|Exam Name||:||DB2 9 Database and Application(R) Fundamentals - Academic Initiative|
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|Updated On||:||February 15, 2019|
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000-302 exam Dumps Source : DB2 9 Database and Application(R) Fundamentals - Academic Initiative
Test Code : 000-302
Test Name : DB2 9 Database and Application(R) Fundamentals - Academic Initiative
Vendor Name : IBM
Q&A : 188 Real Questions
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Jul 30, 2018Joyce Wells
DBI software, a provider of Db2 LUW performance options, has introduced new capabilities in its pureFeat V7 efficiency administration Suite for IBM Db2 LUW.
With this free up, DBI is elevating performance monitoring to support DBAs and management groups to contend with the volatility of agile environments, stated Scott Hayes, president and founder of DBI.
Agentless colour option - IBM has finished lots of work in the newest unencumber of Db2 (edition 11) to make pureScale less complicated to make use of, enforce, and administer and, consequently, DBI has seen better adoption of pureScale over the final twelve months, referred to Hayes. To aid consumers get extra from pureScale, DBI’s latest unlock provides amazing Db2 pureScale performance reporting and trending, including new performance displays for world Bufferpools, CF Wait instances, CF Processing instances, the Cluster Facility, and Member performance.
Agentless Collector choice - in addition to DBI's agent-primarily based collector, the unencumber provides a brand new agentless collector option for monitoring cloud databases the place a server login prompt is not obtainable. The agentless collector makes it less demanding to video display numerous databases with minimal overhead and administration and is primarily crucial for monitoring cloud databases however additionally for comfort in lightweight monitoring of non-essential databases, said Hayes.
Database ranking Calculations - in keeping with DBI, many purchasers admire that the database rating provided by pureFeat helps them right away triage databases to focus on the worst complications first. The rating, ranging from 0-10,000, is can charge based, assisting DBA teams to discover hidden or rising future complications.
in the past, the "analyze database score" feature highlighted complications and offered guidance for decision, however there was no indicator for the severity of the complications recognized. The comments from consumers, spoke of Hayes, turned into that they appreciated the device however it turned into not clear what the worst problems have been.
within the new liberate, the variety of facets subtracted for each and every problem is published so that DBAs can remember what the worst problems are.
"Index Design Workbench" - DBI’s Predictive Index affect analysis (PIIA) helps Db2 users be mindful the impact of adding new indexes given SQL workloads for any timeframe, assisting DBA groups to tune Db2 databases with self belief and additionally assisting them gain trade control approvals extra simply.
constructing on the success of this ability, the new liberate provides the potential for DBAs to adjust indexes informed through the Design advisor (add, remove, or reorder columns, and change model sequences) or invent their own new index that will also be handed into the have an impact on analysis.
Now, consumers have the capability to eradicate columns in a advised index or reorder columns, and in the event that they feel they are smarter than the application, spoke of Hayes, they could create their own index and put it during the predictive have an impact on analysis tool to see if it's going to even have the advisable have an effect on that they predict.
superior style Charts - some of the favourite capabilities offered with the aid of DBI is the style charts with trade event warning signs plotted on them. although, up to now, it become handiest feasible to graph definite similarly scaled metrics across time on an X and Y axis. in this free up, a new Z axis option has been introduced, making it feasible to graph diverse metrics across time, assisting to establish cause and impact.
for instance, DBAs can now graph the average transaction response time together with the variety of latest and lively database connections. A DBA might see that after the database is working 30 concurrent lively connections, response times birth to decelerate, talked about Hayes.
The need for pace
With the expanded center of attention on DevOps, there's extra power to take adjustments rapidly and that creates work and stress for DBA groups, accompanied Hayes, stating that “alternate is an invite for new problems.” by way of providing the brand new capabilities in this free up, he mentioned, DBI is presenting people with more insight into what's occurring inside their Db2 environments.For extra advice, goto www.dbisoftware.com/pureFeat-70-DB2-LUW-efficiency-tools.phpand DBI utility pureFeat V7 information.
Most gurus want to increase their careers – and IBM DB2 professionals are not any exception. As expertise changes, or not it's logical to anticipate that practitioners should replace their resumes to dwell aggressive. Even gurus armed with years of arms-on experience can improvement from certain DB2 certifications, in response to Roger Sanders, author of DB2 9 Fundamentals Certification look at e book. licensed IBM DB2 9 experts have an capabilities over non-certified individuals when it comes to getting a job, Sanders stated.
