9780137010172

Blueprint for driving competitive advantage with Green Business, from an IBM innovator in environmental stewardship--Proven techniques any business can use, based on IBM's breakthrough Green Business programs, products, strategies, and Green SigmaTM methodologies.-Establish effective green strategies and transformation plans, link them to operations, apply them, and track the results.-Includes coverage of powerful new Smarter Planet technologies that deliver value by 'instrumenting the planet' Better Green Business brings together practical insights and start-to-finish strategies for moving any enterprise to a higher level of environmental stewardship. Drawing on his extensive experience at IBM, Dr. Eric Olson shows how to systematically drive 'win-win-win' gains: growing top-line revenue, helping customers increase efficiency, and improving the environment at the same time. Olson's business-focused guidance covers every step of your green business program, from strategy formulation through continuous improvement. He first offers a complete framework for approaching and formulating green strategy, using case studies to identify potential opportunities and business benefits. Next, using real case studies, he demonstrates how to define initiatives, construct roadmaps for transforming vision into reality, and link each investment to business strategy, so businesses can accurately measure results. Olson introduces powerful business process transformation methodologies and technologies for increasing operational efficiency and reducing waste, including IBM's breakthrough Green Sigma approach. He also identifies new opportunities to drive value by 'instrumenting the planet,' and introduces new technologies that make this possible. Finally, Olson assesses long-term trends that will make 'green business' even more crucial in the coming years. Dr. Eric Olson has 20+ years' experience in management consulting and industry, working with organizations of all sizes in many industries. His experience spans business, operations and IT strategy development, ecommerce and e-business, innovation management, process and supply chain optimization, procurement and strategic sourcing, corporate mergers and joint ventures, and environmental stewardship. He holds B.S. and Ph.D. degrees from Cornell University, an M.B.A. from the Massachusetts Institute of Technology-Sloan, and an M.S. from Rensselaer Polytechnic Institute. He is a member of the American Society of Mechanical Engineers and a licensed Professional Engineer.

DR. Eric G. Olson has more than 20 years of experience in management consulting and industry, working with organizations of all sizes in multiple industries. His experience spans business, operations and technology strategy development, e-commerce and e-business, innovation management, process improvement, supply-chain optimization, procurement and strategic sourcing, corporate mergers and joint ventures, and environmental stewardship. He holds BS and PhD degrees from Cornell University, an MBA from the Massachusetts Institute of Technology-Sloan, and an MS from Rensselaer Polytechnic Institute. He is also a member of the American Society of Mechanical Engineers and a licensed Professional Engineer.

