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Sustainability and Green IT

Julie Xiang
Solution Architect
 Growing Demand, Shrinking Resources

“The cost of operating

power for servers is to
surpass the cost to buy
them in the next five years”
– IDC Report, 2007

Demand “Energy bills traditionally have

accounted for less than 10% of
Power
an overall IT budget but soon
Users could account for more than
half”‡--- ---Gartner,
Costs
Services 2008
Space
Access “By 2010, environment-related
issues will be among the top 5
Heat
IT management concerns for
more than 50% of state & local
government organizations in
North America, EMEA and
Australia” ---Gartner, 2008
*Source: http://www.gartner.com/it/page.jsp?id=499090
 A Growing Issue for Businesses and Governments

• Datacenters consume more than 100B

kW of electricity – costing over $7.2
billion annually
• Power consumption doubled between
2000 and 2005 and will likely double
again by 2010
• Over 60% of datacenters are running
out of power, cooling and/or space
• Power density is rising, 1990 cooling
techniques becoming obsolete
• Utility grids not keeping up with
demand in some areas
• Datacenters being targeted to help
reach corporate GHG reduction goals
 EPA Report to Congress – Server & Data Center Energy
Efficiency

Source: EPA Report to Congress on Server and Data Center Energy Efficiency
 Public Sector – US Federal Government
Energy Trends

Energy contracts: $58.6B FY2010

• Energy consumption: 1.5% of US

energy consumption*:
• $28.8B GFY2010 - $20.6B
GFY2008 (18% CAGR)
• Energy Production:
• $25.6B GFY2010 - $12.1B
GFY2008 (46% CAGR)
• Energy Management:
• $4.2B GFY2010 - $600M
GFY2008 (165% CAGR)

Source: FedSources: Federal Agency Domain Report, 2010

 Eco Initiative Drivers

Political Legislation and Cost Reduction

Regulation

Environmental issues 
Existing and future 
The increasing cost
are rapidly making regulations will of energy and the
their presence felt on focus on equipment cost of compliance
political agendas, procurement and with environmental
putting pressure on disposal as well as regulations will bring
policy makers to reduced emissions green IT to the fore
commit to green IT as a means to
solutions that reduce reduce government
environmental impact IT costs
The Drive for Energy Efficiency:
Governments Are Taking Notice

US House of Representatives
H.R. 5646: To study and promote the use
of energy efficient computer servers in the
United States

EU Commission
Energy Efficiency Action Plan to reduce
energy consumption €100B by 2020
 Where Does Data Center Energy Go?

source: APC Corp.

Not enough Cooling for High Loads
What is an Eco-Enterprise?

ECO-EFFICIENCY
An enterprise that takes a
comprehensive approach to resource
management, resulting in reduced
waste and energy consumption.

ECO-INNOVATION
An enterprise that thrives on
innovation and helps create
environmentally sound products and
practices.

ECO-TRANSPARENCY
An enterprise with strong commitment
to provide oversight and transparency
on sustainability metrics.
Enabling the Eco-Enterprise with Oracle
In Three Key Areas

Eco-Efficiency Eco-Innovation Eco-Transparency

• Optimize resource utilization • Design green products • Protect business reputation
• Minimize carbon footprint • Implement green processes • Promote green brand

Service Execution Reverse Logistics

Manufacturing Strategic Network Opt. Procurement
Self Service Governance, Risk &
Compliance
Data Center Management

Product Lifecycle Management

Transportation Management
Asset Lifecycle Management
Sustainability Reporting and Management

Oracle VM

Reduce Waste Expand Enhance &

& Cost Opportunity Protect Brand
 Data Center Management
Doing More with Less
• Data Centers
– 1.5 Percent of ALL US Electricity
– 2x Consumption 2000-2006
– $4.5 billion in Energy Costs

• Oracle Solutions
– Server and Storage Virtualization and Consolidation
via Oracle Real Applications Clusters, Applications
Servers Clusters, Automatic Storage Management etc.
– Apps Consolidation with Oracle Single Instance
– More Efficient Workload Management with
Oracle Enterprise Manager

• Case Study: Oracle University

– 1/6th the hardware using grid technologies
– CPU utilization increased from 7% to 73%
– Revenue per server increased 5X
– Servers to administrator ratio increased 10X

Copyright 2009 Oracle Corporation.

