Winsights - Innovation to win in a world of constraints

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© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 1 WInsights October December 2012 A Wipro Council for Industry Research Journal

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This issue of Winsights presents insights from the various practice heads on how rapid rise in consumption and growth, increased volatility and resource constraints are rippling across industries and how industries can better adapt to these changes

Transcript of Winsights - Innovation to win in a world of constraints

Page 1: Winsights - Innovation to win in a world of constraints

© 2012 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 1

WInsights October – December 2012

A Wipro Council for Industry Research Journal

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Innovation to Win in a World of Constraints

This issue of Winsights presents insights from the various practice heads on how rapid rise

in consumption and growth, increased volatility and resource constraints are rippling across

industries and how industries can better adapt to these changes

Gains in energy efficiency, renewable

energy, forest conservation, and

sustainable land use worldwide could

achieve up to 75 percent of needed global

emissions reductions in 2020 at a net

savings of $14 billion

Quick Facts

40% increase in world

energy demand in the

next 20 years

83% of the world’s energy

is from fossil fuel

Companies spend 9% of

their operating cost on

energy

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Innovation is the only solution

Rapid rise in consumption and

growth in the last few years has brought

resource constraints to the limelight

Consequences of natural resources

depletion is prompting organizations to shift to

new, sustainable business models

Environmental awareness is making

the ecosystem players assess the Triple

Bottom Line of People, Planet, and Profits

Enterprises look to lower carbon emission reductions and save on energy from fossil fuels

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Sl. No. Article

1 Manufacturing The Future Is Green

2 Sustainability Reporting

3 Making The Carbon Commitments

4 Achieving Energy Savings In The Age of Capital Constraints

5 The New Journey to The Center of The Earth

6 Successful Change Management to Build a Sustainable Organization

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In this Edition…

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In this Edition…

Manufacturing

The Future is Green

Sustainability Reporting

Mirror, Microscope, Springboard

1 2 3

4 5 6

Adopting green Manufacturing practices

and achieving green targets require

long term commitment and sustained

effort on the part of businesses.

However, sustainability is non-

negotiable

Sustainability reporting by the

Corporate sector is today at a potential

inflection point. Whether it can fulfill its

role will depend on a variety of factors,

extrinsic and intrinsic to companies

Achieving the Carbon reduction goals is

a reward in itself apart from operational

efficiencies and enhanced sustainability

profile. It is undoubtedly the path to be

pursued resolutely.

Organizations need to ensure that their

energy efficiency programs are

managed holistically, with processes

established to enable visibility into

critical areas of operations.

Tomorrow’s mines will almost certainly

need to have fewer humans resulting in

greater efficiency, lower costs and

improved safety and environmental

performance.

The key to successful change

management is about inducing a

behavioral change among the people

involved

The New Journey to the

Center of the Earth

Making the Carbon

Commitments

Achieving Energy Savings in the

Age of Capital Constraints Successful Change Management

to Build a Sustainable Organization

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Manufacturing : The

Future is Green

The adoption of green manufacturing

practices has become foundational for

businesses in view of the rapid depletion

of natural resources and the impact on

the environment from the proliferation of

electronic waste.

It adds to the competitive advantage and positions

organizations to benefit from the market for low

carbon environmental goods and services

currently estimated at $5.2 Trillion and expected

to grow to more than $6.5 trillion by 2015

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The Green Journey

Create a Shared Vision

Evolutionary; Not

Revolutionary

Long-term Commitment

Align to Business

Goals

Monitor The Metrics

Closet he Green Supply

Loop

Review Suppliers’ Practices

Report and Disclose

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Manufacturing : The Future is Green

For more details visit here

Green manufacturing is about using Green Energy,

developing Green Products and employing Green

Processes while reducing resource use and wastage.

These goals align well with the objective to improve

competitive advantage, making a compelling business

case for going Green.

Green Manufacturing

A dilemma for manufacturing companies adopting green

practices is that these are unlikely to generate profits in

the short term. But a trade-off for long-term gains is both

necessary and sustainable if the organization’s vision is

set firmly on the triple bottom line—people, planet, and

profits.

Sustainability is Non-negotiable Manufacturing organizations cannot side-step any longer, owing to the increased scrutiny on

their environmental performance as well as the pressing need to reduce resource use

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Sustainability Reporting

Sustainability reporting can help with self-

reflection and continuous improvement; it

also allows for external scrutiny and this

combination provides a platform for

strategic actions and continuous

improvements.

