Green Facilities Handbook: Simple and Profitable Strategies for Managers

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These resources are available to help you through the process of completing an upgrade.

Corporate Strategy: The role of strategy in business

This process can be broken into major activities that are involved in carrying out an energy improvement project. However, not taking time to save energy can mean big money - lost. Reduction in daily energy costs and monthly utility bills for the lifetime of your business can make it well worth the time needed to pursue effective-efficiency upgrades.

Contract with an energy professional to coordinate and manage your project. Some upgrades require little funding. For those that do require investment, don't worry; there are many traditional and non-traditional financial resources available. A well- designed upgrade can provide your business a positive cash flow from energy savings while paying off the capital investment for new equipment.


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For small, inexpensive projects, you may want to use your own internal funds to pay for the upgrade in order to keep your payback period low and return on investment high. For larger jobs, financing might be the only way to pay for the upgrade. Fortunately, a variety of sources and mechanisms exist for small businesses to finance energy-efficiency improvement projects. Did You Know? Energy-efficient upgrades typically save you money that can be used to pay for the cost of projects. It's your business decision to weigh your competing needs for capital versus continuing increases in operating costs for energy.

Remember- even a longer return-on-investment on energy efficiency results in affordable comfort, and new, more reliable equipment that will pay for itself with energy savings.

Strategic energy efficiency investments are your hedge against the certainty of higher utility bills that you cannot control. The following resources can help you find funding information and opportunities for your upgrade: To help you locate special offers and rebates in your area, ENERGY STAR provides an online zip code driven tool. Small Business Administration SBA , and has offices in all states offering free services to help small firms develop conventional loan applications for loans backed by the SBA.

SBA loan programs include business start-up, expansion, property and major equipment purchases, and disaster recovery. Many contractor associations offer valuable information and advice on selecting a contractor, and a directory of listings. Or, should I do a comprehensive upgrade of my entire facility? The answer will vary depending on each individual business' situation. The age of your current equipment and facility systems, your type of business, your local utility rates, your hours of operation, and your access to capital are all key factors in what level of upgrade makes business sense.

One place to start is with low-cost and no-cost changes such as those listed in the Sure Energy Savers section of this guide. If cash flow is an issue, you may want to wait until a piece of equipment or system fails or is a certain number of years old before replacing it with an energy-efficient model. However, if you are building a new facility or doing a major remodel, you should incorporate energy-efficient upgrades into your design due to the lower incremental cost of "doing it right the first time.

Ask your contractor if they can assist you in prioritizing your energy-efficiency projects. Depending on the skills on your staff, installing caulking and weather-stripping, ceiling fans, occupancy sensors for lights, LED exit signs, and programmable thermostats may be "do-it-yourself projects not requiring outside help.

A more complex project, such as designing and replacing your facility's entire lighting system, will require the help of someone who has experience managing that type of project. There are many reliable, low-risk, high-return actions that you can do, and are relatively simple! If resources permit, undertaking a comprehensive energy efficiency program, with the assistance of a professional if needed, would yield even greater savings. However, while you are considering a comprehensive program at least implement as many of the actions from the following list that you can to start saving now!

Further information on these topics can be found in the Larger Opportunities section of this guide. Don't let this discourage you, or delay your taking simpler actions for sure savings. There are many reliable, low- risk, high-return upgrades that you can implement with limited or no technical support. So, if you don't do anything else, at least implement as many actions from the following list as you can. More detailed information on these topics can be found elsewhere in this guide.

Lighting Turn off lights and other equipment when not in use. High utility costs often include paying for energy that is completely wasted by equipment left "on" for long periods while not in use. Their prices are dramatically lower now than when first introduced. Even good equipment can be installed wrong, so don't install the sensor behind a coat rack, door, bookcase, etc. It must be able to "see" an approaching person's motion to turn on the light before, or as they enter an unlit area. Even better, have your HVAC serviced prior to both heating and cooling seasons.

A contract automatically ensures that your HVAC contractor will provide "pre-season" tune- ups before each cooling and heating season. You save energy and money, and your system may last years longer with reasonably priced yearly maintenance fees. Your chances of an emergency HVAC break-down also become very remote with regular maintenance.

Regularly change or clean if reusable HVAC filters every month during peak cooling or heating season. New filters usually only cost a few dollars. Dirty filters cost more to use, overwork the equipment, and result in lower indoor air quality. So consumers and staff always enter a comfortable facility, this "smart thermostat" can turn on the HVAC one hour before arrival instead of heating or cooling unoccupied space. Control direct sun through windows depending on the season and local climate.

