ISM AND ISEG MBA - Développement durable

The companies can add sustainable attributes to existing technologies. There are many existing
processes, products and services to which the attributes of sustainability could be added. A
product can be made more sustainable by making it more resource-efficient. It might be made
from recycled material, or designed to live longer and be recyclable. It might be possible to
reduce the toxicity of the materials used or of the by-products.
In the aftermath of the cold war, green applications are being found for a number of military
technologies. Entrepreneurs should be aware of the value of defense-related technology: in
particular, its high development costs have been borne by the taxpayer. The cost of conversion to
civilian applications is often quite small. The combination of high technology and low marginal
cost can rapidly drive the technology into new markets.
One technology that has been successfully converted was developed by General Electric to detect
diesel smoke from submarines up to 150km away. A group of employees obtained the license
from GE, and now use the technology in devices that monitor air pollution. In the early 1990s
their company, Environment One, had annual sales of $12 million.
Meanwhile satellite technologies are increasingly being used to track deforestation, soil erosion
and land use patterns. Similarly, military propulsion systems are being adapted for electric
vehicles and public transit networks.
The environmental technologies, like others, often reach a plateau in their development cycle,
remaining stuck at a certain performance or cost level that constrains their ability to penetrate the
market. Technical performance (for example energy efficiency, energy output or pollutant
capture) may be low, rendering the technology uncompetitive. Alternatively, production costs
may be too high, despite good performance. A breakthrough, whatever causes it, can suddenly
make the technology competitive and profitable. Successful entrepreneurs can position
themselves to take advantage of these step-changes.
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