The EU has mandated a rollout of smart meters to at least 80% of households by 2020. What are some of the transformative ways we will we use the extra energy consumption information these meters will bring?

Last November I wrote a blog post about new energy services and business models for utilities which the granular energy consumption smart meters measure will enable. In the post I noted that

according to the US Census Bureau:

The world’s 65-and-older population is projected to triple by midcentury, from 516 million in 2009 to 1.53 billion in 2050.

Further, there are currently 30 million solo-single households in the United States (more than the number of households containing married couples with children) and about one-third of these solo singles are men and women 65 years of age and older. The percentage is even higher in Europe.

Now, if I have an elderly relative living alone, wouldn’t it be a very useful service if I could receive a timely message from their utility company if there are deviations from the normal patterns of energy usage (if the lights aren’t turned off at 11pm or the coffee machine/kettle isn’t powered up at 8am)?

I have been positing this idea of using exceptions to normal energy use as triggers for alerts, especially for family members interested in the care of an elderly relative for quite some time. Every time I mentioned it though, I always received technical reasons why it wasn’t feasible. Until very recently that is.

A few weeks back I attended the SAP for Utilities event in Madrid. There I had a meeting with Axel Memminger where we were talking about SAP’s in-memory database HANA. Because HANA runs in-memory, it allows for very fast querying of massive datasets. This is fantastic for seeing trends in historic data but not for examining realtime info.

During our talk, Axel happened to mention that as part of the Sybase acquisition SAP now had picked up a realtime event processing engine called Event Insight. Event Insight was built to parse massive amounts of data looking for exceptions and triggering alerts in realtime.

It immediately occurred to me that this was the missing piece needed to allow utilities rollout enhanced energy services like the monitoring of elderly relatives I outlined above. When I explained this idea to Axel his eyes lit up and he started architecting the solution in his head as we discussed it.

“Would you be willing to pay for something like this?” he asked me at one point. “If this were offered for something like €5 a month, I’d pay it in a heartbeat” I replied. And I strongly suspect I’m far from unique in this.

With utility companies facing reduced incomes from energy sales, it is only by providing imaginative energy services like this that utilities will secure their long-term viability.

Nor will they be alone in plying for this business. I can see services like this being offered by telcos as well and even more likely, it is a natural extension of services from care companies who typically already offer remote monitoring.

Unless utilities are innovative in the energy services they develop and offer, they may find themselves sidelined in their core-market. Who’d have predicted 10 years ago that Apple Computers would be the dominant player in music sales?

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

This is the second video in my Sustainability Customer Reference series project – it involves my going to SAP customers and interviewing them about the sustainability solutions they have implemented. The first SAP customer I visited was AkzoNobel in Sweden. In this second video, I talk to Kimberly-Clark’s Barry Podd.

Here’s a transcription of our conversation:

Tom Raftery: Hi everyone, welcome to the GreenMonk Sustainability Customer Reference Series, sponsored by SAP. With me I have Barry Podd from Kimberly-Clark. Barry can you tell me a little bit about your role in Kimberly-Clark and also a little bit about Kimberly-Clark itself?

Barry Podd: My role within Kimberly-Clark includes looking after chemicals legislation globally for the company. And this has become more important for Kimberly-Clark over the last few years by the way the chemical legislation has been written, including companies who use chemicals, rather than manufacture them.

To talk about Kimberly-Clark, it’s a very large company, of course. We have a professional business, and we also have a consumer business. And it is probably the consumer business that is best known.

Products that we make are facial tissues. Kleenex is the big brand name in that area. Also our diapers, Huggies is the big brand name in that area. And we also make things like toilet tissue and Andrex and Scottex are probably the names that people know best in that area.

Tom Raftery: What impact has the changing legislation had on Kimberly-Clark?

