BigDataGraphic
(Wavebreakmedia Ltd)
Big Data has jumped from technology buzzword to practical application in a relatively short period of time. As the ability to collect and process large volumes of data has become a reality, businesses are beginning to look for ways to translate information from the spreadsheet to the balance sheet.
Energy management is one promising application of Big Data. Through the use of smart grids, inexpensive smart meters, and analytic software; businesses, and utility companies, can understand more about how energy is used. This understanding offers opportunities to improve efficiency and save money, which can then be applied to other areas of the business.
All of the data means nothing, however, if people don't act on the information. One roadblock to widespread usage, according to Wharton Professor of Business Economics and Public Policy Arthur van Benthem, is the common complaint that there is simply too much information to sort through--it's too hard. That's where experts like Sain Engineering Associates (SEA), a Birmingham energy consulting company, come in.
"There's a lot of unused information in the data collected by building systems, such as building automation systems or utility meters," explains Butch Wallace, Vice President of the Federal Sustainability Group at SEA. "Depending on the system, it can contain information about how well equipment is performing or whether there are energy efficiency opportunities."
In terms of energy management, Big Data tracks information related to WEGO--an acronym for water, electricity, gas and oil. Long-term tracking of WEGO statistics can help businesses understand patterns, locate problems, and curtail expenses over time. Energy management turns the old view of power usage as a static monthly expense into a manageable asset.
Utility companies are already gathering much of the data used to access energy usage. Understanding the data related to energy management can help any size business in a wide range of industries. Property managers or commercial building owners, for example, have used collected data and predictive analytics to manage WEGO and have reported saving thousands of dollars per year as a result.
Another practical, real-world example everyone can relate to is the grocery industry. Everyone buys groceries, but the grocery industry operates on very low profit margins--around 1 - 2% nationally. However, energy usage for the average grocery store accounts for around 15% of the budget each month.
In 2013, grocery sales accounted for $546 billion in the United States. If you take the average energy expense, this means $82 billion dollars went exclusively to energy usage. A modest 1% saving would amount to $820 million. In such a low margin industry, $820 million could then be reallocated to show higher profits and a better return on investments. Grocers could allocate those funds to expand operations, improve distribution and increase jobs--among many possible options.
Big Data can be used at the national and local levels to improve revenues in any industry of any size. "It takes," according to Wallace, "the proper tools and know-how to analyze the data." Whether you are a major corporation or a small, local company there are areas where you can save money and allocate your funds to strengthen your business.
Check out the Sain Engineering Associates website for more information.