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Table of Contents
Introduction.
Findings and analysis.
Current environment and its shortcomings.
Energy wastage in the current scenario of SA..
Domain of implementation of new technology.
Selection of new technology for energy storage.
Justification of benefit in the context of capital expenditure.
Sustainable innovation competency.
Time Based Process Map (TBPM) analysis.
S-curve in business and new technology development
Conclusion
Reference list
The progress and up-gradation of technology is an on-going process and it has a multidimensional impact over civilisation. However, the most important impact has been identified in the commercial field as the approach and strategy of the commercial sector changes with the integration of new-age and upgraded technology with the same. On the other hand, the concept of sustainability has got tagged with the implementation of technology in the commercial field. The minimisation of resource usage and wastage along with the regeneration of the sources for further utilisation in the business is one of the major aspects which has been provided by technology in the recent time and this has turned the business organisations to achieve sustainability (Hammer and Pivo 2017). The purpose of this report is to analyse all these aspects of the integration of technology, in the practical commercial field of an organization and evaluation of the impact of the same. The implementation of the technology for renewal and energy storage and analysis of its impact in the commercial level of an organisation is the key aim of this study.
In the previous section, the implementation of technology and its impact in the invoking of change in the business strategy has been introduced. As per the viewpoint of Aznar-Sánchez et al. (2019), with the implementation of technology, the conservation of resources along with the minimal wastage of resources is done. This helps in the minimisation of production cost. This is also applicable for the service industry, as it helps in the minimisation of the maintenance cost and cost for the management of their commercial activity. However, in the implementation of technology like renewal of energy or conservation of energy, financial strength is highly necessary. South Africa has a major drawback in this context. It has been identified that the rate of economic development is quite lower for the South African market, which hinders the availability of technology and implementation of the same at the commercial level. As per official report, among 47 nations of the Sub-Saharan region, the position of South Africa (SA) is 12th in the context of national economy (Heritage 2020). In spite of being the same, the country has the position below average in the global context. The GDP growth of the last five years for the mentioned nation has been identified as anaemia and week. Till 2019, the national economy has been identified as highly un-fee and from this angle, it can be analysed that the infrastructure for the availability of technology is quite poor for this country.
In the above graph, it has been shown that the GDP of SA has faced a nose dive after 2019. However, the growth rate in the previous year is also quite lower than that of the other nations. This data has been validated from the published report of the national statistics of the Republic of SA. At the first quarter of 2020, the downfall of GDP up to 2% has been noticed and this has happened due to the minimisation of the mining activity up to 21.5% (Statssa 2020). Mining activity is one of the major sources of economy for SA which often endangers the natural sustainability of the country and this has a negative impact over the growth of the economy as well. Hence, from this angle, it can be analysed that the market has the drawback regarding its financial strength to develop the availability of the implementation of sustainable technology for power renewal and conservation.
As per the report of the World Bank, the economy of SA is deteriorating with time and the growth rate is showing a negative curve as the valuation of GDP has minimised from 450 billion dollars to 351.492 billion dollars (Worldbank 2016). In spite of deterioration in the availability of the economic and financial resources for the country, the population of SA is growing exponentially. This is an imparting challenge over the development of the financial strength of the nation and equal allocation of resources for all. The census report has proved that the population of the country is 55,386,376 for 2015 which has maximised to 58,558,270 (Worldbank 2016). This is another factor which is hindering the implementation of technology and achievement of sustainability in the community and commercial context.
On the other hand, the factor of energy wastage and its negative impact has also been noticed in the context of SA. As per the scholarly research of Asongu et al. (2020), it has been noticed that in the major cases, the electricity is generated from the fossil fuel in the context of the Sub-Saharan countries among which SA is at the leading position. This has further been supported by Schmidt et al. (2017) and has mentioned that majorly, fossil fuel is used for automobile, domestic and industrial purposes. This has amplified the carbon footprint and has invoked a major sustainability crisis for the country. As per the report of The World Bank, the current carbon dioxide emission of the country is about 8.481 metric tons per capita which is quite higher than that of the average emission rate of the other countries at the global level (Worldbank 2016). This is one of the most driving factors which have triggered this study, about the implementation of the renewable technology of energy at the company which should help in the conservation of power.
On the other hand, it has been identified that there is a crisis regarding the availability of educated and skilled mass that help in the process of implementing new age technology. At the government level, the study and summit has been organised to identify the reason being the technological incapability of the country and its impression in the returned growth of the same. As per the report of African development Bank, it has been identified that there is a shortage in the easy availability of university-educated people as skilled technicians with in-hand experience (African development Bank Group 2014). Hence, from this angle, it can also be analysed that not only the economic factor, but also the lack of skill development scope and education is also hindering the penetration of technology into the South African market.