To find out extra, SearchDataManagement.com spoke with Sanders to hear why he thinks IBM DB2 certifications are price it.
This 20-minute podcast is vital to those looking for extra guidance about DB2 9 certifications, in addition to to those that are already licensed, but who need to improve their resumé with extra certifications. Listeners will:
concerning the speaker: Roger E. Sanders, President of Roger Sanders firms, Inc. is a Consulting company techniques Engineer with EMC. He has been designing and setting up databases and database functions for more than two decades and has been working with DB2 9 for Linux, UNIX, and windows and its predecessors on account that it become first brought on the IBM computer (as part of OS/2 1.three extended version). He has written articles for IDUG options Journal and Certification magazine, authored DB2 tutorials for IBM's developerWorks web site, presented at a number of international DB2 consumer's neighborhood (IDUG) and regional DB2 consumer's community (RUG) conferences, taught classes on DB2 household Fundamentals and DB2 Database Administration, and is the author of sixteen books on DB2 .
For more on data management careers:
October 27, 2006 14:15 ET
"Viper" records Server successful New consumers and using IBM software enterprise Momentum
ARMONK, big apple -- (MARKET WIRE) -- October 27, 2006 -- IBM (NYSE: IBM) nowadays announced a new dynamic facts warehousing platform, developed upon the trade-leading DB2 9 "Viper" facts server, it is designed to help clients at once and easily profit enhanced insight into their business information.
the new DB2 information Warehouse 9 makes use of IBM's patented pureXML expertise that allows clients to correctly keep and use statistics in an XML format. XML is more and more used as the standard records interchange layout between disparate purposes, businesses and domains. It also accommodates DB2 9 "venom" know-how that compresses row data to cut back storage necessities, increase I/O effectivity, and supply faster information access from the disk.
DB2 9 is IBM's new statistics server and comprises essentially the most tremendous database expertise enhancements delivered to the industry in additional than two many years. brand new announcement comes just two months after the launch of DB2 9 and continues the momentum of IBM's records server which has introduced record numbers of new customers and compiled hundreds of competitive wins over other vendors comparable to Oracle and Microsoft.
clients have embraced DB2 9 and a lot of are moving their databases from Oracle to IBM's new statistics server, together with: Cardinal health, American electric powered power, vital Michigan university, Farmers coverage and Teleglobe. These new DB2 9 consumers have noted the product's combination of industry-first points, and sophisticated reliability and performance, because the reasons for their migration.
"because of the groundbreaking points in DB2 9, we are seeing a very good deal of customer pastime," talked about Arvind Krishna, vice chairman IBM records servers. "Our shoppers are telling us that DB2 9 has ushered in a brand new period of information server expertise that helps them to develop their organizations. by way of extending these aspects into DB2 statistics Warehouse 9 we have once again raised the bar and delivered the trade's most superior dynamic warehousing platform."
DB2 data Warehouse 9 outperforms the restrained choices of opponents by way of excelling at enabling combined workloads that span the largest multi-consumer transactional programs (buying and selling floors and reservations programs) to the largest pure analytical workloads involving huge multi-billion row tables and the extremely advanced and deeply nested transactions commonly created through main OLAP tools. DB2 facts Warehouse 9 includes construction and management equipment for rapid and efficient start and administration of warehouses that deliver optimum entry and efficiency. DB2 9 offers the trade's only three-means partitioning -- including main multidimensional clustering; dice definitions; transformation modules; and data flow diagrams.
The DB2 9 information server marks a milestone within the 5-year IBM construction undertaking that has transformed typical, static database expertise into an interactive, bright statistics server that enables consumers to improve their potential to manipulate distinct forms of suggestions, such as files, internet pages, and digitally signed XML transactions. IBM's new facts server provides an industry-first seamless and simultaneous information stream of each XML and relational data, despite format, platform or region. The DB2 data Warehouse 9 extends this ability into additional markets.
DB2 records Warehouse 9 will also power IBM's trade-leading records warehouse equipment offerings in keeping with the 'Balanced Configuration Unit' or BCU. The BCU is a completely integrated and scalable statistics warehouse solution that combines software, server, and storage resources to maximize enterprise intelligence and suggestions administration performance for enterprises.
For greater information about IBM dynamic statistics warehousing, consult with www.application.ibm.com/bi.