Barry Podd: We have to do things like tracking the amount of chemicals we import as a global manufacturer from outside the European Union. Also, as far as our articles go, we’re very fortunate, we don’t tend to use hazardous chemicals in our products because of the nature of them, but that doesn’t help us under the legislation. We still have to track and know that we do not have those hazardous chemicals in our products.

Tom Raftery: And you’ve recently rolled out the SAP Product Safety Solution, what benefits do you see that having Kimberly-Clark?

Barry Podd: It will bring benefits in three areas. It will be fully integrated with the SAP software we already have, so a lot of the information we need is already in there and we’ll be able to bring it in and use it to the benefit of ensuring compliance with the legislation.

We still have a lot of data to collect from our raw materials suppliers, and also curiously from our customers on how they use the products we supply them with and SAP will help us in a big way to do that.

And then the third area that it will help us, it will help us store the information that we need to demonstrate that we fully comply with the legislation available to us in Europe. And there, that is one of the really big pluses of the SAP software solution.

Tom Raftery: And finally, what are your plans for the solution, now that you have it installed?

Barry Podd: Well, we’ve got big plans. Not only are we going to use it to ensure compliance with chemicals legislation, and it will be chemicals legislation around the world, but we’re also going to use it to produce our safety data sheets. One thing that we haven’t discussed at the moment is the legislation behind safety data sheets is changing, and they will have to include a great deal more information than hitherto has been the case. And we have decided to bring that now in-house, because that’s the best way for Kimberly-Clark to ensure that we comply with that legislation as well.

Tom Raftery: Barry that’s been great, thanks a million for talking to us today.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

I have recently started a cool project – it involves my going to SAP customers and interviewing them about the sustainability solutions they have implemented. The first SAP customer I visited was AkzoNobel in Sweden.

There I chatted with Lisbeth Svensson about their rollout of the SAP product safety solution.

Here’s a transcription of our conversation:

Tom Raftery: Hi everyone, welcome to the GreenMonk Sustainability Customer Reference Series, sponsored by SAP. With me I have Lisbeth Svensson from AkzoNobel. Lisbeth can you tell me a little bit about your role in AkzoNobel and also a little bit about AkzoNobel itself?

Lisbeth Svensson: Yes, I am a Development Manager in the area of regulatory affairs and in my role I have been managing implementation projects and development projects in the area of product safety.

Safety is, of course, very important for us to give the correct handling information, risk reduction measures and such.

Tom Raftery: Okay and AkzoNobel?

Lisbeth Svensson: And AkzoNobel is the largest global paints and coatings manufacturer and also a major player in the area of specialty chemicals.

Tom Raftery: With your job function being around regulation and your company being involved in producing chemicals, I imagine there are a lot of issues that you have to deal with.

Lisbeth Svensson: Yes, chemicals need to be regulated in different regulations all over the world and we have to comply with that and its differences from one country to the other. And to do that of course we need to have some — some IT solutions for — to support the product safety area. So I have been involved in implementing solutions for — to support REACH and GHS, which is Globally Harmonized System, and classification and labeling requirements.

Tom Raftery: And you recently rolled out the SAP product, safety solutions, how does that help you meet these challenges?

Lisbeth Svensson: It’s helping us in a way that we can manage input data from one location and still manage to get the compliant safety data sheets and labels in different countries all over the world.

And that helps us also if we want to put a new product on the market, that we already have a system in place to manage the safety data sheets and labels for that country.

Tom Raftery: Okay and finally Lisbeth what are your plans for the SAP product safety solution going forward?

Lisbeth Svensson: In the next few years, we will finalize all the implementation in the business units in specialty chemicals and when we have done that, all our safety data sheets and label will have the same look and feel across all the countries, all the business units and that will give us a perception of one AkzoNobel.

Tom Raftery: Lisbeth that’s been great, thanks a million for talking to us today.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

I’ve always admired IBM’s achievements in the diversity and equality arena.

