Design Enlightened by Megatrends
101
Design Enlightened by Alex Zhu Director of Product Management, eBaoTech Corporation [email protected]
description
Transcript of Design Enlightened by Megatrends
Design Enlightened by
Alex Zhu
Director of Product Management,
eBaoTech Corporation
FINANCIAL SERVICES
The future is already here – it's just not evenly distributed.- William Gibson, 2003“ ”
CONSUMER GOODS
INFORMATION TECHNOLOGY
10 YEARS
2 YEARS
We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the
next ten. Don't let yourself be lulled into inaction.
- Bill Gates, 2003“ ”
When we were an agrarian nation, all cars were trucks. But as people moved more towards urban centers, people started to get into cars. I
think PCs are going to be like trucks. Less people will need them.
- Steve Jobs, in D8 Conference 2010“ ”
2 YEARS10 YEARS
chapter I:
The Endless Pulse of Innovation
Economic and Socio- environmental Structure
Technological Structure
Digital structure echoes real-world structure
Strategy models, process models, organization models, etc. Social graph, etc.
INFORMATION INFRASTRUCTURE
PRODUCTION CONSUMPTION
ENVIRONMENT
Enterprise IT Consumer IT
Economic and Socio- environmental Trends
Technology Megatrends
And therefore IT trends echo real-world trends
Structural changes in our society, economy, technologies, and environment
Structural changes in information architecture, design, and interfaces
IT megatrends create endless waves of hype cycles
Technology Megatrends
Technology trigger
Peak of inflated expectations
Trough of disillusionment
Slope of enlightenment
Plateau of productivity
Technology Hype Cycles
Structural changes in information architecture, design, and interfaces
Gartner’s hype cycle report 2009 of emerging technologies
Source: Gartner Website
Innovative companies take off by riding disruptive trends
1989 1990 1991 1992 1993 1994 1995 1996 1997
Example: SAP’s Sales Revenue in United States in the 90’sSource: Book “Inside the Secrete Software Power” by Gerd Meissner
SAP launched R/3 in US market, as a turning point
Industry Trends:• Lean Production (JIT)• Integrated Operation• Globalization
IT Trends:• Mainframe -> PC (computer
miniaturization ) • Real-time Integration• GUI• Buy vs. Built
And then focus on optimization to cross their “chasms”
Late MajorityEarly Majority LaggardsEarly AdoptersInnovators
The Chasm
Early MajorityEarly Adopters
• Pragmatists
• Not able to take risk and make own decisions
• Want to buy from proven market leaders
• Low tolerance of functionality and quality issues
• Need “whole product”
• Press and analyst cover important
• Visionaries
• First to see value
• Able to take risk and make own decisions
• Tolerate incomplete functionalities and quality issues
Source: Book “Crossing the Chasm” by Geoffrey A. Moore
Later they have to repeat this process to avoid being disrupted
Most demanding use
High quality use
Medium quality use
Low quality use
Disruptive Technologies
High-end market disrupted
Source: Book “Innovator’s Dilemma” by Clayton M. Christensen
Sustainable Innovation
Why is this relevant to our UX profession?
By combining strategic thinking, storytelling, effective prototyping, and UCD methodology, your design can be the trigger of the next pulse of business innovation…
“Beyond Clicking”
Embrace trendsspotting into your design process
Include both business trends and technology trends into your research radar2
Understand your business strategy as well as the overall industry landscape1
Write a fictitious product marketing brochure, and think about how you are going to sell your product, before you even have the design ready
3
Source: SAP Design Guild
Storytelling and rapid prototyping4
chapter II:
Industry Megatrends
6 interconnected industry trends
INFORMATION INFRASTRUCTURE
PRODUCTION CONSUMPTION
ENVIRONMENT
2. Take every possible route
to the market
4. Fly above
commoditization
6. Economy towards
ECO2
nomy
1. The Intels, Walmarts, and in‐betweens
3. Stand on everybody’s
shoulder
5. Towards a cloudy (and
weightless) service economy
The Intels, Walmarts, and in-betweensMegatrend #1:
Vertical market towards horizontal market
• Products undefined
• Trial-and-error
• No standards defined
• Product innovation pays off
• Vertical market
Process Innovation
Product Innovation
Pre-mature market
Innovation Intensity
Time
• Products commoditized
• Best practices identified
• Industry standards emerge
• Process innovation pays off
• Horizontal market
Matured market
“Dominant Design Theory”
This ends up with a highly distributed value chain
Supply goods, services, technologies as shared resources, to reduce cost of reproduction, and therefore lowers barriers to entry
Produce verticalized value in the area of their “centre of gravity”, levering infrastructure provided by platform players, as well as market lever provided by the distributors.
