Does Green still mean Go for the manufacturing IT industry in a recession? (Strategic Focus)

Does Green still mean Go for the manufacturing IT industry in a recession? (Strategic Focus) published by Datamonitor in April, 2009. This report consists of 26 pages and the price starts from US $ 3395.

Introduction

Abstract

With the manufacturing industry under significant economic pressure, IT investment trends are rapidly changing. At the same time, environmental regulation is on the rise forcing companies to improve their Green performance. Investment in Green IT solutions represents one area that manufacturers can improve their emissions and at the same time reduce cost.

• This report primarily focuses on what Datamonitor describes as traditional Green IT: that within the datacenter and desktop environments.
• It approaches the issues of Green IT from a global perspective, with discussion of regional and industry trends.
• The impact on investment in Green IT caused by the global downturn is discussed extensively.

The range of drivers influencing investment in Green IT is as diverse as the topic of environmental sustainability itself. These include cost, corporate, environmental and social responsibility, an increasing awareness of Green issues amongst the general population, employee pressure on management, pressure from retail customers and regulators.

One of the appeals of Green IT in Datamonitor' s opinion is the fact that often, the goals of improving Green performance throughout the manufacturing company, and reducing cost can often be achieved simultaneously with a well-developed Green IT strategy.

• Understand the key drivers influencing investment in Green IT within the manufacturing industry.
• Assess Datamonitor' s opinion of the Green IT market when faced with severe economic pressures.

Table of Contents

OVERVIEW

• Catalyst
• Summary

KEY MESSAGES

• The market definition of green IT varies wildly
• Green IT will be one of the more recession-proof technology strategies
• A wide range of drivers is creating investment in green IT
• Projects can vary in complexity depending on their scope
• Manufacturers can reduce costs through the adoption of green IT strategies
• The role of IT in wider green projects is firming up
• Hardware vendors are leading the pack in terms of green IT go to market refinement
• The market will look drastically different in five years
• Targeting the right industry will be critical for technology vendors
• Regional trends are being driven by the economic crisis and government regulation

MARKET OPPORTUNITY

• The market definition of green IT varies wildly
  • Traditional green IT represents green within IT departments and in particular the datacenter
  • Technology that has been developed for green-specific processes is also often included in green IT
  • Support for the ' greening' of line of business processes represents the broadest definition of green IT

• A line needs to be drawn at some point to provide robust analysis of green IT
• Green IT will be one of the more recession-proof technology strategies
  • At an aggregate level, the manufacturing industry is cutting back on IT spend
  • Datamonitor believes green IT will remain a priority for CIOs

• A wide range of drivers is creating investment in green IT
  • A significant of portion of surveyed manufacturers already have a green IT strategy in place
  • Cost is the most important issue for green IT
  • Improving the corporate image is also an important factor of green IT projects
  • Environmental regulations continue to be implemented, particularly in Europe
  • Customer driven mandates are starting to appear particularly in consumer facing industries
  • Internal factors such as employee demand are also contributing to the formation of green IT agendas

CUSTOMER IMPACT: GOING GREEN

• Projects can vary in complexity depending on their scope
  • The datacenter is often seen as the more complex end of the scope of green IT
  • Applying green IT to the desktop environment can represent a relatively easy project for companies

• Manufacturers can reduce costs through the adoption of green IT strategies
  • Both capex and opex can be reduced through investment in green IT
  • Energy costs remain a key element of green IT strategies

• The role of IT in wider green projects is firming up
  • IT asset management is a critical area for many manufacturing companies
  • The capture of green data is essential for companies looking to enhance green metrics
  • The role of leading green projects is often unclear within manufacturing companies

GO TO MARKET

• Hardware vendors are leading the pack in terms of green IT go to market refinement
• The market will look drastically different in five years
  • The role of IT will grow in broader green projects
  • There will be significant data concerns for manufacturers as green information levels escalate
  • Collaboration across the supply chain for green information sharing will drive demand for standards

• Targeting the right industry will be critical for technology vendors
  • The automotive industry is in turmoil and is not expected to generate a huge demand for green IT
  • The aerospace and defense industry has been surprisingly resilient in the face of economic pressure
  • Consumer goods manufacturers are being forced to invest in green IT due to their public profiles
  • Industrial manufacturers should also be shortlisted for technology vendors

• Regional trends are being driven by the economic crisis and government regulation
  • Europe represents the greatest current market for vendors
  • Asia Pacific is once again a mix of different countries with different priorities
  • The US will see significant growth, but only after regulatory reform takes place

APPENDIX

• Definitions
• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

FIGURES

• Figure: Three definitions of green IT
• Figure: Improved corporate image is seen as the most beneficial element of green IT pre-downturn
• Figure: A significant portion of surveyed manufacturers already have a green IT strategy in place
• Figure: Environmentally friendly asset retirement is a popular strategy
• Figure: View of green IT credentials for different vendor types, global, 2008

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