IBM, DB2, pureXML and the IBM e-company brand are logos or registered trademarks of foreign business Machines agency. For a listing of additional IBM trademarks, please see www.ibm.com/prison/copytrade.shtml
All different enterprise, product or carrier names may be logos or registered logos of others. Statements regarding IBM's future construction plans and schedules are made for planning functions only, and are discipline to trade or withdrawal devoid of word. Reseller expenditures might also fluctuate.
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Let's cut right to the chase and run down Babcock's 12 inaugural choices for the software hall of fame. Coming in at Number 12 is The Morris Worm. This nasty …
>Veteran technology journalist Charles Babcock has written a terrific article for Information Week called "What's the Greatest Software Ever Written?". His selections are sure to spark a flood of e-mail responses to the weekly IT publication from software developers (who are well known to be passionate about this topic in particular). In general, though, he should get high marks from most. He's clearly done his homework.
Let's cut right to the chase and run down Babcock's 12 inaugural choices for the software hall of fame. Coming in at Number 12 is The Morris Worm. This nasty little program was crafted by a college student named Robert Morris, who when arrested by the FBI claimed that he had only the best intentions in mind when he released his worm onto the world's networks and brought machines to their knees around the globe. He said he was only attempting to determine the size of the Internet. Clever defense.
Number 11, according to Babcock, is the Google ranking algorithm. It wasn't the first search engine, not by a long shot. But it made search friendly for even the least technical among us. "The value of an academic paper is measured by the number of times it's mentioned in other papers and footnotes," one of Babcock's sources told him. "Google adapted that convention to the Web."
In a brilliant choice, in our opinion, Babcock slots NASA's Apollo guidance system at Number 10. Using 8 kilobytes of memory on a circa 1968 Raytheon computer, it controlled the systems that enabled astronauts to navigate to the moon, separate their lunar module from its docked orbiter, descend to the sphere's surface and find their way home again, in a round trip of a half million miles. Not bad for something so tiny.
Babcock's Number 9 is Microsoft Excel. His rationale? Spreadsheet programs had been around for years before the folks at Redmond took their stab at one; but when they did, they got things right. And then went about the business of making their competitors obsolete.
Number 8 on the list is the original Macintosh OS. It has been duly criticized as being derivative, taking much of its inspiration from Xerox's Alto, one of the very first personal computers. Rightly so. But greatness is also measured by success and historical impact, Babcock argues. The original Mac was a landmark OS.
The Number 7 position goes to American Airline's Sabre reservation system. It was the grand-daddy of travel service automation. Sure, it had its critics in its day, including the U.S. government's anti-trust division, but it was also revolutionary, blazing a path in tactical and strategic business applications.
Number 6 on the Babcock hit parade is the Mosaic browser. Developed by graduate students to help navigate the new World Wide Web, it created a world of its own, and we have never stopped relying on its successors ever since. Spawning everything from Netscape's Navigator to Apple's Safari, this essential app was the originator of the Internet boom.
Registering at Number 5 is the Java programming language. Critics will point to this choice and bemoan the "network programming language" (Time magazine's 1996 Product of the Year) as the Internet's first great hype machine. Babcock admits that he was an early critic of Java, but he says that he has since come around to admiring the sophistication of its approach.
He gives the IBM System 360 OS the Number 4 spot. This 1964 operating system for big iron was a revolution and a revelation. Many of the fundamentals of computer system design were ironed out by IBM in this historic project. To this day, IBM systems rely on the breakthroughs it made forty years ago.
Number 3 on the list is one of the most profound applications ever attempted: the Institute for Genomic Research's human genome sequencing program. This ambitious application set out to beat a U.S government project to map the DNA composition of 20 000 human genes. It did just that. As one of Babcock's sources commented, "[O]n sheer technical brilliance, it gets 10 out of 10."
Babcock awards the runner-up prize to IBM's System R, the progenitor of relational databases—from DB2, to Oracle, to Sybase, to MySQL, and others. It took set theory and applied it to data storage and retrieval. As a result, relational database management systems have become the underpinning of much of our modern computing infrastructure.
And last but first, Babcock crowns a multi-headed phenomenon known as the Unix family. This famous set of aunts, uncles, and cousins contains some of the most powerful and elegant coding ever created by an individual, team, corporation, or global community of collaborators. Originally, a pet project of an AT&T researcher, Ken Thompson, Unix and its descendants—notably Unix System III, Linux, and BSD 4.3—have had the broadest impact on the world of any computer programs ever written. And of all the Unix family members, in the end, Babcock selects Berkeley Software Distributions' BSD 4.3 as the single "Greatest Piece of Software Ever."