 Steps Towards Green Datacenters

Assess, Optimize, Virtualize

Assessment Optimization Virtualization

Optimize your environment Virtualize
Assess need


Address the low hanging 
Performance
opportunities

Innovate

Space 
Programs

Initiate training 
Power

Open communications

Tools

Cooling 
Services

Identify issues 
Efficiencies

Apply for rebates

Partnerships

Economics

Plan next steps

Action measured in days Action measured in weeks Action measured in

weeks or months
Functional View of Sustainability
Intelligent Management of Carbon, Energy and Other Natural Resources

Risk & Performance Management Sustainability

Business
Environmental Sustainability Natural Resource Carbon Cap &
Compliance & Risk Planning and Trade, Offset Intelligence
Reporting Management
Management Budgeting

Enterprise
Analytics

Supply Chain & Operations Management

Design for the Sustainable Supply Chain Green Environmental Operational
Environment Procurement Planning Manufacturing Health and Analytics
Safety

Intelligent Asset Reverse

Management Transportation Dematerialization Smart Utility
Logistics Grids
Sustainability
Management

Data Collection & Contextualization

Policy
Meters, Mgmt
Data ERP & SCM Emissions Building & Energy Shop Floor
Aggregation Integration Calculations Systems Control and
Integration MES

Controls
Mgmt
IT Infrastructure
Server & Digital Workload Application Software-as- a- Data
Storage Content Management Consolidation Service Verification
Virtualization Management
 Eco-Innovation: Expand Opportunity
Requirement Oracle Capability Business Benefit
Closed-loop product design Oracle users analyze
with embedded Design for Agile PLM, product designs for their DfE
Environment (DfE) principles  Crystal Ball  fitness in order to carry the
for complete lifecycle DfE label.

Oracle users assess products

Complete life cycle assessment
Agile PLM, for compliance to numerous
including consumption and
recycling
 Crystal Ball  regulations such as WEEE,
RoHS, etc.

Strategically design supply Oracle SNO customers have

chain networks for Strategic Network saved millions in freight costs
sustainability (fuel usage,  Optimization (SNO)  along with managing the carbon
carbon emissions, etc.) footprint of its supply chain.

Re-engineer business Oracle Billing & Payment users

Oracle Billing,
processes to leverage
self-service models
 Payment  are 60-90% less likely to call
your Call Center
Remote asset management to
Oracle EAM users can decrease
maximize machinery utilization
and longevity
 Enterprise Asset  unplanned downtime by 30-40%.
Management
 Eco-Efficiency: Reduce Waste and Cost
Requirement
Decrease energy consumption
and emissions with improved
equipment management,
logistics and transportation
efficiencies
Reduce production waste with
Lean Manufacturing
Reduce overall and non-
renewable energy consumption
for facilities
Optimize reverse logistics for
product reuse and recycling
Reduce paper consumption
Optimize dispatch of field
service technicians
Reduce energy usage with
optimized data center
management and virtualization
Oracle Capability Business Benefit
Oracle OTM users are
Oracle Transportation reducing miles, emissions,
 Management, VCP  and overall transportation
(fuel) costs by 5-20%
Oracle Flow Oracle Flow Manufacturing users
 Manufacturing  have lowered scrap by 20%.
Collect and analyze information to
Smart Facilities
 Management
 reduce energy consumption and
identify cost saving opportunities
Agile PLM, VCP, Oracle users save millions of
 Oracle Strategic
Network Optimization
 dollars from equipment
remanufacture and parts reuse.
Oracle Billing, Oracle users reduce paper and
Oracle Internet printing costs along with
 Expenses,  saving natural resources and
Oracle Payroll reducing waste.
Oracle Service customers have
Oracle Service, Oracle
 Real-Time Scheduler  reduced dispatch costs by over
20%.
Oracle On-Demand,
Oracle VM, Green Oracle On Demand users
reduce data center power and
 Operations Center,  cooling usage.
Exadata
 Eco-Transparency: Enhance and Protect Brand
Requirement
Provide and distribute key
sustainability metrics to drive
operational improvements (e.g., GRI)
Efficiently and consistently report
on sustainability and social metrics
to regulators and stakeholders,
including customers (e.g., GRI)
Pro-actively manage
environmental regulatory
exposure in product design
Handle returns of products with
hazardous materials compliance
with regulations
Manage supplier compliance with
procurement visibility (e.g., GHG
Protocol)
Adhere to regulatory directives in
manufacturing operations  Oracle EAM
Community and employee
engagement; Social Media; Training
 Communication
Oracle Capability Business Benefit
Oracle Business Comprehensive business
Intelligence, Crystal Ball, intelligence reporting and
 Green Operations Center,  analysis integrating financial and
GRC sustainability data
Oracle EPM users reduce
preparation costs and turnaround
Enterprise
 Performance
Management, GRC
 time by up to 96%. Oracle GRC
supports ISO 14001 compliance and
helps with risk mitigation.
Oracle provides a comprehensive
 Agile PLM, Crystal Ball
 solution for identifying and rolling
up compliance information.
Oracle customers have
Oracle
 Reverse Logistics  successfully implemented Take-
Back programs.
Sourcing, Supplier
Oracle customers drive compliance
 Lifecycle Management,
Oracle Business
 for NPI and ongoing operations.
Intelligence
Oracle EAM users can improve
 safety by 20-50%.
Workforce Achieve sustainability objectives
 through better communication with
the workforce.
Sustainability Reporting
Environmental Information Dashboard
 Oracle’s Operations

