Design Enlightened by Megatrends


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Design Enlightened by Megatrends

  1. 1. Design Enlightened by Alex Zhu Director of Product Management,  eBaoTech Corporation 
  2. 2. INFORMATION FINANCIAL TECHNOLOGY SERVICES CONSUMER GOODS “ ” The future is already here – it's just not evenly distributed. - William Gibson, 2003
  3. 3. 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
  4. 4. 10 YEARS 2 YEARS “ ” 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
  5. 5. chapter I: The Endless Pulse of Innovation
  6. 6. Digital structure echoes real-world structure ENVIRONMENT PRODUCTION CONSUMPTION Economic and Socio- environmental Structure Enterprise IT Consumer IT INFORMATION Technological Structure INFRASTRUCTURE Strategy models, process models, Social graph, etc. organization models, etc.
  7. 7. And therefore IT trends echo real-world trends Structural changes in our society, economy, technologies, and environment Economic and Socio- environmental Trends Technology Megatrends Structural changes in information architecture, design, and interfaces
  8. 8. IT megatrends create endless waves of hype cycles Peak of inflated expectations Technology Hype Cycles Technology Trough of Slope of Plateau of trigger disillusionment enlightenment productivity Technology Megatrends Structural changes in information architecture, design, and interfaces
  9. 9. Gartner’s hype cycle report 2009 of emerging technologies Source: Gartner Website
  10. 10. Innovative companies take off by riding disruptive trends Industry Trends: • Lean Production (JIT) • Integrated Operation • Globalization IT Trends: • Mainframe -> PC (computer miniaturization ) • Real-time Integration • GUI • Buy vs. Built SAP launched R/3 in US market, as a turning point 1989 1990 1991 1992 1993 1994 1995 1996 1997 Example: SAP’s Sales Revenue in United States in the 90’s Source: Book “Inside the Secrete Software Power” by Gerd Meissner
  11. 11. And then focus on optimization to cross their “chasms” Early Adopters Early Majority • Visionaries • Pragmatists • First to see value • Not able to take risk and make own decisions • Able to take risk and make • Want to buy from proven market leaders own decisions • Low tolerance of functionality and quality issues • Tolerate incomplete • Need “whole product” functionalities and quality issues • Press and analyst cover important The Chasm Source: Book “Crossing the Chasm” by Geoffrey A. Moore Innovators Early Adopters Early Majority Late Majority Laggards
  12. 12. Later they have to repeat this process to avoid being disrupted Disruptive Technologies Sustainable ndin g u se Innovation M ost dema High-end market disrupted lity use High qua ity use Med ium qual lity us e Low qua Source: Book “Innovator’s Dilemma” by Clayton M. Christensen
  13. 13. Why is this relevant to our UX profession?
  14. 14. 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”
  15. 15. Embrace trendsspotting into your design process Understand your business strategy as well 1 as the overall industry landscape Include both business trends and 2 technology trends into your research radar Source: SAP Design Guild Write a fictitious product marketing brochure, and 3 think about how you are going to sell your product, before you even have the design ready 4 Storytelling and rapid prototyping
  16. 16. chapter II: Industry Megatrends
  17. 17. 6 interconnected industry trends 2. Take every possible route  to the market ENVIRONMENT 6. Economy towards  3. Stand on everybody’s  ECO2nomy shoulder PRODUCTION CONSUMPTION INFORMATION INFRASTRUCTURE 1. The Intels, Walmarts, and in‐betweens 5. Towards a cloudy (and  4. Fly above  weightless) service economy commoditization
  18. 18. Megatrend #1: The Intels, Walmarts, and in-betweens
  19. 19. Vertical market towards horizontal market Innovation Intensity Process Innovation Product Innovation Time Pre-mature market Matured market • Products undefined • Products commoditized • Trial-and-error • Best practices identified “Dominant Design • No standards defined • Industry standards emerge Theory” • Product innovation pays off • Process innovation pays off • Vertical market • Horizontal market
  20. 20. This ends up with a highly distributed value chain PRODUCTION CONSUMPTION Platform Suppliers Niche Producers Retailers Consumers & Prosumers Supply goods, services, Produce verticalized Aggregate goods, Polarized into 2 segments technologies as shared value in the area of their provide choices and with different expectations resources, to reduce cost “centre of gravity”, convenience, and build and behaviors. Prosumers of reproduction, and levering infrastructure intimacy with are actively participating in therefore lowers barriers provided by platform consumers. Reduce the the value creation process, to entry players, as well as transaction cost for both and seek more market lever provided producers and individualization and self- by the distributors. consumers. services Concentration Proliferation Concentration Segmentation
  21. 21. 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.
