Question

You are a new buyer in the Purchasing organization of a large multinational firm with operations in North America, Europe, and Asia. One of your responsibilities includes working with the information systems organization to acquire the best value single-user portable computers for the firm. The firm is on a three year replacement cycle for these devices and each year acquires roughly 7,000 portables and associated accessories at a cost of about $10 million. As you review the previous year’s purchasing recommendation, you notice that the choice of hardware vendors was based solely on getting the most powerful computers at the lowest possible price. There was no consideration of the environmental impact of these devices, their energy efficiency, and the level of hardware maintenance effort required to keep them running. Should you attempt to introducethese factors into the purchasing decision? You are concerned that the others involved in the selection of laptop vendors may ignore your suggestions and view you as a newcomer critical of previous practices. Should you drop this line of thought? If not, what is the best way to proceed to ensure these factors are given consideration? Give your thoughts after analysing the situation rationally which must reflect your in-depth knowledge and concerns about green computing.

Answer 1

Considering your role and the potential benefits of incorporating environmental impact, energy efficiency, and hardware maintenance into the purchasing decision for portable computers, it's worth pursuing this line of thought. Here's a rational analysis of the situation:

Importance of Environmental Impact: In today's global landscape, environmental sustainability has become a significant concern for businesses. As a multinational firm, demonstrating a commitment to green practices can enhance the company's reputation, meet regulatory requirements, and attract environmentally conscious customers and partners.

Energy Efficiency Matters: Energy-efficient devices can significantly reduce operational costs over the three-year lifespan of the computers. Lower energy consumption translates to reduced electricity bills and a smaller carbon footprint, aligning with the firm's sustainability goals.

Reducing Maintenance Efforts: Considering hardware maintenance in the decision-making process can lead to better long-term cost management. Devices with better build quality and reliability may require less frequent maintenance and replacement, saving both time and money.

Approach for Implementation:

Education and Awareness: Begin by educating stakeholders about the benefits of considering environmental impact, energy efficiency, and maintenance efforts. Present data and case studies to emphasize the positive outcomes.

Collaborative Decision-Making: Approach the decision-making process collaboratively. Involve key stakeholders from the information systems organization, sustainability teams, and senior management to ensure buy-in from various perspectives.

Quantify the Benefits: Present data-driven analyses showcasing potential cost savings from energy-efficient devices and reduced maintenance efforts. Use these figures to demonstrate the financial advantages of incorporating these factors.

Vendor Assessment Criteria: Develop a comprehensive assessment criteria that includes not only performance and price, but also environmental certifications, energy efficiency ratings, and reliability metrics. This balanced approach ensures a holistic evaluation.

Pilot Programs: Suggest running pilot programs with vendors who align with the environmental and efficiency criteria. This allows for real-world testing and evaluation of their impact on both performance and costs.

Continuous Improvement: After implementation, monitor and track the performance of the selected devices over the three-year cycle. Measure energy consumption, maintenance costs, and user satisfaction. Use this data to refine future purchasing decisions.

Addressing Concerns about Previous Practices: Recognize that suggesting changes might initially face resistance, especially if it challenges established practices. To address this:

Highlight the Benefits: Emphasize that this initiative aims to improve overall cost-efficiency and sustainability.

Acknowledge Previous Practices: Respect the previous decisions but explain that this is an opportunity for continuous improvement based on evolving industry standards and best practices.

Collaboration: Ensure that your approach is collaborative and inclusive, encouraging open discussions and valuing input from experienced team members.

By thoughtfully presenting the benefits and adopting a collaborative approach, you can increase the likelihood that your suggestions will be considered and integrated into the purchasing decision, ultimately contributing to a greener and more efficient IT infrastructure for the firm.