapt to diff erent ways of presenting the information and in a time and place of the users preference. For example, videos and other graphical means may replace a printed or tabled daily or weekly report. Mobile devices used in BI systems can make further enhancements to the user experiences. Ā e potential of BI in the environmental space is discussed next.

The Environmental Intelligence Domain Business intelligence has tremendous potential for application in the m odern-day en vironmentally c onscious b usiness wo rld. I n fact, t he business environment to day m andates a h ighly i ntelli- gent approach that would make optimal use of all resources avail- able to an organization. Ā e environmental i ssues of a b usiness are not too far removed from the issues of business effi ciency and customer service. However, care needs to be taken to ensure that the environmental considerations of business do not embroil the business in expensive and, occasionally expansive, projects ema- nating o ut o f i ts g reening e ff ort. For e xample, a n or ganization embarking o n en vironmental c onsciousness sh ould n ot a dd to the already existing complexities of data warehouses and business systems in the organization. A nother simpler example would be that a re duction i n pap er u sage by t he organization should not result in greater use of server space. An environmentally astute approach would make use of existing intelligence, without over- loading it, to enable the organization to achieve its environmen- tal o bjectives. E I h as b een d iscussed b y U nhelkar a nd Trivedi (2009a, 2009b, 2009c) in va rious ways. Ā eir approach focuses on extending and applying BI toward EI.

BI can be considered as a technology that enables users to not only access historical and current data but to also create new cor- relations. These new correlations between data items produce insights that are used in business—to optimize processes, enhance customer experience, and reduce inven- tories. BI systems typically include online analysis, reporting, data mining, provision of consolidated dash boards, and enabling business performance management. Combining people together with the afore- mentioned technologies and processes fur- ther enhances the capabilities of BI.

EI combines tools, architecture, data- bases, data warehouses, business per- formance methodologies, and quality initiatives in order to produce environ- mentally responsible decisions and action. EI is further enhanced by the availability and application of mobility that enhances decision support system (DSS), executive information system (EIS), and knowledge management system (KMS).

GEA, EI, and Green Supply Chains ◾ 209

Ā is discussion extends BI to the EI domain. Ā e evolving nature of EI systems implies usage of incremental data, information, processes, and knowledge toward intelligence. EI system will be implemented with WS and Cloud computing. Ā e ICT systems and the corresponding processes also contain signifi cant checks and balances in order to ensure the implementation of the strategy. For example, a system supporting recycling eff ort of the organization ensures that the benchmarks set for recycling eff ort are met by the organization. A system calculating and estimating the move- ment of “fi eld engineers” provides a count on the reduction in overall miles traveled by those staff members as a result of the green initiative by the organization. Ā e checks and balances provided by t he ICT s ystem for E I becomes a “ core” r ather t han a p eripheral re sponsibility of businesses and, therefore, provides ongoing input into the core business decision making.

EI s ystems c onsist of t he to ols, te chnologies, a nd processes that turn environmental data into information a nd k nowledge that o ptimizes de cision m aking. E I p rocesses en sure e ff ective and effi cient use of green enterprise resource a s well a s compli- ance of the enterprise with its green policies and procedures.

EI s ystems b ring tog ether i nformation, k nowledge, a nd intelligence related to all business activities with other members (organization/business) of the value chain. Similarly companies can utilize WS a nd mobile technologies for collaborative EI on mobile I nternet. E IS a llows c ompanies to b enefi t f rom we ll- coordinated eff ort of mobile devices, w ireless networks, mobile Internet, and mobile WS.

Ā us EI can be considered as an excellent enabler of environ- mental i nitiatives t hrough t he u se of a n organization’s e xisting BI capabilities. EI aims to expand and update the existing appli- cations to now handle the environmental aspect of the business operation. Figure 6.13 depicts an overall view of the EI domain. Externally, this domain is made up of systems and interfaces that deal with regulatory portals, design portals (aimed at green product design), interfaces to various business partners (as a part of business ecosystem), systems for environmental strategies (futuristic scenarios), and normal mea- surement a nd reporting systems (CEMS). Ā ese systems a nd interfaces, a s a lso shown in Figure 6.13, are based on people (HR), suppliers, marketing, customers, and asset management systems. Ā ese s ystems e xist i n t he o rganization a nd a re u pgraded to p rovide h elp a nd su pport to t he external interfaces. Ā e f undamental ba sis of t hese s ystems a nd interfaces, however, is t he d ata- information-process-knowledge base that is shown in the inner circle in Figure 6.13. Ā is EI base is further expanded based on its evolving complexity.

Environmental Intelligence Systems’ Evolving Complexity Figure 6.14 shows the evolving complexities of EI systems. Ā ese evolving complexities a re of data-information-process-knowledge, eventually leading to highly collaborative and complex EI that is a combination of myriad data, systems, and insights. Ā is evolving EI complexity is under- stood as follows:

(a ) Data: Identifi cation of carbon data related to equipments (gadgets) across the company that generates g reenhouse g ases; P rovisioning t he s tep-by-step c ollection a nd c ollation o f t he

According to a Gartner survey of CIOs, EI projects were the most important technol- ogy priority for companies in 2007. EI has been defi ned in many different ways in the literature with different context and mean- ings. EI can be considered as an umbrella term that encompasses integrated suite of tools, architecture, databases, data ware- houses, performance management, and methodologies. The EI can also refer to pro- cesses, techniques, or tools to support faster and better decision making for environmen- tally responsible strategies.

Incorporation of mobile and communi- cation technologies in collaborative business ecosystem can add EI to the current BI. The increasing awareness of the adverse effect of current business activities on the environ- ment will force the corporate sector to add EI with mobility to help our earth go green.

210 ◾ Green IT Strategies and Applications

Regulatory Portals [Service Interfaces to Government]

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es s E

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Figure 6.13 The environmental intelligence. (Systems Doamin—Based on Unhelkar, B. and Tiwary, A., Collaborative intelligence, Cutter IT Journal. In Dave Higgins, ed., Business Intelligence 2010: Delivering the Goods or Standing Us Up? Vol. 23, No. 6, 2010.)

Data • Carbon Emissions Data Warehouse • Efficient Data Centre Strategies

Information • Analysis through CRM, SCM/ other ERP for green • Basic use of CEMS for Reporting

Process • Green Process Re-engineering (with BPM/UML) • Process Models, Optimization and Maturity (CMM for green) • Tools for GPR (Aris, VisualParadigm, Visio etc.)

Knowledge • Collaborative Technologies (Cloud, SOA) • Integrate CEMS with existing Buss. Apps • Estimates & Compliance (Legal Interfaces)

Intelligence • Semantic Green Enterprise (green correlations, action) • People-Machine Continuum (green insights) • Experience/Inferences (future green strategies)

En vi

ro nm

en ta

l

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Figure 6.14 Evolving complexities in environmental intelligence systems.

GEA, EI, and Green Supply Chains ◾ 211

carbon-related data within the organization. Incorporating mobile technologies in business processes to m easure a nd report on c arbon d ata. A dding i ndirect c arbon d ata (such a s by other partners). Storing of carbon data in data warehouse with a provision of enabling inter- faces with other data. Security of reporting data.

(b ) Information: Analysis and processing of the data in order to provide information to all par- ties c oncerned re garding t he c arbon-position of t he organization. E nvironmental t ransac- tions a re re corded a nd p rocessed h ere i n o rder to p roduce va luable i nformation. S etting up i nterfaces w ith t he u rban de velopment a nd planning s ystems a nd services provided by local governmental bodies (such as councils)—again through service-oriented technologies and t he C loud. P roviding de tailed a nd t imely fe edback to t he de cision m akers/strategists through a systematic program of green metrics and measurements.

(c ) Process: Optimizing procedures and controls within the organization using the concepts of business process modeling (BPM) to ensure effi ciency; developing an understanding of pro- cess maturity in the context of green processes. Infl uencing business partners to change their business p rocesses to re fl ect en vironmental aw areness—as pa rt o f t he b usiness e cosystem that has evolved around WS-based communication.

(d ) Knowledge: Incorporation of external climate change data such as those provided by gov- ernmental b odies o r o ther t hird-parties, i nto t he i nternal s ystems o f t he c ompany b y using WS a nd Cloud computing fundamentals (discussed in detail later in this chapter). Forming ba sis for new i nsights t hat c an b e a cted upon. Ā e i ntelligence a spect of t hese systems comes into play when stakeholders such as employees, customers, and partners are enticed to pay at tention to t he environmental issues through their actions and use of the systems.

(e ) Intelligence: Ā is is the semantic green enterprise. Ā is is where the systems embrace people- machine continuum. EI system requires two major activities from an organization: upgrad- ing e xisting B I s ystems to i ncorporate en vironmental d ata, i nformation, p rocesses, a nd knowledge; and, analyzing, designing, developing, and deploying systems that are specifi c to the environmental needs of the organization. Ā e new Green ICT systems may integrate with existing applications through interfaces. EI system bring together data and information from ex isting da tabases co ntaining o rganization-specifi c i nformation, t hrough i nterfaces with s ystems o utside t he o rganizational b oundaries ( e.g., pa rtner o rganization’s s ystems or an SCM) as well as with government and related regulatory databases and standards. According to Azvine et al. (2006), EI comprises technologies like data warehouses, analyti- cal to ols, a nd rep orting to ols. Ā us i ntelligence i s a c ombination o f g round-up G reen I T systems, existing BI systems, and organizational processes that combine them with the tacit knowledge carried by people.

Communication Channels in Environmental Intelligence Environmental intelligence, as mentioned earlier, combines not only myriad systems through cor- relations, but a lso s ynergistically brings i n people. Figure 6.15 shows t he va rious ways i n which the EI systems interface with people. Ā is is important in a GEA that has to incorporate systems intelligence (shown on the right in Figure 6.15) with the human intelligence (shown on the left). Ā e iterative infl uence of systems on stakeholders, and vice versa, is through the various commu- nication channels shown in the center in Figure 6.15.

212 ◾ Green IT Strategies and Applications

Environmental Intelligence Implementation with Web Services Figure 6 .16 sh ows a n E I i mplementation u sing C loud c om- puting a nd WS. Typically, t his would be either a C EMS or a n existing ER P s ystem t hat is s pecifi cally upgraded to deal with data, i nformation, a nd p rocesses en vironmentally. Trivedi a nd Unhelkar (2009) have emphasized that WS form an excellent basis for c ollaborating w ith multiple organizations a nd re gula- tory bodies for environmental action. WS can be used to create and modify environmental services that would integrate carbon information si los by connecting t hem, a nd providing real-time reporting features to decision makers. Ā is would result in an EI implementation using SOA.

Figure 6.16 elaborates how WS can be used in the business environment to measure, monitor, and fi nally help for the process optimization with respect to the environmental factors. With the help of the tools such as Green web services (GWS), business can begin to develop EI systems, implement them in the business, monitor, measure, and mitigate the emissions and monetize the process (Trivedi and Unhelkar, 2009). Process improvements not only improve the compliance and performance but also decrease the business cost. GWS will facilitate service i nteroperability a cross platforms, applications, a nd programming l anguages t hrough t he use of standards refi nement and integration into profi les. Using GWS presents an organization an opportunity to take advantage of environmental services off ered by other organizations and third parties, as well as government rules and regulations.

IBM’s Green Sigma process can be consid- ered here in the context of SOA. That is a fi ve-step process which starts with the defi - nition of the emission, establishing a baseline for measurement and metering, deploying a carbon monitoring dashboard console, process optimization, and fi nally manage- ment/compliance (Dzubeck, 2008). Carbon emission monitoring is a dynamic real-time concept that makes use of SOA-WS to mea- sure, control, and optimize carbon emis- sions. Furthermore, SOA-based EI can be employed to track and account for carbon credits and eventually trade them.

Voice

SMS

E-mail

Blogs

Fax

Podcasts

IVR

Face-Face

Normal mail

Channels Stakeholders

Mu ltip

le

Cu sto

me rs

(In clu

din g

Co rpo

rat e)

Customers

Suppliers

Employees

Leaders

Systems

Communication

ERP Data

CRM Data

Product Data

Supplier Databases

Financial Data

Wikis

Tweets

Brochures

Adverts

El In

te rf

ac es

El in

sy st

em s

Figure 6.15 Environmental intelligence—people to system interactions.

GEA, EI, and Green Supply Chains ◾ 213

Environmental Intelligence with Mobility Mobility has t he potential to f urther en hance t he d ata sharing among t he E I ap plication. Ā is is s o bec ause m obility e nables location in dependent da ta s haring. M obility r educes a ccess times, o ptimizes e ntering o f da ta, a nd o ff ers location-based insights. Mobile Internet can provide the platform for accessing data using mobile devices, database as well as WS. Mobile net- works (discussed in Chapter 3) can optimize search techniques, provide location-specifi c data, and make that data available any- where, anytime.

Ā e E I re sults f rom a n i ncreasing a nalysis a nd c orrelations between si los o f i nformation, a s sh own e arlier i n Figure 6 .14. Enterprises a re l ooking at t he e ff ects a nd u se o f m obility to extend the EI solutions. EI systems involve and employ mobility solutions to coordinate offi ce, fi eld, and home decision making. Figure 6.17 e xtends t he E I c oncept w ith mobility. Ā e correla- tion of environment-related information and utilizing that information in a k nowledge manage- ment system can lead to environmental intelligence systems (EIS). Mobility is a key player in EIS. Figure 6 .17 sh ows h ow, s tarting w ith sub jective ( tacit) o bservations, a nd re cording t hem ( and

Mobility can play a vital role for the sus- tainability of a business, and sustainable businesses provide impetus for economic growth as well. Thus, mobility has a role to play in the environmentally responsible business strategies that make an organiza- tion sustainable which, in turn, makes it a long-lasting and profi table organization. Mobility can be said to help the business be EI. Mobility enables virtual collabora- tion between business and individuals. Reengineering the business processes with mobility provides enormous opportunities for virtualization. The more virtual a busi- ness is, the less physical resources it will consume—therefore, well-modeled mobile processes greatly assist in creation of envi- ronment friendly businesses.

Green Business Solutions

Green: • Business Process • Business Services

• Business Products

Green Process Optimization;

Green Maturity & Compliance

Environmental

Knowledge base [uses Data,

Information, Processes]

Green Service

Provider

Green Business

Architecture Portfolio

Govt. Rules

& Regulations

Cloud

Provide

For

Consume

Is Embedded

In Accesses

Green capabilities can be Implemented using Web Services

Green Web Services (SaaS is an option) are composed of

Answer to many Business Solutions

Figure 6.16 EI implementation using Cloud/web services (From Unhelkar, B. and Trivedi, B., Chapter XI, Role of mobile technologies in an environmentally responsible business strategy. In B. Unhelkar, ed., Handbook of Research in Mobile Business: Technical, Methodological and Social Perspectives, 2nd ed., pp. 214–232. IGI Global, Hershey, PA, USA, 2009; and Unhelkar, B. and Trivedi, B., Merging web services with 3G IP multimedia systems for providing solutions in managing environmental compliance by businesse. In Proceedings of the Third International Conference on Internet Technologies and Applications (Internet Technologies and Applications, ITA 09), Sep. 8–11, 2009, Wrexham, North Wales, UK, 2009a. With permission.)

214 ◾ Green IT Strategies and Applications

making t hem explicit), t he organization c an move up toward k nowledge a nd w isdom related to the environment. Mobility is a si gnifi cant factor on the quality of life of individuals and society as a w hole ( Unhelkar, 2005, 2009, M ETM). A pplication of mobility to B I re sults in mobile EI that combine enterprise information access with mobile devices like mobile phones, PDAs, smart phone, the BlackBerry, and other handheld wireless devices (based on Turban et al., 2006). Such combination can enable the production of carbon-specifi c BI reports, key performance indicators (KPI), and business analytics.

EI c an i nterface w ith m any e xisting en terprise s ystems suc h a s t he de cision su pport s ystems, executive information s ystems a nd k nowledge management s ystems, a s d iscussed by (Clark et a l., 2007; Watson and Wixom, 2007). Mobile EI is the successful collection, evaluation, and application of information by the business leaders and users using mobile gadgets, networks, and processes.

EI c an t ake advantage of mobile d ata a nd i nformation on potentially wasteful use of materials, energy, space, and labor. Ā is data can then be converted into intelligence. Information on labor usage, physical work space, process fl ow, set up times, and management concepts such as lean systems and kaizen can all be used, in real time, through mobile technologies, for car- bon reduction. For e xample, k aizen i s a m indset t hat a ims to improve t he e ffi ciency of any organization by primarily dis- couraging any idle inventory. Ā rough mobile SCM (discussed earlier) kaizen can dramatically reduce emissions. [kaizen aims

to m eet t he dem ands o f t he c ustomers to h ave de liveries o n t ime, sh orten t he de velopment cycle t ime, a nd b e a ble to fo recast t he dem and fo r t he p roducts a nd s ervices w ith m inimum margin o f e rror.] Ā ese o perational b usiness p rocesses o f a n o rganization c an b e o ptimized substantially by t he re al-time mobile u sage. Mobility i mproves t he decision-making processes

EI with mobility has four technical areas: data warehouse, business analytics, busi- ness performance management, and a user interface. EI data warehouse sources data from organizational systems (e.g., CRM, ERP) to support decision making. The data warehouse can then be subjected to online analytical processing (OLAP) wherein data is drilled-down and rolled-up for analysis (based on Kimball et al., 1998).

Observation by Individuals and Organizations on Environment

(Subjective)

Convert Observation to Environmental Data through Mobile Gadgets

Analyze Environmental Data to Produce Information

Share, Practice, Collaborate (in a Location-Independent Manner— towards Environmental Wisdom)

Correlate Silos of Environmental Information (Internal and External)

Using Mobility to Produce Knowledge

M -E

nv iro

nm en

ta l

In te

lli ge

nc e

Figure 6.17 Path to environmental intelligence with mobility.

GEA, EI, and Green Supply Chains ◾ 215

of t he organization t hat c an a lso re sult i n environmental a dvantage for t he enterprise a nd, i n turn, t he so ciety. F or e xample, p roducing h igher q uality o f p roducts a nd s ervices h as a p osi- tive c orrelation w ith t he en vironment. A h igh-quality p roduct t hat l asts a n a dditional ye ar is a n e nvironmentally good p roduct. Ā is c orrelation i s cre ated, m aintained, a nd u tilized b y bringing together data and information using the mobile platform. EI-based software tools are able to provide visual reports, historical and emerging carbon data and interfaces with external regulatory data.

An Example of Green Enterprise Architecture Figure 6.18 presents an example of GEA. Ā is i s a n e xample a rchitecture t hat encompasses t he business, te chnology, p rocess, a nd p eople d imensions o f a n o rganization d iscussed i n de tail i n Chapter 2 . Ā e business l ayer i s m ade up of t he d rivers a nd t he t ransformation d imensions for Green IT. Ā e legal requirements relating to carbon emissions directly aff ecting the business layer are shown on the left. Ā is a rchitecture f urther shows business decision making, environmental data collection a nd processing, t he impact on s ystems, supply chains a nd people, a nd t he emis- sions m onitoring la yers in Figure 6.18. Ā e e lements o f a GE A a re su pported b y t he WS a nd infrastructure l ayers, a s s een i n Figure 6 .18. Ā e p olicies, practices, a nd procedures c ontinue to infl uence these technical layers.

Ā is example architecture covers adoption of environmental principles and practices, develop- ment of environmental competencies a nd protocols, a nd facilitates novel application opportuni- ties for CEMS. Such GEA makes provisions for business rules within business processes that are environmentally conscious. Ā e various layers of such architecture are depicted in Figure 6.18 and discussed in detail by Unhelkar and Trivedi (2009).

ICT h as a ke y ro le i n cre ating s ystems/technologies w hich s ystematically a nd c ontinuously regulate the energy consumption; inform the business about the energy consumption, and enforce eco-sensitive consumption. Ā is is evident in Figure 6.18 through the input-analysis-output activi- ties, which are technically supported by the emissions monitoring layer (CEMS).

In Figure 6 .18, t he sm art metering de vices shown on top of t he left side a re u sually mobile devices. Ā ese smart meters (also discussed in Chapter 4) need to b e attached to t he equipment whose em issions a re re quired to b e m easured a nd m onitored o n a re gular ba sis. S mart m eters provide the basis for lifecycle assessment of an equipment and bring about positive changes to the usage of that equipment from a carbon perspective.

Finally, t he GE A a lso enables relating t he i nfrastructure issues i n businesses to E I. Ā us , the hardware, networks, public infrastructure, third-party owned infrastructure are all identi- fi ed, understood, a nd positioned in a w ay to m ake t hem most c arbon a nd cost eff ective with the h elp o f a GE A. Oc casionally, t hese i nfrastructure e lements m ay b e o utside t he o rgani- zational b oundary a nd t herefore n ot e asily c hangeable. F urthermore, a GE A a lso p rovides input and guidance for quality assurance and quality control (testing) of EI data, services, and interfaces. Ā is is so because, based on the architecture, a strategy for incorporating changes, testing those changes, and working out the deployment can be achieved. A GEA also assists in comparative investigation of diff erences between EIS-specifi c applications a nd the rest of the business applications. As of today, however, EI applications are not as common place as other business applications, thereby hindering their comparison and audits (more details on audit in Chapter 10).

216 ◾ Green IT Strategies and Applications

Discussion Points Explain the various types of Green architectures within the enterprise, such as information ◾ architecture and solutions architecture. Describe the importance of GEA in an organization transformation to a green ◾ organization. Explain how a Green systems architecture evolves from a ba sic to a l inear and eventually a ◾ collaborative process-based architecture. What comprises green contents? What are the sources and the users of green contents? ◾ What is a Green ICT information portal? Discuss the important elements of the inputs and ◾ outputs of a green portal. Discuss the role of EI together with Cloud computing. What are the various people to sys- ◾ tem interactions facilitated by EI? Explain the role of SCM systems in the GEA. ◾ Describe h ow c arbon em issions c ould b e re duced b y e xtending SC M w ith m obile ◾ technology. Discusses your current organizational portal. What challenges you expect to face when you ◾ add sources and provisioning of carbon data to this portal?

Business layer [Drivers, Dimensions]

Input Data acquisition

Interface

Output Information allocation

Interface

Smart Meter Connected

To an Carbon

Emitting

Measure Monitor Mitigate Monetize

Technology Infrastructure/Networks [Data Centers, Configuration, Hosting, Device Provisioning]

Systems & Support Strategy

Attitude/People Transition

Services layer: Web Services, Cloud Computing, Green ERP/SCM

Policies Practices

Procedures

[Development, Acceptance, Promotion]

Emission Monitoring Layer [CEMS]

Legal (Interfaces)

Metrics

Asset Infrastructure [Buildings]

Analysis [Products &

Services]

Supply Chain Management

Used By

Figure 6.18 An example of ERBS architecture. (Based on Unhelkar, B. and Trivedi, B., Merging web services with 3G IP multimedia systems for providing solutions in managing environmen- tal compliance by businesse. In Proceedings of the Third International Conference on Internet Technologies and Applications (Internet Technologies and Applications, ITA 09), Sep. 8–11, 2009, Wrexham, North Wales, UK, 2009a).

GEA, EI, and Green Supply Chains ◾ 217

Action Points Organize a workshop to review your existing EA. ◾ Create/cross-check inventory of your BI system suite. ◾ Plan to modify/update existing data within BI suite to incorporate carbon calculations (this ◾ will be more than just a database update). New applications/modules may get added to your existing systems. Create the outline of a green information portal. Identify the elements specifi c to the portal ◾ for your organization. Create a strategy for integrating your SCM system. ◾ Identify a reas t o m odify in ex isting da ta s tructures t o a ccommodate n ew ca rbon da ta ◾ elements. Convert existing organizational data to accommodate external carbon data such as regula- ◾ tory requirements and standards. Create a suite of green services using SOA and WS. ◾ Prepare a quality assurance policy for testing of Green Info Systems. ◾

References Azvine, B., Cui, Z., Nauck, D. D., and M ajeed, B. (2006). R eal time business intelligence for the adaptiv e

enterprise.” Paper presented at the E-Commerce Technology, 2006, Ā e 8th IEEE International Conference on and Enterprise Computing, E-Commerce, and E-Services, San Francisco, CA, USA.

Borri, D., Camarda, D., and De Liddo, A. (December 2005). Mobility in environmental ICT gets its green house in order. Information Staff , Information Age, Publication of the Australian Computer Society.

Bryla, M. and M erchant, D. (2009). Business Intelligence and P erformance M anagement fr om IBM Cognos , p. 11. A ustralian Computer S ociety. A vailable at http://www.acs.org.au/nsw/sigs/bi/IBM_BI.pdf, accessed August 4, 2010.

Clark, T. D. J., Jones, M. C., and Armstr ong, C. P. (2007). Ā e dynamic structure of management suppor t systems: theory development, research focus, and direction. MIS Quarterly, 31(3): 579–615.

Deshpande, Y. and Unhelkar, B. (2011). Information systems for a Green organisation. In B. Unhelkar, ed., Handbook of R esearch in G reen ICT: Technical, M ethodological and Social P erspectives, pp . 116–130. IGI Global, Hershey, PA, USA.

Dzubeck, F. (2008). Are You Ready for Green SOA, Network World. Business InfoWorld. April 2008. Available at http://www.infoworld.com/t/business/are-you-ready-Green-soa-440?page=0,1

Ghose, A. and Billiau, G. (2011). Chapter 12, Ā e optimizing web: A Green ICT research perspective. In B. Unhelkar, ed., Handbook of Research in Green ICT, pp. 184–196. IGI Global, Hershey, PA, USA.

Hazra. T. (2007). Doing SOA Right Today. Available at http://cutter.com/ Hazra, T. (2010). SO A: U nderstanding the P ractice 2010—C reating B usiness-Driven S ervices. Cutter

Executive Report, Boston, USA, November 2009, 12(11). Kimball, R., Reeves, L., Ā ornthwaite, W., and Ross, M. (1998). Ā e Data Warehouse Lifecycle Toolkit: Expert

Methods for Designing, Developing and Deploying Data. John Wiley & Sons, Inc. New York, NY, USA. Rosan, M., Krichevsky, T., and S harma, H. (2011). S trategies for a S ustainable Enterprise. In B. Unhelkar,

ed., Handbook of Research in Green ICT: Technical, Methodological and Social Perspectives, pp. 1–28. IGI Global, Hershey, PA, USA.

Sherringham, K. and U nhelkar, B. (2011). S trategic business tr ends in the context of gr een ICT. I n B. Unhelkar, ed., Handbook of Research in Green ICT: Technical, Business and Social Perspectives, pp. 65–82. IGI Global, Hershey, PA, USA.

Strausl, D. (2001). Four stages to building an eff ective supply chain network. EBN, Feb. 26, p. 43.

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Trivedi, B. and Unhelkar, B. (2009a). S emantic Integration of Environmental Web Services in an organiza- tion. Selected in ICECS 2009 Conference to be held at D ubai, Dec. 28–30, 2009, to be published in IEEE Computer Society Journal.

Trivedi, B. and U nhelkar, B. Chapter 15, Role of M obile Technologies in an E nvironmentally Responsible Business Strategy. In B. Unhelkar, ed., Handbook of Research in Green ICT: Technical, Business and Social Perspectives, pp. 233–242, IGI Global, Hershey, PA, USA.

Turban, E., Lee, J., King, D., and Chung, H. M. (2006). Electronic Commerce 2006: A Managerial Perspective. Pearson, Prentice Hall.

Unhelkar, B. (2003). “Understanding Collaborations and Clusters in the e-Business World,” We-B Conference, (“http://www.we-bcentre.com” www.we-bcentre.com; with E dith Cowan University), Perth, Nov. 24–25, 2003.

Unhelkar, B. (2005). Transitioning to a mobile enterprise: a three-dimensional framework. Cutter IT Journal, special issue on “Mobile Computing,” Ed. S. Murugesan, 18(8): 5–11.

Unhelkar, B. (2009). Mobile Enterprise Transition and Management. Boca Raton, FL: Taylor & Francis Group (Auerbach Publications).

Unhelkar, B. and Lan, Y. (2011). Chapter 38 , Integrating Green ICT in a supply chain management sys- tem. In B. Unhelkar, ed., Handbook of Research in Green ICT, pp. 523–534. IGI Global, Hershey, PA, USA.

Unhelkar, B. and Tiwary, A. (2010). “Collaborative Intelligence” in Cutter IT Journal edited by Dave Higgins’ Business Intelligence 2010: Delivering the Goods or Standing Us Up?- Vol. 23, No. 6, June 2010.

Unhelkar, B. and Trivedi, B. (2009). Chapter XI, R ole of mobile technologies in an envir onmentally responsible business strategy. In B. Unhelkar, ed., Handbook of R esearch in M obile Business: Technical, Methodological and Social Perspectives, 2nd ed., 2008, pp. 214–232. IGI Global, Hershey, PA, USA.

Unhelkar, B. and Trivedi, B. (2009a). “Merging Web Services with 3G IP Multimedia systems for providing Solutions in Managing Environmental Compliance by Businesses,” Proceedings of the 3rd International Conference on I nternet Technologies and A pplications (I nternet Technologies and A pplications, ITA 09), Sep. 8–11, 2009, Wrexham, North Wales, UK.

Weill, P. and Ross, J. W. (2004). IT Governance: How Top Performers Manage IT Decision Rights for Superior Results. Boston, MA: Harvard Business School Press.

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7 Chapter

Green Information Systems: Design and Development Models

In all aff airs it’s a healthy thing now and then to hang a question mark on the things you have long taken for granted.

Bertrand Russell*

Key Points Applies the discussions on processes (Chapter 5) and architecture (Chapter 6) to the devel- ◾ opment of a Green information system (GIS) Presents the functional requirements of a GIS with use cases and activity graphs of the uni- ◾ fi ed modeling language (UML) Analyses the stated requirements of GIS in order to identify its key design entities ◾ Presents class diagrams as the static structural models of a GIS ◾ Presents sequence d iagrams to h ighlight t he a rchitectural a nd de sign decisions relevant to ◾ the dynamic aspect of a GIS Presents the models of various states for green objects—using state machine diagrams ◾

Introduction Ā is chapter describes a generic Green information system (GIS). A GIS i s a s ystem that is dedi- cated to management of carbon data. Ā erefore, a GIS forms the basis for measuring, monitoring, and reporting on the carbon data of the organization. As such, this system is integral to environ- mental strategies of an organization. Ā is chapter focuses on the design and development aspect

* http://www.brainyquote.com/quotes/authors/b/bertrand_russell_3.html.

220 ◾ Green IT Strategies and Applications

of such a GIS. To separate this discussion on the software design and development aspect of green systems from their overall list, the system here is specifi cally referred to as GIS (rather than Carbon Emission Management Software [CEMS]) in this chapter.

Ā e requirements of an overall system for environmental management have been outlined in the ISO 14001 standard (described later in Chapter 10).

GIS can be of diff erent sophistication and can operate at va rying levels. Most GIS h ave web services-based implementations and are deployed as SaaS. Philipson has done a subs tantial work in studying, collating, analyzing, and listing close to 60 vendors off ering over 100 GIS products.* Ā ese CEMS products have been grouped on CEMSUS ranging from spreadsheets and free online calculators through to large vendors and consulting organizations providing comprehensive green ERP solutions.

Describing a GIS A GIS (or a CEMS or EIS) is a software system that provides support to the business to implement its environment responsible business strategies (ERBS). Ā us, this system has to cover the length, breadth, and depth of various structural and dynamic aspects of the business. Some aspects of this system are similar to a ny other software system—it has underlying carbon emissions data that is gleaned from the devices that emit that carbon, it has processes and applications that help analyze that data, identify t he trends, a nd, eventually, it has interfaces t hat present, report, a nd interact (and collaborate) with other external sources of carbon services and data.

A generic GIS should be architected and designed in a way that enables it to be confi gured and used in all industry sectors. Furthermore, a good GIS must be able to cater for product service and infrastructure industries.

Ā e development of a GIS h as to a lso cater to t he interfaces with existing software packages (such as the existing ERP packages, including those that provide customer relationship, CRM, and supply chain management [SCM]). Ā e development of a GIS has to provide a strategic purpose— especially as it is designed from ground up. Ā e technologies to be used will include an underlying content management system, an object-oriented approach to design, an object-relational database, support for mobile devices and interfaces, and implementation in an object-oriented language (say, Java). Ā e deployment of almost all new GIS is expected to be SaaS-based. Ā erefore, the system should be aware of SaaS and Cloud computing.

GIS s ystem i s t he software w ith t he f unctions for measuring, monitoring, a nd performance checking o f t he va rious em issions g enerated b y de vices em ployed i n t he b usiness a ctivities. Organizational emissions values are computed by the system. Ā ese values are then compared to the standards set by the regulatory bodies.

Phases in a GIS Development and Deployment Figure 7.1 depicts the major phases of any typical software development lifecycle. In terms of GIS, they apply as follows:

Develop—GIS needs to be developed by following agile practices and considering the impor- tant p hases o f a S DLC s tarting f rom re quirements, a nalysis, de sign, a nd c ode to te sting. Development has to consider issues of deployment, integration, and operations. Analysis and

* www.cemsus.com

Green Information Systems ◾ 221

design of the system is undertaken using the unifi ed modeling language (UML) diagrams that helps in modeling the problem space and develop a solution in design space (model of solution space). CAMS provides this overall methodological approach.

Confi gure—Confi guring GIS according to benchmarks and rules of organization. Ā is would be an activity specifi c to each organization within each industry sector.

Use—Use of GIS will lead to ongoing recording of carbon data creation of reports as well as comparisons.

Features of GIS GIS a re required to h ave a ll relevant features for supporting t he organization in its green initia- tive. Ā ese include support for the routine, operations, and also strategic trends. GIS also includes enhancement of the business systems with green capabilities. Ā is would enable the organization to make use of its existing data and processes and extend them for carbon control.

GIS i mplementation n eeds to c onsider t he i ntegration i ssues—particularly a s o rganizations have many existing ERP applications that will continue to be used irrespective of the environmen- tal initiatives. Integration projects within ERBS will immensely benefi t by the earlier discussion on technologies and EI. Ā e earlier mentioned metrics and the three scopes in carbon emissions are all implemented through GIS.

Ā e features of a GIS that play a signifi cant role in enhancing this ability of business to coor- dinate its environmentally responsible approaches can be listed as follows:

Collecting environment-related data in real time. Ā e GIS h as to b e geared to c ollect data ◾ such as number of devices in use and on standby. Mobility further enhances this data capture a bility a nd m akes i t re al t ime. GIS h as to a lso re late t his d ata to o ther b usiness applications.

Develop Configure Use

Require- ments

Analysis

Design Coding

Testing

Industry-Benchmarks

Region-Rules

Organization-Target

Record

Compare Report

Agile

Figure 7.1 Major phases in GIS: development, confi guration, and use.

222 ◾ Green IT Strategies and Applications

Providing q uerying to ols, ke y p erformance i ndicators ( KPIs), a nd b usiness a nalytics to ◾ fi eld workers a nd de cision m akers i n t he a rea of E I. Availability of querying m echanisms can provide information t hat enables closing down of unused servers, desktops, a nd other equipments. Enhancing the decision-making capabilities of senior management by collating and computing ◾ up-to-date information from varied external sources (e.g., government regulatory bodies and weather i nformation) a nd fe eding t hat i nto GIS . A s a re sult, k nowledge management i n the g reen domain of t he organization i s en hanced. Ā is s ervice-oriented a pproach i n G IS and the resultant real-time analytics goes a long way in enhancing the organization’s green credentials. GIS substantiates the green eff ort of the organization through the metrics, thereby provid- ◾ ing positive feedback and impact on the employees’ job satisfaction. GIS c an c ontinuously i dentify a nd u pgrade b usiness p rocesses a nd b usiness p ractices i n ◾ manufacturing, s ales, a nd fi eld su pport o perations i n o rder to m ake t hem en vironmen- tally re sponsible. GIS c an h elp i n o ptimizing t he b usiness p rocesses (as w as d iscussed i n Chapter 5). GIS a lso p rovides fe edback to c ustomers a nd o ther e xternal u sers o f t he b usiness o n i ts ◾ environmental performance—potentially resulting in increased customer service and satis- faction—especially for the environmentally sensitive and responsible customers. Aligning offi ce and home activities through GIS can be a tremendous boost to the organiza- ◾ tional eff ort in improving its green credentials. Ā is is so because GIS can identify the areas of work that are overlapping with each other due to their location-specifi c nature and make them location-independent as far as possible. GIS e xtends t he to ols a nd te chniques o f b usiness m anagement ( such a s K PIs, ◾ business analytics, a nd rep orting) a nd ap plies t hem to t he en vironmental a spect o f business. M obility f urther en hances t he ap plication o f t hese m anagement to ols a nd techniques. GIS p rovides t he b usiness w ith t he a bility to su stain i tself fo r a l ong t ime. A n en viron- ◾ mentally responsible business and a sustainable business are complimentary. GIS can bring together technologies and processes for environmental sustainability. GIS enables collaboration a mongst businesses for t he purpose of achieving environmental ◾ responsibilities. Ā is collaboration is achieved through the use of service orientation archi- tecture (SOA) as discussed in Chapter 6.

Modeling and Architecting GIS—Requirements, Design, Implementation, and Testing Ā e U ML h as b een u sed i n presenting t he m odels of t he GIS . Ā e m odeling c onstructs of t he UML that are used in this chapter are as follows:

Package d iagrams—Used to cre ate a nd m odel subs ystems/Green i nformation p ortals. Packages can also be used to create increments and sprints in an agile development approach.

Use c ases—Used to sh ow f unctionalities a nd b usiness p rocesses f rom a u ser’s p oint o f v iew. Ā is is the expected behavior of the system documented as interactions.

Green Information Systems ◾ 223

Use case diagrams—Provides a model describing all the related business processes/functional- ities of a particular package. Ā ese diagrams also provide the scope of the system.

Activity graphs—Provides a detailed view of every step of a business process. Ā ey provide the fl ow within a use case or a package of GIS.

Class d iagrams—Provides a s tatic model of GIS ba sed on its ke y business entities. Ā is dia- grams can also be used to model underlying carbon data warehouse.

Sequence diagrams—Provides a model for the interactions between objects and also rules for these interactions that are architectural decisions.

State Machine diagrams—Provides a view in which a particular entity passes through diff erent states as a business process is executed.

Component diagrams—Used to show the interaction of every component with each other. Deployment d iagrams—Used to sh ow t he w ay application w ill b e deployed i ncluding h ard-

ware and related infrastructure.

While t hese d iagrams a re u sed to sh ow t he va rious a spects o f a GIS , t hey a re h ighlighting these i mportant a spects o f t he s ystem. A l arge E RP ap plication w ill re quire subs tantially m ore eff ort and will involve more complexity than the GIS models depict.

GIS Requirements Ā e Green ICT is developed to measure only energy consumption and environmental parameters such as carbon emissions, chemical wastes, and other offi ce and industrial wastes. Ā e Department of Environment, a government agency, is responsible for monitoring the carbon footprint of all the companies. Ā is document w ill concentrate on process of g athering requirements, t he re sources needed to b uild the standards module of the project, and monitoring the progress of the project through a Gantt chart.

Green ICT system analysis and design is performed using the UML. UML diagrams such as use c ase, c lass, sequence, activity, state m achine, package c omponent, a nd deployment d iagram are used in modeling the problem space and in designing of the system. As mentioned earlier, these diagrams help in modeling the operations and interactions at the business level and also in system design thorough classes, packages, components, and deployment diagrams. A t ypical GIS would involve two subsystems:

Green organizational portal (GOP) ◾ Regulatory standards portal (RSP) ◾

Regulatory portal provides the standard emission value determined by the regulatory body for each emission type based on the industry and company.

Organizational p ortal fo cuses o n t he c apture o f em ission d ata a nd its c omparison w ith t he emission st andards. Ā ese s tandards, s et b y re gulators a re m ade ava ilable t hrough t he R SP. Interaction between diff erent users and operations performed by individual users are modeled as part of designing the system. Access to the system needs to be provided though an authentication mechanism to ensure the confi dentiality and integrity of data.

224 ◾ Green IT Strategies and Applications

Green Organizational Portal Ā e GOP is made up of organizational data on its “green” performance. Ā ese data are updated by the organizational representatives on an ongoing basis. Ā ese data record the organization’s pol- lutant performance such as (a) heat generated by the desktop machines, data centers and network equipments w ithin t he organization, ( b) c arbon em issions i n t he p etrol/diesel c onsumed by t he organization, and (c) hazardous materials produced by the organization’s activities such as lead in batteries and mobile phones.

Ā e o rganizational p ortal sh ould b e f ully c ustomizable. Ā is means, it should be usable in many diff erent industries. Ā erefore, it should have the ability to create and record various catego- ries of pollutant data. Ā e organizational portal should have the ability to record the energy ratings of all the devices used within the organization (such as computers, vehicles, air-conditioners, and fridges). However, this GIS w ill not store the details of the organization’s inventory, but only its carbon e missions. Ā erefore, the GIS’s organizational portal will have to have an interface with the e xisting i nventory m anagement s ystem, su pply c hain s ystem a nd t he c ustomer re lationship management s ystem. Ā e s ystem i s n ot m eant to i mmediately m easure t he sc ope 3 em issions. However, it should have the provision to do so l ater, when scope 3 emissions become mandatory and need to be included in the system.

Regulatory Standards Portal RSP is a large portal that will be maintained by the government agency responsible for emission control within a country or region. Ā e RSP will have to have detailed and continuously updated information on the pollutant categories that are producing the carbon emissions. Ā ere are a large number of pollutant categories, which are also growing as new pollutants of the environment get

Green Information Architecture

Green Solution Architecture

Green Enterprise

Architecture

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Figure 7.2 Categories of requirements in the various green architectural spaces. *User stories are popular with the advent of Agile methods; they may replace the formal use cases.

Green Information Systems ◾ 225

recognized and added to the list. RSP is made up of thousands of units of data, examples of which are as follows:

(a) Various types of pollutants that may not be directly related to IT such as petrol fumes from vehicles.

(b) Pollutants t hat a re re lated to I T e quipment a nd c onsumables—such a s m onitors, p rinter ink, and lead batteries.

( c) Ā e approved standard for each of the pollutants—for example, 0.03 mg carbon per liter of petrol, and 0.05 mg of carbon per cartridge of printer ink.

( d) Ā e variations to the pollutants depending on the type of industry. Currently, RSP supports hundreds of industries such as airline, hotel, car rental, packaging, computer manufacturers, restaurants, farms, and so on.

(e ) Ā e standards also vary depending on the size and location of the organization. For exam- ple, i n de veloped re gions, o rganizations w ith l ess t han 2 0 em ployees a re c ategorized a s small, 20–100 as medium, and more than 100 employees as large organizations. Ā e same pollutants a re a llowed i n d iff erent l evels for d iff erent si ze o f organizations. For e xample, if a sm all restaurant is permitted 0.03 mg of carbon per liter of petrol use in its commut- ing a ctivities, a l arge a irline i s only a llowed 0 .025 m g o f c arbon p er l iter o f p etrol i n its activities.

Stakeholders/Actors Ā ere are number of actors (also called stakeholders) in the GIS system. Ā ese actors are typically the p eople w ho a re d irectly re sponsible for measurements, monitoring, a nd m itigation of em is- sions. In addition, these people/roles also include employees directly responsible for production or services within an organization. Ā us, for example, in an airline or a hotel industry, for example, there will be an “Environmental Manager” who will be responsible for the implementation of the strategies for reducing greenhouse gases. In addition, t he check-in manager (airline) or t he duty manager (hotel) will have some responsibilities toward c arbon management a s well, which need to be supported by the GIS.

Ā ere w ill b e n umerous a dditional ro les i n t his s ystem, suc h a s t he wo rkers re sponsible for entering t he environmental d ata, t he g overnment representatives re sponsible for entering the s tandards o r a cceptable b enchmarks, a nd a lso t he s enior m anagement o f t he o rganiza- tion, w ho w ill b e i nterested i n h aving a b ird’s e ye v iew o f t he “green” p erformance o f t heir organization.

Furthermore, it is expected that the “general public” will also be interested in fi nding out the performance of the organization in relation to its green-ness.

In a ddition to t he a bovementioned en d-users, t here a re a lso a dministrators o f t he s ystem, both within the organization and external to the organization, who will be maintaining the data, information, and the applications.

Finally, t hese u sers c an be i ndividual u sers a nd t here c an be organizational u sers (who h ave individual nominees) who can use this system.

Ā ere will be several types of users of the system. Each of those users will have specifi c access to system functions so that they can view specifi c information such a s average c arbon emissions registered for a specifi c company, what pollutants an organization produces, and so on. Some users will be in-charge of entering the environmental data for a specifi c organization (data entry offi cer).

226 ◾ Green IT Strategies and Applications

Senior managers of t he organizations w ill be able to h ave a g lance on t he green performance of their organizations. G overnment representatives w ill h ave access to o ther pa rts of t he s ystem i n order to set up the benchmarks for all the organizations. It is also expected that the general public will have access to the system to fi nd o ut i nformation re garding t he g reen p erformance o f a ny organization re gistered i n t he s ystem. U ser a dministrators a re e xpected i n t he s ystem a nd t hey will be in-charge of setting up access and creating user-id for each of those diff erent users of the system.

Ā ese u sers at b oth a p ersonal a nd organizational level need to i nteract w ith GIS i n va rious ways. Ā us, so me u sers w ill b e ke en to l ogin o n t he o rganizational web si te i n o rder to a ccess GICT, whereas others will be coming in through a handheld device. Ā ere is a need for the system to handle interactions from users who are “in the fi eld” and not in front of a desktop. Furthermore, each interaction, which can include a query, an update, a retrieval of data, a check for control total on the green performance, and so on, needs to b e stored securely. Ā e privacy of the individuals making those enquiries and updates need to be secured—especially as this system has the poten- tial to be politically sensitive.

Databases Ā e back-end, underlying carbon data needs to b e stored in a d atabase that can handle multi- media contents. Ā e basic carbon data relating to emissions and compliance can be modeled and stored in relational structures. However, there will be a need to interact with the many other data elements in the existing CRM/SCM/HR systems. Furthermore, carbon data is likely to be multimedia d ata, dem anding p rovision fo r s toring v ideo p osts a nd web inars t hat c an a lso be u sed fo r c arbon d ashboards. F ollowing a re sp ecifi c re quirements o f a G reen I T s ystem’s database:

Ability to identify polluting equipments, materials, and other assets of the organization ◾ Ability to store the relationship between assets and corresponding pollutions ◾ Storage of various types of GHG emissions on a time-period basis ◾ Ability to confi gure and create various dashboards and pollutant performance reports from ◾ within data available for pollutants Creation of various pollutant types and storing them in a reference table ◾ Storing energy rating of all assets (devices) ◾ Storing of benchmarks/standards for each polluting asset ◾ Ability to search for diff erent assets, polluting gases, and across various time periods ◾ Storing of trends for pollutants, assets, and time periods ◾ Storage and management of user accounts ◾

Package Diagrams and System Scope Ā e system should cover all the functionalities required to re cord, calculate, analyze, and report on carbon emissions.

GOP a nd R SP f unctions like emission details management a nd comparing t hem with stan- dards are done based on the company size and location.

Green Information Systems ◾ 227

Ā e GIS system is meant to support any organization in varying industry verticals—and map their performance against the standards set by the regulatory agency.

Emission p erformance c heck do ne b y en vironmental m anager i n t he o rganizational p ortal. Emission S tandard’s va lue a re m anaged t hrough cre ate, u pdate, a nd de lete p erformed b y t he government administrator. User ID and password authentication to access the system and also permissions to a ny u ser a re m anaged b y t he a dministrator i n t he t wo p ortals. M anagement o f inventories and assets that keeps track of the devices and the automated service-based reporting by diff erent portals is part of the subsequent iteration.

Based on this scope, Figure 7.3 shows the core packages or subsystems of the GIS. Ā e GOP and RSP are shown as two packages that also interface with the interface and administration ser- vices. While the GOP will have multiple instances across various organizations, the RSP will have a single instance. Both portals will be deployed using SaaS.

Use Case Diagram for GOP Figure 7.4 sh ows t he u se c ase d iagram fo r G OP. I t sh ows a ctors, u se c ases, a nd t heir re lation- ships. Some of the use cases shown in this diagram are documented in subsequent sections in this chapter.

Figure 7.5 depicts use case diagram for ROP. It shows actors, use cases, and their relationships for creating, updating, and maintaining emission benchmarks.

Figure 7.6 depicts use case diagram for ROP. It shows the model for the process by which the regulatory authority establishes emission standards. Use cases corresponding to t his diagram are not currently documented.

Figure 7.7 depicts the activity diagram for the use case “Calculate Emissions.” Worker speci- fi es emissions and pollutants in device. Device provides the values and then worker calculates the emission on basis of those values.

Figure 7.8 depicts activity diagram for use case “Maintaining Emission Standards.” Govern- ment administrator logs in portal and provides device details as well as create/update standard on basis of em ission a nd p ollutant sp ecifi cations provided by p ortal. A fter cre ating/updating t hose standards, government administrator sets standards in the system and stores them.

Green Organization Portal (GOP)

Administration Services

Regulatory Service Portal (RSP)

Interface Services

Figure 7.3 GIS major packages (subsystems).

