Presentation on The role of ICT in delivering a low carbon economy, at a Mackay Hannah Conference, Edinburgh, 26th September 2012.

1. The
role
of
ICT
in
delivering
a
low
carbon
economy.
Andrew
Mitchell
26th
September,
2012
Mackay
Hannah
Public
Policy
Conference

2. 1.
Low
Carbon
Hub
(High
School
Yards)
2.
Business
InnovaBon
ERDF
project
3.
Policy
(ClimateXChange)
Scotland’s
centre
of
experLse
connecLng
climate
change
research
and
policy.
CollaboraLon
between
16
research
and
higher
educaLon
insLtuLons
across
Scotland.
4.
ExecuBve
EducaBon
and
Skills
Investment
and
Entrepreneurship
workshops.
China,
India.
AssociaLon
of
Carbon
Professionals

3. Climate
Science
is
Clear
Climate
change
is
not
new,
but
it
did
wipe
out
life!
1.
There
are
natural
accumulaLons
and
releases
of
fossil
carbon,
as
deposits
of
coal,
gas
and
oil
are
created
and
destroyed
over
hundreds
of
millions
of
years.
Big
dump
55
million
years
ago.
2.
The
notable
increase
in
carbon
dioxide
in
Earth’s
atmosphere
since
the
Industrial
RevoluLon
has
been
caused
by
Homo
Sapiens,
mainly
by
our
sLll
growing
use
of
coal,
gas
and
oil.
3.
Earth’s
climate
has
changed
greatly
in
the
past,
oTen
rapidly,
long
before
we
were
around
to
light
so
much
as
a
camp
fire.
So
‘stability
is
not
an
opLon’
(David
Jenkins,
formerly
of
BP
and
Director
of
BHP
Billiton).
4.
You
can’t
argue
with
rocks.
ISBN-­‐10:
0521145597

4. Scenario
One
Scenario
Two

5. Let’s
get
on
with
scenario
two…
• Entrepreneurs
and
corporate
innovators
will
drive
change.
• Drivers:
wealth
creaLon
and
cost
savings.
• The
BT
transformaLon
story
as
an
example
of
unintended
carbon
savings.
• ICT
industry
carbon
footprint
is
big(ish)
2-­‐3
percent
of
global
emissions.
• The
BIG
prize
is
ICT
as
an
enabler
of
efficiency
in
every
walk
of
life.

7. The BT transformation story:
“Knowledge Management & ICT”
27th November 2001
Deming Learning Network Meeting
Aberdeen

8. Agenda
§ Some facts about BT Group plc.
§ About my team - stepchange.gov
§ The only constant is change (no more clichés, I promise)
§ A selfish view of knowledge management in BT
§ Disruptive Innovation - does size count?

9. BT Group facts
§ BT Group plc.:
§ British Telecommunication plc.
§ BT Ignite – international networks & solutions
§ BT Retail – residential & business relationships & channel to market in UK
§ BTopenworld – mass market internet
§ BT Wholesale – runs the BT Group networks, sells network capacity.
§ BT Affinitis – business & computing services
§ BTexaCT Technologies – research, development & consulting business
§ 137,000 employees (03/2001)
§ Procurement: £5bn, 17m transactions
§ £20.5 billion turnover (fy 2000/2001)
§ mmO2 plc. – new mobile company
§ Global & diverse operations

10. BT stepchange.gov
§ Part of BT Retail
§ 92 people
§ Innovating to transform public services
§ We break rules & generally cause trouble (constructively)
§ We generate business opportunity & develop new markets:
§ www.ukonline.gov.uk (first phases, now with new supplier)
§ www.businesslink.org (Small Business Service)
§ Public Sector Change Research (with Lancaster university)
§ International Centre for eGovernance (SCF, ITC & CEG)
§ Public Policy Forum & innovation thought leadership
§ Greater London Authority advisory
§ Mobility
§ Location Based Services
§ eProcurement
§ eDemocracy

11. Constant change
Employees in BT
BT Group Turnover (£m)
300,000
35,000
250,000
30,000
25,000
No. of Employees
200,000
20,000
£m
150,000
15,000
100,000 10,000
5,000
50,000
0
0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year Year
This is, in fact, a graphical representation
of knowledge management.
How did we do it?

12. Change fatigue
Activity-Based Costing * Adaptive Organization * Ambidextrous
Organizations * Benchmarking * Business Process Reengineering *
Commitment-Based Management * Competitive Capabilities *
Continuous Process Improvement * Core Competencies * Customer
Focus * Customer Loyalty * Cycle of Failure * Database Marketing *
Disruptive Technology * Employee Empowerment * Five Forces
Analysis * Flexible Manufacturing Systems * Holistic Management *
Horizontal Integration * Just-in-time * Learning Organization * Mass
Customization * Neural Networks * Quality Value Engineering *
Organizational Delayering * Paradigm Shift * Performance-Based
Compensation * Process Value Analysis * Radical Re-structuring *
Reengineering * Customer Relationship Management * Rightsizing *
Service Profit Chain * Strategic Benchmarking * Team Based
Management * Time-based Competition * Total Employee
Involvement * Total Quality Management * Economic Value Added *
Value Chain * Virtual Corporation * Zero-based Budgeting * Zero
Defections *

