Green It and Business Strategization for Epson Australia - Essay Example

Executive Summary The field of green IT and business sustainability has been progressive over the past decade as businesses have become aware of the overall advantages of adopting an environmentally sustainable business model. The present project focuses on the performance of Epson Australia in taking strong measures to conform to the principles of Green IT and generates solutions to problems in this arena of safe disposal and sustainable practices. Retail and consumer product brands recognize the need to resort to environmentally friendly practices, it comes as little surprise that companies. Green IT or green computing is an important offshoot of environmental sustainability drive that began in 1992 when green lighting was initiated by the Environmental Protection Agency. Epson is an established brand with ample recognition in the global market. Therefore, any renewal in business strategy cannot be one that is limited to a small a few aspects of the business model. The report finds that developing a new business strategy based on Green IT practices for Epson requires a roundabout evaluation of its existing business model. The model is highly optimized towards environmental sustainability, and addition of strategies, which have not been considered as relatable to this perspective until date. It can combine the innovations with scalability and innovative branding strategies, thereby increasing demand for recycled products and getting rid of the stock build up in its warehouses. These include introduction of dynamic capabilities in the management, addition of new manufacturing and operating units in low-density markets. It will help to back up the Green IT initiatives of the company by focusing on control of materials used in all aspects of product delivery starting from production to shipping, and using Teece’s business model of benefitting through sustainable innovation. HR management and strategy building play a main role in determining how quickly a new product or brand could get recognition and favorable response in the market. Paying special attention to quality in the supply chain management as done in UK would help Epson grow as an environmentally sustainable brand in Australia. The main disadvantage in coming up with the Teece model of combining business strategies into business model is possible only in capturing value strategies. To achieve practicality of the model the company has to increase umber of hiring in quality control departments, launch new products with new business strategy, open new offices in several low-density markets. On the other hand, theoretical limitations can be combated by increased research and innovation strategy based on development. The conclusion elaborates on the key concepts of the model, strategies and factors that limit or facilitate the success of the implementation process. The report concludes with a reflection on the possibility of rolling out the plan. 1.0. Introduction The success of a business is measured using many tools, which are both quantitative and qualitative in nature. With the growing awareness of environmental impacts of massive industrialization and growth in the IT sector, governments have realized how crucial it is to thwart the harmful effects of unsolicited disposal of gadgets and hardware used in offices and mills. Epson is a global brand that provides computer associated products like printers, scanners and projectors to consumers worldwide. End-of-life products of these gadgets include cartridges and accessories that have negative impact on the soil, flora and fauna of the regions that they are dumped in. The present project focuses on the performance of Epson Australia in taking strong measures to conform to the principles of Green IT and generates solutions to problems in this arena of safe disposal and sustainable practices. The report that we bring-forth here is a compilation of studies that can help in the present situation of Epson Australia wherein achieving business sustainability in spite of dedicated and conscious eco-friendly drives has become difficult due to lower sales in recycled products section of products. The objectives of the paper is to use theories and deductions published in the last four years by scholars of business and green IT fraternity, and references were drawn from journal databases like Elsevier, Proquest, Wiley Online Library, and SpringerLink. Journals used include the Journal of Business Ethics, Harvard Business, Journal of Product Innovation Management and the like. The report comprises a background study followed by recommended strategy which is then followed by discussion and recommendations. 2.0. Scope of Literature Review The report present a blueprint design of how the Green IT utilizes and builds on available business models to achieve desired objectives. This section discusses the sources used to present the review of the concept to be used. It gives a list of the journals by name, location or site and the journal name. It gives illustrations on the topics discussed in detail thereafter. Serial no. Keywords Database Journal 1 Green IT/ Green Marketing Proquest Allied Academies International Conference 2 Sustainability Proquest Harvard Business 3 Business Model Proquest Harvard Business 4 Teece Model Elsevier Long Range Planning 5 Product Innovation Management Wiley Online Library Journal of Product Innovation Management 6 Supply Chain Management Supply Chain Management: An International Journal 7 Sustainable Development MIT Press Journal of Business Ethics 3.0. Background Treece model After a critical analysis of innovations, David Teece formulated the Teece model which primarily focuses on the impact that imitability and complementary assets have on the eventual usability and success of an innovation. According to the model, even after meeting the necessities of novelty and enabling action, an innovation must have a positive impact in that it results to profitability if the innovator decides to implement