Practical solutions are not always efficient, so knowing how cost efficiency relates to energy production and use is essential. Not only for the resulting financial savings but also the massive preservation of natural resources during the technological development of our society.
Nowadays, discussing energy management without considering the latent need to minimize the environmental impacts generated by globalization makes
the discussion vague. When sustainability is in vogue, this is unacceptable.
How about learning a little more about ways to minimize the degradation of renewable sources in an unrestrained manner?
Before even bridging the gap between cost efficiency and global energy management, it is necessary to take a step back and understand the broader conceptualization of this term.
Efficiency is the quality of what or who is competent to perform a function or make something work in the best possible way with the minimum waste of time, effortand even money. Therefore, in the business sector, cost efficiency is considered a primary strategy for product and service innovation (sustainable or scalable) to go hand in hand with the generation of healthy financial results for the business activity and the society in which it operates.
Considering that society is constantly evolving, there is no reason to deny the potential for transformation in all the environments that form it. The problem, however, is based on the fact that the more industrialized and developed the market, the more products, and services must be made available – based on the premise of the law of supply and demand -, but it is not as simple as that to manage the raw materials that guide this production flow, from natural resources to economic investments.
Thus, the cost management of a business activity also enables more efficient energy management to the extent that processes can and should be automated and optimized.
Understanding that the two expressions are about different things is the first step, as they are often confused and considered synonymous. Then, if their usage can be interchangeable, you must understand why.
The success of a business depends on many factors, and focusing on just one of them can harm all the others. Harmonious relationships must also exist between business processes.
Effective is fit for purpose. Efficient is about executing a task with quality, excellence, and a minimum of errors. While efficiency focuses on maximizing returns on invested resources (ROI), effectiveness focuses on the goal.
The statement that having economic efficiency in something does not always represent cost efficiency is true. Peter Drucker, a management scholar, already taught that effectiveness is doing the right things (solving) while efficiency is doing something right (optimizing performance to make the best use of available resources).
A very enlightening example of the difference between the two is: a car powered by gasoline or ethanol is super-efficient at moving people from point A to point B, but it is no longer efficient, sustainably, and economically speaking, because of the significant expenditure of fuel required in the process.
As the years go by, human development is remarkable, as well as social development and the growing environmental degradation. There is no longer the possibility of thinking about the future without combining technology with ways to improve the quality of human life while preserving natural resources.
But it is also not viable to continue this discussion without considering the market competitiveness and the need to optimize the profit margin for the business. So the big question is: how do I keep my company in the competitive market with maximized cost efficiency? Learn about the role of energy in this scope!
Being an essential input, energy is present in basically every business, so to reduce expenses, increase profits, and preserve the environment, it is vital to combine business performance with energy efficiency.
We have two sides of the same coin regarding energy management:
1) its production and storage.
2) it's use.
Let's delve into our explanations about the optimization of energy consumption in companies and smart cities.
The efficient use of energy in all sectors of the economy can only be implemented after an energy diagnosis to identify places and ways to improve energy use. And when we approach this use, we are not only considering replacing conventional light bulbs with LEDs. Lighting is indeed a point of attention, but the problem is much deeper than that.
It all starts with awareness, so knowing how business intelligence could improve business sustainability and help society (if applied to public offices)
is advancing towards conscious consumption. Three general guidelines serve as a guideline for the adoption of this sustainable energy management methodology:
Conscious energy consumption in all sectors must be monitored (we talked about the energy diagnosis above) because only then can metrics be established and applied;
Behavioral changes are essential for better energy management to be established in the private and individual sector as well as globally and collectively;
Combining control and behavior with appropriate technological tools makes all the difference . Hire specialized companies in information technology and energy for this, ok?
· Invest in intelligent software capable of monitoring and controlling functions such as lighting, heating, ventilation, and air conditioning;
· Smart generators for storing high electric energy;
· clean energy consumption: LED lighting, intelligent power grids;
· Guiding company employees and citizens in general to adopt simple actions such as turning off the tap when not in use, turning off the lights when there are sun rays, turning off computers and air conditioners when not in use, etc., is essential.
Now that the need for the conscious migration of thoughts, methodologies, and strategies to reduce costs, increase cost-benefits, and minimize environmental damage is clear, there is no reason not to implement it in your company! So count on ZPN energy in this endeavor for the planet!
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We founded our business on three main principles – quality, pricing, and service –
and we pride ourselves on our commitment to these principles each day.
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