Monthly Archive for January, 2008

Green is a form of Lean

Many of us are thinking through the implications of greener supply chains.

Al has been giving it some lately, for example, with his thoughts on the Carbon Added Tax. Over at SAP Research Andreas Vogel is leading the charge. IBM is doing some solid work here, as is BT. But we’re beginning to see a potential backlash, based on the Greens are Dreamers frame. The argument is that green thinking and approaches will be jettisoned as economic conditions toughen. But is that necessarily the case? Jason Busch from SpendMatters nails it in a post entitled How Will Green / Sustainable Procurement Play in a Recession?

While it would be easy to dismiss green and sustainable procurement practices as a luxury for companies to invest in when times are good, I actually believe that they could help organizations to buoy their top lines and pull up from a spiraling downturn or period of contraction. Whether it’s better marketing the benefits of green supplier practices to customers to spur pent-up demand or making investments in supplier development initiatives which reduce unnecessary packaging, supplier-focused sustainability initiatives have the potential to drive sales and reduce cost.”

I hold a similar line: it seems daft to argue, as the Bush Administration repeatedly has, that efficiency efforts harm economies. Efficiency can help you cut cost, even if (especially if?) its energy costs we’re talking about. Jason gets some great comments on his post. For actionable advice why not try Paul Gooch’s suggestion:

A former employer of mine ran an internal initiative called WRAP…waste reduction always pays. This applies as much to purchasing as any functional activity. The benefits go straight to the bottom line, and in the process you reduce your energy usage, carbon footprint, etc

But Lisa Reisman really distills the arguments to 100% proof: “green is a form of lean”. Thinking about carbon consumption is not just protectionist sabre-rattling: its an efficiency argument. It strikes me at the moment many economists and business commentators just aren’t thinking through their positions. We’re seeing rhetoric as the primary argument. Greens are luddites. Localisation means a return to the stone age. And so on. Green is a form of lean.

The implications for software and services companies are clear - keep investing in Green, recession or not. You can always change your marketing to read “cost-cutting”. If however you’re relying on a return to abundance as a primary planning assumption you could be in major trouble. Spend matters green or not.

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Shai Agassi To Forge Israeli Electric Car Network

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So ex-SAP executive Shai Agassi’s Project Better Place has managed to pull it off. Former product chief Shai catapulted coolly into DLD in Munich yesterday straight from Jerusalem, where he had launched one of the most curious deals the auto industry has ever seen. He drove out that afternoon. To Davos.

Alongside Israeli Prime Minister Ehud Olmert and Renault / Nissan’s CEO Carlos Ghosn, Agassi announced, a spectacular and audacious agreement on Monday to deploy a new kind of electric power network and set of cars to run on them that will get Israel’s car drivers off oil as quickly as possible. It’s consistent delivery on his October deal, when he raised $200 million from Israeli Corp and VantagePoint Venture Partners.

Shai and I spent thirty minutes talking yesterday in Munich and what I heard proved to be true. On stage, Agassi is a brilliant presenter, dashing, focused, witty and strident. He’s up there with Al Gore in getting you by the throat and implying “talking about this isn’t enough!” and stood shoulders above the impressive line up the crushed and seat-deprived attendees of Burda Media’s DLD event had seen.

Project Better Place will integrate and deploy a new product, sales and support channel (read ‘charging’ stations) that will allow Israeli consumers to drive their own pure electric (not hybrid) car that has a 200km or so range. It will feature a new design of battery that can be swapped in and out in about the time it takes right now to fill up a car with gasoline. People will be able to do so at a country-wide network of swapping stations, or charge cars via power points. The cars will be designed and built by Renault / Nissan. Agassi says it will reduce oil use in Israel drastically - we’re talking figures like 50 per cent here.

The capital to get this going has come from a group of investors that includes Israeli Corporation (which right now supplies Israel with oil - proving, as with Abu Dhabi’s latest moves - that oil money can sometimes turn green) and also features VantagePoint Venture Partners, blessed right now with this shining star to distract everyone from the mess at Tesla. Agassi claims the system will launch within four years.

One of the big features of the system is that electric power will be sold as packages akin to the way that mobile phones are sold today - there will be multiple plans you can buy, including one that says if you buy about six years of power, they’ll throw in the car for free.