Some of their milestones down through the years include:

• In 1914, 76 years before the US Disabilities Act, IBM hired its first disabled employee.
• In 1942 IBM launched a disabled employee training program.
• In 1943 Ruth Leach Amonette was elected IBM’s first female Vice President.
• In 1946 IBM hired T.J. Laster, their first black sales representative, 18 years before the Civil Rights Act of 1964.
• In 1953 IBM chairman Thomas Watson issued the company’s first Equal Opportunity Policy letter.
• And in 2011, IBM announced that Ginni Rometty would take over as President and CEO – the first female CEO in the history of the company.

Consequently, I was stunned to read at the weekend that IBM’s CEO was snubbed by the organisers of the US Open at Augusta simply because she is a woman, and despite this IBM continued to sponsor the event!

A bit of background – the Augusta National Golf Club is a private club, so it can set its own rules. Its rules have been notoriously discriminatory through the years – it didn’t admit black members until 1990, until recently it had a policy requiring all caddies to be black, and it continues to refuse women membership.

The fact that it refuses to allow female membership is now sharply in focus because the club has traditionally invited the CEO’s of the main sponsors of the US Masters to become members. By the end of this year’s tournament, despite IBM’s significant sponsorship, Ms Rometty had not been invited to become a member, because of her gender.

Now Ms Rometty is reportedly not a frequent golfer, so while it may not be a devastating blow to her game, it is a slap in the face that she wasn’t asked to be a member when her predecessors at IBM were. As were the CEO’s of the two other Masters sponsors (AT&T and Exxon Mobil).

IBM’s involvement with the event goes back many years and they are tied into it deeply not just financially but also at a technological level. According to Bloomberg

IBM is featured in the tournament’s TV commercials and runs its website, mobile-phone applications and media-center technology. Palmisano serves on Augusta’s technology tournament committee. He remains IBM’s chairman — a role Rometty is likely also to assume upon his retirement

Augusta may need IBM more than IBM needs the Masters.

Despite that, IBM went ahead with its sponsorship of the event and made no statement about the bigoted position of the club or its treatment of their CEO (and any other woman who may wish to become a member).

It would be outrageous if IBM were to continue to sponsor an organisation which practices such blatant discrimination. If the club’s rules banned people based on their religion, or their sexual preference, or as they did until recently, their race, would IBM sponsor them? Of course not. This is no different.

Some will argue that IBM gets great publicity from the Masters. Publicity which it would be loath to lose. I doubt that is the case for two reasons – 1. IBM would likely get tremendous press if it very publicly withdrew its sponsorship from the event on the grounds of the club’s prejudicial rules and 2. I’d like to think IBM is not the type of company that sells its ethics and reputation just for a couple days in the limelight.

If nothing is done to correct this, the fact that IBM is financially (and technically) backing such a sexist organisation, threatens to do serious damage to the good name IBM has built-up as a corporate citizen over the years. And that’s not at all to touch on the message this sends to IBM’s female employees – what must they be thinking about IBM’s attitude to women now?

For example, I can’t help wondering how this squares up with IBM’s Workforce Diversity Policy states [my emphasis added]:

Business activities such as hiring, training, compensation, promotions, transfers, terminations and IBM-sponsored social and recreational activities are conducted without discrimination based on race, color, genetics, religion, gender, gender identity or expression, sexual orientation, national origin, disability, age or status as a special disabled veteran or other veteran covered by the Vietnam Era Veterans Readjustment Act of 1974, as amended.

These business activities and the design and administration of IBM benefit plans comply with all applicable federal, state and local laws, including those dealing with equal opportunity. IBM also makes accommodation for religious observances, which IBM determines reasonable.

In respecting and valuing the diversity among our employees and all those with whom we do business, managers are expected to ensure that there is a work environment free of all forms of discrimination and harassment.

