By Computerworld Philippines Staff
March 30, 2010

Although countless abilities have been said about what IT can do in sustaining business growth, a lot of chief information officers (CIOs) haven’t taken advantage, reported global analyst and consulting company Ovum.

In its recent report entitled “Sustainability management: an opportunity for CIOs,” Ovum cited two important points that have largely been ignored by many CIOs – “first, many green initiatives can actually reduce costs and boost the bottom line, rather than shrink it; second, IT has a major role to play in supporting these practices.” Ovum explains CIOs who “get” the second point have a chance to raise their profile and increase their strategic value to the organization.

Warren Wilson, senior analyst of Ovum based in Washington, said there is no escaping green IT, as consumers, regulators and investors all want businesses to adopt greener practices throughout their operations.

“Most CIOs have looked at sustainability through the narrow lens of ‘green IT’ – the energy consumption and CO2 emissions directly tied to computing and communications,” Wilson said. “What they’re missing is the critical role that IT can play in supporting green practices across the entire organization.”

Wilson explains in the report that sustainable practices aren’t something a business can simply define, deploy and forget about. Each department has unique processes and problems that must be addressed. The solutions must be monitored and analyzed to make sure that they deliver the desired results, that these results are maintained over time, and that they can be reported to compliance officers, regulators, customers and investors as needed.

He added such monitoring, measurement, analysis and reporting is inevitably a data-intensive process and one that is very similar to – indeed, a natural extension of – solutions such as enterprise resource planning (ERP) and business intelligence (BI) that many organizations already have deployed.

“Then, when you consider that companies will increasingly have to calculate and report the carbon footprint of products across their entire life cycle, the challenge becomes one of extended supply chain management (SCM), reaching all the way back to raw materials at their source and all the way forward to the product’s eventual disposal, reuse or recycling,” Wilson said. 

Wilson said the selection, deployment and management of ERP, BI and SCM solutions is largely the CIO’s responsibility and therefore broadening these solutions to encompass sustainability should be the CIO’s job as well. “But so far, few have risen to the challenge,” he stressed.

Wilson also commented most organizations have only begun to develop broad sustainability initiatives, and are in the earliest stages of understanding what will be required to implement and maintain them, which now leaves a leadership vacuum that CIOs are well positioned to fill. He said those that do, can increase their strategic importance by affecting how, when and how well their organizations succeed in adopting greener practices. – Tom S. Noda  

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