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But can he really pull it off? Agassi has got to this situation incredibly quickly. When I ask how in a year he has managed to leave his old job and do one of the most audacious deals imaginable he says “Nine months! It’s been nine months!”

In truth, for any entrepreneurs out there who may suddenly feel deeply inadequate, Agassi has had this process in train for three years. The journey started when he listened to a challenge by a speaker at Davos to do something to make the world a better place. Agassi admits that during those first few years “I walked every single wrong path first. I was sure for months hydrogen, then I was sure it would be ethanol.”

This characteristic of Agassi’s seems crucial to understand. You feel he’s churned the options over in his head constantly and worked out the answer. Now he’s settled on it, his purpose is to set that vision out to the world, do the necessary business deals to make it happen and then…”. Actually, “and then?” is a fairly good question and there isn’t right now a lot of substance to see, beyond the deal itself. Be in no doubt that Project Better Place now needs to ‘execute’, as IT guys would say. They’ll need some very talented people, they’ll need to ensure that Renault / Nissan and other partners such as battery provider NEC deliver technologies, and integrate those technologies together, on time. They will also need to work out the details of the service model and sales and marketing, factors that could make or break the project. And of course if oil prices fall dramatically (admittedly unlikely) the economics become a problem.

So is the man up for it? The company website is today a lonely place, with a link to ‘leadership’ that leads to… just Agassi. There are two people photos. Him and, curiously, his young son, who is part of the Davos pitch. Yet while Agassi himself quipped on stage to the (German) DLD audience that he “used to be the next CEO of SAP”, he never was SAP’s CEO and opinions gathered from my Twittering IT analyst friends vary on just how successful his time at that firm was.

First, here’s Dennis Howlett, veteran technology and financial software analyst:

“Shai created a roadmap and at one stage was delivering a ton of product [at SAP]. “But it became indigestible for many SAPpers.”

Then over to Greenmonk’s own James Governor:

“The Agassi legacy at SAP?…. a job unfinished. He built an architecture, but it was not as widely adopted as he, or the board, wanted.” James’s other comment is curious. “Shai evidently doesn’t have a great deal of patience and is inclined to hector communities (for example, customers) that don’t do what he wants.”

What next? Well Project Better Place has a hell of a lot to do and, once Davos is over, Agassi better get together a brilliant team and start executing. Right now, you hear nothing except him. While the project talks about partnership and being open, it would seem that the big deal has for now taken priority over engaging the talent base required. The firm will need a lot of great people, and those partnerships will take a lot of managing.

What’s sure is that the world is a better place for this development. Amongst the visionaries and future talk underway at DLD, Agassi stood out as a doer.

But don’t for a minute think this is the only future for cars. Agassi’s vision has unlocked anything up to a billion dollars but there is surely more to come and many things are happening right now. Agassi is a visionary but his vision is pretty narrow.

Shai’s in Davos now, wooing the great and mighty with that vision and his audacity. For the next three years he’ll definitely be judged on that ability to ‘execute’. We wish him well.

Read on at Re*Move, where we ask Is Project Better Place the big answer?
Mark Charmer is a contributor to Greenmonk Associates. He is CEO of The Movement Design Bureau, a think tank.

Photo credits: Project Better Place.

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On CES, Greening, and Gizmodo as Eco-Pranksters

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Its a laudable goal CeBIT would begin the long road to greening by fully supporting the Climate Savers Computing Initiative. But I should point out the power used at trade shows is just absurd - all those banks of screens talking to nobody in particular.

Should we should reconsider the Gizmodo guys as eco-pranksters (have you seen the video, where all the huge screens start turning off, one after another? Maybe they should join the Green Forge.) I still don’t really understand why so much anger was directed at Gizmodo, people talking about lawsuits and so on. Annoying yes. Business threatening- come on people, get some perspective.

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Tracking a Greener Africa: Twitter as social network amplifier

Continuing to play in the Twittersphere, I came across a really interesting service today - called WildlifeDirect. The organisation is evidently making pretty slick use of social media tools. All I recieved was a notification that WildLife Direct was following me, but here I am bringing them to my community.