Aggregate goods, provide choices and convenience, and build intimacy with consumers. Reduce the transaction cost for both producers and consumers.
ConcentrationConcentration Proliferation
Platform Suppliers Niche Producers Retailers
PRODUCTION CONSUMPTION
Polarized into 2 segments with different expectations and behaviors. Prosumers are actively participating in the value creation process, and seek more individualization and self- services
Segmentation
Consumers & Prosumers
Specialization & integration on production side
• Different participants focus on their respective “centre of gravity”.
• “Platform suppliers” are based on “economies of scale” whereas retailers thrive on “economies of scope”. Both of these 2 sectors stay concentrated.
• The in-betweens benefit from the levers provided by both the platform suppliers and retailers, and the barrier to entry is increasingly lower, and therefore we see a proliferation of “virtual businesses” and “mini businesses” (e.g. iPhone gaming developers).
• These niche players can better satisfy all kinds of consumption needs, which platform players can’t anticipate or have no bandwidth/motivation to address. (e.g. “there is an app for that!”)
• This virtualized value chain posts great challenges to the current fragmented IT infrastructure. Business operations need to be seamlessly integrated on the network level, across different entities on the value chain.
Direct model, with strong internet presence
Large volume of gross premium, but with very few employees
Playing on top of the platform provided by its parent company ASR, which is one of the top 3 insurers in Holland
Most routine operations outsourced (call center, claim handling, etc.)
Even part of the distribution is outsourced. A lot of volume is reached through white-labeling model (OEM) partnered with affinity groups
20+ system-to-system interfaces were built during implementation
Virtual insurer
Polarization on the consumption side
• The rise of prosumers: more informed and technically empowered customers are participating in the value creation process . They need engagement, individualization, and personal identity.
• Some producers are actively extending their value chain downstream, and involve off-the-payroll community in their innovation & design process (crowdsourcing)
• As the barrier of entry has been further lowered by both the platform suppliers (platform of production) and retailers (platform of consumption), the boundary is blur between prosumers and “virtual businesses” (e.g. smugmug, iStockphoto, etc.)
• Pure consumers, on the other hand, need easier and intuitive consumption (e.g. popularity of iPad in business executive groups)
• Both prosumers and consumers need choices. Henry Ford’s motto “you can have any color you want, as long as it’s black” is no longer valid.
Crowdsourcing for collective intelligence
Made.com: crowdsourcing + individualization + engagement
Local Motors: crowdsourcing + individualization + engagement
Google Earth: upload GPS data
Opportunities for enterprise IT
Ability to collaborate with business partners with lower cost and in real- time
Ability to gain business transparency (market fluctuations, risks, etc.) across entire networked value chain
Ability to predict and simulate for continuous business process optimization (e.g. BPO simulation and sourcing)
Ability to combine collective intelligence with traditional business intelligence approach
Ability to open more capabilities to prosumers through self-services, and connected with the other business operations such as order fulfillment
Business Needs:
eSOA 2.0
Industry standards (e.g. ACORD for insurance)
Cloud computing and inter-tenant collaboration
Supply chain optimization
Distributed risk management
RFID
Self-services
Convergence of consumer IT and enterprise IT
IT Trends:
Take every possible route to the marketMegatrend #2:
Upstream players diversify their distribution channels
Platform Suppliers Niche Producers Retailers
PRODUCTION CONSUMPTION
Consumers & Prosumers
Route 2
Route 3
Route 1
Upstream players in the value chain continue to explore new distribution channels to reach the consumption, to collect more long-tail revenue
This strategy does not only affect the Go-to-Market model, but also has profound implications on product/service design
They need new scalable approaches to manage this mass distribution, balancing between diversification and standardization
Selfish altruists thrive by giving away
• Platform’s key value proposition is to centralize and share the fixed cost and risks (e.g. R&D, mining), and reduce the marginal cost (cost of reproduction).