We can only hope that work is going on behind the scenes to fix this. It will be interesting to see what the position will be for the 2013 Masters Tournament – will IBM still be a sponsor? will Ginni Rometty be admitted as a member as an exception to the all-male rule on the basis of IBM’s sponsorship? or will the club finally change its misogynistic rules?

If next year the club still refuses to have women members, and IBM continues to sponsor the Masters, it will see IBM become the unlikely new champion of discrimination against women.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

SAP launched its 2011 Sustainability Report this week and in terms of aesthetics and social sharing, this is one of the best Sustainability Reports I have seen to-date.

The site contains many videos with SAP staff – including one from co-CEO’s Jim Hagemann Snabe & Bill McDermott which is featured prominently on the home page. Interestingly there are also several customer reference videos as well with the customers vouching for how SAP have helped them become more sustainable.

There are also many blog posts and interesting stories from SAP employees talking about everything from Materiality, through to Electric Vehicles.

There is a whole section in the report dedicated to how SAP Empowers its customers. It includes customer video testimonials, white papers and some very impressive top line figures for savings (“5.7 million tons of estimated carbon reductions, saving $550 million in energy costs”). However the methodology for producing these data is not gone into in any detail in this section. I contacted SAP to voice my concerns about this and they assured me that in the next couple of weeks the report will be updated to include the methodologies, and the story around producing this innovative section of the report.

As you’d expect from SAP, there’s also a lot of data in the report on how they are doing on their journey to sustainability and it’s mostly positive results. Almost all of their numbers are headed in the right direction. Unfortunately the exceptions to this are in the environmental area with increases in Data Centre Energy, Total Energy consumed and SAP’s Greenhouse Gas Footprint.

On the data centre energy front, the energy increase is both in real terms, and in kWh per employee. This is likely due to SAP increasingly hosting customers data and applications through their cloud offerings. What might be interesting here would be to see a kWh per cloud customer metric, or similar. Also, one would suspect that there should be a net reduction in energy consumption for that application, if it is replacing a customer’s pre-existing on-premises application. There could be some interesting data to mine there around energy wins.

On the Total Energy Consumed page you see that energy consumption has increased from 843GWh in 2010 to 860GWh in 2011. In the report it attributes this to growth in the business (SAP bought SucessFactors during this period) but the lack of a kWh per Employee metric on this page makes this hard to verify.

On the Greenhouse Gas page, we again see an increase in emissions from the 453kTons 2010 figure to 490kTons in 2011. On this page, it is possible to see a By Employee figure and here too we see an increase in emissions from 8.7 tons per employee in 2010 to 9.0 tons in 2011. However, when we look at the emissions by € revenue, we see a fall, from 36.3g/€ in 2010 to 34.4g/€ in 2011. 2011 was a good year for SAP, from a revenue perspective, it would appear.

On the upside, SAP has increased its use of renewable energy from 45% to 47%. Not a huge increase, to be sure, but at least this environmental metric is going in the right direction.

I mentioned that the site has a lot of social sharing built into it – there’s a “Share this page” on every page which allows you to share that page on your social network of choice (or print, or email!). However, in terms of interactivity, the report seems to have regressed. In the 2010 report, there was the ability to comment directly on any page, to rate comments, and see conversations taking place about the page, directly on the page. This functionality has been removed completely from the 2011 report, and to be honest, the report is the poorer for its removal. Browsing other readers comments on pages is always a superb way to gain others insights into the page content – both for consumers of the report, as well as for SAP.

From a UI perspective there are several glitches on the site (some rollovers not working; external links and links to PDF’s not made obvious; and inconsistent use of pretty permalinks etc.) but these are minor quibbles and easily fixed.

The 2010 report doubled individual visitors over the 2009 report, with the 2010 report receiving over 60,000 readers. SAP tell me they are aiming to maintain that progress and have over 120,000 visitors to this, the 2011 report. One huge advantage of having the report in the form of a website, is of course the invaluable data stream you receive from the visitor analytics to the report. Something which is impossible to achieve with a PDF.

