Sustainable IT Reducing Carbon Footprint and Materials Waste in the IT Environment Lecture 1 Sample Presentation Developed by: Sponsored by:

Lecture 1 Sample Presentation Presentation Content In this sample presentation for Lecture 1: Drivers of Sustainable IT for customers Benefits of product service systems for customers For additional information, including: Drivers of Sustainable IT for vendors Benefits of Sustainable IT for vendors See: The Natural Edge Project – Sustainable IT: Reducing Carbon Footprint and Materials Waste in the IT Environment,

Sustainable IT Introduction Sustainable IT: multi-component approach to establishing and sustainably operating an IT business function Survey: 80% of IT decision makers believe that implementing Sustainable IT in their organisations is important. Barriers: 51%: cost 25%: complexity of implementation and maintenance 21%: potential disruptions to current IT systems

Sustainable IT Introduction Challenge: Find a Sustainable IT solution that Addresses barriers Optimises costs Minimises negative environmental impact Solution: Use a combination of Product service systems Sustainable IT products

Sustainable IT Product Service Systems Holistic, end-to-end IT solution for large users StageVendorCustomer Planning Preparation Commissioning Operation Decommissioning End-of-contract End-of-life

Sustainable IT Product Service Systems Vendors maintain ownership and stewardship Customers pay per contract period Outcomes Standardise IT operations Release human and financial resources Significantly streamline information access, storage and support operations Eliminate the risk related to pollution and waste regulations and market expectations

Sustainable IT Product Service Systems Summarised benefits to customers Improve service levels to end users, which in turn leads to further increases in productivity Decrease the time to deploy and manage technology Reduce management complexities Lower total cost of ownership Leverage a greater return on assets Build a more agile end-user computing environment that enables faster response to change and opportunity

Sustainable IT Sustainable IT Products Items of client and data centre equipment Resource efficient to manufacture Resource efficient to transport Resource efficient to operate Low-to-no adverse human health impacts throughout lifecycle Low-to-no adverse environmental health impacts throughout lifecycle

Drivers of Sustainable IT

Drivers of Sustainable IT Business Competitiveness Business relies on IT to improve competitiveness IT technologies E-business applications Mobile technologies IT systems must support business operations by providing the right services

Drivers of Sustainable IT Asset Complexity IT systems must support business operations by having the flexibility to adapt to new demands IT business tools can: Complicate IT asset management Add substantial cost Increase system downtime Example: 55% organisations surveyed were unable to undertake business improvement projects because their IT systems were too rigid and complex

Drivers of Sustainable IT Market Forces Un-serviced product ownership Customer preference Product service Systems Post-material lifestylesMass customization Business preference Customer orientation Relationship marketing Customer retention Lean production Efficient use of capital Core competencies Outsourcing Increased importance of shareholder value Increased importance of stock market value Market developments Saturated markets Disintegration of industry boundaries The information economy Blur between products and services

Drivers of Sustainable IT Legislation Many countries are adopting or proposing legislation that encourages Sustainable IT United States Canada Mexico China Taiwan Japan Korea European Union

Drivers of Sustainable IT Legislation Impacts on e-products: Waste volumes Toxicity End-of-life take back Recycling International transportation

Drivers of Sustainable IT Legislation Australian snapshot National: Yet to enforce e-product end-of-life take back State: Only ACT bans computer waste to municipal landfill Voluntary: Product stewardship initiatives are in development by the peak electrical and electronic industry associations

Drivers of Sustainable IT Legislation Lack of legislation and regulation Australia is a laggard in Sustainable IT Delay in adopting legislation and regulation Competitive advantage for early-adopters ahead of legislation

Drivers of Sustainable IT Environmental Pressures million tonnes of e-waste worldwide annually The volume waste e-products in municipal waste is growing 3 times faster than any other type of waste. Short-life e-products are most influential on waste growth IT products Mobile phones

Drivers of Sustainable IT Environmental Pressures Computer sales: 302 million in 2008 alone First billion total sales (achieved 2008): 27 years Second billion total sales: 7 years Computer operating life: 1997: 4-6 years 2005: 2 years Computers at end-of-life 75-80% are landfilled 20-25% are stored or recycled

Drivers of Sustainable IT Environmental Pressures IT products are toxic Very few of the 1000 toxic substances, other than plastics, are removed before landfilling ElementsOtherPlastics ArsenicCadmiumMercuryBrominated organics PVC AntimonyCopperPhosphorPhthalate estersBrominated flame ret. BariumHexavalent chromium TinPBDEsChlorinated flame ret. BerylliumLeadPCBsPhosphorous- based flame ret.

Drivers of Sustainable IT Social Pressures Toxic substances can be released into the industrial and natural environments at all stages of processing, operation and retirement Toxic substances can result in negative impacts on humans and other organisms. Suppression of immune systemDisruption to endocrine systems CarcinogenicDamage to reproductive systems Cardiovascular diseaseDamage to DNA Respiratory tract irritationDamage to central nervous system Skin infectionDamage to blood system MortalityDamage to major organs

Drivers of Sustainable IT Environmental and Social Pressures Vendors have expertise and experience Better control over environmental and social impacts

Benefits of Product Service Systems

Benefits of Product Service Systems Economic Flexibility Investment is spread out over the contract period No large initial investment is required Financial resources are freed for other activities

Benefits of Product Service Systems Economic Flexibility Spreading out the investment yields: Improved purchasing power Easier financial forecasting Tax benefits Immunity to interest rates Improves access to loans and overdrafts Upgrade at low immediate cost whilst not having to wait to pay off their current offerings

Benefits of Product Service Systems High Return on Investment Lower total cost to the customer High return on investment Substantial medium- and long-term cost savings

Benefits of Product Service Systems Better Service Performance Compared to engaging multiple vendors, a single-source solution minimises: Delays Administration costs Complexity Customers perform better Customers can use freed human resources to concentrate on their core business or expansion

Benefits of Product Service Systems Better Service Performance Example: Survey of six large companies Sectors Manufacturing Banking IT Public Performance enhancements Higher quality of service Greater efficiency through standardisation Better optimised processes Automated processes

Benefits of Product Service Systems Better Service Flexibility Customer only pays for the products and services required at the time Expansions Downsizing Facility-wide upgrades are: Regular Fast Uniform

Benefits of Product Service Systems Less Risk Rate of new technologies development Time for proving reliable ? Markets are somewhat unpredictable

Benefits of Product Service Systems Less Risk Customers share the technological and economic risks with vendors. Vendors expertise enables more accurate risk assessment and comprehensive asset management. Customer risk x Vendor risk = Overall risk

Benefits of Product Service Systems Lower End-of-Life Management Costs Product end-of-life management costs Collection Remanufacturing Recycling Disposal Economic incentive to reduce adverse environmental and social impacts from end-of-life products

Benefits of Product Service Systems Lower End-of-Life Management Costs Example: Implementing EU WEEE directive The costs of implementation are lower than initially expected CountryLaptop Computer Desktop Computer Inkjet Printer LaserJet Printer Flat Screen Monitor Lowest costs Germany Spain Highest costs Belgium Switzerland

Benefits of Product Service Systems Lower End-of-Life Management Costs Additional cost reductions Products are easily traceable Collection is scheduled Process volumes are large Expert management Expert optimisation