Sustainability reporting on one hand, is not as

pervasive and widely accepted as financial

reporting, on the other hand, it has evolved to

occupy a distinct space of its own in the last

decade.

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Breadth of Collaboration

Function Areas Covered

Human Resource Labour And Human Rights, Diversity, Freedom Of Association, Employee

Engagement

Facilities Operations Energy And Water Footprint, Climate Change, Waste Management,

Biodiversity

Finance Investor Relations, Board Governance, Payments To Stakeholders,

Sustainable Investments

Legal Codes Of Business Conduct, Political Lobbying, Anti-Corruption, Anti-Fraud

& bribery, Risk Management,

Product Development Life-Cycle Design Of Products, End Of Life Waste Management, Reduction

In Operational Footprint, Supplier Responsibility

Corporate Sustainability Sustainability Strategy, Community And Social Initiatives, Report Editing &

Compilation

Supply Chain Supply Chain Responsibility, Green Procurement Policy, Supplier Code Of

Conduct

Marketing & Corporate

Communication

Ethical Marketing And Advertising, Report Design And Communication

Strategy

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Sustainability Reporting

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• Member of DJSI for three years in succession and Sector Leader in Computer & Internet services sector

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• Listed in World’s Most Ethical Companies 2012 by Ethisphere

3 • Part of Global Carbon Disclosure Leadership Index (CDLI)

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• Ranked #2 In the Newsweek’s global ranking of 500 Green Companies

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• Ranked # 1 in the Greenpeace global ranking of Green Electronics

For more details visit here

Reflection of Wipro’s passion for and attention to sustainability disclosures:

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Making the Carbon

Commitments

Organizations across sectors have made

carbon reduction targets that vary from very

high to modest and have a mixed record on

achieving them. A look at how they can set

realistic but ambitious carbon targets to stay

competitive and sustainable.

Companies exhibit a mixed record on setting and

attaining carbon goals. Businesses that fail to

show a commitment to reduce emissions risk

being labeled as irresponsible.

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Carbon Commitment Drivers

Given that efforts to go low carbon usually involve paying for some offsets, but the same targets

can cut down wasteful use of energy and push for new thought process in material and operational

efficiency.

1. Government Push for Carbon Reduction

2. Strategic Direction of The Industry

3. Develop an Environmentally Friendly Identity

4. Cost-efficiency

5. Increased Employee And Customer Satisfaction

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Making the Carbon Commitments

For more details visit here

Carbon reduction goals helps in the form of greater operational efficiencies and an enhanced

sustainability profile

It is advisable to set the long term aspiration but publish mid-term goals which can be revised as the

organization gains more experience on sustainability

Evaluating the business, regulatory and technological landscape and getting internal commitments is a

crucial step before setting their carbon targets

Companies are usually driven by investor and peer pressure, government and regulatory mandates in

setting their carbon targets

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Achieving Energy

Savings As energy supplies dwindle, organizations

are under pressure from various

stakeholders and governments to

improve energy efficiency, lower energy

costs, and reduce their carbon footprint

Energy efficiency programs deliver benefits, such

as better operating margins, and compliance

with regulatory goals; and intangible ones, such

as energy security, stock performance and

investor preference, lower costs across the

supply chain, and customer loyalty.

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Energy's Synergy

Monitoring is the Key

Selecting the Right Strategy

• Any energy efficiency program is incomplete without adequate and

Regular monitoring and reporting.

• Continuous monitoring of the energy efficiency programs helps

establish patterns of energy.

• It takes care of asset performance, as well as challenge current

assumptions on performance and usage.

• An exhaustive analysis of the all the alternative approaches available

is necessary before implementing an energy savings plan.

• This requires a facility wide energy management review that calls for

analyzing the financial and energy consumption components in order

to frame the scope of the energy efficiency projects.

