3 Ways Carbon Management Software Firms Can Capture The Market

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It's a challenge for every company with a software "solution" for sale: it's a solution, but for what? Are customers looking for an all-encompassing solution to a big problem, or a targeted solution for a small problem? Do they want an interconnected suite of software modules, with a common data model, common look-and-feel, and discounted price tag, or a small-bore program that will automate a currently manual process?

For the suppliers of enterprise carbon and energy management (ECEM) software, this age-old problem is especially challenging since the range of potential functionality is so broad, and the array of potential stakeholders, influencers, and buyers is so wide.

Consider the "word cloud" depicted in Figure 1 below, which shows a subset of the labels for such software.

And in parallel, the motivations of potential buyers of ECEM shown in Figure 2 below:

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Since most companies do not face cut-and-dry regulatory requirements for emissions reporting, matching up the motivations of the buyers with the functional scope of the product sellers is a time-consuming exercise of workshops, pre-sales consulting, assessments, and, inevitably, drilling a lot of dry holes.

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Bottom-Up Innovations That Change How IT Does Sustainability

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There is still another quiet day or two on the fresh page of my calendar, before the new year really gets going. Schools are still playing Bowl games, and the tree is still up (if brown-ish), so it must still be the holiday season.

And I have three topics I want to discuss before the 2012 agenda kicks into gear. These aren't really on the mainline IT-for-sustainability topic, but rather observations on changes underway in the IT industry, which may have some implications for companies' or individuals' sustainability efforts downstream.

Have you heard of Kickstarter? This is social media meets venture capital meets (very) early-stage entrepreneurs, tech and otherwise. Pretty much accidentally, I was pinged by and ended up contributing to two different projects which I will mention below. But check out the overall story at Kickstarter; it looks to me like a revolution-in-the making in terms of how new ideas will get funding and build community (increasingly those are one in the same).

The first project that found its way to my inbox is called Twine. It's . . . how to describe it? It's a little box that connects things to the Internet. Along with some software rules, the Twine box links internal or external sensors (temperature, moisture, motion, open/close, and the like) to the Internet via an email, text, or tweet.

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What's On The Horizon Of IBM's 'Smarter Planet'

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I spent some of this week at IBM's annual Connect analyst event, a cornerstone for understanding Big Blue's direction from the perspective of its fastest-growing and most profitable division.

And the direction is pretty clear: behind-the-scenes product integration is enabling tighter marketing and sales integration across what have been separate brands (Lotus, Tivoli, Cognos, etc.) in the software portfolio. Now the emphasis is on capabilities, and on tuning or packaging those capabilities into industry-oriented bundles such as "social business" or "smarter commerce."

IBM's Smarter Planet initiative is starting to have a positive impact in its software business. For the first couple of years since launch, Smarter Planet was principally a door-opener for IBM's business consulting teams, creating interest among clients in how IBM could help assess and improve business performance.

As those engagements have progressed and multiplied, the consulting organization has created "patterns" across them, problems that they run into repeatedly in a particular industry or geography. Those patterns are now being put into code for industry-specific solutions, for APIs that other software vendors can hook into, and other software artifacts. So Smarter Planet is starting to drive opportunity and revenue for the software group as well as consulting services.

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Are Sustainability Conferences Sustainable?

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That was my thought as I sat down to a lovely banquet dinner to kick off the Low-Carbon Earth Summit (LCES) in Dalian China a couple of weeks ago. I was lucky enough to be on the keynote agenda at this conference and was sharing dinner with local dignitaries from Dalian and some sustainability luminaries from around the world.

My fellow keynoters hailed from Germany, Brazil, China, Switzerland, and the US. And one of the topics over dinner was the coming round of sustainability conferences, COP 17 in Durban, South Africa, next month; the World Future Energy Summit in Abu Dhabi in January; and Rio+20 in Brazil next June, all part of what the UN has dubbed its "Sustainable energy for all" initiative.

Which got me to thinking: Is it sustainable for all these experts to be flying around the world attending sustainability conferences? The "industry" of creating more sustainable business, home, and public environments should be a role model.

All of us involved in improving sustainability should take a look at our travel schedules and see if cutting one or more of those long-haul flights can be part of our "carbon diet" for the coming year.

And we should pay attention to technology-enabled alternatives, like the VERGE virtual conference run a few months ago by my friends at GreenBiz. Videoconferencing, webcasting, and other technologies can help habitual conference-goers like myself to separate participation in an event from travel to the event.

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How The Sustainability Boom Changes Business As Usual For Green Suppliers

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How the Sustainability Boom Changes Business as Usual for Green Suppliers

Call me crazy, but there's a revival of interest in sustainability underway. Despite the Collapse in Copenhagen, the Demise of (US) Cap & Trade, and the ongoing Great Recession, companies around the world continue to invest in IT solutions to improve their operational efficiency and reduce their environmental impact.

My travels these past few weeks had me visiting with two sustainability practice leaders at large consulting/integration firms, the product heads for two of the leading energy and carbon management software providers, and the internal sustainability champions at a very large IT systems company.