Now, let the passionate discussions begin!
The Big Idea: Business history is marked by periods of relative stability punctuated by fundamental shifts in the competitive landscape that create inescapable threats and game-changing opportunities. Sustainability is an emerging business megatrend, like electrification and mass production, that will profoundly affect companies’ competitiveness and even their survival.
The argument: Understanding how leaders competed in previous megatrends—specifically, the quality movement and the rise of IT—can help companies craft the strategies they’ll need to gain advantage in this one.
A better approach: The road map is clear: Create a vision that moves systematically through four stages of value creation, starting with defensive tactics and then moving to offensive strategies.
Then establish and integrate execution capabilities in five key areas: leadership, assessment, strategy development, management integration, and reporting and communication.
Most executives know that how they respond to the challenge of sustainability will profoundly affect the competitiveness—and perhaps even the survival—of their organizations. Yet most are flailing around, launching a hodgepodge of initiatives without any overarching vision or plan. That’s not because they don’t see sustainability as a strategic issue. Rather, it’s because they think they’re facing an unprecedented journey for which there is no road map.
But there is a road map. Our research into the forces that have shaped the competitive landscape in recent decades reveals that “business megatrends” have features and trajectories in common. Sustainability is an emerging megatrend, and thus its course is to some extent predictable. Understanding how firms won in prior megatrends can help executives craft the strategies and systems they’ll need to gain advantage in this one.
The concept of megatrends is not new, of course. Businessman and author John Naisbitt popularized the term in his 1982 best seller of the same name, referring to incipient societal and economic shifts such as globalization, the rise of the information society, and the move from hierarchical organizations to networks.
Our focus is on business megatrends, which force fundamental and persistent shifts in how companies compete. Such transformations arise from technological innovation or from new ways of doing business, and many factors can launch or magnify the process of change. Business megatrends may emerge from or be accelerated by financial crises, shifts in the social realities that define the marketplace, or the threat of conflict over resources. The geopolitics of the Cold War, for example, drove the innovations that launched both the space race and rapid developments in the field of microelectronics—ultimately unleashing the information technology megatrend. Electrification, the rise of mass production, and globalization were also megatrends, as was the quality movement of the 1970s and 1980s. The common thread among them is that they presented inescapable strategic imperatives for corporate leaders.
Why do we think sustainability qualifies as an emerging megatrend? Over the past 10 years, environmental issues have steadily encroached on businesses’ capacity to create value for customers, shareholders, and other stakeholders. Globalized workforces and supply chains have created environmental pressures and attendant business liabilities. The rise of new world powers, notably China and India, has intensified competition for natural resources (especially oil) and added a geopolitical dimension to sustainability. “Externalities” such as carbon dioxide emissions and water use are fast becoming material—meaning that investors consider them central to a firm’s performance and stakeholders expect companies to share information about them.
Over the past 10 years, environmental issues have steadily encroached on businesses’ capacity to create value for customers.
These forces are magnified by escalating public and governmental concern about climate change, industrial pollution, food safety, and natural resource depletion, among other issues. Consumers in many countries are seeking out sustainable products and services or leaning on companies to improve the sustainability of traditional ones. Governments are interceding with unprecedented levels of new regulation—from the recent SEC ruling that climate risk is material to investors to the EPA’s mandate that greenhouse gases be regulated as a pollutant.
Further fueling this megatrend, thousands of companies are placing strategic bets on innovation in energy efficiency, renewable power, resource productivity, and pollution control. (See the sidebar “Fueling the Megatrend.”) What this all adds up to is that managers can no longer afford to ignore sustainability as a central factor in their companies’ long-term competitiveness.Learning from the Past: Quality and IT
Megatrends require businesses to adapt and innovate or be swept aside. So what can businesses learn from previous megatrends? Consider the quality movement. The quality revolution was about innovation in the core set of tools and methods that companies used to manage much of what they do. Quality as a central element of strategy, rather than a tactical tool, smashed previous cost versus fitness-for-use barriers, which meant the table stakes were dramatically raised for all companies. The information technology revolution was about tangible technology breakthroughs that fundamentally altered business capabilities and redefined how companies do much of what they do. Digital technologies deeply penetrated corporations in the 1980s and 1990s, and the trend accelerated as IT made its way into the daily lives of workers and consumers with the advent of desktop computing and the internet.