During cooling season, block direct heat gain from the sun shining through glass on the east and especially west sides of the facility. Depending on your facility, options such as "solar screens," "solar films," awnings, and vegetation can help. Over time, trees can attractively shade the facility, and help clean the air. Interior curtains or drapes can help, but it's best to prevent the summer heat from getting past the glass and inside.

During heating season, with the sun low in the South, unobstructed southern windows can contribute solar heat gain during the day. Keep exterior doors closed while running your HVAC. It sounds simple but it will help to avoid wasteful loss of heated or cooled air.

Use fans. Comfort is a function of temperature, humidity, and air movement. When the temperature outside is more comfortable than inside, a "box fan" in the window, or large "whole facility" fan in the attic, can push air out of the facility and pull in comfortable outside air.

Fans can improve comfort and save energy year round. Plug leaks with weather stripping and caulking. This will help prevent the escape of heated or cooled air from your facility. Caulking and weather stripping also let you manage your ventilation, which is the deliberate controlled exchange of stuffy inside air for fresher outdoor air.

Small leaks add up to many gallons of water and dollars wasted each month. Water conservation saves energy and money, especially when it is hot water. In areas of infrequent water use, consider "tankless" water heaters to reduce "standby" storage costs and waste. If local code allows, consider diverting "gray water" PDF for irrigation rather than using fresh water. This includes cleaning, refrigerant top off, lubrication of moving parts, and adjustment of belts.

This will help ensure efficient operation and longer equipment life. Like the lighting system, these factors are key to properly sizing the heating and cooling system during new construction or major upgrades. These elements of the building are a major investment that should be purchased on a "life-cycle costing" or return-on-investment basis, rather than lowest initial cost. Over the life of the building, the operating savings in energy alone will far outweigh the initial cost of these items. Plus, in the case of new construction, it will be less costly to "do it right the first time," than to make even more costly upgrades to insulation, windows, walls or roofing material later.

The sections below will help you learn how to make your facility more energy efficient through improvements to your building shell. Always insulate your new facility to model building codes, which are discussed in the "New Building Design" section of this Guide. For retrofits, use these codes as guidelines to ensure that you get the amount of insulation that will save you energy and be cost effective.

Consult your roofing and HVAC professionals to learn if cool roofing is an option for your facility. When exterior walls are being constructed or are bare during a renovation, consider a quality building wrap. These materials have a low cost per square foot of material and can help drastically reduce air and moisture infiltration into the conditioned space. Fortunately, in recent years, double-paned windows, along with other energy-efficient features, have become more standard. Older facilities can likely benefit from improvements to windows.

Just like walls and roofs, there are insulation opportunities for these areas that will save you money. For new facilities, you should consider a vapor retarder between the foundation and the slab or earth. If weather stripping is missing, hard, or cracked, it should be replaced. Passive Solar Design and Orientation The orientation of a facility can affect energy consumption, particularly the energy used for heating and cooling.

For a new facility, consider passive solar design, or the practice of positioning a facility to take advantage of the sun's natural heating and light energy, and to shade a facility from the sun where desirable. Employees must be able to see to perform their jobs, and objects and spaces must be aesthetically pleasing to encourage sales. This means that significant cost savings can be achieved with energy-efficiency improvements, and due to continually improving equipment, lighting usually provides the highest return-on-investment of major upgrades. He suggested that the service industry such as the airline, traffic, transportation, hotel, restaurant, information and communications technology and online gaming industries will be able to benefit in adopting business models that take into account the characteristics of Web 2.

He also emphasized that Business Model 2. He gave the example of the success story of Amazon in making huge revenues each year by developing an open platform that supports a community of companies that re-use Amazon's on-demand commerce services. Malone et al. In the healthcare space, and in particular in companies that leverage the power of Artificial Intelligence, the design of business models is particularly challenging as there are a multitude of value creation mechanisms and a multitude of possible stakeholders.

An emerging categorization has identified seven archetypes. In the context of the Software-Cluster, which is funded by the German Federal Ministry of Education and Research, a business model wizard [21] for software companies has been developed. It supports the design and analysis of software business models. The tool's underlying concept and data were published in various [ citation needed ] scientific publications.

The concept of a business model has been incorporated into certain accounting standards. For example, the International Accounting Standards Board IASB utilizes an "entity's business model for managing the financial assets" as a criterion for determining whether such assets should be measured at amortized cost or at fair value in its financial instruments accounting standard, IFRS 9. Both IASB and FASB have proposed using the concept of business model in the context of reporting a lessor's lease income and lease expense within their joint project on accounting for leases.

