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At a time when Digital is battered by the print media. Digital is asking
all its individual contributors to find new areas for business growth.
We have a lot to offer the business community, systems, software 3rd.
parties and consulting and more........
There is a new market imperative in the environmental sector, it is an
outstanding area for Digital to become a leading Systems Integration
provider.
Business are obligated to comply with environmental regulations,
in-turn they must maintain records of all hazardous materials. DEC's
suit of services combined with 3rd part partners and consultants can
provide all companies with those solutions.
Businesses are exploring for ways to reduce the costs of waste, liability
and health impact of workers and the community. DEC, it's partners and
environmental consultants can design, implement and manage the new
requirements for business to become competitive in the 90's.
Business are looking for the new competitive edge, re-engineering the
work process to be non-environmetaly harmfull. Industries overseas are
aggressively positioning themselves to prepare for the environmental
market. Digital can capture new significant business by providing the
information platform, the connecting network as well as the business
methodology component to help companies change their way of working.
Today, U.S. business are facing the impact of governmental regulations,
they are internally coping with the costs and looking for ways to break
the escallating financial burden of meeting environmental regulations.
Businesses are looking to pollution prevention for their growth. They
will require the foundation of information technology and the wisdom to
integrate all the data points.
At a time where Digital is under the Wall Street microscope, the
environmental sector offers a new revenue area for growth and market
presence. This area is large and complex, but richly rewarding to the
computer vendor who becomes recognized as the solutions provider for
environmental issues.
Comment, anyone....
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| I N T E R O F F I C E M E M O R A N D U M
Date: 16-Jun-1992 05:40pm EST
From: IGAL PITCHON
PITCHON.IGAL AT A1WR2FOR at WR2FOR @WRO
Dept: Solution Integ. Center
Tel No: DTN 521-3237
TO: See Below
Subject: For your comments and distribution
Dave,
The enclosed white paper is sent to you as the focal point for
environmental business and marketing within SLG IBU.
Your comments are appreciated.
Please distribute to sales management and SLG account managers as
well as anyone else you think may benefit from the information.
Regards
Igal
DIGITAL INTERNAL USE ONLY Document
Distribution:
dave rogers @mro
dave knapp @mro
bob trocchi @mro
dick wright @mpo
marilyn ashley @mpo
dave getsch @mpo
mark stockhowe @mpo
joe fabrizio @mro
cathy cambal-hayward @ofo
kathleen pizzuti @ofo
ASSESSMENT OF BUSINESS OPPORTUNITIES FOR ENVIRONMENTAL
APPLICATIONS WITHIN INDUSTRY SEGMENTS
OBJECTIVE:
The objective of this memo is share with account teams, in
various industry segments the results of the Federal Funding to
States Pilot program. This information is disseminated to support
the generation of new business.
BACKGROUND:
The Northcentral Region sales management team initiated a
marketing program to investigate the business potential which may
result from the flow of federal funds (Environmental Protection
Agency - EPA) to states. The effort was sponsored by SLG
management: U.S. Sales, SLG IBU and SLG SI.
WHY THIS MAY BE IMPORTANT FOR YOU TO READ:
As many of you are hearing and reading about, the business of
pollution prevention, pollution control, and anything else that
impacts what happens between businesses and the environment, is
fast becoming BIG business. It is estimated that the environment
industry will be one of the largest, and most profitable,
business arenas within the next five years with a projected
market of $200 Billion by 1995.
No matter what industry your customer is based, his/her business
will be effected and become involved with, and be impacted by,
environmental issues to which they will be mandated to respond.
The federal government is making mega funds available to
businesses in order that they can comply with federal
regulations. Your customers will have to respond, and will comply
with federal regulations. your customers will have to respond,
and will take advantage of federal moneys to do so.
Therefore, the findings of the pilot point to a new evolving
market and virgin business opportunities for Digital. Your
customers, will be directly influenced by this new government
direction and face problems for which they will be seeking
vendors who can provide solutions. Furthermore, this will become
a liquid market with federal funds available directly to
corporations, small and large businesses, that chose to follow in
the government footsteps. Corporation are looking to allocate
funds and budgets to remain compliant with EPA regulation and
emerging policies.
This memo is written for your quick reading. It enables a
"thumbnail" assessment of the value of this information to your
business. This is not meant to be a comprehensive report. It is
to inform, open the door for questions and a further dialog.