In both the IT and quality business megatrends—as in others we’ve studied—the market leaders evolved through four principal stages of value creation: First, they focused on reducing cost, risks, and waste and delivering proof-of-value. Second, they redesigned selected products, processes, or business functions to optimize their performance—in essence, progressing from doing old things in new ways to doing new things in new ways. Third, they drove revenue growth by integrating innovative approaches into their core strategies. Fourth, they differentiated their value propositions through new business models that used these innovations to enhance corporate culture, brand leadership, and other intangibles to secure durable competitive advantage.The quality story.
The economic downturn of the late 1970s, coupled with the 1979 oil shock, drove a dramatic shift in consumer preferences toward efficiency. Many industries were transformed, perhaps none more dramatically than the automotive sector. Of course, the seeds of change had been planted earlier. In the years after World War II, Japan had rebuilt its industrial infrastructure on a model of high-volume, low-cost factories that mass-produced goods of questionable durability and quality. “Made in Japan” was not considered a brand asset. By the mid 1970s, however, Japanese government and business leaders had seized upon the ideas of Edwards Deming and others who stressed quality as a core value. This incremental, process-oriented approach to systematic improvement fit well with Japanese executives’ views on how to drive change to compete effectively in the global market. Leading firms including Toyota and Honda embraced Total Quality Management (TQM) methods, fundamentally shifting their value propositions. Quality methods called into question the assumptions managers had relied on for decades, namely that high quality and affordability were mutually exclusive.
The focus on quality—initially adopted as a means of reducing defects—delivered a greater advantage to companies that took a holistic view and drove changes across their business operations. The famed Toyota Way applied quality methods to every stage of value creation from concept to customer—and ultimately to intangibles such as brand, reputation, and corporate culture. The reputational harm Toyota is experiencing thanks to the recent recalls underscores how important quality continues to be to the firm’s central value proposition. Toyota’s current troubles also highlight the need for firms to align core elements of strategy. In this case, the dissonance between its long-term quality strategy and a more recent topline growth strategy has seriously undermined Toyota’s model for value creation.
Rey Moore, the former chief quality officer at Motorola, describes a similar evolutionary process at the communications giant. Like most firms, Motorola first used quality methods to improve fault and error detection and thus reduce cost, waste, and risk. As those methods proved valuable, the company began to redesign manufacturing processes and product development functions to proactively reduce risks of product failures, functional inadequacies, and other inefficiencies rather than simply detect them. As quality’s potential business impact grew, Motorola developed Six Sigma methods and a standardized tool kit including items like Pareto charts and root-cause analysis models to take quality to scale. Eventually, quality became a defining attribute of Motorola’s brand and culture and a source of competitive advantage. The same story unfolded at firms in all industry sectors as leading companies rode the quality wave to enhanced growth and profitability—delivering a clear quality premium for their shareholders.The IT story.
When the recession of 1982 hit, pressure mounted at many companies to increase productivity, particularly by using emerging information technology innovations to drive cost savings. The early returns on these efforts were mixed. As with quality, skeptics described IT as a black hole into which firms poured money with little return. But some corporate leaders saw that the strategic application of IT could drive growth and provide decisive advantage. American Airlines, a classic example, captured more than 40% of all U.S. airline transactions thanks to its innovative Sabre reservations system.
A lesser known case is American Hospital Supply’s deployment of a revolutionary online purchasing system, which allowed hospitals to order medical supplies electronically, reducing costs, time, and errors for both the company and its customers. Over the next decade, the Analytic Systems Automatic Purchasing system—better known as ASAP—transformed how AHS delivered value to its customers.
Building on its success improving efficiency and reducing inventory risk, the firm developed service innovations that enabled it to deliver any product from any manufacturer at any time from any desktop computer to any hospital supply room. In the process, AHS amassed an extensive product and price database that gave AHS a clear advantage over less nimble competitors. Finally, AHS used IT to evolve its business model. The company, which had been a single-source materials provider to its hospital clients, began taking over their inventory management and procurement processes. This IT-driven innovation established the AHS brand as the leader in its business with a competitive edge based originally on price and later on service and helped the company grow earnings from $42 million in 1974 to $237 million in 1984.