228 ◾ Green IT Strategies and Applications

UC10_Calculate Emission

UC30_Provide Reporting Details

UC40_Generate Carbon Report

UC2-Capture Emission

UC60_Provide Carbon Feedback

«uses»

UC6010_Electronic Feedback

UC6010_Presentation Feedback

«extends»

«extends»

* *

*

*

*

*

*

* *

*

A30_Enviro Manager

* *

*

*

*

*

Report is compared with the standard specification of emissions.

Smart Meter are used to capture emission data automatically. Alternatively they may be manually entered.

UC50_Compare With Standard

Emissions

*

*

A00_Regulatory Portal

* *

A00_Printer

* *

*

*

A20_EmployeeA20_EmployeeA20_Employee

A10_Environmental ManagerA10_Environmental ManagerA10_Environmental Manager

A00_Smart MeterA00_Smart MeterA00_Smart Meter

Figure 7.4 Use case diagram for “green organizational portal.”

Green Information Systems ◾ 229

UC10_Create Carbon Limits Value

UC30_Update Carbon Limits Value

UC40_View Carbon Limits

UC3020_Update Carbon Limit Value With

Web Service

UC20_Authorization Access

dar *

*

*

*

*

*

«uses» * *

UC3010_Update Carbon Limits With Mobile Device

«uses»

«extends» «extends»

UC4010_Print Carbon Limit Reports

«extends»

These are small time daily adjustments

-End1 *

-End2

*

-End3 *

-End4

*

A1-Govt AdministratorA1-Govt AdministratorA1-Govt Administrator

Figure 7.5 Use case diagram for “emissions benchmark maintenance (ROP).”

230 ◾ Green IT Strategies and Applications

System

Calculate Emission Standards

Gather Industry Details

Gather Company Details

Gather Emitter Details

Provide Standard Specification

Store Specification A1-Govt Administrator

dar

«uses»

«uses»

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Provide Emission Specification

«uses»

«uses»

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*

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*

*

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Figure 7.6 Use case diagram for “establishing emission standards (ROP).”

Green Information Systems ◾ 231

A00-Handheld DeviceA2-Worker

Specify Emissions and Pollutants

Provides the Values

Calculates Emission

Measures Pollutant

Measures Emission

Quantity of Pollutant and Emission for all Device are Captured through the Handheld Device

Amount of Emission per Unit Quantity of Pollutant Utilized by Devices

Figure 7.7 Activity diagram for “UC1_calculate emissions.”

232 ◾ Green IT Strategies and Applications

Govt Administrator Regulatory Portal

Calculates Specifications

Provide the Device Details

Create Standard

Update Standard

Provide Pollutant Specification

Provide Emission Specification

The existence of standard value of emission for the device is checked. New standard value is created when the standard does not exist. Existing standard value is updated when the standard exists.

Provides Login ID and Password

Logs Into System

Login Failed

Set the Standard in the System

Store Standard

Looks for Device

No Yes

Enters the Standard value of pollutant specification and emission specification into the system

No Yes

Figure 7.8 Activity diagram for maintaining emission standards.

Green Information Systems ◾ 233

Use Cases for “Green Organizational Portal”

Use Case UC10-Calculate Emission

Actors A20-Employee, A00-Smart meter

Description The employee calculates the amount of emission of one or more assets by capturing carbon data through handheld device or a smart meter (or handheld device)

Precondition Employee is authenticated

Employee is authorized to access the smart meter data

Postcondition Emission value is successfully calculated

Complexity Medium

Normal Course of Events

1. The employee prepares a list of assets for which emissions are to be calculated. System validates the list (through asset management)

1.1 <<include>> UC20-Capture emission

2. Employee initiates recording of emissions

3. The value of carbon emission from each smart meter is provided (A1)

4. System validates value of carbon emissions

5. The employee requires total amount of emission to be calculated (per dept per day)

6. System calculates and reports on total emissions

Alternate Course of Events

A1-The emission values could not be provided by the meter,

manual collections of data will be required

References Government document outlining pollutants per assets, their categories, and their emission limits. This data is available electronically as a web service from the government portal

Use Case UC20-Capture Emission

Actors A20-Employee;

A00-Smart meter

Description The employee uses the smart meter or other device to capture the emissions from organizational assets corresponding to various pollutants

Precondition The employee is authorized to capture the emission

Smart meters have been installed

Postcondition The smart meter successfully transmits the emission

Complexity Simple

234 ◾ Green IT Strategies and Applications

Normal Course of Events

1. The smart meter device is electronically switched on

2. The smart meter registers itself to the system

3. The system validates the smart meter (A1)

4. Smart meter is assigned to an asset pollutant (A2)

5. Smart meters monitors and captures emission data

6. Smart meter transmits data to the system

Alternate Course of Events

A1-Invalid smart meter

Switch to alternative handheld device to capture the emission value

A2-Smart meter is not directly assigned. Create a manual mapping for the assignment of the meter to the pollutant

References Smart meter operating procedures

Use Case UC30-Provide Reporting Details

Actors A20-Employee,

A30-Environmental manager

Description The employee reports on the emission values. Environmental manager collates them and creates physical reports

Precondition Emission values have been successfully transmitted to the system

Postcondition Emission value are reported by environmental manager

Complexity Simple

Normal Course of Events

1. The employee indicates to the environmental manager that the emission details are ready for storage

2. Environmental manager accepts the request and asks for the details (A1)

3. Employee provides the details such as the asset, the category of pollutant, and the emissions generated in units

4. The environmental manager receives and stores the details in system provided by the worker

5. Environmental manager provides required search criteria in system

6. System generates appropriate report clearly mentioning emission values for each pollutant in units

Alternate Course of Events

A1-Environmental manager will electronically accept data

References The emission feedback use case diagram in organizational portal

Use Case UC40-Generate Carbon Report

Actors A30-Environmental manager

A00-Printer

Description The employee generates a report providing amount of emission released from each device

Green Information Systems ◾ 235

Precondition The employee provides the emission data to the administrator and it is stored in the system

Postcondition The employee successfully generates the report to be viewed by the environmental manager

Complexity Simple

Normal Course of Events

1. The employee performs analysis of emission values for each of the device

2. The employee prepares the report by specifying the emission value for different category of pollutants utilized by each device

3. The report is generated (A1)

4. The employee sends the report to the environmental manager

5. Environmental manager receives the report

Alternate Course of Events

A1-Report is submitted electronically

References Green organizational portal

Use Case UC50-Compare with Standard Emissions

Actors A10-Environmental manager;

A00-Regulatory portal

Description Environmental manager analyses the report generated by the worker and checks if they are within the standard specifi cations which is provided by the regulatory portal

Precondition The environmental manager received the report from the worker

Postcondition The report confi rms with the standard specifi cations

Type Complex

Normal Course of Events

1. The environmental manager analyses the report

2. The regulatory portal is accessed

3. The environmental manager compares emission values in the report with the standard emission values for each device type from the regulatory portal

4. Report confi rms to the standard specifi cation (A1)

5. Report is approved and fi led

Alternate Course of Events

A1-Report does not confi rm the specifi cation and should be enquired

References Organizational portal

236 ◾ Green IT Strategies and Applications

Use Cases for “Emissions Benchmark Maintenance Use Case Diagram”

Use Case UC60-Provide Carbon Feedback

Actors A30-Environmental manager;

A20-Employee

Description The environmental manager provides a feedback depending upon the confi rmation of the standard specifi cations

Precondition Report for emission is compared with the standards by the environmental manager

Postcondition Feedback is submitted by the environmental manager

Type

Normal Course of Events

1. Environmental manager verifi es actual emissions against standards specifi ed

2. Feedback is prepared based on the conformance to the standards

3. Environmental manager sends the feedback to the worker

Alternate Course of Events

N/A

References Organizational portal

Use Case UC10-Create Carbon Limits Value

Actors A10-Government administrator

Description The government administrator creates new carbon limits value for the nonexisting emission value after receiving value from the government representative

Precondition The carbon limits value is already calculated by government representative

Postcondition The administrator successfully creates the carbon limits value

Type Medium

Normal Course of Events

1. The government administrator requests for creating carbon limits value

2. The system requests for the authentication

2.1 <<include>> UC2-Login

3. The system authenticates and asks for the new standard value (A1)

4. The government representative provides the standard value to government administrator

5. The government administrator enters the value

6. The system accepts and stores the value

Green Information Systems ◾ 237

Alternate Course of Events

A1-The system does not authenticate for creating standard value due to invalid login

References Regulatory portal—Standard value maintenance use case diagram

Use Case UC20-Authorization Access

Actors A1-government administrator

Description To access the standard value, the government administrator has to login into the system. The login ID and password are checked and if correct, provided authentication

Precondition N/A

Postcondition Government administrator successfully logs in to system

Type Simple

Normal Course of Events

1. The system asks for the Login ID

2. Government administrator provides with the Login ID

3. The system asks for the Login password

4. Government administrator provides Login password

5. The system verifi es and provides authentication (A1)

6. The government administrator successfully access the standard value and operations

Alternate Course of Events

A1-The system does not provide authentication due to wrong Login ID or Login password

References Regulatory portal—Standard value maintenance use case diagram

Use Case UC3-Update Carbon Limits Value

Actors A1-Government administrator—Primary;

A2-Government representative—Secondary

Description The government administrator will update the standard values which is provided by the government representative in the system

Precondition Standard value for the device must exist

Postcondition Standard value successfully updated

Type Medium

Normal Course of Events

1. The government administrator requests for updating standard value

2. The system requests for the authentication

2.1 <<include>> UC2-Login

3. The system authenticates and provides access for updating the standard value

238 ◾ Green IT Strategies and Applications

Class Diagram for GOP Figure 7.9 shows a n e xample of a c lass d iagram for a G OP. Ā is d iagram shows t he ke y enti- ties i n t he p ortal a nd t heir i nterrelationships. Ā ese e ntities a re d erived fr om t he “ Use Ca se Analysis.” Ā is class diagram will be expanded in detail in practice. Ā is object-oriented struc- ture will also have to be confi gurable in practice—for each company, depending on diff erent industry sector.

“User” and “Organizational User” are the primary actors of the system. Environmental man- ager and worker are major organizational users of system. User works in a depa rtment of a com- pany which is dedicated to sp ecifi c industry. In addition to a bove users, t here a re some external devices such as smart meters which are used to c alculate emission of a pollutant. Diff erent types of reports such as emission-specifi c reports are created by user.

4. The government representative provides the standard value to government administrator

5. The government administrator may change the standard value or delete the standard value based on the values provided by government representative

6. The system accepts and updates the value

Alternate Course of Events

References Regulatory portal—Carbon limits value maintenance use case diagram

Use Case UC4-View Carbon Limits Value

Actors A1-Government administrator—Primary;

A2-Government representative—Primary

Description The government administrator and government representative view the standard values

Precondition

Postcondition The actors successfully view the standard value

Type Simple

Normal Course of Events

1. The government administrator/government representative requests for the standard emission values for a particular emitter

2. The system asks the emitter details

3. The actor provides the emitter details like type, name, and so on

4. The system successfully displays the standard values

Alternate Course of Events

N/A

References Regulatory portal—Standard value maintenance use case diagram

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+set Industry Details() +get Industry Details()

-sector : char -country : char -domain : char

Industry

+set Company Details() +get Company Details()

-Comp Address : char -Comp Location : char -Comp Name : char -Comp Size : char

Company

+get Department Details() +set Department Details()

-Dept Name : char -Dept ID : char

Department

+calculate Pollutant Quantity()

-Quantity : int -Type : char -Carbon Measuring Unit : char

Pollutant

+calculate Actual Emission()

-Quantity : int -Type : char -Carbon Measuring Unit : char -Duration : bool -Date Of Reading : Date -Time Of Reading : bool

Emission

+feedback() : bool +send() : bool +delete() : bool

-Date : char -Report ID : char -Created By : char

Report

+get General Summary() -Summary Topic : char

Consolidated Report +get Detalied Report() : Report

-Device Report Type : char -Technical Area : char

Emission Specific Report

-consists of1

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+view Envn Details()

-Country : char -Age : int -Address : char -Name : char -Contact : unsigned char

User

+check Logout() : bool +check Login() : bool

-Dept : char -Login Pwd : char -Emp ID : char -Email ID : char -Login ID : char -Date Join : Date

Organization User

+create Details() +update Details() +set Permssion() : bool +change Permission() : bool +delete Details() +store Details()

-Yrs of Exp : int -Responsiblities : char -Carbon Certified : bool

Org Administrator

+check Performance() +view Envn Report() +submit Feedback() : char

-Performance Standard : char -Performance Status : char

Environmental Manager

+submit Feedback() : char +view Envn Reports() : bool

-Member Position : char BOD

+receive Feedback() : bool +capture Details() : bool +calculate Emissions() +create Envn Report()

-Date of Capture : Date -Time of Capture : char

Worker

+submit Feedback() : char

-Purpose Of Visit : char -Role : char -Company : char

Guest

1

1..*

+measure Device Emission()

-Device ID : char -Device Name : char -Device Type : char -Energy Rating : int

User_Admin_Services:: Device

+Calc Emission() : double +Transmit Data() : bool

-State : bool Smart Meter

Will be configured differently for each industry type

Figure 7.9 Class diagram (static model) within “Green Organizational Portal.”

240 ◾ Green IT Strategies and Applications

Sequence Diagram for “Emissions Check” Figure 7 .10 sh ows a n e xample o f a s equence w ithin t he G OP t hat de als w ith em issions check.

Environmental manager c alculates emissions a nd t hey a re sent to a n employee who c ap- tures t he de tails a nd cre ates t hem i n s ystem u nder a dministrator’s a ccess. A dministrator generates report out of system and sends the reports back to environmental manager. In addi- tion to it, feedback on each pollutant and related emission values is sent to environmental manager.

XYZ: Org Administrator System

Calculate Emissions() Capture Details()

Create Details store Details()

create Envn Report()

The worker requests for the feedback and is provided by the EM

Green Organization Portal (GOP)::A10_Environmental

Manager

Green Organization Portal (GOP)::A20_Employee

Emission details: The emission data is captured and calculated by the worker and sent to administrator to store in the system

receive Feedback()

view Envn Report() submit Feedback()

Figure 7.10 Sequence diagram (dynamic model) for “emissions check.”

Green Information Systems ◾ 241

Class Diagram for RSP Figure 7.11 shows a re gulatory service portal. Ā is service is provided by regulatory and compli- ance department of the government authority. Ā e ke y b usiness en tities a re g overnment u ser, industry, company, device, pollutant categories, and standard emission values.

Ā e key relationships are inheritance, aggregation, and association. Government administrator is inheriting government user characteristics. Industry has diff erent types of companies which show aggregation. Every pollutant category has standard emissions which show association relationship.

Sequence Diagram for “Setting Standard Emissions Value” Figure 7.12 shows an example of a sequence diagram for setting standard emissions values within a Regulatory Server Portal.

Regulatory Server Portal sets standards that are created by government administrator. Government a dministrator c ollects i ndustry de tails, c ompany de tails, a nd em itter de tails. O n basis of those details, government administrator calculates emission standards, pollutant specifi ca- tions, and emitter specifi cations.

State Machine Diagrams for “Emission Report” and “Emission Standard Value” Objects Figure 7.13 shows state machine d iagram for a n em ission report. It shows a ll t he states starting from creation of an emission report till it gets fi led.

Emission report is created initially by worker. It is analyzed on the basis of existing standards by environmental manager. Environmental manager checks whether the report is above permis- sible limit. If yes, then the report is enquired, appropriate steps are suggested and it is then fi led, but if the report is okay, then it is approved and fi led.

Figure 7.14 shows state machine diagram for an emission standard value. It shows all the states starting from providing emission standard values till it gets stored.

Government representative provides standard values for emissions and checks for the standard values. If the values are existing and need updates, then the values are updated and stored success- fully, but if the values are new, then they are created and stored in the database.

Implementation Diagrams for GIS Figure 7.15 depicts the component diagram for complete GIS including all the important compo- nents like ROP and GOP.

Organizational portal and regulatory (government) portal are two major components of the sys- tem. Ā ey are connected with major interfaces for create, update, remove, and view functionalities.

Figure 7.16 depicts t he dep loyment d iagram o f t he c omplete GIS i ncluding a ll t he e xternal actors connected to major components of the application.

Two high-end servers are connected to each other. GOP and RSP sits on each server. Standard emissions a re provided by R SP a nd t hey a re provided to b e c ompared for e ach pollutant. G OP creates report a nd sends for enquiry. Ha ndheld device is useful in creating reports a nd tracking emission values in units.

2 42

◾

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e n

IT S

trate g

ie s an

d A

p p

licatio n

s

+get Emitter Details() +set Emitter Details() +measure Emitter Usage() +calculate Emission Standard()() +set Standard Pollutant Specifications()

-Type : char -Name : char -Rating : char

Device

+set Standard Pollutant Specifications() +create Standard() +delete Standard()

-Name : char -Type : char -Polluntant ID : char -Measurement Type : char -Standard Pollutant Qty : char

Pollutant Categories

+get Green Environmental Details() +set Green Environmental Details()

-Country : char -Sector : char -Type : char

Government

+set Standard Emission Specifications() +create Standard() +delete Standard()

-Name : char -Type : char -Measuring Units : char -Standard Emission Quantity : char

Standard Emission

+check Login() : bool +check Logout() : bool +maintain User() : bool

-Position : char -Department : char -Login ID : char -Login Password : char -Privilege Level : char

Government User

+calculate Emission Standard() +view Standard()

-Designation : char Govt Representative

+set Permission() : bool +change Permission() : bool +set Standard() +create Standard() +delete Standard()

-Yrs Of Exp : int -Responsiblities : char

Govt Administrator

1 1..*

1

1..*

1 1..*

1 1..*

1

1..*

1

1..*

1

1..*

+set Company Details() +get Company Details()

-Comp Address : char -Comp Location : char -Comp Name : char -Comp Size : char

Green Organization Portal (GOP)::Company

+set Industry Details() +get Industry Details()

-sector : char -country : char -domain : char

Green Organization Portal (GOP)::Industry

1..*

-has 1

Maintained by government administrator for different industries

Figure 7.11 Class model (static model) within “regulatory portal.”

G re

e n

In fo

rm atio

n S

yste m

s ◾

2 43

Industry Company Emitter Pollutant Categories

set Standard()

Standard Emission

Create Standard()

get Industry Details()

get Company Details()

get Emitter Details() calculate Emission Standard()()

set Standard Pollutant Specifications

set Standard Emission Specifications

Regulatory Service Portal (RSP)::A1-Govt

Administrator Regulatory Service Portal (RSP)::dar

Figure 7.12 Sequence diagram (dynamic model) for “setting standard emissions value.”

244 ◾ Green IT Strategies and Applications

Created

Analysed

Approved

Filed

Enquired

Above Permissible Limit?

Recommended

(Worker prepares report)

(Report sent to Environmental Manager)

Yes

No

(Enquired and satisfied result)

Changes to the Operation of the Device

Figure 7.13 State machine diagram for class—emission report.

(Govt Representative Gives Standard Value for Emission)

Provided

(Updating the Existing Standard Value)(Creating New Standard Value)

Created Updated

Stored

The Existing Standard Emission Value is Either Changed or Deleted

(Existence of Standard Value Checked)

(Successfully Store the Update)

(Storing the Created Standard Value)

Figure 7.14 State machine diagram for class—emission standard value.

Green Information Systems ◾ 245

GIS—Technical Requirements In addition to functional requirements, GIS also has operational technical requirements. Ā ey are listed as follows:

GIS should b e a ble to r un i n a w ide va riety of platforms suc h a s Windows, Unix, L inux, ◾ and so on. Some components of the software application will be installed in mobile devices. Ā ose m obile de vices r un s everal o perative s ystems suc h a s W indows m obile, S ymbian, I-phone OS.

Government Portal

Interfaces

Organizational Portal

Figure 7.15 Component diagram for GIS.

Printer

Report is printed thorught the printer connected to different network

*

*

Remote Server

*

*

Handheld Device

*

*

Handheld Devices are used to measure the amount of emission for Report

Green Organization Portal (GOP)

Regulatory Service Portal (RSP)

«executable» Report

Standard Emission

ServerServerServer

Figure 7.16 Deployment diagram for GIS.

246 ◾ Green IT Strategies and Applications

GIS should be able to o perate on a va riety of h ardware i ncluding PC, laptop, a nd mobile ◾ devices. Ā e data should be stored in a server located in a secure environment. However, network ◾ connectivity with the applications should be on a 24×7 basis. GIS will be deployed as SaaS via internet. Ā e system will allow users to connect from dif- ◾ ferent locations via Internet service providers. GIS user access should be based on a s ecured identifi cation and password. Users will have ◾ levels of authorization and access. Ā ose access levels will be administered by system admin- istrators. Carbon data information should be available to regular users (e.g., staff ), casual users (e.g., members of the public), strategic users (e.g., CGO), and regulators. Informative users need not sign-up. Ā e GIS should have a sophisticated fi rewall that would block unwanted connections from ◾ outside the organizational boundary. GIS sh ould i ncorporate en cryption. Pub lic ke y en cryption i s a p referred m ode a lthough ◾ secret key encryption can be considered for the sake of speed. A v irtual p rivate n etwork ( VPN) wo uld b e e stablished to en sure p rivate c ommunication ◾ between collaborating organizations using the same GIS.

Discussion Points What are the major areas of a GIS (refer to package diagram)? ◾ How would you separate functional from nonfunctional requirements of a GIS? ◾ Create a use case diagram for the major aspect of a GIS relevant to your organization. ◾ Study t he t wo c lass d iagrams p rovided i n t his c hapter a s a s tarting p oint fo r d iscussion ◾ on ke y b usiness en tities. E xpand a fe w c lasses w ith a ll at tributes a nd o perations yo u c an think of. List the operational requirements for the GIS from your organization’s viewpoint. ◾

Action Points Study www.cemsus.com a nd i dentify t wo m ost ap propriate GIS fo r yo ur o rganization. ◾ Compare their cost-benefi ts. Compare the cost-benefi ts of developing an in-house GIS as against procuring a ready-made ◾ GIS. Consider the importance of SaaS-based deployment of the GIS selected. Discuss the key functional requirements for a GIS for your organization. ◾ Discuss the key nonfunctional or operational requirements for your organization. ◾ List the challenges in confi guring, testing, and deploying GIS in your organization. ◾

247

8Chapter

Sociocultural Aspects of Green IT

To condemn is stupid and easy, but to understand is arduous, requiring pliability and intelligence … Condemnation or identifi cation is a barrier to understanding.

J. Krishnamurti*

Key Points Discusses social dimension of green enterprise transformation t hat is ba sed on people a nd ◾ their attitude. Discusses the impact of Green information technology (IT) on society and vice versa. ◾ Highlights t he sub jectivity o f i ndividuals i n u nderstanding, i nterpreting, a nd ap plying ◾ Green IT. Discusses t he i mportance o f c orporate so cial re sponsibility ( CSR) a s emb raced b y ◾ businesses. Discusses the social impact of Green IT initiatives (such a s telecommuting, teleconferenc- ◾ ing) or individual working lifestyle and the corresponding support required by an organiza- tion’s HR. Presents Green IT in the context of the social communication networks and how these social ◾ networks help green initiatives; encourages reaching out to communities and social groups to foster diff usion of the Green IT-related information and knowledge. Discusses the human resource (HR) and changing organizational structure due to Green IT. ◾ New roles, their defi nition, and positioning within the enterprise are discussed. Maps the increasingly popular professional competency skills set of SFIA (skills framework ◾ for information age) to Green IT.

* From Ā e C ollected W orks of J. K rishnamurti, P ublished b y t he J. K rishnamurti F oundation, s ee http://www. jkrishnamurti.org/index.php, Vol. IV—143.

248 ◾ Green IT Strategies and Applications

Social impact (travel, health, education, etc.—see the case study chapters) of Green IT and ◾ the role of HR in understanding this social impact. Describes the ethics and a code of conduct for Green IT as norms for professional behavior ◾ in this rapidly developing domain. Discourages g reen w ashing b y en suring h onesty i n c alculations a nd rep orting o f c arbon ◾ emissions both internal and external to the organization that will be subject to audits. Highlights the importance of privacy and security of green data and information that com- ◾ bines technical and social issue, and is addressed by the data center, the legal experts as well as the HR department of the organization. Safety issues in Green IT—ensuring that critical and safety systems of the organization are ◾ not jeopardized due to the green initiative.

Introduction Ā is chapter discusses the importance of the sociocultural aspect of Green IT as it comprises the important and subjective element of the green enterprise transformation. Ā is discussion is vital in undertaking a holistic approach to transformation and therefore, is not limited to technologies and p rocesses o f a n o rganization. E arlier, i n Chapter 2 , t he so cial d imension o f G reen I T w as discussed as one of the four dimensions or channels along which an organization can undertake green e nterprise t ransformation. Ā is c hapter d iscusses t his so cial d imension o f G reen I T a nd the c hanges t hat a ff ect a n organization i n t he sociocultural c ontext. A part f rom t he employees, business partners, and senior management of the organization, this sociocultural impact of Green IT is also felt by people in the society that may not be a pa rt of the organization. Ā e transition to a green enterprise aff ects a range of stakeholders in diff erent ways and an understanding of the impacts assists in preparing an organization for the transition.

Sociocultural and political issues are one of the six crucial drivers of Green IT. As the organiza- tion transforms itself into a green organization, the social dynamics of the organization changes to match the green working lifestyle and a green attitude. Ā ese social dynamics also infl uence indi- viduals beyond their workplace and go into their associated personal/family lifestyles. Green ini- tiatives in an organization have corresponding wide-ranging impact on the working lifestyles of the employees that goes beyond their immediate place of work. For example, when an organiza- tion emba rks on carbon reduction t hrough a te lework/telecommuting program, t he commuting styles of employees are aff ected. Ā is, in turn, has an eff ect on their family lives. A comprehensive green enterprise t ransformation program w ill re quire c ooperation a nd i nput f rom t he organiza- tion’s human relations (HR) department. Green IT social implications are often subjective because diff erent i ndividuals a re i mpacted d iff erently by t he g reen t ransformation of t he enterprise. For example, t hose employees w ith families a nd who need to t ravel signifi cant physical d istances in peak hour traffi c may make extensive use of remote access a nd mobile computing to wo rk from home. HR will enable separation and defi nition of these roles based on the familiarity of individu- als with this mode of work as well as identifi cation of roles within the organization that are non- customer facing.

Adding to the complexity of this social dimension of Green IT is the fact that the multiple stakeholders have diff erent inter- ests, a re o perating at d iff erent l evels, a nd p rogress at va rying speeds. S ocially, t he r ate o f c hange i n ter ms o f G reen I T fo r these stakeholders is a subjective element of the transformation.

The social dimension of Green enterprise transformation is a subjective affair that needs to bring together the tacit knowledge and viewpoints of individuals including the explicit knowledge stored in database.

Sociocultural Aspects of Green IT ◾ 249

As sh own i n Figure 8 .1, t he so ciety, g overnment, i ndustry s ector, a nd t he o rganization a re a ll involved in and aff ected by the changes resulting from Green IT at diff erent levels and at varying speeds. Ā e department or business unit within the organization is more agile as compared with the organization itself as shown in Figure 8.1. Finally, the individual employees within those busi- ness units can change almost immediately if they decide to do so. However, the attitudes and pref- erences of individuals come into play at this level. While personal preferences can change for each individual quickly, they also provide a major challenge due to their subjective nature and, at times, due to vested interests taking preference over carbon reduction. Ā erefore, development of Green IT policies with consensus and their practice right from the leadership of the organization down to departmental heads and team leads becomes important. Eff ectiveness of green transformation changes depend on t his leadership c hanges. Ā ere i s a si gnifi cant a mount o f s ubjectivity i n t he decisions and practice of Green IT by the leadership. Furthermore, the leaders of the organization represent t hat organization in consortiums. Ā us, at a n industrial level, the leaders a nd decision makers of the organization play an important role in discussing, debating, and arriving at consen- sus on policies and practices that can be adopted by consortium of green organizations.

Green t ransformation o f a n en tire so ciety i nvolves g reen e thics, m orals, va lue s ystems, a nd attitude across multiple layers of people. Ā is makes environmental changes for the society even more complicated than organizational and governmental changes. Ā us, while a government can bring about changes through ratifi cation of agreements and converting them into law, the changes in the society are based on protocols and understanding that is “in grown.” Ā e social dimension

Slow -Rapid

Society

Government

Industry

Organization

Collective Customers; Employees; Social Groups;

Green Ethics and Morale Issues

Carbon Regulators; Policy Makers; Enforcers

Green Consortiums; Business Partners;

Forums; Associations; Trade Unions

Corporate Decision Makers; Chief Green Officers; Managers;

Employees

The slow moving society has a much more compelling influence on the greening of the organization; society influences governments;

governments in turn, influence industry and the organization; organization undertake or are “forced” to undergo

green enterprise transformation. Ultimately the individual is affected.

Business Unit

Individual

Attitude; Preferences; Personalization;

Location- Independence; Creates Society

Figure 8.1 Relative speed of change in green enterprise transformation.

250 ◾ Green IT Strategies and Applications

of Green IT thus requires discussion of these wide-ranging considerations. Ā e success of a green enterprise t ransformation dep ends o n n ot t reating a ny o ne d imension i n i solation b ut, i nstead focusing on each of the dimensions with due consideration to the others.

Initial eff orts at g reen t ransformation by business u nits present t he social c hallenge of re sis- tance to change. Ā e inbuilt resistance to change that has been discussed in most management lit- erature is also applicable to green transformations. In addition to overcoming this resistance, there is also a need to consider the variations in the way in which this resistance to green transformation appears in various industry sectors. For example, the way in which policies, protocols, and prac- tices of Green IT are interpreted in the banking domain are likely to be diff erent to t hose in the mining sector. Individuals in ba nks may focus on optimizing t he processes relating to fi nancial transactions, whereas individuals in a mine would focus on the way in which it drills and extracts metal or oil. Similarly, staff in a hospital will interpret the green initiative with due consideration to patient care and biowastage, as compared with, say, the education sector where the focus will be on laptops and networks used in schoolwork. Government is also involved in these activities and interpretations with various industry sectors: supporting common outcomes, providing incentives, agreeing o f c ommonly a ccepted p enalties, a nd f acilitating t ransition a rrangements. W hile t he industry sectors a nd the market can determine the best solutions, government help a nd support can infl uence the subjective aspect of those solutions in a positive way.

Training and awareness associated with the Green IT issues can play a key role in handling the subjective nature of green transformation. Ā is is particularly so if the message is clear, consistent, and based on consensus. Eventually, social va lues change and green consciousness gets “inbuilt” in the new generation of individuals. Such sociocultural transformation takes time to achieve and needs to b e a ccommodated w ith t he e conomic levers a nd a ny m arket-driven s etup t hat m ay b e implemented.

Green IT’s Social Impact Discussions o f t he so cial a spects o f G reen I T i nvolve i ndividuals, g overnment, a nd so ciety. Individuals, h owever, o perate i n s everal ro les, a s t he i ndividual, a s m ember of a f amily or so cial group, as a member of an organization (business, academic, government), and as decision makers. Ā ere is a g rowing interest by individuals to u nderstand the organizations they are associated, its values and its performance in terms of the environment. Environmental responsibility a ff ects the structure and operation of the organizations and the society in which it exists. As mentioned ear- lier in Chapter 2, this interest leads a business to have what is popularly known as corporate social responsibility (CSR).

Learning Organization One of the ways an organization can successfully discharge its CSR is by incorporating Green IT in both t he tacit (subjective) a nd explicit domains of t he organization. Ā us, to b e environmen- tally and socially responsible, an organization requires regular and unifi ed systems for knowledge management that lead it to be a learning organization [based on the original concept of Senge (1990)]. Ā is is so because an organization has to learn how to develop the necessary capacities and capabilities in discharging its CSR. Management for sustainability demands a m ultidisciplinary approach that range from the generic to the contextual and from the scientifi c to subjective levels.

Sociocultural Aspects of Green IT ◾ 251

Hercheui (2011) has f urther developed t he concepts of k nowledge management a s important in bringing about behavioral change w ithin t he organizations relating to su stainability. Hercheui’s arguments extend original studies by (Haas, Kanie, and Murphy, 2004) which point to the need for creating knowledge management frameworks which diff use best sustainability practices within the organization.

Ā e knowledge management aspects of Green IT comes into play in the social dimensions of the organizations when data and information within the data warehouses of the organization are continuously updated by the tacit knowledge of people working within and outside the organiza- tion. Green information systems need to ensure that what is subjectively understood and used by people at work also gets captured and coded in the green data warehouses.

Such k nowledge synchronization results in a l earning organization highlighted by Unhelkar et a l. (2009) in business collaborations. A s t he enterprise evolves to a g reen enterprise, t here a re changes a ssociated w ith at titude, l eadership a nd m anagement s tyles, i nterpretation o f te chnol- ogy, a nd t he b usiness en vironment. Ā ese sub jective c hange re quire t he o rganization to i mple- ment g reen k nowledge m anagement (as a pa rt o f its en vironmental i ntelligence a s d iscussed i n Chapter 6 ). E xtending a n e arlier de fi nition of k nowledge m anagement b y L audon a nd L audon (2002, 2 008), a nd applying it here, a g reen k nowledge m anagement c an b e u nderstood a s “the process of systematically and actively managing and leveraging the stores of carbon-related knowl- edge in the organization.”

Ā ese green knowledge management systems involve synchronization of the tacit and explicit bodies o f k nowledge c arried b y i ts s takeholders. F or e xample, t he depa rtment h ead c arries t he knowledge of changes to production schedule as well as likely unavailability of two key person- nel in the production run. Ā is knowledge needs to be made explicit and shared across multiple departments to not only optimize the production but also reduce the corresponding carbon con- tent. A knowledge management system will enable the department head to update the information in both formal, explicit form (such as updating a relational database) and also in a descriptive form (such as alternatives or backups to the key personnel for the production run). Ā is knowledge syn- chronization aspect of Green IT becomes more challenging in global, multinational organizations, whose business units and subsidiaries are often spread across geographical regions, exhibiting their quite distinct cultural attitudes and characteristics. Stakeholders in such global organizations need to particularly consider cross-cultural interactions in their green initiatives.

Green Social Stakeholders One of the important ways to handle cross-cultural issues in long-scale green transformation is by increasing and enhancing the opportunities for physical (face-to-face) communications a mongst the diverse stakeholders. While increasingly challenging, physical communications can help han- dle c ross-cultural i ssues, es pecially w hen t he tr ansformation p lan i s im plemented. I nformation fl ow b etween va rious g roups o f em ployees i n d iff erent re gions su pported b y t he o rganizational change management is required for successful transition to a green organization.

Ā e issues relating to collaborative groups of people and organizations need to be considered in global green eff ort. Ā ese issues include their individual preferences, corporate policies, govern- ment regulations, social norms and practices, and ethical codes of conduct. In fact, even diff erent age g roups, t heir p references a s c ustomers, em ployees, a nd re gulations, a nd t heir so ciocultural background i nfl uence t he G reen I T i nitiative. Ā e greening of an enterprise thus continues to demonstrate subs tantial sub jective e lement to i t. S uccessful t ransformations a cknowledge a nd

252 ◾ Green IT Strategies and Applications

incorporate that subjective element within the transformation program. Age groups, professions, cultural u pbringing, sp ecial n eeds, a nd e ducation a re so me o f t he cr iteria t hat s eem to d ictate these personal viewpoints. Table 8.1 lists these potentially subjective viewpoints on environmental issues for some of these categories of people. Table 8.1 also lists the typical activities undertaken by each of these categories of people and the corresponding green implications. Ā ese views can be spread out over the various levels of social changes that were shown in Figure 8.1.

Table 8.1 highlights the diff ering viewpoints and impacts of some of the roles in the society. Ā ese s ame ro les w ith t heir p otentially d iff erent v iewpoint a lso i nfl uence t he ro les w ithin t he organization.

Table 8.1 Views of Various Cross-Sections of Society (Children, Elderly, Tax Payers, Households, Sports People, Defense, etc.) on Environmental Initiatives

Categories Activities (Typical) Green Viewpoint (Typical Examples)

Children Playing games

Being entertained

Being monitored

Carbon emission due to use of electronic gadgets, TV, and computers

Usage not controlled and fi nanced by actual users

Adolescents Games

Entertainment message Exchange (IM, Email)

Carbon emissions resulting from gaming gadgets

Increased electronic storage and use of Internet-based communications for group games

Study activities (education) Reduced outdoor activities

Reduced activities with paper and pen

Reduced readings from books and journals (and therefore, less visits to the library, for example)

Desirous of faster results

Adults Social networks

Email/communications

Learning

Banking/fi nance

Work related

Search engines

Concerns about the environment from futuristic viewpoint (what will happen to my children and their children?)

Reduction in travel through—telecommuting

Capable of infl uencing policies and regulations

Elders Increase in social networks

Health

Skepticism and inhibition in using IT

People with special needs

Online facilities

Communication

Search engines

Ease of movements

Hiring of experience

Sociocultural Aspects of Green IT ◾ 253

Role-Based View of Green IT Green IT initiatives and their subjective interpretations are based on various roles. Typical roles within the society in general were discussed in t he previous section a nd h ighlighted in Table 8.1. When it comes to organizational stakeholders, these roles within an organization require detailed study. Ā e reason for this role- based study is to understand the subjectivity as well as the personal interests these roles would have in undertaking and supporting green transformations.

Figure 8.2 shows the various roles that participated in and were studied as a part of the Trivedi and Unhelkar (2009) survey. While these demographic data are of immense interest from a pure research and statistical viewpoint, it is also worth having a look at the roles of the survey partici- pants. Twenty percent of respondents were decision makers in the industry, who would be taking that strategic decision, based on available ROI metrics, to u ndertake a g reen enterprise transfor- mation. It is also worth noting that only about 2% respondents were in the role of an environ- mental regulator. Ā e survey was spread out over the various roles and has provided the basis for further in-depth research by Trivedi (2011). Table 8.2 shows the Green IT subjective views or areas of interest corresponding to these roles.

Ā e survey further explored various industry sectors and the viewpoints of the roles described in Table 8.2. It is observed that the viewpoints on Green IT change depending on the industry sectors.

Green IT initiatives thus continue to have a wide-ranging subjective impact on the individuals and roles they play at wo rk. Ā is, in turn, a lso a ff ects the way people are organized a nd operate within organizations. Formation of attitude toward carbon emissions and its impact on the work- place provides a si gnifi cant challenge to t he transformation of t he society to a c arbon-conscious society (Godbole, 2009). Technologies, such as mobile communications technologies, also impact the formation of attitude as they can completely change the way in which work is carried out. Ā erefore, this use of mobility has to be studied in this social dimension of Green IT.

Figure 8.3 shows the impact of Green IT on working lifestyles of individuals. Ā e gap between the p lace o f wo rk a nd t hat o f re sidence i s b ridged t hrough va rious m eans i n Figure 8 .3. Ā ere is physical commuting (the normal, standard way of working) followed by land-based or wired means of communications and, eventually, totally location-independent mobile communications. Ā e use of these varied communication mechanisms have direct bearing on the carbon contents

The subjectivity of Green IT is seen in the various roles within an organization. For example, the decision maker is primarily interested in the ROI on the green initiatives, where an engineer is interested in improve- ment of design and production process.

Table 8.1 (Continued)

Categories Activities (Typical) Green Viewpoint (Typical Examples)

Patients in hospital

Social networks

Email/news fi nance

EPR storage, improved health, increased carbon

Sports people Search engines

Social networks

Enhanced competitive performance

Training

Defense personnel

Information

Communication

Protection/security

Increased storage of data

More data servers

Communication equipment

Improved security and surveillance but also increase in carbon

254 ◾ Green IT Strategies and Applications

Decision Maker 20%

Project/QA Manager 10%

Environmental Regulator 2%

Advisor/Consultant 7%

Researcher 7% Engineer

16%

Technical Manager 9%

IT Consultant 11%

Others 18%

Figure 8.2 Role-based view of Green IT.

Table 8.2 Roles within Organization and Their Subjective Viewpoint

Role Green IT Subjective Viewpoint

Decision maker (20%) Major interest in the ROI, as that justifi es their actions. Legal, compliance requirements, however, change the balance of their ROI metrics. Green IT strategy formulation, policies. Participation in consortiums.

Project manager/quality assurance manager (10%)

Interested in the implementation of the green program, the steps to be taken for that implementation, and the successful review at the end of the project. Aims to complete the project with minimum time and budget.

Environmental regulator (2%)

Creation of regulatory benchmarks. Compliance metrics, their measurements, reporting of that carbon data. Interested in issues arising out of noncompliance. Participation in standard creation.

Advisor (management consultant) (7%)

Analyses of the organization business processes in order to introduce green environment. How to reduce risks in implemen- ting Green IT. Lean process. Participation in standards compliance.

IT consultant (including Green IT) (11% + 7%)

Model processes, optimize, smart networks, green enterprise architecture (ISO standards).

Engineer (manufacturing/ production) (16%)

Optimize production, improve design.

Technical manager (9%) Focus on technologies for carbon reduction (as against economy and services).

Researcher (7%) Undertaking Green IT investigation, pure and applied research. In any or all four dimensions of Green IT.

Sociocultural Aspects of Green IT ◾ 255

of the processes followed by these employees. For example, mobility enables the offi ce itself to be location-independent; therefore, it is not uncommon to have an employee working out of a client site, a vendor site, or any other location that is not a fi xed offi ce location. In particular, knowledge workers (e.g., consultants) or service providers (e.g., telecom engineers or insurance agents making site visits) can easily work through a “mobile offi ce.” Such a mobile offi ce, which is also a virtual offi ce, can provide immense carbon benefi ts coupled with social benefi ts.

Ā e energy saved from reduced commuting to and from work or by completing a sales transac- tion on the spot using a mobile device also needs to be calculated and accounted for. Ā e opportunity to access back-end databases instantaneously, meeting business partners in a dynamic mode by mak- ing instantaneous changes to n egotiating stances a re a ll excellent business benefi ts that are always pursued by businesses; however, these same advantages also have the carbon saving advantage due to reduced movement of people and optimized processes through mobile computing devices.

Ā e eff ort, from an organizational perspective, are the need to change business models and management (see green enterprise transformation work areas discussed in Chapter 9), incorporat- ing t he u se o f c ollaborative te chnologies (e.g., de sktop sh aring, i mage sh aring a s a lso f acilitate social networking tools such as blogs, Wikis, Twitter, and Facebook). Virtual desktop, which was mentioned i n Chapter 4 in d iscussing v irtualization, f acilitates c ollaborative u se of re sources to enable sharing of work amongst people. Such collaborative tools enable sharing of tasks, quicker time to completion, and, as a result, less carbon.

Ā e use of abovementioned technologies results in a collaborative workplace that changes the carbon footprint of the organization. Collaboration also changes the social dynamics within and outside o f t he o rganization. Ā is c hange i nclude c orresponding c hanges to wo rkplace re lation- ships, elements of HR policies and practices, as well as legal and ethical responsibilities of both the organization and the workers.

Ā e so cial d imension o f G reen I T i s i nstrumental i n en gendering t hese a forementioned changes enhancing corresponding capabilities of the organization. Ā e Green IT transformation

Physical Commuting

Wired Commuting

Home Office

Mobile/Wireless Commuting

Social Impact of Environmental Intelligence Client

Site

Others

Vendor Site

Figure 8.3 Green IT infl uencing working lifestyle.

256 ◾ Green IT Strategies and Applications

framework is also eff ective in ensuring that the changes are proved through the Green IT metrics (Trivedi and Unhelkar, 2009). For example, the reduction in commuting as a result of these initia- tives, and the corresponding reduction in infrastructure and building facilities translate into major carbon savings for the organization that have to be factored in those metrics. Ā e HR department of an organization will be involved in ensuring that the working lifestyle of an individual worker is not adversely aff ected by these Green IT changes. Ā e reduction in travel and potential increase in job satisfaction can be considered as the spin off benefi ts of carbon reduction.

Ā e underlying technologies and systems relating to environmental intelligence have also been used to reorganize processes that have a social impact. For example, Bhalla and Chaudhary (2011) have discussed clever use of environmental intelligence systems that dynamically compute travel times and traffi c congestion and, subsequently, advise motorists in a way that reduces that travel times, idling times for their vehicles, and improves traffi c fl ows. Gala and Unhelkar (2009) have also rep orted o n t he i mpact o f at titude a nd so ciocultural f actors o n m obile p hone u sage t hat potentially i mpact G reen I T. Ā ese a re a ctivities w ithin t he G reen I T spa ce t hat h ave a d irect impact on a large cross-section of society in general, and working lifestyle of people in particular.

Green User Practices Figure 8 .4, ba sed o n t he Trivedi a nd U nhelkar ( 2010) survey, highlights three of the many major areas of changes to working lifestyles that are involved in a g reen enterprise transformation. Survey pa rticipants were q uizzed i n ter ms o f t he i mportance they gave to the ICT practices that they felt would impact the carbon footprint of their organization. Ā ese practices included

videoconferencing, telecommuting/teleworking, fl eet a nd fi eld force management, web, a nd u se of collaboration tools such as emails and mobile phones/PDAs. Figure 8.4 shows these practices in terms of their importance to carbon reduction. Ā e percentage respondents who “agreed” and “strongly agreed” to t he use of the approaches shown in Figure 8.4 in reducing the carbon foot- print of the organizations itself proves their tremendous importance in the green initiative.

A total of 57% of t he respondents “agreed” to “strongly agreed” t hat videoconferencing will improve the carbon footprint of their organization. Similarly, a large 79% of respondents “agreed” to “strongly agreed,” when asked about the positive impact of telecommuting/teleworking on the carbon cre dentials o f t heir o rganization. F inally, a lmost a ll o f t he en tire re spondents ( close to 90%) felt that the use of mobile technologies will reduce commuting and thereby reduce carbon footprint.

Videoconferencing is increasingly on the use, especially as the costs associated with it are drop- ping rapidly. Ā is technology can thus be used to better communicate with a group that may be geographically dispersed. Care should be taken, however, to balance the carbon savings due to the use of videoconferencing (such as fuel costs associated with vehicles or airplanes) versus the carbon generated as a result of videoconferencing itself.

Another i mportant u ser p ractice w ith re spect to G reen I T i s t he re engineering o f b usiness processes o f a n o rganization ba sed o n v irtual te am. Ā e c hanges re sulting f rom fo rmation a nd operation of virtual teams require corresponding changes to the processes that describe the way in which business is carried out. For example, an insurance claim process that requires coordination between the accounting, the legal, and the business portfolio processes could all be coordinating virtually rather than physically to settle a claim. Ā is would change the description of the claims

Videoconferencing, telecommuting, and use of mobile technology in work—all have substantial, positive impact on the organi- zation’s carbon footprint. All these green users’ practices also affect the social aspects of the users.

Sociocultural Aspects of Green IT ◾ 257

process, t he de liverables, a nd do cumentation a ssociated w ith it a nd t he organizational roles. I n terms of project-based work, virtual teams can be project specifi c, with teams being put together through t he c ommunication te chnologies to a chieve a n o utcome, a nd t hen b eing d isbanded. Ā ese v irtual te ams w ill o ften b e c ollaborating g lobally a cross t he t ime z ones, w ith c olleagues from diverse areas of business at various levels all drawn together to deliver outcomes.

Attitude and Subjectivity in Green IT Subjectivity of Green IT was mentioned at the start of this chapter and summarized, from a socio- cultural p erspective i n Table 8 .1 a nd ro le-based p erspectives i n Table 8 .2. Ā e g reen en terprise transformational work in the social dimension is based on bringing together the viewpoints of roles within and also outside the organization. Harding (2002), in his preface to the book Environmental Decision-Making, puts it rather succinctly: “Given the critical state of the world’s environment, it is crucial to employ all of the benefi cial knowledge, technology and tools that scientists, engineers and other professionals can off er.” Ā us even the most sophisticated scientifi c and technological knowl- edge is by itself inadequate. Ā e need for an all inclusive commitment to applying the principle of environmental consciousness during their work and personal lives is vital.

Figure 8.5 highlights the source of this subjectivity from an employee’s viewpoint. Ā e busi- ness priorities, t he environmental priorities, a nd t he p ersonal priorities of i ndividuals a re m any times at odds with each other. For example, an employee has a business priority to provide excel- lent service to a customer, but the environmental priority requires that the service be provided with

5%

27%

11% 36%

21%

Video conferencing (Collaborative, Real Time Ideas Sharing)

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

4% 9%

8%

44%

35%

Telecommuting/Teleworking (Communications Focus)

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

3% 3% 6%

49%

39%

Mobile/PDA Usage (Data and Function Oriented)

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 8.4 Green user practices that have social impact.

258 ◾ Green IT Strategies and Applications

a shorter time period and with minimal opportunity for a social interaction. Ā ese two priorities can not only be at odds with each other but can also be at odds with the personal priority that includes family time, personal interests, and the desire to b e treated equitably. For example, one employee sh ould n ot b e d isadvantaged d ue to a dditional, c arbon p roducing, a ctivities o f o ther employees. Ā e a rea of intersection of t hese t hree priorities needs to b e studied under t he social aspect of Green IT. Ā e organizational (HR) policies and practices then have to work on expand- ing that intersection of the three priorities as shown in Figure 8.5.

