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Developing an Sustainable IT Capability: Lessons From Intel's Journey

Intel Corporation set itself a goal to reduce its global-warming greenhouse gas footprint by 20% by 2012 from 2007 levels. Through the use of sustainable IT, the Intel IT organization is recognized as a significant contributor to the company’s sustainability strategy by transforming its IT operations and overall Intel operations. This article describes how Intel has achieved IT sustainability benefits thus far by developing four key capabilities. These capabilities have been incorporated into the Sustainable ICT Capability Maturity Framework (SICT-CMF), a model developed by an industry consortium in which the authors were key participants. The article ends with lessons learned from Intel’s experiences that can be applied by business and IT executives in other enterprises.

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Developing an Sustainable IT Capability: Lessons From Intel's Journey

  1. 1. 1 Developing  an  Sustainable  IT  Capability:  Lessons   From  Intel's  Journey   Edward  Curry    Digital  Enterprise  Research  Ins7tute  (DERI)   Bill  Guyon      Intel  Coropora7on   Charles  Sheridan    Intel  Labs  Europe   Brian  Donnellan    Innova7on  Value  Ins7tute  (IVI)      
  2. 2. Curry,  E.,  Guyon,  B.,  Sheridan,  C.,  and  Donnellan,  B.  2012.  “Developing  an  Sustainable  IT   Capability:  Lessons  From  Intel’s  Journey,”  MIS  Quarterly  Execu7ve  (11:2),  pp.  61–74.  
  3. 3. 3     The  Environment  is  on  Everyone’s  Agenda  
  4. 4. 4     ICT’s  Mass  ProducGon  Carbon  Cost   2%   ICT  Accounts  for   Approximately...   …of  Global  CO2  Emissions.   Source  Gartner  
  5. 5. McKinsey  2020  Report   ICTs  could  deliver  approximately  7.8  GtCO2  of  emissions  savings  in  2020,  represen7ng  a   15%  of  emissions  cut  in  2020  and  600  billion  ($946.5  billion)  of  cost  savings.  ICT  can   provide  business  solu7ons  that  can  alleviate  at  least  five  7mes  the  GHG  footprint  of  ICT   itself  
  6. 6. •  Align  all  IT  processes  and   prac7ces  with  the  core   principles  of  sustainability,   which  are  to  reduce,  reuse,   and  recycle;  and   •  Find  innova7ve  ways  to  use   IT  in  business  processes  to   deliver  sustainability   benefits  across  the   enterprise  and  beyond.  6     2%   Reduce IT Improve Efficiency Sustainable  IT   98%  
  7. 7. Sustainability  1.0  Case  Study    
  8. 8. Intel  IT  Vital  Stats  2012   100,100  Intel  employees   150  sites,  62  countries     6,400  IT  employees   56  global  sites     87  Data  Centers   ~75,000  servers;     458,694  square  feet     >110,000  Devices   >90K  PCs  (80%+  mobile),   >20,000  Handhelds  
  9. 9. Sustainability  @    
  10. 10. Sustainability  @  Intel   At  the  start  of  2008,  Intel   CEO  Paul  Otellini  set  out   an  ambi7ous  five-­‐year   goal  to  reduce   environmental  impacts  in   key  areas,  including   energy  and  water,  with  a   20%  reduc7on  in   emissions  on  2007  levels   by  2012   Intel  CEO  Paul  Otellini    
  11. 11. IT  Sustainability  @  Intel   CIO  saw  opportunity  for   Intel  IT  to  play  a  key  role  in   enabling  the  company  to   achieve  its  corporate   sustainability  goals     Commiged  Intel  IT  to   helping  the  business  deliver   its  objec7ves  through  use  of   sustainable  IT   Intel’s  CIO,  Diane  Bryant  
  12. 12. Developing  an  IT  Sustainability   Capability   •  Aligning  IT  and  Corporate  Goals   •  3  Phase  Sustainable  IT  Roadmap   •  Understanding  The  IT  Footprint   •  Iden7fying  High-­‐Impact  Opportuni7es   •  Develop  a  Sustainable  Culture   •  Use  Employee  Incen7ve  Programs  to  Drive   Innova7on   •  Build  the  Business  Case  for  Sustainability  
  13. 13. Employee Bonus Employee-led Activities Small Office IT Footprint LED Light Fixtures Telepresence Rooms Solar Panels “LEED Gold” building design High efficiency Data Centers Energy Management Software Sustainable IT @ Intel IT Reduced Business Travel
  14. 14. Understanding  the  IT  Footprint  
  15. 15. Understanding  the  IT  Footprint  
  16. 16. Data  Centres:  An  Inefficient  Truth   *  Source:  EPA  Report  to  Congress  on  Server  and  Data  Center  Energy  Efficiency,  August  2007   32%   Processor     Drives5% Peripheral Slots 20% PSU 15%45%   IT  Load   55%   Power,  Cooling   &  LighGng   Data  Center   Server   Processor   100  Wa]s   Supplied   14  Wa]s  supplied   to  CPU   11.2  Wa]s  used  for   computaGon   45  Wa]s  supplied   to  IT  equipment   Up  to  88.8%  of  the  power  consumed  by  a   data  centre  is  used  before  computa8on   17     80%   UGlised   20% Idle
  17. 17. Server  Refresh   •  Moore’s  Law:  Doubling  of  chip  performance   every  18  months   •  Energy  consumed  by  the  chip  does  not  double   •  Moore’s  Law  drives  con7nuous  chip-­‐level  energy   efficiency    
  18. 18. Telepresence  and  Video  Conferencing   •  435,000  employee  travel  hours   •  $73  million  in  travel  expenses   •  65,000  metric  tons  of  CO2  emissions  
  19. 19. Increasing  IT  Performance  2009-­‐2011  
  20. 20. Intel’s  Overall  Corporate  Sustainability  Performance  2007-­‐2010   and  Intel  IT’s  Sustainability  Performance  2009-­‐2011        
