radio - Qantas

Talking Business with ITA BUTTROSE
16
James
Bradfield Moody
service not the product, and if you can actually try to identify
what the service is and sell that rather than the product,
then you, as the service provider, make all the money out of
reducing the waste consumption. I’ll give you an example,
there’s companies now which are becoming energy service
providers and they’ve realised that people don’t really want
joules of electricity, what they want is light or they want heat
or they want mobility. So there’s companies overseas that are
actually selling heat, and so they’ll sign a contract with you
for quite a long time to keep your house between 23 and 25
degrees Celsius, which is great, that’s the service that you
want. Then they’ll come in and they’ll put in insulation and
they’ll check the cracks under the doors, they’ll make your
house as efficient as possible, because they realise that it’s
suddenly in their interest to deliver that service – the keeping
the house warm or cool – for the least amount of resources
possible, and that’s a way of basically extracting value and
opportunity, and business opportunity, from the fact that
there’s limited resources.
IB But it requires a whole new way of thinking doesn’t it
and is it driven by the fact that we’re going to have less
resources in the world?
JM It’s driven by that, it’s driven by a lot of things. One is
the fact that we are seeing a reduction in the availability of
some resources, whether they’re water or some of mineral
resources, and in fact things like phosphorus as well, food
security becomes an issue. It’s also driven by the fact that
we see a lot of waste, and build-ups of waste products
can sometimes cause environmental damage, and they’re
called externalities, things where you’re having a value but
you’re not paying for the full costs of the things that you
do. Whether it’s putting pollutants into a river causing fish
to die which causes a fishing village to lose their income,
they are sorts of externalities. The third thing that’s actually
happening, and it’s a technology trend, is we’re actually
measuring and mapping these resources in ways that we’ve
never been able to do. In fact, our third rule of thumb in
the book is about the convergence of digital and natural
and that, as we get more senses, as technology computing
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QANTAS INFLIGHT ENTERTAINMENT | JUNE 2010