Ā is is particularly important because, as argued by Hercheui (2011), the domain of sustain- ability i s n ot o nly c omplex a nd u ncertain b ut i s a lso h ighly dep endent o n t he c ontext ( Kanie and Ha as, 2 004; P achauri a nd R eisinger, 2 008). F urthermore, t he ap plication a nd p ractice o f sustainability requires knowledge that is specifi c to t he context. Ā is context is the situation and role played by t he p erson. Ā e environmental science per se i s a fi eld i n w hich most k nowledge depends o n t he e ffi cient o verlapping o f w hat we k now g enerically a nd w hat i s k nown l ocally (Hercheui, 2 011). I ndividuals c hange t heir at titude a nd b ehavior w hen t he objective on c arbon emission relates to them, personally. Ā us, the data and information related to carbon emission is likely to be interpreted in accordance with the personal needs, existing attitudes, and interests of individuals. Ā e social, economical, and political contexts provide the background for the change. However, attitude change in individuals is a subjective matter that occurs only when the personal interests of the individual are also catered for in the Green IT initiative of the organization.

Whenever approached with a new system, processes, and corresponding changes in the approach to work, users tend to be extremely sensitive. Figure 8.6 shows how the individuals in an organiza- tion, on its path to green transformation, are likely to personalize the entire initiative. Ā e success or failure of the entire green enterprise transformation program, from a social perspective, rests on the perceived ease, perceive usefulness, and perceived relevance of the initiative. Technology adop- tion, in this case, is the adoption of the Green IT systems to h elp, support, measure, and report on the activities and tasks of individual users. Ā e eff ect of the green system on the career, future growth, and rewarding structure are issues of concern for the individual users. Starting right from the “personal” aspects of the drivers that drive this Green IT transformation and the dimensions or channels along which the transformation actually takes place, this personalization remains at the c enter of t he at titude of t he u sers a nd t heir personal “ buy-in.” Figure 8.6 f urther shows t he tiers of infl uence—social, followed by organizational and eventually personalized—of the green enterprise transformation.

Environmental Priorities (Rule & Attitudes)

Personal Priorities (Families;

Equitability)

Business Priorities (Profit & Cost)

Individual’s Priorities

Figure 8.5 Subjectivity in Green IT arises from differencing priorities of the same individual.

Sociocultural Aspects of Green IT ◾ 259

Deshpande and Unhelkar (2011) have discussed the need for management, ICT, and other pro- fessionals within the organizations to collaborate in using the emerging technologies as a means to eff ect changes in their environmental behavior. Ā is collaboration, according to Deshpande (and Unhelkar (2011), also requires employee and customer participation. Ā us, it is essential that the strategies for a cquisition a nd m anagement of i nformation a s we ll a s for proper i mplementation include all the employees in order to infl uence their practices, secure their participation, and thus ensure success of the overall campaign.

Green IT Ethics and Code of Conduct Ethics a nd p rofessional c odes o f c onduct h ave b een d iscussed, formulated, and promoted by the IT profession through its vari- ous associations.* Ā ese codes set the expectations of professional behavior from those who adhere to the code. While IT itself is a nascent profession as compared with, say, medicine or construc- tion, Green IT is even more new. Ā erefore, ha ving a n et hical base will enable Green IT to have a common view, a common set of behavior, and understanding that is shaped by the experiences of practitioners, sharing of case studies, and relating of work experiences. G reen I T e thics a re m eant to p rovide g uidelines through wh ich a n i nterpretation of what is c ommonly bel ieved to b e r ight o r w rong c an b e m ade. Ā ese e thical c ode n eed to expand on seven a reas of i nformation cr iteria, t hat i s, e ff ective- ness, effi ciency, confi dentiality, integrity, availability, compliance, and reliability (based on ACM) as they apply to Green IT.

* Ā e associations are IEEE, ACM, and ACS.

Green IT needs a code of conduct. Extending the current IT professional codes of conduct, and adding green-specifi c requirements to them, produces a list of code that individu- als and organizations can strive to follow. Having such a code of conduct is vital, espe- cially as Green IT is a nascent profession as compared with, say, medicine or construc- tion. Having an ethical base enables Green IT to have a common view, a common set of behavior and understanding that is shaped by the experiences of practitioners, sharing of case studies, and relating of work experi- ences. Green IT ethics are meant to provide guidelines through which an interpretation of what is commonly believed to be right or wrong can be made. Similar to the IT ethical code, the Green IT code of ethics also needs to delve into the seven areas of Information Criteria, that is, effectiveness, effi ciency, confi dentiality, integrity, availability, com- pliance, and reliability (based on ACM).

Organizational Perspectives on Environment

Individual’s Personalization of the Perspectives

Generic Social Perspectives on Environment

Personal Green Dimensions for

Change

Personal Green

Drivers

Personal Green Metrics (for Rewards)

Personal Risks in Green Domain

Figure 8.6 Personalization of the green context by end-users leads to change in attitude.

260 ◾ Green IT Strategies and Applications

In discussing the social aspect of Green IT, it is worth delving into these ethical codes of con- duct as they apply to Green IT. A Green IT code of conduct can augment and support the expecta- tions and behaviors of individuals operating as employees and consulting professionals as well as the organizations that subscribe to that code of conduct. Ā is is particularly helpful in a new domain such as that of Green IT, where issues can rise and proliferate around the va lidity of carbon data and mechanisms of communication surrounding Green IT.

Ā e tiers of audience for Green IT communications are wide ranging—from the general pub- lic, school going children, and likes (listed in Table 8.1) through to a d ata center director. W hat is b eing d iscussed, debate d, a nd re searched i n ter ms o f a c lean en ergy e conomy a lso n eeds to be c ommunicated w ith au thenticity. Ā is h onesty i n c ommunication a nd rep orting i s a nother area wherein a Green IT ethical code of conduct can provide a good starting point. Ā e need to understand the terminologies such as energy effi ciency, renewable energy, and carbon neutral and explain them in layman’s terms is vital. Similarly, the need to isolate vested interest groups who may launch into a potential misinformation campaign is also vital. Ethics and code of conduct for Green IT can control such activities and bring in clarity and positive focus—resulting in reli- ability and trust in green data, information, and knowledge.

From the ethical point of view, Green IT needs to ensure that the transformation of the orga- nization to a green organization contributes to society and human well-being. Furthermore, such a code of conduct provides the organization that subscribes to it with guidelines and direction to remain compliant. Green transformation process must ensure ongoing compliance while evalua- tion of IT systems, analysis of possible risks, and their impacts are considered.

While the code of conduct for Green IT only expands and builds on the existing professional codes, it i s i mportant to fos ter t rust a mongst t he Green I T professionals, u sers, a nd c onsumers of t he G reen I T i nitiatives a nd t he so ciety at l arge. M cDermid ( 2008, p . 3 3) describes “ethics involves being reasonable and having good reasons to support the choices we make.” A publicized code of conduct for Green IT can go a long way in establishing and maintain a h igh ethical bar within this relatively nascent domain.

Following are the statements and potential advantages of having a Green IT code of conduct. Organization following the Green IT code of conduct will:

Agree to a f undamental o bligation o f b usinesses to re duce c arbon em issions i n a ll t heir ◾ activities. Conform to to tal h onesty i n re cording, a nalyzing, a nd rep orting o f c arbon d ata—both ◾ manually and through IT systems. Ensure that the eff ort to reduce carbon is undertaken in a socially responsible way and with ◾ no harm to p eople involved in the reduction attempt (this is particularly important in the hospital sector). Ensure ongoing eff ort at all levels of IT—architecture, design, development, testing, deploy- ◾ ment, a nd m aintenance—of h ardware, so ftware, a nd n etworks—to re duce t heir c arbon emission (this c ode g oes b eyond t he o peration a nd m aintenance a nd a lso fo cuses o n t he design aspects of IT hardware and systems). Ensure ongoing eff ort to reduce carbon in procurement, operation, and disposal. ◾ Promote c onfi dentiality a nd i ntegrity w ithin t he organization a nd t he I T profession (this ◾ will nurture public trust and confi dence). Maintain security and confi dentiality of carbon data and information (within the organiza- ◾ tion and the way this data interfaced with the regulatory and compliance portals). Make the carbon data available publically. ◾

Sociocultural Aspects of Green IT ◾ 261

Avoid green washing or incorrect promotion of the organization’s carbon reduction eff ort. ◾ Contribute toward development of Green IT standards worldwide and their application in ◾ practice. Ensure participation in industry and research surveys including workshops to i ncrease the ◾ overall body of knowledge. Attempt to u se a ll emerging technologies to re duce existing c arbon emissions a nd prevent ◾ increase in carbon emissions due to future business activities. Endeavor to maintain validity of carbon data by subjecting itself to regular reviews and audits. ◾ Maintain the security and privacy of carbon data. ◾ Honor contracts, responsibilities, protocols, and agreements associated with Green IT and ◾ carbon trading. Promote public understanding of the issues related to c arbon emissions particularly in the ◾ context of the industry sector in which the individual/organization operates. Prioritize all business activities based on their ability to reduce carbon emissions. ◾ Adhere to t hese ethics and endeavor to create values that are based on the new green order ◾ of things. Ensure high level of competency in all carbon-related activities of the organization such as ◾ measurement and reporting of carbon data. Honestly represent “skills, knowledge, service and product” relating to carbon. ◾ Endeavor to interact with other disciplines within the organization to reduce the overall ◾ carbon footprint.

Privacy and Security of Green Information Ā e transformation of an organization to green enterprise also needs to consider the privacy and confi dentiality of the information that is generated in the process. Ā e increasingly sensitive nature of the carbon data requires careful control, secured storage, and relevant reporting. Management has to take responsibility in protecting this data as the fi rm undergoes green transformation and later, as the data gets stored in the organizational systems. Ā is security of data, however, has to be balanced with the need for greater access to green information. Ā is balancing act will become challenging especially if carbon trading becomes the norm rather than an exception because pre- viously confi dential information is now public and has the potential of infl uencing the future of the organization.

Carbon data can include the emissions data pertaining to a n individual, a depa rtment, or an organization. Ā is data can include time span—such as for a day, a week, or a year. Furthermore, through web s ervices, t he organization i s l ikely to c ompare its c arbon p erformance a gainst t he permissible government regulatory limits in a real-time basis. Ā is comparative information may get distributed intentionally or unintentionally. A sm all organization may be able to p rotect t he privacy a nd s ecurity o f t his d ata i n a re latively e asy m anner. F or a l arger o rganization, e spe- cially with multiple geographical regions, maintenance of carbon data can be more challenging. Elements of enterprise data architecture, principles of backup and security of data, and risks asso- ciated with maintenance of data need to be applied to carbon data as stringently as it is applied to cash-fl ow data. Furthermore, when smart metering is used for automatic recording and analysis, stricter security measures are required to protect data. For example, carbon usage by the employee has t he p ossible side e ff ect of de creasing t he t rust b etween m anagers a nd employees. Ā ere fore, security policies of an organization must specifi cally include sections to protect carbon data.

262 ◾ Green IT Strategies and Applications

Green Washing Claiming so mething t hat i s n ot en tirely a ccurate i n ter ms o f c arbon em issions a nd t he o verall carbon footprint of the company is “green washing” (made up of “green” and “whitewash”). Green washing results from overzealous desire to capitalize on an organization’s environmental and sus- tainability initiative. For example, green washing is said to have occurred with terminologies such as carbon neutral, energy effi cient, fuel effi cient, low c arbon, a nd environmentally f riendly have been used carelessly a nd without due consideration to t he underlying standards a nd defi nitions. Adherence to Green IT’s professional code of ethics requires organizations to re frain from green washing.

Ā e complexity of terminologies and lack of commonly accepted standards for those terms is a contributor to the phenomena of green washing. Ā is phenomena result in public mistrust and suspicion of any claims by organizations in reducing their carbon footprint.

Green products, green processes, and green infrastructure need to be sustained by valid mea- sures a nd au thenticated b y i ndependent aud its. E nergy s tar r atings, g reen C MM, a nd si milar ratings can go a long way in reducing green washing.

Communications in Green Transformation Projects Green transformation also involves interactions amongst people, departments, o rganizations, a nd go verning bod ies. C ommuni- cation is required between internal departments of organizations to relate corporate philosophies, encourage teamwork, and develop strong relationships within and outside of an organization.

Ā e i nternal c ommunication o f t he o rganizations i ncludes instruction in the development and maintenance of transformed green p rocess. E nhancements to t he p rocesses a nd t he g reen knowledge management systems also need to be communicated. Good communication will socialize and support employees and customers in understanding t he reality of Green IT within t he

organization. Eff ective organizational communication, from a green viewpoint, focuses on creat- ing an understanding of the technologies and process that are explicit and the green attitude that are implicit.

Ā ere are two major important areas of communication:

Wit hin the organization—between managers and employees. ◾ Outside of the organization—with the customers, partners, and regulators. ◾

Communication within the organization can be directed by the management. Ā es e commu- nications i nclude standard documents, emails, verbal phone, a nd so o n. Ā is communication is meant to encourage employees to the regulations. Internal communication of the Green IT initia- tive is a combination of formal and informal communications.

Communicating outside of the organization has to b e more formal. Regulations a lso dictate the format, frequency, and style of communication. Based on the easier discussion of web services (Chapter 6), many of these external compliance and regulatory communications will be standard- ized and formatted electronically. Table 8.3 summarizes these various means of communications and their Green IT implications.

Effective organizational communication, from a green viewpoint, focuses on creating and understanding of the technologies and processes that are explicit and the green attitude that are implicit. The technologies and processes are relatively easier to com- municate, but communication to change the attitudes is not. The subjectivity of attitude toward Green IT requires communication at multiple levels and various forms. The pur- pose, content, channel, frequency, entities involved, feedback, and interactivity are all part of the Green IT communication.

Sociocultural Aspects of Green IT ◾ 263

Green IT Project—Channels of Communication Communication can be through various channels in a Green IT transformation program. While the details of such a transformation is discussed in the next chapter, this section highlights various ways in which communication can take place, and the ways of improving it during of the Green IT initiative of an organization.

To start with, involvement of all stakeholders, the “buy-in” is crucial. Ā is will ensure that all participants involved in a nd a ff ected by t he project h ave a c lear u nderstanding of t he organiza- tional strategies a nd project goals. Ā ese important pa rts of a t ransformation project need to b e explained in the most clear and understandable way. Green IT terminology can be a challenge in this communication and needs to be articulated correctly. Ā e channels for communication need to be available to the team members to contact each other especially in a global organization where members m ay not b e i n physical proximity. Ā e f requency of c ommunication needs to b e h igh earlier i n t he project. Standard meeting protocols l ike t aking t he m inutes a nd ci rculating t hem apply in particular to Green IT projects.

Following are the categories of communication channels as shown in Figure 8.7 that need to be considered in a Green IT project:

Personal—the face-to-face communication that occurs when the green transformation pro- ◾ gram is underway. Ā is can be a one-on-one or a one-to-many communication that presents the arguments, approaches, strategies, and policies of green enterprise transformation. Collaborative—this i s t he g roup-based e lectronic c ommunication m echanism l ike w ikis ◾ and blogs, as also the rapidly ascending social network media. Mobile—through phones and SMSs that enable context-based communications. ◾

Table 8.3 Communication Format and Green IT Implications

Communication Green IT Implications Examples

Purpose Reason for the Green IT offer To change attitude to data storage that will result in reduced server space

Content (articulation)

Employees are asked not to create additional backups of data and images

Channel Availability, ease of use Figure 8.7

Frequency Higher frequency required at the start of the green transformation project.

Daily

Monthly

Push—pull

Entities involved levels

Person is in charge of making sure the communication takes place

Right level to address the communications

CGO, CIO

Feedback interactivity

Return channel to indicate carbon measurements

Customers, regulators providing feedback

264 ◾ Green IT Strategies and Applications

Asynchronous—electronic communication that can be uploaded on the organization’s site ◾ and then accessed by employees and users at their own convenience. Physical—this is the age-old communication medium making use of paper; unlikely to be ◾ very popular in a green enterprise transformation yet may have a role to play. Group—that makes use of electronic as well as physical communication facilities (e.g., ◾ webinars, seminars, workshops).

Green HR and Changing Organizational Structures Organization’s social changes resulting from Green IT initia- tive include changes to the skill set of individuals supporting the organizational s ystems a nd processes. Ā is requires sup- port from the green HR function of the organization in terms of understanding, positions, training, and rewarding the staff

for t heir G reen I T e ff ort. F or e xample, a s d iscussed b y S herringham a nd Unhelkar ( 2011), with greater automated, location-independent, and personalized capabilities of IT, less man- ual i ntervention f rom t he o rganizational s taff i s re quired to c onduct b usiness t ransactions (e.g., BPay). As a result, the requirements of a sk ill set changes from that supporting routine transaction p rocessing to t he o ne t hat re quires p roactive p roblem so lving w hen t hings g o wrong. Ā is sc enario i s si milar to t he one f rom business process re engineering i nitiatives— except that here, the carbon calculation metrics are also fi rmly included in the ROI metrics. Changing sk ill sets of h ighly sk illed workers w ith advanced problem solving, superior com- munication sk ills, a nd t he a bility to l everage o n G reen I T i s w ithin t he do main o f H R to study a nd i mplement. Opportunities to a dopt Green I T occur a s c hanges to t he k nowledge worker assembly line are required in response to changing markets and business dynamics.

These social media networks also enable participation from not only the employees and other works within the organization but also, externally, the customers, users, and members of the public.

People

External

Formal

Systems

Internal

Formals

Personal • Face to face (Voice) • Emails

• Wikis; Blogs; Tweets • Social media

Collaborative

Mobile • Phone; SMS

Asychronous

Physical

Group

• Podcasts

• Brochures • Newspaper Adverts • Mail

• Workshops • Webinar

Figure 8.7 Channels of communications in Green IT projects.

Sociocultural Aspects of Green IT ◾ 265

Figure 8.8 shows the evolving role of the HR function with a green enterprise. A green HR has to engender change from the social perspectives (as against the technical or economic perspectives). Ā is change is initially focused at an individual level with the organization. Ā e departmental change deals with procedures and practices. Ā e organizational change involves restructuring the hierarchy, creation of new green-specifi c role, and spelling out the reward structure for meeting green goals.

In addition to working with organization in its green endeavor, the HR function itself needs to be organized from ground up. Figure 8.9 shows the basis of such functional organization. Ā e CGO (also referred to as CSO) remains at the helm, responsible for managing the transformation to a green enterprise. Ā is is the strategic role that covers the length, breadth, and depth of Green IT strategies. Ā e environmental manager forms the next tier in a g reen HR setup. Ā ey have a department level focus, and are dealing with metrics and measurement (compliance) issues. Ā e environmental offi ces have a very practical, operational focus.

Rewarding

Training

Positioning

Understanding

Green HR

Engendering Change for

Green

Organization

Department

Individual

Figure 8.8 Evolving green HR.

Practices

CEMS + Metrics

Corporate Board (CSR Committee)

Chief Green Officer

Environmental Manager 1

Tran sform

Man age

E Officer 1 E Officer 2

Environmental Manager 2

E Officer 3

Figure 8.9 Organizing the green HR function.

266 ◾ Green IT Strategies and Applications

Ā e adoption of the changes in working lifestyle will also occur in diff erent ways and with dif- fering pace in the new green enterprise. Some individuals might take up the transformation imme- diately and embrace it in all activities of their work—starting right from switching off the computers in t he immediate, t hrough to u ndertaking strategic audits of t heir equipments a nd corresponding carbon emissions. Other individuals will wait and watch, and take it up as the results seem to climb up t he b ell-curve o f suc cess. F inally, so me w ill b e t he “ laggards” w ho w ill w ait u ntil t he en tire transformation is complete. Ā ese various types of individuals and their varying speeds of adoption should be carefully planned for, and factored in, in the green HR initiatives of the organization.

Ā e subjective or tacit aspects of Green IT systems are an important consideration in the social dimension of Green IT transformation. Figure 8.10 shows the environment and work in the context of the individual. Ā is individual is carrying his or her work in the head for most part. Ā e bridging of the gap between this tacit knowledge (in this case related to G reen IT) and the corresponding explicit k nowledge s tored i n t he g reen k nowledge-base o f t he o rganization i s v ital i n t he so cial dimension. Various strategies have been adopted by organizations to narrow this gap between tacit and explicit knowledge (Marmaridis and Unhelkar, 2011; Lakkaraju and Saikiran, 2009).

For example, the Green IT systems and databases will be replete with carbon emissions data, metrics, and related formulae on carbon performance, and tables and graphs to facilitate report- ing. However, the subjective individuals are likely to carry their attitude in their minds—together with their views on the impact of their behavior on the carbon footprint of the organization.

Green IT systems, on the other hand, should off er spaces of interaction, permitting people to ask questions, to d iscuss t hemes, to de fi ne priorities, in ways of fostering t he creation of k nowl- edge, doing a b etter use of the available knowledge, and internalizing know-how that cannot be communicated only through codifi ed means (Hercheui, 2011). Social media a nd networks off er personalized opportunities for individuals to interact with each other and form a collective opin- ion to support the diff usion of Green IT attitude and tacit viewpoints. Ā ese social medias, while providing what the “grapevine” provided in the pa st, need to b e harnessed in the HR’s eff ort to diff use Green IT within the organization.

Work (Technologies, Systems)

Work Style (Personalization) C

Individual (Employee, Customer)

Work Support (HR, Rewards, Motivation)

Figure 8.10 Environment and work in the context of an individual.

Sociocultural Aspects of Green IT ◾ 267

Institutionalized support for the available use of social media communication in Green IT transformations i s vital. Ā ese so cial m edia n etworks a lso en able pa rticipation f rom n ot only the em ployees a nd o ther wo rks w ithin t he o rganization b ut a lso, e xternally, t he c ustomers, users, a nd m embers o f t he p ublic. Ā is is particularly true of some small and medium enter- prises w hich m ay n ot h ave su ffi cient re sources to m anage a nd p romote t heir g reen i nitiatives (Marmaridis, 2011).

Green-Collar Workers: Roles and Skill Sets Green HR considerations thus lead to a discussion of green- collar wo rker. G reen-collar wo rkers a re t he o nes t hat a re a sso- ciated directly or indirectly with an organization’s endeavor to become a green organization. Green HR has to defi ne and posi- tion green-collar workers correctly. Properly defi ned green-collar roles reduce friction amongst staff and support Green IT initia- tives. A Green IT project will create new roles, as well as trans- form t he k nown roles i n I T a nd i n t he business. For e xample, business analysts, project managers, architects, and quality assurance managers may also be clas- sifi ed as green-collar workers.

Ā e roles played by t hese g reen-collar workers c an be d ivided into t he following t hree main categories:

Ā e roles t hat a re newly created w ithin t he organization a nd t hat a re specifi c to t he green ◾ initiatives of the organization (such as a green transformation champion). Ā e ro les t hat e xist w ithin t he organization b ut a re m odifi ed to be fi t t he g reen organiza- ◾ tional initiatives (such as a green business analyst). Ā e external roles that deal with the specifi cation of carbon levels, and audits of its compliance ◾ (e.g., an external carbon regulator).

Skills Framework for Information Age (SFIA) and Green HR For a smooth transformation of an organization, it is essential that these new Green IT specifi c roles a re u nderstood a nd we ll de fi ned. Ā e p ossibility o f ap plying a n i ndustry-wide s tandard to t hese roles should be considered by Green HR. For example, t he sk ills framework for infor- mation a ge (SFIA) provides a n e xcellent f ramework for p ositioning G reen I T ro les w ithin t he organization.

SFIA i s i ncreasingly b ecoming p opular b ecause it en ables i dentifi cation of s uitable le vels of competencies w ithin t he I T i ndustry a nd su ggests h ow t hose l evels a nd c ompetencies c an b e applied in practice. Ā erefore, SFIA has the potential to provide an excellent backdrop for defi ning the new green roles. SFIA can be used to create formal description, registration, certifi cation, and training of Green IT roles. Green HR will be most interested in the description and the training aspect of these new roles. Existing roles can also be redefi ned and/or mapped to the SFIA skill set. Together w ith t he CMM sc ale for green maturity, a nd Green IT code of conduct, SFIA c an be used in helping in the maturing of Green IT as a profession.

The skill sets of green-collar workers map easily to the skill sets defi ned by the SFIA. This provides basis for creating a green HR organizational structure with levels. The seven levels of SFIA that are applicable to green HR are strategies, initiative, ensure, enable, apply, assist, and follow. These have been additionally grouped into immediate, 1–3-year strategies and 3–5-year strategy.

268 ◾ Green IT Strategies and Applications

Ā is potential mapping of the green skills within an organization to the corresponding SFIA levels and competencies is shown in Figure 8.11. Ā ese relevant SFIA levels are also briefl y described below in the context of Green IT:

Level 7: Strategy and Inspiration—Individuals performing at this level focus on the strategic ◾ aspect of the organization. Ā erefore, this role will be focused on the creation of Green IT strategies and high-level visions for the organization, as was discussed in Chapter 2. Ā is is a vital role, typically that of a CEO and CGO (see the mind map of a CGO in Chapter 3). Ā e decisions and actions of individuals in these roles not only infl uence their own organiza- tion, but also other organizations and the entire industrial sector in which they exist. Ā es e roles are also described as “risk taking” roles, as the individuals at this level are continuously balancing t he internal risks a ssociated w ith t he Green IT initiative w ith t he external risks brought in from the various drivers discussed in Chapter 2. Level 6: I nitiate a nd I nfl uence—Mainly u ndertaken b y e xecutive a nd s enior l eaders o f a n ◾ organization. Green roles w ithin t his level a re re sponsible for i nitiating a nd u nderstanding green en terprise t ransformation, m anage t he R OI, a nd t ake a u nifi ed a pproach ac ross t he organization ( Chapter 3 ). S trong l eadership, m anagement, a nd c ommunication sk ills a re required to succeed in the roles at this level. For example, decisions relating to changes to the entire infrastructure of the organization such as relocation of data centers, building of new data centers, formation of alliances with green service providers, strategies for replacement of entire end-user devices, and fundamental changes to the supply chain of the organization can

7. Strategize; Inspire

6. Initiate, Influence

5. Ensure, Advise

4. Enable

3. Apply

2. Assist

1. Follow

7. Strategize; Inspire. CEO & CGO to Lead Organization; Focus beyond Organization; Anticipate Risks

6. Initiate and Influence Green Enterprise Transformation; Holistic Focus; Green ROI; Handle Risks

5. Advise on Green Implementation; Invite/Provide Consulting Experience; Update to Green HR; Apply Legal Aspects

4. Enable & Support Green Transformation (department level); Motivate

3. Apply Green Metrics; Comply with Rules; Use CEMS across Departments

2. Model Green process & operational requirements

1. Document Green system flows; Record Green Data

SFIA Levels Green Skills

Figure 8.11 Potential mapping of green skills to SFIA levels.

Sociocultural Aspects of Green IT ◾ 269

be brought about by this level. As compared with the level 7, individuals working at this level are able to infl uence the transformation program but primarily at the organization level. Level 5: Ensure, Advise, and Consult—Individuals working at this level of SFIA are able to ◾ ensure transformation of an organization to a green organization. Ā ey have specifi c Green IT sk ills t hat enable t hem to p rovide advice a nd consult t he line managers responsible for green t ransformation w ithin t heir depa rtments. G reen H R h as to sp ecifi cally defi ne the skills at this level based on the experience and responsibilities held by the individual in the IT industry together with the ability of understand and advise on the new green concepts, standards, and regulations. Individuals with accounting or legal background will also be required to provide this consulting input to organizations as long as they understand the underlying I T s ystems a nd f unctions. I ndividuals w ho a re te chnologists t hemselves, suc h as data center directors, will be able to ensure implementation of virtualization strategies, optimization of servers, and optimum use of building infrastructure. Level 4: Enable—Individuals operating at this level on the SFIA skills map are enablers; they ◾ work primarily at depa rtmental level, leading a nd motivating t heir s taff as the organization undergoes green enterprise transformation. Ā e skills requirement at this level are not as stra- tegic a s t he p revious l evels, ye t t he i ndividuals at t his l evel sh ould b e a ctively i nvolved i n policy formulation and should work out approaches to implementing those Green IT policies. Ā e practice of Green I T at t his level a lso i nvolves c lose a ssociation w ith Green I T s ystems (CEMS—discussed in Chapter 9 and also in Chapter 7), and approaches to confi guring, test- ing, deploying, and using them to enable achievement of green goals set by the organization. Level 3: A pply—Individuals at t his l evel a re fo cused o n a ccurate ap plication o f t he r ules ◾ and r egulations, p olicies a nd p ractices, s tandards a nd p rocedures a ssociated wi th G reen IT. Ā us, as the organization undergoes green enterprise transformation, the individuals at this level are actively involved in using CEMS, identifying areas for process improvement, modeling, and investigating processes, using smart meters, applying green metrics, and con- fi guring business rules within IT systems. Level 2: Model Assist—Individuals at this level are primarily involved in modeling processes, ◾ systems, data, and operational requirements. Ā us, this level develops and applies green analy- sis skills, undertakes writing of green system use cases (Chapter 7), models business processes from a n o ptimization v iewpoint, fo llows t he i ndustry s tandards (such a s ISO 1 4001), a nd ensures that the green transformation objectives are faithfully carried out in practice. Level 1: Follow—Ā is starting level in the IT skill set is primarily involved in documenta- ◾ tion i n va rious a reas of t he g reen t ransformation i nitiative. Ā us, i ndividuals operating at this l evel wo uld b e e ducated a nd/or t rained i n t he c oncepts o f G reen I T i ncluding g reen data, metrics, and processes. However, these individuals will have less or no experience in applying t hose c oncepts a nd, t herefore, wo uld b e f aithfully fo llowing t he i nstructions to carry out modeling, data defi nitions, their documentation, and sharing their use.

SFIA Skill Set and Green Roles Ā e usefulness of the SFIA levels and competencies can be used to understand the way in which peo- ple can be organized within and across organizations. SFIA enables defi nition and creation of roles that span both business and IT—therefore, it is the right framework to create levels of responsibilities for individuals working in a nd a round Green I T. Ā e levels of SFIA, a s d iscussed in t he previous section, are an indication of the strategic versus tactical type of work performed at that level. Ā is

270 ◾ Green IT Strategies and Applications

leveling also enables an understanding of which levels can be used in creation of the strategies that were discussed in Chapter 2. Figure 8.12 is providing examples of the SFIA levels at which Green IT strategies can be created effi ciently and eff ectively, and also the levels at which they can be brought into practice. Ā e focus of those strategies is also shown in Figure 8.12 and briefl y described below:

Operational/tactical i mplementation o f G reen I T. Ā e G reen I T wo rk h ere de als w ith its ◾ immediate implementation in practice, as well as work at documentation of processes. Ā is work primarily corresponds to the SFIA levels from 1 to 4. Ā e operational/tactical aspect of Green IT strategies was discussed in Chapter 2. Ā e work conducted by SFIA levels 1–4 in the Green IT initiative include documentation of green system functionality, use of CEMS, recording of carbon emissions data, practice of green policies, and a lso imparting training associated with the practices of Green IT. 1–3-year Green IT strategies—these are the strategies at departmental level, and have much ◾ more depth than the immediate tactical approaches to Green IT. Ā erefore, SFIA levels 4–6 are poised to provide immense value in the development of these Green IT strategies. People working at these SFIA levels are able to set the green goals of the entire organization, lead the formulation of green policies that are based on the capabilities or the organization.

Green Visions

& Strategies

1 to 3 year Green IT strategies; Depth—Narrowed Focus

(Department Level); SFIA Levels 4 to 6

3 to 5 year Green IT strategy formation; Consortium Leadership; Length &

Breadth; (SFIA Levels 6 and 7)

Operational—Tactical Implementation

of Green IT; Immediate Practice; SFIA Levels 1 to 4

Formulate Green

Policies

Document Green

Functionality

Set Green Goal &

Objective

Use CEMS

for Compliance

Conduct Green

Training

Ascertain Green

Capabilities Apply Green

Policies

Record Operational Emissions

Figure 8.12 Basic to strategic spectrum of green analysis work and corresponding SFIA levels.

SFIA Skill Level Roles Business Activity Green Inclusion for Transformation

1 to 4 Managers and Team Leads

Operational reporting

Training on reporting of green metrics within business operations

4 to 6 Senior Management

Operational risk management

Training on environmental risk and carbon risk within risk management

6 to 7 Strategists, Leaders

Risk Anticipation Plan for carbon risks, legislative changes, global carbon trading

Sociocultural Aspects of Green IT ◾ 271

3–5-year Green IT strategies. Ā ese are the medium to l ong-term strategies that are based ◾ on the visions of the organizational leadership. Ā ese strategies go beyond an organization and move into industry or consortium-based strategic approaches that infl uence the organi- zation and the society. Ā erefore, SFIA levels 6 –7 are most appropriate in the formulation of t hese 3 –5-year strategies. Ā ese strategies not only cover depth, but a lso breadth of t he organization (all departments, stakeholders and beyond) and direct an organization beyond the immediate tactical response and into strategic approaches.

Green Virtual Communities A v irtual c ommunity i s fo rmed t hrough so cial n etworks t hat allow people to i nteract i rrespective of geographical a nd politi- cal boundaries. Green virtual communities can be social groups that t ranscend t he o rganizational b oundaries to d iscuss a nd form o pinions o n g reen i ssues. Ā ese v irtual c ommunities c an start as a page on Facebook and may not be mediated. Ā e clas- sifi cation of people discussed in Table 10.1 can form the basis for the creation of green virtual communities.

Virtual c ommunities c an a lso b enefi t g reen en vironment, hence p eople sp end m ore t ime w ith t hese c ommunities. Ā is implies reduced travel and physical movements. Social networks such a s fo rums, b logs, Twitter, a nd F acebook f acilitate so cial groups t hat a re ba sed a round c ommon i nterests. V irtual c om- munities g o a l ong w ay i n fo rmulating c onsensus a nd o pinion on green initiatives and enable diff usion of knowledge on envi- ronmental sustainability.

Virtual c ommunities cre ate n ew k nowledge w hich i s t hen formalized a s e xplicit k nowledge t hat c an b e emb edded i n t he knowledge management systems of the organization. Green enter- prise transformation also implies a level of generalization that can be ap plied i n t he c ontext o f g reen en vironments. S ocialization and virtual communities help creation of subjective green knowl- edge which can then be codifi ed into explicit green k nowledge. Ā us, socialization t ransforms specifi c codifi ed k nowledge back into new tacit knowledge, fostering behavior change based on Ipe (2007), Nonaka (1994) and Nonaka and Konno (1998).

Virtual c ommunities a re not re stricted only to fo rmulation of s ubjective, s ocial kn owledge. S ocial n etworks c an al so p ar- ticipate in co llaborative eff ort f rom a g roup o f o rganizations rather t han a s ingle o rganization in c reating a nd ma intaining data centers. Ā is is so b ecause data centers form the backbone of Internet-based communication within as well as outside the organization. For example, the “Green Grid” is a global consor- tium (an equivalent of a social network) dedicated to advancing energy e ffi ciency i n d ata c enters a nd business c omputing envi- ronments. Ā is consortium is made up of organizations such as

Creation of new explicit pieces of knowl- edge depends on the subjective processes of socialization. This is particularly so in a virtual world where collaboration is the key to success. Therefore, environmental intel- ligence owes a lot to social alliances that enables partnering organizations to have access to and share each other’s customers, suppliers, and the general markets. Such sharing opens up the doors to collaborate, capitalize, and use even the local know- how in order to reduce the overall carbon amongst all participating businesses.

The variations in partnering businesses that are coming for a different “geopolitical” climate, with different social and cultural value systems, can be used in a positive way provided these collaborating organizations have the common desire to reduce carbon. For example, a chip manufacturer in Korea providing electronic chips for products build in China and being distributed through alliance partners in United Kingdom and Australia will have to all collaborate in order to reduce the overall carbon content of the fi nal products. Another example of a collab- orative services process could be a bank in Hong Kong wanting to expand its markets in the United States through a subsidiary. The sociocultural value systems of the markets, the lending policies and procedures, and the attitude at individual employee level will all come into play if the carbon content of the entire collaborative process has to be reduced. While collaborations result in opportunities for businesses to sell and serve far fl ung markets, they also require attention from a carbon perspective due to the differ- ences in political, legal, and sociocultural systems. Collaborations have greater obli- gations to understand and apply variations in cultural nuances of business partners to measure and mitigate carbon reduction. Best practices of one partner can easily per- colate into best practices of other partners provided the commitment to carbon reduc- tion expands across both organizations.

272 ◾ Green IT Strategies and Applications

HP, IBM, Intel, Microsoft, Rackable Systems, SprayCool, Sun Microsystems, and VMware. Ā is consortium aims to provide industry-wide recommendations on best practices, metrics, and tech- nologies that improve the overall carbon effi ciency of data centers.

In c onclusion, t his c hapter h ighlighted t he i mportance of t he social d imension of t he g reen enterprise transformation. Ā e issues related to i ndividuals, t heir subjectivity, a nd t he impact of green i nitiatives on t heir l ifestyle w as d iscussed. A su ggested c ode for Green I T e thics w as d is- cussed with an aim of providing it as a s tarting point for further discussion. Similarly, the SFIA skill set and levels were mapped to the Green IT roles, paving the path for a comprehensive green HR function within the organization.

Discussion Points Discuss t he d iff erence in the speeds of Green IT transformation of a business unit versus ◾ the society. Why is Green IT subjective? What can be done to convert the subjective, tacit knowledge of ◾ Green IT carried by people in their head to objective, explicit, green knowledge? What are the various role-based views of Green IT in an organization? How does the view ◾ of a decision maker diff er from that of an IT consultant? Describe h ow t he p ractice o f v ideoconferencing, te lecommuting, a nd m obile c ommuting ◾ assist in carbon reduction. What challenges are faced by organizations implementing these practices? Identify the commonalities between business, personal, and environmental priorities of an ◾ individual at work. Discuss the vital role played by Green HR. ◾ What is SFIA? How would you map the roles of an environment offi cer and CGO, to t he ◾ SFIA level?

Action Points Identify t he va rious newly cre ated roles t hat you need to w ithin your organization i n t he ◾ area of Green IT. Document the attitude challenges your organization will face as it moves forward. ◾ List the current Green IT user practices with an estimated percentage. ◾ Identify t he ke y Green I T roles i n your H R f unction. Cre ate a ske tch of your c areer H R ◾ setup. Map the SFIA levels to the roles defi ned in your organization. ◾ Develop an organizational version of the Green IT code of ethical conduct. ◾

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9Chapter

Green Enterprise Transformation Roadmap

Ā e issue of climate change is one that we i gnore at our own peril. Ā ere may still be disputes about exactly how much we’re contributing to the warming of the earth’s atmo- sphere and how much is naturally occurring, but what we can be scientifi cally certain of is that our continued use of fossil fuels is pushing us to a point of no return. And unless we f ree ourselves f rom a dep endence on t hese fos sil f uels a nd c hart a n ew c ourse on energy in this country, we are condemning future generations to global catastrophe.

Barack Obama

Key Points Presents a business transformation framework for green enterprises that outlines the trans- ◾ formation of an organization from where it is (potentially disjoint and carbon ineffi cient) to a holistic, carbon-effi cient green organization Further discusses the four dimensions (economic, technical, social, and process or channels) ◾ along which enterprises can be transitioned to green enterprises Outlines a G reen I nformation a nd C ommunication Technology ( ICT) f ramework m ade ◾ up of four sections: lifecycle of equipments, end-user devices, data center, and IT as enabler that can be used to understand the current and future states of an organization with respect to the environment Discusses i n de tail t he (4 + 1 ) G reen en terprise t ransformation ( GET) p hases: d iagnose, ◾ plan, enact, and review—interspersed with metrics—and their iterative nature that form the basis of a Green transformation program Outlines the eight separate work areas (or focus area) of an organization that get transformed ◾ during a GET: business model, portfolio of products/services, customers/partners, ICT sys- tems, o perational/HR, b usiness p rocesses, n etworks a nd i nfrastructure, a nd re gulatory/ SLA/outsourcing

276 ◾ Green IT Strategies and Applications

Describes the roles and responsibilities of people involved in a GET (e.g., business partners, ◾ Green IT champion, Green IT auditors) Describes in greater details the diagnose and plan process components for GET ◾ Describes the systems-level issues in GETs (e.g., CRM, ERM, Partner’s systems, HR) ◾ Suggests the areas for review and the use of metrics during and after the GET ◾

Introduction Green enterprise t ransformation (GET) i s a h olistic program u ndertaken by a n organization to radically change its structure and dynamics that would change its carbon footprint for the better. Any t ransformation (also o ccasionally re ferred to a s a t ransition) i s a r isky en deavor. Ā is is s o because transformation brings about the changes to t he structure a nd dynamics of a n organiza- tion that lead to disturbances in its normal operations and also its relationship with its customers and suppliers (Sherringham and Unhelkar, Cutter ERM 2010). Ā ese risks can be ameliorated by the use of a c arefully throughout process for such transformation that would provide the defi ni- tions for activities a nd tasks, deliverables a nd roles t hat c an be u sed to a chieve t he goals of t hat transformation. Such t ransformation i s f urther au gmented by a c ompetent su ite of metrics a nd measurements that justify and validate the eff ort to change. In case of GETs, these metrics go well beyond the commonly accepted Green IT measures, such as DCiE and PUE, and delve into the realms of attitude, supply chains, and regulatory compliance.

Ā is chapter discusses such a transformation framework together with its metrics and measure- ments. Ā e discussion here is an extension of the concepts of business transformations and corre- sponding practical applications that have been tried, tested, and reported by Unhelkar (Unhelkar, Cutter report 2009). Business transformation, as applied to G reen ICT, is undertaken a long the four dimensions of economy, process, technology, and society. Ā ese Green ICT dimensions were discussed in detail earlier in Chapter 2. Ā e GET process also has four phases of diagnosis, plan- ning, enactment, and review interspersed with metrics. Ā us, a GE T framework forms a m atrix of t he fo ur p hases a nd t he fo ur d imensions a long w hich t hese p hases g et ap plied. I n f act, t he organization i s v iewed i n a de tailed GE T t hrough its va rious i nternal verticals suc h a s its busi- ness portfolio, its networks and other IT infrastructure and, its people, and their attitudes. Ā es e are t he a reas within t he organization t hat undergo change a s a re sult of GET. Ā is chapter a lso discusses a f ramework called Green point m ethod that is an IT-specifi c Green framework encom- passing equipment lifecycle, the end-user devices, the data centers, and servers within, and IT as enabler across the organization.

Ā e Green IT metrics a nd measurements used in GET a re context sensitive in nature a nd a good transformation program will deploy them with care across the organization. Ā e se metrics start applying from the diagnoses phase and right through to the review phase.

An important distinction to make in this discussion on GET processes is that we are discuss- ing two types of frameworks:

(a ) Ā e G reen I CT f ramework a nd i ts va rious e lements t hat h elp u nderstand a nd m odel t he enterprise—in its “as is” and “to be” state. Ā is framework is similar to the popular enterprise architecture f rameworks s uch a s Z achman (1987) a nd TOGAF (2010). Ā is is a r elatively static model of the organization that shows the structure and dynamics of the organization.

( b) Ā e GE T p rocess—this i s a lso a f ramework, b ut a p rocess f ramework t hat i s u sed fo r undertaking t he tr ansformation process; t his process outlines t he activities a nd ta sks a nd

Green Enterprise Transformation Roadmap ◾ 277

deliverables a nd roles of t he organization t hat a re i nvolved i n t he t ransformation process. Ā is is a dynamic, fl owing model that describes how to engender change.

While t he a bove t wo t ypes o f f rameworks a re i nterdependent, t hey a re n ot t he s ame. E ach framework n eeds to b e t reated s eparately a nd t hen c onsidered tog ether i n p ractice. Ā e Green ICT framework on its own is an excellent mechanism to model the green enterprise; the transfor- mation framework is the basis for the roadmap to undertake transformation.

Ā ese are some areas of on enterprise level transformation that are discussed in this chapter.

Green Enterprise Transformation Figure 9.1 explains the basic concept of a GET. On the left side of this fi gure is an organization that is represented as potentially a c arbon-ineff ective, d isjointed o rganization. Ā is c ould b e a n organization that is pulled in separate directions in terms of its cost, c arbon, a nd c ustomer p riorities. O n t he r ight i s sh own a holistic, integrated organization with its priorities set right. Ā is is an organization with its costs, carbon, and customers priorities in agreement with each other. Figure 9.1 also lists, briefl y, the fundamental questions that a n organization (typically a p erson responsible for the transformation) needs to ask in undertaking GET. Ā ese are high-level questions of immense interest during transformation. However, these questions are part of the GET processes, and follow the more stra- tegic questions asked by business decision makers in formulating Green IT strategies (Chapter 2)

A GET is made up of processes and frame- works. The green enterprise framework pro- vides the “as is” and “to be” states, whereas the transformation process provides the activities, roles, and deliverables that are employed in reaching that new state. The fundamental questions in a GET are as fol- lows: What are the green drivers? Which are the dominant dimensions? How to start GET? Green KPIs? Who will lead the trans- formation CGO? What are the compliance requirements? What are the sociocultural pressures?

What are the Green Drivers? Which are the Dominant Dimensions?

How to Start Green Enterprise Transformation? Green KPIs?

Who will Lead the Transformation? (CGO) What are the Compliance Requirements? What are the Socio-Cultural Pressures?

Carbon Inefficient Unclear Green Goals

Disconnected Nonintegrated Unexamined

Green Aligned Carbon Measures and

Reporting Green Practices

Green CMM

Green Enterprise Transformation Roadmap

[To_Be]

Carbon

Co sts

Costs

Cohesive; Holistic

Di s-J

oin ted

Carbon Customers Fundamental Questions

Environmental Intelligence (Technology) Support

Customers

[As_Is]

Figure 9.1 Green enterprise transformation.

278 ◾ Green IT Strategies and Applications

and p olices (Chapter 3). Ā e environmental i ntelligence ( EI) s ystems represented at t he ba se of Figure 9.1 provide the technical support for the transformation.

Ā is GE T p rocess n eeds to b e a we ll t hought o ut p rocess t hat h elps i dentify t he b usiness goals, the current structure and maturity of the business and steps to be undertaken to become a new, cohesive, a gile, effi cient, a nd collaborative green business. A GE T is planned a nd executed along the four dimensions of an organization facilitate its transformation from where it is to its future g reen s tate. To b ring a bout t hat c hange, a b usiness c an b e m odeled a nd u nderstood i n various w ays a nd t hrough multiple d imensions a s a pa rt of its t ransformation. A n e arlier s tudy by Arunatileka and Ginige (2003) had identifi ed the factors infl uencing business transformations and t he r isks a nd a dvantages a ssociated w ith t hem. Ā ese f actors were ba sed a long t he l ines o f people, processes, a nd te chnologies. Ā ese f actors were a lso identifi ed, e xtended, a nd s eparately applied by Arunatileka, D., Ghanbary and Unhelkar (2006) in undertaking business transforma- tion and by Unhelkar (2009) for transforming mobile businesses. Unhelkar further discussed and defi ned these factors as economic, technical, process, and social in the mobile enterprise transfor- mation framework (Unhelkar 2008) as a means for undertaking mobile business transformation. Ā us, t hese four d imensions, de scribed e arlier i n Chapter 2 , form t he a reas a long w hich Green transformation can take place.

Ā e four dimensions along which an organization transforms are shown in Figure 9.2. Ā us , these dimensions provide the backdrops for creating a Green enterprise architecture that would model the two “as is” and “to be” states of an organization. Unhelkar and Ginige (Unhelkar and Ginige 2009) have extended and applied the use of enterprise architecture in modeling the cur- rent a nd f uture expected state of t he business a s well a s how to re ach t here. Ā e eff ect of these

Internal Aspects

External Aspects

Organization (Structure and Dynamics)

Economic Technical

Process Social

Carbon Reduction: 10% over Previous Years

for Next Three Years

Comply with NGERS Regulation

Ensure Ethical Electronic Waste Disposal

(Example Results From Green Enterprise

Transformations)

(E.g., Efficient Inventory Processes; Green HR; Green ICT Design)

(E.g., Effective Customer-Centric Personalization;

Regulatory Compliance)

En te

rp ri

se A

rc hi

te ct

ur e

Influence Business Partners to Go Green

Implement Green Enterprise Transformation

Roadmap

Figure 9.2 Applying the four dimensions to GET.

Green Enterprise Transformation Roadmap ◾ 279

dimensions can be broadly grouped into internal and external eff ects—as shown in Figure 9.2. Ā e internal processes such a s t he inventory a nd HR processes a re updated to g reen processes; and so a lso the external processes, such as the CR M processes to Green CR M. Transformation of the internal and external processes of the organization is coupled with the development of the Green IT portals (Chapter 6). Ā e internal and external transformation of processes an organiza- tion enable it to a chieve its stated goals (as shown, e.g., on t he right in Figure 9.2) t hat c an be measured based on Key Performance Indicators (KPIs). Ā e organizational structure and dynam- ics also change along with these internal and external processes and corresponding technologies that eventually map to various work areas (also called focus areas) of transformation. Ā es e focus areas of a business are the ones that undergo change when the transformation program is imple- mented. Ā e transformation process framework investigates scopes and incorporates these dimen- sions within its transformation phases.