  22. 22. Virtual insurer  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
  23. 23. 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.
  24. 24. Crowdsourcing for collective intelligence
  25. 25. crowdsourcing + individualization + engagement
  26. 26. Local Motors: crowdsourcing + individualization + engagement
  27. 27. Google Earth: upload GPS data
  28. 28. Opportunities for enterprise IT Business Needs: IT Trends:  Ability to collaborate with business  eSOA 2.0 partners with lower cost and in real-  Industry standards (e.g. ACORD for time insurance)  Ability to gain business transparency  Cloud computing and inter-tenant (market fluctuations, risks, etc.) across collaboration entire networked value chain  Supply chain optimization  Ability to predict and simulate for continuous business process  Distributed risk management optimization (e.g. BPO simulation and  RFID sourcing)  Self-services  Ability to combine collective  Convergence of consumer IT and intelligence with traditional business enterprise IT intelligence approach  Ability to open more capabilities to prosumers through self-services, and connected with the other business operations such as order fulfillment
  29. 29. Megatrend #2: Take every possible route to the market
  30. 30. Upstream players diversify their distribution channels PRODUCTION CONSUMPTION Route 1 Route 2 Route 3 Platform Suppliers Niche Producers Retailers Consumers & Prosumers  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
  31. 31. 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.
  32. 32. Routes to market in consumer goods industry One-tier Indirect Distribution Indirect Consumers Consumers Indirect Outlet/ Consumers Supermarket Multi-tier Distribution Web Aggregator/ TV Outlet Indirect Franchised Consumers Retailer Retailer Website /Vending Direct Machine/Mobile Manufacturer Wholesaler Distribution Factory White-Label Outlets Distribution Indirect Consumers Direct Consumers OEM Integrator Captive Sales /Telesales
  33. 33. Routes to market in insurance industry One-tier Indirect Distribution Indirect Consumers Consumers Indirect Independent Consumers Broker Multi-tier Distribution Web Aggregators Indirect Agency Consumers Retailer Website /Vending Direct Machine/Mobile Insurance Downstream Distribution Carrier insurer Branches White-Label /Offices Distribution Indirect Consumers Direct Consumers OEM Integrator Tied Agents/ Telesales
  34. 34. Requirements on product design: componentized, adaptable, and embeddable Direct B2B Consumption Interfaces Direct Consumption BEFORE AFTER 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
  35. 35. Translated into our familiar terms Different Contexts Direct Indirect Consumption Consumption Application User + Programming Interface Interface
  36. 36. Example: Sears API
  37. 37. Repurpose & Mashup
  38. 38. Example: Esurance’s online partner program
  39. 39. Example: AIU’s OEM model with • AIU China (Chartis) distribute travel and accident products on which is China’s largest online community for outdoor activities • Products are co-designed with, and tailored to special needs of this community • White-labeled with doyouhike’s branding
  40. 40. Opportunities for enterprise IT Business Needs: IT Trends:  Ability to roll out products to new  Product Lifecycle Management distribution channels quickly, and have integrated with business intelligence, them tailored to new market segment and collaboration  Ability to manage lots of product  Multi-channel distribution variances without making compromise management platform in transparency and governance  Business-driving configuration (e.g.  Ability to support diversified channels rules, pricing, etc.) with standardized and automated  Web-oriented Architecture (WOA) operations  Social CRM  Ability to streamline B2B collaboration to simplify the final consumption no matter how complicated the route could be
  41. 41. Design Examples
  42. 42. Some Agencies, Brokers, Call 3rd-party Web Sites Centers (Aggregators, White-label Partners) Some channel partners may prefer to use their own SalesPlatform web services can also be POS systems. In this case, system-to-system provided to 3rd party web aggregators such as integration will be much simplified by leveraging the moneysupermarket for premium computing. standardized and well-documented web services provided by the SalesPlatform. “eBaoTech SalesPlatform” Standardized 2 3 Standardized Web Services Web Services Direct Portal Embeddable Web Access 1 4 Components Agents, Agencies, Brokers, Call Insurer Website & Affiliate Centers Websites Agents, banks, car dealers, brokers, and call Embeddable web applications allow carriers to centers can easily connect to carrier’s easily inject E-commerce capabilities to their SalesPlatform directly through secure internet existing websites connection Widgets can also be easily plugged into affiliate websites to generate more “long tail” revenue
