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• Make the data center a priority, but understand the green IT strategy must extend beyond that.

• Create an environmental performance dashboard based on the enterprise’s and IT organization’s environmental policy.

• Use existing and emerging energy management tools, and address behavioral issues to decrease the power consumption of IT-related equipment.

Source: “10 Key Elements of a ‘Green IT’ Strategy,” Gartner Inc., Dec. 7, 2007

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Brian Watson of CIO Insight on his blog “Does Green IT Matter?” tackles an interesting trend in ‘greening’ of products and services. He says that “regardless of businesses’ motivation, investment in eco-friendly technologies continues to grow—fast”. He talks about a study by KPMG, in which “venture capitalists, bankers, entrepreneurs and others said a quarter of new investments will towards green IT”.Why is Green IT suddenly important? Here is my opinion - the confluence of 2 events that are creating new challenges and opportunities for the IT to go green.

1. The rise of commodity prices over the past 5 years, mainly due to insatiable desire by Asian countries (led by China) to modernize, will continue into the future. Demand for base commodity that enable production of power is going to be greater than the supply. The era of cheap commodity is over (at least in for next 7-10 years). This means that the CFO will be under pressure to find alternate viable source of energy in the quest to manage the overhead costs.
2. We have reached a tipping point where majority of consumers are concerned of impact of global warming. There is real drive to “reduce the footprint”. CMO (Chief Marketing Officers) are adapting to the new reality and are baking ‘green’ into their product brand image. CMO’s don’t have the luxury of ignoring the demand by the consumers who want to make sure that the products they use are environmentally friendly. Even hardcore oil companies like Chevron and BP are touting how green they are.

Hence there is huge push on CIOs to deliver an IT infrastructure that is environmentally friendly. Should going green be part of IT Strategy?

If the goal of IT is to align with the business strategy, it’s very easy to envision that the IT Strategy that enables the businesses to achieve both of its objectives a) reduce/manage overhead costs b) increase brand value is not just necessary but extremely essential.

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Read a very pertinent article on Social Marketing on Knowledge@Wharton. The article talks that the buzzwords like Fansumers, viral video etc are more than the marketing gimmicks. These trends are game changers and are going to impact the conventional marketing thinking at Madison Avenue. There is a real need by the consumer to be heard and make an impact on the future product. According to the article “Online technologies allow customers to communicate in new ways with one another, and companies must decide whether to ignore, co-opt or dive into these new waters of interactivity.” Those companies that want to dive into these new developments in Web 2.0 will find that ‘peer’ production has had the disruptive effect on 2 aspects of marketing.

1. Market Research Tool: New and large number of willing and mostly unpaid consumers can be tapped to understand their concerns and objectives. Market Research can be driven by the consumers and firms can take the role of ‘facilitation’.
2. New Channel for Branding: You Tube video and other viral marketing technique has created new ways to ‘soft-pedal’ the brands – brands that are not ‘in your face’ yet ubiquitous. The marketing department needs to understand that their brand message needs to be less aggressive.

The most important conclusion the article makes is “Brands are not in control any longer, and those that let go and put the power in the hands of the user will do well”. Thus Web 2.0 has brought about major transfer of brand control. Let go of your control on your brand - is the message but it’s the hardest thing for a company to let go. But, sooner or later the businesses will understand that by democratizing their brand’s control, a far larger captive audience can be drawn to the product. Letting go of the control on the brand will automatically create an ecosystem of consumers who have the vested interest similar to that of the firm to make that brand successful. But the firm needs to manage and monitor that ecosystem.

Take Dell as an example. Dell now provides computer with Linux operating system. There is a captive base of Linux fans who want the Dell Linux box to succeed. Dell marketing department can take advantage of the Linux users’ vested interest to create a sustained buzz both online of offline.  Another Example is branding of Ron Paul, the Republican Presidential Candidate here in the US. Yesterday his supporters raised $6 million on internet in a single day! All this was done by the supporters without coordinating with Ron Paul. Ron has set his initial vision for America and his supporter using online social media have empowered themselves to promulgate his brand. If you look at it, supporters of Ron have more control on his brand than Ron himself. Because of that, branding of ‘Dr. No’ is far more pervasive compared to other Republican and Democratic contenders.

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