Posted Date:
April 9, 2009
Filed Under:
Blog A Fujitsu study of 310 CIOs in Australia reports that IT departments are waiting for enterprise-wide 'green' policies to be set before embarking on projects within IT. Although some projects like virtualization or power management may be initiated for the cost saving benefits - these have not been supported by an overall strategy for green IT.
We'd like to hear your thoughts! Post a comment below and tell us why you are/aren't waiting to take on a green IT project. What are the questions you need answered? What do you need from the organization to move forward?









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Sun, 06/28/2009 - 13:59 — Sori (not verified)
I work in the telecom field and from what I have seen, the majority of CIOs won't move toward green technology because it is not highly visible. In other words, if the business decides to "go green" and print all stationary on recycled paper, then that can be seen by customers and give the business a brownie point. But going freen in the IT arena does not directly offer any "marketing" benefit to the business so that gets put on the back burner.
I know this is not really what you were looking for in the comments, but I kind of see things from an outsiders viewpoint.
Sun, 06/28/2009 - 11:41 — Rob (not verified)
Initially the cost of all green technology is going to be high. It's only when mass production factors and R&D kick in that it will start to get cheaper, thus being utilised more and more. Meantime no one wants to be the one suggesting spending more budget resources than necessary.
Rob
Wed, 06/24/2009 - 19:52 — Josephine (not verified)
It must be a money question before companies and it departments starts to really think about green projects. There is nothing more better motivator than money and goverments has to make the demand and need for green projects to get them really started.
Fri, 04/17/2009 - 14:54 — Teague (not verified)
In many cases, cost is the major deterrent. The easiest programs to push through are ones that have a business case. Thus, it is easiest to get projects approved that reduce cost, usually by reducing energy usage, but these projects are also contingent on having the cash on hand to make an investment in long-term savings.
As for waiting for enterprise-wide policies, it is possible that some departments and managers are hesitant to invest in one green tech with the possibility that another one will become the defacto choice after a policy is implemented, thus requiring an additional investment and the loss of sunk costs prior to recuperation.
Outside of projects that have a freestanding business case, the desire to wait for an enterprise-wide policy is perfectly understandable, as the investment will then be justified at an organizational level rather than departmental.
Sat, 04/11/2009 - 16:29 — Anonymous (not verified)
I think it's that the decision makers lack IT knowledge so they can't assess the value and impact of a green IT program.
We need someone who understands IT and green IT practices to clearly communication where the opportunities lie and how easy/difficult/expensive they are to implement.
Sat, 04/11/2009 - 00:13 — Ivy Chuang (not verified)
There are three main hurdles to companies adopting Green IT.
1) Cost
If companies are going to implement any new systems, there will be additional cost to the existing systems no matter what. We all know that cost-savings (as well the defacto eco benefits) for the long-term is the impetus to adopt many green policies. If you calculate ROI on a time trajectory, certainly you can see the impact in the long run, however, the initial investment must be from current cash flow.
2) Legacy Systems
This ties into the first answer, what happens to your existing technology? The existing equipment has surely depreciated and so it will be difficult to recover any previous investment. You will also need to train your staff on the new technologies. There is a learning curve that prohibits an instantaneous shift. In order to implement new systems, there is a transition period that requires the old system and new system to co-exist - during this period the cost is double and there is room for errors.
3) Performance
Will the green IT outperform the existing IT in every way? Many times no. For most companies, simply 'doing the right thing' is not impetus enough to make sacrifices on quality and performance.