Business model design generally refers to the activity of designing a company's business model. It is part of the business development and business strategy process and involves design methods. Massa and Tucci [39] highlighted the difference between crafting a new business model when none is in place, as it is often the case with academic spinoffs and high technology entrepreneurship, and changing an existing business model, such as when the tooling company Hilti shifted from selling its tools to a leasing model.

They suggested that the differences are so profound for example, lack of resource in the former case and inertia and conflicts with existing configurations and organisational structures in the latter that it could be worthwhile to adopt different terms for the two. They suggest business model design to refer to the process of crafting a business model when none is in place and business model reconfiguration for process of changing an existing business model, also highlighting that the two process are not mutually exclusive, meaning reconfiguration may involve steps which parallel those of designing a business model.

Al-Debei and Avison consider value finance as one of the main dimensions of BM which depicts information related to costing, pricing methods, and revenue structure. Stewart and Zhao defined the business model as a statement of how a firm will make money and sustain its profit stream over time. Osterwalder et al. Mayo and Brown considered the business model as the design of key interdependent systems that create and sustain a competitive business.

Zott and Amit consider business model design from the perspectives of design themes and design content. Design themes refer to the system's dominant value creation drivers and design content examines in greater detail the activities to be performed, the linking and sequencing of the activities and who will perform the activities. Developing a Framework for Business Model Development with an emphasis on Design Themes, Lim proposed the Environment-Strategy-Structure-Operations ESSO Business Model Development which takes into consideration the alignment of the organization's strategy with the organization's structure, operations, and the environmental factors in achieving competitive advantage in varying combination of cost, quality, time, flexibility, innovation and affective.

A business model design template can facilitate the process of designing and describing a company's business model. Daas et al. In their study a decision support system DSS is developed to help SaaS in this process, based on a design approach consisting of a design process that is guided by various design methods. In the early history of business models it was very typical to define business model types such as bricks-and-mortar or e-broker. However, these types usually describe only one aspect of the business most often the revenue model.

Therefore, more recent literature on business models concentrate on describing a business model as a whole, instead of only the most visible aspects. The following examples provide an overview for various business model types that have been in discussion since the invention of term business model :.

Technology centric communities have defined "frameworks" for business modeling. These frameworks attempt to define a rigorous approach to defining business value streams. It is not clear, however, to what extent such frameworks are actually important for business planning. Business model frameworks represent the core aspect of any company; they involve "the totality of how a company selects its customers defines and differentiates its offerings, defines the tasks it will perform itself and those it will outsource, configures its resource, goes to market, creates utility for customers, and captures profits".

A review on business model frameworks can be found in Krumeich et al. The process of business model design is part of business strategy. Business model design and innovation refer to the way a firm or a network of firms defines its business logic at the strategic level. In contrast, firms implement their business model at the operational level, through their business operations. This refers to their process-level activities, capabilities, functions and infrastructure for example, their business processes and business process modeling , their organizational structures e.

Consequently, an operationally viable and feasible business model requires lateral alignment with the underlining business operations. The brand is a consequence of the business model and has a symbiotic relationship with it, because the business model determines the brand promise, and the brand equity becomes a feature of the model. Managing this is a task of integrated marketing. The standard terminology and examples of business models do not apply to most nonprofit organizations , since their sources of income are generally not the same as the beneficiaries.

The term 'funding model' is generally used instead. The model is defined by the organization's vision, mission, and values, as well as sets of boundaries for the organization—what products or services it will deliver, what customers or markets it will target, and what supply and delivery channels it will use. While the business model includes high-level strategies and tactical direction for how the organization will implement the model, it also includes the annual goals that set the specific steps the organization intends to undertake in the next year and the measures for their expected accomplishment.

Each of these is likely to be part of internal documentation that is available to the internal auditor. When an organisation creates a new business model, the process is called business model innovation. This can comprise the development of entirely new business models, the diversification into additional business models, the acquisition of new business models, or the transformation from one business model to another see figure on the right. The transformation can affect the entire business model or individual or a combination of its value proposition, value creation and deliver, and value capture elements, the interrelations between the elements, and the value network.

The concept facilitates the analysis and planning of transformations from one business model to another. From Wikipedia, the free encyclopedia. Major dimensions. Major thinkers.

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Frameworks and tools. Management accounting Financial accounting Financial audit. Business entities. Corporate group Conglomerate company Holding company Cooperative Corporation Joint-stock company Limited liability company Partnership Privately held company Sole proprietorship State-owned enterprise. Corporate governance. Annual general meeting Board of directors Supervisory board Advisory board Audit committee.