While the dimensions provide the major threads for transfor- mation, it should be noted that these dimensions are not water- tight compartments that are independent of each other. Instead, each d imension i nfl uences a ll o ther d imensions—sometimes leading the way and at other times following and consolidating the c hanges. Ā e infl uence of e ach of t hese d imensions on t he GET is discussed in detail next.

Infl uence of Economic Dimension on GET Ā e c hanges a long t he e conomic d imension o f b usiness, a s i t t ransforms to g reen o rganization has to do w ith its fi nancial position, the changes to its budgets, product portfolio, and return on investment (ROI) c alculation. Ā is is the change that is based on the answer to the question of why to t ransform? Ā us, t he fi nancial t racking, monitoring of ROI a nd i mpact of GE T on t he organization’s fi nancial position is kept fi rmly in mind when the business transforms along this dimension. Ā e changes in this dimension also include changes to the business model, its invest- ment s trategies, i ts c ustomer re lationships a nd i ts pa rtner m anagement. Ā e suc cess cr iteria o f GET through this dimension are achievement of the “bottom line” as outlined in the transforma- tion objective.

Infl uence of Technical Dimension on GET Ā e technical dimension is “technologically lead” conduit for the business to t ransform. In case of GET, numerous technologies including hardware, software, databases, and networks undergo changes. Ā us, i n t his d imension, t he o rganization s trives to re duce c arbon em issions re lated to de sktop m achines a nd p ersonal de vices, d ata s ervers, I CT-based s ystems a nd t heir u sage, underlying network infrastructure, and security protocols. Ā ese technologies are eventually also used to re duce t he em issions of t he re st of t he organization. For e xample, Web 2 .0 a nd beyond (Murugesan 2 007), tog ether w ith v irtualization, c an b e u sed to re duce t he o verall p ower a nd resource consumption of the organization’s systems. Internet-based communications protocols, semantic web, mobile, and Cloud computing (Murugesan 2010) are also all off ering potential for carbon effi ciency (as discussed in Chapters 4, 6, and 11). Ā e success of the technical dimension

The economic, technical, process, and social dimensions each infl uence the GET differ- ently. For example, the economic dimension would focus on the ROI, whereas the tech- nical dimension on the server virtualization. They also affect the individual, department/ organization and collaborations differently. For example, changes to the individual pro- cesses may occur instantaneously, but those at organizational level may take more time. These variations need to be incorporated in the GET process for the organization.

280 ◾ Green IT Strategies and Applications

in GET is gauged by the reliability and ease of use of the new technology, its validation through quality assurance and testing, and this agility—that is, the ability to change with changing busi- ness circumstance. Ā e EI is the basis of ICT systems that form part of this technical dimension.

Infl uence of Process Dimension on GET Ā is process dimension of a business is the dimension dealing with “how” the business conducts its t ransactions. Ā ese a re b oth i nternal a nd e xternal processes of t he organization. GE T a long this dimension of the business entails changes to the way the business interacts with the custom- ers, the way in which it manages its employees and the way it sets up and conducts collaborations with other business partners. Ā is change in processes and associated reengineering was discussed in Chapter 5 earlier u nder Green business process management (BPM). Success of GET in t his dimension can be measured by reduction in carbon emission without sacrifi cing the quality and value of current off erings.

Infl uence of Social Dimension on GET Ā e social d imension of GE T de als w ith t he sociocultural c hanges t hat occur i n t he business as a re sult of t he t ransformation. Ā is d imension e ncourages t he t ransformation c hampion to focus g reater interest in t he people a spect of t ransformation. Ā ese people include t he clients, employees, a nd o ther “users” o f t he b usiness. C hanges to wo rk fo rmats, fo r e xample, i nclud- ing telecommuting, telemarketing, and their resultant impact on the organizational and social structures are all part of this social dimension. Ā is was discussed in detail in Chapter 8. Due consideration needs to be provided to areas of strengths and corresponding weaknesses of indi- vidual and team. For example, customer-facing individuals can infl uence or change the percep- tion of the organization in terms of its carbon footprint. Ā is dimension thus require training and positive attitude from the staff . Senior managers and leaders of the organization also have a substantial eff ect in changing the attitude of individuals within the business. Ā es e organiza- tional changes, however, cannot be suddenly brought about when people are involved. Training, motivation, and individual aspirations need to be considered by the Green HR function of the organization. Both performance and functionality need to be kept in balance during transfor- mation. Broader social issues such as eff ects of advertisements, value systems of the customers, ethical business practices, and adherence to t he industry’s code of conduct are also part of the social dimension.

Figure 9.3 shows the relationship between GET (as a transformation process framework) and the elements of an enterprise that are involved in the transformation. Ā is fi gure forms the basis for the GET described later in Figure 9.7. Ā e framework provides the enterprise architecture of the organization with particular emphasis on its green aspect. Ā e process in Figure 9.3 represents the t ransformation p hases o utlining h ow t he o rganization w ill c hange. Ā e m etrics de tail t he goals in terms of carbon reduction—and the CEMS provides the systems-level environment intel- ligence support. HR is primarily involved in training a nd up-skilling, but a lso reorganizing t he roles a nd re sponsibilities. Ā e roadmap for a GE T a lso involves t he enterprise a rchitects (Rosen et al.), who provide valuable input into the identifi cation of tactics for transforming the technolo- gies a nd p rocesses. F inally, t he re gulators a nd aud itors a re i nvolved i n m etrics a nd c ompliance aspect of the GET.

Green Enterprise Transformation Roadmap ◾ 281

Transforming the Individual, Organizational, and Collaborative Processes Ā e mix of GET process applies at d iff ering levels of the organization. Ā ese individual, organi- zational, a nd c ollaborative a spects o f b usiness p rocesses re lating to G reen I T were d iscussed i n Chapter 5. Ā e aforementioned four dimensions of GET aff ect the individual, the organization, and a lso t he c ollaborative g roup of organizations. A n u nderstanding of t he way i n which g reen changes a ff ect t hese levels of processes c an help i n i nformation of t he t ransformation program. Some of the important aspects of how the four dimensions of GET aff ect the individual, organi- zational, and collaborative aspects of business processes are summarized in Table 9.1.

Figure 9.4 builds further to focus on the crucial elements in a GET shown in Figure 9.3. Ā es e are the three major aspects of the GET. Ā ese are the roadmap itself, the supporting metrics, and the actual operation (structure and dynamics) of the organization that undergoes change.

Ā e t ransformation r oadmap fi rstly m odels t he “ as i s” si tuation. Ā is re quires a d iagnostic approach to i dentifying a nd documenting the current state of the organization. Ā is is followed by the vision, or “to be” state of the organization. Ā e roadmap outlines the activities, steps, and deliverables that are produced as a part of the transformation program. Ā e en suing p rojects, aff ected technologies, changing processes, a nd redefi nition of roles a re a ll depicted in t his road- map. Ā is process of identifying the current and future state, outlining the path to complete the gap and executing the GET requires a c ombination of internal and external skill sets. Inviting a full-on consulting group for this exercise can include costs, and risks associated with the potential lack o f k nowledge o f t he c ore o perations o f t he o rganization. A lternatively, u sing o nly i nternal resources h as t he r isks o f n ot k nowing t he e xternal l egislations, c onsortium-based a ctions, a nd available technologies and resources for GETs.

Ā e g reen m etrics fo rm a nother si gnifi cant a spect o f t he t ransform f ramework. Ā is aspect provides t he m easures a nd p roof o f c hange. Ā e g reen o peration, sh own i n Figure 9 .4, i s t he organization in its routine or operational mode a fter u ndergoing change. For a suc cessful green operational aspect, there is a need to create the roadmap and the metrics.

CoCompmplianclianceCompliance Systems (CEMS;

EI)

Technology

People

Process

Economy

Individual

Organization (Department)

Industry (Collaboration)

Process Transformation

Org anization

F ram

ewo rk

(

Ar chit

ectur e)

Human Resource

(Training)

Metrics and

Figure 9.3 A GET is a mix of the four dimensions.

282 ◾ Green IT Strategies and Applications

Green Roadmap

Green Metrics

Green Operation

Green Enterprise

Transformation Framework

Provides Path for Change

Measures and Proves

Change

Undergoes Change; then

Ongoing

Figure 9.4 GET needs roadmap and supporting metrics: transformation becomes operation.

Table 9.1 Business Transformation Considerations of the Four Dimensions at Individual, Organizational, and Collaborative Levels

Green Enterprise Transformations

Individual (User, Customer, Employee)

Organization (Small—Large— Multinational)

Collaboration (Vertical—Horizontal;

Static—Dynamic)

Economic A unit cost of product or service; carbon offsets in daily purchases

Profi t verses carbon; costs associated with changes to infrastructures and operations

Green consortiums and alliances; changes to SLAs; legal compliances across regions

Technology Mobile/personal devices; usability; storage space

Applications, networking, data servers, Intranet; environmental intelligence

SOA web services and Cloud computing; security

(EI)

Process Customer experience; individual sales

Business process management; modeling and optimization

Collaborative industrial processes across multiple, global businesses (CBPE)

Sociology Privacy; telecommuting and telework; work-life balance

Green HR; training; rewarding structure

Social networking; green consortiums

Green Enterprise Transformation Roadmap ◾ 283

A Green ICT Framework Identifi cation of t he c urrent a nd f uture states of t he organiza- tion w ith re spect to i ts g reen c apabilities i s ba sed o n a G reen ICT f ramework. Ā is is an enterprise architecture type frame- work th at d eals wi th th e “ state” o f th e o rganization r ather than t he p rocess o f “ transformation.” A s m entioned e arlier, Zachman a nd T OGAF h ave b een q uite p opular a s en terprise architecture frameworks that have a technical bend in model- ing on enterprise. Figure 9.5 shows such a framework for Green ICT. Ā is f ramework ba sed o n t he wo rk b eing do ne at en vi- rability (Phillipson 2009), covers the major areas of an enterprise, particularly from the Green IT perspective. Some areas of this framework also maps to the four dimensions of transformation described earlier on.

Ā is Green ICT framework, shown in Figure 9.5, is made up of a matrix of four vertical “pillars” and fi ve horizontal “rows.” Ā e vertical pillars depict the areas within an organization that will undergo change—and they are the equipment lifecycle, end-user computing, enter- prise, and data center and ICT as a low carbon enabler across the organization. As will be seen later, in Figure 9.7, t hese pillars evolve into work a reas, or focus a reas for transformation. Ā e horizontal rows, in this Green ICT matrix, are made up of attitude, policy, practice, technology, and metrics. Ā ese horizontal rows form the elements of change. Ā ese vertical and horizontal elements of this Green IT framework are described next.

The Green ICT Framework (4 verticals * 5 horizontals) is a matrix of what the organi- zation is made up of in terms of Green ICT (vertical pillars), and how the organization can change (horizontal bars). Equipments lifecycle, end-user devices, data centers, and the rest of the organization are the vertical pillars that comprise the organization itself. Attitude, policies, practices, and technolo- gies are the bars along which they change. Metrics are interspersed throughout.

Metrics

Technology

Practice

Policy

Attitude End User Computing

Enterprise and Data Center

Equipment Lifecycle

ICT as a Low- Carbon Enabler

Personal ComputingProcurement

Disposal

Data Center ICT Equipment

Data Center Environmentals

Networking and Communications

Software Architecture

Outsourcing and Cloud

Teleworking and Collaboration

Business Process Management

Business Applications

Carbon Emissions Management

Governance and Compliance

Departmental Computing

Printing and Consumables

ManageMeasure Monitor Mitigate

Recycle and Reuse

Desktop

Mobile

Figure 9.5 Green ICT framework. (The Envirability-RMIT Green ICT framework is reproduced with permission from Connection Research).

284 ◾ Green IT Strategies and Applications

Equipment Lifecycle Ā e equipment lifecycle de als w ith t he procurement, recycling a nd reu se, a nd e ventual d isposal of a ll equipment w ithin t he organization. Ā e primary i nterest, i n t his l ifecycle, i s of electronic equipments (such as desktops and servers) that produce emissions. However, the equipment life- cycle is interested in all equipments. All equipment in the organization undergo this cycle wherein they are procured (or manufactured), sold, used (and reused), and ultimately disposed. Ā at dis- posal o f t he e quipments i ncludes i ssues re lating re cycling o r reu se. F urthermore, t here a re a lso important i ssues relating to e thical d isposal of t he e quipment. Ā e entire e quipment l ifecycle i s of immense interest in Green ICT as the process of carbon reduction can be initiated right from the procurement phase a nd c ontinue t hrough its operation a nd e ventual d isposal. Supply chain management (SCM) and procurement management systems are typically involved in supporting the optimization of the equipment lifecycle. Ā is equipment lifecycle is part of bigger, organiza- tional lifecycle.

As was discussed in Chapter 5, the three phases to t he equipment lifecycle a re—procure- ment, operations, and disposal (P-O-D). Each of these phases can be approached in a creative manner that reduces the carbon footprint of the organization. Disposal—predates the concept of Green I T, a s many organizations have been c onscious for some t ime of t he i mportance of disposing o f I T e quipment i n a n en vironmentally so und f ashion. Ā at d isposal m ay me an it is discarded or destroyed, but it may also be sold or given to another person or organi- zation, w here i t h as a nother l ifecycle c ontained w ithin i ts l arger l ifecycle. Ā us, fo r e very reused sale or d isposal, t here is a nother purchase. Electronic waste d isposal has been studied by Godbole (2011).

Procurement Procurement is arguably the most important aspect of Green ICT in terms of making an overall impact on sustainability. At least as much energy is spent in manufacturing a PC as it consumes in its lifetime (Williams 2004). Ā erefore, focusing the design and procurement of ICT equipment makes a substantial impact on its total carbon cost of ownership (TCCO).

Ā ere a re t wo a spects to g reen p rocurement—the n ature o f t he e quipment i tself, a nd t he nature of the suppliers of that equipment. Ā e equipment an organization purchases may comply with en vironmental s tandards suc h a s E nergy S tar a nd t he E lectronic P roduct E nvironmental Assessment Tool (EPEAT)—see www.epeat.net. However, consideration should also be given to the suppliers’ own green strategies and carbon footprint. Ā is includes such things as the supplier’s environmental va lues i n t he de sign a nd m anufacture o f e quipment a nd h ow it m easures t hem, its compliance with relevant environmental laws and codes of practice, and whether the supplier reclaims and recycles old equipment from customers.

Organizations a re i ncreasingly de veloping p olicies fo r m easuring t he en vironmental p er- formance of t heir ICT suppliers ( Philipson 2 009). E nergy e ffi ciency, em issions over l ifecycle emissions, and the level of waste associated with an equipment are important purchasing fac- tors. R equests fo r p roposals ( RFPs) a nd ten der do cuments o ften e valuate su ppliers o n t heir environmental credentials and their own green policies and practices. For example, some sup- pliers who off er to not only deliver the products but also take away the packaging are preferred to others.

Green Enterprise Transformation Roadmap ◾ 285

Recycle and Reuse All organizations replace their ICT equipment periodically. Some have regular refresh cycles, some wait till they have to, and some utilize some sort of continuous update process (especially with soft- ware). Ā is is a natural aspect of the ICT function. Sometimes, through, IT department may replace equipment earlier in their lifecycle. Perhaps they have a need or a fe ar of not being able to r un the latest versions of software. Ā is can result in potential as the need for hardware may be exaggerated.

Further, e ven w hen i t i s t ime fo r a h ardware u pgrade, i t m ay n ot b e n ecessary a cross t he board. Areas of the organization that need newer hardware may be able to share their old equip- ment to other parts of the organization with less critical processes. Any equipment that complies with the base hardware standards, and that can support the software, is potentially redeployable. Redeployment may a lso be ba sed on changes to o rganizational structures, e specially when roles are not being refi lled.

Disposal of ICT Systems After extending the useful life of equipment and eventually selling or reusing it, there will always be a situation where it will need to be physically disposed. Environmentally sound disposal prac- tices a re vital a spect of Green ICT. W hile organizations have been conscious of t he importance of reducing electronic waste; it is the manufacturers and distributors that need to pay particular attention to the eventual disposal.

Ā e importance of electronic waste disposal has led to the growth of an entire industry around the disposal of ICT and other electronic equipment, often based on the extraction of precious met- als from printed circuit boards and other components. Ā is industry too has to be regulated, and there have been legislations, making the environmentally friendly disposal of e-waste mandatory. (See http://ewasteguide.info).

Globally, substantial amount of electronic waste is sent to A frica for fi nal processing.* However, lack of stringent legislations and their enforcement has resulted in many chemicals, such as lead and cadmium, polluting the air, water, and soil of these countries. “Take-back” and recycling programs by the manufacturer is a major boost in reducing the eventual pollution from electronic wastage. Ā e manufacturers of computer monitors, printers, photocopiers, laptops, and mobile phones, for example, are in the best position to know what has gone into these products and also understand the repercus- sions of its disposal in the air, water, and soil. Ā erefore, together with enlightened self-interest, legisla- tions need to place the responsibility of all electronic products’ fi nal disposal with the manufacturer rather than leaving them to pollute the environments of otherwise less-privileged economies.

End-User Computing End-user c arbon effi ciencies a re a lso very i mportant b ecause of t heir v isibility. A s t he only pa rt of ICT that exists outside of the specialized ICT function, end-user computing has the greatest eff ect on the wider green attitudes and behavior of the organization’s workforce. By its very nature, this area of end-user computing aff ects the nontechnical users of the organization. Ā is is where Green IT policies

* http://www.pbs.org/frontlineworld/stories/ghana804/video/video_index.html—presents a 20-minute video illus- trating the plight of communities who are at the epicenter of the world’s e-waste.

286 ◾ Green IT Strategies and Applications

and practices a re most apparent to m ost people inside a nd outside t he organization. Ā ere fore, the cooperation of non-IT employees is a lso very important in this end-user computing area. Once the end-users are convinced of Green IT, the rest of the Green IT strategy becomes much easier to imple- ment, as the attitude and behavior of a large group of people is simultaneously aff ected.

End-user computing deals with IT Effi ciencies that the end-user has most control over. Ā es e end-user g adgets were d iscussed in Chapter 4, a nd a re d ivided into t hree main a reas—personal (desktop c omputing, m obile c omputing), depa rtmental c omputing, a nd p rinting. F or e ach o f these there are a range of diff erent technologies and techniques that can reduce the organization’s power consumption and carbon footprint.

Desktop computing—Important practices include turning PCs off a nd va rious PC power ◾ management techniques, and important technologies include thin client computing. Mobile computing (Laptops, PDAs)—May have similar power management issues to desktop ◾ computers. An array of mobile devices, such as notebook computers, smart phones, and PDAs (personal digital assistants), may not in themselves use a large amount of power, but there are still a number of Green ICT considerations that need to be taken into account with their usage. Departmental computing—Ā is is the computing that is localized to a department and not ◾ under direct control of the IT department of the organization. Some of this IT activity can be substantial leading to a si gnifi cant and, often, unmeasured ◾ carbon c ontribution. F or e xample, s ervers, s torage de vices, a nd p eripherals t hat a re n ot housed in data centers can amount to a si gnifi cant number and very ineffi cient. Ā ere fore, departmental computing should be a major area for Green ICT. Printing a nd c onsumables—Consume s ignifi cant en ergy pa rticularly d ue to t heir l arge ◾ numbers and inbuilt ineffi ciencies. For example, printers and copiers tend to be left on even when not i n u se. Other a reas of i neffi ciency include printing paper a nd printing ink. Ā e toner, or ink, is particularly a major concern in its production, use, and disposal. Printers are typically bulky, they are built from materials that are diffi cult to recycle or even toxic, and they re quire more m aintenance t han most other de vices p erhaps b ecause of t heir moving parts (Philipson 2010).

Ā e relative importance of end-user IT effi ciencies varies largely in relation to the size of the organization. I n sm aller o rganizations t heir i mportance a rises f rom t he f act t hat t he en d-user devices represent the main areas of Green IT. Whereas, in larger organizations, the sheer numbers of end-users mean that effi ciencies in this area can make an enormous diff erence to t he overall carbon footprint of the organization.

Enterprise and Data Center Enterprise and data center represent those aspects of an organization that are controlled directly by the IT department. Ā is is true even with the small IT departments that exist within user’s depart- ments of organizations that have their own servers occasionally lying under the desk of the manager. In organizations large enough to h ave a d ata center, the eff ective management of the equipment within it and its environmental can be one of the most important aspects of Green IT.

Data center ICT equipment ◾ Data center environmentals ◾

Green Enterprise Transformation Roadmap ◾ 287

Networking and communications ◾ Outsourcing and Cloud ◾ Software architecture ◾

Data Center ICT Equipment Ā e t wo m ost i mportant t ypes o f ICT e quipment i n t he d ata c enter i nclude s ervers (including mainframes) a nd s torage de vices t hat were d iscussed i n de tail i n Chapter 4. S ervers a re u sually the biggest c onsumers of p ower, a nd t hat p ower c onsumption c ontinues to r ise a s more p ower- ful p rocessors a re u sed i nside t hem, a nd a s t he n umber o f s ervers p roliferates ( Koomey 2 007). Ā e average power consumption of a r ack of servers has increased fi ve-fold over the last 10 years (Gantz 2009) when cooling requirements are taken into account. Storage usage is also increasing exponentially—and as prices drop storage devices are often used very ineffi ciently.

Server a nd s torage v irtualization h as b ecome one o f t he ke y te chnologies i n d ata c enters i n recent years. It is often touted as a technology for reducing power consumption, because it reduces the overall number of devices, but in practice most data centers’ power consumption continues to rise because the devices are becoming more powerful and use more electricity.

Data Center Environmentals Ā e en vironmental i ssues a ssociated w ith t he d ata c anter sp ecifi cally d iscussed e arlier o n (Chapter 4). Ā e data center’s supporting infrastructure can easily consume more power than the ICT equipment within it. Ā is supporting infrastructure is made up of the following three main aspects:

Ā e p ower su pply—Data c enters u sually h ave de dicated p ower su pplies, a nd v ery o ften ◾ more than one. Ā ei r effi ciency varies enormously. Data centers can also generate their own power, and backup power supplies are common for business continuity. Cooling and lighting—Modern ICT equipment typically demands signifi cant a mounts of ◾ cooling, ei ther a ir c ooling o r w ater c ooling. Ā ere a re m any de sign a nd i mplementation issues that aff ect power consumption. Lighting is also a factor. Ā e building that houses the data center—Ā is may be a dedicated stand-alone facility, or it ◾ may be purpose-built within a larger facility, or it may be retrofi tted into existing premises. Whatever the case, there are a number of aspects of the built environment that will have an eff ect on power consumption, such as insulation.

Networking and Communications Communications—the “C” in ICT—plays a signifi cant role in modern ICT. Ā ere are a number of green issues specifi cally to do with communications. Ā ese include the following:

Local area networking—Many organizations’ LANs and data center networks consist largely ◾ of a n u ntidy c ollection of c ables t hat c onsume l arge a mounts of p ower a nd w hich a dd to cooling requirements. More effi cient cabling design means lower power consumption.

288 ◾ Green IT Strategies and Applications

Wide area networking—Many organizations use leased data lines or VPNs (virtual private ◾ networks) o ver t he I nternet. W hile t hey do n ot h ave d irect c ontrol o ver t hese n etworks, their ineffi cient usage adds to o verall power consumption and increases the overall carbon footprint. Wireless c ommunication—Wireless w ill ne ver w holly r eplace c abling, but i t i s b ecoming ◾ more w idely u sed a nd it does h ave a m ajor role to p lay. But w ireless c ommunications c an be very ineffi cient, especially when transmitters and receivers are left on when they are not being used.

Outsourcing and Cloud Computing Outsourcing has been one of the big issues in ICT since the industry began. It has been discussed by Unhelkar as a business strategy (Unhelkar, Cutter, Smart sourcing).

In ICT, outsourcing discussions have traditionally centered around the issues of cost and capa- bility. Ā e outsourcing vendor has economics of scale and availability of skills.

Ā e rise of sustainability as an issue has added a new dimension to the ICT outsourcing debate (Philipson, 2010). Many facilities management companies a re now highlighting their green cre- dentials a nd building energy-effi cient d ata c enters t hat t hey s ay w ill en able u sers to l ower t heir overall carbon footprint. Ā at may well be the case, but the traditional make versus buy arguments still hold. One key issue with outsourcing, a nd one t hat is overlooked surprisingly often, is t hat of measurement. It is impossible to tell if outsourcing is a good deal or not fi nancially if you don’t know the real cost of what is being outsourced. Similarly, you can’t tell if an outsourcer is going to reduce your carbon footprint if you don’t know what it is to start with.

A recent complication to the outsourcing debate is the emergence of Cloud computing, where processing takes place in the “Cloud”—somewhere on the Internet far from the user. Cloud com- puting is not necessarily outsourced, but it very often is—making the debate even more complex. Ā is has been discussed earlier in Chapter 6, and later, an as emerging technology in Chapter 11.

Software Architecture Computer s ystems c onsist of software r unning on h ardware. I ndeed, it i s often a rgued t hat t he software is the system, and that the hardware is simply an enabling technology. Most discussion about Green ICT refers to hardware, but software is also a factor.

Ā e software architecture often determines the hardware architecture, which in turn may have a si gnifi cant eff ect on t he a mount o r t ype o f h ardware u sed—with a ll t he c onsequences o f t he energy c onsumption o f t hose s ystems. Ā e w ay so ftware i s de veloped a nd u sed i s si gnifi cant— code can be effi cient, or it c an be “ bloatware.” Systems c an be de veloped f rom scratch, adapted or borrowed (with “objects”) from other software, or purchased off -the-shelf. Each approach has consequences for energy consumption.

IT for Enterprise A vital aspect of Green IT is its use in reducing the carbon footprint—beyond IT itself—to the whole organization. I t i s g enerally a greed t hat I T em issions a re m ainly t hrough t he u sage o f e lectricity

Green Enterprise Transformation Roadmap ◾ 289

which in turn comes from carbon emitting power stations. Ā es e fi gures tend to i ndicate that the real potential benefi ts of Green IT are in using IT as an enabling technology to help the organiza- tion, and the wider community, reduce its carbon emissions. Ā is use of IT in the enterprise includes updating the governance and compliance sections of the organization (Chapter 3), introducing tele- working and use of collaborative tools (Chapter 4 a nd 8), BPM (Chapter 5), business applications, and carbon emissions management software (CEMS) (Chapter7). Ā is is the discussion on EI.

Governance and Compliance Many organizations nowadays are conscious of the desirability of being a good corporate citizen. Increasingly, that means acting in a green and sustainable manner. Publicity about climate change and related issues has greatly raised the profi le of sustainability, and virtually all organizations are attempting to boost their green credentials. In some cases they do it because they are forced to, in some cases it is a case of “greenwash” or paying only lip service to environmental matters. But in many cases the organization’s management sincerely wants to do the right thing.

“Corporate governance” is a term that has come into common use in the last decade to describe the processes by which organizations ensure that they are properly managed, not only in terms of meeting their regulatory obligations, but to ensure that they do the right things by all their “stake- holders.” Ā is overused term t ypically includes management, shareholders, and staff , and is often extended to include business partners and others in the organization’s extended supply chain.

Ā is extension is based on a growing awareness that, when it comes to the environment, every- body is a stakeholder, and that good corporate governance also includes good environmental man- agement. Green ICT is in many ways a management and governance issue.

Teleworking and Collaboration As a lso discussed in Chapter 8, the term “teleworking” covers a r ange of technologies a nd prac- tices that have to do with working at a distance or working remotely (see www.telework.gov). Ā e carbon reduction benefi ts of teleworking are mostly associated with reduction in personal travel obviating the need to drive a car or catch a plane reduces the carbon footprint of that activity by the amount of fuel generated by that travel. Teleworking also opens up opportunity to collaborate more than in the physical world.

Collaboration tools and techniques enhance the capability of a group of people to work together (Zara 2 004). Ā ere a re a g reat m any w ays to do t his, but a ll of t hem entail b eing a ble to sh are documents, processes, and information. Ā is showing makes the business processes more effi cient and reduces the need for physical contact. Ā us, collaboration and teleworking go together.

Business Process Management Business process management is the process of improving the ways an organization or an individual does things—making them more effi cient, with fewer steps or greater eff ect. Green BPM was also discussed i n de tail i n Chapter 5. Formally, t he m anagement d iscipline c alled BPM i dentifi es fi ve phases relating to a p rocess: de sign, modeling, e xecution, monitoring, a nd optimization. A G reen BPM refers to the managing and improving of all business processes from their carbon perspective.

290 ◾ Green IT Strategies and Applications

Environmental intelligence has a major role to play in Green BPM. EI provides both the tools for modeling the processes and many of the enabling technologies for their execution. Ā is can be done both with business processes in the broadest sense, and through and with the use of specifi c business applications.

Business Applications ICT-based business applications include fi nancial management systems (FMS), enterprise resource planning (ERP), supply chain management (SCM), and customer relationship management (CRM). Many organizations also run customized applications that are specifi c to t heir industry that would provide them with competitive advantage.

ICT is very important in each of these applications, which essentially support BPM. Green BPM seeks greater effi ciencies in every phase of every process. For example, the fewer times and the shorter distance physical items have to be moved, the better. Ā e fewer transactions need to b e made, the better. Even small improvements can have a si gnifi cant eff ect on c arbon reduction, because of t he scale of the operation and because of fl ow-on eff ects further up (or down) the supply chain.

Green ICT has a very important role in improving the effi ciency of many industrial and com- mercial processes specifi c to individual industries, paving the path for their leanness. For example, the manufacturing process, electricity distribution, and engineering and construction, each have a unique set of processes which can be made more effi cient through the application of EI. Effi ciency translates to lean, which means green.

Carbon Emissions Management Carbon emissions management is an emerging discipline that focuses on the management—and ultimately t he mitigation—of a n organization’s ca rbon emissions. Ā is i ncludes t he u se of ICT systems specifi cally designed to reduce the carbon footprint, rather than doing so as a by product of g reater e ffi ciency. A ke y I CT ap plication i s C EMS, w hich p rovide a c ompliant a nd c onsis- tent format for presenting greenhouse gas emission data to executive management and regulators (Philipson, et al. 2009).

As t he c arbon em issions re gulatory f ramework c ontinues to e volve, C EMS i s b ecoming a n increasingly popular tool to m anage the carbon emissions lifecycle. Ā e market will continue to mature and will most likely consolidate around major technology vendors and a smaller group of niche o r v ertical i ndustry p layers, a nd C EMS p roducts w ill b ecome a f unctional c omponent within many organizations’ application portfolio.

Ā e h orizontal l ayers o f t he G reen I CT f ramework de als with at titude, p olicy, p ractice, te chnology, a nd m etrics. Ā es e are discussed next.

Attitude Attitude is intangible and forms a major part of the subjectivity in the social dimension of Green IT. As discussed in the previous chapter on sociocultural aspects of Green IT, much of the success of GETs depend on the attitude of the people within the organization. However, as also discussed

Envirability has researched the CEMS mar- ket and has written a major report on the background to CEMS and how to select and implement a product. See www.cemsus.com

Green Enterprise Transformation Roadmap ◾ 291

there, the sociocultural aspect of Green IT is also very subjective. Attitude can be understood as a desire and a commitment to change by the individual that is based on honest belief in the ensuing results. Having a positive attitude toward Green IT is at the heart of the transformation as it is depend on individuals. A nd, as is often the case in business, those attitudes are most eff ective if they come from the top. “Management buy-in” is an essential part of any Green IT program.

Examples of attitude: what diff erence will one monitor (or light bulb, or megabyte) make to the o verall fo otprint? R ecycling a nd reu se a re i mportant, a nd l onger u se o f wo rking e lectronic equipment will reduce electronic wastage. Or, I don’t to call that physical meeting—it can be done via video conferencing.

Policy Ā ere are many aspects to Green IT policies that were discussed in Chapter 3. Policies help set the direction for the organization and provided basis for action. A coherent and holistic enterprise-wide IT energy reduction policy will aff ect a ll four vertical c olumns i n Figure 9.5. C ommunications (discussed in Chapter 8) of policies is also vital and needs to take the HRs in confi dence.

Examples of policies aff ecting the entire organization include the organization shall only pro- vide goods and services from certifi ed, green vendors; users will be encouraged to not take sepa- rate, individual backups of their databases. Ā ese policies were described in Chapter 3 in detail.

Practice Practice rep resented b y t he t hird ro w i n Figure 9 .5 i s t he a ctual a ction ba sed o n de cisions enshrined in policies. Ā ese practices are the things that are “done’—carried out in the organiza- tion. Practices implement policies. Ā ey are the techniques, the behavior that is expressed by the individuals and organizations. An interesting aside to practice is that they, like processes, involve alteration of habits and change of mindsets (attitude) rather than procurement of new equipment. Ā is involves training.

Examples of practices include switching off computers when not in use; implementing virtu- alization of all services; replacing existing high carbon emitting equipments with new, green ones; and ethically disposing of electronic waste. Ā ese practices can be indexed to the KPIs discussed in Chapter 2.

Technology Technology, represented by the fourth row in Figure 9.5, is the hardware, databases, and network and systems aspect of Green IT and has been discussed in detail in Chapter 4 and Chapter 6. Ā e Green I T te chniques—of u sing t hin c lients, r itualizing d ata s ervers, a nd u sing d uplex p rinters are a ll e xamples of te chnology-based c hanges i n t he organization t hat lead it toward Green I T. Procurement of new, low carbon emitting equipment is an investment that needs to be considered in the long term in the context of the TCCO metrics.

Perhaps si mply t hinking of a l ow c arbon em itting e quipment a s a n ew procurement m ay not b e t he r ight approach. Ā e c osts a ssociated d irectly w ith a n ew e quipment a lso needs to consider the waste inherent in disposing of the old equipment—especially if that equipment is

292 ◾ Green IT Strategies and Applications

still operational. Ā us, the ideal way to approach equipment replacement is to balance out the change and incorporate the practice of Green IT as part of the normal equipment replacement cycle.

Metrics Green I T m etrics de al w ith m easurement o f c arbon em issions o f t he o rganization i n its “as i s” state. Metrics also determine if the “to be” state has been achieved or not. Ā ese Green IT metrics have been discussed in detail in Chapters 3 and also in Chapter 6.

In a ddition to t he four a spects of Green I T metrics shown i n t he Green ICT f ramework i n Figure 9.5, Chapter 6 also discussed the monetize aspect of these metrics.

Choosing t he r ight to ols to m easure, m onitor, a nd p otentially m itigate p ower c onsumption and carbon emissions, both inside a nd outside t he IT depa rtment, is critical in t he GET. Good set of green measures ensure that Green IT projects receive maximum business commitment and are proven to be successful over time. Only with adequate measurement can progress be proved. Hence, metrics need to be supported by CEMS and “smart metering.”

Example of metrics i nclude c arbon p er d ay/month/year p er de sktop/laptop; c arbon-bit r atio PUE-DCiE; attitude level (Subjective).

Having discussed the Green ICT framework that can model the organization’s “as is” and “to be” states, the subsequent discussion is on incorporating that model in an actual transformation process for a green enterprise.

The Green Transformation Process As m entioned e arlier, t ransforming to a G reen en terprise i s actually a business transformation program. Project from vari- ous dimensions in the business, infrastructure and systems area make u p t he t ransforming p rogram. Figure 9.6 sh ows a ba sic Green transformation process. Ā e four major phases of trans- formation are shown here as diagnose, plan, enact, and review. Ā is fi gure a lso sh ows t hat w hile t hese fo ur p hases ap pear sequential, in reality they are iterative; with the number of itera- tions required for a successful transformation to be decided by the chief green offi cer (CGO) together with the person respon- sible for GET.

Ā e purpose of t his ba sic Green t ransformation f ramework shown in Figure 9.6 is to (a) identify the current status of the organization and enlist the goals of GET—these goals will be identifi ed, updated, and fi nalized through the diagnosis work; (b) add justifi cation for the project using ROI calculations within a business case; (c) provide target met- rics (i.e., values for KPIs) for the organization’s “to-be” state; (d) organize the actual GET program; (e) provide the basis for the pathway/road map or project plan for transformation; (f ) undertake (or enact) the actual transformation; (g) review whether the KPIs have been achieved or not; (h) pro- mote t he suc cess a long t he i ndividual, depa rtmental, a nd organizational level. Eventually, suc h Green transformation will open up opportunities for the organization to also help and support its collaborating partners.

The basic Green transformation process is made up of 4 + 1 phases: diagnose, plan, enact, and review—interspersed with met- rics and measurement.

The eight focus areas of any business transformation, applied here to GET are as follows: business model, product and service portfolio, customers and partners, ICT systems, applications and databases, operational, organizational, business pro- cesses, networks and infrastructure, and regulatory.

Types and size or the organization affect the GET process.

Green Enterprise Transformation Roadmap ◾ 293

Figure 9.7 expands in greater detail the GET framework outlined in Figure 9.6. Ā is frame- work is interspersed with transformation activities such as detailed planning, project accounting, risk management, and ongoing measurements. Ā ese phases are a logical approach to transform- ing any business and, as such, are refl ected in various other approaches to business management as well. For example, t he L ean Six Sigma approach from business a ngle*,†, or even IT standards used in business (such as ITIL and CoBIT) can be customized to fi t the GET process framework outlined in Figure 9.7. Ā is is so because a GET is based on a holistic change to the organization rather than incremental improvements.

Figure 9.7 also provides a reminder that the GET will vary depending on the size and type of business.

Ā e si zes o f b usiness a re l isted a s sm all, m edium, l arge, g lobal, a nd v irtual. F or e xample, a small business’ entire focus will be greening of its end-user computing, whereas that of a l arge organization of the data servers. Similarly, the types of business have been listed as product service and infrastructure. Ā e organizational focus a reas a re identifi ed a nd t ransformed d iff erently for a predominantly product manufacturer as compared with a service provider. Large infrastructure organizations, like Telecom or power stations vary signifi cantly in their focus areas.

Organizational Focus Areas for GET Figure 9.7 also shows the eight most common focus (or work) areas of the business. Ā e se focus areas provide the structure of the business that will undergo change and to which the GET process and their emphasis can be applied. Ā ese focus areas can change depending on the type, size, and nature of business (as described earlier and also outlined in Chapter 2). Ā e goal of the business

* Lean Six Sigma, Australia: www.synergymcg.com † Ā e Lean Ā inking Company: www.Ā ink Lean.com.au

Diagnose Plan Enact

P h a s

e s

( I t e

r a t i

o n s )

Review

To Be Metrics

As i s

Met rics

Stated

Goa ls

Green IT—Design and Implementation An Iterative Process

Diagnose

Enactment

Planning Review

Achie ved

Goa ls

Individual Department Org aniz

atio n

Figure 9.6 The basic Green transformation process.

294 ◾ Green IT Strategies and Applications

undergoing GET and the complexity of the organization a lso a ff ect these focus areas. However, the focus areas listed in Figure 9.7 are appropriate for understanding most businesses in terms of their GET. In practice, these focus areas become the “work areas” to be worked upon during the GET. Ā ese focus areas, or work areas, for GET, as shown in Figure 9.7 are described as follows:

Business Model—which de als w ith t he w ay a b usiness i s organized. GE T i nfl uences and, ◾ usually, changes the business model to refl ect the green priorities of the organization. Smaller organizations have a simple, subjective business model that can change easily. Product a nd S ervice Portfolio—provides a n overall su mmary of t he off erings of t he busi- ◾ ness. GE T re sults i n t he o rganization h aving n ew g reen p roducts a nd, a lso, d ropping o f carbon-intensive products and corresponding services. Infrastructure-intensive organization may have buildings and facilities instead of products or services. Customers a nd P artners—describes t he e xternal pa rties i nteracting w ith t he b usi- ◾ ness. Ā e c hange h ere, d ue to GE T, i s a s de scribed i n t he b usiness e cosystem d river i n Chapter 2. GET will change the relationships through renegotiated contracts. ICT Systems, Applications, and Databases—includes the technological changes in the soft- ◾ ware systems and technologies of the business (as discussed in Chapters 4, 6, and 7). Ā es e are that data warehouse and business intelligence applications and packages, such as CRM, SCM and HR, SOA. Operational, Organizational—handles the internal parties such as employees and manage- ◾ ment, and their reporting hierarchies, within the business. (Ā is focus area forms the crux of the discussion in Chapter 8.)

Green Business Transformation Process [BTC, BTB]

Business Undergoing Green Transformation Focus Areas

(Corporate Board + Green Transformation Board + IT Governances)

Diagnose Plan Enact

Measure

Review

Business M odel

Product/Service Portfolio

IC T

System s

(A pplications and D

atabases)

O perational O

rganization (H

R, Em ployees)

Business Processes

C ustom

er/Partners

N etw

orks and Infrastructure

Regulatory/SLA /O

utsourcing (C

orporate, G overnm

ent, International)

Measure

Business Size

Small Medium

Large Global Virtual

Business Type

Product Service Infra-

Structure

Stated

Goa ls Achie

ved

Goa ls

Figure 9.7 The GET process maps to the eight focus areas.

Green Enterprise Transformation Roadmap ◾ 295

Business Processes—model and describe the way in which a ll activities of the business are ◾ sequenced and carried out (as discussed in Chapter 5). Ā e entire domain of BPM together with SOA applies here. Networks and Infrastructure—focus on the underlying communications technologies used ◾ by the business (as discussed in Chapters 4 a nd 6). Ā ese are both wired and wireless net- works, including short and long distance. Regulatory—deals with legal, accounting, and fi nancial aspects of the business (as discussed ◾ in Chapter 2, and later in Chapter 10).

A work area may map to one or more departments of the business. Similarly, each work area may have one or more stakeholders with specifi c o bjectives. I t i s i mportant to i dentify t hese stakeholders corresponding to each work area as early in the transformation process as pos- sible. Ā ese s takeholders n eed to b e i nvolved a nd m anaged r ight t hrough t he t ransformation process. Handling their concerns as well as meeting their expectations is vital for the success of the transformation process. Ā e work a reas a nd corresponding stakeholders a re summarized in Table 9.2.

Ā e ro les i n t his t able a lso m ap to t he t ransformation a nd o perational ro les i n GE T. Ā es e GET roles are described in detail in a later section in this chapter.

Confi guring a GET Road Map A GET roadmap is a h igh-level program plan t hat outlines t he major steps in a n organization’s transformation. Following are the major considerations in the confi guration of such a road map:

Type and size of organization ◾ Nomination of roles and responsibilities ◾ Formation of the Green enterprise transformation board (GETB) ◾ Diagnose ◾ Plan—Formation o f wo rk a reas; Ou tlining t he GE T de liverables, t heir fo rmat a nd t heir ◾ timings Enact—Format, timing and frequency of reporting ◾ Review ◾ Measure ◾

GET Program: Roles and Deliverables Identifi cation of the work areas and having a process framework for GET, such as one described above, provides basis for the organization to undertake GET program. Formation of a GETB is an early indication that the business is ready to move forward with its change. Ā e GTB is entrusted with t he t ask o f su ccessfully st eering t he o rganization t o a G reen o rganization a s i t u ndergoes changes. Ā e c hief e xecutive offi cer (CEO) nominates t his b oard, w hich i s m ade up of e xperts, leaders, and personnel from marketing, technology/infrastructure, fi nance/legal, CRM, commu- nications, a nd HR/union. Ā e CEO, together with t he members of t he GT B, selects t he Green enterprise transformation champion (GTC). A GTB is drawn from within the organization with occasional representation from outside as well—such as a consulting organization specializing in

296 ◾ Green IT Strategies and Applications

GET. Ā e GTB works together with the various other governance boards that run the organiza- tion. Ā ese various governance setups participate in, and are aff ected by, the GET. Ā e diagnose, plan, en act, re view, a nd measurement phases of t ransformation a re d irected by t he GE TB. Ā e GTC (a role t hat c an a lso b e played by t he C GO, but only w hen she i s fo cusing on t he Green transformation rather than the ongoing green operation) reports to this board.

Setting Up a Business Transformation Offi ce (BTO) For large scale GET typically in a large, multinational organization, setting up of a separate BTO is highly recommended. Ā e p hysical a ctivity o f s etting u p t he BT O c an b e u ndertaken either before the commencement of the project or at the state of the diagnosis phase. However, usually, it

Table 9.2 A List of Work Area of the Business, Corresponding Key Stakeholders and Their Chief Interest in the GET

Transformation Work Areas Stakeholder Chief Interest Chief Concerns

Business model CEO, CGO, Corporate Board

Compliance, stability, growth, Control

Risks due to green changes

Product and service portfolio

Senior business management

Alignment of carbon and business goals

Value generation

Productivity; loss; confl icting offerings

Customers and partners

Sales; Services director Customers and Partners

Green experience; green profi le

Loss of quality of service

ICT Systems, applications and databases

IT management; Green IT governance

Server virtualization; system integration, SOA architecture

CEMS

Incompatible systems, performance, infl exible systems

Operational, organizational

Green HR; staff Lean/fl exible structure; telework

Changes to reporting structures; rewarding; training

Business processes Business management (department heads)

Green BPM; Green BPR; collaboration

Changes to business processes; potential lack of systems support

Networks and infrastructure

Infrastructure management

SLAs, capacity for growth/change

Infrastructure upgrades, Costs; new network technologies

Regulatory CFO; lawyers; environment offi cers

Compliance, risk management

Lack of clarity; breaches

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is preferred to set up the BTO, before the project starts. Ā e BTO houses the transformation board and also provides the administrative support to the project. Ā e BTO is made responsible for the operational matters related to t he project, c oordination a mongst va rious work a reas, document- ing the contractual requirements of the project and promoting the project within and outside the organization.

Forming Transformation Work Areas Formation of the work areas for GET is based on the current state of the organization. Ā e se work areas for transformation were depicted in Figure 9.7. Ā e size and type of the organization aff ects the formation of t hese work a reas. Ā erefore, not a ll work a reas shown in Figure 9.7 need to b e handled in every transformation. Ā is is so because, for some type and size of the organization, some work areas may not be relevant. For example, in a sm all organization, with no data center, the networks and infrastructure work area may not exist. Ā e current technical and process matu- rity of the organization also infl uences the work areas. In some cases, one work area may be more important t han other. For e xample, for a l arge Telecom company, networks a nd infrastructures will b e f ar m ore i mportant t han, s ay, t he product p ortfolio. Formation of t ransformation work areas includes nomination of a wo rk a rea leader who has expertise in t hat pa rticular a rea of t he business or technologies.

Green IT Project Roles Figure 9.8 shows the primary roles in a Green IT transformation project. Ā ese include the busi- ness partners, business architect, technical architect, Green IT champion, end-user representative,

Green IT Champion

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Figure 9.8 Roles in a Green IT project.

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IT managers, IT governance, business manager, data center director, Green IT auditors, and cor- porate governance. Some of these roles had appeared in the Trivedi and Unhelkar (2010) survey, and were outlined in Figure 8.2 in the previous chapter.

A GTC takes leadership responsibility for the project.

Green Enterprise Transformation Champion (GTC) Ā e role of a GTC is vital in undertaking GET. Ā is has to be a dedicated role with suffi cient deci- sion making capacity. Ā e GTC role needs to b e aware of both technology and business aspects of the organization.

Ā e responsibility of GTC will include the following:

Formalizing the leadership and constitution of the GETB ◾ Identifying the current Green maturity state of the organization based on Green metrics ◾ Benchmarking best practice goals for the organization that describe its “to be” state ◾ Manage budgets ◾ Organizing t he cre ation o f a p roject m anagement p lan fo r GE T. Ā is p lan w ill c ontain ◾ detailed resource and time management tasks together with people and deliverables Creation of an approach to risk management for GET that is based on priorities of the orga- ◾ nization, its lead dimension, and so on Stakeholder management including expectation management of the board, related external ◾ parties, and the society Report progress on the GET to the corporate board ◾ Monitor KPIs ◾ Coordination and management of GET resources, as well as the organizational resources ◾ undergoing transformation. Ā is will be done in conjunction with Green HR Coordinate i mplementation of c hanges t hrough c hange m anagement processes a cross t he ◾ various focus areas of the business Balance t he “ driving d imension” of GET w ith other d imensions—this requires t he ba l- ◾ ancing o f e conomic, so cial, te chnical a nd p rocess, d imensions a s t he t ransformation proceeds Track progress and of the GET project ◾ Astute use of the tools, technologies, and processes of GET ◾

Business Architect and Variations Ā e GT C w ill ap point a b usiness a rchitect to i nvestigate a nd h andle t he b usiness m odel wo rk area of the GET. Such business architect should have a clear vision of the business “as is” and its goals and aspirations. Ā e Business architect is aware of the underpinning technologies that can serve the business but is not a technical expert. A business architect takes a long-term view of the organization (3–5 years and above) when she participates in the GET project. A business architect would create business architectural map that will provide the overall view of the business model and associated work areas. Ā is business architectural map can be a part of the overall enterprise architecture t hat i s a lso u sed b y t he a rchitect i n cre ating o perational s trategies fo r t he b usiness

Green Enterprise Transformation Roadmap ◾ 299

after transformation. Ā is map ensures that the technologies are aligned with business plans and the changes are tracked and monitored.

