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The role of ICT in delivering a low carbon economy.

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Presentation on The role of ICT in delivering a low carbon economy, at a Mackay Hannah Conference, Edinburgh, 26th September 2012.

Presentation on The role of ICT in delivering a low carbon economy, at a Mackay Hannah Conference, Edinburgh, 26th September 2012.

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  • 1. The  role  of  ICT  in  delivering  a  low  carbon  economy.    Andrew  Mitchell  26th  September,  2012  Mackay  Hannah  Public  Policy  Conference  
  • 2. 1.  Low  Carbon  Hub  (High  School  Yards)  2.  Business  InnovaBon  ERDF  project  3.  Policy  (ClimateXChange)  Scotland’s  centre  of  experLse  connecLng  climate  change  research  and  policy.  CollaboraLon  between  16  research  and  higher  educaLon  insLtuLons  across  Scotland.  4.  ExecuBve  EducaBon  and  Skills  Investment  and  Entrepreneurship  workshops.  China,  India.  AssociaLon  of  Carbon  Professionals  
  • 3. Climate  Science  is  Clear     Climate  change  is  not  new,  but  it   did  wipe  out  life!     1.  There  are  natural  accumulaLons  and  releases  of   fossil  carbon,  as  deposits  of  coal,  gas  and  oil  are   created  and  destroyed  over  hundreds  of  millions  of   years.  Big  dump  55  million  years  ago.     2.  The  notable  increase  in  carbon  dioxide  in  Earth’s   atmosphere  since  the  Industrial  RevoluLon  has  been     caused  by  Homo  Sapiens,  mainly  by  our  sLll  growing     use  of  coal,  gas  and  oil.       3.  Earth’s  climate  has  changed  greatly  in  the  past,   oTen  rapidly,  long  before  we  were  around  to  light  so   much  as  a  camp  fire.  So  ‘stability  is  not  an   opLon’  (David  Jenkins,  formerly  of  BP  and  Director  of   BHP  Billiton).     4.  You  can’t  argue  with  rocks.   ISBN-­‐10:  0521145597  
  • 4. Scenario  One   Scenario  Two        
  • 5. Let’s  get  on  with  scenario  two…  •  Entrepreneurs  and  corporate  innovators  will  drive  change.  •  Drivers:  wealth  creaLon  and  cost  savings.  •  The  BT  transformaLon  story  as  an  example  of  unintended  carbon  savings.  •  ICT  industry  carbon  footprint  is  big(ish)  2-­‐3  percent  of  global  emissions.  •  The  BIG  prize  is  ICT  as  an  enabler  of  efficiency  in  every  walk  of  life.  
  • 6.      
  • 7. The BT transformation story: “Knowledge Management & ICT” 27th November 2001 Deming Learning Network Meeting Aberdeen
  • 8. Agenda§  Some facts about BT Group plc.§  About my team - stepchange.gov§  The only constant is change (no more clichés, I promise)§  A selfish view of knowledge management in BT§  Disruptive Innovation - does size count?
  • 9. BT Group facts§  BT Group plc.: §  British Telecommunication plc. §  BT Ignite – international networks & solutions §  BT Retail – residential & business relationships & channel to market in UK §  BTopenworld – mass market internet §  BT Wholesale – runs the BT Group networks, sells network capacity. §  BT Affinitis – business & computing services §  BTexaCT Technologies – research, development & consulting business§  137,000 employees (03/2001)§  Procurement: £5bn, 17m transactions§  £20.5 billion turnover (fy 2000/2001)§  mmO2 plc. – new mobile company§  Global & diverse operations
  • 10. BT stepchange.gov§  Part of BT Retail§  92 people§  Innovating to transform public services§  We break rules & generally cause trouble (constructively)§  We generate business opportunity & develop new markets: §  www.ukonline.gov.uk (first phases, now with new supplier) §  www.businesslink.org (Small Business Service) §  Public Sector Change Research (with Lancaster university) §  International Centre for eGovernance (SCF, ITC & CEG) §  Public Policy Forum & innovation thought leadership §  Greater London Authority advisory §  Mobility §  Location Based Services §  eProcurement §  eDemocracy
  • 11. Constant change Employees in BT BT Group Turnover (£m) 300,000 35,000 250,000 30,000 25,000No. of Employees 200,000 20,000 £m 150,000 15,000 100,000 10,000 5,000 50,000 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Year Year This is, in fact, a graphical representation of knowledge management. How did we do it?
  • 12. Change fatigueActivity-Based Costing * Adaptive Organization * AmbidextrousOrganizations * Benchmarking * Business Process Reengineering *Commitment-Based Management * Competitive Capabilities *Continuous Process Improvement * Core Competencies * CustomerFocus * Customer Loyalty * Cycle of Failure * Database Marketing *Disruptive Technology * Employee Empowerment * Five ForcesAnalysis * Flexible Manufacturing Systems * Holistic Management *Horizontal Integration * Just-in-time * Learning Organization * MassCustomization * Neural Networks * Quality Value Engineering *Organizational Delayering * Paradigm Shift * Performance-BasedCompensation * Process Value Analysis * Radical Re-structuring *Reengineering * Customer Relationship Management * Rightsizing *Service Profit Chain * Strategic Benchmarking * Team BasedManagement * Time-based Competition * Total EmployeeInvolvement * Total Quality Management * Economic Value Added *Value Chain * Virtual Corporation * Zero-based Budgeting * ZeroDefections *