The IT and quality megatrends show us that firms seeking to gain advantage in sustainability will have to solve two problems simultaneously: formulating a vision for value creation and executing on it. In other words, they must rethink what they do in order to capture this evolving source of value; and they must recast how they operate, expanding their capacity to execute with new management structures, methods, executive roles, and processes tailored to sustainability’s demands.Getting the Vision Right
Just as winners in previous megatrends outperformed competitors by following a staged evolution in strategy, so too must companies hoping to lead (or even compete) in the emerging sustainability wave. The idea that mastering sustainability should follow a multistage approach is already apparent. In 2006, one of us (Esty) with coauthor Andrew Winston described such a strategy in Green to Gold. The framework has since been extended, notably by Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami in their article “Why Sustainability Is Now the Key Driver of Innovation” (HBR September 2009). As was the case in the IT and quality megatrends, pioneering companies in sustainability often start by focusing on risk and cost reduction and over time develop strategies for increasing value creation, ultimately including intangibles such as brand and culture. Let’s examine the four stages of value creation.Stage 1: Do old things in new ways.
Firms focus on outperforming competitors on regulatory compliance and environment-related cost and risk management. In doing so, they develop proof cases for the value of eco-efficiency. At its inception 30 years ago, 3M’s Pollution Prevention Pays was just this kind of initiative. As of 2005, PPP had reduced 3M pollutants by more than 2.6 billion pounds and saved the company more than $1 billion. It also laid the foundation for the nearly completed Environmental Targets 2005–2010 program, which will reduce expenses related to energy usage, emissions, and waste by another 20%.Stage 2: Do new things in new ways.
Firms engage in widespread redesign of products, processes, and whole systems to optimize natural resource efficiencies and risk management across their value chains. DuPont’s “zero waste” commitment, for instance, increased the company’s prioritization of eco-efficiency across their operations. Its decision to shed businesses with big eco-footprints, such as carpets and nylon, was based on an analysis that the business and environmental risks would outweigh their potential contribution to future earnings.Stage 3: Transform core business.
As the vision expands further, sustainability innovations become the source of new revenues and growth. Dow’s sweeping 2015 Sustainability Goals, designed to drive innovation across its many lines of business, yielded new products or technology breakthroughs in areas from solar roof shingles to hybrid batteries. The core business, which had traditionally relied on commodity chemicals, has shifted toward advanced materials and high-tech energy opportunities.Stage 4: New business model creation and differentiation.
At the highest level, firms exploit the megatrend as a source of differentiation in business model, brand, employee engagement, and other intangibles, fundamentally repositioning the company and redefining its strategy for competitive advantage. GE’s ecomagination initiative, poised to deliver $25 billion in revenues in 2010, enabled CEO Jeff Immelt not just to reposition the company as an energy and environmental solutions provider but to build a green aura into the GE brand.Getting Execution Right
Gaining advantage in a megatrend is not just about vision—it’s also about execution in five critical areas: leadership, methods, strategy, management, and reporting. In each area, companies must transition from tactical, ad hoc, and siloed approaches to strategic, systematic, and integrated ones.Leadership.
When CIOs first came on the scene, the role was ill-defined and narrowly focused. A limited set of problems was seen as suitable for IT solutions. Now CIOs play undisputed strategic roles with implications for all functions and business units. Strategic sustainability initiatives need similar C-level leadership. While many companies now have chief sustainability officers, the role varies tremendously from firm to firm. CEOs must make a commitment to institutionalizing this new executive position and allocating the necessary resources and responsibilities.
The CSO will be essential to moving companies through the sustainability stages. Like the CIO, a chief sustainability officer helps the CEO and executive team visualize goals and professionalize the process of aligning vision with business strategy. That means redefining performance expectations, specifying accountability, tracking results, and rewarding success. As best practices bubble up in individual units, the CSO is responsible for ensuring that they’re disseminated widely and that the skills needed to execute are available.
Many firms are now accustomed to working with partners and suppliers in formulating their vision and goals, but a CSO must broaden and deepen those links as companies are increasingly held responsible for their entire value chain and product life cycle. Sustainability leadership must put a premium on developing shared goals with a broad set of stakeholders—customers, interest groups, and even competitors and adversaries. Coca-Cola, for instance, has worked intensively with its bottling partners to “light weight” its packaging, cutting greenhouse gas emissions and generating savings in the tens of millions of dollars. It has also made a commitment, in cooperation with its bottlers and the World Wildlife Fund, among other NGOs, to “water neutrality”—an initiative that will reduce its strategic risk and environmental impact by replenishing watersheds to the full extent of the water it extracts. In response to urging by Greenpeace, Coca-Cola announced in December 2009 that all its new vending machines and coolers would be HFC-free by 2015, reducing the equipment’s greenhouse gas emissions by 99%.Methods for assessing value.