@WildlifeDirect offers short punchy (140 characters or less) notifications about conservation projects and problems in Africa. Some tweets are designed for fund-raising for particular initiatives. For example:

“DR Congo: $3000 out of $20,000 still needed to protect mountain gorillas habitat from becoming charcoal -Pls Help!”

Other notifications are updates or news about particular projects. WildlifeDirect is taking advantage of me as a 21st century switchboard operator. The model would work equally well for any type of NGO, but the green tech community is definitely leading the charge.

Education is of course critical - and when you read this:

“Kenya: Brilliant blog posts coming from the Mara Triangle. Last week Kimonjino couldn’t even use a computer mouse.”

You just have to follow it to Anti-poaching in the Mara Triangle. I can’t really blame the poachers- they look like they may well have hungry children at home. But WildlifeDirect is concerned with conservation, and its evidently doing a fine job of identifying projects and letting contributions go to those specific initiatives rather than into a general bucket. For example providing firewood to a large refugee camp near a Gorilla sanctuary. IT-enabled trackability is a going to be a big part of conservation efforts globally. I will be keeping track of this - and probably making some contributions. Bringing that together with blogs and videos is really best practice in NGO social IT.

Small things loosely joined, making a difference.
picture of Koikai courtesy of WildlifeDirec. If you have a spare tri-band phone he might like it…

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Go Green: Shave Costs

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20% reduction represents a mighty close shave. silicon.com reports that Mark Blowers, senior research analyst at Butler Group, claims significant cost savings can be achieved by going green in a report entitled Sustainable IT Provision - Meeting the Challenge of Corporate, Social and Environmental Responsibility. I like the sound of it - it evidently goes beyond just green data center thinking.

“Radical solutions such as designing software to consume less processor cycles and using hardware that does not require a power-hungry AC-DC conversion should be standard practice, the report says.”

Amen, Mark. In other shaving news this week, Computerworld reports that HP is apparently on a mission to reduce emissions: aiming for 25% better efficiency in its PCs and laptops within 2 years.

At the Consumer Electronics Show in Las Vegas, HP said that to reach its goal it would cut energy usage by integrating power saving technologies and processes, including more efficient power supplies and lower-energy chipsets. The company plans on making the changes across its entire PC line.

Well done HP.

 

picture courtesy of scottfeldstein on Flickr, creative commons Attribution 2.0 license.

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Its Not The Houses That Are Smart Its The People

Probably the most interesting recent news GreenMonk has seen comes from a research project at the US Department of Energy, reported in Computerworld: Pilot program puts “smart” houses on network that adjusts energy use to pricing.

The technology in play included wireless technologies, broadband connections and back-end systems that use a Web-enabled service-oriented architecture for linking disparate information systems.

The intent of the “intelligent smart-power grid” is to give consumers the ability to conserve energy with systems that automatically adjust to pricing. There are a number of ways in which that might work, and here’s one: In the event of a heavy electric demand period that is threatening a power outage, a clothes drier embedded with a controller could receive a signal that prompts it to turn off the drying element for a short period.

IBM was involved in the project, and its good to see Big Blue doing something that affects consumer behaviour. What I find fascinating though is not the automation - its the fact that if people have better access to information, they will adjust their behaviours accordingly. Electricity meters shouldn’t be down in the basement.

According to ARS Technica:

In effect, such technologies make both the machines and their human owners into members of what the lab calls “a collaborative, distributed, commerce-driven ’society’”—some of the same terms used to describe the many “Web 2.0″ destinations. In this case, though, the purpose isn’t to create the Internet’s most tech-savvy collection of minds (see the Ars OpenForum for that) but to create a “shock absorber” for the national power grid; saving money for consumers is simply a byproduct of that process.

There is an extremely cool product out there which makes electricity use manifest - the Wattson. They have a cool slogan too- DIY Kyoto.

People are perfectly capable of making intelligent, well-formed decisions, if they have the relevant tools. Bringing meters out into the open is going to be a big part of the changes societies make over the next few years. I love a quote from the Guardian story:

“Our kids are saying that they are helping to stop the ice caps melting,” she said.

My little boy is only two years old, so perhaps I am not best equipped to comment yet, but as I understand it having kids pester their parents to turn off lights - usually only happens once they have left home and are paying the bills…

special thanks to Mike Gunderloy, who sent me a link to this story through Twitter, saying it was “greenmonky”. he was right.

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