Green Fashion vs. Function

Many corporate initiatives are more fashion than function based and do not have a significant impact on the environmental or financial bottom line. While world-wide deployment is relatively low, today's existing green technologies could significantly reduce carbon outputs, reduce energy requirements and have a positive impact on the bottom line. Several examples of effective GreenTech strategies at work include the following:

Green Data Centers - Data center greenification focuses on the reduction of energy consumption and server farm footprint minimization. In order to accomplish this, corporations now have additional tools including new energy efficient storage and server infrastructure (improved performance per watt) as well as the implementation of key virtualization technologies. Conducting a data center assessments study is typically the first step towards improvement.

End-of-life Product Re-cycling - Many corporations have undertaken programs to prevent pollution by both reusing some manufacturing waste and encouraging end-of-life recycling services. These programs have increased re-use of manufacturing materials and decreased landfill use by educating customers on how to view their waste stream in new and enviro-economic ways.

Global Supply Chain Efficiency - The optimization of the global supply chain has always been a concern for major corporations. In addition to looking for reduced shipping costs and faster time to market, companies are considering the negative impact from their carbon production. Through initiatives such carbon labeling and offset programs, these impacts can be more easily tracked and mitigated.

In addition to being good for the environment, many Green Technologies can ultimately provide corporations with a competitive advantage. As with most disruptive technologies, GreenTech will at first prove either more costly and/or less efficient than existing technologies and may require substantial investment. It is critical for firms to select the right green technologies to invest in (the ones that have a cost trajectory far less than existing non-green technologies). Corporations of tomorrow will need to consider the triple bottom-line: one that includes environmental and social impacts in addition to the existing balance sheet. In terms of operations strategy, this means new green best practices and assessment systems.

On a macro level, Green Technologies have made a minor impact on energy efficiency and waste reduction. While some companies choose to operate on an ad hoc basis when creating their strategic plans, the true competitive advantage will go to companies that understand relevant Green Technology innovations, have clearly defined long-term initiatives and focus on the total company. At this point in time, corporations are advised to create both stop-gap solutions as well as long-term strategic initiatives that will take advantage of pending innovation cycles. New technology will ultimately provide the solutions to today's challenges; however various intermediate steps and tactical goals will need to be in place to stem the tide of spiraling energy costs and unfavorable environmental impacts.

Building a fiscally responsible and environmentally effective Green Strategic Plan requires highly analytical and quantitative skill. Over the past several years, HBSC has built the capability to help clients assess their financial and IT strategies to take advantage of the latest technology and business trends. If you are considering new GreenTech investments or desire a new Green strategic plan, HBSC can help.

For more information, please contact us at greentech@hbsconsult.com.