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Sustainability: Outcomes and Options
How Green is Your House?
October 17, 2008
Copyright © 2008 Accenture All Rights Reserved.2
Agenda
• Introduction
• Accenture’s Point of View on Sustainability
• “Quick Wins”
• Sustainability Solutions
• Summary Q&A
Copyright © 2008 Accenture All Rights Reserved.
Green IT – Challenge and Opportunity
• Traditionally, IT spend has not concentrated on delivering business value
• Major IT change programs have historically been driven by external forces, such as the Y2K and SOX compliance
• Environmental concern and Green IT is the next major challenge to face our clients and requires a step change in the way our organizations run and deploy their IT, but we need to understand where the opportunities are
Rel
ati
ve
IT S
pe
nd
Time
Euro Adoption Y2000 SOX Compliance
ILLUSTRATIVEILLUSTRATIVE
Copyright © 2008 Accenture All Rights Reserved.
Why assess green maturity?
“What gets measured, gets managed”“What gets measured, gets managed”
IT organizations do not understand how well they perform in terms of Green IT - much less do they
understand how they stand up to their competitors
IT organizations do not understand how well they perform in terms of Green IT - much less do they
understand how they stand up to their competitors
Without this understanding, they lack empowerment to improve. We can help our clients drive initiatives that
will help them drive efficiency and environmental savings
Without this understanding, they lack empowerment to improve. We can help our clients drive initiatives that
will help them drive efficiency and environmental savings
Attrib: Dr Peter Drucker
Copyright © 2008 Accenture All Rights Reserved.
The Green IT AgendaA holistic view of the impact of IT on the environment
The Green IT Agenda takes a holistic view of the environmental footprint across an organization’s IT, not just data center power consumption.
Office EnvironmentOffice Environment
ProcurementProcurement Corporate CitizenshipCorporate Citizenship
Working PracticesWorking Practices
Data CenterData Center
Concerned with the way an organization’s IT is run including locations, process and structure
Concerned with the way an organization’s IT is run including locations, process and structure
An organization’s share compute capabilities including servers, storage and network
An organization’s share compute capabilities including servers, storage and network
End user computer devices including desktops, laptops, printers and mobile
devices
End user computer devices including desktops, laptops, printers and mobile
devices
The processes by which an organization purchases equipment,
supplies and services
The processes by which an organization purchases equipment,
supplies and services
The way the IT organization interacts with the local, regional and global community
The way the IT organization interacts with the local, regional and global community
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” DescriptionTypical Timing Value Delivered Rep. Clients
Virtualization The ability to split a physical server at the operating system level and enable multiple isolated and secure “virtualized” servers to run on the single physical server.
6-10 months
• Reduction of server footprint by 35-45% • Large FS Client• Large
Communications Services Provider
Process Improvements
Analyze existing processes that support delivering IT to the business to improve efficiencies and drive cost take outs.
6-10 months
• Reduce energy consumption by 15-20%
• Major US Software Developer
• Large Telecom Firm
Sustainable Sourcing
Reduce costs and embed sustainability into procurement practice. Triple Bottom Line approach (Economic, Environmental & Social).
4-6 months
• Up to 30% emissions reduction, avg. 15% cost savings – < 6 months to achieve initial results
• Large North American Utility Provider
Carbon Footprint Metrics
Identify baselines and metrics for supply chain sustainability components, goal setting and ongoing performance management & reporting.
3-6 months
• Proactive compliance to legislative and executive orders. Drives tangible reporting of sustainability progress
• State of Florida• Australia Post
Sustainable Fleet Management
Fleet asset optimization, distribution & network consolidation, fuel management, transportation strategies, etc.
4-6 months
• Increase asset utilization, 30%+ reduction in GHG emissions, physical consolidation
• Largest UK Electricity Provider
• Global Retailer
SMART Building Commissioning
Optimizing a large set of owned buildings and optimizing energy performance through IT based data analytics.
3-6 months
• Reductions of 15-25% of utility and maintenance costs
• Rapid Return on Investment especially with gain share model
Accelerate IT Systems
Accelerate IT “as-is-to-be” design using lean methods to optimize (simplify) processes before software development. Build in reliability using Design for Lean Six Sigma (DFLSS) techniques.
1-2 months
• Simplified automation and coding• Improved inter-departmental flow and
ROI
• Large US City
Cost/Resource Reduction
Strategic cost reduction assessment identifies largest resource consumers, identifies set of initiatives ranging from quick hits to longer term impact, develops roadmap, executes quick hits.
3-12 months
• Improves ROI by prioritizing/focusing on initiatives that will drive out cost/consumption
• USPS• US Army• Commercial clients
“Sustainability Starts Personally”
Identifying personal ways for the workforce to increase recycling and reduce paper usage and other waste.
1-4 weeks • Reduction of paper usage by up to 50% • Large Public Service Security Project (450 personnel)
Copyright © 2008 Accenture All Rights Reserved.7
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” Virtualization
Description
The ability to split a physical server at the operating system level and enable multiple isolated and secure “virtualized” servers to run on the single physical server.
Typical Timing 6-10 months
Value Delivered • Reduction of server footprint by 35-45%
Representative Clients
• Large FS Client
• Large Communications Services Provider
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” Process Improvements
DescriptionAnalyze existing processes that support delivering IT to the business to improve efficiencies and drive cost take outs
Typical Timing 6-10 months
Value Delivered • Reduce energy consumption by 15-20%
Representative Clients
• Major US Software Developer
• Large Telecom Firm
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” Sustainable Sourcing
Description
Reduce costs and embed sustainability into procurement practice. Triple Bottom Line approach (Economic, Environmental & Social)
Typical Timing 4-6 months
Value Delivered• Up to 30% emissions reduction, average 15% cost
savings – < 6 months to achieve initial results
Representative Client • Large North American Utility Provider
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” Carbon Footprint Metrics
Description
Identify baselines and metrics for supply chain sustainability components, goal setting and ongoing performance management & reporting.
