The Danish branch of the American computer services company IBM wanted to be able to offer their customers a new way of looking at IT equipment – a product thought to be high-energy consuming and thereby not very environmentally friendly. They created a new service for their customers which focused on reducing the amount of electricity used on large servers and IT equipment.

IBM in Denmark started by evaluating their own performance. How could they reduce the amount of electricity spending? After scrutinising their own IT operations, they realised they could reduce their energy usage by 80%. IBM realised there was a great potential for them to develop a new business area.

The reduction in energy usage can be achieved by either re-programming the current systems, or replacing old wires and hardware with electricity optimising equipment, or a combination of both.

IBM has created a consultancy service which advises firms that use large computer systems and servers, and therefore consume a lot of electricity, on how to reduce their energy usage. In addition to selling IT equipment, IBM now analyses their customers’ needs and provides specific equipment. They have educated their employees to be energy consultants – re-defining their business model with regards to the products and services they sell.

The focus on energy-efficient solutions at IBM Denmark is redefining how they consider their products. IBM Denmark now develops “climate technologies”, not only information technologies. Today, IBM has various clients from all industries buying the products that the new “green IT” strategy has developed.

Source: Social Action, 2008

For more details on this case, contact FORA at FORA@newnatureofinnovation.org.