On the whole, SAP’s 2011 report, with the removal of the interactivity and the increased energy and emissions, seems to have faltered slightly in terms of the tremendous progress it had been making to-date. To put that in perspective, SAP’s 2011 report is still one of the better produced sustainability reports.

For the 2011 report I’ll have to grade it as “very good, but could do better”.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

Attending IBM’s Pulse 2012 event this year I was again struck by how much IBM’s Maximo is used in maintenance management applications.

And why do we care about that you ask?

Well, keeping machinery properly maintained, and alerting if machines go out of tolerance for certain parameters (energy consumption spikes in refrigeration plant, fuel or oil consumption in engines, even the presence (or absence) or certain chemicals, etc.) is often an early sign that that machine/system is faulty. Sometimes this fault can result in extra consumption of a resource, other times it can be a safety issue. In any case the measurement and alerting can kick off a pro-active maintenance ticket which may otherwise have been missed.

Correct scheduling of servicing for a lot of machinery is a sustainability win too. If machines are not serviced according to the manufacturers schedule, consumption tends to increase, but properly maintained they are safer, and typically consume less.

I came across an interesting example of this recently with IBM’s announcement of a project to make the US’s 2nd largest school district one of its greenest and most sustainable.

The Los Angeles Unified School District (LAUSD) has 700,000 students, 14,000 buildings spread over 710 square miles in California. It receives more than 300,000 maintenance service requests per year.

How are IBM going to improve it?

They are making it more efficient by allowing students, teachers and staff to report issues like water leaks, broken aircon/heating, exposed cables and so on, by sending text messages and photos through their mobile phones. One receipt of the text, GIS is used to locate the problem which is then submitted directly to the Maintenance & Operations Service Call Desk (which runs on IBM’s Maximo Asset Management software).

“Each year we found we were spending too much time, money, and energy locating, and reporting a problem before we even had the chance to fix it,” says Danny Lu, business analyst, Los Angeles Unified School District. “By finding a more efficient way to report and locate needed repairs, we are able to respond faster to serve our campuses. The best part is that the solution is at the fingertips of most everyone on campus.”

Text messages are great, but obviously this needs to be expanded way beyond just sms (use of which is declining globally). This kind of project needs to have an app for each of the major phone/tablet OS’s, it needs to be able to listen in on social media channels, as well as being able to receive texts. Only when all communication sources are catered for, will an initiative like this have a chance to make this school district the US’s greenest and most sustainable.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

In my reviews of tech companies sustainability reporting, one very obvious laggard has always been Microsoft. Hopefully that’s all about to change.

Why? Microsoft has just signed up with CarbonSystems to use CarbonSystems cloud-delivered Enterprise Sustainability Platform (ESP) to manage its energy efficiency initiatives and for reporting its environmental performance globally.

This is big news. Microsoft has 600 facilities across 110 countries worldwide. For the first time, the full energy and environmental footprints of all these sites will now be managed from within a single cloud-delivered resource, the CarbonSystems ESP system. The levels of transparency this will give Microsoft will be immense. Perhaps now, unlike many of its competitors, Microsoft will be able to join the EU’s ICT Footprint initiative.

This move should also enable Microsoft to report on the energy and emissions associated with its own cloud infrastructure – something, like all other cloud providers, Microsoft has failed to do to-date.

This move is a big deal for CarbonSystems too. CarbonSystems are an Australian company and have done quite well there but have more recently been eying the EU and US markets. Being selected by Microsoft for a global rollout has suddenly catapulted them up the credibility charts. Had you asked me previously which 3rd party platform Microsoft might have chosen I’d probably have mentioned SAP, Hara, CA, or Enablon.

Now with this win, CarbonSystems too has a seat at the big boys’ table.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

At the SAP TechEd event in Madrid recently, JD-OD.com had an interview scheduled with SAP’s Scott Bolick. Scott is responsible for SAP’s Sustainability Solutions. Dennis Howlett, of JD-OD, knowing my interest in sustainability, asked if I’d like to conduct the conversation with Scott.

