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August 20, 2007 
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| A Guide for Sustainable Business Innovators | |||
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Creating Green Value with New Technologies
Web 2.0, blogs, wikis, social networking . . . lots of technologies (and buzzwords) changing the way we all interact, shop, work, and live. Companies are starting to use these and many other more wonky technologies — like global positioning satellite data, logistics software, and high-speed networks — to streamline their businesses. Some organizations are realizing that these cutting-edge tools (and some older, simpler technologies) can help them create green value as well.
This issue has a few examples of some innovations that take even the stodgiest old-school businesses and bring them into both the green and the techno-logical ages. To help think systematically about the different ways to profit from green thinking, I like to go back to the four pillars of innovation and value: cost cutting, risk reduction, revenue growth, and brand enhancement. Most new technologies are put into the service of cutting costs and efficiency gains first, but the companies below are finding value in multiple ways at once — often hitting all four pillars with a single initiative. Take Mexican cement company Cemex, which is using technology to reduce its own costs and risk, to satisfy customers, and to move its brand from "stodgy" to "hot." Granted, many of these initiatives were not focused on green from day one, but the environmental benefits are real just the same. And does it matter which came first? ~Andrew Winston, Founder, Winston Eco-Strategies, Co-author, Green to Gold (Read his "Eco-Advantage" blog here.) Comments or questions? Join Andrew and other readers online at the Eco-Strategies Forum. Old + New Tech = Savings: Daylighting at Wal-Mart 
Wal-Mart combines skylights (an ancient “technology”) with modern software to do something very simple — turn down the internal lights when there's enough natural light filtering in. This chart of energy use at a Wal-Mart store during a typical week shows big peaks at night and smaller peaks during storms or bad weather. The "valleys" in the chart show when the lights were dimmed (most of the day). The total savings cover the cost of the skylights, sensors, and other technology within 2-3 years - a smart investment that easily clears the company's normal hurdle rate.
(Wal-Mart isn't alone in managing climate for profit. Some companies use software to control outdoor water use by checking the weather online for predictions of storms before turning on the sprinklers.) Using Tech to Streamline B2B Ops: Cemex Goes GPS 
Mexican concrete supplier Cemex broke out of its old-economy shell by equipping the company's entire delivery fleet with global positioning systems to streamline product delivery. Less time on the road means reduced fuel costs and fewer greenhouse gas emissions, plus lower operational risk for Cemex and its customers. The move also helped boost revenue thanks to increased customer satisfaction and loyalty. Yet another bonus? The high-tech gizmos made a stodgy supplier of heavy industrial materials look cutting-edge. The investment community certainly took notice: Motley Fool singled out Cemex stock as a smart bet, noting that the company's 30-minute delivery windows set a new industry standard.
Small Business Tip: GPS doesn't stand for "Giant Product Supplier." Mac-Gray, a Boston-based provider of laundry facilities management services, has optimized operations saved big on fuel costs by equipping its fleet of coin collectors with GPS.
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The Upside: Videoconferencing Comes into Its Own 
For years, video conferencing was long on promise but fell short in practice. Now a number of players, including Cisco, HP, and lesser-knowns like Teliris (which has one-upped the competition by going climate-neutral), are battling for a new market. I've seen Cisco's TelePresence (full disclosure: Cisco is a client of mine) and it's cool technology, but it also helps Cisco reach one of its own environmental goals — to reduce employee travel (see the company's commitment to the Clinton Global Initiative). This new space is competitive, but what's interesting is that high-end videoconferencing is competing with air travel, not with other communication technologies. And, in Cisco's case, it leverages the core products, networking equipment (so a rise in the use of telepresence is likely good for the company no matter who sells the equipment).
Wiki Problem-Solving: IBM's Innovation 2.0 
Tech-savvy companies are harnessing the people-power of Web 2.0 to get as many new ideas on the table as possible. IBM's Global Innovation Outlook program provides a platform for researchers, consultants, and industry leaders to brainstorm on up-and-coming business opportunities for innovation (some of this thinking led to the "Big Green" initiative, which focuses on applying the company's tech know-how to solving emerging environmental opportunities).
Case Study: Nau - A Next-Gen Outdoor Apparel Co. 
Fledgling outdoor clothing seller Nau brings the efficiencies of online retail to the brick-and-mortar store. Called "Webfronts," Nau stores feature touchscreen kiosks that encourage customers to have their purchases sent home, with the incentive of a 10% discount plus free shipping. The advantage? Smaller stores consume fewer resources and reduce operating costs. Nau is using technology, and engaging customers, to pursue sustainability and transform the business.
The Final Word: Blogging Your Brand 
A design problem that led some Dell computers to spontaneously burst into flame might have, um, blown up in the company's face. But one quick-thinking Dell corporate blogger posted video of one of the meltdowns online — a bold transparency move that narrowly averted a public relations crisis. In this article from Business Edge, tech marketer Nathan Rudyk describes how Dell and other companies use the blogosphere to boost their corporate profiles.
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Eco-Advantage Salon Tour! Andrew's Eco-Advantage Salon Tour is coming to a city near you. Watch here for information on our next locations, dates, and participants. Denver and Portland are next up. Save the date! Denver: Aug. 22, Oxford Hotel Portland: Aug. 23, DoubleTree Lloyd Center Program 
Find Peers and Partners If you haven't already joined the fastest growing online sustainable business community, create a profile now and start connecting. Books & Media "No executive can afford to ignore the green wave sweeping the business world. [Co-authors] Esty and Winston show how to make sustainability a core element of strategy-and profit from it." -Chad Holliday, CEO, DuPont Solution Providers |
This work is licensed under a CreativeCommons License. Copyright Sustainable Life Media Inc. 2007
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