Corporate law. Commercial law Constitutional documents Contract Corporate crime Corporate liability Insolvency law International trade law Mergers and acquisitions. Stewart and Zhao defined the business model as a statement of how a firm will make money and sustain its profit stream over time. Osterwalder et al. Mayo and Brown considered the business model as the design of key interdependent systems that create and sustain a competitive business. Zott and Amit consider business model design from the perspectives of design themes and design content.

Design themes refer to the system's dominant value creation drivers and design content examines in greater detail the activities to be performed, the linking and sequencing of the activities and who will perform the activities. Developing a Framework for Business Model Development with an emphasis on Design Themes, Lim proposed the Environment-Strategy-Structure-Operations ESSO Business Model Development which takes into consideration the alignment of the organization's strategy with the organization's structure, operations, and the environmental factors in achieving competitive advantage in varying combination of cost, quality, time, flexibility, innovation and affective.

A business model design template can facilitate the process of designing and describing a company's business model.

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Daas et al. In their study a decision support system DSS is developed to help SaaS in this process, based on a design approach consisting of a design process that is guided by various design methods. In the early history of business models it was very typical to define business model types such as bricks-and-mortar or e-broker. However, these types usually describe only one aspect of the business most often the revenue model. Therefore, more recent literature on business models concentrate on describing a business model as a whole, instead of only the most visible aspects.

The following examples provide an overview for various business model types that have been in discussion since the invention of term business model :. Technology centric communities have defined "frameworks" for business modeling. These frameworks attempt to define a rigorous approach to defining business value streams. It is not clear, however, to what extent such frameworks are actually important for business planning.

Business model frameworks represent the core aspect of any company; they involve "the totality of how a company selects its customers defines and differentiates its offerings, defines the tasks it will perform itself and those it will outsource, configures its resource, goes to market, creates utility for customers, and captures profits". A review on business model frameworks can be found in Krumeich et al. The process of business model design is part of business strategy.

Business model design and innovation refer to the way a firm or a network of firms defines its business logic at the strategic level. In contrast, firms implement their business model at the operational level, through their business operations.

This refers to their process-level activities, capabilities, functions and infrastructure for example, their business processes and business process modeling , their organizational structures e. Consequently, an operationally viable and feasible business model requires lateral alignment with the underlining business operations. The brand is a consequence of the business model and has a symbiotic relationship with it, because the business model determines the brand promise, and the brand equity becomes a feature of the model.

Managing this is a task of integrated marketing. The standard terminology and examples of business models do not apply to most nonprofit organizations , since their sources of income are generally not the same as the beneficiaries. The term 'funding model' is generally used instead. The model is defined by the organization's vision, mission, and values, as well as sets of boundaries for the organization—what products or services it will deliver, what customers or markets it will target, and what supply and delivery channels it will use.

While the business model includes high-level strategies and tactical direction for how the organization will implement the model, it also includes the annual goals that set the specific steps the organization intends to undertake in the next year and the measures for their expected accomplishment. Each of these is likely to be part of internal documentation that is available to the internal auditor. When an organisation creates a new business model, the process is called business model innovation. This can comprise the development of entirely new business models, the diversification into additional business models, the acquisition of new business models, or the transformation from one business model to another see figure on the right.

The transformation can affect the entire business model or individual or a combination of its value proposition, value creation and deliver, and value capture elements, the interrelations between the elements, and the value network. The concept facilitates the analysis and planning of transformations from one business model to another. From Wikipedia, the free encyclopedia. Major dimensions. Major thinkers. Frameworks and tools. Management accounting Financial accounting Financial audit. Business entities. Corporate group Conglomerate company Holding company Cooperative Corporation Joint-stock company Limited liability company Partnership Privately held company Sole proprietorship State-owned enterprise.

Corporate governance. Annual general meeting Board of directors Supervisory board Advisory board Audit committee. Corporate law. Commercial law Constitutional documents Contract Corporate crime Corporate liability Insolvency law International trade law Mergers and acquisitions.

Corporate title. Commodity Public economics Labour economics Development economics International economics Mixed economy Planned economy Econometrics Environmental economics Open economy Market economy Knowledge economy Microeconomics Macroeconomics Economic development Economic statistics. Types of management. Business analysis Business ethics Business plan Business judgment rule Consumer behaviour Business operations International business Business model International trade Business process Business statistics.

Procedia Manufacturing.

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The business model in practice and its implications for entrepreneurship research. Models of opportunity: How entrepreneurs design firms to achieve the unexpected. Morgan Long Rang Planning. International Journal of Product Development. Norderstedt, Germany: BOD. Slowinski, S. Matthews, and E. Business models for collaborative research. Research Technology Management 53 6 World Socialist Web Site. Retrieved The "liquid" model now being pursued is not limited to IBM.