Green Business Vision
for
Future-ready Manufacturing
Achal RaghavanAchal Raghavan
Strategy & Business Excellence Consultan...
Contents
• Why “green business vision”
• Green business strategy : The essence
• Sustainability portfolio• Sustainability ...
References
• HBR on Green Business Strategy
HBS Press
• HBR on Business and the Environment
HBS PressHBS Press
3
Why green business vision
• Manage risks & opportunities associated with
– Shifts in the weather
– Potential regulatory ch...
Business risks
• Regulatory
• Supply chain
• Product and technology
5
• Litigation
• Reputation
• Physical
Business opportunities
• New markets
• Emerging needs of customers
– Energy management
– Smart SCM– Smart SCM
– Sustainabl...
Green business strategy:
The essence
7
Sustainable mfg.
Waste elimination
Energy efficiency
Lowest cost
INTERNAL
Green business strategy:
The essence
Market preference
EXTERNAL
Challenges
•Value exists?
•Customer understands?
•Willing ...
Green business strategy:
The essence
Market preference
Sustainable
Profitable
Ethical
Growth
EXTERNAL
9
Sustainable mfg.
W...
The “sustainability portfolio”*:
Strategy consistent with sustainability
Pollution = Waste
Prevention = Elimination
Zero w...
The “sustainability portfolio”:
Strategy consistent with sustainability
“Closed Loop” / Total responsibility
•Raw material...
The “sustainability portfolio”:
Strategy consistent with sustainability
Tomorrow Clean
technology
EB = PAT*
e.g. Alt. fuel...
The “sustainability portfolio”:
Strategy consistent with sustainability
Tomorrow Clean
technology
Sustainability
vision
“G...
Investing in “green”: Criteria
• Differentiating products
• Managing competitors
• Saving costs
It’s a
business
decision
1...
Future-ready manufacturing
OLD WAY
“Compliance”
“Cost”
NEW WAY
DFE
EPM
FUTURE-READY
Green
Ethical
15
“Cost”
“Efficiency”
E...
Thank you!
16
Achal Raghavan
Achal Raghavan is a strategy and business excellence consultant based at Bangalore. He provides consulting,...
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Green Business Vision for Future-ready Manufacturing

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Presentation made by the author at a CII seminar at Bangalore, India on September 20, 2013. Outlines why manufacturing companies need to develop a "green business vision" and a strategy to get "future-ready". Spells out the steps involved in developing a green strategy.

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Green Business Vision for Future-ready Manufacturing

  1. 1. Green Business Vision for Future-ready Manufacturing Achal RaghavanAchal Raghavan Strategy & Business Excellence Consultant Visiting / Adjunct Faculty - IIMs 1
  2. 2. Contents • Why “green business vision” • Green business strategy : The essence • Sustainability portfolio• Sustainability portfolio • Investing in green • Future-ready manufacturing 2
  3. 3. References • HBR on Green Business Strategy HBS Press • HBR on Business and the Environment HBS PressHBS Press 3
  4. 4. Why green business vision • Manage risks & opportunities associated with – Shifts in the weather – Potential regulatory changes – Battle over public opinion • Be future-ready 4 • Be future-ready – Ahead of competition, ahead of legislation • Impact already being felt – Airline industry, automotive, white goods, travel, pharma, FMCG…
  5. 5. Business risks • Regulatory • Supply chain • Product and technology 5 • Litigation • Reputation • Physical
  6. 6. Business opportunities • New markets • Emerging needs of customers – Energy management – Smart SCM– Smart SCM – Sustainable / smart manufacturing – Clean tech – Product stewardship – Etc. 6
  7. 7. Green business strategy: The essence 7 Sustainable mfg. Waste elimination Energy efficiency Lowest cost INTERNAL
  8. 8. Green business strategy: The essence Market preference EXTERNAL Challenges •Value exists? •Customer understands? •Willing to pay? 8 Sustainable mfg. Waste elimination Energy efficiency Lowest cost Market preference Premium price PositioningINTERNAL
  9. 9. Green business strategy: The essence Market preference Sustainable Profitable Ethical Growth EXTERNAL 9 Sustainable mfg. Waste elimination Energy efficiency Lowest cost Market preference Premium PositioningINTERNAL
  10. 10. The “sustainability portfolio”*: Strategy consistent with sustainability Pollution = Waste Prevention = Elimination Zero waste Smart energy management Co-location Etc. 10 Internal Today Pollution prevention Etc. *Stuart L. Hart
  11. 11. The “sustainability portfolio”: Strategy consistent with sustainability “Closed Loop” / Total responsibility •Raw material = Reusable asset & not expense (e.g. Trade-ins, upgrades) •Design For Environment (DFE) (e.g. “Nike Considered”) •Env. Preferred Material (EPM) (e.g. “No VOC”) •Smart SCM (least carbon footprint) 11 Internal External Today Pollution prevention Product stewardship
  12. 12. The “sustainability portfolio”: Strategy consistent with sustainability Tomorrow Clean technology EB = PAT* e.g. Alt. fuels Green mfg. processes Carbon footprint reduction 12 Internal Today Pollution prevention *Ehrlich & Commoner External Product stewardship
  13. 13. The “sustainability portfolio”: Strategy consistent with sustainability Tomorrow Clean technology Sustainability vision “Guiding Light” Needed: “Balance” 13 Internal External Today Pollution prevention Product stewardship Needed: “Balance”
  14. 14. Investing in “green”: Criteria • Differentiating products • Managing competitors • Saving costs It’s a business decision 14 • Saving costs • Managing environmental risk • Redefining markets
  15. 15. Future-ready manufacturing OLD WAY “Compliance” “Cost” NEW WAY DFE EPM FUTURE-READY Green Ethical 15 “Cost” “Efficiency” EPM Closed Loop Product stewardship Energy management Clean tech Innovation Etc. Ethical Competitive Profitable
  16. 16. Thank you! 16
  17. 17. Achal Raghavan Achal Raghavan is a strategy and business excellence consultant based at Bangalore. He provides consulting, mentoring and executive education services in the areas of strategy, business excellence and ethics. Raghavan also teaches as adjunct faculty at Indian Institute of Management, Bangalore (IIMB), and as visiting faculty at Indian Institute of Management, Indore (IIMI) and Indian Institute of Management, Ahmedabad (IIMA). At IIMB and IIMI, he teaches “Green Business Management” – a unique course in the strategy area that deals with the challenges and opportunities managers face when dealing with climate change and sustainability. Additionally, at IIMB and IIMA, 17 he teaches “Ethics in Business Management”. Raghavan is a member of the faculty team for executive training programmes conducted by IIMB for various global and local corporations. Raghavan brings with him over three decades of work experience in the automotive and engineering industries. In this period, he has held Board-level positions for over 10 years, in companies such as Delphi Automotive Systems, India, Ingersoll-Rand (India) and Cramlington Precision Forge, UK. He has traveled to 30 countries on business. Raghavan acquired his bachelor’s degree in mechanical engineering from the Indian Institute of Technology, Madras (IITM) in 1973, and a PGDM (MBA) from IIMA in 1977. He can be contacted at achalraghavan@yahoo.co.in.

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