it. Imitability, which refers to the ease with which competitors can duplicate the innovation, and availability of compliment assets determine who benefits from an innovation. Apparently, if imitability is high and complementary assets freely available, an innovator will not easily make many out of their innovation. To profit from an innovation, an innovator should strive to reduce imitability of their innovations and strive to control important complementary assets pertaining to the innovation. The model insinuates that executives recognize that the world is full of challenges with competitive environment. To avert and set business at a stable position innovation is necessary yet insufficient. Added to the art of innovation is reinventing processes and adopting practices best suited for success. The model ensures that services and products delivered are quality. The model proposes the inclusion of the human resource into the development of tangible factors. The model has dynamic capabilities of sensing, seizing and giving shape to opportunities and impending threats. Green IT The need to have Green IT in every stage of business development brings in important modifications to the existing business model of a company (Chou & Chou, 2012). Epson Global has always used a localized business structure to drive its endeavors. The company ensures that every nationalized branch has an initiative in Green IT practices of the country. In Australia, Epson is the founding member of Techcollect Program, which does not allow end of life components of computer-associated gadgets to be disposed randomly. The company collects back these components like cartridges and finished products and transports them to electronic recycling sites either in selected locations in Australia or in its bases in other countries (Battistella & Nonino, 2012, p. 129). The company regularly takes part in the Cartridges 4 Planet Ark program and recycles ink and toner cartridges for environmental safeguarding. Overall, Epson takes all measures to conform to the Product Stewardship Act of 2011 that was passed by Australia’s Federal government and went into implementation by 2012. The main challenges of Epson Australia in hitting the sustainable business model is creating the right balance in recycling drives and fresh finished product cycles. With Australia’s large land areas and controlled product demands, the saturation point in the market makes it impossible for Epson to use all its recycled gadgets in a single year, thereby calling for export or storage of these recycled products. This is causing a build-up of stocks that is unable to be released due to saturation in demand in the market. 3.1. Detailed Data and Findings With major retail and consumer product brands recognizing the need to resort to environmentally friendly practices, it comes as little surprise that companies like Lipton Tea announces 100 percent sourcing of tea from those estates which have been declared sustainable. Similarly, Ford has launched soy based seat cushion foam and SC Johnson has started using a green checklist to scrutinize ingredients (Goodall, 2012). With computer products, the scenario is different. Developing computer accessories, which are built out of environmentally sustainable materials, is a distant probability now, but ensuring that the waste dump does not harm the environment is possible. In Epson’s case, the transportation and collection of end-of-life computer goods and delivery of fresh finished products are aspects that play a crucial role in its contribution to environmental sustainability. However, with the Australian market it showing a growing interest in PC free printers and inkjet printers. According to the Global Industry Analysts, the world’s printer and copier industry in Australia is expected to grow beyond $21 billion (Goodall, 2012). Digital photocopiers are also under high demand these days. Therefore, packaging and disposal of products is as big an issue as short life cycles of products is. Epson Global has developed a Vision 2050 to ensure that all its measures are optimized towards environmental sustainability and conservation. In a gist, they have developed an approach that focuses on designing of environment friendly gadgets, which are small and light, have reduced power requirements and have extended service life. Epson ensures that energy conservation levels certified by standard assessments like EnergyStar are present on all their products except for ink and toner cartridges. The design of products is kept small and from purchasing to shipping, a quality control is maintained by removing all banned materials from being used. 3.2. Background regarding sustainability and Green IT It has been long argued that energy hunger of computers and desktops could be lowered through Green IT practices (Goodall, 2012). Green IT or green computing is an important offshoot of environmental sustainability drive that began in 1992 when green lighting was initiated by the Environmental Protection Agency. Businesses have been aware that costs are cut down with such an approach where gadget materials that are recyclable and have minimal environmental impacts cost less and also have reduced energy requirements. The IT industry today realizes that a lot of sustainable business strategy development bases its success on the use of Green IT at various stages of the business model. A major environmental hazard that Green IT suitably resolves is the dumping of cartridges in landfills all over the world. Each inkjet cartridge requires a minimum of 450 years to decompose in nature, while a couple of cartridges built with plastics would require 1000 years to decompose. Today, green marketing is an integral part of brand awareness wherein businesses inform consumers about their conforming to sustainability standards. 