I was happy to oblige and so here’s a transcript of our chat:

Tom Raftery: Hi everyone. This is Tom Raftery of GreenMonk TV, doing interview for JD-OD. And with me I have Scott Bolick from SAP. Scott, would you like to introduce yourself?

Scott Bolick: Thanks Tom. My name is Scott Bolick as you said, and I’m responsible for SAP Sustainability Solutions and those solutions are across at four different areas and hopefully we can chat a little bit about those now.

Tom Raftery: Sure. So Scott, sustainability it’s a – the whole interest in sustainability is wearing off isn’t it, nobody is really into sustainability these days. Am I right?

Scott Bolick: Well I think you are wrong, I think there is a caveat. I think one of the things that we’ve seen in the market which I think is actually a good sign is that sustainability was a topic de joure in 2008, 2009. It’s still there, you still see more and more CSOs coming online but what you are seeing is instead of a centralization of power within those chief sustainability officers, what you are actually seeing is the sustainability officers setting the strategy for the company.

And then whenever you look at the actual execution, when we look at where people are actually purchasing IT that really is coming down into the LOB, so it’s R&D for sustainable products. It is the supply chain when you look at sustainable supply chain. It’s manufacturing whenever you look at sustainable operations. So I think to say that it’s not there, it is wrong, I think it’s there, it’s stronger than ever. I think what people are discovering is it’s sedimenting back into the underlying businesses and that’s where it should be fundamentally.

Tom Raftery: Okay, but I mean with the current state of the economy, are people really willing to get their –stick their hand in their pocket and spend money on sustainability solutions?

Scott Bolick: Yeah, absolutely. And I think when you take a look at why people buy for sustainability, I think there is three reasons people buy. First and foremost is compliance, and there are increasing regulations around the globe whether it be for product or whether it be not just for — whether it be safety and showing that you are increasing the safety within your operations. And so one of course whenever you take a look at that and you look at the complexity of business, it’s spread out on global operations, they need solutions that are IT solutions to be able to adhere to those regulations in a timely and in a low cost manner.

Second you continue to see people interested in those solutions that help them save money, energy management obviously being top of mind.

And third, there are those companies that are spending on aspirational, really trying to understand what is the product footprint of the products that they sell into the market and how they can lower that footprint whether it’d be carbon or whether it’d be other substances.

Tom Raftery: And where are you seeing most of the traction these days? What is the most – what is the area of the largest – well either spend or interest for SAP at the moment?

Scott Bolick: I think if you take a look at some areas that are really hitting for SAP, one of the areas is operational risk management. And if you would go back and you just look at the last couple of years, what you see are these big events that these events happen and then there is a tremendous impact on the brand reputation, there is a tremendous impact on the financial valuation of those companies. And so what you are seeing is companies on a trend, the first trend on operational risk was really about compliance, am I compliant to regulations, now you are seeing people increasingly looking at proactive prevention, how do I actually go out and report incidents before they happen, how do they then analyze those incidents, put them in a risk framework and then how do I actually execute management of change. So we are definitely seeing a tremendous amount of interest from across multiple industries.

And finally what we are beginning to see is some really interesting stuff where people are looking at the tremendous amount of data they have and trying to figure out how they can correlate that data and actually get into predictive analytics around risk. So that’s one of the areas we’re definitely seeing.

Tom Raftery: Okay and when you talk about data I mean a lot of – the various solutions have massive amounts of data associated with them, how is SAP going to handle that, the big data issue?

Scott Bolick: I think one of the things that we are fortunate is that unlike some players in the market, we within SAP have strong technology both for analytics and then when you look at big data obviously we have HANA. So some of the things that we are doing is working with customers and determining how we can leverage HANA to push them over limits that they might otherwise have. Limits in terms of their own operations and limits in terms of processes.