Preface	p. xv
Establish a Strategy and Transformation Plan	p. 1
Driving Forces and Challenges That Organizations Face	p. 3
Environmental Stewardship Presents New Growth Opportunity	p. 3
Leaders Are Already Taking Action	p. 4
Driving Forces Are Aligned Like Never Before	p. 6
Foundational Drivers	p. 8
Impacts from Drivers Lead to Adverse Consequences Without Environmental Stewardship	p. 11
Risks That Require Mitigation to Manage Drivers and Capture Business Value	p. 14
Develop Green Strategy with Rigor	p. 21
Formulate Green Strategy to Complement Traditional Strategy	p. 23
The Role and Scope of Green Strategy Is Broad	p. 23
Foster a Common Culture of Awareness and Action	p. 24
Lead by Example	p. 25
Install Appropriate Tools	p. 26
Provide Training	p. 26
Measure and Report Performance	p. 27
Make It Everyone's Responsibility	p. 27
Communicate with the Workforce and Others	p. 28
Manage Cultural Change and Risk	p. 28
Complement and Strengthen Traditional Business Strategy	p. 29
Brands and Market Positions	p. 30
Products and Services	p. 33
Channels and Partners	p. 38
Locations and Geographies	p. 41
Green Strategy Supports Operational Improvements	p. 43
Drive Operational Decisions and Initiatives That Improve the Environment	p. 43
Processes, Supply Chains, and Facilities	p. 43
Organizational Roles, Skills, and Core Competencies	p. 47
Data Visibility, Reports, Systems, Platforms, Hardware, and Equipment	p. 49
Support Actions with Attractive Value Propositions	p. 51
Steps to Develop a Green Strategy	p. 54
Make Green Strategy Actionable with a Proven Approach	p. 59
Use Leading Practices for Making Strategic Visions Actionable	p. 59
Formulate Green Strategic Vision and Imperatives	p. 60
Determine Enabling Green Business Capabilities	p. 62
Establish Future-State Organization, Process, and Technology Needs	p. 65
Describe Current State and Assess Gaps with Future State	p. 68
Define and Prioritize Transformation Initiatives	p. 72
Establish Transformation Roadmap and Future-State Blueprint	p. 75
Manage Transformation, Measure Performance, and Sustain Improvements	p. 77
Refresh at Regular Intervals	p. 77
Ten Critical Success Factors for Transformation	p. 78
Apply Proven Transformation Methods	p. 83
Transformation Methods and Green Sigma	p. 85
Transformation Methods Facilitate Implementing Initiatives	p. 85
Step 1 Defines Key Performance Indicators	p. 90
Step 2 Establishes a Measurement System	p. 93
Direct Measurement of Carbon Emissions	p. 96
Indirect Measurement of Carbon Emissions	p. 99
Direct and Indirect Measurement of Water and Other Natural Resources	p. 100
Step 3 Deploys a Management Dashboard System	p. 101
Step 4 Improves and Optimizes Processes	p. 103
Voice of the Environment (VOE) Value Stream Mapping (VSM)	p. 104
Statistical Process Control (SPC) and Design of Experiments (DOE)	p. 104
Step 5 Controls Ongoing Performance	p. 105
Applying Green Sigma to Optimize Carbon Emissions	p. 107
Step 1 Defines Key Performance Indicators	p. 107
Step 2 Establishes a Measurement System	p. 108
Measurement System for Business Travel	p. 108
Measurement System for Employee Commuting	p. 109
Step 3 Deploys the Management Dashboard System	p. 110
Step 4 Improves and Optimizes Processes	p. 111
Control of AHU Scheduling	p. 112
Adoption of Environmental Control Best Practices	p. 114
Use of Design of Experiments (DOE)	p. 115
Step 5 Controls Ongoing Performance	p. 116
Eliminating Waste	p. 116
Reducing Variability	p. 117
Case Study Summary	p. 118
Technology Innovations and Solutions	p. 121
Instrumenting the Planet for an Intelligent, Sustainable World	p. 123
Benefits from Instrumenting Our Planet Are Enormous	p. 123
Growing Demand and Increased Scarcity of Resources	p. 127
Growth of Real-World Sensing	p. 128
Models for Managing Real-World Systems	p. 130
Applications of Models in an Instrumented World	p. 134
Electric Power Supply Management	p. 135
Water Management	p. 136
Traffic and Public Transportation Management	p. 137
Wind Farm, Solar-Electric, and Solar- Thermal Power Management	p. 138
Intelligent Levee Management	p. 138
Data-Centric Modeling of the Environment	p. 139
Technology That Supports Instrumenting the Planet	p. 141
Challenges on the Path to an Instrumented World	p. 141
Meeting the Need for Standard Interfaces to Support Mathematical Models	p. 141
Establishing Consistency Among Fragmented Data Sources	p. 142
Sharing Data and Using Distributed Collaboration Tools	p. 142
Real World-Aware Systems and Interactive Models	p. 143
Edge Domain of a Real World-Aware System	p. 144
Transactional and Business-Processing Domain of a Real World-Aware System	p. 145
Stream-Processing Domain of a Real World-Aware System	p. 145
Advantages and Illustrations of Real World-Aware Systems	p. 146
The Application Layers and Technical Architecture of Interactive Models	p. 147