In the previous section, the current context of South Africa and its economic status in the implementation of new technology has been discussed. It has been identified that the lack of financial strength is constantly hindering the technological growth of South African companies and the wastage of natural reserves of fossil fuel is associated with the same. This is invoking the crisis to the maintenance of sustainability of the nation and its commercial sector as well. Hence, the domain of energy conservation has been selected as the appropriate sphere to implement effective technology.
The concept of the utilisation of renewable sources for energy has been thought by the government of the country but the lack of effective technological support has acted as hindrance in the effective usage of the same at the commercial context. As per the official report of SA, Most of the regions of South Africa get scorching sunshine and this is because of the equatorial and tropical location of the country and the statistical calculator informs that major regions of the country are getting 2500 hours of sunshine per year (energy.gov 2020). Hence, from this angle, it can be mentioned that the resource regarding the generation of renewable power is quite abundant for SA. However, the lack of proper infrastructure or technology is creating hindrance. As per the scholarly article of Kabir et al. (2018), in the context of South Africa, solar energy has been used in running, calculators, watches in water heaters , pumping and in communication as well. Hence, the power generated from photovoltaic panel assembly should be amplified, stored and utilised in the company for production purpose.
In this context, the arrangement and installation of the three different technologies are needed, namely, Photovoltaics (PV), solar heating and cooling (SHC) and concentrated solar power (CSP). As per the viewpoint of Jordehi (2016), PV helps in the direct conversion of solar light to electrical energy. Hence, from this angle, it can be mentioned that PV panels are needed to be installed for the direct use of electrical energy in the process of production and in the power supply for the official works. Additionally, Yushchenko et al. (2018) has research and mentioned that CSP utilises the heat energy of the sunshine to generate electricity which is also helpful for the official activities and running water pumps. However, the most utilisable, technology is SHC where with the utilisation of sunshine can be done for heating and air conditioning. Hence, the huge power wastage of the company, in maintaining air conditioning system and centralised air conditioning of the office building should be replaced and minimised with the use of SHC.
The installation of the convenient technology for the utilisation of solar energy has been discussed in the above section. However, in this section, the selection and analysis of a new technology should be done. As per the viewpoint of Inglesi-Lotz and Pouris (2016), SA has a drawback in setting up an effective power supply and storage system and this is the main reason for which the production system of the commercial sectors of the country is getting negatively affected. This viewpoint has further been supported by Monyei et al. (2018), as in the paper it has been stated that SA has a poor grid system which hinders the process of energy storage for the future use. Additionally, the development of grid systems with the implementation of new-age technology is quite critical for the country and even the company has the execution of the mentioned idea demands high allocation of financial resources. Hence, the idea of renewal and reuse should be implemented as a part of the sustainable strategy of the company to develop the power storage system. Kirchherr et al. (2017) has analysed the theory of circular economy and in this theory it has been mentioned that the utilisation of the strategy of renewal and reuse helps in the economic development of the commercial sector. In recent time, the deposition of car batteries (lithium ion batteries) has been pointed out as one of the major crises at the global level. Golroudbary et al. (2019) has mentioned that the destruction and metal extraction from vehicle batteries is not majorly encouraged at the commercial level as 5% of the entire battery is recyclable which invokes a high cost burden. Moreover, the emission of toxic gas hinders environmental sustainability. As per the report of Gardiner (2017), it has further been estimated that 11million tonnes of li-ion battery will be deposited in the planet within 2030 which is needed to be utilised at the second life stage. In the same report, it has mentioned that Toyota is using the used car batteries in the development of the grid system for the housing and industrial purposes and Nissan has adopted the same ideas for the European market. Hence, after analysing all this information, it can be mentioned that the application of the same can be done in the context of the commercial sector in the South African market. The development of a new grid system for solar power storage includes a huge cost crisis for the company. However, the implementation of the idea of chip availability of used automobile batteries can be adopted by the company. This helps in the development of a power grid for the storage of solar energy for future use and to meet up the crisis of power storage.
The installation of CSP, PV and SHC has multidimensional beneficial aspects along with the development of power grid systems for the company. Muda and Naibaho (2018) have researched in the domain of business economics and have commented that the development of fixed assets can be done with the strategy of capital expenditure. In the previous century, the definition of capital expenditure has been associated with the investment for the development of land, building and equipment. However, in the current time, the development of technological infrastructure and the utilisation of new-age technology have been included in the spectrum of capital expenditure. Helms (2016) has mentioned that the development of IT infrastructure in the company and use of IoT, cloud computing has been identified under the development of assets for the company. However, in this case, none of such is included, but the development of a sustainable source of energy is the primary reason. Hence, from this angle, it can be mentioned that the expenditure which provides perpetual economic benefit and minimises standing annual expenditure can be considered as a capital expenditure for a company. The development of a personalised energy production system for the company along with the grid system for storage should help the company to minimise its costing for purchasing electrical energy for its commercial and production purpose. Hence, this should help the company perpetually from the economic viewpoint and helps in the minimisation of sanding expenditure as well.
