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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

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IT S

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Euro Adoption Y2000 SOX Compliance

ILLUSTRATIVEILLUSTRATIVE


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


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


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)




“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



“Quick Win” Process Improvements

DescriptionAnalyze existing processes that support delivering IT to the business to improve efficiencies and drive cost take outs


Value Delivered • Reduce energy consumption by 15-20%


• Major US Software Developer

• Large Telecom Firm



“Quick Win” Sustainable Sourcing

Description

Reduce costs and embed sustainability into procurement practice. Triple Bottom Line approach (Economic, Environmental & Social)


Value Delivered• Up to 30% emissions reduction, average 15% cost

savings – < 6 months to achieve initial results

Representative Client • Large North American Utility Provider



“Quick Win” Carbon Footprint Metrics

Description

Identify baselines and metrics for supply chain sustainability components, goal setting and ongoing performance management & reporting.


Value Delivered• Proactive compliance to legislative and executive orders.

Drives tangible reporting of sustainability progress


• State of Florida

• Australia Post



“Quick Win” Sustainable Fleet Management

Description

Fleet asset optimization, distribution & network consolidation, fuel management, transportation strategies, etc.


Value Delivered• Increase asset utilization, 30%+ reduction in GHG

emissions, physical consolidation


• Largest UK Electricity Provider

• Global Retailer



“Quick Win” SMART Building Commissioning

DescriptionOptimizing a large set of owned buildings and optimizing energy performance through IT-based data analytics


Value Delivered • Reductions of 15-25% of utility and maintenance costs


• Rapid Return on Investment especially with gain share model



“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.


Value Delivered

• Simplified automation and coding

• Improved inter-departmental flow and ROI

• Upgrade underlying infrastructure

Representative Client • Large US City



“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


Value Delivered• Improves ROI by prioritizing/focusing on initiatives that will

drive out cost/consumption


• USPS

• US Army

• Commercial Clients



“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)



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



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%



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



SustainableSourcing

CarbonMetrics

SustainableFleet Mgt

Smart Bldg

AccelerateIT Systems

Cost Res Reduction

Personal Accountability

Decision Framework – Green Quick Hits



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


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

download powerpoint presentation

Technology

green maturity

terms of green

environmental footprint

business value major

public service organizations

holistic view

major challenge

drive cost