In all five instances, folks were surprisingly chipper given the economic environment and its drag effect on sustainability spending. One of the sustainability practice leaders, for example, told me of their plans to grow from 150 people at the end of 2011 to 1,000 people three years hence.

What's going on? Here's my theory: Sustainability is becoming embedded in corporate behavior, metrics, and strategy. It's not a separate investment line item, a separate set of metrics, a separate organization . . . it's embedded into mainstream operations. As one of the software leaders put it, "Sustainability is sitting at the adults' table now."

What does that mean for these suppliers and their brethren? A big change in the way they go to market.

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3 (New) Predictions For The Future Of Carbon And Energy Management Software

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Eighteen months ago, I wrote a market overview report, "The Advent of Enterprise Carbon and Energy Management Systems." Returning from vacation last week, I was sifting through the recent news from suppliers in this nascent market, and thought it would be an opportune time to revisit the principal predictions I made in that report. It's actually something that we in the industry analyst world do not do often enough -- take a look back at our predictions and see how events have or have not conformed with our forecast.

So here goes:

  • Prediction No. 1: IT is the buyer of ECEM systems. "During the next few years [I wrote in December 2009] we believe that enterprise IT organization will emerge with the clear ownership role [for] ECEM systems. IT will bring its expertise in data analysis, data integrity, network connectivity, and overall systems architecture to bear on the corporate sustainability challenge. The faster that data sources for ECEM become more instrumented, more granular, [and] more real-time … the faster IT will move to the center of ECEM system evaluation, implementation, and operation."
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Three ICT Roadblocks In Realizing Smarter Buildings' Potential

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Three ICT Roadblocks in Realizing Smarter Buildings' Potential

The promise of smart buildings is cropping up across the ICT industry lately. Our calendar of vendor briefings and events is crowded with announcements of new products, acquisitions, and partnerships as ICT suppliers seek to connect their digital and analytic systems with the physical world of HVAC, security, lighting, and other in-building systems.

There are a number of goals that smart building projects hope to achieve, including:

  • Improving customers' bottom lines by reducing energy consumption and expense.
  • Improving employees' physical surroundings and therefore productivity and satisfaction.
  • Improving sustainability metrics and perceptions by baselining and then reducing corporate carbon footprint.
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6 Types Of Sustainability Software That Meet Any Company's Needs

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6 Types of Sustainability Software that Meet Any Company's Needs

It's been clear for some time that sustainability is moving from the periphery toward the center of many companies' strategic agendas, and that IT systems and software will play a crucial role in accelerating that movement.

But what's been missing -- until now -- is an overarching framework for understanding who the stakeholders (and buyers) of IT-for-sustainability (ITfS) systems are, what motivations and barriers they face, and which categories of products, services, and solutions can help them. With the research report that we will publish next month, Forrester takes a giant step towards providing that framework. Based on interviews with sustainability leaders at more than a dozen large global enterprises, we developed three company archetypes of sustainability adoption (see Figure 1):

 

Marketer: Improving branding and transparency with advanced reporting. Companies that fall into this category are either early in their sustainability maturity or just do what they have to do when it comes to regulatory compliance.

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Business Value, Not Regulation, Sells Sustainable IT

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Business Value, Not Regulation, Sells Sustainable IT

I meet with about three or four sustainability solution providers each week, getting an update on their customer and product progress and sharing our latest research plans and client inquiries in the IT-for-sustainability (ITfS) space. In the past few weeks, I heard again from vendors about their excitement for new regulatory mandates appearing on the horizon.

Whether it’s the UK government’s reaffirmation of its carbon-cutting targets or the U.S. Environmental Protection Agency’s renewed vigor on policing emissions, vendors seize on these activities as prospective catalysts for customer adoption of their ITfS solutions. Regulation, they say, will increase the urgency for companies to measure, manage, and report on sustainability metrics like resource consumption and resulting GHG emissions. And, as a result, put a knee in the curve of their revenue projections.

To which I invariably say, "Get real."

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Painting The IT Industry Landscape

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All of us in the technology industry get caught up in the near-term fluctuations and pressures of our business. This quarter’s earnings, next quarter’s shipments, this year’s hiring plan . . . it’s easy to get swallowed up by the flood of immediate concerns. So one of the things that we work hard on at Forrester, and that our clients value in their relationships with us, is taking a few steps back and looking at the longer-term, bigger picture of the size and shape of the industry’s trajectory. It provides strategic and financial context for the short-term fluctuations and trends that buffet all of us.

I am lucky to co-lead research in Forrester's Vendor Strategy team, which is explicitly chartered to predict and quantify the new growth opportunities and disruptions facing strategists at some of our leading clients. We will put those predictions on display later this month at Forrester's IT Forum, our flagship client event. Among the sessions that Vendor Strategy analysts will be leading:

  • "The Software Industry in Transition": Holger Kisker will preview his latest research detailing best practices for software vendors navigating the tricky transition from traditional license to as-a-service pricing and engagement models.
  • "The Computing Technologies of 2016": Frank Gillett will put us in a time machine for a trip five years into the future of computing, storage, network, and component technologies that will underpin new applications, new experiences, and new computing capabilities.
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