Financial and Corporate Aspects

with Recycling .. ICT

By Ahmed Buhazza

• ICT Service Life

• Wider risk

• Value out of disposal

What is your approach for electronic/ICT dispatching?

ICT Service Life…

ICT procured equipments

Source: Bahrain Consumer Electronics Report Q1 2011 - Business Monitor International (December 2010)

http://www.reportlinker.com/p0169782/Bahrain-Consumer-Electronics-Report-Q1.html

Computer hardware

48%

Mobile handset 15%

AV devices 37%

Electronic Spendings in Bahrain (2009)

Notebook account for about 60% of Computer Sales

Source: National Audit Office survey and analysis – UK 2005-06 (million of Units)

The average age of ICT equipment at disposal

Source: National Audit Office survey and analysis – UK 2005-06 (million of Units)

ICT Age Factors

Brand, Equipment Quality & Configuration

Supplier Support and Spare parts availability

Warranty Period

Software/System update, version Requirements

User & Business Demands

Usage, Carefulness, Damages

Asset Lifecycle

Source: Phillip J. Windley (2002)

Benefits of Asset Management System

& Refresh Period

• Inventory Control

• Total Cost of Ownership

• Software License Compliance

• Operational Monitoring and Control

• Decision Making about IT Resource Deployment

• Zero-day Employee Provisioning

• Standardization and Compliance

• More Informed Purchasing

• Business Resumption Reducing operating costs (10%-40% cost savings of operating cost)

Source: National Audit Office survey and analysis – UK 2007

IT is a Business Decision

Minimize Total Cost of Ownership •Dispose before end of life •End of Warranty •Buy-Back before End of Life

Wider Risk…in Disposal

IC T equipment life-cycle Procurement Disposal

Source: National Audit Office survey and analysis – UK 2007

Final Destination!

• Landfill: The burial of waste in regulated disposal facilities.

Waste Refuse

ZeroWaste SA’s waste management hierarchy www.zerowaste.sa.gov.au

Disposal options

IT conforms to the European Directive on Waste Electrical and Electronic Equipment (WEEE) to dispose of its IT equipment.

Source: National Audit Office survey and analysis – UK 2007

Refining Methods

• Clear – use software or hardware products to

overwrite storage space on the media with non-sensitive data.

• Purge

– Degaussing is exposing the magnetic media to a strong magnetic field in order to disrupt the recorded magnetic domains.

• Destroy

– Disintegration, Pulverization, Melting, and Incineration

– Shredding.

Legislation

•Environmental Protection •The Environmental Act (1994), Section 34: Duty of care and The Environmental Protection (Duty of Care) Regulations 1991 •Hazardous Waste Regulations (2005) •Waste Electrical and Electronic Equipment Regulations (2006)

•Electrical Safety •The Electrical Equipment (Safety) Regulations 1994 •The Health and Safety at Work Act 1974

•Data Protection & Security •Data Protection Act (1998) •Official Secrets Act (1989)

Challenges with e-waste

• Lack of legislation on the control of second hand electrical/electronic goods;

• Inadequate awareness and public education on the dangers associated with the environmentally sound management of e‐waste;

• Absence of national infrastructure for formal recycling;

• Inadequate public‐private partnerships in e‐waste control;

• Poor corporate responsibility by the industry;

• Weak global and regional response to e‐waste issues.

Value out of Disposal…

Generate Better Value

• Smart Aging (Refresh Period) – Define the optimum age for your corporate disposal (3 to 5

years)

– Consider Reducing the costs of resale and increasing resale revenues;

– Dispose whenever is practical and cost effective

– Contract for buy-back “revenue sharing”, “zero-cost” or “at cost”,

• Smart ICT Procurement – Awareness of the longer life items and commercial market values

for used equipments

Avoid the time when – to have no value;

– to be unserviceable or beyond economical repair; or

– that the disposal cost is higher than the likely return.

Effective ICT Asset Management and

Disposal Policy

Avoid the Wider Risk

• Environmental Protection – Awareness about relevant legislation

– Oversight of the disposal agents’ practices

• Data protection and security – Oversight of Data wiping standard

– Oversight over approaches being used by the disposal agent

• Electrical safety Check – ICT equipments before resale or donation

Consider the use of environmentally sustainable

methods of destruction/recycling.

Be Innovative - 50:50 Scheme

Value Employee Recovered

Year 0 100% 25% 25%

Year 1 67% 12.5% 37.5%

Year 2 33% 12.5% 50%

Year 3 0% 0% 0%

• It is Optional

• Careful Usage Longer Service Life

• Faster Refresh Period

Employee Motivation

Financial Reward

Operational Excellence

Environment Protection

Replace Cost by Benefits

Cost Benefits

“Problems can become opportunities when the right people come together.” Robert South

Cost Benefits

Achieve Sustainable Environment

Thank you

All the Private, Public and Global organizations that contributing in supporting Recycle IT Project