With a sustainability vision in place, the executive team must marshal specialized capabilities for weighing options and quantifying benefits and risks. Just as the quality and IT megatrends ushered in new skill sets and fresh perspectives, the sustainability megatrend will require firms to update traditional business tools—business-case analysis, trend spotting, scenario planning, risk modeling, and even cost accounting—to encompass the specialized requirements of environmental sustainability.
Most current methods that companies use to track or project sustainability impacts generate inconsistent, incomplete, and imprecise data. Recognizing that if they can’t measure it, they can’t manage it, companies are developing better means of gauging corporate-sustainability-related costs and benefits and of benchmarking performance. Fujitsu, for instance, employs a performance assessment scorecard—its “cost green index”—that assesses the potential cost, productivity, and environmental impacts of eco-efficiency initiatives across the firm.
Other companies are repurposing standardized tools and methods to bring a sustainability focus to all aspects of the business. For example, 3M, a longtime quality leader, is now applying lean Six Sigma methodologies originally aimed at improving operational efficiency and product quality to driving direct reductions in energy use, waste, and greenhouse gas emissions. To meet aggressive five-year sustainability targets, its Six Sigma leadership group has trained 55,000 employees in how to use these methods. As sustainability-related methods and tools mature, we expect training programs and certifications not unlike certified IT roles or black and green belts in the quality domain to emerge.Strategy development.
Once firms have a solid base of analytical data, they will be positioned to develop distinctive sustainability strategies. Many aspects of strategy development will remain internal, but companies will increasingly adopt open-source approaches that engage outsiders.
Perhaps more than any other company, Wal-Mart has pursued this approach. In 2006, then-CEO Lee Scott launched Sustainability 360, establishing explicit goals to purchase 100% renewable energy, create zero waste, slash greenhouse gas emissions, and sell “products that sustain our resources and the environment.” To this end, Wal-Mart created a dozen Sustainable Value Networks, each comprising Wal-Mart team members, NGO experts, academics, government officials, and supplier representatives, all working under the direction of a Wal-Mart network captain. Each team focuses on a strategic issue targeted by the company’s sustainability agenda—such as facilities, packaging, and logistics—and tries to develop new ways of doing business that support the company’s sustainability goals. The payoffs are already showing up: One of the Sustainable Value Networks, tasked with fleet logistics, came up with a transportation strategy that improved efficiency by 38%, saving Wal-Mart more than $200 million annually and cutting its greenhouse gas emissions by 200,000 tons per year.Management integration.
To capture the full benefits of the megatrend-driven strategy, firms must integrate sustainability objectives into day-to-day management. Leadership may come from headquarters, but responsibility for implementation lies in the field. Firms such as Dow have incorporated sustainability objectives into compensation models, reviews, and other management processes, including a requirement that all newly promoted business unit managers review their units’ sustainability plans with senior management within 90 days.
Managing sustainability strategy requires systems support as well. While many firms have invested in technology to record and report environmental events such as spills and waste disposal, others have gone much further. Wayne Balta, head of Corporate Environmental Affairs at IBM, describes his company’s environmental management system as the foundation for policy deployment, practice management, goal setting, decision making, and data capture. IBM uses the technology to embed environmental strategies into all areas of the business, from R&D to operations to end-of-life product disposal.Reporting and communication.
As public scrutiny, governmental regulation, and customer expectations intensify, companies will need to build capabilities in sustainability reporting. For example, they will need to share information on their response to emerging environmental standards, such as the EPA’s proposed greenhouse gas emissions reporting regulations, and on the financial impacts of the sustainability megatrend to employees, shareholders, and other stakeholders. Developing metrics that allow companies to measure benefits and understand costs is essential to adapting and refining their strategy, as well as communicating results. And Wall Street will increasingly demand evidence that sustainability investments are generating returns.
We see substantial room for improved sustainability communications, particularly among companies with a strong commitment to lead in this arena. Our firm has conducted evaluations of dozens of companies along 35 dimensions of sustainability management. When the assessments were based only on publicly available information and a company’s external reporting, we got scores that were almost always lower, and often significantly so, than scores developed in consultation with the company and with full inside information.
We’ve found a few companies that are leading the way toward the sort of expanded sustainability reporting that we anticipate will become standard practice. Timberland’s sustainability reports, for example, include numerous metrics on pollution and use of natural resources. The company has also broken new ground in providing product-level environmental-impact information to its customers with labeling that resembles the Nutrition Facts labels on food.Building a Sustainability Performance System
By joining a vision of sustainability value creation (the “what we must do”) with evolving execution capabilities (the “how we must do it”), firms develop what we call a sustainability performance system. Depending on their sophistication in both realms, and their desire to use sustainability as a competitive weapon, they’ll fall into one of four categories:Losers.