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Achieving Energy Savings

For more details visit here

Energy Management Platform:

Offers the modeling capability

Provides advanced analytics tools

Offer distributed monitoring and control

Helps analyze asset performance and detect faults

Offers event and service management to evaluate

downtime and variance in energy consumption

There is no one-point solution to reduce energy consumption

Organizations need to implement a set of tools and processes to gain the visibility and control

Energy efficiency programs are managed holistically, with processes established at the plant

level to enable visibility into critical areas of operations

Companies that go beyond the requirements stand to benefit from the policy incentives and

opportunities that will be available in a world of energy constraints

Insights into Achieving Energy Savings

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Journey to the

Center Of The Earth

Driven primarily by large scale

industrialization, urbanization of emerging

economies and advances in consumer

technology, we are witnessing the biggest

boom in the global mining and energy

industry in the last 50 years.

The mining model that most companies operate

under has not seen a significant “step-change”

in the last 20 - 30 years. This has been partly

driven by a super cycle of profits and therefore

no real ‘compelling event’ to evolve.

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Drivers for Change

For more details visit here

Mining at greater depths

Leftover ore bodies : Lower grade

Newer deposits found in

more inhospitable conditions

Dearth of skilled

resources

Moving from supply

driven to demand driven

The problems identified are significant and simply doing the same things faster or

“scaling up” existing models and equipment will not work in tomorrow’s mine

Mining is increasingly becoming more difficult with traditional tools and execution

models. This is being driven by several factors:

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Journey to the Center Of The Earth

For more details visit here

Change the Mindset of

Miners

Design a New Operating

Model

Standardise Where

Possible

Integrate and Gain a Full

View

Automate and Centralize

Control

Steps to consider when future proofing a Mining Company

The next few decades will witness increased global demand for almost all metals & put

pressure on miners to bring more capacity on line

Tomorrow's mines will need to have fewer humans resulting in greater efficiency, lower costs,

improved safety & environmental performance

Organizations would rely upon standardised, integrated and automated systems that can

manage remote sites

Future Insights

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Change Management to

Build a Sustainable

Organization

It is difficult for organizations to avoid change as they strive to remain sustainable in an

ever-changing and competitive environment. Companies that have a system in place for

proactively responding to change will accelerate their competitive advantage

It has become a strategic imperative for

organizations to build in the ability to introduce

and sustain change. But change is more often

resisted than supported in organizations

because people rarely are given the chance to

understand the reason for the change.

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Charting a Safe Course

Draw up a Clear Business Case for Change Created

Draft the Change Vision and Change Strategy

Set the Context & Framework for Change

Leadership Alignment & Securing Stakeholder Engagement

Communicating the Change Effectively

Remove Obstacles

Imparting Training

Benefits Realization

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Succesful Change Management

For more details visit here

• Organizations and leaders need to chart a clear path and deliver results

• Organisation should offer clarity to the employees on the way they can contribute to success

• Support leaders to instill confidence, use a disciplined process to ensure effective use of change and communication resources

• Build a shared experience of the challenges and rewards of working together

• Identify and evaluate the attitudes of individual users and influential groups

• With effective communication Management can create strategies to overcome employee resistance to any change

Need for Strategic Focus

The key to successful change management is about inducing a

behavioral change among the people involved.

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Wipro set up the Council for Industry Research, comprised of domain

and technology experts from the organization, to address the needs of

customers. It specifically surveys innovative strategies that will help

customers gain competitive advantage in the market. The Council, in

collaboration with leading academic institutions and industry bodies,

studies market trends to help equip organizations with insights to

facilitate their IT and business strategies.

For more information on the Research Council visit

www.wipro.com/insights or mail [email protected]

About Wipro Council for Industry Research

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Wipro Technologies, the global IT business of

Wipro Limited (NYSE:WIT) is a leading

Information Technology, Consulting and

Outsourcing company, that delivers solutions to

enable its clients do business better. Wipro

Technologies delivers winning business outcomes

through its deep industry experience and a 360

degree view of “Business through Technology” –

helping clients create successful and adaptive

businesses. A company recognised globally for its

comprehensive portfolio of services, a

practitioner’s approach to delivering innovation

and an organization wide commitment to

sustainability, Wipro Technologies has over

140,000 employees and clients across 54

countries.

For more information, please visit www.wipro.com

About Wipro Technologies

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Thank You ©Wipro Limited, 2012. All rights reserved.

For more information visit www.wipro.com

No part of this document may be reproduced in

whole or in part without the written permission of the

authors.

Wipro is not liable for any business outcome based

on the views presented in this document. For specific

implementation clients should take advise from their

client engagement manager.