One of the ones I love is we have an embedded product compliance customer who is now looking at putting embedded product compliance on top of HANA. So this company has 100,000 different recipes, they produce 3000 to 4000 documents a day and obviously that’s on the backend, but on the front end they have got to really make sure during the design process that they understand whether or not the substances, whether or not the ingredients are going to be compliant to regulations. One of the things they are doing is by putting it on HANA is they can get the check back in a second rather than getting a check back in terms of minutes or hours. And obviously if you are in R&D, the last thing you want to do is your designing — is to sit in front of the computer and wait to determine whether or not it’s compliant with regulations and obviously those regulations are regulations that are country specific.

Tom Raftery: Sure. So sustainability is here to stay.

Scott Bolick: Absolutely.

Tom Raftery: Great. Scott, thanks a million.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

SAP invited me to attend their combined Sapphire/TechEd event in Madrid last week. While there I took the opportunity to have a chat with Jeremiah Stone to get an update on the state of play in sustainability solutions.

Here’s a transcript of our conversation:

Tom Raftery: Hi everyone welcome to GreenMonk TV. We are in Madrid for SAP’s SAPPHIRE event and with me I have Jeremiah Stone. Jeremiah, you are on the SAP sustainability team. What is your role there?

Jeremiah Stone: So, I’m a senior director for solutions management and what that means in SAP is that I’m responsible for the business cases for producing our products, so developing new products. And then I work with our key customers as well in making sure that our products continue to meet their needs and that we do quite a bit co-innovation with customers and that’s my team that tends to drive that as well with our strategic customers and so really managing the business case and then we build and execution, and rollout of products.

Tom Raftery: So there is a business case for sustainability?

Jeremiah Stone: Well, at SAP there sure is. It’s a interesting aspect I think of our sustainability case that people typically are surprised by is that every single one of our investments is actually a bottom up business case just like any other piece of software at SAP where you have to build the customer business case first. So really what is the customers tangible pain, how much are they spending to deal with that pain today, what are their alternatives, how much can we generate in terms of value for the customer with some development, and then is there a reasonable value capture for us, in other words can we charge the customer a reasonable amount of money to justify us investing in the software. And so we do that for every investment that we make and so that also helps the conversation of course from a business point of view because then we’ve done all that work upfront, we can go to the customer, we can explain the customer business case that we’ve developed and we can validate that and from them to make sure that there is a return on that investment and then they can treat it like any other IT investment. And the other thing, you know with sustainability at SAP is its embedded into our business and so when I’m competing for development resources I’m competing right next to the guys who are developing for HANA, the people that are developing for HR, people for financials, CRM et cetera. So we would, be really treated just as any line of business at SAP, we don’t get preferential treatment et cetera and then really is based upon business case for each investment that we make.

Tom Raftery: Cool. And what is the hot button topic for people right now in sustainability?

Jeremiah Stone: It’s a good question, I think right now we see you know phasing of a development of the market, it continues to be really around management of risk and compliance primarily in the safety of operations. So and that goes really there’s asset intensive and asset non-intensive industries, so I’ve customers in transportations and logistics, major airlines, looking at how they can be safe and that is a bottom line number for them. Obviously if they are damaging aircraft or whatever they are not going to be performing well and so that there is really a safety org from a compliance point of view, that is access to markets. So as public and governmental toleration of eco-toxicity of hazardous materials et cetera is declining, there is this more and more transparency around products and their constituent chemicals et cetera and substances.

