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Editor's Notes

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Global Perspectives to Ponder; Books to Read in Editor's Notes

Posted by Paula Klein Aug 18, 2011

We all get so immersed in our busy professional lives that we often forget to reflect on the big picture and human side of information technology and its role in global society. I was reminded of this when I recently spoke with Jiten Patel, whom I had the pleasure of working with when he was CIO at the microfinance organization, FINCA.

Like you, Jiten works in IT-driven organizations and deals with the complexities of delivering secure consumer technologies and cloud computing services to internal and external stakeholders. In particular, his lens is open to the worldwide view — especially, developing nations. In his current role as CEO of MicroPlanet Technologies, Jiten provides cloud services to microfinance institutions that, in turn, make microloans in Latin America, Asia and Africa.

For some of us, it’s difficult to connect the dots between high-technology platforms such as cloud computing and the poverty, lack of infrastructure and instability that many of the world’s populations face. We frequently hear about the boom in cell phone use in developing nations and the growth of high-tech industries such as call centers, often outsourced from U.S. businesses. But the realities of unreliable electricity, lack of Internet connectivity and insufficient skills are far more common. As Jiten writes in his blog on Smart Enterprise Exchange this month, information and communication technology (ICT) holds out promise and opportunities for these nations despite huge challenges. I encourage you to comment on his blog and to get involved as you can. You can also join a group on this site to discuss issues with your peers in London, India or Mexico Or on the topics of cloud computing, green IT or Web 2.0.

All you need to do is scan the headlines to see stories about ICT’s role in economic growth in countries from South Africa to Kenya; Brazil to the Philippines. Brazil this month announced that it is offering 75,000 scholarships for secondary students to study science and engineering — fields that lag significantly behind the study of humanities. Right now, Brazil has a shortage of qualified applicants for the high-tech industries that are growing most quickly. This contrasts with other fast-developing nations, such as India and the Philippines, where graduate choices are heavily skewed toward computing, science and engineering.

If you’d like a more academic explanation of global economics, several upcoming new business books may provide helpful background and food for thought. The basic principle of Western capitalism is the subject of two upcoming business books — each with a different conclusion. Based on previews of the book Capitalism at Risk: Rethinking the Role of Business, co-authors and Harvard Business School professors Joseph Bower, Herman Leonard and Lynn Paine, argue that while governments must play a role, businesses should take the lead in sustaining market capitalism. Due out in October, the book explains how business “must serve both as innovator and activist, developing corporate strategies that effect change at the community, national and international levels.”

By contrast, Standing on the Sun: How the Explosion of Capitalism Abroad Will Change Business Everywhere, due out next February, contends that new economic models will unfold as the emerging economies of the world — primarily, Brazil, India, China and others — surge forward. The co-authors, Christopher Meyer and Julia Kirby, ask: “As these fast-growing, low-income economies mature, will they adopt the practices of the old guard or will they make their own way, and create the next prevailing version of capitalism?”

Finally, in India Inside: The Emerging Innovation Challenge to the West, due out in November, leading management experts Nirmalya Kumar and Phanish Puranam describe the quiet, but dramatic rise in innovation occurring in India — from B2B products and R&D outsourcing to process and management innovation. The authors maintain that “for certain kinds of innovation, the long-held monopoly of the developed world is over.”

So, as some of you wind down the last days of summer holidays, or perhaps as you travel the globe, observe the rise of technology and weigh its implications for future economies. Then consider: What role will you and your enterprise play on this global stage?

Paula Klein

Editor and Community Manager

Smart Enterprise Exchange

655 Views 1 Comments Permalink Tags: jiten_patel, finca, microfinance, ict, global_cios, economics, harvard_business_press, books, south_africa, brazil, india, phillipines

It’s Easy to Be Green With the Right Commitment in Editor's Notes

Posted by Paula Klein Mar 25, 2011

Years ago, before green described more than a Muppets frog or an envious feeling, I began following high-tech in the U.S., and along with most others I considered it a “clean” industry without major impact on air pollution and the surrounding environment.

