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Financial and
Corporate Aspects
with Recycling .. ICT




     By Ahmed Buhazza
What is your approach for electronic/ICT
dispatching?               • ICT Service Life
                              • Wider risk
                              • Value out of disposal
ICT Service Life…
ICT procured equipments


   Electronic Spendings in Bahrain
                (2009)

             AV devices      Computer
                37%          hardware
                               48%



                                                  Notebook account
                                                  for about 60% of
                                                  Computer Sales
   Mobile handset
        15%



Source: Bahrain Consumer Electronics Report Q1 2011 -                Source: National Audit Office survey and analysis – UK
      Business Monitor International (December 2010)                 2005-06 (million of Units)
http://www.reportlinker.com/p0169782/Bahrain-Consumer-
      Electronics-Report-Q1.html
The average age of ICT
                 equipment at disposal




Source: National Audit Office survey and analysis – UK 2005-06 (million of Units)
ICT Age Factors
  Brand, Equipment Quality &
         Configuration

   Supplier Support and Spare
        parts availability

        Warranty Period

   Software/System update,
    version Requirements

   User & Business Demands


  Usage, Carefulness, Damages
Asset Lifecycle




Source: Phillip J. Windley (2002)
Benefits of Asset Management System
                     & Refresh Period
•   Inventory Control
•   Total Cost of Ownership
•   Software License Compliance
•   Operational Monitoring and
    Control
•   Decision Making about IT
    Resource Deployment
•   Zero-day Employee Provisioning
•   Standardization and Compliance
•   More Informed Purchasing
•   Business Resumption
                      Reducing operating costs (10%-40% cost
                      savings of operating cost)

                                Source: National Audit Office survey and analysis – UK 2007
Minimize Total Cost of Ownership
•Dispose before end of life
•End of Warranty
•Buy-Back before End of Life




                                   IT is a Business Decision
Wider Risk…in Disposal
IC T equipment life-cycle
 Procurement  Disposal




          Source: National Audit Office survey and analysis – UK 2007
Final Destination!
• Landfill: The burial of waste in regulated disposal facilities.
Waste Refuse




ZeroWaste SA’s waste management hierarchy
        www.zerowaste.sa.gov.au
Disposal options
      IT conforms to the European Directive on
      Waste Electrical and Electronic Equipment
      (WEEE) to dispose of its IT equipment.




      Source: National Audit Office survey and analysis – UK 2007
Refining Methods
• Clear
   – use software or hardware products to
     overwrite storage space on the media with
     non-sensitive data.

• Purge
   – Degaussing is exposing the magnetic media
     to a strong magnetic field in order to
     disrupt the recorded magnetic domains.

• Destroy
   – Disintegration, Pulverization, Melting, and
     Incineration
   – Shredding.
Legislation

•Environmental Protection
     •The Environmental Act (1994), Section 34: Duty of care and The
     Environmental Protection (Duty of Care) Regulations 1991
     •Hazardous Waste Regulations (2005)
     •Waste Electrical and Electronic Equipment Regulations (2006)

•Electrical Safety
     •The Electrical Equipment (Safety) Regulations 1994
     •The Health and Safety at Work Act 1974

•Data Protection & Security
    •Data Protection Act (1998)
    •Official Secrets Act (1989)
Challenges with e-waste
•   Lack of legislation on the control of second hand electrical/electronic goods;

•   Inadequate awareness and public education on the dangers associated with the
    environmentally sound management of e‐waste;

•   Absence of national infrastructure for formal recycling;

•   Inadequate public‐private partnerships in e‐waste control;

•   Poor corporate responsibility by the industry;

•   Weak global and regional response to e‐waste issues.
Value out of Disposal…
Generate Better Value

• Smart Aging (Refresh Period)                                            Avoid the time when
                                                                          –   to have no value;
   – Define the optimum age for your corporate disposal (3 to 5           –   to be unserviceable or beyond
     years)                                                                   economical repair; or
   – Consider Reducing the costs of resale and increasing resale          –   that the disposal cost is higher
                                                                              than the likely return.
     revenues;
   – Dispose whenever is practical and cost effective
   – Contract for buy-back “revenue sharing”, “zero-cost” or “at cost”,



• Smart ICT Procurement                                                       Effective ICT Asset
   – Awareness of the longer life items and commercial market values          Management and
     for used equipments                                                        Disposal Policy
Avoid the Wider Risk
• Environmental Protection                             Consider the use of
   – Awareness about relevant legislation          environmentally sustainable
   – Oversight of the disposal agents’ practices           methods of
                                                      destruction/recycling.