In the previous section, it has been mentioned that the company should buy used li-ion batteries from the battery enabled automotive industries which is an economically viable idea. This does not invoke cost burden over the company. Hence, there is no need to sell out any asset of the company to implement this technology in the economy. As influenced by Ng and Rezaee (2015), this expense should be included in the cash flow statement of the company and should not be calculated with operating expense. However, watch and every asset have a longevity and yearly depreciation as well (Haskel and Westlake 2018). In the chase, of this solar energy setup and development of the power grid system, there is also a current depreciation. However, as per the viewpoint of Ng and Rezaee (2015), the longevity of the grid system made up of li-ion batteries is quite high as the rate of refilling gets decreased in the case of creating the grid system than that of utilisation in vehicles. Hence, the value of the capital expenditure is quite high and this indicates that there is no need to borrow money to implement this technology in the company. Hence, this is one of the beneficial aspects of the implementation of renewable power systems and power storage in the context of capital expenditure and cash flow of the business.
On the other hand, this technology has a lower tangibility than that of the current power supply system of the house. As per the idea of Haskel and Westlake (2018), lower tangibility always indicates a high life expectancy rate of an asset which has an immense valve in the calculator of capital expenditure. The calculation of threshold amount is also dependent over the tangibility of depreciation of an asset. In the ground of capital expenditure, this set-up of generation of renewable energy and storage of the same should be considered under the fixed asset of the company. Hence, the threshold amount will be quite high for this fixed asset and this will also help in different aspects in the new future for the company. Hence, from this angle, also, it can be analysed that this company should be able to develop its fixed asset through the implementation of this technology in the commercial field.
In the above section of the report, the analysis of benefit in the context of capital expenditure and development of assets in the company has been done. However, not only in the ground of capital expenditure, the execution of this innovative idea has its value in the context of sustainability. This analysis can be aligned with the traditional idea of the triple bottom line of sustainability. As per the study of Hammer and Pivo (2017), triple bottom line theory indicates that the economic or sustainable development of a company or a community can be done with the development or conservation of the three aspects namely, profit, people and planet. The aspect of profit is quite transparent and it is associated with the development of the financial strength of an organisation. On the other hand, the aspect of people is tagged with community development of a country or the development of the standard of living of the employees of the organisation Ozanne et al. (2016). Moreover, the last factor is crucially essential as it indicates the conservation and development of the environment and natural resources. In the initial sections of this report, it has been mentioned that the key aspect of sustainability is the minimisation of the utilisation or wastage of resources. This is majorly focused by this theory. With the implementation of the technology for the generation of electricity from solar power the minimisation of the usage of fossil fuel can be invoked in the company. Moreover, the wastage of money to buy power from third parties can also be minimised. Hence, from this angle, it can be mentioned that the scope of development of profitability of the company can be invoked with the adoption of this technology and this helps in the development of financial sustainability of the company.
On the other hand, carbon emission is one of the major factors which are causing a crisis for the sustainability of both the environment and people of South African countries. As per the idea of To and Lee (2017), with the unrestricted usage of fossil fuel for the generation of electricity and in the industrial level for production, the rate of carbon emission increases. This results in the enhancement of the carbon footprint of the country. Hence, the implementation of this technology will help in the minimisation of the carbon emission of the company in the constant of its production. Moreover, the indirect usage of fossil fuel for the execution of other commercial tasks can also be minimised with the implementation of development of renewable sources of energy like solar power. As per the viewpoint of Lerch et al. (2015), SHC helps in the running of centralised air conditioning systems and also helps in the heating process at the industrial level. Thence, effective implementation of the same helps in the minimisation of the effective power consumption hence, from this angle, it can be mentioned that the minimisation of energy wastage can be done with the development of the solar energy system for the company.
In the development of the grid system, the application of circular economy can be done which also helps in the development of sustainable advantage in a commercial organisation. As per the statement of Podias et al. (2018), the accumulation of li-battery of cars is one of the major problems and it has been identified that the utilisation of the same in the landfilling purpose is also not a very sustainable idea. Hence, the development of a power grid with the utilisation of car batteries helps in the introduction of the same in the second life. Hence, in the low-costing, the power storage issue can be solved and sustainable development can also be invoked in the business.
