The role of ICT in delivering a low carbon economy.
The role of ICT in delivering a low carbon economy. Andrew Mitchell 26th September, 2012 Mackay Hannah Public Policy Conference
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
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
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.
The BT transformation story: “Knowledge Management & ICT” 27th November 2001 Deming Learning Network Meeting Aberdeen
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?
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
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
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?
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 *
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)
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
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
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
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)
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!!
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
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
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.
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).
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.
Thank you! Andrew MitchellBusiness ManagerEdinburgh Centre for Carbon Innovation15 South College Street, Edinburgh, EH8 9AAEmail: firstname.lastname@example.orgWeb: www.edinburghcentre.orgTwitter: @EdCentreCC