• Green procurement practices

– Power saving PCs
– 500,000 electronic rather than fixed media software uploads
– Limited paper consumption & toner use – saving 19,842,432 pages
• Electronic expense reporting – 100,000 pages in the US
• Electronic delivery reduced printed documentation by more than 96%
• Recycling waste byproducts – 71 tons annually
• Asset retirement – 3.1 million pounds
• Virtual class training through Oracle University worldwide – will eliminate
printing 500,000 student kits over 3 years
• Telecommuting Programs
• Data Center Management
– Energy management
– Oracle University Case Study
• Event Management
– Oracle OpenWorld
 Dematerialization
Online Presentment and Payment
• If every U.S. home paid their bills online it would…
– Save 2 million tons of wood (16 million trees)
– Reduce fuel consumption by 26 million BTUs
– Reduce greenhouse gas by 3.9 billion pounds
– Reduce toxic wastewater by 13 billion gallons
– Reduce solid waste by 1.6 billion pounds

• Case Study: Progress Energy

– Saving 365 tons of paper
– Saving 730 tons of trees
– Saving 6 million gallons of water
– Preventing 1.85 million lbs of greenhouse gases
– Preventing 354 tons of solid waste
– Increased customer enrollment by 66% only 18 months
– Annually saving over $800,000 in payment processing costs
– $1.2MM in paper and printing costs
– Achieved return on investment (ROI) within one year