The regulatory bounds and burden is going up and on companies to declare the substances in their products so that they can sell them in those markets. That’s primary driver skill, we definitely see energy management is the fastest growing area and that’s really energy and environmental resource management, so not just energy but you can think really sort of all of the inputs into the business whether that’s energy for other resources in other words very much you could think of it as a traditional SAP strength, you think around energy. Although, it is a different challenge as you know because there is the utility as well, involved in that and that’s somewhat complex, there is definitely demand for that, is one of the fastest grown, it’s not biggest business yet, but it is the fastest growing. And then we continue to see a smaller market, but still increasing around analytics, reporting strategy management, setting targets, managing to those and then reporting out to I don’t know the global reporting initiative et cetera on sustainability performance, but for the majority where we are making our money today with our product lines is really around that risk management and compliance activities.

Tom Raftery: Okay and the whole sustainability area is a relatively new business area, is it one that you see is going to be going big time, is it, I mean we’ve seen a jump in last couple of years just because companies started getting into it, but you know is it on a hockey stick or is it kind of plateaued or where about is it?

Jeremiah Stone: Well yeah, I mean it’s very rapidly growing market. We see the overall market size growing compound annual growth rate of around 18% to 20%, so it’s a pretty significant growth in the current spending environment. Lot of that’s because of loss control. So if you think of the current global environment, access to credit isn’t available, stability of financial market we’ve learned, interested in making capital investments if they can’t ensure that that capital investment will be safe.

Tom Raftery: Yeah.

Jeremiah Stone: So in ironic way you know really is that sort of resource constraint or fear of loss that’s driving sustainability as well from any investment. So it isn’t necessarily a, you know there is a joke even people when they spend money on software for you know greed, fear or aspiration, most people assume it’s aspirational in nature when people make sustainability investments, because you want a halo or improve your brand image which — there is some of that, but most of our customers it’s really around the loss management. And to a certain extent the — you know the ambition to grow your brand, grow your business. We do have customers like Solvay for example, I think you may have gotten to talk to them over here.

Tom Raftery: I’m going to see them this afternoon, yeah

Jeremiah Stone: Okay, so I mean they — you know, really say that they are more competitive as a result of the investments that they make in sustainability. So it is a growing, it is an evolution of some older lines of business in this case environment health and safety management that has been there for a very long time. And you know we invested and purchased data that’s strategic to us a couple of years ago but we are on a pretty furious trip to double the pre-acquisition revenue relatively soon. So it is a fast growing market, we are having a lot of success with it and you know we believe that it will continue to be a strategic fast growing market, so.

Tom Raftery: Fantastic. Thanks a million Jeremiah. That was great.

Jeremiah Stone: Thanks for having me Tom.

Disclaimer – SAP paid for most of my travel, food and accommodation expenses to attend this event.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down

Utility companies face significant challenges in the coming years, not least of which is the the need to increase revenues while helping customers reduce their consumption.

One trump card they will have is the data from their smart meter rollouts. This will enable them to offer energy services around the data which would not previously have been possible.

Simple examples of this are the ability to alert people if their consumption is about to tip them into a higher tariff band or, for people with holiday homes, a notification if the lights turn on when their property is supposed to be unoccupied.

These would be quite basic offerings – but with a little bit of thought one can imagine other higher value options.

Consider that according to the US Census Bureau:

The world’s 65-and-older population is projected to triple by midcentury, from 516 million in 2009 to 1.53 billion in 2050.

Further, there are currently 30 million solo-single households in the United States (more than the number of households containing married couples with children) and about one-third of these solo singles are men and women 65 years of age and older. The percentage is even higher in Europe.

Now, if I have an elderly relative living alone, wouldn’t it be a very useful service if I could receive a timely message from their utility company if there are deviations from the normal patterns of energy usage (if the lights aren’t turned off at 11pm or the coffee machine/kettle isn’t powered up at 8am)?

This kind of service should be quite straightforward for electricity utilities to provide once they start receiving the detailed energy usage data which smart meters will deliver. This will enable utilities to transition to becoming suppliers of energy services and open up entirely new revenue streams for them.

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This post, written by Tom Raftery originally appeared on GreenMonk: the blog GreenMonk: the blog - Green from the roots up, Sustainable from the top down