The answer I have given is something that blankets size of corporation, but I will give an example with my small business - we are a 3 year old small start-up. We actually don't have a lot of IT investments, however, we do have a website and webhost that we have worked with since the incorporation of our company. About six months ago, we inquired with the webhost if they were taking any green initiatives such as carbon offsetting or implementing alternative energy power for their servers. Their reply was that they felt carbon offsetting was a sham, and they did not have the capital to pursue alternative energy. So it took six months later for us to sign up with another webhost, that is powered from Solar Energy directly. However, now that we have signed up, we have discovered that the new host does not have nearly a robust system as our previous host and they are more expensive. We see that there will be a learning curve to use the new system that has less features yet we are committed. So in the meantime, we are paying double, and figuring out how to do what we have done previously with less features. And in this case, we are hoping that in the long run, the solar webhost will be popular enough to drop their rates and improve their features - however, there is no guarantee, so in this example we are actually signing up to pay more indefinitely.
Now this is an example with minimal cost on a small business level, and being the owner of the company, I can make this decision. You can start to see the inhibitions becoming much larger depending on the size of the corporation.
Doing the right thing - should be incentive enough theoretically, but if the 3 factors mentioned above jeopradize the vitality of the company in any way, you can see why the green IT plan will stop dead in its tracks.
My answer is addressing what the obstacles are, but I believe all companies have to eventually realize that without the environmental commitment, we won't be worrying just about the vitality of our companies, but of our entire society. So I hope someday, environmental cost is added to the equation for all.
Fri, 04/10/2009 - 20:19 — Saiful Nasir (not verified)
My answer isn't really focused on why my organisation isn't adopting Green IT, but I can shed some light into the reason why, and also suggest a solution moving forward.
Why are companies waiting for enterprise "Green" policies before embarking on Green IT projects? Here are a few potential answers:
1) Management are not sure what to report on - Sure, Green IT has its benefits, and addresses CSR - but how do you measure it? There are simple things to measure, such as the OPEX and CAPEX in decommissioning data centres / servers for more optimised servers / outsourcing (or even cloud computing), and there are initiatives you have also mentioned in your question, but the biggest problem is that amongst all other initiatives (such as FTE Reduction Programs, Asset Liability Management, etc.) Green Initiatives do not have the strength to compete with other initiatives when it comes to RoI. Not because it doesn't have any benefits, but to tie it to a measurable that can be reported on is difficult.
What if there's a way to not only measure tangible and intangible benefits of Green IT, but also translate it into measurables the public and other organisations would understand?
2) Losing competitive advantage - lets face it, Green IT does cost money. Both you and I know that is money worth spending, but organisations face a difficult dilemma; kick off Green initiatives, and our Opportunity Cost will be great as that investment could be used to expand or improve other areas. But don't spend on Green initiatives, and it gets harder and harder to justify it in the future and CST is no longer addressed.
But what if there was a way to kick off Green initiatives that not only shows a great RoI, but at the same time reducing operational cost and also increase competitive advantage?
3) "I'm not really in the manufacturing sector, I'm in the services sector" - True, mining and sectors that heavily depend on non-renewable energy or emit the most carbon gasses are heavily blamed, but we're forgetting that the services industry also contribute significantly to carbon emissions. Especially with auditing and strict government controls, most organisations still deal with paper based processes, using different modes of transport for the sake of clients, etc. The mindset has to be changed - We ALL emit carbon at some stage, its just a matter of knowing how much and limiting it.
But what if there's a way to review the services sector, and start improving their carbon emissions and impact on the environment?
The solution that I have seen that would address all 3 issues above is simple: Green Process Management (GPM). It is using the tools and techniques that has made BPM a success in many different industries, but with a different focus: Environment First, Profits Later.
GPM is my way of trying to help out the environment - to develop a framework and a set of tools and techniques for all professionals to access and use, and help implement Green IT / Initiatives in their organisation.
GPM allows you to measure your organisation's impact on the environment, allows you to remain competitve as your business processes will be improved as part of the process, and its a framework that can be applied to any industry, so eliminating the mindset of "It can't be applied as my industry is unique".
Check out the initiative in the website below:
http://www.gpmhub.ning.com
Thanks and great question!
Links:
http://www.gpmhub.ning.com
http://www.innogreenie.com
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