How Can IoT Technology Help Lower Costs for Businesses?

The old adage is true: turnover is vanity, profit is sanity. While generating lots of revenue is the eye-catching headline of every business, the clearest sign of genuine success always lies in the profit margin.

Of course, there are lots of ways a business can look to manage overheads and reduce costs – from supply chain to materials to facilities management. But at Consultiv Utilities we know how critical energy bills can be to this equation.

While understanding the detail behind utility bills hasn’t always been easy in the past, it’s fair to say that changing legislation and, in particular, the advent of Internet of Things (IoT) technologies has made it much easier to pinpoint usage patterns and identify opportunities for improvement.

From smart meters to energy management systems, IoT tech is providing businesses with the ability to map out daily, weekly and monthly usage. This makes it much easier to spot where consumption is too great, wasteful or just poorly planned.

Let’s take a closer look.

Prediction-led Cost Management

IoT data and energy management tools can be a powerful combination when used together effectively.  Balancing IoT data with energy usage can allow for a more data-driven energy strategy that helps manage demand pricing.  It also provides clarity to businesses and suppliers about how to manage energy conservation from both a cost reduction and sustainability perspective.

Smart Energy Spending

Smart meters have been an effective way to make energy usage a more visible cost.  Whilst it has been widely accepted in domestic settings, its commercial applications are wide-ranging and just as valuable.  There is a clear economic benefit in helping people understand how usage can impact on cost and where savings can be made. Smart meters help to monitor where energy consumption can be reduced and more effectively managed when moving to demand-led pricing structures. 

Environmental Visibility

Achieving net zero goals is not just about turning a few lights off.  It requires a sustained, measurable strategy aimed at reducing carbon footprint.  To achieve that, a business requires complete visibility of its energy consumption to establish how and where savings can be made.  IoT tech not only provides that visibility, but also the real time data essential for a business to formulate an energy-reduction strategy.  Without the data to analyse and redirect energy resources into the future, achieving a zero carbon footprint cannot be achieved. 

Through a more coordinated use of IoT solutions for data gathering, energy management and performance analysis, commercial businesses and their utility providers can identify ways in which more renewable sources of energy could be better integrated into an overall energy plan. 

When Things Go Wrong

Unfortunately there are times when issues with supply, malfunctions or outages occur.  IoT tech can be key to helping address when and where a problem has arisen and help find a swift resolution to reduce any negative impact on a business.  Outages or loss of production cost money and the quicker an issue is resolved, the better it is for business. 

Energy management software can offer predictive services to assist utility companies in identifying where issues may arise for commercial businesses.  For example, usage peaks when energy overloads or consumption spikes may lead to outages.  By identifying problems in advance, it is often possible to plan strategies for mitigating problems and reducing the impact of outages or supply issues.  Similarly, in situations where system accidents or blackouts occur – sensor data from IoT tech and software can provide a swift resolution by locating the problem quickly or help in assessing the severity of any damage. 

In the world of IoT tech, data is king but it is the application of this data that makes the technology so useful to commercial businesses and energy providers.  Providing tools for analysis, prediction, and clear models relating to cost and usage means potential savings can provide commercial companies with an operational lifeline at a time when rising energy costs are really cutting into profits. 

Need help with your business energy contracts and consumption? Get in touch with the team at Consultiv Utilities today.