• Best example is middleware
• By making the platform open and sometimes free, platforms suppliers lower the barrier to entry for downstream players
• Successful platforms set up de facto industry standards, and therefore reduces the total transaction cost in the value chain (e.g. Blu-ray)
• Platforms are monetized through royalties, revenue sharing, or “knock-on” effect of other products/services (e.g. Android).
• Rule of thumb: 2~3 dominant platform players competing in the market (e.g. Blu- ray vs. HD-DVD, iOS vs. Android, BI platforms, Facebook vs. OpenSocial, etc.)
– Too many lead to chaos and high cost, and a single platform leads to monopoly concern.
Routes to market in consumer goods industry
Franchised Retailer
Indirect Consumers
OEM Integrator
Outlet/ Supermarket
Indirect Consumers
Direct Consumers
Captive Sales /Telesales
Web Aggregator/ TV Outlet
Indirect Consumers
Manufacturer
Factory Outlets
Wholesaler
Indirect Consumers
Retailer
One-tier Distribution
Multi-tier Distribution
White-Label Distribution
Direct Distribution
Indirect Consumers
Website /Vending
Machine/Mobile
Downstream insurer
Indirect Consumers
Retailer
Routes to market in insurance industry
Agency
Indirect Consumers
Independent Broker
Indirect Consumers
Direct Consumers
Tied Agents/ Telesales
Web Aggregators
Indirect Consumers
Insurance Carrier
Branches /Offices
Indirect Consumers
Website /Vending
Machine/Mobile
OEM Integrator
One-tier Distribution
White-Label Distribution
Direct Distribution
Multi-tier Distribution
Requirements on product design: componentized, adaptable, and embeddable
Direct Consumption
B2B Interfaces
Implications to Product/Service Design:
Componentization of product/service gives more bundling opportunities to reach a larger market
Expose part of the offering to external partners through friendly B2B interfaces, and allow easy
adaptation and integration
The B2B interfaces needs to follow industry standards, to ideally should be container‐agnostic
During the product design, both the “direct consumption”
scenarios and “long‐tail consumption”
scenarios should be considered
AFTERBEFORE
Direct Consumption
Translated into our familiar terms
User Interface
Application Programming Interface
+
Direct Consumption
Indirect Consumption
Different Contexts
Example: Sears API
Repurpose & Mashup
Example: Esurance’s online partner program
Example: AIU’s OEM model with doyouhike.com
• AIU China (Chartis) distribute travel and accident products on doyouhike.com which is China’s largest online community for outdoor activities
• Products are co-designed with doyouhike.com, and tailored to special needs of this community
• White-labeled with doyouhike’s branding
Opportunities for enterprise IT
Ability to roll out products to new distribution channels quickly, and have them tailored to new market segment
Ability to manage lots of product variances without making compromise in transparency and governance
Ability to support diversified channels with standardized and automated operations
Ability to streamline B2B collaboration to simplify the final consumption no matter how complicated the route could be
Business Needs:
Product Lifecycle Management integrated with business intelligence, and collaboration
Multi-channel distribution management platform
Business-driving configuration (e.g. rules, pricing, etc.)
Web-oriented Architecture (WOA)
Social CRM
IT Trends:
Design Examples
Agents, Agencies, Brokers, Call CentersAgents, banks, car dealers, brokers, and call centers can easily connect to carrier’s SalesPlatform directly through secure internet connection
Direct Portal Access
Some Agencies, Brokers, Call CentersSome channel partners may prefer to use their own POS systems. In this case, system-to-system integration will be much simplified by leveraging the standardized and well-documented web services provided by the SalesPlatform.
3rd-party Web Sites (Aggregators, White-label Partners)SalesPlatform web services can also be provided to 3rd party web aggregators such as moneysupermarket for premium computing.
