The following is an interview with Joey Benadretti, President of SYSPRO USA, a provider of visionary, pragmatic ERP software for manufacturing and services. Benadretti addresses such issues as Green IT, ethics and sustainability in IT, and the targeted manufacturing industry.
There is a lot of skepticism in the marketplace, that the budding green IT movement is nothing more than a clever marketing ploy. Why do you think Green IT matters?
Green is about community, about business responsibility, and about being a good caring corporate citizen. But most of all it's about sustainability. As companies, we can do many things to save resources given green initiatives. It is important to do something…Green is about sustainability. Despite the fact that many are riding the green marketing wave, I feel companies do care… And it is this subscription to being a good corporate citizen that will ensure that green concepts and efforts stay around long term.
SYSPRO won one of the 2009 Green Supply Chain Awards, highlighting companies that stand out for their projects' minimal environmental impact and sustainability What was the basis for the SYSPRO award?
SYSPRO started with green long before the concept became fashionable. We have a plastic cut shape distribution company as a customer who came to us with a problem. They could not manage their remnants and scrap, had too much invested in remnant inventory that they could not control and were concerned about the effects of these remnants on the environment when they had to be disposed of. The result was the development of the SYSPRO Material Yield system to overcome these pressing problems. The SYSPRO Material Yield System is a sophisticated inventory control system... It manages remnant inventory that has multiple dimensions, such as metal and plastic tubes, rods and plates or sheets. The value of this development was a significant benefit in the reduction of scrap tainting our soil and water supply. SYSPRO has been recognized by the Governor of California for this initiative in green and sustainability.
Why does 'sustainability' matter in the wake of a recession? Do your customers see it as a way to control costs, as well as to do the right thing? Do you see it as giving SYSPRO a competitive edge?
I think 'sustainability' has numerous benefits and has an extra marked appeal given rougher economic times. Certainly, companies are trying to save money as that is important. At the same time, Corporate America gets to lean up operations a bit more, increase profitability, reduce wasting valuable resources, while at the same time doing the right thing and being a good corporate citizen.
Do ethics matter in the sales cycle? While you seem to be on a holistic mission, what is the ROI of "sustainability"? Is this a notion of saving the planet, or just to save and make a whole lot of money?
Ethics always matter. We have an ethical obligation and responsibility being a part of the business community. At the same time a business is there to serve and to make profits, but there is an ethical approach to making money. Making money is not an evil thing - it creates jobs and a pathway for people to flourish. Unfortunately, some competitors of ours have adopted the 'sell at all costs' attitude...Being holistic and sustainable are one and the same. In order to have a sustainable long term view on anything you have to be ethical in that outlook.
In Europe many environmentally friendly policies have far outpaced the U.S. -- a number of major financial firms and vehicles have set up funds around green IT investments. Is the US lagging behind? And if yes, why?
The sheer size of the US economy may hide our achievements and green initiatives. While in every economy there may be some companies that leverage and prosper inadvertently from policy, the U.S., I believe, has lagged at times. But today, in many ways, (it) is leading the way with regard to green.
Where do you see the market in 10 years from now? Is sustainability going to be an IT selection / purchase criterion, independent of ROI?
In 10 years the relationship between green and IT will be inseparable. I say this because without an effective ERP system that delivers visibility, companies will not be able to assess their green scorecards and gauge their effectiveness…Without IT, companies will have no visibility into their effectiveness, both from a green and operational perspective. The new release of SYSPRO ERP software, SYSPRO 6.1, is an excellent example of the merging of sustainability and IT. SYSPRO 6.1 gives mid-market manufacturers and distributors a fully integrated solution that enables greater insight into their operations with all the tools needed to “lean” and “green” their operations as well as enhance their competitive market positions.
Where are Green IT requirements coming from, are government mandates playing an increasing role?
I feel Green IT requirements are driven by three aspects. Firstly government mandates, plus legal and compliance drivers. Secondly, both social and business or marketplace pressure to be green in order to remain competitive. And, thirdly, those companies that just believe that it's the correct way to go. Government mandates are often the catalyst for a greater drive towards green, and certainly if you look at legislation, government funding and the educational establishment, it is apparent that Green IT is driven by both pressure and consumer demand. Unfortunately, green initiatives cost more, but they are essential to the availability of resources on this planet.
Is web-based computing the key to Green IT?
Web-based computing is just a platform. It is interesting that they say one in three Americans has watched a movie on their mobile phone. It is pretty obvious that the cellular platform is gaining in momentum and is at the nucleus of delivering value, irrespective of the platform. IT companies have to be forward thinking and introduce functionality that allows their customers to compete in the global marketplace. Visibility, enterprise performance management, executive views, analytics -- these are the keys to Green IT. If you cannot asses your achievements in cost and resource savings, then what is the use of the journey?
How do you measure the carbon footprint of ERP software?
Software does not have a traditional carbon footprint. I have, in the past, proposed that the true carbon footprint of ERP software should be calibrated by the value that that the software delivers to its customers.