• Data protection and security
   – Oversight of Data wiping standard
   – Oversight over approaches being used by the disposal agent


• Electrical safety Check
   – ICT equipments before resale or donation
Be Innovative - 50:50 Scheme


         Value Employee Recovered
Year 0 100%         25%       25%       Employee       Financial
                                        Motivation      Reward
Year 1    67%     12.5%      37.5%
Year 2    33%     12.5%       50%
Year 3     0%        0%        0%

                                        Operational   Environment
• It is Optional                        Excellence     Protection
• Careful Usage  Longer Service Life
• Faster Refresh Period
Replace Cost by Benefits

      Cost               Benefits                       Cost                Benefits




“Problems can become opportunities when the right people come together.” Robert South
Achieve Sustainable Environment
Thank you




All the Private, Public and Global organizations that contributing in supporting Recycle IT Project

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Financial and corporate aspects with recycling

  • 1. Financial and Corporate Aspects with Recycling .. ICT By Ahmed Buhazza
  • 2. What is your approach for electronic/ICT dispatching? • ICT Service Life • Wider risk • Value out of disposal
  • 4. ICT procured equipments Electronic Spendings in Bahrain (2009) AV devices Computer 37% hardware 48% Notebook account for about 60% of Computer Sales Mobile handset 15% Source: Bahrain Consumer Electronics Report Q1 2011 - Source: National Audit Office survey and analysis – UK Business Monitor International (December 2010) 2005-06 (million of Units) http://www.reportlinker.com/p0169782/Bahrain-Consumer- Electronics-Report-Q1.html
  • 5. The average age of ICT equipment at disposal Source: National Audit Office survey and analysis – UK 2005-06 (million of Units)
  • 6. ICT Age Factors Brand, Equipment Quality & Configuration Supplier Support and Spare parts availability Warranty Period Software/System update, version Requirements User & Business Demands Usage, Carefulness, Damages
  • 8. Benefits of Asset Management System & Refresh Period • Inventory Control • Total Cost of Ownership • Software License Compliance • Operational Monitoring and Control • Decision Making about IT Resource Deployment • Zero-day Employee Provisioning • Standardization and Compliance • More Informed Purchasing • Business Resumption Reducing operating costs (10%-40% cost savings of operating cost) Source: National Audit Office survey and analysis – UK 2007
  • 9. Minimize Total Cost of Ownership •Dispose before end of life •End of Warranty •Buy-Back before End of Life IT is a Business Decision
  • 11. IC T equipment life-cycle Procurement  Disposal Source: National Audit Office survey and analysis – UK 2007
  • 12. Final Destination! • Landfill: The burial of waste in regulated disposal facilities.
  • 13. Waste Refuse ZeroWaste SA’s waste management hierarchy www.zerowaste.sa.gov.au
  • 14. Disposal options IT conforms to the European Directive on Waste Electrical and Electronic Equipment (WEEE) to dispose of its IT equipment. Source: National Audit Office survey and analysis – UK 2007
  • 15. Refining Methods • Clear – use software or hardware products to overwrite storage space on the media with non-sensitive data. • Purge – Degaussing is exposing the magnetic media to a strong magnetic field in order to disrupt the recorded magnetic domains. • Destroy – Disintegration, Pulverization, Melting, and Incineration – Shredding.
  • 16. Legislation •Environmental Protection •The Environmental Act (1994), Section 34: Duty of care and The Environmental Protection (Duty of Care) Regulations 1991 •Hazardous Waste Regulations (2005) •Waste Electrical and Electronic Equipment Regulations (2006) •Electrical Safety •The Electrical Equipment (Safety) Regulations 1994 •The Health and Safety at Work Act 1974 •Data Protection & Security •Data Protection Act (1998) •Official Secrets Act (1989)
  • 17. Challenges with e-waste • Lack of legislation on the control of second hand electrical/electronic goods; • Inadequate awareness and public education on the dangers associated with the environmentally sound management of e‐waste; • Absence of national infrastructure for formal recycling; • Inadequate public‐private partnerships in e‐waste control; • Poor corporate responsibility by the industry; • Weak global and regional response to e‐waste issues.
  • 18. Value out of Disposal…
  • 19. Generate Better Value • Smart Aging (Refresh Period) Avoid the time when – to have no value; – Define the optimum age for your corporate disposal (3 to 5 – to be unserviceable or beyond years) economical repair; or – Consider Reducing the costs of resale and increasing resale – that the disposal cost is higher than the likely return. revenues; – Dispose whenever is practical and cost effective – Contract for buy-back “revenue sharing”, “zero-cost” or “at cost”, • Smart ICT Procurement Effective ICT Asset – Awareness of the longer life items and commercial market values Management and for used equipments Disposal Policy
  • 20. Avoid the Wider Risk • Environmental Protection Consider the use of – Awareness about relevant legislation environmentally sustainable – Oversight of the disposal agents’ practices methods of destruction/recycling. • Data protection and security – Oversight of Data wiping standard – Oversight over approaches being used by the disposal agent • Electrical safety Check – ICT equipments before resale or donation
  • 21. Be Innovative - 50:50 Scheme Value Employee Recovered Year 0 100% 25% 25% Employee Financial Motivation Reward Year 1 67% 12.5% 37.5% Year 2 33% 12.5% 50% Year 3 0% 0% 0% Operational Environment • It is Optional Excellence Protection • Careful Usage  Longer Service Life • Faster Refresh Period
  • 22. Replace Cost by Benefits Cost Benefits Cost Benefits “Problems can become opportunities when the right people come together.” Robert South
  • 24. Thank you All the Private, Public and Global organizations that contributing in supporting Recycle IT Project