CONTENT:
The memo highlights: Government Direction and its influence on
industry; problems faced by government and industry as a result
of this direction; Digital's opportunity in addressing these
problems.
1. Government Direction and its Influence on Industry
1.1 Environmental Laws:
There are two major categories of evolving laws that influence
industry and force it to reorient itself in order to be
responsive: the "cradle to grave" and the "liability for
pollutants" laws.
These laws are significant in that they set a trend by government
to place on industry's shoulders the responsibility for
compliance with EPA regulations (at both federal and state and
local government levels) and pollution prevention.
The "cradle to grave" laws put the full responsibility for the
life cycle of a manufactured product and its by-product
pollutants on the manufacturer. For example a car manufacturer is
responsible for scrapping the car after it finished its useful
market life. He is also responsible for cleaning any pollutants
generated during the manufacturing process of said car (i.e.
Mercedes Benz is buying back all junked Mercedes cars, Coca Cola
will buy back all cans and bottles, etc).
The "liability for pollutants" laws places the full
responsibility for any damage caused by the plume of the
pollutants, regardless of geography, on the party responsible for
generating the pollutant. For example, if wind carries toxic
fumes from one state to another and the fumes were proven to be a
health hazard, the party generating the fume is held responsible
subject to legal action and penalties.
1.2 Government's "Carrot and Stick" Approach to Industry
The government is focused on creating a clean environment and is
shifting its defense budget to fight a newly declared national
threat - hazardous waste, pollutants and an unclean, unhealthy
environment. Environmental policy is the pivot for shifting from
a defense oriented economy to a peace-time economy. It is
expected to result in a 200 billion dollar market for high
technology and information applications.
1.2.1 "The Carrot"
Government preference is to entice industry to implement EPA
policies via voluntary "non-compliance" initiatives, pollution
prevention.
In support of this objective a market is being created to trade
in a clean environment. Some examples are: The Chicago Board of
Trade is trading "air free of certain toxic gases" as a
commodity. Southern California has established a point system in
which companies can trade their "clean air". There are dollars
associated with these trading systems.
The New Clean Air Act provides for funds and technical assistance
to companies which will avail themselves of technology and
information to achieve EPA policies.
1.2.2 "The Stick"
EPA is methodically shifting the responsibility for compliance
enforcement from its federally administrative regions to the
states and local governments. Compliance will be enforced with
increasing vigilance accompanied by steep fines. Permits for new
plants will require a more rigorous qualification process and
empirical data in support of permit applications.
2.0 Government's and Industry's Problem
The department of Environmental Protection Agency has been formed
in 1974. It is a spin-off from Department of Health and Human
Services to address health hazards caused by an unclean
environment. The focus was on media (air, water, underground
waste, etc.). Hence, laws were legislated by media. EPA organized
to monitor compliance and enforcement by media - i.e. "stove
pipe" laws, "stove pipe" allocated congressional funds, and
"stove pipe" organizations to administer and enforce the laws.
The federal government assumed the responsibility for "keeping
the country clean". It did not delegate this responsibility to
industry. The management of the "clean up" was centralized in
Washington. EPA refers to its administration as "centralized
command and control"; that is "command" by regulation and
"control"by permits and enforcement. EPA Primary mission is:
- Set national Standards
- Promulgate regulations
- Issue permits
- Inspect for compliance
- enforce where necessary
- monitor for environmental results
2.1 The government problem
Since the laws are media specific, there is a limit to industry's
ability to comply with one law without breaking another. For
example: air may be kept clean by putting waste underground. The
underground may be kept clean by washing waste down the river,
etc. Soon, there is no place to store waste and remain compliant
with ALL regulations. While reductions are made in one media, we
merely have transferred the problem to another media.
EPA has a 20 year old administration entrenched in the regions.
These administration was put in place and funded in support of
laws which are media specific. The infrastructure is not in place
to support pollution prevention initiative by industry.
2.2 Industry's problem
Industry is focused on the manufacturing and distribution of
products for profit. The issue of waste material as a by-product
of the manufacturing and distribution process is, for the most
part, treated as a necessary evil. Corporate funds spent in
clean-up are not viewed as an investment which brings return.