Technical Architect and Variations Ā e GTC a lso appoints a te chnical a rchitect. For sm aller si zed organizations u ndergoing sm all transformation, this role may be played by the GTC. However, it is advisable to have the two roles separate to ensure that transformation, technology, and business are given their own agenda and responsibilities. Ā e technical architect is responsible for the following:

Creation o f a te chnical a rchitecture m ap to u nderstand w here t he o rganization c urrently ◾ is—including networks, databases, security, and contents. Ā is map, again as a pa rt of the overall enterprise a rchitecture, provides excellent ba sis for which technologies a nd systems have to change as part of the GET. Collection and use of a toolbox of various tools that are used in technical implementations ◾ during GET. Creation of a comprehensive repository of software applications currently used by the orga- ◾ nization—with a view to changing and integrating them. Ā is repository includes CEMS. Dividing and categorizing these repositories of applications into diff erent business/applica- ◾ tion domains that will enable ease of modifi cation with carbon data. Ensuring that the applications that support specifi c decision making are part of the overall ◾ EI suite, and are available to decision makers. Creation of a new technical architecture that would refl ect the goals of the business trans- ◾ formation itself. Ā is would include incorporation of SOA and WS i n integrating existing software packages with CEMS. Ongoing alignment of technologies with business plans during and after GET. ◾ Coordinating the development of a Green IT portal. ◾ Tracking a nd m onitoring te chnical c hanges re sulting f rom ap plications n otifi cations ◾ upgrades and integrations. Managing quality initiatives during GET. ◾ Develop an understanding of the future trends in technology that the organization will have ◾ to deal with after the GET. Produce a suitable technical strategy including a technical roadmap for transformation. ◾

Business Partners Business partners play a cr ucial role in GETs. A s the business interests of collaborating partners coincide, there is added impetus to provide wide array of support to the partners. Ā is support can take shape in the form of knowledge and experience sharing, providing relevant tool support and help with understanding dynamic customer preferences as the business transforms.

Participate ◾ Collaborate ◾ Interface ◾ Integrate ◾

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Green IT Auditors Auditors carry out checks and balances throughout and after the transformation. Auditors mea- sure and audit to ensure that the transformation has created value for the business as stated by its goals. Ā ese audits can use the reporting features of CEMS, if implemented and that the transfor- mation has not adversely aff ected any of the reporting and regulatory requirements of the business. Furthermore, auditors are involved in the review process, ensuring that the calculations leading up to the ROI are accurate and refl ect the reality resulting from transformation.

End-Users End-users are the employees, managers, and customers of the organization who are aff ected by the GET. Ā ey are represented in the GET.

Ā e end-user representative is for all end-users, and their groups (manager, customer, senior).

Represents user groups ◾ May be more than one ◾ Highlights device usage ◾ Highlights attitude for roles ◾ Helps in Green HR ◾ Understands CEMS and smart meters ◾

IT Managers IT management—deals with the operational and management aspect of IT within the organiza- tion. Ā ey are responsible for the IT systems, their operations on the corresponding hardware and approaches to using IT for overall carbon reduction. Chapter 8 outlined the Skills Framework for Information Age (SFIA) skillset that can be applied here to the IT management and business man- agement roles to ascertain the levels of skills and responsibilities required during and after GET.

Business Managers Business managers a ssume t he responsibility at dep artment level to me asure, report, a nd reduce emissions. Ā ey are more interested in the economic and process dimension of the GET than in technology and social dimensions. Ā is is so because the economic dimension directly aff ects their performance and the process dimension is the one on which they have immediate control. Ā us , business managers can directly assist in the modeling of business processes, their investigations, and optimizations.

IT Governance Ā is is an activity for which more than one roles within the organization can assume responsibil- ity. IT governance—deals with overseeing the IT management and providing strategic and policy input i n t he p rocess o f g reening a n o rganization. Chapter 6 d iscussed i n de tail t he ro le o f I T governance standards such as Information Technology Infrastructure Library (ITIL) in a green enterprise. Each of the phases of ITIL can be applied in a w ay that not only enhances IT gover- nance of the organization but also impacts its carbon footprint.

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Corporate Governance Following a re so me o f t he p rocesses a nd s tandards t hat c ome i nto p lay i n t he ro le p layed b y Corporate Governance. Ā is is not a si ngle role belonging to a p erson but a role played by many people, a group or a committee. Ā ese processes have a need to be upgraded or fi ne tuned to refl ect the green requirements of the business.

Lean—will move toward Lean-Green, as was alluded to in the process chapter 3 ◾ Six Sigma—will not only focus on quality but also the effi ciencies in carbon reduction ◾ TQM—Total Quality Management—will incorporate metrics for carbon reduction in addi- ◾ tion to defect reduction KPIs—the Key Performance Indicators are not only to enable corporate governance but also ◾ green governance SIFA ( Skills F ramework fo r I nformation A ge), A IBA ( Australian I nstitute o f Bu siness ◾ Analysis) and PMBOK (Project Management Book of Knowledge) are examples of processes and frameworks that will all be modifi ed to refl ect the green awareness and green goals of the organization

Green IT Transformation—Deliverables Figure 9.9 depicts t he t ypical de liverables i n a G reen I T t ransformation p roject. S ome o f t hese deliverables are produced in one phase of the GET and then, in turn, they are the input to the next phase. (Starting templates for some of these deliverables is provided in the appendix.)

Green IT Business Case—documents the ROI, the budgets, and overall justifi cation for the ◾ project

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Figure 9.9 Deliverables in a Green IT project.

302 ◾ Green IT Strategies and Applications

Enterprise Emiss ion M easures—documents t he ex isting c arbon e missions ac ross t he ◾ organization Green Enterprise Emission Measures—resulting at the end of the GET ◾ Enterprise A rchitecture Do cument—that do cuments t he enterprise a rchitecture, u sing a n ◾ existing or modifi ed framework SLA ◾ Various docs relating to suppliers; outsourcing partners; legal ◾

GET: Diagnosis Phase As shown in Figure 9.7, there are four phases to GET supported by the measure phase.

Ā e d iagnostic p hase, d iscussed h ere, i s t he v ery fi rst p hase o f t he t ransformation p roject. Accurate diagnosis provides a good understanding of the current state of the organization by inves- tigating into the various work areas of the business from the point of view of transformation. A n understanding of t he structure a nd dy namics of t he organization, a s well a s its ability to a chieve goals, manage risks and ascertain the leading dimension of transformation is developed here.

Ā e s tate o f a n o rganization, w ith re spect to i ts c arbon em issions, i s ba sed o n t he c urrent emissions at t his early stage of the organization. Ā is measure would be a re latively approximate measure, a s t he sophistication of t he organization i n ter ms of a scertaining its c arbon em issions may not be high. Ā e demographics of the organization, its motivator, goals, size, and type would all aff ect its current state, as ascertained during this diagnostic activity. Diagnosis also includes a review or stock take of existing assets across all work areas. Ā e “ inventory” of business systems and applications provide basis for understanding the existing business model. Diagnosis can help an organization further estimate and refi ne its business case with details of eff ort required and the timeline for the transformation.

Diagnosis i ndicates t he s tate o f m aturity o f t he o rganization. I t t hus p rovides a n e xcellent opportunity to understand the length—breadth—depth of the Green IT strategies and policies. A few maturity models have been available—such as the Capability Maturity Model (CMM)* and a model used by Unhelkar (2009) to ascertain the maturity of mobile businesses. Philipson (2011) has a lso developed a G reen IT readiness index, and a c orresponding CMM for Green IT. Ā es e maturity models indicate how from an early, preliminary or ad hoc stage, the organization moves to a managed or matured stage wherein it is continuously improving its carbon footprint.

An organization that fi nds itself l agging b ehind i n ter ms o f c arbon em issions a nd n eeds to improve in a ll work a reas can be considered at a “ preliminary” level. Ā e next state for a n orga- nization can be when its eff ort at transformation improves its performance across more than one dimension of the business. Ā e advanced maturity of an organization is said to have been achieved after the transformation across all four dimensions has changed all work areas. Once the transfor- mation is complete along all dimensions and through all the work areas, the organization can be said to be in a “matured green” state. Finally one may also consider the state in which the organiza- tion has not only reached its own Green maturity, but is also helping its business partners.

Ā e Business Transformation Offi ce (BTO) is now f ully set up a nd organized. Ā e Business Transformation Bo ard (B TB) is f unctioning a nd rep orting to t he c orporate ba se. Ā e Business Transformation Champion (BTC) is also busy managing stakeholder expectations. Ā e diagnosis phase also ascertains and progresses the lead dimension of the organization for GET.

* www.sei.cmu.edu

Green Enterprise Transformation Roadmap ◾ 303

Figure 9.10 shows the diagnostic activities in relation to the equipment lifecycle’s carbon effi - ciencies of an organization. Ā ese diagnosis activities are carried out as follows:

Ā e G reen I T c hampion o rganizes l ifecycle e valuation a nd a scertains t he c urrent G reen ◾ maturity. Also, updates the business case on the Green IT project. Ā e b usiness m anagement ( supply c hain) re views t he e xisting p rocurement a nd d isposal ◾ attitudes and identifi es operational carbon emissions (CE). Ā e IT governance board (or similar governing body) reviews the existing procurement and ◾ disposal practices and updates P&L carbon emissions. Ā e corporate governance (board or similar governing body) evaluates the business case risks ◾ also reviews policies with business partners (business case for Green IT as presented by the Green IT champion). Recycling policies and practices are revised. ◾ Energy s tar a nd o ther r atings a re u sed ( if ava ilable) to a scertain t he g reenness o f t he ◾ equipments. Green procurement strategies as they apply to equipments. ◾ Optimization of operations is ascertained. ◾ Waste disposal policies and practices are revisited. ◾

Challenges Uncertain data on current carbon emissions across lifecycle/procurement ◾ Impact on SLAs a major challenge ◾ Minimal Industry experience in changes to software for carbon emissions ◾

Figure 9.11 shows the diagnostic activities in relation to ascertaining the end-user carbon effi ciencies.

During diagnosis phase of End-user effi ciencies, the following activities take place:

Ā e Green IT champion creates and updates the business case on the Green IT project. ◾ Ā e end-user provides input into a survey (or a similar social diagnostic tool) to help ascer- ◾ tain t he attitude toward Green IT. Measurements of c arbon emissions a re undertaken per device (desktop, mobile, printer) used by the end-users. Ā ese would be entered in a system, or in spreadsheet. Ā e IT governance board (or a similar governing body) is involved in permitting the creation ◾ of a device inventory; measurement of overall carbon emissions. Ā e corporate governance (board or similar governing body) evaluates the overall end-user ◾ policies o n G reen I T. C orporate g overnance a lso e valuates b usiness c ase fo r G reen I T a s presented by the Green IT champion.

Planning requires the incorporation of low-watt PCs, energy-effi cient m onitors, t hin c lients, printer rationalization and consolidation, and existing penetration of mobile devices.

Challenges Patterns of carbon emissions can be daily, monthly, yearly. ◾ Data/information ownership is a major challenge of virtualization. ◾

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Figure 9.10 Diagnosing equipment lifecycle’s carbon effi ciencies.

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Figure 9.11 Diagnosing end-user computing’s carbon effi ciencies.

306 ◾ Green IT Strategies and Applications

Figure 9.12 shows the diagnostic activities in relation to the enterprise data center effi ciencies of an organization. Ā ese diagnoses are carried out as follows:

Ā e Green IT champion organizes for measurements of the existing data center effi ciencies. ◾ Ā is w ill b e a ccomplished b y u sing e xisting a nd n ewly cre ated m etrics o n G reen I T (see Chapter 3 for metric). Also, updates the business case on the Green IT project. Ā e en terprise d ata c enter d irector ( or si milar re sponsible ro le) t akes a n i nventory o f I T ◾ equipments from the point of view of calculating the current CE. Measurements of CE are undertaken per server (or similar unit of hardware measure). Ā e IT governance board (or similar governing body) reviews the existing SLAs—especially ◾ to review which partners are involved in providing data center services. Ā e corporate governance (board or similar governing body) evaluates the overall end-user ◾ policies on Green IT. Corporate governance also evaluates the cost of running the data cen- ter, and the costs associated with the Green initiatives related to the organization (business case for Green IT as presented by the Green IT champion). A list of current virtualization or server consolidation techniques in use is made. ◾ Ā e physical environment and the facilities (where data center exists) is recorded. ◾

Challenges Overall o rganization p resents a b igger c hallenge t han I T, a s we a re l ooking at em issions ◾ across the enterprise. Green IT champion has to convince business management, corporate governance. ◾

Figure 9.13 shows the diagnostic activities in relation to IT as a low carbon enabler across the organization. Ā e ability of IT as a low carbon enabler across the organization is diagnosed via the following activities:

Ā e G reen I T c hampion e valuates t he e xisting o rganizational G reen p ractices a nd a scer- ◾ tains the overall enterprise green maturity. Also, updates the business case on the Green IT project. Ā e business management updates the divisional use of IT and models the current business ◾ processes. Ā e IT governance board (or similar governing body) critically examines software and hard- ◾ ware inventories. Ā e c orporate g overnance ( board o r si milar g overning b ody) e valuates t he e xisting enter- ◾ prise Green IT policies and ascertains or confi rms the greening dimension. Telecommuting/teleconferencing. ◾ Collaboration tools and SaaS. ◾ Supply chain. ◾

Challenges Overall o rganization p resents a b igger c hallenge t han I T, a s we a re l ooking at em issions ◾ across the enterprise. Green IT champion has to convince business management, corporate governance. ◾

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Figure 9.12 Diagnosing data center carbon effi ciencies.

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Figure 9.13 Diagnosing effi ciencies of IT as a low carbon enabler across the organization.

Green Enterprise Transformation Roadmap ◾ 309

GET: Planning and Scoping Phase In t he p lanning p hase, t he s trategic t hinking a nd i nnovative c apability o f t he o rganization a re translated i nto a ctionable a ctivities a nd t heir s equences i n s etting u p t he G reen t ransformation project. Creative ways of bring about the change, including maximum use of internal and external resources, are explored in this phase.

Ā e p lanning p hase e xtends t he e arlier, h igh-level roa dmap to a de tailed p roject l evel roa d map. For specifi c GET phases, there will be a need to create a project road map that is specifi c to the organization, its goals and its resources. It is important to note that this road map remains a live document—which means later, during enactment phase, this same road map is also (a) modi- fi ed depending on the nuances of the project and (b) refi ned through the feedback gleaned during transformation.

Ā e road map includes the Green transformation plan, the Green pilot project (which can be embedded within the transformation plan for small projects), the overall work area plan, the plan for the lead work area (this will relate to the lead dimension discussed earlier and it will also dic- tate plans for the rest of the work areas) and the quality plan (which will include verifi cation and validation of the changes). Ā e deliverables resulting from the road map are the plans themselves as also the project task list, the performance and ROI measures, the ranking of risks and the plans to audit the results of the transformation. Ā e roles involve in transformation planning (and also rest of t he project) include t he GTC, t he project manager, t he quality manager, work a rea lead, business manager, and the IT auditors.

Ā e planning and scoping phase of GET explores the output of the previous diagnosis phase to identify and formalize the planning of the transformation project. Once the signifi cant aspects of the business—especially the work areas—are identifi ed, planning outlines the tasks to be per- formed for transforming each work area. Ā e broad scope of the project and the work areas that are outlined in the diagnosis, and their interdependency, need to be discussed and resolved here. Ā e scoping aspect of the GET project in this planning phase ranks and prioritizes work areas of transformation. W hile t he risks a re managed i n practice during enactment, t he planning phase identifi es and ranks these risks, and also incorporates the eff ect of changes on the organization.

Ā us, p lanning i n t he GE T ten ds to b ecome a ba lancing a ct: ba lancing b etween c osts a nd benefi ts, technology and business; and balancing risks with outcome.

Ā e goals of the GET, already identifi ed as part of the strategies, are mapped against best prac- tices t hat a re specifi c to t he industry. For example, t he a irline industry w ill measure a nd set goals for the carbon emissions within a particular fl ight sector, whereas a hospital would measure carbon emissions in processes relating to a patient registration, or managing the stock of drugs. Each orga- nization h as to s eparately i dentify a nd do cument its g reen suc cess cr iteria i n t his p lanning p hase and formulate the right metrics and measurements that would be used to a scertain its success. Ā e planning phase utilizes the known project management techniques, including time and budget esti- mations, fi nalizing the goals and scope of the transformation, refi nement, and documentation of the detailed project plan together with the roles and responsibilities and evaluation and procurement of tools a nd te chnologies re quired for t he t ransformation process. Work a reas a re organized, leaders for t hose work a reas a re nominated, a nd i nterrelationships b etween work a reas a re h ighlighted i n planning phase.

Planning for the Green IT project starts with the Green IT champion—who fi nalizes the lead- ing area of the organization that will undergo transformation. Ā e leading area will start becom- ing obvious t hrough t he d iagnosis, but it i s i mportant to de cide formally w hether t he end-user effi ciencies should lead the way, or whether it should be the equipment lifecycle and procurement,

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or the data center. “IT as Low Carbon Enabler” should not be treated as a lead area of work, as it would be very risky to at tempt the Green transformation for the entire organization at fi rst. Ā e lessons learnt through the end-user and data center transformations, for example, can feed into the transformation of the entire enterprise.

Pilot Project Large GE T projects, a lthough holistic i n n ature, a re not c arried out a s a si ngle project. I n f act, it’s a program made up of many projects which, in turn, are made up of multiple iterations. Ā es e iterations of transformation are outlined in the planning. Furthermore, for such large projects, its advisable to have a pilot project that would test out the scope, the risks and reconfi rm the iterations that will be actually used in practice. Issues related to a pilot project are as follows:

Planning the pilot requires identifi cation of a small yet important area of business that can ◾ undergo GET. Ā e pilot validates the plan for GET, or identifi es the gaps that need to be covered. ◾ Evaluation of t he suc cess criteria, such a s t he formulation of K PIs ba sed on g reen metrics ◾ and their validation with measurements is undertaken during the pilot. Pilot is formally started, enacted, and closed formally—resulting in reports to the corporate ◾ board by the GTB. Pilots are invaluable in ensuring that disruption to normal functioning of the business due ◾ to the GET is kept to a minimum. Pilots h ighlight i nterdependence b etween wo rk a reas a nd a lso l ead to re visiting t he wo rk ◾ areas, their priorities, and their risks.

Figure 9.14 shows the planning activities in relation to enterprise lifecycle “pillar” of Green IT transformation with the green point method.

Enterprise Lifecycle Plan Planning fo r G reen I T e ffi ciencies i n enterprise l ifecycle i nvolve p lanning fo r e ffi cient procure- ment, m anagement, a nd d isposal of e quipment a s we ll products. For e xample, planning i n t his area i ncludes re cycling p lans, p rocurement s trategies t hat a re t argeted at g reen s trategies, a nd environmentally responsible waste disposal.

Ā e ROLES and ACTIVITIES for the planning process for the equipment lifecycle effi cien- cies are as follows:

Green IT Champion—Works with the business management, as well as the governances in the organization, to p lan t he c hanges to p roduct/equipment l ifecycle a nd procurement that will make the organization greener. Ā is planning includes discussions with business unit managers as to how they currently source materials, which equipments are used in production and how they are disposed.

Business Management—Plans, along with the Green IT champion, to procure, use, and dispose equipments in a carbon-sensitive way. Ā e recycling and disposal plans are part of procure- ment and disposal plan that will dictate the changes in this dimension of the organization.

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Plan CEMS Evaluation

Allocate Lifecycle

Resources

Disposal Plan

Plan Technology

SW Upgrade

Incorporate Business

Partners in Plans

Corporate Green Policy on Disposal

Optimal Operation

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Update Green IT

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Plan Technology

HW Upgrade

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Purchasing

Recycling Plan

SLA Green IT Trans. Plan

IT Governance

Business Management

Corporate Governance

(a) The procurement, disposal lifecycle is an integral part of overall business—especially in a production environment (as against a service environment) (b) Changes to SLAs with external parties/business partners requires upfront planning

Green IT Business

Case

Enterprise Lifecycle

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Measuring and Monitoring

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Figure 9.14 Planning enterprise lifecycle Green IT transformation.

312 ◾ Green IT Strategies and Applications

IT Governance—Oversees the planning process for hardware and software upgrades through- out the business lifecycle. Ā e product development lifecycle is also overseen by the IT gov- ernance, to en sure that the business is not disadvantaged due to t he greening process. Ā e CEMS evaluation here is directed at how it can help calculate ROI on the green investment from product lifecycle viewpoint.

Corporate Governance—Participates in the planning process on how the policies for corporate purchases and disposals will change. Ā e need to “talk” with business partners on potential changes to their SLAs is also undertaken by corporate governance here.

Input Green IT Business Case: Includes justifi cation for the new equipments, their TCCO, and replace-

ment costs.

Output Green IT Transformation Plan: Includes plans for green recycling, updates on the Energy Star

and other ratings, green procurement strategies, optimized operations, and waste disposal. Procurement an d D isposal Pl an: Sp ecifi cally fo cused on p rocurement o f e quipment a nd t heir

decommissioning. Ā is may not necessarily be a s eparate document, a nd may be a pa rt of the transformation plan. However, for large organizations dealing extensively with procure- ment and disposal, a separate plan will be required.

SLA: W ith B usiness P artners/External P arties: Ā ese w ill c hange a s t he e quipment l ifecycle moves toward a green lifecycle.

Challenges Ā e procurement, d isposal l ifecycle i s a n i ntegral pa rt of overall business—especially i n a ◾ production environment (as against a service environment). Changes to SLAs with external parties/business partners require upfront planning. ◾

Planning challenges in the area of overall lifecycle have to deal with the fact that the product lifecycle is an integral part of the overall business, particularly when it comes to a production industry (as against a service industry). Ā erefore, any changes to the lifecycle of products (and services) aff ect the entire organization. Ā e equipment (although initially IT equipment, but it can be any equipment) used in the process of production also provides the challenge to this green dimensions—as the orga- nization, especially t he governance boa rds, need justifi cation to u pgrade to g reen equipments; t he planning process also needs to handle safe and environmentally friendly disposal of equipments.

Figure 9.15 shows the planning activities in relation to end-user Green IT transformation.

Planning for End-User Effi ciencies Ā e ROLES and ACTIVITIES for t he p lanning p rocess fo r en d-user I T e ffi ciencies are as

follows:

Green IT Champion—Involved in leading and coordinating the planning activities; reporting to the board.

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IT Management

Report to Corp. Board

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Plan CEMS Evaluation

Prioritise Green IT

Trans. Project

Incorporate End-user Feedback

Plan to support

End-User Training

Business Management

Organize Practice & Policy

Reviews

Budget for End-User Training

Plan for Training

(role based)

Finalise Leading Green

Dimension

Plan

Plan Technology Upgrades

(quick wins)

Budget Technology

Support

Plan End-user Training

Industry Standards

[EPEAT etc.]

Green IT Trans. Plan

Highlight Technology Upgrades

Plan for Teleworking

(a) Estimations on Green IT Costs and Savings vital for corporate support (b) Plan for Training in Attitude change—based on roles. CRUCIAL!

Green IT Business

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Figure 9.15 Planning end-user Green IT transformation.

314 ◾ Green IT Strategies and Applications

End-User Representative—Planning for the training (could be short, self-facilitated or could be elaborate for a large upgrade to desktops and printers) as well as planning and budgeting for the time and eff ort required to change to green practices.

IT Management—Plans for the upgrades to the software and the hardware that will be required for the green eff ort. Ā is could be the planning for purchase of low-watt PCs a nd energy- effi cient monitors, for example. Ā ere will also be a need to plan for environmentally sensi- tive disposal of old and energy-hungry devices.

Plans b y I T m anagement a lso i nclude p lans fo r p rinter r ationalization a nd c onsolidation. Software u pgrades c an b e p lanned n ot o nly fo r de sktops ( such a s so ftware to s witch-off computers when not in use), but also for the CEMS that would be required for not only end- user effi ciencies but also for the rest of the eff ort.

Business M anagement—Participates i n t he p lanning p rocess to b udget fo r t ime a nd e ff ort required to support the technology upgrades and the end-user training. Similarly, business management will have to plan for how they will introduce teleworking in business units.

Deliverables Input

Green IT Business Case: Contains justifi cation for the project; hence provides input as to what needs to go into the planning process. Planning process is helped by a good understanding of the ROI expected in the end-user dimension of the organization.

Industry Standards: Such as EPEAT are incorporated in the plan to ensure green procurement and usage (hence such standards will apply to all vertical dimensions’ planning process).

Output Green IT T ransformation P lan: U pdated w ith s tep-by-step i nstructions o n h ow to c arry o ut

the transformation enactment later. Ā us, the activities listed here are meant to update the activities needed during enactment.

Green IT Enterprise Standards: Ā ese are the new, expected, green standards within the organiza- tion for expected carbon emissions per end-user device, per day/month/year, and so on.

Challenges Estimations on Green IT costs and savings vital for corporate support. ◾ Plan for training in attitude change—based on roles. ◾

Planning challenges in the area of end-user IT effi ciencies (as with the other dimensions) primarily deal with the estimations made on the costs involved in upgrading end-user technologies, train- ing, so ftware u pgrades, a nd so o n. Ā is e xpense h as to b e j ustifi ed a gainst t he c ost s avings, a s well as the initial goal of the organization to undertake green initiative (such as compliance with government regulations and/or fulfi llment of customer demand).

Attitude c hange o f t he en d-user i s a nother m ajor c hallenge t hat re quires c onsiderable p lan- ning. Ā is planning will include training as well as creation of user groups, recognition of changes through (possible) awards, and so on.

Figure 9.16 shows the planning activities in relation to data center Green IT transformation.

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Green IT Champion

Data Centre Architecture

Plan Compliance Audits

Plan Power Supply Upgrade

Revisit Outsourcing

SLA

Decide on DC Measures

(EPEAT, Energy Star)

Identify DC risks

Plan to change Practices

Evaluate DC change

Repercussions

Plan to change Policies

Plan Building Infrastructure

Upgrade

Upgrade Green IT Plan with DC

Plan

Participate In Planning

Updates

Plan SLA Update

Plan Server Virtualization

Industry Standards

Green IT Trans. Plan

Data Centre Director

Corporate Governance

IT Management

Plan DC Cooling Upgrade

(a) Plan for Virtualization must include Data/Information ownership, Backup Plans (b) Green Data is a new suite of data within the organization

Green IT Business

Case

Incorporate DC Director Feedback

Plan Green Data Storage

Plan CEMS Evaluation

Enterprise IT & Data Centre Efficiencies

Measuring and Monitoring

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Figure 9.16 Planning data center Green IT transformation.

316 ◾ Green IT Strategies and Applications

Enterprise IT Data Center Effi ciencies Planning for effi ciencies in the enterprise data center requires knowledge of both—the physical infrastructure (such as building and air conditioning) and the IT infrastructure (such as servers, network routers, and consumables). Hence the Green IT champion needs to work closely with the data center director to carefully plan all aspects of the data center upgrade.

Ā e ROLES and ACTIVITIES for t he p lanning p rocess fo r t he en terprise I T d ata c enter effi ciencies are as follows:

Green IT Champion—Works to upgrade the Green IT transformation plan with the data cen- ter de tails—such a s c urrent em issions, c urrent u sage o f t he c enter, p eople, a nd p rocesses involved in running the center and the measures to be used in future to ascertain the success of Green IT.

Data Cen ter Di rector—Plans, a long w ith t he G reen I T c hampion, to u pgrade t he b uilding, power supply, and air-conditioning/cooling upgrades. Server virtualization, which is a vital part of green initiative, is also a part of this planning process. Ā e plans for data storages, especially in a virtualized environment require planning for capacity, security, and usage of data. Should the servers be “outsourced” to a third-party provider of these services, the data center director has to also handle the risks associated with it.

IT Management—Continues to participate in the planning process, including plans for chang- ing to the current data center practices. For example, the data center may currently be hav- ing dedicated space on t he servers for each project. I T management c an oversee t he plans for changes to that practice to genuine sharing of disk space. Similarly, IT management will also oversee t he planning process for t he building a nd i nfrastructure upgrade. Finally, I T management will be interested in how the green project will evaluate CEMS—carbon emis- sion management software—that would be required during enactment, review, and the rest of the Green IT organization’s processes.

Corporate G overnance—Participates i n t he p lanning p rocess f rom a p olicies v iewpoint. Corporate g overnance i s i nvolved i n h ow t he SL A w ill c hange, w hether t he c hanges w ill have positive eff ect on the data center from both green and operational perspective, and how to plan and promote the changes to policies of the organization that will promote the green initiative.

Deliverables Input

Green IT Business Case: Provides justifi cation for the investment in data center upgrades; costs associated with server virtualization and optimization are listed.

Industry Standards: Relating particularly to DCiE/PUE metrics.

Output Green IT Transformation Plan: Green IT Enterprise Standards:

Green Enterprise Transformation Roadmap ◾ 317

Challenges Plan for virtualization ◾ must include data/information ownership, backup plans Green data is a new suite of data within the organization ◾

Planning challenges in the area of end-user IT effi ciencies (as with the other dimensions) primarily deal with the estimations made on the costs involved in upgrading end-user technologies, train- ing, so ftware u pgrades, a nd so o n. Ā is e xpense h as to b e j ustifi ed a gainst t he c ost s avings, a s well as the initial goal of the organization to undertake green initiative (such as compliance with government regulations and/or fulfi llment of customer demand).

Attitude c hange o f t he en d-user i s a nother m ajor c hallenge t hat re quires c onsiderable p lan- ning. Ā is planning will include training as well as creation of user groups, recognition of changes through (possible) awards, and so on.

Figure 9.17 shows the planning activities in relation to enterprise transformation enabled by IT.

Telecommuting/teleconferencing ◾ Collaboration tools and SaaS ◾ Supply chain ◾ Outsourcing can be one of the strategies to infl uence the enterprise ◾

Planning for IT as a Low-Carbon Enabler for the Enterprise Planning for the use of IT as a low carbon enabler for the enterprise requires plans related to Green IT, as well as planning the changes to the entire enterprise. Ā is requires development of policies and procedures related to promulgating IT as a low carbon enabler for the entire enterprise (will require corporate board involvement).

Ā us, this planning includes all previous dimensions and their planning as well as plans related to the business (not necessarily IT).

Ā e ROLES and ACTIVITIES for t he p lanning p rocess fo r t he d imension o f I T a s a l ow carbon enabler are as follows:

Green IT Champion—Works with the business management, IT governance and, most impor- tantly, corporate governance to plan out strategies for transformation to a g reen enterprise. Ā e G reen I T p lan i s u pdated fo r en terprise-wide c hanges—including i n te leworking o f employees, supply chain management, and BPM. Furthermore, the Green IT champion also sets up (as a part of the planning process) the carbon compliance reporting structure. Close association with all business unit leaders is required to achieve their planning.

Business Management—Plans, along with the Green IT champion, to promote green activities across the business unit which, in turn, would result in a green organization.

IT G overnance—Oversees t he p lanning p rocess fo r te chnology u pgrade a cross t he o rganiza- tion. Ā e IT governance is also involved in planning the use of emerging technologies (e.g., software as a service and Cloud) and how they can be used in low carbon enablement of the entire enterprise. Plans for C EMS i mplementation a re a lso c onsidered at t his p oint (after CEMS has been evaluated during enactment).

Corporate Governance—Participates in the planning process on how the corporate policies need to change—together with possible changes to the business model and the organization structure.

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Identify Risks in Plan

Plan for Emerging Technologies (SaaS, Cloud)

Plan Business

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Plan Organizational

Structure Change

Plan for Greening Business Process

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Green IT Trans. Plan

IT Governance

Business Management

Corporate Governance

Plan CEMS

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Setup Compliance Reporting Structure

(a) Return On Investment (ROI) is the major question that Corporate governance asks, and planning in this dimensions must help enable answering that question. (b) Organization-wide risks need to be estimated and prioritized.

Green IT Business

Case

Plan

Investigate Renewable

Energy Sources

Measuring and Monitoring IT as a Low-

Carbon Enabler

Figure 9.17 Planning enterprise transformation enabled by IT.

Green Enterprise Transformation Roadmap ◾ 319

Deliverables Input

Green IT Business Case

Output Green IT Transformation Plan: Gets updated here w ith plan for t he entire organization. Ā is

includes planning for changes to the business model, as well as structural changes. Task Plan: Step-by-step tasks to be carried out in implementing the Green IT project plan.

Challenges Return on investment is the major question that corporate governance asks, and planning in ◾ this dimensions must help enable answering that question. Organization-wide risks need to be estimated and prioritized. ◾

Planning challenges in the area of IT as a low carbon enabler deal with the entire organization. Ā us, marketing, sales, legal, and accounting departments are examples of involvement of non-IT areas of business in planning green-specifi c changes.

GET: Enactment Phase Enactment i s t he e xecution o f t he b usiness t ransformation p lan cre ated i n t he p revious p hase. Enactment requires full garment of project management skills. Ā is primarily includes risk man- agement, monitoring of progress, measurements and reporting. Enactment can be leaded by any work stream or a combination thereof. Following are issues to be considered during a GET enact- ment phase:

Identifi cation of risks during execution of the transformation plan, their priorities, and how ◾ to ameliorate them. Interrelationship amongst work areas, their dependencies and management of the lead work ◾ area as fi rst priority. Measurement of the GET outputs. Use of metrics created during diagnosis and formalized ◾ during planning are used here to ensure common measures for comparison—with the help of CEMS. Reporting to stakeholders and managing their expectations. ◾

While a GET project can be driven through any of the work areas, ideally the lead area is dic- tated by the lead dimension of transformation. In the subsequent two subsections, the ICT-driven enactment a nd t he business process d riven enactment a re d iscussed a s e xamples. ( Ā e planning process for each of these work areas as leading work areas will be slightly diff erent for the overall transformation plan.)

Green i nformation s ystems p lay a m ajor ro le i n m easuring a nd rep orting c hange re lated to the environment. Each individual employee’s carbon generation can be measured, collated,

320 ◾ Green IT Strategies and Applications

and reported with the help of information systems. Feeding this information back to the employee through smart metering can bring about immediate change in behavior. For exam- ple, during enactment… (Deshpande and Unhelkar 2011, Yogesh, HRG) if an employee in a ba nk i s provided, a s a re al-time meter, i nformation on t he a mount of c arbon g enerated by his computer, t hen t he v isual eff ect of not-turning off her computer is immediately felt. Ā is is en couraging a nd rei nforcing a p ositive c hange i n t he b ehavior o f t he em ployee. S imilarly information coming out of the Green ICT systems that bring about positive change includes reports of daily, monthly, and yearly GHG generation and using that data to impact practices in enactment. Ā us, Green ICT information systems need to p roduce numbers that not only focus on the environmental performance of the organization but also its overall effi ciency and eff ectiveness. Ā ese n umbers p rove the c ost b enefi ts o f t he e ff ort to c hange. Ā e suc cess o f enactment of the GET plan is closely tied with the way such changes also impact the bottom line of the organization.

Once t he Green t ransformation i s on its w ay, t he GT B must e stablish methods for mea- suring a nd rep orting t he p rogress to ward t he a chievement o f t hese g oals. M etrics a llow t he transformation b oard to p rovide v isibility to suc cess o f a G reen I CT s trategy, u nderstand the re sults, c ompare t hem w ith t hose o btained b y o ther o rganizations, a nd de termine w hen the objectives need to be adjusted in light of changing circumstances (Unhelkar and Philipson 2009).

Measuring the progress of the enactment allow the enterprise to establish, for example, whether a t arget fo r i ncreasing t he en ergy e ffi ciency o f s ervers a nd d ata c enters i s b eing a chieved, a nd whether additional energy effi ciency improvements need to be made to accomplish results compa- rable with benchmarks established by peers or competitors.

Ā e transformation plan may be utilized to help determine how best to measure progress and introduce accountability into the Green ICT initiatives, both at the enterprise and solution levels. IT governance representatives (board) may be also put in charge of supporting measurement and reporting, as well as of identifying when a realignment of internal measures or systems is needed to ensure that the expected results are seen, evaluated, and realized.

Technology-Driven Enactment Ā e ICT-driven enactment of the GET results from technology as a lead dimension of transfor- mation. Ā is will have the organization’s ICT systems, applications, and databases at the center of t he o verall t ransformation. Ā e d iscussions o n E I a re ap plied i n p ractice w hen t he en act- ment i s technology d riven. Ā e EI collaborates across va rious ICT s ystems such a s t he CR M, SCM/ERP, a nd H R s ystems o f t he o rganization. Ā ere a re a lso m any i n-house s ystems t hat are aff ected by the transformation, as also the systems and interfaces with those of the business partners. S imilarly, te chnology-driven en actment a lso i ncludes i mmediate c hanges to g over- nance, architecture as the management of ICT. Ā e factors that aff ect these management levels include the standards, need for integration, the approach to te sting and quality assurance, the contractual requirements and the deployment of the new ICT systems, applications, and data- bases. Ā e a daptation o f t he o rganization to t he n ew te chnology p ermeates a ll a spects o f t he organization. Ā is i ncludes i ts o rganizational s tructure, i ts so ftware s ystems, a nd i ts p eople. Ā erefore, transformation a lso includes undertaking training activities that are required at a ll levels in the organization.

Green Enterprise Transformation Roadmap ◾ 321

Ā e important ICT systems and corresponding changes to those systems resulting from GET are discussed briefl y:

Customer Relationships Management Ā e CR M systems are updated during GET with the goal of combining “green” with “value” to the customers. Ā is value includes reliable and good quality service (that will reduce repetition), personalized at tention to t he n eeds o f t he c ustomers, a nd i nteractive su pport d ue to c hanging customer needs. A good CR M ensures that the customer is provided a single unifi ed view of the business a nd n ot t he p ossible i nternal f ragments o f t he b usiness. Ā erefore, d uring GE T, t here is u sually a n eed fo r ba ckend i ntegration a nd so me d ata m igration re lating to CR M, a nd t he associated c arbon d ata. SOA a nd WS p lay a m ajor ro le i n t his i ntegration, a s w as d iscussed i n Chapter 6.

Supply Change Management (SCM) Supply Change Management applications undergo change to enable users, primarily employees of the organization, to perform many common warehouse, inventory, and shop fl oor related tasks in a holistic manner. A Green SCM was also discussed in Chapter 6. A technology-led transforma- tion w ill monitor a nd c ontrol materials, t heir delivery a nd order status. Similarly, procurement, including p urchasing, t ransportation, wa rehousing, a nd r eceiving o f good s w ill ha ve p rocesses that re quire te chnical i ntegration w ith t he u nderlying SC M s ystems. R educed m ovement o f goods, h olding o f i nventory a nd ac curate p roduction e stimates a re ac hieved b y t he u se G reen SCM. Integration and migration are important technical consideration in these ICT systems, as substantial carbon data gets added to these systems.

Human Resource and Payroll Systems Ā e HR systems provide opportunities for Green HR to be implemented. Ā ese HR systems are upgraded to off er g reater support to i ndividuals a nd depa rtments in terms of t raining, re wards, and c areer pat h. P ersonalization o f t imesheets a nd pay rolls, en terprise ba rgaining, subs equent agreements, and related responsibilities of HR may also have to be modifi ed as a result of transfor- mation. GET also changes the job roles, responsibilities, management, organizational structures, and hierarchies, as discussed in detail in Chapter 8.

Business Partner’s Systems Ā rough the use of SOA and web s ervices, GET projects aim to i mprove the interactions of the business with its partner businesses. WS ba sed technologies change the way the business sources services. For example, one business can “plug” services from another “Carbon tax calculators,” or source’ Carbon emission limits’ such as which could be off ered by the government within its own systems. Information and knowledge management within is changed to make it robust, accurate,

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reliable, a nd a ccessible. S earch c apabilities a nd a bility to c orrelate i nformation i s subs tantially enhanced (Santer 2009).

Integration A major challenge of ICT-driven GET is the handling of integration issues. While integration is always a c hallenge in even routine upgrades of systems, during GET this issue becomes particu- larly c hallenging a s a ll t he wo rk a reas o f t he b usiness a re l ikely to c hange. I n a ddition to c on- sidering t he te chnical c hallenges of i ntegration, i ntegration of ICT s ystems h as to a lso c onsider corresponding eff ect on people, their organizational structures, their device usage (including the challenges of usability), a nd t he changes to t he corresponding business processes. SOA a nd WS enables this integration (Chapter 6).

Data Migration Another major challenge across a ll ICT systems is that of data migration. Usually, existing data with the current systems is in silos; it is also duplicated. Ā ese GET projects have to plan for data migration to ensure its unifi cation.

Business Process–Driven Enactment Business process-driven enactment of Green enterprise transition is yet another dimension along which t he GE T c an b e en acted. S uch GE T i s ba sed o n re engineering o f b usiness p rocesses. Business p rocesses, c ustomers/partners, o perational o rganization, I CT s ystems, a nd re gulatory work a reas p rovide t he fo undation o f t his pa rticular b usiness t ransformation. b roadcasting, informative, transactive, operative, a nd collaborative processes t hat were d iscussed in Chapter 5 form a hierarchy of increasing complexity from a process perspective in business transformation. Broadcasting and informative business processes are easy to transform as they have less security requirement but they are of less value to users. Transactive processes, the next a level of complexity, are mostly commercial in nature. Operative processes help in providing and ensuring effi ciencies in d iff erent depa rtments suc h a s i nventory, H R, a nd fi nance. L astly, c ollaborative processes a re most complex and require interfaces between business processes of external and internal business parties. It is recommended that the GET project should incrementally incorporate these levels of complexities of business processes—starting with the informative layer and moving gradually up to the collaborative layer of processes. Ā e integration of various systems, as mentioned earlier in the I CT-driven t ransformation, a lso a ff ects the internal, as well as external business processes. Ā ese business processes and supporting systems in the current state of the organization are stud- ied carefully to eff ectuate the necessary changes in those processes and systems that would result in a unifi ed view to the users. While existing processes can be reengineered and merged together, there a re a lso c ompletely new processes t hat need to b e engineered. Process modeling tools a nd techniques can be very helpful in this regard.

Finally, training is a crucial aspect of deploying new and reengineered business processes. Ā is is particularly so because depending on the complexity of the processes, there can be a parallel execu- tion of the old processes, as well as the new processes. Training of employees needs to handle these transformational complexities. Similarly, training in-house needs to be complimented by potential training for business partners and customers involved in large and complex transactions.

Green Enterprise Transformation Roadmap ◾ 323

GET: Review and Measure Phase Ā e re view p hase de tails w ith t he o utcomes a nd aud iting t hem to c heck w hether t he s tated objectives a re re fl ected i n t he outcomes. Furthermore, t he outcomes need to b e m easured a nd studied not only for the new business, but a lso for the new environment in which the business is now operating. It is usual for the outcomes to b e slightly diff erent to t he stated goals even in case of successful business transformations. Ā e diff erence in the outcomes from the goals could be b ecause b oth t he business a nd environment h as moved during t he t ime t he GE T project i s implemented.

Evaluation of the outcomes include reviewing in detail the newly implemented software, system solution, and changes to organizational structures as well as changes to the business portfolio and model. Ā ese measurements a re incorporated in t he feedback by t he GTC to t he boards re spon- sible for the Green transformation as also to the business stakeholders. Ā e review process not only ascertains the achievements of the transformation, but also opens up doors to f urther and poten- tially ongoing enhancements. Hence the review process should make provisions for these enhance- ments in all work areas of the business. Organizations should incorporate changes due to experience gained from the transformation as well as the issues discovered during transformation.

Green m etrics a s d iscussed t hroughout t he GE T, a re re quired to i dentify a nd m easure t he criteria fo r o ptimization a nd i mprovement. M etrics p rovide a s et o f fo rmal m easurable cr iteria that prove the improvement resulting from GET. Ā erefore, metrics are used to communicate the success of the GET project to various stakeholders. Understanding the perceptions of the goals in relation to business transformations provides a good suite of measurable criteria. Changes to busi- ness processes, ICT systems, and organizational structures are also measured before, and after the changes. Each work area can have its own set of metrics, and these metrics change depending on the industry-sector and business type.

For e xample, en terprises m ay b e m easured i n ter ms o f t heir s tructures ( what t hey c onsist of ) through the depth of hierarchy and the time it takes to c hange that hierarchy. Processes and functions (what they do, how they change and how they bring about change) can be measured in terms of t he number of activities w ithin t hose processes, t he total number of processes required to achieve an outcome, the cost of carrying out those processes and the ability of the processes to change due to change in external situation. Technologies, especially software, networks, databases, and devices a re measured for t heir a sset va lue, t he contribution t hey make to t he business units and business processes, and even for their carbon footprint (especially if the business transforma- tion is motivated by environmental compliance). Measuring these various organizational factors, including some that are created in house, provide indication of performance improvement, or lack thereof, of the enterprise after transformation.

Discussion Points What are the two diff erent aspects of green enterprise frameworks? (Ā e process framework ◾ and the enterprise framework.) Discuss the “as is” and “to be” states of a product-based organization and how it would diff er ◾ from a service organization. Diff erentiate, with examples of the individual green processes from the departmental, orga- ◾ nizational, and collaborative ones. What is the importance of equipment lifecycle as compared with data center effi ciencies? ◾

324 ◾ Green IT Strategies and Applications

How would you apply diagnose, plan, enact, and review in transforming a bank to a g reen ◾ bank? Now discuss how the aforementioned four phases and their measures change when applied ◾ to a coal mine. What a re t he m ajor d iff erences b etween a te chnology-led v ersus a b usiness-process l ed ◾ GET? How do metrics bring about a change in attitude? ◾

Action Points Action Points from the Diagnosis Phase: ◾ Nominate t he roles for your GET project. Ā is would include appointment of t he GETC ◾ and other re lated roles. Ā e formation of t he BT B w ith pa rticipation f rom va rious s take- holders and governance boards of the organization is a vital stepin diagnosis phase. Identify a nd do cument t he dem ographics o f yo ur o rganization. Ā is is not only t he geo - ◾ graphical i nformation, b ut a lso t he t ype a nd si ze o f yo ur o rganization, i ts sc ope, a nd i ts motivation for GET. Identify the current maturity level of your organization. Ā is step will also give you a good ◾ idea of the metrics to use to measure the current maturity and, later, during review, to mea- sure the new maturity of your organization. Investigate each work area for its current assets and the role it will play in transformation. ◾ Note how your demographics a nd your m aturity levels w ill i nterplay w ith t he work a reas you identify for transformation. Ā e relationship and dependence amongst the work areas is as important as the areas themselves. Produce the deliverables required during this phase. Apply quality measures to t he deliver- ◾ ables in diagnosis. Action Points from the Planning Phase: ◾ Revisit the results and deliverables from diagnosis phases. Used brainstorming technique to ◾ push out earns and inconsistencies. Draft t he overall project plan for t he t ransformation. Use m ind-maps to i dentify a reas of ◾ importance, and their rankings. Finalize t he wo rk a reas a nd o utline t he p roject p lans fo r e ach wo rk a rea. S WOT m ay b e ◾ handy within business models and business processes where as cause-eff ect analysis through- out all work areas. Create and enact a Pilot project. Ensure this is a small yet important area of your business; ◾ and that the normal business is not disrupted. Update and fi nalize the transformation plan and the plans for each work area based on the ◾ results from the pilot. Again, cause-eff ect analysis can be used for this work. Finalize the lead work area and update its plans for leadership for the rest of the work areas. ◾ Check for interdependencies between work areas. Finalize t he m etrics to b e u sed to a scertain q uality a nd suc cess cr iteria o f t he p roject a re ◾ properly measured. Finalize the roles and their responsibilities. ◾ Action Points from the Enactment Phase: ◾ Ā e BTB should start the enactment with the stakeholders and immediately start managing ◾ their expectations.

Green Enterprise Transformation Roadmap ◾ 325

Update t he Transformation p lan w ith p ilot p roject re sults a nd en sure a re ady to u se BT ◾ plan. Manage r isk—identify t he k nown a nd u nknown r isks w ithin t he p roject t hat c an c ome ◾ from any of the dimensions for transformation. Enlist ongoing senior management support, as also handle the unions (where relevant). ◾ Ensure t he transformation is visible to a ll d imensions of t he organization t hrough regular ◾ updates on the web site, newsletters, and briefi ng meetings. Use measurement tools corresponding to the agreed metrics in planning. ◾ Ensure quality in the project through regular testing especially in ICT systems. ◾ Update SLAs and other contracts. ◾ Action Points from the Review Phase: ◾ Undertake formal review of the results from the BTB project. Ā is would include forma- ◾ tion of a c ommittee w ithin t he BT B to re view t he re sults a gainst t he s tated g oals of t he project. Formally document what went right and what was wrong in the project. Ā is should provide ◾ valuable lessons in conducting ongoing business. Use metrics to measure the output after the BTB project. Compare the results with the same ◾ metrics used to measure the parameters at the start of the project. For example, if enhancing customer e xperience i s t he g oal o f t he p roject, t hen u se a m easure fo r t hat e xperience— before and after the BT project. Ā is can be a measure of the customer experience through a survey/questionnaire, and additional parameters like time spend on the web site, amount of business conducted, and so on. Ensure that the stakeholders of the project are properly apprised of the results. ◾ Formal audits will ensure that the metrics used for the project and for the overall business ◾ are validated.