  21. 21. Trends  in  Intel  IT’s  Sustainability       (Source  Intel  IT  Annual  Performance  Report,  2011-­‐2012)      
  22. 22. Impacts  of  Sustainable  IT  @  Intel   •  Total  cost  savings  of  over  $114  million   •  Avoidance  of  more  than  87,500  metric  tons  of   CO2  emissions   •  Intel  was  named  to  Computerworld’s  2010   and  2011  lists  of  “Top  Green-­‐IT  Organiza7ons”  
  23. 23. 24 Sustainable ICT Capability Maturity Model Category Capability Building Block Description Strategy & Planning Alignment Definition and execution of ICT sustainability strategy to influence and align to business sustainability objectives Objectives Definition and agreement of sustainability objectives for ICT Process Management Operations & Life Cycle Sourcing, operation and disposal of ICT systems to deliver sustainability objectives ICT-Enabled Business Processes Provision of ICT systems that enable improved sustainability outcomes across the extended enterprise. Performance & Reporting Reporting and demonstration of progress against ICT specific and ICT enabled sustainability objectives, within the ICT business and across the extended enterprise. People & Culture Language Definition, communication and use of common sustainability language and vocabulary across ICT and other business units including the extended enterprise, to leverage a common understanding Adoption Embedding of sustainability principles across ICT and the extended enterprise. Evangelising of sustainability successes and contributing to industry best practice Governance External Compliance Enablement and demonstration of compliance with both ICT and Business sustainability legislation and regulation . Clear accountability for sustainability roles and decision making across ICT and the enterprise Corporate Policies Establishment of common and consistent policies to support an ICT sustainability strategy to meet current and future sustainability objectives, as part of periodic review.
  24. 24. Maturity  Levels   Ad  hoc     Basic   Intermediate   Advanced   Op7mised   No  SICT  roles  &     Responsibili7es,     Ad  hoc,  project-­‐based   Formal  technology  roles     within  projects,     Key  stakeholders  iden7fied     and  informed   Regular  consulta7on     with  business,     Formalised  roles  and     responsibili7es   Pro-­‐ac7ve  communica7on   and  feedback  with  business;   Clear  professional     career  track   Collabora7on  with     extended  enterprise;     Pro-­‐ac7ve  development     with  external  input  
  25. 25. High Level IT Posture Within the Organization Optimizing Initial Advanced Basic Intermediate  Sustainability  and  IT’s  Overall  Posture   Continuous, sustained IT efficiencies Predictable incremental cost savings Cost savings driven by tech upgrades Defined objectives, accountable individuals Cost Center Continuous sustainable service improvement Limited sustainability in service areas Regular, predictable service enhancements Defined process to meet business sustainability needs Service Center Aligned to business strategy, embedded in portfolio Unmanaged, unfunded, undefined value Individual efforts, limited recognition of sustainability Investment Center Limited opportunities Occasional product sustainability improvements Cross-functional capabilities to identify new sustainability opportunities Value Center Undefined cost savings, limited Occasional service- level sustainability efficiency Driven by IT strategy, projects return predictable sustainability impacts Defined governance, new IT deployed with defined sustainability output Sustainability opportunities drive business revenue Emerging strategy, repeatable impact to the business Maturity
  26. 26. Key  Lessons   •  Sustainable  IT  is  different  to  Green  IT     •  Align  Business  and  IT  Sustainability  Objec7ves     •  Build  the  Business  Case  for  Sustainability     •  Use  Incen7ves  to  Drive  Change  Across  the   Organiza7on    
  27. 27. Further  Reading  Material     •  Curry,  E.,  Guyon,  B.,  Sheridan,  C.,  and  Donnellan,  B.  2012.  “Developing  an   Sustainable  IT  Capability:  Lessons  From  Intel’s  Journey,”  MIS  Quarterly   Execu7ve  (11:2),  pp.  61–74.   –  hgp://   •  Donnellan,  B.,  Sheridan,  C.,  and  Curry,  E.  2011.  “A  Capability  Maturity   Framework  for  Sustainable  InformaGon  and  CommunicaGon   Technology,”  IEEE  IT  Professional  (13:1),  pp.  33–40.   –  hgp://     •  Curry,  E.,  Guyon,  B.,  Sheridan,  C.,  and  Donnellan,  B.  2012.  “Sustainable  IT:   Challenges,  Postures,  and  Outcomes,”  IEEE  Computer  (45:11),  pp.  79–81.   –  hgp://  
  28. 28. Teaching  Case   •  Curry,  E.,  and  Donnellan,  B.  2012.  “Sustainable  IT  at  Intel:  A   Teaching  Case,”  In  Interna7onal  Conference  on  Informa7on   Systems  2012   –  hgp://   •  Courses  and  Level   –  Suitable  for  use  in  upper-­‐division  business  undergraduate,  graduate,   or  execu7ve  MBA  educa7on  course  in  IT  sustainability,  IT  strategy,  or   IT  management   •  Teaching  Objec7ves:   –  To  provide  conceptual  underpinnings  of  Sustainable  compu7ng   –  To  trace  the  evolu7on  of  the  Sustainable  IT  strategy  at  Intel   –  To  evaluate  the  Sustainable  IT  strategy  as  deployed  by  Intel   –  To  iden7fy  possible  improvements   –  To  iden7fy  next  steps  and  define  associated  business  case