1661881003444 Roirewardofignorance

Does ROI Mean "Reward of Ignorance" When Used to Deny the Purchase of Energy Information Systems?

Sept. 2, 2014

Watson: If a company thinks they can manage their energy costs without actual data, I wonder if their corporate slogan is, “Better Management through Ignorance” or “Our Management Decisions are the Same With or Without Facts”?

Watson: If a company thinks they can manage their energy costs without actual data, I wonder if their corporate slogan is, “Better Management through Ignorance” or “Our Management Decisions are the Same With or Without Facts”?

Watson: I got an email last week from an Energy Professional who has been promoting the value of energy information systems, using actual monitored data to operate buildings efficiently. He said that in nearly every case the first question he is asked is “What’s the ROI?” He wants to know how he should respond.

Holmes: The real problem is when organizations require an ROI to purchase an information system, they’re asking the wrong question. The real question people should be asking is not how much can they save from instrumentation, but where is every dollar going that they are currently spending every month on utilities? Just the same as they demand for every dollar spent for purchases other than utilities.

Read the Rest of the Blog

Sponsored Recommendations

April 14, 2025
This paper addresses where leaks commonly occur, leak detection methods, and practical advice for an audit and repair plan. You'll learn why an ongoing leak detection and repair...
April 14, 2025
Here are some things you can do in between formal preventive maintenance visits on your electric screw compressor to extend compressor life and prevent downtime.
April 14, 2025
They cost more than refrigerated dryers. They need more parts and service than refrigerated dryers. They increase demand for compressed air. So when should you use a desiccant...
April 14, 2025
Follow these ten steps for energy savings in your compressed air system.