References Arunatileka, D., Ghanbary, A., and U nhelkar, B. (2008). Chapter XXIV, Infl uence of Mobile Technologies

on Global Business Processes in Global Organizations. In M. Raisinghani, ed., Hand book of Research in Global Information Technology Management in the Digital Economy, IDEAS Group Publication, Hershey, PA, USA. ISBN 978-1-59904-876-5 (e-book)—ISBN 978-1-59904-875-8 (hard cover).

Arunatileka, S. and G inige, A. (2003). “Ā e S even E’s in eT ransformation—A S trategic eTransformation Model,” presented at IADIS International Conference—e-Society 2003, Lisbon, Portugal.

Damien, S. (2009). “Kno wledge management” on E nterprise S earch and R etrieval. I n P. S imon, ed, J ohn Wiley and Sons.

Deshpande, Y. University of Western Sydney, Australia In B. U nhelkar, ed., Handbook of R esearch in G reen ICT: Technical, Methodological and Social Perspectives, IGI Global, Hershey, PA, USA.

Deshpande, Y. and U nhelkar, B. (2011). Chapter 8 , I nformation systems for a gr een organisation, pp 116–130.

Gantz, J. (2009). Ā e Diverse and Expanding Digital Universe. Framingham, MA: IDC. Godbole. (2011). Chapter 34, Green Health: Ā e Green IT Implications for Healthcare Related Businesses,

pp. 470–479; and Chapter 35, E- Waste M anagement: Challenges and I ssues. I n B. U nhelkar, ed., Handbook of Research in Green ICT: Technical, Business and Social Perspectives, pp. 480–501. IGI Global, Hershey, PA, USA. ISBN 978-1-61692-834-6 (hardcover)—ISBN 978-1-61692-835-3 (ebook).

Koomey, J. G. (2007). Estimating Total Power Consumption b y S ervers in the U.S. and the World. Stanford CA, USA. R etrieved January 13, 2010 fr om http://enterprise.amd.com/Downlo ads/svrpwrusecompletefi - nal.pdf

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Murugesan, S. (2007). C utter E xecutive R eport, G et R eady to E mbrace Web 3.0, A ugust 2007. B usiness Technology Trends & Impacts; Business Intelligence, Cutter, Boston, USA.

Murugesan, S. (2010). Web 2.0, 3.0 and X.0: Technologies, Business and Social Applications, Edited book, IGI Global, Hershey, PA, USA.

Philipson. (2010). Chapter 9, A Compr ehensive and P ractical Green ICT Framework. In B. Unhelkar, ed, Handbook of Research in Green ICT: Technical, Business and Social Perspectives, pp. 131–145. IGI Global, Hershey, PA, USA. ISBN 978-1-61692-834-6 (hardcover)—ISBN 978-1-61692-835-3 (ebook).

Philipson, F oster, G. and B rand, P. J. (2009). Chapter 30, Carbon E missions M anagement S oftware (CEMS): A New Global Industry, pp. 413–430 Graeme Philipson, Connection R esearch, Australia Pete Foster, Springboard Research, Australia John Brand, Ā e Green IT Review, Australia- Ed. B. Unhelkar, in Handbook of Research in Green ICT: Technical, Business and Social Perspectives IGI Global, Hershey, PA, USA. ISBN 978-1-61692-834-6 (hardcover) – ISBN 978-1-61692-835-3 (ebook).

Philipson, HRG. (2011). Chapter 9, A Comprehensive and Practical Green ICT Framework, pp 131–145, In B. U nhelkar, ed, Handbook of R esearch in G reen ICT : Technical, B usiness and Social P erspectives IGI G lobal, H ershey, PA, USA. ISBN 978-1-61692-834-6 (har dcover)—ISBN 978-1-61692-835-3 (ebook).

Phillipson, G. (2009). Envirability, accessed from Feb 2011, see www.connectionresearch.com.au. Rosen et al. (2011). Chapter 1 , S trategies for a S ustainable E nterprise. I n Handbook of R esearch in G reen

ICT: Technical, Business and Social Perspectives, pp. 1–28. IGI Global, Hershey, PA, USA. ISBN 978-1- 61692-834-6 (hardcover) – ISBN 978-1-61692-835-3 (ebook) Mike Rosen, Wilton Consulting Group & Cutter Consortium, USA Tamar Krichevsky, Wilton Consulting Group, USA Harsh Sharma, OMG Sustainability SIG, USA.

Sherringham and Unhelkar, B. (2010). Achieving Business Benefi ts by Implementing Enterprise Risk Management, Cutter Executive Report, Vol. 7, N o. 3, J uly 01, 2010, E nterprise Risk M anagement & G overnance Service (co-authored with Sherringham, K.).

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Unhelkar, B. (2009). C utter r eport on business trans. in domains such as Telecom and B anking- Business Transformations: Framework and Process, (16,000 words), Cutter Executive Report, Nov, 2009, Vol. 12, No. 10, Business-IT Strategies practice. Cutter, Boston.

Unhelkar, B. (2009). Mobile E nterprise Transition and M anagement, Taylor & F rancis G roup (A uerbach Publications), Boca Raton, FL, USA. ISBN: 978-1-4200-7827-5 (F oreword b y E d Yourdon, USA). Unhelkar, B. (2008) Mobile Enterprise Architecture (12,500 words, aimed at CxO s), Cutter Executive Report, April, 2008. Vol. 11, No. 3, Enterprise Architecture practice.

Unhelkar, B. and Ginige, A. (2010). A framework to derive holistic business transformation processes, Paper 44, P roceedings of I nternational Confer ence on E-B usiness, (ICE-B), 2010, http://www.ice-b.icete. org/Abstracts/2010/ICE-B_2010_Abstracts.htm

Unhelkar, B. and P hilipson, G. (2009). Ā e Development and A pplication of a G reen IT M aturity Index. ACOSM2009—Proceedings of the A ustralian Confer ence on S oftware M easurements, N ov 2009, Sydney.

Williams, E. (2004). Energy I ntensity of Computer M anufacturing—[Iowa City , IA: A CS P ublications.]. Environmental Science & Technology, 8.

Zachman, J. A. (1987). Zachman Framework. Ā e Zachman institute for framework advancement [Online]. Available from http://www.zifa.com/ [last accessed October 2010].

Zara, O. (2004). Le Management de l’Intelligence Collective. Paris, France. M2.

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10Chapter

Green Compliance: Protocols, Standards, and Audits

For a suc cessful te chnology, re ality m ust t ake p recedence o ver p ublic re lations, fo r Nature cannot be fooled.

Richard P. Feynman

Key Points Discusses t he s tandards, p rotocols, l egislations, a nd l ikely i nitiatives re lated to c limate ◾ change and environmental sustainability Summarizes the Rio, Kyoto, and Copenhagen climate change summits due to their impor- ◾ tance to and impact on business organizations Discusses t he ISO 1 4000 f amily o f s tandards a nd a ssociated ISO 1 8000 a nd ISO 1 9001 ◾ standards in relation to to environmental performances of organizations Presents the regulatory standards for emissions such as EPEAT, RoHS, and WEEE used in ◾ labeling the carbon effi ciency of equipments Discusses the various types of Green IT audits ◾ Provides a integrated model to base an approach to conducting internal and external Green ◾ IT audits

Introduction Ā is chapter discusses the main protocols and standards that are associated with the environment and sustainability in the context of Green IT strategies and initiatives for business outcomes. Ā e discussion i ncludes t he l egal a nd re gulatory a spects o f i mpacting a nd em erging en vironmental standards faced by businesses. Successful Green enterprise transformation (GET) should result in a carbon-compliant organization. Ā at means, the organization should understand, measure, and

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report its carbon performance according to the regulatory requirements of the carbon legislations in that region. As was discussed in Chapter 2 with respect to the Green IT drivers for an organi- zation, this requirement for legal compliance is one of the six key drivers for GET.

Apart from measuring and reporting on the carbon compliance for an organization, there is also a need to va lidate the accuracy of those measures and reports. Ā is is so because, increasingly, the future of an organization—particularly on the stock exchange—will be dictated by its carbon mea- surements a nd reports. Ā erefore, formal a nd informal aud its of t he c arbon measures a nd reports are part of the governance for a responsible green organization. Ā erefore, meters and other record- ing devices, carbon-content databases, applications, and systems, used in producing the compliance reports a nd t he a ccuracy o f e xternal g reen web s ervices emb edded i n t he ap plications sh ould b e formally aud ited. M etrics a nd m easurements, d iscussed e arlier i n Chapter 3 , p rovide t he ba sis o f the carbon data that are collected and reported. Carbon Emissions Management Software (CEMS) specifi cally de veloped fo r m anaging c arbon p erformance o f a n o rganization i s u sed to m easure, monitor, and report on the organization’s carbon performance both internally and to the regulatory bodies. Ā is importance of CEMS subjects it to audits as well. Ā is chapter discusses the importance of audits of carbon data, systems, metrics, measurements and reports associated with CEMS.

Ā e domain of climate change and environmental sustainability in business is inundated with rapidly evolving protocols, legislations, and standards, see Table 10.1 (ISO 14000). Ā es e proto- cols, standards, and legislations are a result of discussions and debates at various forums and sum- mits where t he political, social, a nd business world c onverged u nder t he climate change a genda (Climatechange.gov.au). Various countries and regions interpret the need to reduce carbon diff er- ently. Ā is variation is based on a number of factors such as the physical location, demographics,

political will of the government, public opinion, economic and social development of t he region, a nd t he state of t he industry. Ā us, t here i s si gnifi cant u ncertainty i n c arbon l egislations. However, although the rapidity of the evolution and the uncer- tainties a ssociated w ith t hese l egislations a nd p rotocols a rise from the nascent nature of the domain, business can use these to their advantage to achieve business improvement.

Table 10.1 a lso l ists so me o f t he s tandards a nd l egislations associated w ith c limate c hange. S ome p opular rep orts a nd g overnment/industry i nitiatives a re also listed in Table 10.1.

Protocols and Standards Green IT, green business, a nd industrial verticals in which t he business exists a re a ll infl uenced by t he g overnment a nd re gulatory b odies. I nternationally, a nd pa rticularly at t he va rious levels of government, the aforementioned protocols provide a good basis for a strategic and a long-term approach to handling environmental impacts. Protocols themselves may not be binding, but even- tually some of t hese protocols or some of t heir a spects get enshrined into law. For e xample, t he U.K. government’s Climate Change Act (the fi rst national framework to address climate change) became law on November 26, 2008 t hat m ade it m andatory for organizations to l egally reduce their carbon emissions by 34% by 2020 a nd 80% by 2050 (compared with their 1990 emission levels). Protocols relating to the environment also exist at state and even council levels. Businesses are encouraged to adopt these protocols as they formalize the business attempts at reducing carbon emissions. Some of the important protocols in this climate change domains are discussed next.

Legislations, standards, protocols and ini- tiatives form the crux of the sociocultural- political dimension of a Green enterprise. These are usually considered as “soft” fac- tors as compared with the “hard” technol- ogy factors. Yet, these factors are equally important in successful GETs, if not more. However, they also change a lot more than the technological factors in Green IT.

Green Compliance ◾ 329

United Nations Framework Convention on Climate Change (UNFCCC, Rio) One of the earliest protocols that highlighted the role of climate change and brought about some action came from the Rio summit in 1992. Dubbed the Earth Summit, this was the fi rst protocol of its kind and became formally known as the United Nations Framework Convention on Climate Change (UNFCCC, Rio, 2010). While the protocol or “framework” arising from that convention does not contain any binding laws, the summit itself generated global awareness of the challenges of climate change and created opportunities for countries to sign and, in case of many countries, ratify the convention. Ā e R io summit paved the path for ensuing global summits at Kyoto and the recent one in Copenhagen (December, 2009). While these summits continue to substantially raise the public, political, and corporate awareness, results are not binding unless they are specifi - cally ratifi ed by participating countries.

Kyoto Protocol Ā e K yoto P rotocol ( 2010) i s a n i nternational a greement t hat b uilds o n t he a forementioned UNFCCC. Ā e objective of Kyoto Protocol was “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the cli- mate system.” Ā e Kyoto Protocol created a set of binding targets for 37 developed countries (also known as Annex I countries) along with the European community for reducing GHG emissions. Achieving of this target would amount to a reduction in emissions on an average of 6%–8% over

Table 10.1 Summary of Compliance Mechanisms: Protocols, Standards, Legislations and Initiatives

Compliance Mechanisms Examples Impact

Protocols Rio (UNFCCC 2009), Kyoto, Copenhagen, Rio (again)

Formulated globally by political leaders that will bind countries to emission controls driving wide-ranging legislative impacts within countries impacting heavy CO2 emitters the most

Standards ISO 14000, 18000, 19001, CMM (Green IT readiness)

Provide basis for carbon reduction, compliance and comparison

Providing a framework to enable environmental management; enabling comparisons at an international level

Legislations NABERS, NGERS (NGER 2010) (NGER 2009), CPRS (2010), RoHS, WEEE, Climate change acts (U.K., Australia, U.S.)

Enables legal compliance by businesses Also, enables trading amongst partners spread across regions based on legislative compliance

Initiatives STERN Report; Smart2020 report; USA Energy Star; Green Grid, CSCI, GRI

Thought provoking personal, industrial, and government effort

The driver, in many cases, being enlightened self-interest (discussed in Chapter 2)

330 ◾ Green IT Strategies and Applications

the 1990 levels during the period 2008–2012. Some exceptions to these requirements were pro- vided for slightly less affl uent countries (such as Iceland), wherein they were permitted to increase their emissions (Hammer 2007).

Greenhouse Gas Protocol Ā e Greenhouse Gas Protocol (GHG Protocol) is a widely known protocol that has been adopted by many government and business leaders to understand, quantify, and manage GHG emissions (www.ghgprotocol.org). As discussed in Chapter 3, GHG classifi es emissions into three separate Scopes (1, 2, and 3) from which a basis for calculating the organization’s overall carbon footprint can be established (see OSCAR for details of calculations):

Scope 1 emissions—Ā e direct emission of GHGs by the organization. Ā ese are the emis- ◾ sions re sulting f rom m anufacturing a ctivities ( e.g., au to m anufacturing), p hysical m ove- ments of men and material (e.g., in a foundry), or chemical emissions (such as from a paint shop). Scope 2 emissions—Ā ese emissions form the indirect consumption of energy such as elec- ◾ tricity. Ā ese are added on to the Scope 1 emission calculations. Ā e emissions from a coal fi red power station will be a S cope 1 for that power station, but Scope 2 for a ba nk that is using that electricity to power its computers. Scope 3 em issions—Ā e G HG em issions emb edded i n t he su pply c hain o f t he o rganiza- ◾ tion—primarily belonging to t he business partners. Emissions in this scope are not clearly defi ned i n t he protocol a nd, t herefore, not u sually i ncluded i n t he em issions c alculations. With t he p opularity o f o utsourced wo rk, h owever, t hese S cope 3 em issions w ill b ecome prominent in calculating the carbon footprints.

Copenhagen Ā e Copenhagen summit, held in 2009, was focused on creating an agreement for a framework to address climate change beyond 2012. Ā is Copenhagen summit resulted in an agreement by a large number of countries (138) to wo rk toward keeping global temperature i ncreases to b elow 2 °C. Ā is a greement g enerated substantial debate a nd d iscussion b ut, si milar to t he e vents i n the original U NFCCC (Rio) summit, it was not passed unani- mously and is not legally binding.

Following o n f rom C openhagen, t he n ext U nited N ation’s Climate Change Conference will be held in Mexico. Ā e hope from many countries and individuals is for a new global consen- sus t hat would suc cessfully a ddress c limate c hange. Ā is hope, however, i s s till f aint a s t he p olitical l eaders a nd g overnments get embroiled particularly in arriving at a balanced emission cap between the fully developed versus developing nations.

Furthermore, in the same context, the next major summit on climate a greed by t he United Nations general a ssembly w ill be in 2012 and will be hosted by Brazil. Ā e themes are the Green

Economy i n t he c ontext o f su stainable de velopment a nd p overty er adication, t he i nstitutional

The last decade has been a series of global summits, initiatives, and agreements. The Earth charter of year 2000 is the most popu- lar of all.

This charter underscores global interde- pendence in the environmental domain and includes declaration of fundamental prin- ciples for building a just, sustainable, and peaceful global society for the twenty-fi rst century.

As this charter does not discriminate between developed and developing econo- mies, it has been very well received by the BRIC, (Brazil, Russia, India, China) group of countries. For example, since 2002, the Brazilian Ministry of the Environment has disseminated the Earth Charter and has been using it in some of its initiatives, par- ticularly as a guide to implement the Agenda 21 Program, and as a reference for holding national environmental conferences (The Earth Charter Initiative, n.d.).

Green Compliance ◾ 331

framework for su stainable de velopment, emerging i ssues, a nd a re view of present c ommitments (www.earthsummit2012.org). Interestingly, 2012 is also the year when the Kyoto Protocol to the UNFCCC, w hich c ontained l egally b inding t argets (as a ccepted b y m any c ountries) to re duce GHG emissions, will expire.

While t he su mmits a nd p rotocols pav e t he w ay fo r a g lobal c onsensus, w hen i t c omes to implementing the agreements, there is a need to commonly accepted standards. Ā e International Standards O rganizations ( ISO) h as b een a ctive i n t his a rea a nd h as p roduced a g roup o f s tan- dards a ssociated w ith environmental su stainability i n business w hose business i mpacts a re n ow considered.

The ISO 14000:2004 Family of STANDARDS Successful GET, particularly across the supply chain, requires the a cceptance a nd a doption o f a c ommonly a ccepted s tan- dards b etween o rganizations. Ā e ISO 1 4000 s tandard fo r environmental management provides a basis for organizational compliance w ith em ission re quirements. Ā is I SO 1 4000 standard i s a f amily o f s tandards a ddressing v arious a spects of en vironmental m anagement. Ā e s tandards a re l isted i n Table 10.2. Ā e very fi rst two standards, ISO 14001 and ISO 14004 deal with a system to man- age environmental issues—including identifi cation and control of the environmental impact of an organization’s activities, products, or services. ISO 14001 provides t he requirements for a n environmental system and ISO 14004 gives general guidelines for the system (www.iso.org). An EI system meeting the requirements of ISO 14001 becomes an excellent environmental manage- ment tool that forms part of the repertoire of an organization going green. Subsequently, ISO 14064–1 and ISO 18001 (OHAS) standards are also being implemented by organizations.

The ISO I4001 is the fl agship standard for environmental management. Similar to the role played by the ISO 9000 family of stan- dards in the quality assurance arena, this ISO 14000 series of standards are set to play a key role in the environmental man- agement of business.

Table 10.2 The ISO 14000 Family of Standards for Environment Management Systems

Standard Primary Focus

ISO 14001 Environment management systems (EMS); Their requirements and approach

ISO 14004 Implementation guidelines for the EMS

ISO 14010–15 Environmental auditing—of system, practices, and reporting

ISO 14024 Environmental labeling—products, equipments, infrastructure

ISO 14031 Environmental performance evaluation—of organizations and systems

ISO 14040–44 Lifecycle analysis—primarily of equipments, but also any other aspect like products, materials

ISO 14050 Terms and defi nitions—relating to the environmental management

ISO 14060 Product standards relating to their environmental performance

ISO 18001 Occupation health and safety

ISO 19011 Auditing 14000 and 9000 (together with ISO 14010)

332 ◾ Green IT Strategies and Applications

ISO 14001 An ISO 14001 standard provides basis for certifi cation or an organization in terms of creation and implementation of Green IT strategies, metrics, reporting, and continuous improvement. Ā is certifi cation is provided after the organization claims to have implemented the standard and, sub- sequently, results from formal Green IT audits. Ā e frequency of such audits would be based on site complexity and past performance. External, formal third-party audits conducted by the ISO 14001 and OHSAS 18001 auditors are complemented by the regulatory compliance evaluations that may be conducted internally by the company. Nonconformance to t he environmental poli- cies a nd standards a re required to b e reported, a nalyzed, a nd corrected. ISO 14001 compliance provides a s trong basis for setting up and continuously improve the environmental management systems of t he organization—particularly a s t he origins of t his s et of s tandards a re on a v olun- tary ba sis r ather t han a l egislative ba sis. C ertifi cation to ISO 1 4001 s tandard, h owever, i s o nly one aspect of environmental compliance. Other areas of an organization for compliance with the environmental requirements include metrics, people, processes, and technologies that are all com- plimentary to the ISO compliance. Ā e ISO 14001 standard comprises of fi ve sections each with a diff erent purpose. Ā ese are highlighted with respect to t he Green IT eff ort of an organization in Table 10.3.

ISO 14001 a ccreditation re quires t ime a nd b udget to a chieve. A n o rganization s eeking suc h accreditation needs to implement all aspects of the standard. Ā e implementation should then be fol- lowed by formal audits. Although a costly exercise at this stage of the environmental domain, the audit costs are more than off set in the long run due to both resource effi ciency as well as compliance.

Ā e ISO 14064 standard relates to existing GHG schemes of the World Business Council on Sustainable De velopment G reenhouse G as P rotocols. P roviding a ba sis fo r t raining p rograms, knowledge, a nd u nderstanding, t he ISO 1 4064 s tandard h elps o rganizations to q uantify a nd manage their GHGs. Furthermore, legal and regulatory bodies can use ISO 14064 for determin- ing carbon emission limits and quantifying them for organizations to undertake specifi c actions or activities that improve green management. Guidance on inventories, quality management, report- ing, i nternal aud iting, a nd verifi cation can be obtained from ISO 14064. Employee knowledge and i nnovation p rocesses a lso i ncrease t hrough t raining p rograms a nd re cognition o f e ffi cient practices in the industry (Staib 2005).

Coupled w ith t he a forementioned s tandard i s t he O HSAS (occupational h ealth a nd s afety standard) ISO 1 8001. Ā is s tandard a lso h elps a ddress s pecifi c o perational c ontrols, i ncluding energy management, chemical management, waste minimization, ergonomics, and safety.

Finally, the ISO 19011 set of standards provided the basis for audits of the ISO 14000 standards. Audits of the environmental performance of organizations are discussed later in this chapter.

Government Initiatives Compelling Regulation As mentioned earlier in the introduction, compliance requirements for carbon emissions by busi- nesses is going to drive new and formal carbon metrics and measurements (Unhelkar and Philipson, 2009). Ā e standards discussed earlier provide a framework for carbon initiatives, and legislation complements these standards. Ā e legal and regulatory nature of the carbon compliance require- ments are best fulfi lled by adopting a standard, implementing reliable metrics and measurements.

Green Compliance ◾ 333

Accuracy in the method of collection and analysis of carbon data and audits provide the proof of environmental performance.

Ā ere are number of such requirements that are regulatory in nature and that make it obliga- tory for the organization to comply with the emission limits. An example to consider in terms of such regulatory requirements is the inclusion of more 1,000 Australian businesses under the man- datory reporting requirements for carbon emitters above 150 kT (kilo tonnes) per annum (NGER 2009). Another example is the American Clean Energy and Security Act that was passed to reduce emissions by 17% in year 2020 (compared with 2005 levels) and around 80% by 2050 (this legisla- tion is yet to reach a vote in the Senate). Ā e EU also has a mandatory target of a 20% reduction in GHGs by 2020 (compared with 1990)—with particular emphasis on the cap-and-trade EU emis- sions trading scheme (EU ETS), that covers major emitters of CO2. Finally, the U.K. government has also passed legislation in November 2008 that aims to achieve emissions reduction of at least 26% by 2020 and 80% by 2050, against a 1990 baseline.

Table 10.3 Components of the ISO 14001 Standard and Their Relevance to Green IT Strategies

Section Relevance to Green IT Strategies

Policy Defi ning the environmental objectives of the organization (based on the drivers, and their combination)

Planning The economic, process, technology, and people factors required for the green organizational transformation

Identifi cation of the legal requirements and an approach to comply with them

Environmental risk assessment

Environmental intelligence repository (availability, budgets, etc. for CEMS and existing systems upgrade)

Product/service lifecycle assessment

Implementation and operation

Implementing environmental intelligence (EI) through CEMS

Integration with existing ERP and related company systems

Education and training programs for people

Communication at all levels of management

Potential HR changes (e.g., to company’s organizational chart)

Checking and corrective action

CEMS—measure, monitor, and mitigate

Compliance audits

Process optimization and maturity

Management review

Reporting—internal and external

Continuous improvement

Monitoring external changes to drivers

Monitoring internal changes to factors infl uence carbon performance

Strategies for monetizing in future

334 ◾ Green IT Strategies and Applications

Ā ese legislations, transcending economic and regional boundaries, indicate that not only do the b usiness l eaders n eed d ata for justifying t heir o wn a ctions i nternally, b ut a ccurate, re liable, and audited carbon data are required to be incorporated in external legal frameworks mandating regulatory compliances. Furthermore, these legal requirements on carbon emissions are likely to grow a nd a re expected to b e embedded w ithin other legislation, including t hose d ictating share market trading and currency exchanges. An example is the possibility of a Sa rbanes–Oxley style legislative change that would pin compliance and reporting requirements of carbon emission of an organization on its corporate leadership.

As the legal framework around carbon emissions matures, and with the likely move to carbon off sets and trading of c arbon cre dits a mongst businesses, t here i s a n e ven g reater need for stan- dardization a nd a ccuracy o f c arbon d ata. A s t he p revious fe deral t reasurer o f A ustralia, P eter Costello (2009) notes, “Ā ere will be an exchange (like a stock exchange) to buy and sell permits and a derivatives market to allow investors to hedge. Ā ere will be a daily carbon price. And price movements i n t his new c ommodity w ill govern electricity prices a nd re ach i nto d aily l ife much more than oil and petrol rises.”

Maturity and trade in carbon credits is likely to result in stringent re quirements o n c ollection a nd rep orting o f c arbon data, bringing it in line with the requirements of fi nancial reporting fo r t he s tock m arket. R equirements fo r m andatory

disclosure of the company’s carbon performance, along with inclusion in annual fi nancial reports are likely in the near future. It is also reasonable to expect invoices for energy-consuming goods (such as a computer monitor, TV, or a photocopier) to carry not only the price of the goods, but also the carbon emitted in the development and production of the goods.

USA Energy Star—1992 Energy S tar i s a v oluntary l abeling p rogram de signed to i dentify a nd p romote en ergy-effi cient products (Brown et al., 2002; Johnson and Zoi 1992; Pradhan 2011). Ā e ISO 14024 standard pro- vides the basis for creating the environmental labeling of products. Ā e Energy Star rating system is implemented by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). Ā ese Energy Star labeled products have potentially saved billions of dollars over the last decade by enabling energy-conscious decisions, especially by large businesses in procuring and o perating p roducts. R ecently, E nergy S tar s tandards a nd r atings fo r c omputer s ervers h ave also been announced (Energy Star, May 2009) that would provide additional boost in informed decision making by data center directors or large organizations.

EPEAT—Electronic Product Environmental Assessment Tool EPEAT certifi cation is a means of standardizing electronic goods in terms of their environmen- tal p erformance. M ade u p o f 23 m andatory a nd 28 o ptional cr iteria, E PEAT p rovides i nfor- mation that is invaluable in setting up ongoing, large-scale IT procurement programs. Ā is is particularly of value to the procurement functions of large corporations and government agencies. EPEAT-based l abels on P Cs a nd products en able de velopment of procurement p olicies t hat a re measurable through KPIs in practice. For example, a U.S. presidential executive order mandated federal agencies to ensure that at least 95% of all technology purchases were meeting the EPEAT

Energy Star (1992) and EPEAT (2006) pro- vides means to identify product’s carbon effi ciencies.

Green Compliance ◾ 335

certifi cation. L ater, a s p er W eiss ( 2007), t his o rder w as a lso a dopted b y m any s tate a nd l ocal governments.

EU RoHS—Restriction of Hazardous Substances Regulations Restriction of Ha zardous Substances (RoHS) regulates hazardous substances, including t he one that are used in computer and mobile manufactures. Ā is legislation was passed by the European Union ( EU) i n 2 006, s etting a l ist of cr iteria t hat l imited t he a mount of h azardous subs tances that c an b e i ncluded i n n ew e lectronic a nd e lectrical e quipment ( European Union 2 009). Ā is restriction w as a imed to en sure s afety of u sers a nd e ventually of p eople i nvolved i n d isposal of these e quipments—as h azardous m aterials a re re quired to b e h andled i n b oth p roduction a nd disposal.

Ā is legislation provides an interesting challenge, especially for small businesses, as these busi- nesses are geared for production without the stringent requirements of RoHS. Ā e contradictory needs between environmental and business are particularly felt by these small manufacturers who have been or aspire to export to the EU. For example, low-lead products that meet RoHS restric- tions may reduce the long-term reliability of a product. Ā is would, in turn, aff ect the price and the sale of the product. Low-lead products are also meant to be socially responsible, as it is believed that lead interferes with the development of the brain and nervous system, especially in children. Ā is n ew l egislative f actors a re b rought i n t he m ix b y b usinesses a s t hey cre ate a nd i mplement Green IT strategies.

EU WEEE—Waste Electrical and Electronic Equipment Regulations WEEE aims to reduce the amount of e-waste that occurs at the end of an equipment lifecycle. Ā us, while the RoHS legislation is particularly aimed at reducing hazardous materials in the pro- duction p hase o f el ectronic good s, W EEE l egislation bec omes active during the disposal phase. WEEE dictates limits and methods for d isposal of electronic waste (e-waste) a nd includes many a lternatives suc h a s reu se, re covery, re cycling, a nd t reat- ment of the disposable wastes. Ā e WEEE regulations deal with separate collection, disposal, and recycling; standards for e-waste treatment at authorized facilities; and collection, recycling, and recovery targets (Murugesan 2008). Ā is legislation also makes manufacturers of electrical and electronic equipment responsible for environmental impacts of their products (NetRegs 2008).

Industry and Vendor Initiatives Apart f rom t he g overnment l egislations, t here a re a lso i ndus- trial c onsortiums fo rmed b y l ike-minded o rganizations. Ā es e industry i nitiatives a lso g o a l ong w ay i n re ducing c arbon

As reported by Weiss (2007), Apple claims to have applied environmental consider- ations in using recyclable materials and by reducing the amount of packaging needed by as much as 59% for the fi fth-generation iPod (Weiss 2007). The organization has also promoted recycling by exchange offers where customers return old iPods to get dis- count on new purchases. Similarly, Dell has worked to create energy-effi cient OptiPlex desktops that are 50% more energy-effi cient than similar systems manufactured in 2005. Hewlett-Packard recently claimed its rp5700 desktop PC exceeds U.S. Energy Star 4.0 standards and has 90% of recyclable mate- rials (Kurp 2008). Apart from developing products that consume less power and emit reduced carbon, organizations like Google and Microsoft also strategize for infrastruc- ture that would reduce its total carbon cost of ownership (TCCO). For example, Microsoft has built a data center consuming approximately 27 megawatts of energy at any given time in central Washington which is powered by hydroelectricity produced by two dams in the region (Kurp 2008).

336 ◾ Green IT Strategies and Applications

emissions—and much before t he regulatory requirements c ome i nto play. Vendors of I T good s and services also get together to mutually agree on targets for emissions. Some of these initiatives are discussed next.

Green Grid—2007 A global consortium of IT vendors, including AMD, Dell, IBM, Sun Microsystems, and VMware, formed a nonprofi t group named the Green Grid in February 2007. Ā e aim of this consortium was to defi ne and propagate energy effi ciency practices in data centers and IT systems (Murugesan 2008). Ā e Green Grid collaborates with companies, government agencies, and industry groups to provide recommendations on best practices, metrics, and technologies that will improve IT energy effi ciency (Kurp 2008).

CSCI—Climate Savers Computing Initiative Started by Google and Intel in 2007, the CSCI is a nonprofi t initiative of eco-conscious consum- ers, b usinesses a nd c onservation o rganizations ( CSCI 2 009). Ā e goal of CSCI is to promote development, deployment, and adoption of energy-effi cient computers in active and inactive state. CSCI ( 2009) s tates t heir m ission a s re duction o f g lobal C O2 em issions b y 5 4 m illion to ns p er year and reduction of power consumption by 50% by year 2010. Ā e committed participants are expected to save approximately U.S. $5.5 billion in energy costs (CSCI 2009).

IT Vendor Initiatives Vendors o f good s a nd se rvices ha ve a lso cr eated t heir o wn i nitiatives fo r r educing t he c arbon impact of their activities.

Global Reporting Initiative Ā e Gl obal R eporting I nitiative ( GRI) ( www.thegreenitreport.com) is pi oneering t he d evelop- ment o f a su stainability rep orting f ramework. GR I a ims to m ake t he d isclosure o n e conomic, environmental, a nd social performance a s c ommonplace a nd c omparable a s fi nancial reporting. Ā e environmental, fi nancial, and investment aspects of an organization are thus brought together and certifi ed. Starting in 2010, GRI certifi es software and digital tools and technologies within a Sustainability Reporting Framework.

GRI h as s tated t wo g oals for t he next de cade. Firstly, environmental so cial a nd g overnance (ESG) rep orting sh ould b ecome a g eneral p ractice to h elp m arkets a nd so ciety t ake i nformed and responsible decisions. GR I advocates that by 2015 all large and medium-sized companies in OECD countries and fast-growing emerging economies should be required to report publicly on their ESG performance. And secondly, ESG reporting and fi nancial reporting needs to converge over the coming decade. GRI advocates that a standard for integrated reporting should be defi ned, tested, and adopted by 2020.

Green Compliance ◾ 337

Green IT Audits Having d iscussed s tandards, l egislations, a nd va rious i nitia- tives in the Green IT and environmental sustainability domain, this section now discusses the Green IT audits. Such audits, a s part of the overall audits of an organization, provide systematic assessment o f t he o rganizations s tructure a nd o perations t hat ascertain t he va lidity o f i ts g reening e ff ort. A s a re sult, G reen IT audits a lso provide a j ustifi ed means to i mprovement of t he carbon pe rformance. Ā is is so because such Green IT audits are i nvaluable i n providing i nternal re liability to t he c orporate board in terms of the return on investment (ROI) on Green IT investments. Externally they provide legitimacy to the reporting and t he c laims to g reening m ade b y t he o rganization. F ormal green aud its va lidate t he c laims o f t he o rganization, t hereby addressing the possible accusations of greenwashing.

Green aud it a ssess a c ompany’s en vironmental cre dentials and i ts c laims fo r g reen p roducts a nd s ervices. F urther, suc h audits c an a lso determine whether t he c ompany’s supply chain and/or product line can be accepted as truly environmentally sustainable. Ā ese audits carry more value and legitimacy if they are carried out by recognized independent auditors. Ā e ISO 19011 standard provides basis for auditing of green systems.

Green aud its a re very c losely a ssociated w ith metrics a nd measurements (discussed i n de tail in Chapter 3). Green audits primarily validate that whatever is being reported in terms of carbon emissions is accurate and suffi cient. Green audits can also suggest areas for improvements in the organization’s compliance with standards as well as legislations. Ā us, green metrics and measure- ments (also k nown a s c arbon m etrics) n eed va lidation t hrough aud its to p lay a p ivotal ro le i n reducing the carbon footprints of businesses.

Ā e justifi cation and reporting of carbon data are not only an external compliance mechanism. Internally, the chief executive offi cer (CEO) of an organization is easier to convince and, in turn, is able to convince the Board to undertake carbon initiatives provided the business case is supported by audited metrics. Green audits can cover the regularity accuracy, calculations, analysis, report- ing, and storage of carbon emission data. Such validated data analysis can ascertain the Green IT readiness and maturity of an organization, that of its corresponding industry and even at a global level (Unhelkar and Philipson 2009). Ā is need of businesses to have reliable carbon data need to be supported by new metrics and measurements that are being invented rapidly and standardized across the industry. Audits prove the validity of concrete carbon measures that enable comparison, justifi cation, and optimization of an organization’s green credentials.

Everything that can be measured within Green IT is not necessarily a good “indicator” of the greenness of the organization. Furthermore, everything that needs to be measured is not necessar- ily easy to measure. When a c omplex activity is measured by aggregated single statistics, there is possibility of information loss (Sharif 2010). Green audits enable an understanding of the value of the metrics (indicators) and also their accuracy.

Green metrics enable an organization to comprehend how much of carbon is being gener- ated by the business activities and, even more importantly, the use of standardized and detailed measurements to do so. Ā e challenges to these measures stem from the fact that currently many emissions g et o mitted, o thers g et do uble c alculated (see S cope 3 em issions d iscussed e arlier) o r

Green IT audits are formal, independent verifi cation and validation of the carbon performance and carbon reporting of the organization. With increasing legislative demands on carbon reporting, these Green IT audits play a vital role in establishing the Green claims of the organization. Auditing of CEMS is a part of these audits. Most importantly, though, Green IT audits are likely to become audits in real time—that is, every carbon reporting and carbon related transaction will be audited through an inde- pendent module of the CEMS itself—that is owned and controlled by the auditors. Internal and external audits have slightly different roles to play in terms of carbon emissions reporting—internally, they pro- vide the confi dence to the decision maker on her investment in the Green project, and externally, they provide the legal backing required of any formal reporting of data.

338 ◾ Green IT Strategies and Applications

confused with other factors (Unhelkar 2009). Green audits divide the emission measurements into appropriate s ections a nd t hen va lidate t hem. I n a ddition to va lidating t he c arbon numbers a nd results, green aud its a lso point out additional a reas for measuring c arbon data. Ā ere fore, green audits rightfully delve into the current fi nancial, inventory, and HR systems of the organization. Green audits investigate the fi ve areas of green metrics. Ā e se fi ve areas of green metrics, as dis- cussed in Chapter 3, are measure, monitor, manage, mitigate, and monetize. Each aspect of these measurements needs to be verifi ed and validated in a green audit as follows:

Measure—What is being measured? Is that measurement suffi cient for reporting purposes? ◾ Are there additional areas of carbon data that should be included in the measurements? Monitor—What i s t he m echanism to c ollect t he d ata? W here a re t he m eters l ocated? ◾ Suffi ciency and accuracy of monitoring mechanisms. Manage—Validate the feedback and management mechanisms of carbon data, information, ◾ and a nalysis. Ā e c arbon m anagement, g overnance s tandards, p rocesses, a nd c ontrols a re audited in this area. Mitigate—Is the measurement and reporting of carbon data also being used to re duce the ◾ emissions? What are the systems in place for carbon mitigation and how well they are oper- ating? Ā e audit in the area of mitigation will be mainly of interest to the internal stakehold- ers of the organization, but will have external eff ect. Monetize—Audits of the monetizing aspects of carbon data will be of immense regulatory ◾ interests a s t he businesses move toward c arbon e conomy. A bility to t rade c arbon re quires accuracy and authenticity of systems that enable that trade. Ā erefore, external parties are heavily involved—regulators, traders, partners, and those investing in the carbon future.

Green audits traverse the entire ga mut of organizational activities that play a direct or indi- rect role in reducing the carbon footprint of a b usiness. For example, carbon usage by end-users of a ba nk (e.g., its employees and online users) needs to b e mapped to t he carbon measure of its data center to ascertain the level of usage in a day, month, or year. Ā ese data can be further cor- related w ith t he product a nd supply lifecycles of t he ba nk t hat c an give insight into t he t ype of monitors, machines, and other building infrastructure that is aff ecting the bank’s environmental performance. Ā ese metrics will eventually be captured and analyzed in CEMS—requiring audits of t he d ata, a nalysis, a nd rep orting o f a ll o f t he a forementioned a ctivities a nd t heir m easure- ments. A nother example of a g reen audit investigation is the power bill depicting the amount of electricity consumed by the organizations activities. Green audits will investigate the accuracy of this power bill is thus ascertain the accuracy of the Scope-2 carbon emissions calculations of the organizational c arbon footprint. A g reen audit will ensure t hat t he power bill is a c omplete a nd comprehensive measure of that particular scope of the emissions.

Following are the specifi c advantages in undertaking Green IT audits within organizations:

Validation of entire organizations asset register from a carbon emissions perspective. ◾ Formalization o f m etrics a nd a ssociated m easurements re lated to c arbon p erformance o f ◾ an organization, particularly at the end-user and the data center level where the maximum carbon is being generated. Validation, internally of cost-benefi t calculations that demonstrate the ROI on green initia- ◾ tives to c orporate governance board a nd t he shareholders on indexing of c arbon measures with fi nancial performance of the organization. Cross-check on smart meters used for automatic reading and display of carbon data. ◾

Green Compliance ◾ 339

Stocks take of t he sk ill set, experience, a nd necessary expertise w ithin t he organization to ◾ put together a Green IT measurement and optimization program. Ratifying the agreement among the organizations stakeholders as to what should and should ◾ not b e i ncluded w ithin c arbon em issions c alculations. ( For e xample, t he S cope 1, 2 a nd 3—as categories of carbon emissions—are still not standardized.) Validation of the calculation on electronic waste and its disposal (for additional information on ◾ comparative standards, please see excellent discussion by Donallen (Piccoli 2009)—the matu- rity section there discusses the mapping between the erstwhile CMM levels with Green IT). Adequacy of p olicies a nd practices i n a ddressing t he c omplete a nd c omprehensive c arbon ◾ footprint of an organization. Ā e overall carbon footprint of an organization includes pro- curement, disposal, and operational emissions. However, the current measures and regula- tions g overning t hose m easures a re p rimarily fo cused o n o perational c arbon. A udits c an reveal the need for comprehensive coverage in measuring the overall carbon footprint. Being part of the value proposition for business through its green initiatives both internally ◾ and externally. Assist in objectifying (making explicit) the other tacit attitude and viewpoints of participat- ◾ ing employees and management in measuring the green credentials of the organization. Reducing the confusion and, perhaps, duplication of calculations that may occur in a collab- ◾ orating group of partners (particularly true with outsourced projects). Provision of relative benchmarks from audit to audit. ◾ Validating the measuring of degree of sophistication or maturity. ◾

Audit Types Figure 10.1 shows the various elements and types in a Green IT audit. Ā is fi gure a lso sh ows t he va rious ke y s takeholders a nd their i nterests i n Green I T aud its. A s shown i n Figure 10.1 on the left the following aspects of the collection and use of carbon data needs to be audited during green audits:

Data c ollection mechanisms and c orresponding g adgets/ ◾ meters—A wide array of smart meters that read emission, measurement p latforms, fo r t hose em ission, t heir m oni- toring and inventory systems, come into play to meet the basic carbon emissions measurement requirements. Ā es e had to be checked for accuracy of their readings. Data a nalysis u ndertaken b y s oftware s ystems ( typically ◾ CEMS)—Totals, av erages, a nd d istribution o f c arbon data, i ncluding t hose b y t he b usiness pa rtners re quires to b e aud ited. S tandards a nd m etrics p lay a m ajor ro le i n facilitating CO 2 c omparisons. C ommon s tandards a nd accepted baselines, defi ned in advance, need to be audited for their accuracy and validity. Ā is audit, for example, may include a w alkthrough o f t he so ftware a lgorithm u sed i n totals for em issions p er a sset, p er depa rtment, a nd for t he organization.

Green IT audits are required to verify and validate the data collection mechanisms such as the smart meters, the underlying analysis of that data (such as comparison with the permitted limits per day, per gad- get, or per person), carbon trends (such as expected carbon generation this year, next year and if the business doubles its produc- tivity) and eventually the reporting on car- bon compliance by the organization. Green metrics and measurements used for this purpose need to be validated themselves.

Measurement systems must be devel- oped that can establish baselines and mea- sure carbon storage and emissions changes on various scales, from individual machines to large processes of the business.

According to Richard Simpson, the direc- tor general of the electronics commerce in Industry in Canada, “ICT’s crucial role in economic recovery is the key to unlocking the opportunity of Green growth” (www. oecd.org).

The advanced ICT technologies and techniques such as SOA, web services, mobile technologies, semantic networks, Cloud computing, IMS can play an impor- tant role in the development of monitoring and measuring emission tools.

340 ◾ Green IT Strategies and Applications

◾ Carbon trends—Plotting of the carbon trends, their accuracy and re liability w ill b ecome i ncreasingly i mportant a s t he world m oves to ward a c arbon-based e conomy. Ā is trend analysis i s a pa rt o f t he en vironmental i ntelligence o f t he organization, a nd de cisions ba sed o n E I w ill b e a s v ital a s those based on BI. An audit of the trend-plotting and intelli- gence mechanism relating to the environment is mandatory.

Carbon compliance—Ā is, as described in this chapter, is a cr ucial aspect of green audits. ◾ Both internal and external auditing parties are involved in ensuring that the organization is indeed complying with the limits set for emissions by the regulatory bodies.

Figure 1 0.1 a lso sh ows t he p rimary s takeholders w ho a re i nterested i n t he a reas o f aud its described above. Ā ese stakeholders are as follows:

Individual users—Mainly interested in providing input into the data collection mechanisms. ◾ While users can span many diff erent aspects of an organization, the individual users referred to here are mainly the staff and the customers who would access the organization’s IT assets. Departmental heads—Particularly interested in the analysis provided by the software sys- ◾ tem (CEMS) de aling w ith c arbon d ata. Ā is analysis would show to a business unit or a department clearly the amount of carbon generated by its activities as well as potential carbon s avings re sulting f rom t he g reening e ff ort. Audits of CEMS will be of immense interest a nd b enefi t to t hese depa rtmental h eads a s t hey w ill n ot o nly rep ort t he c arbon performance of t heir depa rtment but a lso a llow t hem to t ake decisions t hat c an i mprove that performance. CEO/chief green offi cer (CGO)—Ā ese leadership roles are interested in a ll aspects of the ◾ Green IT audits, but particularly in the environmental intelligence aspect of the organization.

Mitigation deals with reducing the car- bon footprints of a business by identify- ing ways of operating more effi ciently and thus reducing the costs and CO2 emissions. Monetizing is poised to take advantage of the opportunity to trade carbon cred- its in future—should such legislations be implemented.

Legal/External Audits V&V Regulatory

Compliance

Green IT Audits: Mapping Stakeholders to Carbon Data Usage

Internal Audits further V&V All Systems & Correlations

System Audits Validate & Verify

Analysis (support Business Units)

Meter Audits Verify Accuracy of Data

Data Collection Meter

CEMS

EI

Reporting (EI+

CEMS)

Data Analysis

C ol

le ct

io n

& U

se o

f C ar

bo n

D at

a

Carbon Trends

Carbon Compliance

Individual (User)

Manager (Dept. Head. Enviro. Mgr)

Green IT Audit—Stakeholders

Leader (CEO/ CGO)

Regulator (Lawyer, Auditor)

Figure 10.1 Various elements and types in Green IT audits and their relevance to roles.

Green Compliance ◾ 341

Ā us, c oordination b etween s ystems a nd d ata, a nalysis of t hat d ata, a nd E I-based i ndica- tions of the future will be of immense interest to the CEO/CGO. Regulators—Ā ese a re primarily external pa rties that want to de termine the accuracy a nd ◾ validity of carbon data reporting as undertaken by the organization. Almost all future car- bon rep orting w ill b e ba sed o n so ftware s ystems a nd ap plications. Ā erefore, t he i nterest of the regulators is ensuring the accuracy of the data, its recording period and possibly the actions undertaken by the organization to ensure its emissions stay within limits.

Ā e aud it c ategories a nd s takeholders t hus h ave a va rying m ix o f i nterests, a s sh own i n Figure 10.1. Ā e Trivedi and Unhelkar (2010) survey, based on the above mix, tried to identify the importance of some aspect of the carbon data and its audits. Ā e results are shown in Figure 10.2.

Results in Figure 10.2 show that

Well-documented m odel fo r c arbon em issions t hat c an b e aud ited i s p opular ( agree to ◾ strongly agree) with about 35% of the respondents. Ā is also indicates that for many respon- dents, such a model did not exist. Regular u pdates a nd m odifi cation o f e nvironmental p arameters is oc curring w ith abo ut ◾ 40% of the respondents (agree to strongly agree). Ā is should be envisaged as a manual pro- cess with entrée of carbon data particularly undertaken manually (as was validated through person queries with some of the respondents). Ā ir ty-fi ve p ercent a greed a nd 14% s trongly a greed fo r a n eed fo r s tandard ap proach to ◾ accessing government rules and regulations and mentioned that as an important part of the green initiative in their organizations. Ā irty-four percent replied “neutral” to this query on the need and ability to provide feedback ◾ to the government on carbon emission. Ā is number indicates that there is still a signifi cant amount of uncertainty in terms of what is to be calculated, how it is to be reported, the fre- quency of reporting and the skepticism on how the regulatory authorities will use the data.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Well documented model for carbon

emissions that can be audited

Regular updates and modification of environmental

parameters

Standard approach

to accessing government rules

and regulations

Provides feedback to the government

on carbon emission

Periodically checks environmental

documents of the vendor

Strongly Disagree Disagree Neutral Agree Strongly Agree

Figure 10.2 Carbon compliance audits.

342 ◾ Green IT Strategies and Applications

Periodically checks environmental documents of the vendor—here too, “neutral” response ◾ (30%) was greater than any other option (agree—26%; strongly agree—7%). Ā is response could be again based on the uncertainty of the need to go beyond the organizational bound- ary and checking/auditing the vendor documents and credentials.

