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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)      

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.  

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The  Environment  is  on  Everyone’s  Agenda  

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ICT’s  Mass  ProducGon  Carbon  Cost  

2%  ICT  Accounts  for  Approximately...  

…of  Global  CO2  Emissions.  Source  Gartner  

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  

•  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%  

Sustainability  1.0  Case  Study    

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  

Sustainability  @    

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    

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  

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  

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

Understanding  the  IT  Footprint  

Understanding  the  IT  Footprint  

Data  Centres:  An  Inefficient  Truth  

*  Source:  EPA  Report  to  Congress  on  Server  and  Data  Center  Energy  Efficiency,  August  2007  

32%  Processor    

Drives 5%

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

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    

Telepresence  and  Video  Conferencing  

•  435,000  employee  travel  hours  •  $73  million  in  travel  expenses  •  65,000  metric  tons  of  CO2  emissions  

Increasing  IT  Performance  2009-­‐2011  

Intel’s  Overall  Corporate  Sustainability  Performance  2007-­‐2010  and  Intel  IT’s  Sustainability  Performance  2009-­‐2011      

 

Trends  in  Intel  IT’s  Sustainability      

(Source  Intel  IT  Annual  Performance  Report,  2011-­‐2012)      

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”  

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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.

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  

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

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    

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://www.edwardcurry.org/publica7ons/MISQE_SustainableIT_Intel_2012.pdf  

•  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://www.edwardcurry.org/publica7ons/donnellan_ITPro_SICT_2011.pdf    •  Curry,  E.,  Guyon,  B.,  Sheridan,  C.,  and  Donnellan,  B.  2012.  “Sustainable  IT:  

Challenges,  Postures,  and  Outcomes,”  IEEE  Computer  (45:11),  pp.  79–81.  –  hgp://www.edwardcurry.org/publica7ons/Curry_SustainableIT_Computer2012.pdf  

Teaching  Case  •  Curry,  E.,  and  Donnellan,  B.  2012.  “Sustainable  IT  at  Intel:  A  

Teaching  Case,”  In  Interna7onal  Conference  on  Informa7on  Systems  2012  

–  hgp://www.edwardcurry.org/publica7ons/Curry_Intel_Teaching_Case_ICIS.pdf  

•  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