Forbes Insights has issued a research report that provides insights into why energy management software is critical to helping enterprises reduce energy costs, mitigate risks, streamline compliance, and increase operational efficiency.
Advanced software systems now focus on myriad business functions—from manufacturing processes to sales and marketing—tracking and analyzing data, and increasing productivity. Yet the billions of dollars spent annually by enterprises on energy costs have remained an untamed outlier, thanks to the fragmented state of energy management, decentralized decision making and a disjointed vendor landscape. Now energy intelligence software (EIS) can illuminate the problem, quantify it financially and produce an optimal solution.
Key insights identified in the report include:
- Most senior executives remain unaware of their annual energy costs, despite the fact that enterprises typically spend between 3% and 5% of their revenue on energy. Many enterprises spend as much as $500 million a year on energy.
- Energy waste is a drain on corporate budgets. In total, building energy waste costs commercial and industrial entities $60 billion in unnecessary energy spend annually.
- Managing energy effectively is complex. The cost of energy is more challenging to manage than the cost of most commodities. Nuances like peak demand charges and ongoing price volatility confound even the most proactive energy managers.
- Software can solve the energy management problem for the enterprise. Companies that use energy intelligence software see clear bottom-line results stemming from real-time visibility into costs and usage, accurate accruals, and helpful insights that allow energy managers to proactively take action.