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Big Blue's world is turning green

The technology giant is finding ways to satisfy clients clamoring for eco-friendly, budget-friendly products

- Staff Writer

Published: Fri, Aug. 22, 2008 12:30AM

Modified Fri, Aug. 22, 2008 08:02AM

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RESEARCH TRIANGLE PARK -- Big Blue is helping retailers go way green.

Technology giant IBM, the No. 1 provider of retail point-of-sale systems -- the 21st century version of cash registers -- has embraced the concept that energy-efficient, environmentally friendly products are good business for the company and its customers.

"I think green is beyond a fad," said Juhi Jotwani, vice president of marketing and strategy at IBM's retail unit, Retail Store Solutions. "It's about saving money but also about being more environmentally conscious."

BAR CODE BY IBM

The bar code was born in the Triangle at IBM's Retail Store Solutions. IBM engineer George Laurer is credited with inventing the bar code, which was first used to scan the price of a pack of Juicy Fruit at an Ohio supermarket on June 26, 1974.

Today, billions of items are scanned daily using bar codes, and IBM's Retail Store Solutions unit, based in Research Triangle Park, remains a force in retailing.

The unit makes and sells point-of-sale systems, receipt printers, displays, self-checkouts and electronic kiosks, such as the ticketing and check-in kiosks used by airlines. It also provides information technology services to retailers.

Other IBM accomplishments:

* Its 2.2 million point-of-sale systems, in more than 100,000 stores in over 100 countries, ranks first in the industry.

* The total of IBM point-of-sale systems worldwide is larger than its next two competitors' combined.

* IBM is No. 1 in self-checkouts, with 40 percent of the world's top 25 retailers using IBM systems.

DAVID RANII

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Last year, IBM announced "Project Big Green," a plan to invest $1 billion a year in new products and services to dramatically boost the energy efficiency of customers' information technology operations.

The retail unit, in addition to saving customers money on their electricity bills, is focused on green practices such as using more environmentally friendly packaging and recycled materials.

IBM's initiative coincides with national retailers taking steps to polish their environmental images. Chains such as Kohl's, Wal-Mart, Safeway and Whole Foods are putting solar panels on their roofs to generate electricity -- and to take advantage of a tax break.

Wal-Mart is lighting its refrigerator cases with energy-efficient LEDs. Office Depot, Staples and Best Buy are opening stores that meet Leadership in Energy and Environmental Design standards.

As a result, IBM isn't the only business catering to a retail industry that is greening up. In January, one of its competitors, Fujitsu, unveiled its own "Pervasive Green" initiative.

"I think there is a race among all these companies to integrate energy efficiency into all their products," said Peyton Fleming, a spokesman for Ceres of Boston, a coalition of investors and environmental organizations that promotes eco-friendly business practices.

IBM's SureMark printer, which debuted in June, churns out customer receipts. The printer is packaged in high-density plastic made of 100 percent recycled materials, replacing Styrofoam. The packaging also takes up less space, lowering shipping costs.

The SureMark, designed in RTP, can print receipts on a new polymer made from recycled plastic. The polymer is thinner, which means more receipts can fit on a roll, and rolls don't have to be changed as often.

IBM's retail unit, which started in Raleigh in 1971, has its headquarters in RTP. About 350 of IBM's 11,000 local employees work for the retail unit.

Some of the environmentally friendly initiatives at IBM's retail business:

* Its flagship point-of-sale system is one-third more energy-efficient than its predecessor.

* Its software enables retailers to shut down all point-of-sale systems from a single location to save energy.

* No products are painted, to avoid harmful emissions that painting produces.

* 80 percent of every product is made of recycled materials. Use of recycled products has risen steadily since 2002.

Why clients like it

IBM's green focus was a key selling point for Fida Ghanem, co-owner of three Saladelia Cafes and the Mad Hatter Cafe and Bake Shop in Durham.

Ghanem said Saladelia has long promoted green practices -- such as using biodegradable utensils for take-out orders -- and she wanted to make sure that her new point-of-sale systems were as green as could be.

"It's about trying to be in business in a smart way," Ghanem said. "We are here for the long run."

Going green is more difficult than it looks, said Dave Landers, the lead hardware architect for IBM's point-of-sale units.

"Tiger Woods makes it look easy to play golf, but as a new golfer, I can tell you most assuredly it is not," said Landers, who works in RTP.

david.ranii@newsobserver.com or (919) 829-4877

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