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1 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group Cisco’s Green Business Value Calculators Solutions to Reduce Greenhouse Gas Emissions While Also Reducing Costs Internet Business Solutions Group Innovations Team Brian Suckow, Christopher Reberger September 2009
2 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group Introduction to Green Business Value Calculators There are powerful economic, regulatory, shareholder, competitive, and customer trends driving an increased focus on green. However, some organizations are concerned that going green is going to increase their costs. Cisco has found that many of our existing solutions have a significant impact on reducing greenhouse gas emissions, while at the same time reducing costs. Cisco has developed Green Business Value Calculators that help customers quantify both economic benefits and green benefits. The projected green benefits have been validated by Domani, a leading environmental consulting firm, and are supported by case studies. Source: Cisco IBSG, 2009 The investment payback period for most customers is very rapid (many are less than two years), making these solutions highly attractive even where green considerations are not paramount.
3 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group All Models Have Been Validated Externally Domani has concluded: “… utilizes an appropriate methodology…” “… incorporates the most relevant, appropriate and widely accepted data publicly available…” “… does not quantify the actual emissions…”
4 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group Quick Tutorial on Using Calculators To activate the Calculators: Insure you have version 9 of Adobe Flash Place PowerPoint in full screen mode Mouse over the different tabs to move to different screens Mouse over the green balls to bring up a help screen To tailor an estimate to a specific organization Mouse over the Current Profile tab Enter any information that needs to be changed Enter information by clicking on the box, deleting existing number, and typing new number Mouse over the Impact tab Choose High, Medium, or Low impact, and where needed, choose the Investment option For Help, mouse over the green button for that page, and context specific instructions will pop up Optionally, you can fine tune the estimate using the parameters on the Notes and Assumptions pages To save the new information you entered as a Scenario (on your PC*): Click on the Scenario button, and a menu will pop up Click on the Save button, and a new box will pop up Type in a name for the Scenario and click on Save To display this scenario in the future, click on Scenario, then Load, and then highlight the name of the desired scenario, and click on Load *To send this scenario to someone else, please see the instructions in the Notes page below.
5 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group Overview of Solutions SolutionDescriptionEconomic Impact Greenhouse Gas Impact Connected Building Converge building networks & sensors, improve alignment with occupant needs Reduce capital in new construction Reduce energy and maintenance costs Reduced building energy (heating, cooling, lighting, etc.) per square foot Connected Workplace Create flexible office space tailored for group collaboration Improve productivity Reduce real estate per worker Reduce opex/worker Reduce square feet of building per worker Reduce energy per worker Remote Collaboration Enable personnel to have virtual meetings using high quality video and web conferencing Improve productivity Reduce cycle time Reduce travel costs Reduce transportation emissions Tele- commuting Enable employees to work from home Improve productivity Improve retention Reduce transportation emissions Many Cisco solutions not only have attractive economics but also reduce greenhouse gas emissions. Source: Cisco IBSG, 2009
6 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group
7 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group
8 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group
9 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group
10 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group Potential Impact on 10,000 Employee Organization GHG Emissions, 1,000 metric tons CO2e/year CostsBenefits Solution BeforeAfter (Medium) ReductionInitial $ M Ongoing $ M/yr One-time $ M Ongoing $ M/yr Connected Building Offices *4.2$7.8$0 $1.9 Connected Workplace Offices 23.6* $74.1$0$187.1$10.8 Remote Collaboration Business Travel $8.3$6.6 $0$23.4 Telecommuting Commuting Included in Remote Collaboration $0$10.2 Total $90.2M$6.6M/yr $187.1M$46.3M/yr *Note this value is after implementing Connected Building, but before implementing Connected Workplace, and is not part of the total. Summary - Combined Potential Impact of These Four Solutions: 27% greenhouse gas emission reduction Ongoing net benefits of $40M/yr on an initial investment of $90M One-time return of $187M in real estate Source: Cisco IBSG, 2009
11 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group Domani Validation Letters for Connected Building and Connected Workplace
12 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group Domani Validation Letters for Remote Collaboration and Telecommuting
13 Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group
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