As the sustainability megatrend accelerates, firms that have put in place only modest cost, risk, and waste initiatives and whose vision and strategies are vaguely conceived or disjointed will find it increasingly difficult to protect their position. It may be too early to see clear examples of firms that have lost their competitive position based on the failure to develop and execute sustainability strategies, but the casualties from other megatrends like quality and IT abound. GM’s decline can clearly be traced to its earlier failure to understand how quality considerations would transform the auto industry. Likewise, Kodak’s dominant position in photography eroded quickly as it missed or ignored the signals that digital technologies would displace film.Defenders.
Some firms may choose a “go slow” sustainability strategy for many reasons—the peculiarities of their industry sector or business processes, their environmental exposure, or other competitive considerations. Others will be content to make investments in the early-stage objectives of cost, risk, and waste management. This defensive posture can work, provided the gap between a go-slow company’s market position and that of primary competitors does not grow too large and the company has execution capabilities commensurate with the complexity of its business. Maersk, the Danish shipping company, has focused its sustainability efforts on efficiency, slashing fuel costs and cutting carbon dioxide emissions through slow-speed shipping and other initiatives. As long as others in the shipping business do not pursue a more sweeping sustainability strategy, perhaps built on more-efficient ship design, Maersk should be able to hold its position. Indeed, many companies may find that their best option is to play defense on sustainability and not try to make this the issue on which they differentiate themselves in the marketplace.Dreamers.
When vision and ambition get too far ahead of the capacity to execute, companies face another set of issues. Those that seek first-mover advantages in the later stages of sustainability differentiation without having mapped out a clear strategy and mastered the fundamentals of execution may experience the same kinds of problems that plagued some aspiring pioneers in the quality and IT megatrends. For instance, the London Stock Exchange’s vision of a paperless settlement system was a bold move and one that managers believed would catapult the organization ahead of its peers. Managers optimistically ballparked the cost at £6 million and jumped in with both feet. By the time the exchange acknowledged that it lacked the management and technical capabilities to execute this leading-edge IT project, in 1993, the tab had shot past £400 million, with no end in sight.
Like the IT and quality megatrends, sustainability will touch every function, every business line, every employee.
Dreamers who try to ride the sustainability wave risk making sustainability promises they can’t keep, inviting charges of greenwashing and the attendant reputational and financial harm. Some years ago, Ford Motor Company suffered from Bill Ford’s attempts to green his business before his management team was ready. His unfulfilled commitments to improve SUV fuel economy and make Ford a leader in hybrid vehicles brought the wrath of environmental groups. His successor, Alan Mullaly, has moved Ford forward with new models that feature advanced materials, smart systems, and high efficiency, enabling the automaker to withstand the current downturn better than domestic competitors and positioning Ford for success.Winners.
Although the sustainability landscape continues to shift, some early winners have emerged. GE’s financial services business has lagged badly, but its ecomagination product line has generated tens of billions of dollars in revenues and positioned the company as a leader in rapidly growing market segments such as energy infrastructure and high-efficiency appliances, jet engines, and locomotives. The ecomagination marketing campaign has also had a halo effect, helping GE transform its reputation from environmental bad actor to sustainability front-runner. Similarly, Clorox’s Greenworks line of eco-friendly cleaning products has reframed the public’s perception of the company—and generated billions of dollars of sales. Clorox’s acquisition of Burt’s Bees, a leader in natural personal care products, further convinced environmental stakeholders that the company’s shift in strategy was both sincere and significant.
Soon companies will have a clear sense of what it means to manage sustainability as a business megatrend. Best practices will emerge, and sustainability scorecards will allow companies to track cost and risk reduction as well as evaluate value-creation activities. As environmental data become richer and more accurate, companies will be able to chart their impacts in financial terms—making it easier for market analysts to identify the firms positioned to deliver an eco-premium. In this new world, the sustainability strategy imperative will be systematized and integrated into the day-to-day practices of firms of all sizes in all industries. Like the IT and quality megatrends, sustainability will touch every function, every business line, every employee. On the way to this future, firms with a clear vision and the execution capabilities to navigate the megatrend will come out ahead. Those that don’t will be left by the wayside.A version of this article appeared in the May 2010 issue of Harvard Business Review.
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