Green IT Audits—Approach, Maturity, and Comparison Auditing of Green I T c an b enefi t by a n i ntegrated model t hat provides t he ba sis fo r u ndertaking t he aud its. S uch a m odel would bring together the steps, dimensions, maturity, and areas of audits, as discussed next.

Undertaking Green IT Audits Figure 10.3 reveals the overall integrated approach to Green IT audits. Ā is fi gure can be consid- ered as an integrated framework for conducting Green IT audits. Ā e core areas of an organization that need to be audited as discussed earlier, are the data, analysis, compliance, and potential trad- ing capabilities. As shown in Figure 10.3, these core areas apply to the various systems (including CEMS), pa ckages (such a s E RP pa ckages) a nd su rveys (such a s t hose u sed i n a scertaining t he attitude of users toward Green IT).

Ā e known quality techniques of walkthroughs, inspectors, reviews, and audits can be applied in undertaking audits. Ā ese well-known quality techniques have been used for verifi cation and validation o f s oftware sys tems, m odels, a nd b usiness p rocesses. Ā e fo llowing a re t he w ays i n which they can be applied to green audits:

Walkthroughs ◾ —may be individually performed, to identify basic emissions data relating to an i ndividual o r a depa rtment. Walkthroughs c an a lso b e c onducted o f t he C EMS a lgo- rithms that are used in calculating the emissions data. Inspections ◾ —are more rigorous than walkthroughs and are carried out by a person or party who is not the original producer of the artifact. Ā us, while the Green IT auditors will carry out the inspections, the staff responsible for smart meters and other gadgets used in collect- ing data, as well as those responsible for the processes for storing, reporting, and managing carbon data will provide the necessary information, and answer queries. Reviews ◾ —go beyond walkthroughs and inspections, and formally verify and validate a pro- cess. In the Green IT domain, reviews are conducted by both internal and external auditors. Reviews would require preparation beforehand of the areas to be reviewed—such as systems, databases, equipment lifecycle, and wastage disposal processes. Reviews also encompass ver- ifi cation and validation of the accuracy and effi cacy of the governance processes and meth- odologies, and also cover economic and social dimensions. Audits ◾ —very formal, both internal and external to the organization. Green IT auditors will be i nvited or may enter t he organization to c onduct formal aud its of t he c arbon d ata c ol- lection, analysis, and reporting. Audits cover all work areas and all four dimensions. Audits can make use of the aforementioned quality techniques of walkthroughs, inspections, and reviews. At the end of the auditing process, a formal report is prepared to present and discuss the outcomes. Whenever carbon benchmarks or limits are transgressed by the organization, they a re pointed out by t he aud itors. A ppropriate actions a re a lso d iscussed a nd a p lan to

An integrated model for Green IT audits includes steps required in the audit, the vari- ous dimensions of an organization that need to be audited, ascertaining the Green IT matu- rity of the organization and the various areas within the organization that will be audited.

Green Compliance ◾ 343

undertake them is highlighted during the audits. Ā e review and audit phases of GET were discussed in the previous chapter in the transformation process.

Audit and Use of Carbon Emissions Management Software An important aspect of the Green IT audit function is the verifi cation and validation of the proper functioning of the CEMS. CEMS, as was seen earlier in Chapter 3, is increasingly used to manage the measurements and reporting of carbon performance of an organization. Ā e development of such a system was also discussed in Chapter 7 later in this book. Audits of CEMS require parties that are internal and external to the organizations to participate in the V&V of the system.

A typical CEMS is meant to help an organization manage its energy consumption by accurately recording, analyzing, and reporting on the carbon data. Ā us, CEMS is also responsible for reduc- tion and management of carbon emissions and help an organization meet its environmental goals. Is the CEMS used by the organization doing so? And how accurately and quickly is the CEMS able to report on carbon data. Furthermore, how helpful is the CEMS in helping the decision makers of the organization identify and understand energy consumption patterns of the organization?

Auditing a CEMS requires attention to the following:

Accuracy of the data captured by the system—in terms of the data capture techniques such ◾ as smart meters and also manual data entry Security and ease of storage of carbon data—in a data warehouse hosted on a physical server ◾ Security and ease of retrieval—with an investigation into any potential breaches of security ◾ of carbon data Validity of analysis and trend creation—by the systems using the carbon data ◾ Frequency and reliability reporting of emissions and related information—to the regulatory ◾ bodies—typically using web services

Green IT Audits

Audit Dimensions

Major Areas of Green Audit

Ascertained Sophistication Replicable; Defined;

Managed; Optimized

CEMS; Green IT Metrics; Power Bills; ERP/Finance

Systems; EI; Attitudes

Economic Technical Process Social

Audit

Data

Analysis

Trend

Compliance

Review

A ud

it (T

ec hn

iq ue

s) –r

an ge

o f e

ffe ct

Inspection

Walkthrough

CEMS

Replicable Green IT Maturity

Defined Managed Optimized

Power Bills

Surveys

Ar ea

s ( Sy

ste ms

) to A

ud it

(C ov

era ge

of G

ree n A

ud it)

1. Exploring 2. Verifying 3. Validating 4. Optimizing

ERP/Finance Systems

Figure 10.3 An integrated model for auditing Green IT systems.

344 ◾ Green IT Strategies and Applications

Ease and accuracy of updating environmental parameters that drive CEMS—these are the ◾ parameters that are used in confi guring the system such as type of pollutants to measure, frequency of measurement and frequency of access to web service interfaces Interfaces to t he government regulatory portals using web services—audits verify the easy, ◾ accuracy and frequency of access and reporting Environmental compliance by vendors and other business partners—audits check the valid- ◾ ity of compliance claims outside of the organization Use o f C EMS i n t he aud it f unction i tself—audits n eed to va lidate a nd v erify t he u se o f ◾ CEMS as a system for audit, as the software itself is used to perform certain audit functions by using the internal controls to total, report, and compare carbon emissions

Comparative Audits Audits provide an organization with a feedback on its current performance as well as Green matu- rity. Ā e results of audits will enable an organization to understand where it stands on the Green CMM scale (as was discussed in Chapter 3, Figure 3.17). Audits can be conducted to ascertain the “as is” state of an organization. Ā ey can also be conducted to verify whether the “to be” state, the desired Green state, has been achieved or not by the organization. [Ā is is shown in Figure 10.4.]

Reports on the results of a properly conducted Green IT audit will also enable an organization to understand its strong and weak areas, and thereby help it in its ongoing optimization eff ort by enabling selection of right projects within its transformation programs. Ā e various focus areas of GET, discussed in Chapter 9, can also benefi t by the Green IT audit, as it validates the eff ect of transformation on those focus areas.

Conclusion Ā is chapter started off with the various international conventions and summits on climate change and the ensuing impact on environmental sustainability of businesses. Ā e most important stan- dard in this domain is the ISO 14001 standards, which was discussed as a means to environmental

Note: Metrics and Measurements can be applied individually along all four dimensions of Green Enterprise

Transformation; Subsequently, they can be combined into a Single Measure of Green IT

Maturity

Green IT Audits

Hard Indicators

Economy Ideal State

Green IT Dimensions Technology

Economy Social

Process

Degrees of Green IT Sophistication (Using a Nine-Point Overlapping Scoring Scale) Replicable Primitive

Score: 1-2-3

Defined Operational Score: 3-4-5

Managed Strategic

Score: 5-6-7

Optimised Collaborative Score: 7-8-9

Pre GET Post GET

P

S

E

T

Technology

Social

Process Soft

Indicators

Figure 10.4 Audits reveal green sophistication of an organization before and after transformation.

Green Compliance ◾ 345

management in an organization. Standards like these and also labeling standards such as EPEAT go a l ong w ay i n p roviding a c ommon g round fo r u nderstanding w hat b usinesses a re do ing i n terms o f u ndertaking c arbon re duction i nitiatives. Ā is c hapter fi nally m oved to ward a n i nte- grated approach to c onducting a nd reporting on Green I T aud its. Such Green I T aud its would validate and verify the accuracy, validity and use of carbon data.

Discussion Points Discuss t he re asons w hy t he C openhagen su mmit o n c limate c hanged f ailed to p roduce ◾ binding legislations. What are the possible diff erences in the way the fully developed nations view carbon emis- ◾ sions as compared with the developing nations today? What role does a standard like EPEAT play in reducing carbon footprints of large and/or ◾ government organizations? Discuss one industrial initiative in reducing carbon emissions. Outline, according to you, ◾ the c hallenges t hat t his ini tiative will f ace in p ractice a nd y our s uggestions o n h andling those challenges. What is the importance of ISO 14001 and related standards in an organization’s attempt to ◾ transform itself into a Green organization? What is a Green IT audit? List and discuss the purpose for conducting such Green IT audits. ◾ What a re t he d iff erences in a uditing ca rbon da ta co llection v ersus ca rbon tr end p lotting ◾ (using en vironmental i ntelligence)? D iscuss i n t he c ontext o f t he ro les i nvolved i n t hese carbon data and analysis usage. Discuss the audit techniques and audit areas based on your understanding of the integrated ◾ model for auditing Green IT systems. Compare t he de grees o f G reen I T so phistication ( based o n Figure 10.4) w ith t he G reen ◾ CMM sophistication.

Action Points Identify the key features of the UNFCCC summits that can apply to your organization ◾ Insert those features as a list of action items in your Green transformation plan ◾ Revisit t he protocols a nd re gulations d iscussed here—specifi cally c onsidering w hich of t hese ◾ will apply immediately to your organization (will depend on your geographical region as well) Apply the main features of ISO 14001 family of standards to your organization ◾ Identify t he rep orting re quirements f rom a l egal/compliance v iewpoint a nd u pdate yo ur ◾ Green IT strategy with the same Enlist t he mechanism you will use for carbon reporting (manual, electronic, t hrough web ◾ services, etc.) Setup a G reen I T aud it o f yo ur so ftware s ystems, d atabases, a nd ap plication (CEMS—if ◾ already ava ilable). Ā is G reen I T aud it sh ould b e ba sed o n t he f ramework fo r I T aud its shown in Figure 10.3 Conduct a pilot internal audit before undertaking full scale audits—internal and external ◾ Ascertain your organization’s Green IT sophistication on the scale provided in Figure 10.4: ◾ replicable, defi ned, managed, optimized

346 ◾ Green IT Strategies and Applications

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management system (EMS) (http://www.iso.org/iso/iso_14000_essentials.htm) Johnson, B. and Zoi, C. (1992). EPA Energy Star Computers: Ā e Next Generation of Offi ce Equipment. Paper

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1400186 Kyoto P rotocol. (2010). UNFCCC, R etrieved A ugust 16, 2010 fr om http://unfccc.int/kyoto_protocol/

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Cutter Consortium Business-IT Strategies Executive Report, 10(8). Murugesan, S. (2008). H arnessing G reen IT : P rinciples and P ractices. IT P rofessional, 10(1), 24–33.

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11Chapter

Emergent Carbon Issues: Technologies and Future

Everything comes to us that belong to us if we create the capacity to receive it.

Rabindranath Tagore

Key Points Outlines the futuristic carbon issues that will impact businesses along the four dimensions ◾ of economy, technology, processes, and sociology Discusses the changes in the business models expected in the new carbon economy ◾ Presents e xisting a nd u p c oming b usiness a nd e conomic t rends i n t he c ontext o f t he ◾ environment Relates Cloud computing and environmental intelligence ◾ Highlights the dichotomy between developed and developing economies in terms of carbon ◾ control Discusses the increasing role of social media networks in Green IT ◾ Discusses the role of GRID computing in environmental intelligence ◾

Introduction Green I T a nd t he en tire en vironmental su stainability do main a re m oving r apidly. B esides t hat, i t is a lso a re latively n ascent domain t hat re quires c ontinuous at tention a s t he speed of technological development i mpacts c arbon em issions a nd t he b usiness i n m any u nexpected w ays. Technologies increase em issions a nd t hey a lso cre ate p ossibilities o f re ducing t hem. O ne c an e asily pa raphrase David Kirkpatrick* when he says that “Ā e age of computing has barely begun”; in fact, the age of Green IT is yet to begin.

* Fortune m agazine’s s enior e ditor, i n Ā e Fut ure of C omputing ( http://money.cnn.com/magazines/fortune/ futureof_tech/).

348 ◾ Green IT Strategies and Applications

Ā is relatively short chapter tries to expand and imagine the future in the Green IT and envi- ronmental domain. Ā e purpose of this chapter is not to disseminate any specifi c hands on action, but rather consider the future possibilities in terms of both—generation and amelioration of carbon in business. Ā e four dimensions of economy, technology, processes, and people continue to p ro- vide t he backdrop for t his i maginative e xercise i n emergent c arbon i ssues. Ā e interesting a spect in envisioning t he c arbon economy i s t hat of c ontrolling c arbon w ithout stunting t he g rowth of technologies and businesses. For example, faster computer processors, higher storage capacities and communications at lightning speed are all dual-edged swords: they can increase carbon emissions due to the higher power consumption and, at the same time, off er opportunities to reduce carbon emissions due to i mprovement in technologies and optimization of business processes. Ā e refore, rapidly emerging technologies need to be explored in a creative and holistic way in Green IT.

Development o f n ew en vironmental s tandards, p otentials fo r n ew g lobal u nderstanding i n terms of protocols, development, and integration of new CEMS and positively shifting attitudes also form part of this interesting discussion. Ā e journey of exploring these new technologies and considering their application in Green IT is part of an innovative approach to understanding and handling t he ne w c arbon c hallenge. For e xample, a wareness of e merging t echnologies pr ovides the a rchitects of Green information’ portals to i ncorporate fl exibility i n new strategic d irection, innovative policies and procedures, and sound tactical development. Technologies such as XML, SOA, mobile services, collaborative web services across the industry verticals and with the regula- tory bodies, virtualization, and Cloud computing are all opportunities for innovativeness.

In a ddition to i nnovations i n t echnologies, t he bu siness mo dels t hemselves w ill u ndergo changes that will refl ect the emergent carbon economy. More than a decade ago, Siegel (1999), in Futurise your Enterprise, stated that “Over the next ten years, the Internet will drive changes in consumer behavior that will lay waste to all the corporate re-engineering and cost reduction programs that have kept so many MBAs and programmers burning the midnight oil.” Little did he imagine that impact of carbon on consumer behavior will be even greater, requiring remodel- ing and reimagining of business models to meet the carbon economy of this coming decade.

Ā us, t he f uture i n ter ms of Green I T a nd environmental su stainability i s t hus m ade up of emergent t echnologies, i nnovative pr ocesses, i nnovative bu siness mo dels, d emanding c ustomer preferences, synergetic standards, and new, positive social attitudes.

Future Carbon Landscape While there are many ways to v iew the future in Green IT, the four dimensions of Green IT transformed discussed earlier pro- vide a good basis for envisioning the future. Table 11.1 shows the future possibilities as examples in a summarized form.

Ā e future of Green IT is made up of multiple factors. Ā ese f actors i nclude sci entifi c b reakthroughs, i nnovative approaches t o a pplying inf ormation t echnologies in b usi- ness, updated a nd c urrent standards a nd legislations t hat a re accepted in spirit across industries and regions, and a positive, inbuilt social attitude toward carbon emissions. Table 11.1 shows t hese va rious G reen I T f actors a cross t he four d imen- sions. What is most important in discussing the future of

David Andrews (Souvenir Press 1984) in his book, The IRG Solution, argued that central media and government-type hierarchical organizations could not adequately under- stand the environmental crisis that were being manufactured. Neither did they have idea about the adequacy of the solutions. It argued that the widespread introduction of information technologies in businesses, together with its forever dropping costs has resulted in an era of high carbon emissions from all sections of society.

The future, therefore, is not so much in backtracking to the age before the technolo- gies as in investigating futuristic technolo- gies that will reduce future emissions and help in reducing the current ones.

Emergent Carbon Issues: Technologies and Future ◾ 349

Green IT is the fact that innovative approaches are required in all four aforementioned dimen- sions of Green IT.

Ā e complex nature of Green IT demands fl exible Green IT applications that can be used in diff erent contexts. Use of k nowledge management tools c an foster t he creation of more insights and knowledge in Green IT domain. Ā e tacit and explicit aspect of Green IT knowledge is likely to take diff erent and radical shapes. For example, the amount of savings in carbon by an organiza- tion within a p ermissible limit can be an explicit piece of k nowledge that can be used by Green HR in its internal education program or traded by the accountants. Carbon trading will bring in application of mathematical formulae like Blackscholes and Binomials, graphs a nd tables to p rice and facilitate trading in the software applications.

Ā ese applications need to allow for further changes to environmental standards, legislations, and processes. Users a lso have a va rying level of k nowledge a nd appreciation of Green ICT a nd their interests and priorities also vary. Ā erefore, Green ICT applications will have to remain con- tinuously adaptable and agile.

Socially too, the future of Green ICT is in innovation that makes use of social media networks, puts together groups of people and organizations in consortiums, enhances general opinion on the issues, and activates the Green HR function within the organization. Social networks relating to Green IT and environmental responsibilities can be formed at local, regional, and global level. At each le vel, t hese groups have d iff erent interpretation a nd priorities in terms of t he environment. Innovation in social approaches will capitalize on these diff erent interpretations and priorities and bring them together on a c ommon platform. Ā is can be achieved by organizations and govern- ments getting actively involved in the social media network phenomena rather that merely observ- ing it or making attempts to control it.

Further to t he e xternal so cial media a ctivities, organizations c an a lso at tempt at i nnovation internally in their Green HR f unction. Ā is innovation requires due consideration to t he mind- maps of the individuals operating with carbon reduction responsibilities within the organization, the tools and technologies used by them, and the way these individuals are trained, retained, and promoted.

Ā e u pcoming c arbon t rading a lso i mpacts t he i nternal o rganization m ore t han w hat w as discussed i n G reen H R ( Chapter 8 ). W hile e xternally a n o rganization h as t he re sponsibility to m eet c arbon r eduction t argets, i nternally t his r esponsibility g ets d istributed a mongst m any departments a nd i ndividuals w ithin t he o rganization. Ā is di stribution r equires ex cellence in collaboration, internally, if the organization has to p erform well in the future carbon economy.

Table 11.1 Future of Green IT in the Four Dimensions

Dimensions Future Technologies and Impact

Technology Cloud, ternary, biomimicry, collaborative EI, mobile, SaaS, CEMS integration

Economy Novice business models, carbon trading, legal framework

Process Governance standards, updated on ITIL, Sarbanes–Oxley, metrics, symbols, ISO 14001, collaborative EI

Social Social networks, rapidity of formation of new opinions, inbuilt environmental consciousness as a social value

350 ◾ Green IT Strategies and Applications

Malone ( 2004) h as d iscussed t his to pic o f de centralization a nd c ollaborative de cision m aking in c ontext o f c arbon t rading. F or e xample, u se o f c arbon cre dits i nternally a nd en abling t hen fostering a n internal a nd trading or sharing of c arbon credits, c an create a so ciocultural change and p roduce b enefi ts beyond the organizational boundary. Such an achievement will be much beyond t he carbon reduction t argets set for short-term periods. Opportunities for a m uch more signifi cant social c hange phenomena i s cre ated t hrough c ollaboration—internal a nd e xternal to the organization.

For sm all a nd medium businesses, m aking u se of social media networks opens up opportu- nities to l ocate a nd u se c arbon re duction k nowledge a nd, at t he s ame t ime, promote t he a ctual achievement of the same. Such a use, across international boundaries, would require a much more comprehensive legal framework than exists today.

Detailed discussion on the technology and business trends of Green IT follows.

Green ICT and Technology Trends Alignment of ne w a nd e merging t echnologies w ith bu siness has b een a ke y i n de livering c ompetitive a dvantage to b usi- ness. Ā is same alignment needs to be kept in mind when it comes to innovative use of emerging technologies and carbon reduction. E nvironmental i ntelligence ( EI) i ncludes not only the c orrelation a nd i nsights i nto c arbon d ata a nd i nforma- tion, b ut a lso i nnovative ap plication o f te chnologies t hat a re aligned to bu siness. Ā e t echnologies t hat a re mo st l ikely to have a n i mpact on Green I T a re C loud c omputing, software

as a service (and lean-IT), nanotechnologies, quantum/trenary computing, ecodesign and bio- mimcry—shown in Figure 11.1. Some of impact of these technologies is already being felt in reducing t he en vironmental fo otprints o f o rganizations. H owever, a m uch g reater i mpact i s envisaged in the upcoming future of the carbon economy. Similarly, alignment of these tech- nologies with business will be promoted through creation and upgrading of ISO standards, corporate governance standards and fresh look at Green IT strategies and policies. Ā is is also shown in Figure 11.1

Ā ese te chnologies a nd t heir i mpact o n en vironmental re sponsibilities o f b usiness a re d is- cussed next.

Cloud Computing Cloud c omputing i s a n i mportant pa rt of a n organization’s approach to G reen I T. Ā is impor- tance of Cloud computing was evident in the discussions in Chapters 4 and 6. However, in addi- tion to t hose d iscussions, C loud c omputing h as a l ot more to off er i n t he f uture i n t he c ontext of EI. Ā e underlying premise of Cloud computing has been the consolidation of hardware a nd software s ervices t hat a re m ade ava ilable t hrough t he u ninterrupted, p erpetual c onnectivity o f the Internet. W hile this off ering through the Cloud provides many business advantages to orga- nization, t he a dvantages i n ter ms o f c arbon em ission re duction t hrough c onsolidation a re v ery

Green IT does not need a “silver bul- let” solution. In fact, we make aware of it. Bill Buxton, in The Long Nose of Innovation says, “The bulk of innovation is low-amplitude and takes place over a long period. Companies should focus on refi ning existing technologies as much as on creation.” (http://www.business- we ek.com / innovate /content / jan20 0 8 / id2008012_297369.htm).

Emergent Carbon Issues: Technologies and Future ◾ 351

signifi cant. Ā is is so b ecause the sharing of infrastructure and applications, pooling of reusable data, and fl exibility in terms of IT planning resulting from the Cloud has many possibilities that are yet to be explored.

Ā e future of the Cloud, in terms of what it off ers to G reen I T, i s ba sed o n i ts a bility to continuously a nd dy namically b ringing tog ether m ultiple t hreads o f c omputing p rocesses,

Cloud Computing/Software-as-a-Service

Eco Design and Biomimicry

Quantum Computing/Trenary/ Nanotechnologies

ISO and Governance Standards

Social Networking

Renewable Energy Source

Security and Legal Frameworks

Figure 11.1 Emerging technologies landscape and Green IT impact.

8%

17%

47%

22%

6%

Use of Cloud computing to implement environmental polic

Strongly Disagree Disagree Neutral Agree Strongly Agree

9% 17%

39%

31% 4%

Use of SaaS in reducing carbon emissions

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 11.2 SaaS and cloud computing in Green ICT strategies.

352 ◾ Green IT Strategies and Applications

multimedia data, and changing interfaces in an intelligent way. Ā e o pportunities t o r educe the overall carbon footprint through dynamic collaboration are on the rise by creation of public and private Clouds. Dynamic collaboration on the Cloud enhances the opportunities to use the business principle of C loud c omputing: “pay a s you g o” i n ter ms of u sing c omputing s ervices. For example, Cloud-based collaboration reduces the typical “buff er” of hardware including disk space and computing power that would be otherwise required by data centre managers for their own organizations.

Ā e future of Cloud computing will also be aff ected immensely by the availability of com- monly a ccepted s tandards a s we ll a s e xcellence i s m etrics a nd m easurements. Cu rrently, t he carbon em ission c alculations i n t he C loud a re t reated e xternal to t he organization, re sulting in a reduction of the carbon footprint of the user organization. However, that is not accurate refl ection of the “overall” reduction of emissions due to Cloud computing. A much more pre- cise calculation that balances the consolidation of computing devices with the power expended by the communication networks in communicating with those centralized computing devices is r equired. Ā us, t he u se o f m ost o ptimized pat hways b y u ser de vices to a ccess t he C loud will h ave a n e qual i mpact o n c arbon re duction a s t he c onsolidation o f t he ba ck-end s ervers themselves.

Consolidated, optimized, and vast Cloud-based data centers, made up of ever-expanding deck o f su per c omputers, p rovide t he f uture ba sis fo r c arbon-sensitive c omputing. S uch Cloud-based se rvices w ill be o ff ered b y a c onglomeration o f l arge c omputing v endors w ith specialist sk ills, i ncluding t hose i n server m anagement, location a nd i nfrastructure, metrics and measurements, standards, and, of course, ability to comply with the legal and reporting requirements.

Following a re t he a reas of Cloud computing t hat have t he potential for reducing t he overall carbon emissions across the industry:

Infrastructure—this i s t he c onsolidation o f d ata s ervers, d isk spa ce, c ommunications ◾ equipment, and the supporting operating system. Such infrastructure services are capa- ble of hosting increasing array of software applications from many diff erent client organi- zations. Ā e carbon savings will result from the use of common hardware and also from the consolidation of data center buildings, their cooling energies, and their maintenance eff ort. Applications development—with the availability of a sophisticated Cloud, application devel- ◾ opment, including its modeling, testing, and deployment, can be put together in one place. Ā e C loud-based ap plication c omponents c an b e u sed to p lug i n to t he n ewly de veloped systems, resulting in a much faster and energy effi cient development. Application e xecution—operationally, software applications c an r un much better t hrough ◾ a Cloud a s t hey a re able to m ake use of t he run-time environment provided by t he Cloud itself. Furthermore, as these applications are hosted in the Cloud, they reduce the eff ort at upgrades and maintenance undertaken by organizations. Ā is reduces the amount of opera- tional eff ort (and corresponding operational carbon) at the user end. Reusable Data service—a large amount of public or partially proprietary data can be made ◾ available t hrough C loud-based s ervices t hat c an re duce t he rep eated s torage a nd m ainte- nance of such data by separate organizations. For example, currency exchange, interest rates, fl ight times, and weather patterns, are the types of data that are common to m any organi- zations but a re stored by t hem a ll separately. Cloud-based data services can eliminate t hat storage and opens up doors for their greater consolidation. Such consolidation of data can

Emergent Carbon Issues: Technologies and Future ◾ 353

also be used in environmental management by organizations wherein common data, com- mon lessons learnt, a nd application of c ommonly a ccepted s tandards c an b e c onsolidated and provided on the Cloud as a service.

SaaS Software as a service (SaaS) provides an ideal way to deploy software applications. SaaS provides access to the application that is executing on a rem ote server, by anyone, as and when needed. Ā is SaaS- based deployment has also been discussed in earlier Chapters 4 and 6. SaaS is the execution of applica- tion from a centralized server through the connectivity accorded by the Internet. SaaS model off ers a combination of shared services model, improved power consumption, cooling effi ciency, and equip- ment density (http://www.aplicor.com/blog/071001.htm). Ā us, SaaS is closely associated with Cloud computing, and adheres to the principle of pay as you go, mentioned earlier. While the Cloud off ers opportunities to c onsolidate infrastructure a nd hardware, a nd enables expansion without t he usual overheads, SaaS creates opportunities to execute applications that are not installed, and confi gured on the local servers of the organizations. Instead, applications are run out of a common machine, and are shared by diff erent users. Ā is results in the use of power by a smaller number of computers as against the number of computers required if applications were run individually and locally. Ā e overall energy and costs are thus reduced. Ā us future, in fact, is where applications are architected, designed, mod- eled, and developed from ground up as SaaS applications with associated carbon metrics. Application vendors themselves may no longer be off ering their applications as packages but, rather, as services.

Ā e challenge with SaaS-based deployment is related to d ata, its integration and its security. Ā erefore, t he ap plication e xecution a nd reu sable d ata s ervice d iscussed i n t he previous s ection assume greater importance in SaaS-based software deployment. Questions such as how is the data created, where does it reside, how does it interact with the existing data of the organization, how it is backed up, and how much of control the Cloud vendor has on the data as compared with the organization, all need to be asked and investigated.

SaaS applications are easier to maintain and upgrade as they are installed and confi gured in a centralized place. Ā is reduces the upgrade and maintenance of the applications. However, secu- rity and privacy of data, especially from competing organizations, can be a challenge.

Ā us, SaaS too, has a long way to go as its success is not based on technologies alone. Innovative business m odeling, s tringent l egal f ramework ( that g uards s ecurity a nd p rivacy o f d ata) a nd changes in user attitudes will all be required to make SaaS a success. With increasing acceptance of SaaS-based deployment of software there will be a signifi cant reduction in the “clutter” of hard- ware and software components.

Nanotechnologies Nanotechnology deals with computing at a microscopic level. Ā ese technologies have the potential to impact Green IT in terms of both its hardware and its software. Nanotechnologies provide means to create, measure, and manipulate electronic data and communications at atomic size. Ā e reduc- tion in size requires considerable research eff ort—design, development, and production. Ā e power to these minuscule devices requires innovation in battery power technologies. However, the amount of power required by t hese devices is a lso small due to t heir smaller size. Reduction is device size, potential elimination of movement (e.g., spinning of disks) within the devices, and ease of handling can all reduce overall carbon emissions resulting from these devices.

354 ◾ Green IT Strategies and Applications

A s trong m arriage b etween n anotechnology a nd t he principles a nd practices of Green en gi- neering provides a w ay to b uild environmentally sustainable society ( http://www.ens-newswire. com/ens/apr2007/2007–04–26–01.html).

Quantum/Trinary Computing Trinary (or ternary) computing has signifi cant possibilities not only for computing itself but also for improving on the carbon footprint of IT. Trinary computing works at the very fundamental of computing by adding to the binary bit options of “0” and “1,” another option of “-1.” Such trinary computer was built by Nikolay Brusentsov in 1958 and is said to have much reduced power con- sumption than the binary one (http://en.academic.ru/dic.nsf/enwiki/155775).

New Renewable Energies Wind, so lar, w ave, n uclear, a nd b iomass a re at t he c usp o f ren ewable en ergy so urces. Cu rrent oil, coal, and gas are exhaustible sources of energy. Exploring new energy sources that would not deplete w ith u se i s a n o ngoing sci entifi c e xercise. A dvent o f t hese ren ewable so urces o f en ergy will change t he c arbon em issions c alculations a s t he em issions re sulting f rom t hese energies a re expected to be much less than those generated by coal and gas. However, care should be taken to balance the use of these futuristic energy sources with the emissions that may result from prolifer- ation of end-user devices that would still be emitting heat and carbon.

ISO—New and Upgraded Standards Ā e ISO 1 4000 f amily o f s tandards, d iscussed i n t he p revious c hapter, a re a lso e volving. F or example, t he ISO 1 4001 s tandard, w hich sp ecifi es t he re quirements o f a n en vironmental m an- agement s ystem, do es so i n t he c ontext o f a sp ecifi c p roduct o r a n o rganization. However, t his standard does not contain requirements for that would handle environmental practices associated with collaborative organizations—especially if these organizations are collaborating dynamically. Either t he ISO 1 4000 s eries o f s tandards n eed to b e u pgraded to i nclude dy namically c ollabo- rating businesses or a n ew s et of s tandards a re re quired to c over t he environmental practices of such collaborations. Furthermore, environmental governance standards that deal with embedding environmental management within corporate governance structures (based on ITIL and CoBIT, for example) are also required. Standards that can dictate, from an environmental perspective, the use of aforementioned emerging technologies, are also required. Finally, the use and deployment of t he s tandards t hemselves n eed to m ake u se o f t he C loud a nd b e Sa aS ba sed—reducing t he overheads associated in complying with them and their related reporting. Such standards would incorporate em ergent te chnologies, p ractices, a nd m ethods o f de velopment a nd dep loyment o f software applications and services.

Security and Legal Ā e current legal frameworks governing carbon emissions come out of the ratifi cation of agreements at various international summits on the environment. However, a carbon emission in the context of

Emergent Carbon Issues: Technologies and Future ◾ 355

IT is a global phenomena—especially as Cloud, SaaS, and outsourcing continue to dominate the IT services sector. Ā erefore, while the real user of a service could be sitting in one geographical region, the emissions re sulting f rom h is or her work w ill be at tributed to a to tally d iff erent geographical region. Ā e laws t hat govern t hese em issions, a nd t he standards a nd protocols t hat su rround t he measurements of these emissions, need to be developed and agreed upon. As discussed later in this chapter, the dichotomy between the developing and developed nations in terms of carbon emissions is also a key in the development of laws and regulations that can apply globally.

Integral to such a legal framework are the issues associated with security of carbon data. Ā is is particularly so when the data is generated and owned by one organization, whereas it is stored, maintained, and backed up by a totally diff erent vendor of such services. Security of carbon data requires p rocedures, p ractices, n orms, s tandards, a nd b inding l egal f ramework—not m uch o f which exists now.

Ecodesign Ecodesign i s ba sed o n en vironmental c onsiderations i n t he v ery e arly c onceptual s tage o f t he architecture and design of products or processes. While environmental consideration is a product, lifecycle themselves are not a new thing, in depth consideration of the Green P-O-D is involved in this process. For example, Ecodesign of a computer monitor will include a less energy consuming design, de tailed s tudy o f t he de vices a ssociated w ith t he m onitor—like t he m achine, ke yboard and mouse, their biodegradability and also the ergonomics of use. Each of these factors provides input in to eco design. Ā us, e codesign c an c over de sign, r aw m aterials, p roduction, pa ckaging, and distribution. For example, ecodesign would consider local sourcing of raw material saving on transport a nd storage, which i n t urn, would s ave c arbon. A nother e xample i s c hoice of t he r aw material itself. For example, while choice of wood over plastic would mean a biodegradable cheap option, plastic e quipment m ay i mply a d urable l ightweight product w ith a l ong l ife. E codesign incorporates these issues in design of all ICT equipments.

Biomimicry Biomimicry, a s a n em ergent t rend, re quires subs tantial s tudy, e xperimentation a nd u sage i n a ll areas of an organization’s products and services. Biomimicry can be considered as a combination of science and art that aims to learn from and emulate nature, which is usually sustainable. Nature uses only the energy it needs to c arry out a f unction, ensures that the functionality matches the form, recycles and relies on diversity.

Examples of biomimicry include nontoxic adhesives inspired by geckos, energy effi cient build- ings based on the architecture of termite mounds, wingtips on commercial aircraft-based wingtip feathers of birds of prey resistance-free antibiotics inspired by red seaweed, and a solar cell inspired by a leaf (based on http://www.biomimicryinstitute.org/). Ā us, biomimicry adds to the criteria of what is a successfully technological innovation. Innovation that fi ts in with the nature is likely to be much more sustainable than the one that has disregard for nature.

Ā ese examples hint at opportunities that can be explored by Green IT in the area of data centre i nfrastructure, c omputer de sign, c omputer o perations, c ommunication n etworks, a nd even system applications. For example, application of biomimicry in IT can lead to design of glass scre ens ba sed o n to tal i nternal re fl ection, v irtual ke yboards, a nd b iodegradable i nternal

356 ◾ Green IT Strategies and Applications

elements as far as possible. While the earlier section discussed the relevance of Cloud computing, not all the computing power of the Cloud will be centralized. Going by nature, which relies and makes good use of local expertise, the Cloud architecture may become a distributed architecture that takes advantage through decentralizing some aspects of the otherwise centralized architec- ture. From an infrastructure viewpoint, constructing a data centre in cold geographical regions, covering its ro of w ith ter racotta t iles, providing a mple n atural v entilation to t he building a nd growing iv y on t he side w alls of t he building a re some w ays of u sing n ature re duce t he p ower required in cooling data centers in the Green ICT domain. With only a little over half a century of computing history to fall back on, opportunities exist to investigate and discover a substantial amount in the way computers are designed and developed that can be based on the way nature designs things.

Green ICT—Business and Economic Trends Ā e business a nd e conomic t rends i n G reen I T a re a s i nfl uen- tial as the technological trends in what the eventual outcome of Green IT will be. Ā ese new business models also off er potential for future research and development in the intersecting domains of economics and environment (as also highlighted by Younessi [2011] and also by Sherringham and Unhelkar [2011]).

Collaborations, ba sed o n t he I nternet c onnectivity, off er businesses o pportunities t o c reate a dvantages b y in teracting

with each other, rather than competing with each other. New collaborative business models that are also dynamic (that is formed and dispersed on a regular basis) can lead to many diff erent ways in which Green I T is u nderstood a nd implemented by t hese collaborations. C ollaborations a lso enable relationships between a network of organizations enabling them to buy and sell their prod- ucts a nd s ervices e lectronically, t hereby m aking t hem c heaper to s ell or buy a s we ll a s en abling the businesses to reach a wide range of market. As Fairchild and Peterson (2003) have mentioned, the p resence o f c ollaborative c ommerce i ndicates a n etwork o f fi rms w ith si milar c ollaborative natures w ith e stablished c ollaborative b usiness p latform a nd s trategies. Bu siness c ollaborations off er opportunity for reu sability of d ata, processes, a nd s ystems t hat in itself is advantageous in reducing t he c arbon fo otprint o f t he o rganization. C ollaborations c an a lso h elp i n sh aring o f information and knowledge gained in implementing Green IT strategies. Ā us collaborations in the domain of Green IT would result from fi rms not only to creating and selling Green products, but also incorporating Green partners in their business practices, sharing the growing knowledge and experience in this domain, and helping and supporting each other in the collaborative eff ort. Eventually, Green IT should become a self-sustaining commodity that can be traded for its own sake, or increase the share value of a fi rm.

Figure 11.3 sh ows t he g rowing i mportance o f c ollaborative b usiness m odels a nd t he u se o f tools and techniques within various industrial sectors. For example, education, transport, and sci- entifi c enterprises score heavily in the “strongly agree” option, and other industrial sectors such as health care, fi nancial, and media are closely following with the “agree” option—in terms of how prevalent are the use of collaborative tools in these business sectors.

Ā us, b uoyed b y t he c onnectivity o f t he I nternet a nd f urther o pportunities fo r re al-time connectivity t hrough m obile n etworks, b usinesses a re r apidly fo rming c ollaborative a lliances to pa ckage t heir p roducts a nd s ervices. Ā ese b usiness t rends h ave si gnifi cant impact on the

In recent interviews with 1,000 global senior business and IT managers, Enterprise Strategy Group found that nearly half said professional services to assess, design, and implement technologies to support Green initiatives were most important in selecting IT vendors (Nordin 2008, OECD 2009; The climate Group 2008, as also reported by Garito, M., 2011).

Emergent Carbon Issues: Technologies and Future ◾ 357

Green IT domain as well. For example, collaboration enables decentralization of decision making within many businesses—so, if one partner in the collaboration is emitting high level of carbon, other business partners should be table to take action to reduce those emissions. Ā is leads to business m odels t hat m ake re gular u se of dy namic k nowledge m anagement s ystem ( Unhelkar 2010, Cutter report). Ā e opportunities to reduce carbon emissions at the source increase rapidly in these business models.

Cloud computing and SaaS, discussed earlier, are not the only technological innovations that impact Green ICT. Ā ey also require a corresponding business model that can support the use of these technologies. Such a business model will invariably include agreements on how the carbon emissions a re to b e sh ared a mongst t he v endors a nd u sers o f C loud c omputing. F urthermore, product, service. and infrastructure businesses will each have a diff erent model when it comes to use of Cloud computing, a nd t herefore diff erent ways of calculating carbon emissions. Product- based businesses need signifi cant use of the Cloud for calculating raw materials and inventories, relating them to supply chains and also distributing the fi nished products. Service-based indus- tries have negligible raw materials, inventories are only associated with the equipments and there is no distribution network. Ā erefore, Cloud-based business models, wherein these businesses are using Cloud computing, require the service level agreements to be drafted diff erently. Ā e services and su pport re quired f rom t he C loud fo r a s ervice-based b usiness h as m ore re al-time, cr itical components to it than the production type business. Numerous aspects of such a business model come into play including requirements for uptime, redundancies in data and systems, staff sup- port, education and training, and even marketing and advertising.

From a business viewpoint, the future of Green ICT can also be linked closely with good cor- porate citizenship and ensuing promotion and marketing. Ā ese Green credentials in marketing together with their caveats were discussed in Chapter 8. Supporting various environmental causes, formation of environmental social media groups, and identifying the changing customer choices are the key to the future in the social dimension of Green IT.

Business mo dels a lso re fl ect c hanges to t he i nternal o rganization o f b usiness. F or e xample, project-based work within organizations will be carried out by virtual project teams that can be created quickly, based on members from diff erent areas of business, collaborating electronically to

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Figure 11.3 Use of collaborative tools by organizations in practice.

358 ◾ Green IT Strategies and Applications

deliver results. Ā e internal business model includes addressing internal communication, integrat- ing processes, and enabling sharing of information amongst team members.

Dichotomy of Developing Economies Rapidly emerging business and economic trends refl ect the glo- balized nature of most medium to large businesses. Ā is global- ization, in turn, leads to an even bigger challenge that the overall environment do main h as to f ace i n t he n ear a nd l ong-term future—the d ichotomy b etween r apid e conomic d evelopment and corresponding carbon control in the developing economies. Ā is issue was the main point of contention between these two groups of economies and was based on the need to consider total carbon em issions o ver a subs tantial p eriod o f t ime. Ā is is a n important e lement i n t he w ay i n w hich c arbon i s c alculated and re fl ects diff ering v iewpoints o f de veloped a nd de veloping

nations. To a large extend, this may not be a practical calculation. Ā is is so because if emissions are considered only over last couple of years or even a decade, then the developing nations produce substantial emissions—as the economic development is more or less related to increases in carbon emissions. Ā e developed economies, in t he pa st, generated signifi cant carbon during their own growth periods.

Ā e de veloping e conomies ( BRIC) a re p roducing c arbon w hen t he wo rld i s m ore c arbon- conscious than it was earlier. Ā is has created a new challenge—that of balance and fairness across the g lobe. Table 11.2 ( based o n N athadwarawala 2 011) sh ows t he d iff erences b etween va rious business e lements i n f ully de veloped e conomies a nd de veloping e conomies ( BRIC). Table 11.2 also highlights the specifi c nuances of these sustainable business elements in terms of their envi- ronmental implications.

New a nd emergent approaches to su stainability i n practice need to i ncorporate t hese g lobal factors. Governments, companies, and individuals need to build on them further by bringing in elements of geographical regions a s well a s time periods in measuring a nd restricting emissions. Ā us, new economic models in the way resources are shared over regions and time is required. Ā e disparity of consumption and corresponding carbon emission between the developed and devel- oping countries needs to be bridged. Ā is discussion in Chapter 3 over length of time, breadth of coverage and depth of practice of sustainability across entire geographical regions now applies in this dichotomy discussed here.

Collaborative Environmental Intelligence Environmental i ntelligence, a s d iscussed i n t he e arlier c hapters, tog ether w ith t he c ollabora- tive business models discussed earlier in this chapter, off ers a m ajor a rea for re search i n envi- ronmental i nitiatives by businesses. Ā e va rious a reas of c ollaborations include t hose between various stakeholders and parties: between organizations, between individuals and organizations and b etween g overnment a nd o rganizations. Ā us, c ollaborative E I g oes b eyond t he i nsights required and used by a single organization and into the realms of multiple, dynamic collabora- tive entities.

Sustainability as commodity: increased interest in sustainable methods and prod- ucts will soon lead to “self-sustaining markets”: that is, bought and sold for their own sake. Sustainability has a inherent in trade value with business opportunity for investors. The size of BRIC economies, and the fact that their en masse adoption sustainable and Green ideas will result in a massive capitalization of Green infra- structure in these economies. Based on Nathadwarawala K & L (2011), HRG.

Emergent Carbon Issues: Technologies and Future ◾ 359

Collaborative i ntelligence is de scribed by Unhelkar a nd Tiwary (Cutter 2010) a s a te ch- nical platform w here multiple organizations a re c ollaboratively sh aring t heir business i ntel- ligence fo r t he w in-win o utcome w ithout c ompromising t heir o wn m arket p osition a nd diff erentiation.

Developing and formalizing the collaborative EI capabilities will provide collaborating orga- nizations with market diff erentiators in the environmental space

Collaborative E I brings c ollaborations a nd E I tog ether—thus helping t he business world to get ready for the carbon economy without going through the rigors of “reinventing the wheel.” For example, through collaborative EI, noncompetitive carbon data. and analysis can be shared easily amongst organizations and governing bodies.

Ā is sh aring of c arbon c apabilities c an a lso e xtend to sh aring of m any ba sic environmental systems components such as security, access, and authentication. Such sharing of technical com- ponents can play a positive role in the compliance of security and privacy requirements related to the environment.

Table 11.2 Developed Economies and Developing Economies (BRIC) Comparison along Four Dimensions

Sustainability Dimensions Elements Fully Developed Economies Developing Economies (BRIC)

Social (people, attitude) High literacy;

Low density;

Wide spread;

Results in rapid intake of the concept of sustainable development

Low literacy;

High density;

Concentrated;

Results in slow intake of the concept of sustainable development

Process (discipline) High emphasis on standards and quality control

May result in more carbon per activity but less carbon overall

Relatively recent focus on standards and QA may results in less carbon per activity but overall higher carbon

Technology (design, adoption)

Rapid adoption due to availability of technology— helps in environmental changes; but was responsible for the GHGs in the fi rst place

Relatively low use of technology, but the rapidly growing use can be environmental friendly from the start

Advantage of “Leap frogging” of technologies

Economy (costs, ROI) Heavily regulated with greater controls in place

Enables environmental factors to dictate customer spending patterns

Weak regulation in markets

Customers and business partners (globally) are the main driving force to encourage environmentally friendly products and services

360 ◾ Green IT Strategies and Applications

Future work in collaborative EI also includes dynamic integration and consolidation of dis- parate carbon data and multiple transactions from many organizations in to a single customer view.

Following a re sp ecifi c to pics o f i nterest a nd f uture i nvestigations i n re lations w ith collaborative EI:

Collaborative carbon data for trend plotting—carbon data and information from multiple ◾ sources a nd m any o rganizations i s re quired to cre ate a n i ndustry-wide p icture o f c arbon trends. Interfacing data warehouses will create environmental insights that are not possible with single, organizational data base. Collaborative data warehouses—will reuse common, noncompetitive, sharable carbon data ◾ that will reduce replication of data and corresponding processing. Collaborative EI using Cloud computing—collaborations in the Cloud will enable improved ◾ and consolidated carbon data and device management. For example, smart meters can col- lect a nd t ransmit d ata n ot to si ngle o rganization b ut to t he s ystems a nd f acilities i n t he Cloud. Collaborative E I w ith mobile te chnologies. R esults i n a m obile d ata w arehousing, OLAP, ◾ and d ata m ining t hat c ome f rom b usiness I ntelligence a nd a re ap plied to en vironmental intelligence. A carbon data warehouse is a large repository of data collected from operational data sources that deal with environmental information. OLAP and data mining techniques can be used to identify and interpret patterns from such collaborative organizational data. Collaborative EI and Green Blogs—provides opportunities for free exchange of information ◾ and ideas on the environment. Ā is advantage of such Green blogs a nd discussions is that they remain stored for future reference, can be indexed and researched into and provide col- laborative opportunities beyond regular journals or magazines. Blog-based communication facilitate g reater e xchange of ideas b etween organizations, f acilitate sh aring t hose ideas i n real time and enable customers to voice their preferences. Collaborative EI and Web 2.0/Web 3.0. Ā e new version of the web s et new trends in the ◾ communication te chnologies t hat g o b eyond t he ba sic t ask o f c ommunication ( Unhelkar and Trivedi 2009). Ā e characteristics of these technologies are rich user experience, ability of the user to not only glean information but also execute services, enable dynamic content, and enable sc alability. Ā e i nstant c ollection of c arbon d ata a nd i nformation, a nd i nstant feedback through applications that run on the new web platforms, provide the management and leadership of the organization to make instant decisions regarding the direction of the collaborative organizations. Implementation of Web 2.0 technologies on the mobile devices will reduce the energy use as mobile gadgets consume less energy than desktop computers as well as virtualizes the server resources leading to a su stainable and environment friendly system. Collaborative EI and GR ID computing—the GR ID of computers, connected via a net- ◾ work, i s t he p recursor to to day’s C loud c omputing. A c omputing GR ID w as ba sically interested in sharing otherwise u nused computing power (Unhelkar 2004)—as a gainst a C loud t hat a lso b rings i n b usiness r ules fo r sh aring a nd pay ing fo r t he re sources. However, the GRID is a known paradigm for computer connectivity and should be cer- tainly explored for the possibilities of reducing the overall global computing needs. For example, a w ireless GR ID m ay off er t he opportunities to completely sidestep t he need to build a p hysical c ommunication network—saving t he c arbon footprint of a p hysical infrastructure.

Emergent Carbon Issues: Technologies and Future ◾ 361

Discussion Points What would be the innovative aspects of applying Cloud computing to t he environmental ◾ challenge? How does a SaaS-based application reduce carbon emission? ◾ Discuss the ways in which standards in environmental management can be enhanced. ◾ What are the major points of contention in the carbon debate between the developing and ◾ developed economies? What i s c ollaborative E I? D iscuss t wo w ays i n w hich c ollaborative E I c an b e ap plied i n ◾ today’s organizations to reduce their carbon footprint.

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Unhelkar, B. (2004). Eff ect of wireless grids on information architectures of businesses: From a globalization perspective, ADCOM, 2004.