“eBaoTech SalesPlatform”
Insurer Website & Affiliate WebsitesEmbeddable web applications allow carriers to easily inject E-commerce capabilities to their existing websites
Widgets can also be easily plugged into affiliate websites to generate more “long tail” revenue
Standardized Web Services
Embeddable Web Components
32Standardized Web Services
1 4
Lifecycle Designer
Structure Designer
Lifecycle Simulation
Deployment & Rollout
Performance Analyzer
Loss Analyzer
Structure Designer
Cost & Profit Test
Compliance Test
Documentation Mgt.
Documentation Mgt.
GSPA
LSPA
GLPA
Common Sales & Marketing, Common Parties
Platform
Data Warehouse
Market Analyzer
“Closed-loop” & Collaborative
PLM
Product Lifecycle Mgt.
E.g. quotation calculation
E.g. performance analysis
Common Claim
E.g. accumulator in claim
E.g. surrender handling
“Suite” ModelActuary
1. Analyze & Design
2. Model & Deploy
Planning
3. Measure & Monitor
Actuary
Product Marketing
Product Marketing
Portfolio Management
Ideas ManagementLegal /
Compliance
Actuary
Sales & Marketing
Financial
Business partners
“White-label” model enabled by web services & re-brandable web
components
“White-label” model enabled by web services & re-brandable web
componentsFacebook Plug-in to convert FB Fans page into a shopping website,
Stand on everybody’s shoulderMegatrend #3:
Long live the middleman
Platform Suppliers Niche Producers Retailers
PRODUCTION CONSUMPTION
Consumers & Prosumers
The earlier prediction of “disintermediation” turns to be a myth. Due to the always limited bandwidth on consumption side (scarcity of attention), retailers will stay critical to most producers.
Digital super-supermarkets are rising, and traditional players need to react. We will see convergence of digital retailing and brick-and-motor retailing.
IT will drive the industry shake-up, centering around how to create best retail experience
Cross-industry competition by nature
• Retailer’s value propositions
– Bridge for information asymmetry
– Integrated customer experience (discoverability, guidance, payment gateway, transparency, etc.)
– Price advantage with strong negotiation power, as well as supply chain collaboration
– “Economies of scope” for supermarkets (one-stop service, bundling, comparison)
– “Relevance” for specialty stores (e.g. IKEA, Best Buy, SAP Portal)
– Geographic convenience for convenience stores (e.g. 7-11, Widgets)
• The competition in the retail sector is cross-industry by nature. For example,
– Media contents (music, books, movies) are increasingly distributed through App stores, and more and more physical products are sold through Facebook
– Tesco is selling standard financial products in their store
Enterprise IT Industry Publication Industry Financial Service Industry
“store-in-stores”
Supermarkets
Cross-industry mega- aggregators
Widgets framework
Specialty Stores
Vertical aggregators
Convenience Stores
Delivered with convenience
Banks
The rise of digital supermarkets
• For virtual products (e.g. applications, insurance) and commoditized products (e.g. cell phones), digital players are showing their competitive advantages over brick- and-motor competitors, and will increasingly erode revenue from traditional players.
– Ability to aggregate infinite products (long-tail effect)
– Discoverability (taxonomy, tags, recommendation engines, search, etc.)
– Geographic convenience (several-clicks-away)
– Comparison
– Social experience (reviews, friend recommendations)
– Transparency (e.g. easy to search more information online)
– Individualized experience (e.g. based on behavior)
– No waiting line
– Cheap!
P&G in Facebook
P&G have just trialed a Facebook store for their new Pampers Cruisers line of diapers – selling out of 1000 packs @ $9.99 in under an hour.
Traditional players also become geeky
• To respond, traditional players need to leverage new technologies and practices in their brick-and-motor stores to create unique “real-life” experiences. For example:
– Build store-in-stores on digital supermarkets to extend the market reach
– Deliver personal greetings and recommendations to customer’s mobile phone or TVs (wireless, RFID, NFC)
– Leverage QR code reader or barcode reader to aid shopping
– Support mobile payment for quick check-out
– Participate in mobile coupon programs (e.g. Foursquare) to reward loyal customers
– Leverage Augmented Reality technologies and social network to combine the benefits of digital and brick-and-motor stores.