Copyright 2007, Javelin Strategy & Research

Transportation Management
Reducing Financial & Environmental Costs

• Load Optimization
– Increased weight & volume utilization of
transportation assets results in lowered energy
consumption and emissions
• Dock Optimization
– Increased loading/unload efficiency results in
reduced truck idle time and emissions
• Route Optimization
– Increased efficiency per unit of distance traveled
results in lowered energy consumption and
emissions
• Business Intelligence
– Green Dashboard to measure consumption,
utilization, efficiency, and carbon footprint
Oracle Smart Grid Suite: Customer Service
 Metso and Sustainability Reporting
Oracle Green Customer Success Story
Industry
Global Technology Engineering in
Process and Energy Industries
Overview
2007 Revenue of €8.5 Billion with
26,800 employees in 50 countries
Green Leader
Included on Seven Leading Stock
Indexes for Socially Responsible
Investment (SRI)
Hyperion Implementation
IFRS, US GAAP Statutory
Consolidation, Management and
Non-Financial Reporting (SDM)
• Need for 1,300 emails eliminated as a
result of centralized financial
management and sustainability
reporting solution
• 18-month process now embedded in
financial closing of 3 weeks, 96% cycle
time reduction
• Data availability for business
operations management
• Elimination of integration
costs with financial
platform
• Platform flexibility for
inclusion of future metrics
 Spirent and Product Compliance
Oracle Green Customer Success Story
• Compliance information linked
to the product record improves
reuse and reduces errors.
• Compliance Roll-Ups help
to manage compliance issues
by exception.
• Analytics to analyze designs
and products for their Design
for Environment fitness.
• Agile’s security and change
tracking features maintain high
level of due diligence.
“The enactment of ROHS and WEEE are positive
initiatives for protecting the environment. At the
same time, they add a new level of complexity in
managing the design, production and delivery of
our network performance analysis and service
assurance systems. Agile PG&C provides a
comprehensive solution for identifying and rolling
up compliance information, which will enable us
to make strategic decisions about our products to
ensure availability, manage costs, and provide
the best value to our customers.”
John Lane, Senior Compliance Manager,
Spirent Communications
Kraft Foods Global, Inc.
Project MOST Reduces Empty Loads
CUSTOMER PERSPECTIVE
COMPANY OVERVIEW “We knew we could improve the
• Kraft Foods manufactures and markets packaged food movement of trucks carrying
products, including snacks, beverages, cheese, and products to our customers . The
convenient meals, to more than 150 countries around the challenge is to identify the recurring
world.
patterns of truck movements when
• Industry: Food Processing you have almost a million shipments
• Employees: 98,000 a year, spread across a network
• Revenue: US $42 billion covering over 25,000 potential origin
and destination combinations, on
CHALLENGES/OPPORTUNITIES any given day. After looking for
• Increasing fuel costs and sustainability focus increased the commercial software that would
priority of increasing the efficiency of delivery networks. meet our needs, we concluded that
• Delivery network complexity, including private fleet and none existed and so we decided to
external carriers, presented a combinatorial challenge in work with Oracle. ”
creating efficient truck routing loops.
Mike Cole, Dir. NA Transportation
SOLUTIONS RESULTS
• Oracle OTM
• Significant reduction in empty and
• SAP ERP
deadhead miles (over 500,000 miles
reduced through Q3 2008)
• Reduction of greenhouse gases (3.3
lbs per mile)
• Project has a payback of less than 3
years

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Sustainability and Green IT

• Sustainability is not just good

citizenship – it is good business.

• Organizations needs to be
eco-efficient, eco-innovative
and eco-transparent.

• Oracle has solutions that

can enable you to gain an
eco-advantage and obtain
substantial business value.

• http://www.oracle.com/green/
Q&A

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Additional Success Stories
 Holcim Ltd.
Supply Chain Optimization Reduces Fuel and CO2
COMPANY OVERVIEW
Holcim is one of the largest manufacturers and suppliers of
cement and mineral components in the United States, with
16 manufacturing facilities and more than 76 distribution
terminals. Holcim specializes in the manufacturing,
distribution and marketing of building materials and is
operated through its subsidiaries and associated companies
in over 70 countries worldwide.
CHALLENGES/OPPORTUNITIES
• Inter-unit distribution contributes significantly to overall
cost in this bulk products business.
• With a complex distribution network , optimization of the
production/distribution schedule would contribute
significantly to the bottom line.
• Appropriate tool required to assist with network design,
risk management, and green supply chain planning.
SOLUTIONS
• Strategic Network Optimization (SNO)
• ERP Solution: SAP R/3
Copyright 2009 Oracle Corporation. INTERNAL Oracle Distribution and Use ONLY.
CUSTOMER PERSPECTIVE
“SNO has added significant value to our
organization with its ability to optimize
production and distribution in the near term as
well as it’s use as a key component in longer
term network design”.
- Gareth Rogers, Supply Chain Analyst
“SNO supports how we run the business in the
short, mid, and long term. Through it we
identify risks and opportunities and tackle
them to boost value generation by right-sizing
inventories and optimizing distribution ,
production and purchase plans.
- GM, Supply & Materials Management
RESULTS
• $10M reduction in annual freight
• $5M reduction in annual demurrage costs
• Ability to easily model and analyze “what-
if” scenarios for strategic planning
• CO2 emission optimization underway
 Reverse Logistics: Recycle, Re-use
Oracle Customers Win with Take-Back Programs