3.3 Justification of the Sustainability of IT strategy Epson has always depended on its market creator business model and it is only lately that it has assumed a similar role in propounding sustainable practices in all its branches around the world. There are many sustainable business strategies that have been tried and tested in the past. The singular case of Epson Australia can be easily solved using the Teece Model of profiting through technological innovation (Teece, 2010, 183) and a sustainable strategy inspired by the model. David Teece is an economics professor who has combined the impacts of different business models to develop a model best for green IT. We suggest the use of the same in solving the many challenges that Epson Australia faces in reaching the pinnacle of environmental sustainability in its operations. Being a market maker, which recognizes buying potential in existing and new markets and releases products according to the demand, Epson has always played an essential part in green IT initiatives. However in order to develop a sustainable business strategy that ensures that build-ups are not a hindrance to revenue, the company needs to use the following factors in its production ability to renew its business structure (Goodall, 2012). The approach that would help Epson at this stage would be profiting from innovation in the technology sphere (Zott et al, 2011). It can combine the innovations with scalability and innovative branding strategies, thereby increasing demand for recycled products and getting rid of the stock build up in its ware houses. The main tenets of the strategy would be as follows: Build a Viable Model: Epson’s existing model is a strong one that emphasis on achieving 90% diminutions in carbon dioxide emissions by 2050. Its goals in 2015 include production, products and new perspectives along with eco-friendly designs and education. The new strategy that we suggest adds the following factors into the strategy. Research and Innovation: Building better designs, reduced energy consumption during product manufacture, and longer life cycles should be the main goals of the research undertaken now on. New Product Launches: Develop quality products and release them into the market using value adding strategies that make an impact in changing consumer working styles. New Markets: Australia has a growing market in its lesser known countries and Epson should make a foray into those areas. Opening up new branches would be a wise decision and would increase hiring capability of Epson. Large Scale Up cycling: Recycled products and up cycling through would help Epson recover its losses from stocks build-up. To make the innovation a success, Epson will utilize the Teece model show below; 3.2. Analyses, interprets Unlike small businesses or entrepreneurial ventures, Epson is an established brand with ample recognition in the global market. Therefore, any renewal in business strategy cannot be one that is limited to a small a few aspects of the business model. It has to be a multidimensional strategy building approach. However, given Australia’s Federal set-up, strategies that help small businesses like up cycling and new product launches are sure to help Epson reach a certain extent of sustainability. However, the frequency of new product launches more interest in research and innovation of computer associated products and end-of-life products, up cycling on a large scale and better foray into international markets would help Epson Australia watch a more sustainable business growth that what is at present (Grimmer & Woolley, 2012). 4.0. Discussion 4.1. How the strategy will help Our suggestions and new strategy build up for Epson Australia are based on safe and sustainable practices towards business development. Adherence to a safety culture at workplace is a great way to fuel sustainability in the workplace. It is well known that employee trust (Ho & Wilson, 2013) and brand reliability grows when alongside quality products, a sustainable economic and HR strategy is in place. Apparently, out of the many challenges of innovating to build a sustainable business environment, dynamic capabilities, HR management and strategy building play a main role in determining how quickly a new product or brand could get recognition and favorable response in the market. Barney (2001) recognizes that proper certification of technological products is the best way to introduce sustainability in your marketing strategy. Focusing on Epson Australia, it can be said that increasing the number of hiring of quality control officers who check for environmentally banned materials and eliminate them is going to have a very positive impact on the sustainability of the business strategy (Schaltegger et al, 2012). Paying special attention to quality in the supply chain management as done in UK would help Epson grow as an environmentally sustainable brand in Australia. Keeping the focus on dynamic consistency is only going to help in building a longstanding strategy which can help the brand grow financial strong. Thus the strategy proposed by the present study is going to help Epson build around and up cycle its existing products and get rid of excess recycled products, the transportation and storage of which are causing economic slog in the company. By controlling important assets and using advanced technology, Epson will make it harder for any competitor to benefit from the invention and potential substitutes will be eliminated. 4.2. Limitations There are a few limitations to this report since combining business strategy and HR management is a highly speculative thought as MNCs operating in different countries have to adopt different HR strategies in each country to address localization problems (Yang & Li, 2011). Also, the scalability of the plan is yet to be tested as the offices and factories of Epson are situated in small numbers in different strategic locations of Australia. It is desirable that more number of branches/offices be opened in lesser populous markets of Australia. The Teece model of combining business strategies into business model to achieve better traction in the market is possible only when the go to market and capturing value strategies have been defined. This is again something that goes under speculation since Australia’s major concerns of health and environmental hazards are yet to judicially pronounce. The only law in place is the Product Stewardship Act (2011) which is a late start for Australia (Grimmer & Woolley, 2012, p. 28). Empirical analysis of the planned approach is missing which makes it difficult to predict whether the theoretical strategy will develop away from the business model (Demil & Lecocq, 2010, p. 122) when put to practice. 