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  • How SAP Made the Business Case for Sustainability

    For more than a decade, Peter Graf, a computer scientist by training (Ph.D. in artificial intelligence), has focused on marketing at SAP, the business management software company. Since March 2009, Graf has had a new role: as SAP's first-ever chief sustainability officer for the company leading a global team that oversees all sustainability-related initiatives, from the creation of solutions that enable sustainable business processes for SAP customers to SAP's own sustainability operations, including key social, economic and environmental programs. Graf's first task as an inaugural CSO was one of perception. "I had to be very careful not to come across as a marketing show," he says. "That means when we talk externally, the initial conversation is all about SAP as a role model." Once SAP established their credibility based on their own initiatives and metrics, using their own systems, they were able to communicate to customers that they too could reach their sustainability goals using SAP's systems. Graf's second, and bigger task, was to grapple with internal corporate strategy. He had to make the business case for sustainability-driven actions -- and the case for trying to build SAP into a sustainability role model -- to SAP's own board of directors. His case was built on compliance, resource productivity, market opportunity, energizing the work force, and sustaining a business model. In this interview, Graf discusses how he made the sustainability case internally, what the payoffs have been and how SAP customers have -- and haven't -- responded.

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  • Best Practices for Industry-University Collaboration

    To extract the most business value from university research, companies need to follow seven rules.

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  • Putting the Science in Management Science

    MIT's Andrew McAfee says that evolving technology and the data deluge can enable companies to act smarter.

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  • Innovation Isn't 'Creativity,' It's a Discipline You Manage

    Esther Baldwin of Intel explains how IT tools, applied to the innovation process, can fuel business growth.

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  • How Reputation Affects Knowledge Sharing Among Colleagues

    What role does reputation play in a R&;D worker's decision whether or not to share knowledge with a colleague? To study this question, the authors surveyed more than 200 scientists in 63 different pharmaceutical companies. The authors' findings suggest that, even among R&;D workers in the same company, information is not always shared freely. Instead, a potential knowledge source's assessment of a knowledge seeker's reputation affected whether or not information was offered. The authors found that a variety of factors affect scientists' assessment of a colleague's reputation. Not surprisingly, the duration of two parties' past interaction was positively related to the likelihood of current knowledge sharing occurring between them. Also, proximity influenced how positively reputations were perceived. But, if the person seeking information was already indebted to the potential knowledge source, knowledge sharing was less likely to occur. In addition, the study found that scientists are more likely to share information with a colleague in the same company if the know-how is unique and vital to accomplishing a task.

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  • Outcome-Driven Supply Chains

    Supply chains should be designed and managed to deliver one or more of six basic outcomes.

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  • Why Forecasts Fail. What to Do Instead

    Managers need to learn from history about what they can and cannot predict, and develop plans that are sensitive to surprises.

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  • One CEO's Trip From Dismissive to Convinced

    In 1994, when Interface Inc.’s founder and CEO Ray Anderson began to think about his legacy, it made him uneasy. Deep down, Anderson realized that the business model of the commercial carpet manufacturing company he had founded 20 years before was based on “digging up the earth and turning petroleum and other materials into polluting products that ended up in landfills” — not something he wanted his grandchildren and great-grandchildren to remember him by. So at age 60 Anderson broke with the old model and began anew. Standing up to naysayers (whose ranks included associates, suppliers and Wall Street analysts), he set out to transform Interface from a traditional business built on consumption and waste to one whose focus — that is, beyond profitable growth — would be zero waste and restoring the earth. Since the start of the journey, Anderson and his associates have confronted technical barriers that no one could have anticipated. But inch by inch, kilowatt-hour by kilowatt-hour, recycled pound of carpet by recycled pound of carpet, Anderson’s vision has moved closer to reality. In addition to becoming increasingly efficient in its energy and materials usage — for example, 89% of Interface’s global electricity and 28% of its total energy come from renewable sources — Interface prides itself on its ability to turn an increasingly large percentage of its carpet into new product. It is also proud of the influence its sustainability efforts are having on other companies. This article presents a timeline showing how Anderson’s “mental model” changed and how he and his company moved along the road to sustainability.

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  • Set Up Remote Workers to Thrive

    Companies need to help telecommuters overcome workplace isolation and limited visibility.

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  • The Mini-Cases: 5 Companies, 5 Strategies, 5 Transformations

    Sustainability is the buzzword du jour, but how do you actually go about achieving it? Well, it’s clear there isn’t a one-size-fits-all strategy. Look at five companies, and you will see five different paths, each particular to a specific company’s market and problems. Take Nike Inc., whose brand is synonymous with cutting-edge design. Redesigning the athletic shoe to cut down on material became a core element of its approach to reducing waste. But what works for Nike might not exactly work for a company like start-up electric vehicle supplier Better PLC, LLC, which is rolling out electric car recharging stations. How does it pursue sustainability? By identifying the countries most receptive to its cutting-edge idea. General Electric Co. takes yet another approach, seeing sustainability not only as a cost-savings measure within the company (cut energy use, and emissions and costs go down) but also as a solution to sell to other companies–hence, its $17 billion ecomagination unit. Mining giant Rio Tinto, in turn, looks at it through a social lens, while Wal-Mart Stores Inc. sees sustainability as a challenge to revamp the practices of its more than 100,000 suppliers. In short, sustainability is less a target than an approach, which is why it is continually being refined. As companies ramp up understanding, they also push the envelope of what can be accomplished. Though it takes investment and commitment, the rewards are seen in cost savings, new products, customer engagement and employee commitment. In this way, sustainability becomes a competitive advantage.

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