– Etc.
Best Buy’s store in Facebook
IKEA’s Augmented Reality application on iPhone
QR Codes in Japanese retail stores
Store preview on Google Map
Foursquare royalty programs
Social retailing - IconNicholson
Every node wants to be a super node
Platform Suppliers Niche Producers Retailers
PRODUCTION CONSUMPTION
Consumers & Prosumers
The earlier prediction of “disintermediation” turns to be a myth. Due to the always limited bandwidth on consumption side (scarcity of attention), retailers will stay critical to most producers.
Digital super-supermarkets are rising, and traditional players need to react. We will see convergence of digital retailing and brick-and-motor retailing.
IT will drive the industry shake-up, centering around how to create best retail experience
Fly above commoditizationMegatrend #4:
Experience innovation as a new dimension
• Products undefined
• Trial-and-error
• No standards defined
• Product innovation pays off
• Vertical market
Process Innovation
Product Innovation
Pre-mature market
Innovation Intensity
Time
• Products commoditized
• Best practices identified
• Industry standards emerge
• Process innovation pays off
• Horizontal market
Matured market
Experience Innovation
• Products commoditized
• Industry standards matured
• Diminishing return from process innovation
• Experience innovation pays off
• Horizontal market/Vertical market
Saturated market
The “soft” advantage
PRODUCTION CONSUMPTION
Service & Experience innovation as key differentiator
In mature industries, “hard” product features are being commoditized fast. Any competitive differentiation in this area will be increasingly expensive and temporary, and will be unaffordable for most niche producers
Experience, on the other hand, give space for low-cost differentiation. Technologies become critical facilitator of innovative experience
There are opportunities for providing better experience almost everywhere in the business process
Customer’s customer experience, will be an important dimension to consider for UX design profession, which is an area we can add tremendous business value.
Opportunities for experience innovation in insurance value chain
Manufacturing Sales & Distribution
Order Fulfillment
Post-Sales Service
Supply Chain Management
MarketingMarketing
Billing & Collection Billing &
CollectionPrinting &
Mailing Printing &
Mailing
Endorse- ment
Endorse- ment
Under- writing Under- writing
Claim Handling
Claim Handling
Claim Settlement
Claim Settlement
Risk Ceding (RI)Risk Ceding (RI)
Partner Sourcing Partner
SourcingPartner
Payment Partner
Payment
Sales Channel ManagementSales Channel Management
Product Design
Product Design
Product Deployment
Product Deployment
Business Monitoring & OptimizationBusiness Monitoring & Optimization
Financial Assets ManagementFinancial Assets Management
Pre- sales Pre- sales
Sales Talk
Sales Talk
Submi- ssion
Submi- ssion UWUW
Claim Regis. Claim Regis.
Product Design:
Deep understanding and analysis of the customer expectation and the market (e.g. pay-as-you-go insurance)
Marketing:
Creative marketing leveraging social media and App store (e.g. ComparetheMeekart.com, Esurance, GEIKO)
Sales:
-Self-service & Usability - Illustration of benefits - STP and Real-time Issuance- Channel Education
Fulfillment:
- Leverage billing as a communication channel - Embrace new payment methods such as Google Checkout, mobile payment, etc.
Service & Claim:
- Customer-centric View- Self-service & Usability- Multi-channel Collaboration- Operational Efficiency - Differentiated Service (e.g. Esurance’s online repair monitor)
Partner Management:
- Customer Reviewing & Complaint Management
Creative Marketing by comparethemarket.com
Social media presence and referral
Zipcar’s iPhone application for car finding and unlocking
Opportunities for enterprise IT
Ability to proactively manage their social presence (as well as business partners), analyze consumer sentiments, and make quick reaction
Business Needs:
Providing additional tools for consumers, to gain more touch points
Ability to innovate quickly without having to wait for any “best practices”
Social Business Applications (e.g. social CRM)
Mobile computing, Augmented Reality, etc.
