EIP data could be fed into sales systems next to traditional cost information to enable holistic product pricing — extending pricing beyond a dollar amount to something that tells the consumer what the environmental impact of the product is, and thus allowing the consumer to compare products accurately. Companies that differentiate their products not just by price, branding, and features but also by their environmental impact can have a greater impact on consumer choices. With 50 percent of consumers today considering the environment in their product selection, a company that can compete on a complete environmental impact basis could rapidly capture market share. This is where green IT moves from being a cost play to a revenue play.
Hugo Trepant, a partner with Booz & Company in London, leads the firm’s public- sector practice in the U.K. for civil, defense, security, and health-care clients.
Gavin Chow, an associate with Booz & Company in London, specializes in business and IT consulting in the financial-services industry.
Edward H. Baker, former editor of CIO Insight magazine, is a contributing editor of strategy+business.
Also contributing to this article were Booz & Company Associates Jenni Chew and Homayoun Dayani-Fard and Senior Consultant Claire Shah.