• At Xerox, the financial benefits of equipment remanufacture and parts

reuse amount to several hundred million dollars a year
• At Xerox, equipment remanufacture and the reuse of and recycling of
parts diverted 161 million pounds of waste from landfills in 2003

• Recycle old televisions or household appliances for free when

purchasing new products from Best Buy
• Best Buy drop-off kiosks allow consumers to drop off old cell phones,
rechargeable batteries, and ink-jet cartridges

• Less than 5% of any Sun product ends up in landfill

• In 2007, Sun’s EMEA region took back 1,024,726 kilos of material or
121,548 units

• Canon allows U.S. customers to recycle Canon products by ordering a

shipping label online

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Copyright 2009 Oracle Corporation. INTERNAL Oracle Distribution and Use ONLY.
COMPANY OVERVIEW
• World’s leading producer of commercial
vehicle safety systems
• Serve automotive (heavy truck, off-highway,
emergency vehicle
and child seating) and outdoor industries
• Manufacturing facilities in the U.S., Mexico,
and the UK
CUSTOMER PERSPECTIVE
“Oracle stood out from the rest by
demonstrating a commitment to the
ongoing support and development of flow
manufacturing and improved business
processes.”
-- Randy Norman, Director of Info Services

CHALLENGES / OPPORTUNITIES
• Continually reducing mfg costs RESULTS
• Outdated MRP no longer supported • Reduced WIP inventory by 25% &
planning time by 20 hrs / week
SOLUTIONS
• Live on EBS 11i • Order Mgmt • Increased customer satisfaction; 52%
reduction in complaints
• Discrete Mfg • Purchasing
• • Lowered scrap by 20%
• Flow Mfg Financials
• Release Mgmt • Human Resources • Flow Mfg supports business model of low
volume orders with high product mix and
• Mobile SC Apps • Projects
holding no finished goods inventory
• iStore • Created ability to absorb 40% more
business without additional headcount
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 Stora Enso
Unified Global Sustainability Reporting & Analysis

COMPANY OVERVIEW CUSTOMER PERSPECTIVE

Stora Enso is a global paper, packaging and forest products “… It is important to us to manage
company producing newsprint and book paper, magazine sustainability issues as a part of our
paper, fine paper, consumer board, industrial packaging and day-to-day business processes
wood products.  Stora Enso’s sales totaled EUR 11.0 billion and not as a separate function.”
in 2008. The Group has 29 000 employees in more than 35
– Johan Holm, VP, Environment
countries worldwide 

CHALLENGES/OPPORTUNITIES
• Senior management elevated the priority of sustainability
reporting based on global market perspective (climate
change, rising energy costs, fiber acceptability, etc.)
• Challenges integrating global financial and sustainability
data.
• Disparate reporting schedules.
SOLUTIONS
• Hyperion Financial Management (HFM)
• ERP Solution: SAP
RESULTS
• Implemented using existing infrastructure
and Stora Enso team in less than 60 days
• Enhanced reporting and analysis
integrating financial and sustainability
data
• Ability to monitor data quality globally for
150 sites
• Same process and schedule for annual
reporting package.

Copyright 2009 Oracle Corporation. INTERNAL Oracle Distribution and Use ONLY.
COMPANY OVERVIEW
• $21.5B world’s leading producer of aluminum
• Discrete / process manufacturing, mining and
utility operations
• 350 manufacturing plants and
120K employees in 39 countries RESULTS
• Live on E-Business Suite 11i at 42 sites
• Design partner for Enterprise Asset Mgmt
- Provided maintenance best practice
CHALLENGES / OPPORTUNITIES expertise
• Highly distributed asset environment - Extend beyond traditional CMMS
• Vertical integration – mining through
- Integration / common architecture
mixed-mode manufacturing
• Track and coordinate all asset
requirements in a single location
ALM SOLUTION
• Enterprise Asset • SC Planning • Established infrastructure to absorb
Management • Configurator acquisitions rapidly
• Financials • Discrete Mfg
• Project Costing • Process Mfg
• iProcurement • Human Resources
• Order Mgmt
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