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Younessi, D. (2011). Chapter 7 , Sustainable Business Value. In B. U nhelkar, ed., Handbook of R esearch in Green ICT, pp. 98–115. IGI Global, Hershey, PA, USA.

BCASE STUDIES

Part B of this book contains three separate case studies. Each of these case studies aim to demon- strate the application of the principles and practices of Green IT discussed thus far in this book. Ā e attempt to undertake Green enterprise transformation for each of these organizations would, in practice, involve a lot more time, eff ort, and budget than is described here. Hence, the purpose of these case studies is to provide some indication of the practical aspect of Green enterprise trans- formation. W hile t he c ase s tudy de scriptions a re ba sed o n h ypothetical o rganizations, t hey a ll have their roots in a real life organization. Each case study chapter aims to demonstrate a specifi c aspect of t he Green enterprise transformation. Following is a b rief outline of t he a reas of Green enterprise transformation handled by the chapters in this section:

Chapter 12: Greening of a service organization. Ā e emphasis here is on optimizing processes associated with the services off ered by the organization. Ā ere are no products as such, therefore no materials and their inventory. However, there will be equipments associated with the service—in this case a hospital—and corresponding inventory and lifecycle associated with the equipment.

Chapter 13: Green of a product organization. Ā is is a medium-sized organization producing packaging material. Ā erefore, there will be material and inventory associated with the manufac- turing process. Besides that, there will be supporting processes and systems.

Chapter 14: G reen o f a n infrastructure o rganization. Ā ese t ypes o f o rganizations do n ot have a product or a service as their main off ering. For example, a large telecom organization will be primarily involved in setting up of the communications infrastructure. Services including main- tenance of t he i nfrastructure, business models for billing c ustomers a nd off ering of t he telecom platform to other service providers will ensue. Ā is is a long-term Green enterprise transformation and the issues are more collaborative than the previous two types of organizations.

365

12Chapter

Case Study in Applying Green IT Strategies and Applications to a Hospital

Key Points Presents a Green enterprise transformation (GET) case study for a service organization ◾ Uses GoodMead hospital as a hypothetical organization to present the case study ◾ Describes the practical aspects of a preliminary Green IT audit ◾ Describes the Green business objectives of a hospital ◾ Conducts a high-level SWOT analysis of the hospital from a GET perspective ◾ Suggests the use of mobile technologies in optimizing hospital processes that will result in ◾ carbon savings Lists the lessons learning in applying Green IT strategies to a service sector organization like ◾ a hospital

GoodMead Hospital GoodMead is a hypothetical large hospital in a metro city, providing public sector medical services. Ā ese services cover various areas of health including the standard out patient department provid- ing regular consultation to patients, as also various specialities such as pediatric, gynecology and obstetrics, orthopedics, radiology, sports medicine, and so on.

As a result of the recent preliminary Green IT audit of the hospital, it has been revealed that the hospital had a signifi cant carbon footprint. Signifi cant reviews of patient management processes, management o f e lectronic pat ient re cords ( EPR), l aboratory e quipment m anagement, m edical drugs and material management, and management of equipments and buildings were undertaken. Initial o pinion o f t he aud itors a nd t hat o f t he ten tatively ap pointed c hief g reen offi cer (CGO)

366 ◾ Green IT Strategies and Applications

was t hat signifi cant optimization w as p ossible i n a ll t hese a reas of t he hospital t hat w ill re duce its c arbon footprint. Ā e cost-eff ectiveness a nd effi ciency of t he hospital’s service processes i s a s important as its carbon effi ciency. Ā us, the benefi ts envisaged in terms of its cost reduction and process optimization are signifi cant. Further to the attention on processes in terms of their carbon reduction, the initial investigation also highlighted that GoodMead has a si gnifi cant investment in a data center. Ā e building and infrastructure of this data center is now more than 10 years old, and the server machines themselves are averaging 4 years in use.

Ā e aud it a lso re vealed t hat t he hospital, by u ndertaking a G reen enterprise t ransformation (GET), would be able to infl uence many of its partnering organizations. Ā ese are the labs, phar- macies, and suppliers.

Ā e return on investment (ROI) of the hospital’s attempt to t ransform to a G reen hospital is meant to go beyond the carbon focus and into the overall business optimization arena. Ā u s, the hospital leadership is keen to make eff ective use of new fund allocations that have been indexed to carbon reduction. Ā is eff ective use includes an approach that will benefi t the hospital overall and is not limited only to IT-related carbon reduction.

Preliminary Green Investigation As a re sult o f t he de cision t aken b y t he n ew, v isionary l eadership o f G oodMead h ospital, t he aforementioned preliminary Green IT audit was conducted. Ā is audit took place over 4 we eks. Ā e main sponsor of this audit was the tentatively appointed CGO. Ā e CGO, together with the IT auditors, departmental heads, and the CIO sought input into the current state of the hospital. Ā e framework for this audit was based on the four dimensions of GET. Ā us, input was obtained in terms of the economic performance, sociocultural or attitude, business processes, and technical infrastructure of the hospital. Ā e CGO is seeking input from Green IT experts as well as experts from the medical administration domain on how to approach the GET.

Following i s a l ist o f t he n oteworthy fi ndings f rom t he p reliminary G reen I T aud it o f GoodMead hospital:

Ā e hospital being a large, public sector hospital, has to u ndertake action in terms of mea- ◾ suring, reporting, and reducing its carbon emissions. Ā e hospital has signifi cant opportunity to infl uence its partnering organizations. ◾ Ā e OPD (out-patient department) of the hospital is a l arge and complex department that ◾ operates out of its own separate building and infrastructure. Ā is department is serviced by 220 stationary desktop machines, 100 mobile laptops a nd PDAs c arried personally by t he staff and numerous supporting IT paraphernalia—such as printers. Ā is department alone, according to estimates and with assumptions in terms of computer usage, accounts for 60 to 65 kT (kilo Tonnes) of carbon emissions of the hospital. Ā e h ospital h as a dditional de sktops, p rinters, l aptops, a nd P DAs t hat a re i n t he o ther ◾ departments such as surgical and laboratories. Ā ese devices amount to 20 kT of emissions at this stage. Printers a re heavily used for writing of scripts, printing of patient records a nd reports a nd ◾ related documentation (such as a referral). On an average, the hospital prints 5,000 pages of normal paper and consumes corresponding ink and printer time. Ā e hospital has an attached pathological laboratory that conducts diagnostic blood and ◾ related tests. Ā e lab equipment is aging. Similarly, the data stored in the hospital’s servers

Case Study: A Hospital (Service Organization) ◾ 367

that provides that information to staff on t he results from t he tests is a lso signifi cant con- sumer of power and generates carbon emissions. Pre- a nd p ostsurgical a ctivities re quire subs tantial n umber o f e lectronic e quipments a nd ◾ information technology support. Ā e h ospital h as to n eed to p roduct subs tantial a mount o f l egal do cumentation ( such a s ◾ signing of authority to perform certain operations), and so on. Ā e hospital collaborates with external pharmaceutical organizations as well as manufactur- ◾ ers and distributors of drugs and hospital equipments. Ā is collaboration is a c ombination of manual interactions and also some initial web services based interaction. Staff rostering is not optimized, leaving the administrative staff to occasionally use physical ◾ notepads, whiteboards, and diaries to book availability of doctors. Scheduling system for patient appointments, surgical procedures and human relation (HR) ◾ (e.g., doctor vacation) is also not optimized and requires a major upgrade. Scheduling patient consultations, sc heduling work rosters for nurses a nd a dministrative staff i s m any a t imes happening manually. A c omprehensive m ultimedia d ata w arehouse p roject i s u nderway. Ā is p roject is a imed ◾ at consolidating the large amount of data, in multiple formats, in a si ngle data warehouse. Furthermore, selected past consultations in audio and video are also to be made available to authorized users like doctors, patients, and external specialists. With the availability of a multimedia database, there is opportunity for optional extensions ◾ to the project is to incorporate possibility of remote consulting by doctors through audio and video media using high-speed connectivity. Security of access and privacy of patient’s data (EPR) is of top priority and is not to be com- ◾ promised under any circumstances. A range of relative cross-functionalities (like sports information) to b e included to at tract and ◾ keep nonpatients to the site as well. Ā is may help in keeping the community aware of the site. Internal administrative systems (like booking of surgeries to operating rooms, or leave roster ◾ of nurses) be moved to the Internet-based system to enable global (or off -site) management. Ā ere a re provisional inventories t hat a re in excess. Ā ese a re both medical a nd IT inven- ◾ tories. For example, there are 15 PCs sitting in the IT departments as potential backups for breakdowns. Similarly, the data center has excessive unused storage capacity.

Green Business Objectives Ā e g reen b usiness o bjectives o f G oodMead h ospital a re ba sed o n t he re sults o f t he p reliminary investigations into its Green IT maturity level. Ā ese objectives provide the basis for the transforma- tion plan. Figure 12.1 shows the overall approach to GET for GoodMead hospital. On the left is the description of the “as is” state of the hospital from the environmental perspective. On the right is the “to be” or desired state of the hospital. Ā is “to be” state of the hospital is based on the formation of green objectives of the organization. In between, in Figure 12.1, is the outline of the GET frame- work, as applicable to GoodMead. Ā e four major phases of transformation—diagnose, plan, enact, and review—interspersed with metrics, are shown in this high-level transformation framework.

Following are the important objectives of GoodMead in undertaking the GET:

Reduction in carbon emissions across all departments and processes of the organization ◾ Compliance with carbon legislations and related carbon initiatives of the government (even ◾ if they are not fully ratifi ed as law)

368 ◾ Green IT Strategies and Applications

Be a leader in carbon management and, thereby, infl uence many business partners in reduc- ◾ ing their emissions Undertake electronic collaborations with partners, government regulatory bodies for moni- ◾ toring and reporting Undertake comprehensive Green BPM program that will enable result in modeling, optimi- ◾ zation, and merger/elimination of processes Aim for a comprehensive and holistic GET that is futuristic ◾ Create positive green attitude across the entire staff through Green HR ◾

SWOT of GoodMead Hospital Figure 12.2 shows the SWOT analysis of GoodMead hospital. Such a SWOT analysis is helpful in u nderstanding t he approach t hat c an be taken for t he GET. For example, GoodMead is a l arge hospital with multiple campuses and departments within them. A SWOT analysis makes it easier to understand how to capitalize on the inherent strengths of the hospital. Ā e areas that will be directly aff ected by the transformation and bear risks will also become evident in such an analysis. In practice, this will be a substantial exercise encompassing all these departments. In this example case study, the SWOT analysis can help understand the scope and coverage of work during this transformation.

Following understanding develops as a result of the SWOT analysis of GoodMead hospital in its “As is” state:

Strengths Well-known public se ctor hospital ◾ . Ā is popularity of the hospital is an important impetus for the hospital to undertake GET. Ā e impact of such transformation will be far reaching, beyond the hospital. Ā ere is signifi cant support to the hospital in terms of patients and corporate. Financially w ell sup ported b y gove rnment ◾ . G oodMead h as b een a fl agship hospital in the region, w ith su ffi cient f unding f rom t he g overnment o ver t he l ast de cade, en abling i t to undertake its services, together with its research and training.

Green Enterprise Trans. “As Is” “To Be”

Diagnose—Preliminary Audit; Identify Drivers and Dimensions;

High-Level Budget

Plan—CGO; Detailed Project Plan; Assign Resources

(Green BPM, Green Mobile)

Enact—Manage risks; Green HR Social and Process Changes

Review—Green IT Metrics/KPIs; Compliance Audits;

Lessons Learnt

Un- Optimised Processes

Patient- Admin

Disconnect

HR and Non- Green

Attitude

Fully Carbon Compliant

Influencing Partners

Positive ROI on Green

Investment

Figure 12.1 GET for GoodMead hospital.

Case Study: A Hospital (Service Organization) ◾ 369

Green IT budget ◾ . A recently elected government has provided additional, specifi c grant to the hospital to enable it to improve its environmental credentials. Reputed teaching and research hospital ◾ . Ā ere is an atmosphere of research and experimenta- tion. Ā erefore, the hospital will be ideally placed to experiment with carbon reduction and wastage reduction across its va rious depa rtments a nd processes. Besides, the staff it h ighly skilled in what it does—including medical, administrative, and IT support.

Weaknesses Aging IT inf rastructure ◾ . Ā e preliminary Green IT audit fi nds that the data center is more than 1 0 ye ars o ld a nd t he av erage s erver i s 4 ye ars i n u se. Ā is i mplies a r apidly a ging infrastructure that is not able to capitalize on the benefi ts of newer server designs and tech- niques for cooling. Furthermore, such infrastructure also implies high overhead costs for its operation. Attitude not conducive to Green IT ◾ . A p reliminary survey carried out during the audit, and one-on-one interviews w ith a fe w volunteer staff indicated clearly t hat t he at titude w ithin GoodMead was not positive toward Green IT. Understandably there was skepticism for the initiative—particularly from the medical staff who considered IT-related carbon savings as not substantial. Carbon i neffi cient processes ◾ . N umerous p rocesses were i dentifi ed at t he o rganization l evel that was carbon ineffi cient. Ā ese processes included patient management, inventory man- agement, and staff ro sters. Ā e I T s ystems supporting t hese s ystems were a lso not c arbon effi cient. Ā is implied the processes were taking unnecessarily long, bureaucratic steps that the activities were re dundant and the systems supporting the processes were d ata intensive

Strength Well Known Public Sector Hospital Financially Well Supported by Govt. Reputed Teaching & Research Hospital Green IT Budget

Weakness Aging IT Infrastructure/High Overhead Costs Attitude Not Conducive to Green IT Carbon inefficient Processes Lack of Collaboration with Partners IT Inexperience (New Technologies)

Opportunity New Leadership (CEO, CIO) Govt. Focus on Environment Green Portals integrated with Regulatory Portals

Uncertainty of Focus Changing Legislations Patient Privacy Risks exposure Infrastructure/Change Management

Threat

GoodMead Hospital

Figure 12.2 SWOT for GoodMead hospital.

370 ◾ Green IT Strategies and Applications

without providing required value. Ā ere were no technology innovations within the systems such as use of Cloud computing or web services. Lack of collaboration with partners. ◾ Especially the supplies to the hospital were arriving unco- ordinated and the hospital’s IT systems were not integrated with those of the supplier. IT inexperience (new technologies) ◾ . While the hospital was advanced in research and training in the medical fi eld, it was lagging behind in terms of experience with new and upcoming information technologies. Ā erefore, there was little initiative from the current IT manage- ment to undertake major changes relating to carbon reduction.

Opportunities New l eadership ( CEO, CI O) ◾ . O ne o f t he m ost si gnifi cant opp ortunity G oodmead h as to develop and implement environmentally responsible business strategies is the formation of the new leadership team. Ā e appointment of the CGO to oversee the entire green transfor- mation and, together with the CIO, report to the corporate board, is an important develop- ment in itself. Government f ocus o n envi ronment ◾ . Ā e re gulatory b odies a re n ow g etting a p ush t hrough government i nitiatives o n c arbon re duction. A s a re sult, n ew l egislative re quirements a re about to b e i mplemented, m aking i t m andatory fo r l arge o rganizations i n pa rticular, to calculate a nd rep ort t heir c arbon em issions. Ā e pa rticular fo cus b y t he g overnment o n organizations t hat a re semi- or quasi-government is providing t he necessary opportunities and impetus to carbon reduction initiatives—such as in this hospital. Green por tals int egrated w ith r egulatory por tals ◾ . Ā e push f rom t he g overnment for c arbon reduction i s n ot o nly a n o pportunity fo r t he h ospital to t ransform i ts b usiness m odels, portfolios, and data centers, but also upgrades its IT systems and portals with carbon data and information. To that eff ect, the government is now providing web services through its regulatory portals that can be used by “consumers” of web services. Telework and telemed- icine—the te lemedicine m arket i s g rowing at a h igh r ate w ith de veloped n ations h aving already i mplemented s everal projects a nd t he te chnology i s b ecoming i ncreasingly a ff ord- able. Ā erefore, there are greater opportunities for reducing emissions through telework and, in particular, telemedicine. More and more economical by the day.

Threats Uncertainty of focus ◾ . While the senior management of the hospital is committed to a green hospital, t here is occasional shift in t he focus due to t he changing nature of t he technol- ogy domain. For e xample, t he so cial a spect of Green I T i s not p ositive at t his s tage, but to bring about a change in that sociocultural domain will require signifi cant training and education of t he staff . Changes w ill a lso be required in t he u ser de vices such a s PCs a nd laptops. Ā ere is high possibility of confl icting objectives and therefore further uncertainty of f ocus. Ā e senior management has to be taking the initiative and remain in charge to maintain focus. Changing legislations. ◾ W hile the government is supporting the initiative and is pushing for GoodMead to b e environmentally responsible, the legislations themselves are not fi rm yet. Ā erefore, t here a re c hanges to t he w ay t he sc opes 1 a nd 2 a re c alculated, c hanges to t he emission benchmarks, and so on. Ā is is creating further uncertainty and risks in formulat- ing and implementing Green IT strategies.

Case Study: A Hospital (Service Organization) ◾ 371

Patient pr ivacy r isks e xposure ◾ . P rivacy a nd c onfi dentiality re quirements o f t he pat ient’s information n eeds to b e p rotected a s t he t ransformation o f te chnical s ystems a nd d ata warehouses takes place. Infrastructure/change m anagement ◾ . Due to t he a ging a nd u nderdeveloped n ature o f t he technical environment, it may be hard to implement some of the technological solutions in which reliability of the service is crucial.

Strategic Concerns of Management Ā e a forementioned S WOT a nalysis pr ovides s ignifi cant i nput i n i dentifying t he d rivers fo r environmentally re sponsible b usiness s trategy ( ERBS) a nd v ice ver sa. Ā e s enior m anagement can start with a general understanding of the drivers for ERBS which, later, get formalized as the SWOT analysis is undertaken.

Figure 12.3 shows t he ke y d rivers for environmental re sponsibility for G oodMead hospital. Out o f t he si x d rivers t hat d rive E RBS ( as d iscussed i n Chapter 2 ), Figure 1 2.3 sh ows so cial- political pressure, and enlightened self-interest as the two key drivers for ERBS. Ā ese two drivers are described as follows:

Sociopolitical pressure: Ā e hospital has a substantial standing in the community. Besides, it ◾ is also a fl agship hospital within the region. Ā ere is signifi cant social and political pressure on the hospital to demonstrate its environmental credentials. Ā is pressure comes from the general community that views the hospital as a symbol of good service-based organization and cross-section of patients (e.g., youngsters, sports-people).

Costs (Energy, Operational)

New Market Opportunities

Social and Political Pressure

Government Legislation

Enlightened Self-Interest

Responsible Business

Ecosystem

Primary Green IT

Drivers for GoodMead

Hospital

Figure 12.3 Drivers for environmental responsibility of business.

372 ◾ Green IT Strategies and Applications

Enlightened self-interest: Ā e senior management of the hospital, the leaders/decision mak- ◾ ers are keen to take up the challenge of changing their processes and internal social attitude to a p ositive, g reen at titude. W hile t hey a re c ertainly b uoyed b y t he ava ilability o f f unds dedicated for t his purpose, t hey a re t hemselves re alizing t he need to u ndertake t his g reen enterprisewide transformation to enable them to remain as a leader in the upcoming carbon economy.

Steps in Developing a Hospital’s ERBS Figure 12.4 shows the major steps in the development of an Environmentally Responsible Business Strategy. Ā is fi gure is ba sed on Figure 2.13, which was discussed in detail in Chapter 2. Here, though, Figure 12.4 not only serves as a reminder for the steps in developing an ERBS for the hos- pital, but also shows the key drivers, dimensions, risks, and metrics for this GoodMead ERBS.

Ā e business objectives of the hospital in becoming a g reen hospital were i dentifi ed earlier ◾ on. Ā ese objectives and visions provide the initial direction for the hospital in its strategy formulation. Ā e d rivers fo r t he o bjectives a re en lightened s elf-interest a nd so ciopolitical pressure on the hospital. Green I T s trategies: Ā ese a re t he m edium ter ms (3–5 ye ar) s trategies t hat a re d riven b y ◾ the CGO and that are based on the drivers and objectives of the organization. Strategies for Green IT also contain elements of risks or threats, as were identifi ed during the SWOT. Green I T policies a nd preconditions: Ā ese a re t he policies t hat a re formed at t he depa rt- ◾ mental l evel a nd a re i mplemented i n p ractice b y t he depa rtmental h eads a nd/or p rocess

Business Objectives in

becoming Green

Green IT Strategies

Green IT Policies and

Preconditions

Green IT Resource Plans

Green Transformation

Plans

Good/Mead Hospital’s

Dimensions (Process and

Social)

Drivers • Self-interest • Socio-political

• Per Patient • Per Staff

Risks (Privacy)

KPIs

Figure 12.4 Steps in developing an ERBS.

Case Study: A Hospital (Service Organization) ◾ 373

owners. Ā ese p olicies re lated to p rocurement o f n ew e quipments ( Energy S tar r atings), changes to processes and delivery of training to staff . Green IT resource plans: Ā ese include details of resources required in undertaking trans- ◾ formation. For example, in case of GoodMead, the green transformation team itself would be lead by CGO, supported by the Green HR (as shown in Chapter 8) and will be interact- ing with the operational staff (doctors, nurses, administrators). Resource plans also include budgets and resources for procuring and implementing CEMS. Ā e success of the transfor- mation can be measured here based on Green KPIs (see chapter 2). Green transformation plans: Ā ese are the business transformation and change management ◾ plans that will focus on the dimensions and the work areas as described in Chapter 9.

Green Transformational Elements Putting together the discussions thus far, Figure 12.5 shows the major green transformational ele- ments of GoodMead hospital. Ā e overall green transformation framework is shown on top with the various important elements underneath. Ā ese elements are as follows:

Ā e d rivers a nd a reas o f i nfl uence. Ā e d rivers fo r G oodMead a re sh own e arlier i n ◾ Figure 12.3. Ā e major dimension along with the GET will take place. Ā is is the process dimension also ◾ supported by the social dimension for transformation. Ā e demographics of the organization can play a role in deciding on the type of transforma- ◾ tion, its budgets, and its resources. In case of GoodMead hospital, these demographics are large-sized service organization in a metropolitan city of a developed region.

GET framework

Green Drivers and Areas of Influence

Major Dimension- Processes

Demographics (Type, Size, Location)

Maturity (Possibly Level 1)

G re

en , L

ea n

H os

pi ta

l

Systems and Lifecycle

At tit

ud e

Wa stag

e

Data Centre

User Devices

Figure 12.5 GoodMead hospital’s major green transformational elements.

374 ◾ Green IT Strategies and Applications

Maturity of GoodMead in terms of its Green IT performance is very basic (Ā is cannot be ◾ fully ascertained at the start of the project as the process for measuring itself are not matured enough. However, a rough indication of the maturity level can be provided.).

Once these aforementioned aspects of GoodMead are ascertained, the transformation of the hospital can be undertaken as follows (also shown in Figure 12.5):

User de vices—Measuring, u pgrading, a nd re cycling m onitors, P Cs, l aptops, a nd m obile ◾ phones; desktop virtualization; centralized green services Data center—Virtualization, optimization; self healing networks; network topology, database ◾ design, hardware and software components, security issues, and backup strategies. Redesign of data center to include fl exibility and agility to enable easy upgrades of future infrastructure Systems and lifecycle—IT systems supporting hospital processes like booking, consultation, ◾ diagnosis, t reatment, p rescription, a nd e ducation; E quipment p rocurement, i nstallation and u sage; integration of supply chain w ith local a s well a s overseas pharmacies a nd d rug suppliers. Interaction with government and other regulatory bodies should also be enabled electronically Wastage—Electronic waste resulting from unused or broken devices; also, due consideration ◾ is given to areas of bio waste Attitude—Undertaking training and consulting programs for staff (doctors, nurses, admin) ◾ and promoting it amongst patients and business partners. Internet-based system to facilitate global management of the administration, rosters as well as the most HR (human rela- tions—People) functions. Change management for telework and telehealth

The Green Transformation Project Ā e overall GET project is to last between 12 and 18 months, with the full carbon value realized over 3 to 5 year’s strategic time period. $ 1 million is the budget sanctioned by the corporate board and the CGO is authorized to undertake this transformation.

Figure 12.6 shows greater details of the 18-month GET plan. It is divided into six quarters of 3 months each.

First quarter: Ā e fi rst quarter of the hospital transformation is primarily focused on inves- ◾ tigation and diagnosis. Ā is work includes identifi cation of the key drivers for green trans- formation (in c ase of t he hospital it is sociopolitical a nd en lightened self-interest). Du ring the fi rst quarter, the CGO will lead the strategic planning for the hospital, creating a 3 –5 year actionable strategic plan. Ā is plan will also include the return on investment metrics for the hospital. Second q uarter: Ā is i s t he q uarter w here en actment o f t he p lan cre ated i n t he p revious ◾ quarter takes place. In case of GoodMead, the enactment of GET in this quarter deals with the process dimension of transformation. Ā erefore, Green BPM (as discussed in Chapter 5) comes i n to p lay d uring t his q uarter. I n t he c ontext o f t he h ealth-care i ndustry, p rocess changes require extensive modeling, verifi cation and validation, and tools support. Carbon content o f t he ke y p rocesses n eeds to b e e stablished b eforehand. Ā is will happen in an approximate way in the diagnosis phases. Here, in the Green BPM activities, processes are reengineered and their carbon contents calculated again to ensure it has indeed reduced.

C ase

S tu

d y: A

H o

sp ital (S

e rvice

O rg

an izatio

n )

◾

375

WORK AREAS of Work

Phase Description 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 5th Quarter 6th Quarter

1 Drivers; Strategic Planning; Cost Benefit/ROI

2 Diagnosis; Maturity; Develop GET Plan; Resourcing

3 Enactment of GET—Process Dimension (Process Modeling, Green BPM)

4 Enactment of GET—Social Dimensions (Staff Training; Green HR)

5 Review—Measurement of KPIs; Maturity; Plan Green IT Audits

6 Review—Maturity and Feedback; Rework Outstanding Areas

7 Collaborative Partner’s Processes— Diagnosis and Plan

8 Help Partners Enact GET

9 Feedback and Fine Tune Hospital Processes

10 Green IT Audits

11 GET Program Management

Figure 12.6 An 18-month GET project plan for GoodMead.

376 ◾ Green IT Strategies and Applications

Ā ird quarter: In case of GoodMead, this quarter of GET is dedicated to transformation of ◾ the social dimension. Ā erefore, t his quarter focuses on t he at titude a nd behavior of indi- vidual staff . Social dimension also becomes important in a service organization as the out- put of the organization is the service to the customer (patient in this case). Ā us, while the employees are equipped here with training that enables them to tap into the environmental data, information and k nowledge within the organization, the patients, and the society in general i s updated w ith t he c hanges o ccurring w ithin t he hospital. Metrics a nd measure- ments associated with the social dimensions come in to play. Fourth qu arter: Ā is q uarter i s fo r t he “ Review” p hase o f t he t ransformation. Ā ere fore, ◾ there i s heavy fo cus on measurements ba sed on t he e arlier de fi ned metrics. Ā e se include the Green K PIs—such as CO2E per computer/laptop/mobile, CO2E per Staff member or per patient, KPIs associated with recycling of computers. Ā e K PIs can a lso be fi ne tuned for ongoing and continuous improvement in the future. Review phase can include Green IT audit to a scertain t he maturity of t he organization. Reduction in complexity of processes, improvement of quality of service and compliance with legislative requirements are included in the criteria for success. Fifth quarter: If the Review phase indicates success in terms of GET, then the organization ◾ like GoodMead needs to immediately focus on providing the transformation support to its partners. Ā ese a re t he pharmaceuticals, l aboratories, e quipment suppliers a nd, of c ourse, various patient-related bodies such as medical insurance providers. Sixth quarter: Ā is is the quarter where feedback from the transformation will have a sub - ◾ stantial eff ect on t he next steps by t he hospital. Formal external Green I T aud its a re con- ducted in this quarter and compliance with the regulatory requirements can be formalized. Ā is quarter also starts an ongoing journey for environmental program management for the hospital that will work closely with the Green HR function in ensuring Green IT specifi c roles are maintained, and individuals working in those roles are motivated and trained.

Figure 12.7 shows the returns on the GET project for GoodMead hospital. While these returns are not the core drivers for the ERBS, they are still important to prove two key points: (a) the GET is closely tied with the profi ts and (b) GET will lead to increase in the overall performance.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2009 2010 2011 2012 2013

Re tu

rn s P

er Y

ea r

Year

GoodMead Green IT ROI

No ERBS With ERBS

2

1

Figure 12.7 GET cost-benefi t (ROI) analysis.

Case Study: A Hospital (Service Organization) ◾ 377

Graph 1 in Figure 12.7 shows the growth of the organization and its returns over 4 years with the business as usual. With the investment in the ERBS, the initial expense is higher and therefore the net re turns for t he fi rst ye ar a re lower—this i s v isible i n Graph 2 i n Figure 12.7. However, over the period of next 3 years, the overall effi ciencies and eff ectiveness resulting from ERBS also produce returns on the original investment to “go green.”

Social Dimension in Hospital GET Changes to t he so cial d imension o f t he h ospital i s pa rticularly b rought a bout d uring t he t hird quarter of the transformation. Ā ese changes include the following:

Creation and delivery of training programs for staff at a ll levels: Ā ese t raining programs ◾ range f rom a 2 -hour s eminar on w hat Green I T means t hrough to t he de tailed 3 –5 d ays worth o f t raining ( spread o ver 3 –5 we eks to en sure m inimal d isruptions to t he n ormal working of the hospital). Review of attitude toward Green IT through quick surveys and feedback: Ā ese surveys can ◾ be run online within the hospital’s systems ensuring immediate collation and analysis of the results. Surveys a re re quired b efore a nd a fter t he t ransformation—in t his c ase i n t he fi rst and after the fourth quarter. Use of IT systems support to re duce the routine pressures on doctors beyond the needs of ◾ their own specialist or generalist skills. Ā is would be the result of Green BPM, but is also requires training for the doctors to enable them to use the new green processes. Implementation of metrics to provide real-time feedback to users on their daily carbon foot- ◾ print: A CEMS implementation is inevitable in GoodMead; and such a CEMS will provide the necessary means of capturing and using carbon data on a regular basis. Creation of telework program for support functions: Some admin. and support functions in the ◾ hospital can benefi t by telework. For example, scheduling of rosters, billing of patients and some HR functions can be partially carried out by support staff through Telework. Ā is will create opportunities to reduce people and equipment movement, and also reduce carbon emissions. Telehealth: It does more than provide assistance of patients in need of medical support but who ◾ are not in physical proximity of a medical offi cer. A physician or a health-care specialist using telehealth also, directly and indirectly, contributes to reduction in the carbon of that process; improve health support in remote regions; education, research, and administration in the fi eld of medicine can be improved through telemedicine without increasing the carbon footprint. Development of a Green HR function that includes training, reward, and growth structure, ◾ particularly for admin and support staff , in terms of Green IT.

Technology Changes in Hospital Technology c hanges i n t he h ospital a s t he g reen en terprise t ransition p rogram g ets u nderway relates to t he u ser de vices, d ata c enter, e quipments, a nd w astages. F ollowing a re t he te chnical changes during GET:

Replacement of servers to the low-carbon emitting servers in the data center. ◾ Gradual replacement of devices to low-carbon devices. ◾

378 ◾ Green IT Strategies and Applications

Changes to the current backup, including off -site backups of data on the data servers. ◾ Upgrade of IT systems to automate processes. ◾ Upgrade to the EPR by implementing a strategy to move it on the Cloud. EPR can enhance ◾ medical record documentation and optimize the consulting process of the doctor with the patient. De spite t he r isks a ssociated w ith t his s trategy—particularly f rom p rivacy v iew- point—the ap proach o f u sing t he C loud fo r E PR i s l ikely to p rovide si gnifi cant carbon reductions. Paper-less medical reports to reduce not only the paper wastage, but also time and eff ort in ◾ maintaining the manual records is saved. Collaboration with partners—such as sending of prescriptions electronically, or sourcing of ◾ medical drugs using web services. Green BPM for processes, i ncluding ordering a nd re trieving l aboratory te sts, prescription ◾ writing, consultation or referral notes, and billing. CEMS will be involved in recording carbon data that corresponds to various clinical activities. ◾ For example, consultation with a patient can be recorded in terms of time, types of examina- tions, reviews, progress notes, prescriptions, and follow-up consultations. Pathological tests and the delivery of results to the physician’s computer will also be calculated for its carbon contents. CEMS will be measuring and monitoring the hospital processes surrounding staff roster- ◾ ing. While the actual rostering process is currently a combination of the HR system and some whiteboard manual process, CEMS will be confi gured to m easure t he “ slack” i n the rostering process. Ā e principles of “Lean” business can be applied here to reduce the slack and tighten the process. Corresponding reduction in carbon can also be calculated based on reduced rostering overheads, reduced or elimination of double booking of staff , and so on. User devices changes includes end-user devices such as PCs in the consulting rooms, exami- ◾ nation rooms, nursing workstations, and administrative hardware. Communications and network equipments. Network infrastructure includes virtual private ◾ network ( VPN) fo r h igh-speed c ollaboration w ith o ther h ospitals, s ervice p roviders, a nd paterning organizations. Local area network (LAN) supports local communication within the GoodMead precinct. Non-IT e quipments a nd t heir l ifecycle h as to b e sub ject to t he G reen P -O-D. Ā es e ◾ equipments, such as are used in operating theatres or X-rays or in the pathological tests may not c ome d irectly u nder I T domain, but a re still signifi cant c ontributors t o c arbon emissions. Electronic wastage—policies and procedures. Ā ese have to discussed, updated and brought ◾ in practice through training of staff .

Applying Mobile Technologies in GET Ā e use of mobile technology in the health-care services can provide substantial process benefi ts that also translate to c arbon advantages. Ā ese various mobile advantages to Green IT were d is- cussed earlier in this book. A large number of hospital staff , such a s t he physicians, nurses, a nd administrative staff are using mobile laptops, blackberries, and iPhones to connect for both work and social networking. Following are the specifi c advantages that mobile technologies off er to the major users in GoodMead hospital from a carbon reduction viewpoint:

Case Study: A Hospital (Service Organization) ◾ 379

Doctors Mobile technology can reduce carbon throughout the physician’s work and social processes. For example, h andheld to ols de dicated to a p hysician’s ro utine ( e.g., TouchWorks f rom A llscripts Healthcare Solutions) can provide instantaneous data and information to the doctor. Ā is can not only improve health-care services to patients and eliminate geographical distances but also reduce carbon content of the service.

GoodMead is providing dedicated health-care mobile tools and supporting technologies to all doctors that will enable them to serve the patients most effi ciently, engage in c onversations a nd conferences through their devices, and have fast access to patients’ data. Ā e actions taken by the physician are also documented through the device, enabling easy tracking of actions when a staff member hands over the care of a patient to another member.

Nurses Ā e u se of mobile te chnology i s a lso helps t he nursing s taff to c oordinate w ith t he do ctors a nd the pat ients o n a re gular ba sis. G oodMead fi nds t hat t he u se o f h andheld de vices b y n urses i s improving the consulting/advisory roles that nurses play (especially in a p ostoperative situation). Furthermore, m obile de vices a lso i mprove t he v ital re cord ke eping o f pat ients w ith h igh e ffi - ciency and no physical paper. Checking the availability of doctors, quick consultations with doc- tors, h anding o ver d uring t he sh ifts a nd p ersonal H R d ata a ccess—all o f t hese p rocesses a re improved for nurses through the use of mobility in the hospital which, in turn, has reduced carbon footprint.

Patients GoodMead as a large, public sector health-care provider needed to provide excellence in ser- vice without the carbon overheads. Use of mobile technology has given greater fl exibility for the patients w ithout being physically go to t he hospital for c heck up. Starting right w ith t he u se of the mobile phone, patients are now able to connect using various PDAs and mobile laptops. Ā is has reduced patient movement, patient queuing and has provided location-independent advise to patients where they needed it most. Additional mobile gadgets that monitor patient data remotely, provides it to the hospital and also raises relevant alerts has optimized the processes and reduced their carbon contents.

Suppliers (e.g., Pharmacies) Mobile technology improves receiving and ordering processes between hospital and its drug sup- plier. I n a ddition, it a lso provides b etter m anagement a nd s torage s ystem. G oodMead h as pro- ceeded w ith M obile S olutions, a h andheld de vice f rom C ardinal H ealth, w hich h as sc anning facilities based on a pocket PC. Ā is device enables GoodMead’s staff to work directly with hospi- tal inventory, resulting in optimized inventory for the medical drugs and also medical equipments in use.

380 ◾ Green IT Strategies and Applications

Lessons Learned in Implementing Green IT Strategies Following are the lessons learned as a re sult of the GET initiative for the hospital. Ā e se lessons indicate the signifi cant role of Green ICT in the hospital domain.

Strategic reduction in carbon will require signifi cant changes in the social, process, and also ◾ technical dimensions of the business. Ā ese changes are across the board and not restricted to a single department or process. Service organizations a re pa rticularly i nfl uenced by customer expectations. In the case of ◾ GoodMead, the patients and the society in general was more keen to see the hospital become a green hospital, as compared with the internal staff and administrators. Telework and telehealth are likely to play a signifi cant role in not only improving the busi- ◾ ness processes of the hospital, but also its carbon emissions record. Operational c arbon reduction i s more e ff ective when processes a re to be changed a s com- ◾ pared with the changes to the procurement and disposal cycle. Training and education play a signifi cant role in carbon reduction in a hospital—and similar ◾ service organizations—as they bring about a change in attitude and approach to Green IT restructuring to Green HR is also a signifi cant boost to the carbon reduction eff ort from a social angle. Changes to I T systems that support business and technical processes should be made with ◾ the backdrop of environmental intelligence. Simple carbon data mining will not provide strategic value of directions for a transforming organization. Ongoing m onitoring o f r isks a ssociated w ith GE T sh ould b e p lanned fo r en acted. Ā es e ◾ risks are not restricted to only the main dimension for transformation but can emerge from any of the four dimensions.

381

13 Chapter

Case Study in Applying Green IT Strategies to the Packaging Industry

Key Points Presents h ow G reen I T c an b e ap plied to a p roduct-type c ompany i n t he m anufacturing ◾ sector Outlines a hypothetical organization, AuPack, involved in manufacturing packaging prod- ◾ ucts for various types of clients Discusses the importance of ISO 14001 application in the manufacturing sector ◾ Stresses the importance of recycling and take-back programs by product developers in reduc- ◾ ing t he overall c arbon footprint (and how g reen i ntegrated supply c hain s ystems c an help achieve that)

AuPack Scenario AuPack is a hypothetical organization in the business of manufacturing packages and contain- ers that, in turn, are used by other manufacturers of goods and products. Medium in size in the context of the developing nation from where it operates, AuPack has established itself over the last decade as a reliable, honest organization. AuPack has around 10,000 workers (which classifi es it as a medium-sized company in the region where it operates) and a forward looking corporate board led by a recently appointed young CEO. AuPack is keen to move forward in the area of Green IT. Ā e carbon emissions from its production lines are on the rise, and also the electronic and other wastages. Ā e wastages, in particular, are not just restricted to the organization but are occurring

382 ◾ Green IT Strategies and Applications

at an alarmingly high rate with the end-users of the contents of the packages. Ā e local regulatory authorities are also showing interest in AuPack’s carbon footprint.

Ā e p roducts o f A uPack i nclude va riety o f pa ckages t hat a re m ade u p o f m aterials suc h a s cardboard, foam, plastic, choir, and rubber. Ā ese packages or containers are sold to other manu- facturers w ho u se t hem to w rap, s tore, a nd d istribute t heir own products, i ncluding fo od (raw, fi nished, liquids), medical drugs, equipments, and electronic goods (such as TV, computers, toys). Ā e containers produced by AuPack, therefore, need to range from boxes, tubes, and bubble-wraps through to tin cans and jars—to name but a few. Customization of these packaging products for specifi c customers is a regular occurrence.

Manufacturing of the packages requires materials to b e sourced, planning of the production process, inventory of produced packages, and a customer management system. Ā ese are business processes that are a combination of manual, paper-based, and electronic (local, spreadsheet based, and system supported) processes.

A recent internal audit revealed that the organization has around 350 desktop machines, close to 100 laptops, and two large data servers in a small, backend data center. Most PCs have been in use for 5 or more years, have cathode ray tube (CRT) monitors, and are used by accountants, pro- duction shift managers, and administrators. Connectivity for most machines is provided through internal LANs and WANs and externally using a combination of virtual private network (VPN) (especially w ith dedicated c orporate c lients) a nd t he Internet. Ā e h ardware of t he organization is used to r un variety of applications including AuPack’s assets and inventory management, cus- tomer service, fi nancial management, procurement, and HR/Payroll. Data corresponding to these applications is stored in the underlying data warehouse of AuPack on the two servers. A signifi - cant part of the production and inventory data is collected from the shop fl oor automatically and updated in the data warehouse.

Following are the current observations of the CEO together with the internal auditor in terms of AuPack’s situation from environmental sustainability viewpoint:

Raw materials for packaging are available in abundance. In fact there is excessive availability ◾ of raw materials particularly from the regions where AuPack is located. Workers are dedicated to t he company. However, most workers have had very basic educa- ◾ tion, and in some cases no education at a ll. While expert in particular production process, these workers had no current interest in Green IT or carbon reduction. Wide customer base from both developed and developing region with the business from the ◾ developing regions on the rise. Network of transporters who partner with AuPack to bring in raw materials as well as deliver ◾ blank, ready-to-go container packages, typically to the corporate customers. Continuously changing needs of customers—as their products are changing too. Ā ere fore, ◾ there is hardly ever a mass production of packages and most production runs are customized and the production and planning departments are continuously on their toes. Ā is requires substantial c omputing s ystems su pport—especially i n t he pa ckage de sign offi ce and the shop fl oor. Other departments of AuPack, that are under the direct infl uence of these changing require- ◾ ments are sales (as the orders keep changing regularly), fi nancial (as it is a challenge to ascer- tain the exact cost and, therefore, the way in which the product should be priced), customer service (in terms of current management of expectation and future handling of issues arising from nonstandard packaging) and, eventually, legal department (as the packaging products are sold worldwide).

Case Study: A Packaging Company (Product) ◾ 383

Figure 1 3.1 su mmarizes t he o verall ap proach to G reen en terprise t ransformation (GET) o f AuPack. Ā e “as is” state is ascertained through an initial investigation based on an early, approxi- mate G reen I T aud it. S uch a n aud it, a s d iscussed i n Chapter 10, wo uld n ot b e v ery p recise a s the organization itself is not matured enough to re veal exact data in terms of its emissions. Ā is investigation, based on the personal initiative of the chief executive offi cer (CEO), indicated to the board for an urgent need for a Green IT strategy and subsequent action. Ā e carbon legislations in the region are becoming stringent, and even more importantly, in the overseas geographical regions w here A uPack’s b usiness i s g rowing (such a s t he E U c ountries). Ā e “to b e” o r de sired state, according to the initial vision statement of the CEO, is for AuPack to be a lean-green orga- nization. Ā is ter m i ndicates t hat t he o rganization i s i nterested i n both cost a nd c arbon i ssues and not one over t he other (this philosophy of a G reen IT strategy was d iscussed in Chapter 2 , Figure 2.1). Apart from reducing its carbon footprint and becoming a lean organization, AuPack is also interested in making use of and complying with the ISO 14001 standard. Ā is, the CEO believes, will also help AuPack promote itself in the EU region where it is likely to do greater amount of business. Ā e center part of Figure 13.1 shows, in a summary, how AuPack will under- take t he GE T. Ā e d iagnose, p lan, en act, a nd re view p hases o f t he GE T p rocess, d iscussed i n Chapter 9 will be applied to the four areas of an organization that need to change—the end-user devices, the data servers in the data center, the supply chain lifecycle and the way in which elec- tronic wastage is handled.

AuPack’s Green IT Strategies As a re sult of t he initial aud it, t he CEO has appointed a n ew CGO—the chief green offi cer. Ā is lady, w ith a n IT background, currently leads t he computer-aided design (CAD) depa rt- ment of AuPack. Ā is department has been heavily involved in the use of computers to create new pa ckaging de sign ba sed o n c ustomer re quirements. A s a depa rtmental h ead w ith m ore than 5 ye ars of leadership experience, she had su ffi cient independence f rom t he current CIO

Green Enterprise Trans. “As Is” “To Be”

Medium Sized

Product- Based

Unoptimised Processes

Callous Attitude

Lean-Green

ISO 14001 Compliant

E-and M- Collaborative

(using EI)

Automated (CEMS)

Diagnose Plan

Enact Review

Devices Servers

Lifecycle Wastage

Figure 13.1 GET for AuPack packaging.

384 ◾ Green IT Strategies and Applications

but, at the same time, is aware of the functioning of the organization and has IT background. Ā e CGO h as gone t hrough t he i nitial Green I T aud it report, d iscussed it w ith t he aud itors and a lso w ith t he C EO a nd h as i mmediately fo rmed a wo rking g roup. Ā is w orking gr oup will become the GET team that will undertake the change. Ā e approach taken by the CGO is summarized in Figure 13.2. As shown in that fi gure, the strategic approach by the CGO is as follows:

Immediate focus on use and capitalization of technologies with the creation of a Green IT ◾ portal. Use of the portal itself for reporting on carbon compliance by the organization. Launching of a GET program that is going to enable compliance with ISO 14001 standard; ◾ however, this program has to work along side the existing ISO 9001 compliance and certi- fi cation program of AuPack. Understand t he g rowing en vironmental aw areness o f a ll i ts c ustomers—with t he i nput ◾ derived f rom t he c ustomers (especially c orporate c ustomers) t hrough t he Green I T p ortal itself. Extend the current process optimization initiative to make it a formal Lean process imple- ◾ mentation that will also be measured and reporting for corresponding green-ness. Develop a g reen m arket t hat w ill b e sp ecifi cally ba sed o n t he l ean-green p rocesses ( e.g., ◾ optimized pa ckage de signs, u se of biodegradable m aterials i n pa ckaging a nd t ake ba ck of discarded/consumed packaging material through a reverse supply chain). Form a consortium of like minded businesses in the region and provide leadership through ◾ initial experience of GET. Infl uence and be infl uenced by customers and suppliers in terms of carbon compliance. ◾

Green IT Portal; Compliance Reporting

Quality and Environment (ISO 14001, ISO 9001)

Green Business Eco System

Green Market and Social Value

Lead Green Consortium

Lean—Green Business Value

Meet Customer Awareness and Demands

Direct Value

to AuPack

Influence Beyond AuPack

Figure 13.2 AuPack strategic approach.

Case Study: A Packaging Company (Product) ◾ 385

SWOT of AuPack in Green Context Figure 1 3.3 i ndicates t he c urrent s trengths, we aknesses, o pportunities, a nd t hreats re lating to AuPack. Ā is S WOT a nalysis, h owever, i s w ith a pa rticular fo cus o n G reen I T. Ā e strategic approach, undertaken by the CGO, indicates that this analysis will eventually be part of the overall s trategic approach of t he business itself. Cu rrently, however, t his S WOT a nalysis shows AuPack’s Green IT challenges and capabilities.

Green IT Strengths Ā e incoming CEO realizes that for AuPack to survive and prosper in the carbon economy ◾ there is a need to cre ate and implement a c omprehensive Green IT strategy. Ā is visionary leadership in itself is a s trength of t he organization a nd is recognized by t he CGO who is able to work closely with the CEO. AuPack i s progressing we ll fi nancially w ith its business a nd its profi t m argins a re on t he ◾ rise. Ā is growth is a positive opportunity for its Green IT initiatives, as there is a budget for the GET. Material-savvy region, with more than a decade of experience in packaging/container pro- ◾ duction. Ā e processes a ssociated w ith procurement of r aw m aterials a re m anual, but t he processes a re working well. Ca reful automation will create opportunities for optimization and, thereby, reduce both carbon and costs. Strong d istribution n etwork fo r t he pa ckages a nd c ontainers p roduced b y A uPack. Ā is ◾ distribution network includes strong partnership with local and overseas transporters. Some

Strength Weakness

1. Visionary leadership through the new CEO and corresponding CGO

2. Growing business with sufficient funds— enabling easier green IT initiative

3. Material-savvy region, with more than a decade of experience in packing/container production

4. Strong distribution network—particularly overseas customers

1. Aging infrastructure—especially technical assets such as computers (desk tops and servers)

2. Workforce only experienced in package production—not necessarily IT literate

3. Non-serious attitude of most workers toward carbon footprint

4. Noticeable wastages in packaging products and IT

Opportunities Threats

1. Leadership in packaging materials and designs 2. Potential to leap-frog in terms of computing

technologies by directly using the latest, low carbon emitting machines and servers

3. Acceptance of ideas by partners—customers and suppliers—thereby creating leadership in the Green IT/carbon compliance space

1. Attitude of majority of staff 2. Differences in compliance requirements

of the developing region versus the developed regions where customers are located

3. Inexperience in undertaking GET in the region

Figure 13.3 SWOT analysis of AuPack.