13. BT intranet beginnings
§ BT’s business case forecast average £57.5m/yr
§ The actual was £305m benefits for 1995/6
§ Since early 1995 there have been billions of savings
§ But… much improved customer satisfaction
§ And… European Quality Award
§ And… Completely different ways of doing business
§ And… Organisational Learning
§ And… Flexible working
§ And… The “nervous system”
§ And… Understanding (benefits)

14. Our corporate nervous system
KM principles:
Right time, Culture, policy
right place, no matter who you are and values.
right information. or where you are,
you can easily access
the people, information and
services you need to
do your job
Human design &
Business benefits

15. A selfish view of KM in BT
§ Really a personal view of KM in BT
§ ICT (IP) enabled knowledge management
§ BT.com
§ Intranet Home
§ BT Today
§ Teamconnect Directory
§ eGatekeeper
§ Intellact

16. BT.com KM inside & out
§ www.bt.com
§ 1.3m registered users,
doubled in 6 months
§ 15,000 logins/day
§ the “killer apps”
§ e-Billing (83k per day)
§ Friends & Family
§ directory enquiries
§ increasingly personalised

23. Disruptive Innovation
Applying new or novel technologies
through new or novel ways of organisation.
“enable a larger population of less skilled or less
wealthy individuals to do things once reserved for
specialists.”
(Prof’ Clayton Christensen HBS)

24. Disruptive Innovation
§ Usually very simple technology
§ Usually cheaper
§ Usually of lower performance/functionality
§ Is almost always disregarded by mainstream
§ It challenges existing wisdom & models
§ It creates, enlarges or makes more accessible markets
§ It makes what BT’s done cheap & easy!!

25. Summary
§ BT is big and complex
§ KM was and is at the heart of transformation
§ We started small
§ Growth brought some chaos
§ We have a long way to go
§ Pull not push
§ But are recognised globally for what’s been done
§ Disruption means size doesn’t matter

26. Thank you
Andrew Mitchell
Chief Innovation Officer
BT stepchange.gov
andrew.5.mitchell@bt.com
020 7778 4080

27. The
role
of
ICT
in
delivering
a
low
carbon
economy.
1. InformaLcs
&
Computer
Science
as
an
interdisciplinary
approach
to
understanding
climate
change.
InformaLon
&
CommunicaLon
products
and
services
as
enabling
technologies
in
the
transiLon
to
a
low
carbon
economy.
Reducing
the
carbon
footprint
of
the
ICT
industry
itself
(about
3%
of
global
emissions,
but
growing
rapidly).
2. Reducing
the
carbon
footprint
of
ICT’s
used
by
consumers
and
organisaLons.
3. ICT
as
enabling
technology
for
“dematerialisaLon”
and
“arLficial
intelligence*”
of:
– Land
Use,
Waste
and
Water,
Renewable
Energy,
Built
Environment
&
Sustainable
Transport,
Carbon
AccounLng
&
Finance,
OrganisaLon
and
OperaLons
Management.
*
ArLficial
Intelligence
(i.e.
what
we
mean
by
“smart”
grid
/
ciLes
/
buildings
/
logisLcs
Sub
themes:
– Green
ICT
for
CiBes
&
Built
Environment
– Green
ICT
for
People
– Green
ICT
for
OrganisaBons

28. The
role
of
ICT
in
delivering
a
low
carbon
economy.
ScoSsh
InformaBcs
&
Computer
Science
Alliance
hlp://www.sicsa.ac.uk/themes
• Next
GeneraLon
Internet
• MulL-­‐modal
InteracLon
• Modelling
and
AbstracLon
• Complex
Systems
Engineering
SICSA
as
an
interdisciplinary
group
also
brings
deep
relaLonships
with
sociologists,
economists,
designers,
other
physical
sciences
and
biotech.

29. SICSA
potenLal
applicaLons
in
renewables:
Next
GeneraBon
Internet
Smart
Grids,
connecLng
and
opLmising
all
renewable
sources.
The
network
layer
between
power
distribuLon
and
the
Smart
City
/
Built
Environment.
LogisLcs
and
supply
chain
(enabling
technology).
Modelling
and
AbstracBon,
MulBmodal
InteracBon
SimulaLon
and
surveying.
ForecasLng
wind,
wave
and
Ldal
capacity.
Modelling
and
analysing
renewable
device
performance,
dynamics,
structural
load
and
faLgue.
Complex
Systems
Engineering
Scotland’s
new
power
grid
is
one
large-­‐scale
complex
system
made
up
of
numerous
complex
sub-­‐systems.
For
example
a
single
wind
farm
or
a
fuel-­‐cell
device
are
complex
systems
themselves.
LogisLcs
and
supply
chain
(management
science,
socio-­‐technical).

30. Employees in BT
Scenario
One
Scenario
Two
300,000
250,000
No. of Employees
200,000
150,000
100,000
50,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
BT Group Turnover (£m)
35,000
30,000
25,000
20,000
£m
15,000
10,000
5,000
BT
transformaBon
story:
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Year
1. Doing
more
with
less.
2. ICT
enabled
dramaLc
change.
3. Does
not
mean
mass
unemployment!
4. In
1992
the
driver
was
corporate
survival
(not
emissions!).
5. In
2012
the
same
can
apply
to
reducing
carbon
emissions.

31. Thank
you!
Andrew Mitchell
Business Manager
Edinburgh Centre for Carbon Innovation
15 South College Street, Edinburgh, EH8 9AA
Email: andrew.mitchell@edinburghcentre.org
Web: www.edinburghcentre.org
Twitter: @EdCentreCC