Leverage Energy Diagnostics to Turn Costs into Benefits
Most businesses readily concede they are spending too much on energy. Unfortunately, just as many miss out on a myriad of energy analytics advantages and fail to develop an energy strategy that gives them a competitive advantage.
Just as certain expenses, like office space, tie into other areas such as compliance and employee productivity, energy policy affects companies in many ways. In particular, one sizable energy analytics advantage is that they enable companies to gain an edge in terms of becoming data-driven and reducing risk when making business decisions. Here’s an overview of the top energy diagnostics benefits you can expect.
Make Data-Driven Decisions
The world is swimming in data; every day, according to IBM, the world generates 2.5 quintillion bytes. Yet despite the mass quantities, many organizations are struggling with, or can at least improve, how they use data.
A survey by Attivio found that only 23% thought their organizations “were extremely successful in making data-driven decisions.”
With energy diagnostics tools such as energy analytics software (EAS), however, companies can more easily take action based on their data, such as a manufacturing facility changing the times of production shifts to better align with energy costs. Not only do energy diagnostics like this give businesses direct opportunities to make data-driven decisions for energy costs, but it can also start feeding into other areas to help businesses gain a competitive
For example, if energy diagnostics indicate that the company should change production times, the business may want to run an analysis on what that means for employees. The company might run an employee survey asking what shifts they could work so that the business can make a data-driven decision when assigning workers their schedules, or the company could look at historical data to see what groups of employees are most productive when working together.
These types of analyses may require additional analytics tools, but at least energy diagnostics lead companies in the direction of being able to build on their data-driven decisions.
Energy as a Risk Management Factor
As the world increasingly looks to curb climate change, energy strategy increasingly becomes a factor in risk management, another of the many energy analytics advantages.
In the U.S., even if the federal government rolls back or does not advance climate change initiatives, many state governments are forging ahead with their own plans.
For example, Connecticut has a goal of reducing greenhouse gas (GHG) emissions to 80% below 2001 levels. Furthermore, the state has banded together with eight other states to limit GHG emissions from electric power plants.
Even though businesses may not be directly limited by these environmental initiatives, it is clear that states are trending in this direction, and stakeholders such as investors and customers increasingly care about companies’ sustainability efforts.
Thus, corporate strategy that does not factor in the interplay between energy usage and sustainability is risky. If a company invests in a new product line that uses significant amounts of energy and contributes a great deal to GHG emissions, for instance, there is a long-term risk of that product facing roadblocks, whether it be from regulatory or market forces.
Instead of ignoring these factors, companies can leverage more advantages of energy diagnostics to get ahead of the game. An Accenture study of CEOs conducted with the United Nations Global Compact found that 80% think “demonstrating a commitment to societal purpose is a differentiator in their industry.”
So those that act now can differentiate themselves before others follow suit, and reap the lion’s share of energy analytics benefits.
Request a complimentary energy efficiency assessment to find out how Artis Energy’s RTIS® energy analytics platform can provide you with the visibility and insight to transform energy from a fixed cost into a distinct competitive advantage.