Digital energy report from Schneider Electric finds business benefits to digitisation
Author : By David Hall, VP of Power Systems UK & Ireland, Schneider Electric
22 May 2019
Unquestionably, there is an urgent need to transform the way the world uses its resources, among which energy is central. Despite the threat of global climate change, the world is growing more resource hungry by the year. Digital transformation is key to resolving this paradox.
If we focus on energy, cumulative energy savings in buildings alone because of digitisation could save 65 petawatt hours by 2040. By expanding digital transformation across buildings, data centres, industry, and infrastructure, we can together create a more efficient, reliable, safe, and sustainable world.
The excuses to avoid energy digitisation shrunk further earlier this year. The release of Schneider Electric’s Global Digital Transformation Benefits Report 2019 shows the power of energy digitalisation across all business sectors. Savings on energy consumption of up to 85% and up to 80% on energy costs emphasise that the age of smart energy consumption has truly arrived. Energy efficiency projects are becoming a C-suite priority, as board members recognise the competitive edge that projects can deliver, at the same time as delivering on sustainability commitments which employees, customers and governments are driving for. The tide is now turning from seeing these commitments as cost centres, and even big business is embracing the potential to turn them into revenue drivers.
The success of many of our customers explodes the myth that digital transformation is an endless tunnel with no gold at the end. By harnessing the Internet of Things and the insight it provides, companies can discover considerable efficiencies and impressive cost savings while delivering enhanced ROI. Digitisation is not an obligation, but a vital strategic opportunity that organisations shouldn’t miss out on.
However, digital transformation isn’t just focused on cutting costs. It’s about using the latest digital technologies to achieve our goals, whether they be social or business-oriented. The report shows a correlation between digital transformation and increased productivity, equipment uptime, workforce safety and emissions reduction. All over the world, the insight generated through digital transformation is helping balance supply and demand and integrate low-carbon renewable sources into our grids.
The same promise of doing more with less applies to the industrial sector. The Industrial Internet of Things (IIoT) connects inventory to smart sensors across the supply chain, making it easier than ever to bring goods to market faster, with lower production costs – the holy grail for industrial companies. On top of that, digitally driven plants, with their seamless record keeping and real-time monitoring, ease regulatory compliance and better mitigate environmental impacts. Despite this potential, an Accenture report found that only 7% of surveyed C-suite decision-makers reported a comprehensive IIoT strategy.
A larger story emerges from this report about the power of digital transformation in energy management and automation in all sectors: when businesses digitise both energy management automation, the two work in concert to drive even greater value.
There is still much more that needs to be done, but a clean, efficient digital energy ecosystem is within our grasp. Indeed, the growing cost and efficiency benefits of automation and optimisation make this transition an inevitability. This new paradigm will help mitigate the great energy challenges of our time – rapid urbanisation, spiralling demand and climate change. This digital revolution has the potential to enable a more sustainable, efficient future with reliable energy access for all.
You can download the full Global Digital Transformation Benefits Report 2019 from the Schneider Electric website: https://www.schneider-electric.com/en/work/campaign/roi-report/
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