2.2.1 Permit Regulations
Permit regulation are per media. Hence a manufacturer has to
produce enough empiricial data to show compliance per media (air,
water, underground waste etc.) before he is FULLY permitted to
open a plant. This may take from months to years.
2.2.2 Alternative Materials
Once into the manufacturing process, a manufacturer wants to look
for new raw materials which are environmentaly sound. The search
for such raw materials is expensive and rigorous. The information
may be available in multiple data bases, world-wide, in different
formats, different measuring standards and a variety of access
communications protocols.
If such raw material is found. The manufacturer may hesitate
in implementing it in the manufacturing process because it may
involve going through the permitting process again which is long
and costly.
2.2.3 The Manufacturing Envelop
The manufacturing process is complex. A change in an established
process to accommodate the replacement of raw materials with new
ones requires a great deal of econometric modeling, process
modeling and plant reorganization. Such sophisticated analysis
tools are available to very few large companies and are virtually
nonexistent to small to medium companies.
3.0 The Opportunity for the Digital Account Teams
3.1 Compliance and Permitting
As the burden of environmental responsibility is shifted from
government to industry, industry has to establish systems in
place to prove compliance with environmental regulations and
collect and analyze data to get required permits. They are no
longer considered "innocent until proven guilty" but guilty until
proven innocent".
In addition to providing such information to government agencies,
at all levels, there is the proliferation of environmental
information to the community. The disclosure requirements of the
Community Right to Know provisions of SARA Title III are
reshaping environmental policy. Information is power; and when
citizens have information about the release of toxic substances
to the air, water, or land they demand action. The ability of
business to provide such information to their community restore
public confidence and corporate image.
3.2 Control Technology
Industry is expected to have a mandate for new control technology
to control environmental releases. The new regulations at the
federal, state, and local level are all "technology-forcing", in
that they deliberately establish performances requirements that
necessitate advanced technology research and application.
3.3 Pollution Prevention
Pollution prevention is emerging as the most compelling aspect of
the future. Pollution prevention is not only good environmental
policy, it is good economically. Businesses are finding that
pollution prevention program can result in improved regulatory
compliance, reduced costs for pollution control and waste
disposal, improved employee safety, and reduced liability
associated with the management of hazardous materials and wastes.
When one considers the billions of dollars spent each year on
pollution control and the additional billions spent on
remediation of past environmental damage, it becomes even clearer
that the most efficient environmental expenditure, both
economically and ecologically, is pollution prevention.
Industry is encouraged by EPA to look for Integrated
Environmental Management manufacturing process. Today this is in
direct conflict with the EPA administration which is by media.
The new laws encourage industry, small to large concerns, to
take such initiative and be rewarded for it with funds,
government technical support, positive public relation image etc.
Integrated Environmental Management helps the manufacturer and
distributor to think pollution prevention, build the cost of
waste disposal into the business accounting practices and engage
in risk assessment and media priority measurement techniques
(i.e. if there is waste, what is the best way to dispose of it ?
air, water, etc.)
3.4 Connectivity to Material Data Bases
Industry will be focused more and more on an on-going search for
finding alternative raw materials. They will be looking for
access for material data bases which can help them find such
information. The sources of such data bases are, DOD, DOE,
academia, foreign government's agencies and commercial data bases
manufacturers.
3.5 Outsourcing
The management of the data processing functions associated with
Integrated Environmental Management is becoming a very
specialized field of knowledge. The data collection, tracking,
monitoring, risk analysis, decision support, econometrics, etc.
are brand new areas which industry needs to address and
incorporate in their day to day activities. They will need to
staff up, develop expertise, worry about training and
re-training, upgrading technology to remain state-of-the-art and
invest heavily in capital equipment. Where as all industry needs
is ACCESS to the information and applications to process such
information. All the rest, they'll be open to have someone else
perform for them and expense the service out of operational
funds. This will not have to go for capital expenditures and
establishing new organizations.
ACKNOWLEDGMENT
The authors of this white paper (Igal Pitchon, SLG SI and Marilyn
Ashley, Minnesota SLG Account Team) wish to extent their thanks
to the Government Relations Group for helping in making the
contacts with U.S. Senators, U.S. Congressman, Various
Appropriation Committees, The Executive Branch and EPA
officials. This enabled getting the information direct from the
source and evaluate this new market.
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