Innovation platform (in opposition to packaged “best practice” solutions)
IT Trends:
Case Study: eBaoTech Insurance Showroom
eBaoTech mobile-enabled auto claim
First Notice of Loss by insured- Mobile-based car accident wizard- Or phone call
General Claim Back-end
1
Assignment by Dispatch Operator- GIS-enabled task assignment
- Or even completely automated
3
Phone call
Mobile submission
Claim Registration
2
submission
If inspection needed?
4
Inspector receives task- Mobile-enabled task management
5
Inspection Report by Inspector- Mobile-based entry
- Portable printer
Submission & receive claim
decision
Self-service, intelligent dispatch, on-site settlement
A
Intelligent assignment enabled by GIS
B
Inspector data entry and print
Consumer Mobile App for Claim, Query, Renewal, and non-insurance service
CONFIDENT
Report Accident
Roadside Services
My CONFIDENT Policy
Car Tips
Towards a cloudy service economyMegatrend #5:
Services as vehicles for value transferring
Elastic services as value-adding vehicles
The service sector is increasing in economy structure
Product servitization is taking place in many industries, driven by specialization, customer demand, and technology maturity
The service-based business model can be more profitable, if the service can be standardized and automated
Many services can be digitalized and provided “in the cloud”. Cloud computing and BPO are converging.
PRODUCTION CONSUMPTION
servicesservices
services
Service sector is driving the world economy
Source: CLSA, Money Morning ResearchSource: IMF, World Economic Outlook
Driving forces behind product servitization
• The concept “Servitization” describes the transformation in which manufacturing firms once focus on the production of tangible goods turn to focus on providing service in its original business.
• Driving forces of servitization include:
– The power shifts towards the consumption side.
– Vendors want to shift from the one-time relationship to a long-term relationship, and therefore creates a “lock-in” effect
– Specialization creates economic advantage in Business Process Outsourcing
– Development in technology/information infrastructure
• Benefits of servitization model:
– Better match between the production and consumption. From product-centric to value- centric
– Shared resources and less materialized services create both economic advantages as well as environmental advantages.
Products vs. Services
Products Services
• Easy to be commoditized • Room for differentiation
• Product quality, functional robustness • SLA, on-demand and elastic
• One-time relationship • Long-term partnership
• Standard pricing • Utility-based or even performance-based pricing
• Big upfront investment and risk • Long-term partnership
• CapEx • OpEx
• Easier to standardize and reduce operational cost on vendor side
• Depends whether it’s high-tough service or low- touch service
Case study: jet engine manufacturers' “power by hour” model
Airlines have to make huge upfront investments
Risks in utilization rate, and mechanical fault during the operation
Uncertainty in maintenance and support- related cost, and need to have in-house expertise which is expensive
Before:
Low upfront investment, and predictable return on investment
Utility-based pricing
ROLLS ROYCE participates in the airline daily operation through remote services and embedded inspection systems (Quick) in the jet engines
After:
IBM and GE transformed from hardware to service providers
Zipcar provides shared-ownership model
Pay for actual usage with “in-car technology”, with hours and mileage information recorded and communicated with a central computer via wireless connection
Everything included (car usage, gas, and insurance)
Ability to reserve through web or mobile at any time
Plug-in hybrid vehicles
Benefits:
Pay-as-you-drive insurance: servitization of financial service
Premium based on actual risk exposure (mileage, speed, location, etc.)
More affordable insurance for drivers (especially those low-mileage drivers)
Initial research estimates that pricing insurance by the mile could cut total driving by 5 to 15 percent, which would make a huge environment impacts of the automobile, and also they might see claim savings through high-end policyholders
Insurers will see an increased market share and a growing reputation as an innovative, customer-oriented, and socially responsible company. They may also have fewer claims.