  • 13. BT intranet beginnings§  BT’s business case forecast average £57.5m/yr§  The actual was £305m benefits for 1995/6§  Since early 1995 there have been billions of savings§  But… much improved customer satisfaction§  And… European Quality Award§  And… Completely different ways of doing business§  And… Organisational Learning§  And… Flexible working§  And… The “nervous system”§  And… Understanding (benefits)
  • 14. Our corporate nervous system KM principles: Right time, Culture, policy right place, no matter who you are and values.right information. or where you are, you can easily access the people, information and services you need to do your jobHuman design &Business benefits
  • 15. A selfish view of KM in BT§  Really a personal view of KM in BT§  ICT (IP) enabled knowledge management§  BT.com§  Intranet Home§  BT Today§  Teamconnect Directory§  eGatekeeper§  Intellact
  • 16. BT.com KM inside & out §  www.bt.com §  1.3m registered users, doubled in 6 months §  15,000 logins/day §  the “killer apps” §  e-Billing (83k per day) §  Friends & Family §  directory enquiries §  increasingly personalised
  • 17. Disruptive Innovation Applying new or novel technologies through new or novel ways of organisation.“enable a larger population of less skilled or less wealthy individuals to do things once reserved for specialists.” (Prof’ Clayton Christensen HBS)
  • 18. Disruptive Innovation§  Usually very simple technology§  Usually cheaper§  Usually of lower performance/functionality§  Is almost always disregarded by mainstream§  It challenges existing wisdom & models§  It creates, enlarges or makes more accessible markets§  It makes what BT’s done cheap & easy!!
  • 19. Summary§  BT is big and complex§  KM was and is at the heart of transformation§  We started small§  Growth brought some chaos§  We have a long way to go§  Pull not push§  But are recognised globally for what’s been done§  Disruption means size doesn’t matter
  • 20. Thank youAndrew MitchellChief Innovation OfficerBT stepchange.govandrew.5.mitchell@bt.com020 7778 4080
  • 21. The  role  of  ICT  in  delivering     a  low  carbon  economy.  1.  InformaLcs  &  Computer  Science  as  an  interdisciplinary  approach  to  understanding  climate   change.  InformaLon  &  CommunicaLon  products  and  services  as  enabling  technologies  in  the   transiLon  to  a  low  carbon  economy.  Reducing  the  carbon  footprint  of  the  ICT  industry  itself   (about  3%  of  global  emissions,  but  growing  rapidly).  2.  Reducing  the  carbon  footprint  of  ICT’s  used  by  consumers  and  organisaLons.  3.  ICT  as  enabling  technology  for  “dematerialisaLon”  and  “arLficial  intelligence*”  of:   –  Land  Use,  Waste  and  Water,  Renewable  Energy,  Built  Environment  &  Sustainable  Transport,  Carbon   AccounLng  &  Finance,  OrganisaLon  and  OperaLons  Management.   *  ArLficial  Intelligence  (i.e.  what  we  mean  by  “smart”  grid  /  ciLes  /  buildings  /  logisLcs  Sub  themes:   –  Green  ICT  for  CiBes  &  Built  Environment   –  Green  ICT  for  People   –  Green  ICT  for  OrganisaBons  
  • 22. The  role  of  ICT  in  delivering     a  low  carbon  economy.   ScoSsh  InformaBcs  &  Computer  Science  Alliance   hlp://www.sicsa.ac.uk/themes    •  Next  GeneraLon  Internet  •  MulL-­‐modal  InteracLon  •  Modelling  and  AbstracLon  •  Complex  Systems  Engineering    SICSA  as  an  interdisciplinary  group  also  brings  deep  relaLonships  with  sociologists,  economists,  designers,  other  physical  sciences  and  biotech.  
  • 23. SICSA  potenLal  applicaLons  in  renewables:    Next  GeneraBon  Internet    Smart  Grids,  connecLng  and  opLmising  all  renewable  sources.  The  network  layer  between  power  distribuLon  and  the  Smart  City  /  Built  Environment.    LogisLcs  and  supply  chain  (enabling  technology).    Modelling  and  AbstracBon,  MulBmodal  InteracBon  SimulaLon  and  surveying.  ForecasLng  wind,  wave  and  Ldal  capacity.  Modelling  and  analysing  renewable  device  performance,  dynamics,  structural  load  and  faLgue.    Complex  Systems  Engineering  Scotland’s  new  power  grid  is  one  large-­‐scale  complex  system  made  up  of  numerous  complex  sub-­‐systems.  For  example  a  single  wind  farm  or  a  fuel-­‐cell  device  are  complex  systems  themselves.  LogisLcs  and  supply  chain  (management  science,  socio-­‐technical).  
  • 24. Employees in BT Scenario  One   Scenario  Two   300,000 250,000 No. of Employees 200,000 150,000 100,000 50,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Year BT Group Turnover (£m) 35,000 30,000 25,000 20,000 £m 15,000   10,000   5,000   BT  transformaBon  story:   0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001   Year 1.  Doing  more  with  less.   2.  ICT  enabled  dramaLc  change.   3.  Does  not  mean  mass  unemployment!   4.  In  1992  the  driver  was  corporate  survival  (not  emissions!).   5.  In  2012  the  same  can  apply  to  reducing  carbon  emissions.    
  • 25. Thank  you!  Andrew MitchellBusiness ManagerEdinburgh Centre for Carbon Innovation15 South College Street, Edinburgh, EH8 9AAEmail: andrew.mitchell@edinburghcentre.orgWeb: www.edinburghcentre.orgTwitter: @EdCentreCC