How does the global water resource crisis become a business opportunity for this company?

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Taiwan originally had the limitations of uneven temporal and spatial distribution of rainfall, steep and rapid river slopes, narrow river valleys, small reservoir capacity, shallow geological age, weak quality and limited sites suitable for dam construction, which made it impossible to fully store and utilize rainfall; from 2009 to 2018, the average annual The rainfall amounted to 91.7 billion tons, more than twice the world average, but 60% of it flowed into the sea and wasted.

Also, according to the study, the global rainfall and runoff-dominated water resources software market was estimated at USD 403.1 million in 2018 and is expected to reach USD 671.5 million by 2027. In fact, not only Taiwan, but the whole world is also facing water shortage and water resource crisis, but this is actually a market opportunity that companies are optimistic about?

Aquatic Informatics (AI), a B-type company established in Vancouver, Canada in 2003, is a system supplier specializing in measurement data and analysis software, which has identified the global water crisis and developed it for the market. . There are about 100 employees, but they serve more than 1,000 water resources authorities or enterprises around the world. Their value proposition is the challenge of effective measurement and analysis software for managers to make corresponding decisions.

The good performance of revenue growth of 212% has attracted the attention of Danaher Group, a global manufacturer of measuring instruments. In 2020, it acquired hydrological information from XPV Water Partners, a private equity fund focused on impact investment, in order to achieve its The overall synergy of water resources business.

Danaher is a multinational group with a market value of US$18.2 billion (approximately NT$578.8 billion). It ranks 161 in the Fortune Global 500. It has three major business groups: life sciences, diagnostic technology, and environmental and application solutions. According to the “Harvard Business Review” report, it acquires about 12 companies every year, and then introduces an improvement model. It has created a total shareholder return of more than 20% every year for more than 20 years. With precise service strategies, Empower frontline employees to establish best practices and implement organic growth goals.

 

How does the global water resource crisis become a business opportunity for this company?

 

Practical Strategies for the Triple Baseline Mission

Hydrology Information wins with the strength of software services, relying on the talent strategy under the triple baseline (corporate profit, environment, and society) mission, and they have won the honor of the top 100 best employers of small and medium-sized enterprises in Canada.

Employee Benefits According to different positions and grades, there are 3-5 weeks of paid vacation, and all employees can enjoy another 5 days of vacation on the fifth and tenth anniversaries of the company. There are also up to 12 weeks of maternity leave and parental leave subsidies, up to 80% of the salary, and you can choose to return to work in stages to relax. There is also a corresponding Registered Savings Plan (Registered Savings Plan) to help employees prepare for retirement.

The corporate mission has been implemented in operations, including the establishment of an internal triple baseline working group, and joint planning to participate in community fundraising activities, sponsoring local students’ science fairs, and implementing carbon offsets for business travel.

After the new crown epidemic, the team felt the urgent environmental and climate crisis, and launched a new long-term community donation model “Ripple Project” to formally determine its service software donations, and employ employees as its volunteers to more effectively help those who solve the problem A non-profit organization on water issues in Aboriginal communities that provides software and training for water quality and flow monitoring to support them in effectively managing water resources.

 

The environment is the source of profitable business model

One of HydroInfo’s clients, the Tanzania Water Resources Integrated Development Initiative (WARIDI) challenge is – have to choose between hydropower and water for irrigation?

The watersheds of the Wami-Ruvu and Rufiji rivers in Tanzania are facing unprecedented water stress due to population growth, food security concerns, and socio-economic development, while climate change is changing local rainfall rates more rapidly, resulting in water scarcity. The situation is more serious.

If there is no real traffic data, how to make a balanced choice?

Therefore, hydrological information, assisting customers in planning a comprehensive field measurement plan including 42 water stations and a hydroelectric power plant, to collect highly effective data on rainfall probability and flow, total water volume, etc., and for 10 of the Water Bureau Hydrologists and water surveyors conduct training including acoustic Doppler flowmeter and analysis software, and establish a river flow measurement data system to make the most appropriate choice that keeps pace with the times.

In fact, climate change has had a lot of impacts around the world. Maybe more Taiwanese software talents and industry players can invest in environmental science influence service business models such as hydrological information, and inject a new flow into the value of Taiwan’s water resources. , leaving an endless stream of valuable assets to future generations.

 

A Little Book of Influential Business Models

In business operations, in addition to pursuing the interests of shareholders, we also care about the interests of stakeholders such as community management, environmental friendliness, corporate governance, and employee care. The “Business Impact Assessment” (B Impact Assessment, BIA) used in B-type enterprise certification covers operations (Operations) and impact business model (Impact Business Model). The influence business model refers to the company’s products/services that create benefits for specific stakeholders and serve as a source of profit.

Taking hydrological information as an example, its influence is presented in the “environmental” oriented “environmental education and information” business model with a score of 27.7, which means that the company’s products/services have raised awareness of important environmental issues or promoted environmental protection. Conservation (such as environmental resource guides, carbon rights platforms, research laboratories, etc.). Part of the content is briefly described as follows:

 

How does the global water resource crisis become a business opportunity for this company?

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