4.3 And where from here! Epson is a global brand with competition from companies like HP, Sharp and Kyocera in local markets. HP holds a Blue Angel certification for its inkjet printers. Epson should aim to achieve that for its set of printers too. Further, on, it should take over the Australian market with all its resources and up cycle, existing sustainable product designs and builds a business strategy that redefines its image to the Australian buyers. It is not important to launch new products, as it is important to define them (Teece, 2010, 183; Hall et al., 2012, p. 191). 5.0. Recommendations 5.1. Practical Recommendations In terms of practical recommendations, it would be difficult to contain all of the above suggestions in finite number of points. However major processes like HR activities, Strategy development and business development have direct practical implications which are as follows: 1. Increased Number of hiring in Quality Control Departments of the company to ensure and reinstate the adherence to eco-friendly standards of product designing and development in all shipments of the company. Taking in more local people will automatically have a positive impact on the brand’s presence. 2. Launch New Products with new Business Strategy and combine the go to market with the capturing value aspects in a way that is new and attractive to the buyers. Use of innovation in design and performance of the new products would be of additional help in attaining business sustainability. 3. Open New Offices in several low density markets in Australia which have been neglected prior to this in order to generate renewed market interest and increase sales of stacked up recycled products. 5.2. Theoretical Recommendations Amongst the theoretical recommendations for the new strategy proposed by us here are the main tenets: 1. Increased Research and Innovation to improve the overall experience and lifestyle of the user 2. Complete understanding of Dynamic Capabilities at the management and workforce levels to bring in multidisciplinary innovation into the product technology. 3. New HR strategy based on development of a deep understanding of market impression about the brand and developing HR activities to bring in a positive internal followed by external response. 4. Thorough understanding of profiting through innovation in technology model proposed by Teece (2010) 6.0. Conclusion It would be worthwhile to conclude from the above study that innovating towards business sustainability is a multi-dimensional process that requires businesses to understand key factors that are present in their business model and strategy. These factors either contribute or take away value from the strategy and success of the sustainability drive, and therefore, must be manipulated accordingly. In case of Epson Australia, the reliability of the brand as a global provider of computer associated gadgets belonging to printer and copier industry is beyond doubt. The Australian market offers a steady inflow of revenue and recyclable collections to the brands. However, the balance between amount of recycled good and amount of finished products in demand is not present resulting in stock build-up and pulling down financial security of the company’s operations since an important amount of funds is diverted to storage and transportation of recycled goods in and to markets that hold buying potential for them. In order to overcome this unhealthy economic downturn of outflow and demand of recycled goods, Epson has to strategize its existing business model and concentrate on increasing number of offices in unexplored markets of Australia and man power to reinstate its quality control mechanisms in the market. As a result, any new product or recycled product will have a better opportunity in receiving favorable feedback from the market. Sales would be further bettered if the company utilized a profiting from innovation in technology (Teece, 2010, p. 39) used to design its printers and copiers, build more double sided printers to make the most of available resources and ensure that a Blue Angel certification is obtained for its globally popular inkjet printer series. Such innovations will further improve their brand efficiency in the market. 7.0. My Reflections About This Assignment My journey of writing this report was both interesting and fantastic as I learnt the practical side of the theory that the assignment is based upon. I got a chance to analyze a company of the magnitude of Epson Global and study possibilities in its existing business strategy that could be modified and bettered to attain faster goals in attaining business sustainability. It was difficult at times to understand the implications of a certain theory in the midst of studying a paper, but the commonality of theoretical roots made it easy for me to overcome these infrequent occurrences and build skillful thinking in this topic. From research, through writing, I was constantly reminded of the impacts of the decisions I make and share through my submission and how it could affect the working of a brand as major a leader as Epson. However, the task was less daunting owing to the fantastic business model that Epson Global already has and to address problems within the system and generate recommendations was easy when the modifications required were only in the context of strategy building. On the whole, it was a great experience to grow as a writer and a business analyst through this assignment. Thanks. References Barney, J. (2001). Firm Resources and Sustained Competitive Advantage. 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