  43. 43. Actuary “Suite” Model 1. Analyze & Design Market Analyzer Common Sales & Marketing, Common Parties Legal / E.g. quotation Compliance Ideas Management calculation GS LS GL PA PA PA Structure Designer Cost & Profit Test E.g. surrender handling Sales & Marketing Compliance Test Product Lifecycle Mgt. Documentation Mgt. E.g. accumulator in claim Common Claim “Closed-loop” Platform & Collaborative PLM Actuary Data Warehouse E.g. performance analysis 3. Measure & Monitor 2. Model & Deploy Planning Structure Designer Product Performance Analyzer Lifecycle Designer Marketing Loss Analyzer Documentation Mgt. Portfolio Management Lifecycle Simulation Business Deployment & Rollout partners Product Financial Actuary Marketing
  44. 44. “White-label” model enabled by web services & re-brandable web components
  45. 45. “White-label” model enabled by web services & re-brandable web Facebook Plug-in to convert FB components Fans page into a shopping website,
  46. 46. Megatrend #3: Stand on everybody’s shoulder
  47. 47. Long live the middleman PRODUCTION CONSUMPTION Platform Suppliers Niche Producers Retailers 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
  48. 48. 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
  49. 49. Supermarkets Cross-industry mega- aggregators “store-in-stores” Banks Specialty Stores Vertical aggregators Enterprise IT Industry Publication Industry Financial Service Industry Convenience Stores Delivered with Widgets convenience framework
  50. 50. 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!
  51. 51. 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.
  52. 52. 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.
  53. 53. Best Buy’s store in Facebook
  54. 54. IKEA’s Augmented Reality application on iPhone
  55. 55. QR Codes in Japanese retail stores
  56. 56. Store preview on Google Map
  57. 57. Foursquare royalty programs
  58. 58. Social retailing - IconNicholson
  59. 59. Every node wants to be a super node PRODUCTION CONSUMPTION Platform Suppliers Niche Producers Retailers 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
  60. 60. Megatrend #4: Fly above commoditization
  61. 61. Experience innovation as a new dimension Innovation Intensity Experience Innovation Process Innovation Product Innovation Time Pre-mature market Matured market Saturated market • Products undefined • Products commoditized • Products commoditized • Trial-and-error • Best practices identified • Industry standards matured • No standards defined • Industry standards emerge • Diminishing return from process innovation • Product innovation pays off • Process innovation pays off • Experience innovation pays off • Vertical market • Horizontal market • Horizontal market/Vertical market
  62. 62. 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.
  63. 63. Opportunities for experience innovation in insurance value chain Sales & Order Post-Sales Supply Chain Manufacturing Distribution Product Fulfillment Design: Service Management Product Product Product Product Deep understanding and analysis of the Design Design Deployment Deployment Marketing: customer expectation and the market (e.g. pay-as-you-go insurance) Marketing Marketing Fulfillment: Creative marketing leveraging social media and App store (e.g. Sales Channel Management, Esurance, billing as a communication - Leverage Sales Channel Management GEIKO) channel Pre- Pre- Sales Sales Submi- Submi- Partner Management:methods such as - Embrace new payment UW UW sales sales Talk Talk ssion ssion Google Checkout, mobile payment, etc. - Customer Reviewing & Complaint Billing & Printing & Management Billing & Printing & Collection Collection Mailing Mailing Endorse- Endorse- Under- Under- Sales: ment ment writing writing -Self-service & UsabilityService & Claim: Claim Claim Claim Claim Claim Claim - Illustration of benefits Regis. Regis. Handling Handling Settlement Settlement - STP and Real-time Issuance - Channel Education - Customer-centric View - Self-service & Usability Risk Ceding (RI) Risk Ceding (RI) - Multi-channel Collaboration - Operational Efficiency Partner Partner Partner Partner - Differentiated Service (e.g. Esurance’s online Sourcing Sourcing Payment Payment repair monitor) Business Monitoring & Optimization Business Monitoring & Optimization Financial Assets Management Financial Assets Management
  64. 64. Creative Marketing by
  65. 65. Social media presence and referral
  66. 66. Zipcar’s iPhone application for car finding and unlocking
  67. 67. Opportunities for enterprise IT Business Needs: IT Trends:  Ability to proactively manage their social  Social Business Applications (e.g. social presence (as well as business partners), CRM) analyze consumer sentiments, and make  Mobile computing, Augmented Reality, quick reaction etc.  Providing additional tools for consumers, to  Innovation platform (in opposition to gain more touch points packaged “best practice” solutions)  Ability to innovate quickly without having to wait for any “best practices”
