Going Green is a Means of Gaining Competitive Advantage

Although green technology is not new, the recession has made companies realise that going green can be a means of gaining competitive advantage. Not just organisations, but governments and consumers too are adopting green measures, giving a boost to environmentalism.

Different IT companies are taking significant steps in making their processes more environmentally friendly. Two important factors driving companies to go green are energy savings and to comply with regulations. The increasing use of servers and the expenses of keeping them cool results in high-energy consumption for IT companies. It is therefore that leading names such as Fujitsu and Cisco are developing ways to maximise their server utility and minimise their energy consumption.

These companies are increasingly adopting virtualisation, which refers to partitioning servers to help multiple environments. The use of cooler and more powerful chips is driving to develop energy efficient servers. These moves are enabling companies to become carbon neutral by reducing their energy consumption.

Going green involves change along the different levels of organisation’s value chain, such as R&D, supply chain and manufacturing. Change in a company’s R&D approach is essential because green ventolin online products have to be manufactured using different processes to ensure cost-effectiveness. Nokia and Sony Ericsson are prime examples of this, as they have been looking at issues such as recyclability and avoiding the use of hazardous material. The early adoption of green technology has enabled them to eliminate the use of lead and other hazardous material from its manufacturing process.

Even companies in the communication technology are undertaking environment friendly initiatives to save costs and achieve competitive differentiation. Companies such as Samsung, Motorola and LG have developed mobile phones that work on solar energy and are made using recycled plastic. Mobile network providers are also using green technology, mainly because of advances in network platforms.

One of the main reasons companies are setting up green processes is the presence of genuine market opportunities. Governments are encouraging the use of green products and services. Moreover, consumers worldwide are taking notice of how they can reduce their impact on the environment by buying green products. Thus, companies that can prove a return on investment to customers are the ones benefiting from the adoption of green measures.