The benefit and effectiveness of the technology and the designed system can be analysed with the support of TBPM. As per the viewpoint of Moin et al. (2020), the measurement of each and every activity associated with a complete process in respect to the time, is the central dogma of TBPM. Moreover, White and Cicmil (2016) have research in this domain and have mentioned that the analysis of TBPM helps to identify the time effectiveness of a system or process. This is also applicable in the measurement of the time effectiveness of a technology as well. The entire activity of the PV panel has been identified in eight steps which indicate the entire process of the energy formation and usage from the solar ray. The TBPM development includes multiple stages which are namely workable area identification, data collection, TBPM development and analysis of the same. In this case, the workable area is the domain of energy conservation and renewable energy production for a commercial house. Data has been collected for the market of South Africa and TBPM has been drawn based on the amassed information. [Refer to Appendix-1]
The stages of the production of electrical energy includes, panel exposure, sign light absorption, panel activation along with semiconductor wafer activation, electrical field formation, conversion of electric from DC to AC and supply of the same. The entire process takes about 5 to 6 seconds. Hence, from this angle it can be analysed that the entire technology is quite time effective and the setup will also start the energy supply with a very low time for activation. On the contrary, as per the viewpoint of Son et al. (2018), the effectiveness of the PV panel decreased with the lack of availability of proper sunlight for the climatic and weather conditions. For example, in the case of a cloudy day, the panel activation should not take place properly which invokes major problems in the power supply and the activation of air conditioning or heating process for the production unit. Hence, this is one of the drawbacks which may hinder the company from working at a normal pace.
On the other hand, the mentioned issue can be managed with the implementation of the power grid system which will be entirely designed for the storage of electricity. With the failure of the panel system, the activation of the power grid should take place. This helps in the uninterrupted supply of power for the company. The power grid should be connected with the meter which should help in the measurement of the units of charge which will be consumed. Hence, with the analysis of the TBPM it can be mentioned that the installation of this technology will be most effective and beneficial for the company.
The S-curve analysis of business is one of the major factors which help to identify the economic beneficial impact of implementation of a new strategy in the business. The development of net-asset or current expenditure is also associated with the same. As per the viewpoint of Negrão et al. (2020), the analysis of the firm performance is essential in the interpretation of the S-Curve of a company. In This case, the enhancement of the profitability aspect of the company with the installation of renewable sources of energy and the grid system for the storage of energy should be analysed. As per the idea of Ogami (2016), the stages of S-curve of an organisation or a strategy include infancy, expansion, maturity and decline. Hence, it can be analysed that the exponential growth of the firm performance or the financial strength of an organisation with time is basically represented with the support of S-curve.
After enduring the financial resource wastage with the regular purchasing of electrical energy from the third party, the firm performance of the company is at the stage of Infancy. Hence, with the implementation of the renewable source of energy, the firm performance or the profitability can be maximised to the phase of maturity. The analysis of the value of this capital expenditure can be calculated with respect to the minimisation of the yearly expenditure on the ground of power wastage and power purchasing.
The value and limit of the S-curve should be calculated with the enhancement of the efficiency of the entire system. The price of the 1 kilowatt power in SA is about 0.116 dollars and for instance the monthly usage of the company is 10,000 kilowatt. Hence, the total expense includes 1,160 dollars. Hence, the yearly expense for electrical energy is about 1,160*12= 13,920 dollars. The installation process of the entire setup for one time includes about 7000 to 8000 dollars. Hence, from this angle, it can be analysed that this technology will help the company to achieve S-curve. However, this can be maximised with proper maintenance of the system. The cost of maintenance of the entire system is about 500 dollars yearly. Hence, from this angle, it can be calculated that from the next financial year the minimisation of the costing for electrical energy should be 13,400 dollars on average on a yearly basis. This is the value and limit of the s-curve in the maximisation of financial profit.
At the final segment of this report, it can be concluded that the adoption of new age technology in the commercial field always provides an accelerating impact over the growth of the same. On the other hand, the minimisation of wastage or resources along with the renewal of the resources has a beneficial impact over the economic aspect of the business of a company. Hence, the idea of implementation of the renewal source of energy with the implementation of the new-age technology and the concept of circular economy is highly effective for the company and also for the market like South Africa. The utilisation of solar energy for instant development of electrical energy and in the process of centralised air conditioning and heating in the production department helps in the minimisation of the financial resource allocation for purchasing electrical power. This helps in the minimisation of standing annual expenditure of the company for maintaining its logistics and other commercial activities. On the other hand, the minimisation of the use of fossil fuel also helps in the development of conservation of natural resources and lowering of carbon dioxide emission. This helps to prove that this technology is beneficial from both the point of capital expenditure and sustainability and helps the company to reach the phase of maturity in the S-curve.
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