  68. 68. Case Study: eBaoTech Insurance Showroom
  69. 69. eBaoTech mobile-enabled auto claim Phone call 1 2 Mobile submission First Notice of Loss by insured submission Claim Registration - Mobile-based car accident wizard - Or phone call If inspection needed? 3 Submission & receive claim decision General Claim Back-end Assignment by Dispatch Operator 5 - GIS-enabled task assignment - Or even completely automated 4 Inspection Report by Inspector - Mobile-based entry - Portable printer Inspector receives task - Mobile-enabled task management
  70. 70. Self-service, intelligent dispatch, on-site settlement CONFIDENT Consumer Mobile App for Claim, Query, Renewal, and non-insurance service Report Accident Roadside Services My CONFIDENT Policy Car Tips Inspector data entry and print A B Intelligent assignment enabled by GIS
  71. 71. Megatrend #5: Towards a cloudy service economy
  72. 72. Services as vehicles for value transferring PRODUCTION CONSUMPTION services services services 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.
  73. 73. Service sector is driving the world economy Source: IMF, World Economic Outlook Source: CLSA, Money Morning Research
  74. 74. 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.
  75. 75. 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 • Utility-based or even performance-based • Standard pricing pricing • Big upfront investment and risk • Long-term partnership • CapEx • OpEx • Easier to standardize and reduce operational cost • Depends whether it’s high-tough service or low- on vendor side touch service
  76. 76. Case study: jet engine manufacturers' “power by hour” model Before:  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 After:  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
  77. 77. IBM and GE transformed from hardware to service providers
  78. 78. Zipcar provides shared-ownership model Benefits:  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
  79. 79. Pay-as-you-drive insurance: servitization of financial service Benefits:  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.
  80. 80. Servitization in the entire software stack SaaS PaaS IaaS
  81. 81. Opportunities for enterprise IT Business Needs: IT Trends:  Ability to digitalize the traditional business  “Internet of Things” services and therefore can provide them in a  Industry standards such as Unified Service more scalable and resource-efficient way Description Language (USDL) for semantic integration  A service marketplace where services can be explored, traded, repurposed, and  eSOA 2.0 composited  “Internet of Services” platform  Convergence of enterprise IT and  Ability to integrate external services into the consumer IT internal business processes seamlessly
  82. 82. SAP’s “Internet of Services” vision Source: SAP Public Website
  83. 83. SAP’s “Internet of Services” vision Source: SAP Public Website
  84. 84. Megatrend #6: Economy towards ECO 2 nomy
  85. 85. Shift towards a sustainable value chain ENVIRONMENT ENVIRONMENT PRODUCTION CONSUMPTION Sustainable value chain  “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
  86. 86. 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
  87. 87. 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
  88. 88. 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)
  89. 89. Sustainable consumption: Google PowerMeter Source: Google Public Website
  90. 90. Sustainable consumption: Google PowerMeter
  91. 91. SAP’s sustainability reporting Source: SAP Public Website
  92. 92. Sustainable consumption: green insurance Source:
  93. 93. GE’s ecomagination program Source:
  94. 94. Betterplace as new-practice platform
  95. 95. Opportunities for enterprise IT Business Needs: Business Needs:  Manage environmental compliance and risks  Sustainability performance management in different regions (EPIs, benchmarking, compliance, reporting)  Ability to do environmental metering  Energy management through easier data collection and analysis  Emergency Management  Environmental accounting to include carbon  Environment accounting leveraging the footprint across the value chain ABC methodology  Ability to intelligently manage their  Ethic sourcing, with environmental rating of production and transportation to reduce the suppliers as well as green indexing of consumption of energy and resources materials  “Internet of things” together with business intelligence for automatic data collection and analysis  Embedded “carbon and trade” in financial controlling
  97. 97. Photo credits Streat Sign Market Streat Platnet Bird Empty office Walmart Intel Gloves Chain Size jet engine