Examples of Instrumented World Systems	p. 149
Leading Toward the Future in an Instrumented World	p. 154
Business Considerations for Technology Solutions	p. 157
Many Solutions Are Available or Developing	p. 157
Macro-Level Environmental Models	p. 159
Transformation Methodologies	p. 159
Diagnostic Tools	p. 160
Targeted Point Solutions for Alternative Energy Production	p. 161
Electricity from Photovoltaic, Solar Cells	p. 162
Electricity from Wind Turbines	p. 163
Electricity from Water, or Hydropower	p. 164
Energy from Biomass	p. 165
Thermal Energy Alternatives to Fossil Fuels	p. 166
Targeted Point Solutions for Efficiency and Resource Management	p. 167
Efficiency from Green Computing Solutions	p. 167
Efficiency from Green Product Solutions	p. 168
Efficiency from Green Building Construction	p. 169
Environmental Stewardship through Recycling and Water Reclamation	p. 170
Conclusions	p. 173
Critical Trends Shaping the Future	p. 175
The Imperative for Change Will Continue and Strengthen	p. 175
The Role of Government Will Grow and Align Globally	p. 178
Environmental Intelligence Will Integrate with Traditional Operations	p. 180
Businesses That Master Green Strategy Will Win in the Marketplace	p. 182
Endnote References	p. 185
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Preface PrefaceIn today's information age, plenty of news reports and corporate pronouncements on environmental stewardship abound. But these show only a sample of the full breadth of activity underway. Business leaders and practitioners are exposed daily to a fray of news and magazine articles, television programming, "green" advertisements, organization announcements, and company press releases that describe plans, new products, and business benefits from initiatives that improve the environment.Using this book, leaders and practitioners can begin to identify patterns in information. They can then learn what leading practices at other companies apply to their business, find areas where their enterprise should lead among its peers, and construct actionable plans to realize strategic objectives for environmental stewardship. You can appreciate that win-win-win scenarios still prevail in the green movement. For example, many businesses are benefiting from top-line revenue growth that has come from products, services, and business model innovations that are in line with environmental stewardship. Other businesses and consumers benefit from purchasing and using those products and services, from both increased efficiency and lower bottom-line costs. The global environment also benefits from lower greenhouse gas emissions and less resource consumption.This book aims to give leaders and practitioners in any organization the practical insight necessary to help them move their enterprise toward a higher level of environmental stewardship, regardless of their current level of "green" maturity. It follows a holistic "strategy to implementation" approach, from strategy formulation to continuous improvement and beyond.Chapter 1, "Driving Forces and Challenges That Organizations Face," examines why environmental stewardship is important for any business to pursue, and why that importance will likely grow stronger in the future. Chapters 2, "Formulate Green Strategy to Complement Traditional Strategy," and 3, "Green Strategy Supports Operational Improvements," suggest a framework for approaching and formulating a green strategy, and illustrate the benefits many companies have realized in each strategic area. Chapter 4, "Make Green Strategy Actionable with a Proven Approach," describes an approach for implementing a green strategy: developing a vision for the future, defining initiatives that fill gaps between the current state and the future vision, and constructing a roadmap for achieving the vision. The approach consistently maintains traceability throughout, from the investments made to fund specific initiatives, back to the driving strategic imperatives.Chapters 5, "Transformation Methods and Green Sigma," and 6, "Applying Green Sigma to Optimize Carbon Emissions," introduce and explain business process transformation methodologies, with supporting technology and tools, that focus on increasing operational efficiency and reducing waste. IBM's Green Sigma is one methodology described in detail.The concepts in Chapters 7, "Instrumenting the Planet for an Intelligent, Sustainable World," and 8, "Technology That Supports Instrumenting the Planet," are forging new path

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Better Green Business Handbook for Environmentally Responsible and Profitable Business Practices

Better Green Business Handbook for Environmentally Responsible and Profitable Business Practices

0137010176

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