What wasn’t really discussed or widely known — except perhaps among those who ran large glass-house data centers — was the huge amount of energy required to operate and to cool these centers, as well as the carbon emissions they produced.

Fast-forward to 2011 when we can no longer claim that IT is environmentally neutral — that is, unless or until businesses take steps immediately to offset the impact of our massive, global IT industry on air, water and natural resource consumption.

Fortunately, many enterprises are not only aware of the problems, they are taking action. And for those that need more nudging, many governments, as in Europe, have stiff regulations to persuade public and private organizations that they must reduce energy consumption as well as carbon emissions or face financial penalties.

To my mind, whether motives are purely about social responsibility (which I hope is an important factor) or whether they are financial and business-driven is less important than the actions taking place to make IT sustainability a rising priority, not just a nice afterthought. At the very least there needs to be a corporate policy with specific goals and a short-term timetable to reach them. And IT data centers must be a significant part of any initial remediation efforts.

Smart Enterprise Exchange recently discussed the topic of sustainability with experts at two global companies: Siemens IT Solutions and Services, in the U.K., and CA Technologies based in the U.S. It was encouraging to hear that each is “walking the talk” and addressing concerns as an IT user as well as a solutions provider to external customers. Part 1 of the audiocast is now available, and I've also highlighted here some comments from the full discussion with these panelists who make it seem very easy to be green:

Clark MacFarlane, Siemens IT Solutions and Services’ Managing Director, U.K., and CEO for North West Europe, framed the situation well when he said that IT sustainability should be one essential part of a “larger, organizational drive.” In the U.K., public and private sectors must “live the principle” and meet “demanding targets set to reduce carbon and energy efficiency usage. “Under current U.K. environmental legislation, it isn’t an option; it’s an obligation,” he said. Siemens, therefore, has a responsibility to the environment as well as to its customers and employees to conserve energy.
Specifically, Steven Barker, Siemens IT Solutions and Services’ Head of Government Affairs, U.K., said hard ROI will be realized when you are compliant with legislation. “Everyone understands that there are reputational risks if you don’t comply.” More positively, “any sustainability activity can have a payback and it should be embedded in a business case so there is no conflict between business and sustainability objectives.” The challenge, he said, is to get clarity, and prioritize all of the efforts under way.
MacFarlane said Siemens had set targets to reduce its CO2 impact and water efficiency by 20 percent – and between 2006 and 2009, CO2 emissions had improved by 17 percent and water usage by 29 percent. In addition, some 62 percent of its waste was now being recycled. Based on its own achievement of reducing the number of data centers – down from 100 to 30 in Germany, for example – the company helps customers with data center virtualization and consolidation, lean processes and even travel costs by encouraging more videoconferencing and public transportation.
CA Technologies also practices what it preaches to customers, according to Chief Sustainability Officer Cynthia Curtis. “We use much of our own technology to monitor and improve energy consumption,” she said. The tough economy makes it even more critical to invest and prioritize in green efforts that “drive bottom-line savings.” In addition to virtualization, the cloud is enabling better productivity and cost savings for CA and its customers. Similarly, better metering of data centers can cut down on air conditioning to improve the environment as well as the bottom line.
Like Siemens, CA Technologies has designed buildings and data centers to comply with rigorous environmental standards. Sanket Atal, Senior Vice President of the CA Technologies India Technology Center in Hyderabad, noted that his campus considered “eco-friendliness since day one.” It recycles waste water, composts food and other materials, and used energy-efficient materials for its design. As a result, the site has earned LEED [Leadership in Energy and Environmental Design] certification and a gold award for green design.

Are these companies unusual in their commitment to the environment? I’d like to hear more from our members before I can feel confident that the IT industry — particularly in the U.S., where regulations are lax — is really serious about improving the environment and reversing global warming trends. Some recent research is not encouraging. What is your IT department doing to become greener? Are you measuring tangible results? Please share your practices with others on the Exchange.

3951 Views 3 Comments Permalink Tags: north_europe, tariffs, emissions, leed, siemens, datacenter, global_warming, audiocast, green_it, india, carbon_footprint, ca_technologies, sustainability, energy, environment, uk