Typical Timing 3-6 months
Value Delivered• Proactive compliance to legislative and executive orders.
Drives tangible reporting of sustainability progress
Representative Clients
• State of Florida
• Australia Post
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” Sustainable Fleet Management
Description
Fleet asset optimization, distribution & network consolidation, fuel management, transportation strategies, etc.
Typical Timing 4-6 months
Value Delivered• Increase asset utilization, 30%+ reduction in GHG
emissions, physical consolidation
Representative Clients
• Largest UK Electricity Provider
• Global Retailer
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” SMART Building Commissioning
DescriptionOptimizing a large set of owned buildings and optimizing energy performance through IT-based data analytics
Typical Timing 3-6 months
Value Delivered • Reductions of 15-25% of utility and maintenance costs
Representative Clients
• Rapid Return on Investment especially with gain share model
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” Accelerate IT Systems
Description
Accelerate IT “as-is-to-be” design using lean methods to optimize (simplify) processes before software development. Build in reliability using Design for Lean Six Sigma (DFLSS) techniques.
Typical Timing 1-2 months
Value Delivered
• Simplified automation and coding
• Improved inter-departmental flow and ROI
• Upgrade underlying infrastructure
Representative Client • Large US City
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” Cost/Resource Reduction
Description
Strategic cost reduction assessment identifies largest resource consumers, identifies set of initiatives ranging from quick hits to longer term impact, develops roadmap, executes quick hits
Typical Timing 3-12 months
Value Delivered• Improves ROI by prioritizing/focusing on initiatives that will
drive out cost/consumption
Representative Clients
• USPS
• US Army
• Commercial Clients
Copyright © 2008 Accenture All Rights Reserved.
Accenture believes these “Quick Hits” opportunities can deliver significant value for Public Service Organizations in a short period.
“Quick Win” “Sustainability Starts Personally”
DescriptionIdentifying personal ways for the workforce to increase recycling and reduce paper usage and other waste.
Typical Timing 1-4 weeks
Value Delivered • Reduction of paper usage by up to 50%
Representative Client • Large Public Service Security Project (450 personnel)
Copyright © 2008 Accenture All Rights Reserved.16
Copyright © 2008 Accenture All Rights Reserved.
We recommend a two-pronged approach to achieving measurable results – “Quick Wins” and longer term
Mo 0
Market Focus & Position
Distinctive Capabilities
Performance Anatomy
Business Foundation
Strategic Approach
“Quick Wins”
• SMART Buildings
• Sustainable Sourcing
• Carbon Footprint Metrics
• Sustainable Fleet Mgmt
• Virtualization• Provisioning
• “Sustainability Starts Personally?
• Pockets of Inefficiency
• Improved Metrics
• Additional Initiatives
Mo 1 Mo 2 Mo 3 Mo 4 Mo 5 Mo 6 Mo 7 Mo 8 Mo 12Mo 10
• Strategic Plan
Mo 11Mo 9
• Cost/Resource Reduction
• Accelerate IT Systems
• Program and Change Management
Copyright © 2008 Accenture All Rights Reserved.17
Copyright © 2008 Accenture All Rights Reserved.
Accenture’s Green IT and Data Center’s Practice Overview
Green solutions embrace the 3 Rs (Reduce, Recycle, Reuse) to maximize the Green Computing Equation.
Partners Key Customers
• Fortune 125 Energy Provider• Large UK Electronics Retailer• Large UK Media Organization• Large Australian Telco
Key Solutions/Offerings Benefits/Value Delivered
• Next Generation Data Center (NGDC) Architecture
• Consolidate up to 50% of an organization’s existing server footprint• Reduce IT complexity across the enterprise• Increase Service Levels• Reduce overall IT costs by 25-35%
• Green Suite of Tools– Data Center Estimator– Green Maturity Model– Work Place Estimator
• Identify areas to improve efficiencies within the Data Center and Corporate IT• Determine an organization’s enterprise IT baseline (e.g. Energy Consumption, Energy
Spend, Carbon Emissions)• Develop Green IT Roadmap to reduce energy consumption by 20-30%
• Infrastructure Transformation
• Reduce cost and complexity through consolidation, standardization, and virtualization• Provide cost effective remote managed services• Leverage Utility Based computing• Cost reductions up to 30%• Cost avoidance and risk reduction opportunities can be as high as 50%
Copyright © 2008 Accenture All Rights Reserved.18
Copyright © 2008 Accenture All Rights Reserved.
Low
High
Easy Difficult/Complex
Ease of Implementation
Val
ue
Cre
atio
n/ D
egre
e o
f Im
pac
t
Must Have
Major CAPEX
Further Investigation
No/Minimal CAPEX
StorageVirtualization
Server Virtualization
Process Improvements
Process Improvements
SustainableSourcing
CarbonMetrics
SustainableFleet Mgt
Smart Bldg
AccelerateIT Systems
Cost Res Reduction
Personal Accountability
Decision Framework – Green Quick Hits
Copyright © 2008 Accenture All Rights Reserved.19
Copyright © 2008 Accenture All Rights Reserved.
Accenture’s Green IT Capabilities assessed by Forrester
Forrester released its “Dawn of Green IT Services” report in March 2008. Accenture was the only SI out of the 12 leading firms to receive a full capability rating in each of the 23 categories taken into consideration
Copyright © 2008 Accenture All Rights Reserved.
Summary & QA
• Green can be good for both the environment and the bottom line
• Build a road map that’s meaningful and measurable
• It’s small steps, and let “success build on success”
Q&A
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