Benefits:
Servitization in the entire software stack
SaaS
PaaS
IaaS
Opportunities for enterprise IT
Ability to digitalize the traditional business services and therefore can provide them in a more scalable and resource-efficient way
Business Needs:
A service marketplace where services can be explored, traded, repurposed, and composited
Ability to integrate external services into the internal business processes seamlessly
“Internet of Things”
Industry standards such as Unified Service Description Language (USDL) for semantic integration
eSOA 2.0
“Internet of Services” platform
Convergence of enterprise IT and consumer IT
IT Trends:
SAP’s “Internet of Services” vision
Source: SAP Public Website
SAP’s “Internet of Services” vision
Source: SAP Public Website
Economy towards ECO nomyMegatrend #6:
2
Shift towards a sustainable value chain
Sustainable value chain
ENVIRONMENTENVIRONMENT
PRODUCTION CONSUMPTION
“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” – UN 1987
The external cost (environment) needs to be internalized into the economic activities
The shift towards a sustainable value chain relies on actions taken by all roles in the value chain.
How to build the economic incentives will be the key challenge
Driving forces
• Regulation & government mandates
– e.g. European Union Emission Trading Scheme, taxation
– Obama’s commitment in “an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050”
• Consumer awareness and media exposure drive sustainable consumption behaviors (e.g. eco-labeling)
• Cost pressures from increasing energy prices, and eco-friendly practices proved to bring economic savings as well (e.g. Dupon)
• Pressures from competitors and business partners in the networked value chain (e.g. ethic sourcing from the “retailers”)
• NGOs
• Sustainability bring tremendous business opportunities around product design, and business model innovation
Dimensions related to sustainability
• Greenhouse Gas (GHG)
• Clean energy
• Energy & Resource management
• People, health, and safety
• Product safety and stewardship (e.g. control of toxic materials)
• Recycling, disposal, and waste management
• Biographic diversity
• Intelligent transportation management
Sustainability practices
• Sustainability reporting
• Carbon-neutral and carbon-offset (e.g. retailers, DELL)
• Green supply chain and ethic sourcing (Walmart, HP, etc.)
• Environmentally preferable product design and packaging (Lenovo’s recycling materials, Intel’s power-saving microprocessors, green insurance)
• Environmentally preferable business models (e.g. DHL’s new document delivery service)
• Green platform (e.g. betterplace, cap-and-trade platforms, sustainability software platform)
• Equal opportunities for poverty in developing countries (e.g. microfinance and microinsurance, education program)
Sustainable consumption: Google PowerMeter
Source: Google Public Website
Sustainable consumption: Google PowerMeter
SAP’s sustainability reporting
Source: SAP Public Website
Sustainable consumption: green insurance
Source: http://www.greeninsurancecompany.co.uk/
GE’s ecomagination program
Source: www.ecomagination.com
Betterplace as new-practice platform
Opportunities for enterprise IT
Manage environmental compliance and risks in different regions
Ability to do environmental metering through easier data collection and analysis
Environmental accounting to include carbon footprint across the value chain
Ability to intelligently manage their production and transportation to reduce the consumption of energy and resources
Business Needs:
Sustainability performance management (EPIs, benchmarking, compliance, reporting)
Energy management
Emergency Management
Environment accounting leveraging the ABC methodology
Ethic sourcing, with environmental rating of suppliers as well as green indexing of materials
“Internet of things” together with business intelligence for automatic data collection and analysis
Embedded “carbon and trade” in financial controlling
Business Needs:
Photo credits
Streat Sign http://www.flickr.com/photos/mistermoss/3134331944/sizes/o/
Market Streat http://www.flickr.com/photos/nicholassmale/4291652894/sizes/l/
Platnet http://www.flickr.com/photos/wwworks/2222523978/sizes/l/
Bird http://farm4.static.flickr.com/3114/3199289522_36cf93846a_b.jpg
Empty office http://www.flickr.com/photos/zenobia_joy/3219818612/sizes/l/
Walmart http://www.flickr.com/photos/markjms/3466232927/sizes/l/
Intel http://www.flickr.com/photos/85638163@N00/4635052365/sizes/l/
Gloves http://www.flickr.com/photos/joost-ijmuiden/4191994421/sizes/l/
Chain http://www.flickr.com/photos/see-through-the-eye-of-g/4278205663/sizes/l/
Size http://www.flickr.com/photos/eyesplash/4268550236/sizes/l/
jet engine http://www.flickr.com/photos/stuseeger/774643686/sizes/o/
