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From Measurement to Action: A Digital Transformation Framework for Energy Management in SMEs

SMEs Facing Energy and Cost Pressures

In the context of continuously rising electricity, fuel, and operating costs, small and medium-sized enterprises (SMEs) in Vietnam are under significant pressure: they must optimize costs while maintaining productivity, quality, and competitiveness. In addition, global supply chain requirements for ESG standards and carbon emission reduction have turned energy management from an internal issue into a critical factor for the survival of exporting businesses.

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A strategic approach is digital transformation in energy management, combining AI and IoT (AIoT) to measure, monitor, and optimize energy consumption in real time. According to the IEA Report (2023), companies that adopt digital energy management can reduce energy consumption by 10–30% within the first 12 months of implementation, a figure significant enough to make a substantial difference in profit margins and competitiveness.


Digital Transformation Framework: From Measurement to Action

Digital transformation is not just about adding a few sensors or buying new software. It is a structured journey, from measurement, storage, and analysis to action and continuous improvement.

The following 5-layer framework helps SMEs visualize and implement each step clearly.


Step 1 - Measurement: Know in Order to Act

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Measurement is the foundation of any effective energy management program. Only with accurate data can a business identify problems and propose meaningful improvement solutions.

A company can start simply: record electricity meter readings, install smart meters or IoT sensors at major consumption points such as machinery, production lines, and lighting systems.

With regular data, the business can see consumption patterns, detect energy “hotspots,” and create the basis for the next stage of digitalization.


Step 2 - Digitalization and Data Storage: Build a Unified Data Foundation

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Digitalization transforms data from paper or scattered spreadsheets into a centralized system that is easy to access, secure, and share. SMEs can leverage the cloud, ERP systems, or dedicated energy management platforms.

The key is to standardize data structures (units of measurement, time, equipment) and assign access rights appropriately. At that point, report compilation time can be reduced from hours to minutes, and the business is ready for the next step: automated analysis.


Step 3 - Analysis: Turn Data into Insights

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Data only becomes meaningful when it is analyzed to uncover causes and trends. SMEs can start by comparing consumption across shifts, production lines, equipment, or the correlation between output and energy usage.

Deeper analysis, supported by AIoT, enables precise identification of “bottlenecks,” the most wasteful areas, energy demand forecasting, and quantification of savings potential before taking action.

This is the stage where the business truly “knows” where it stands and where it should begin.


Step 4 - Optimization Actions: From Awareness to Results

Based on the analysis, the business implements specific measures to reduce waste. Depending on resources, it can choose low-cost solutions such as adjusting operating schedules or maintaining equipment, or longer-term investments such as switching to LED lights, installing inverters, or deploying smart control systems.

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These actions not only help reduce energy costs by 10-30% but also improve operational efficiency, extend equipment lifespan, and reduce carbon emissions, an increasingly valued factor among international customers.


Step 5 - Maintain and Continuous Improvement: Turn Savings into a Culture

Energy saving is not a one-time project but a continuous process. SMEs need to set monthly energy KPIs, train employees on conservation awareness, conduct regular evaluations, and update new technologies.

As a result, the business avoids the “rebound effect,” where waste returns after a few months, and gradually builds a green operating culture.


Practical Implementation Process: From Assessment to Scaling

To implement effectively, businesses need to proceed step by step:

Phase 1: Assess the current state - collect consumption data, inspect equipment, and identify energy loss points.

Phase 2: Set specific goals and KPIs - e.g., reduce electricity use by 10% within 12 months.

Phase 3: Develop a detailed action plan - including tasks, costs, personnel, technology, and timeline.

Phase 4: Pilot implementation - select one production line or small area to test technology, processes, and staff training.

Phase 5: Evaluate and optimize - compare results with KPIs and make adjustments before scaling.

Phase 6: Scale and maintain - roll out across the entire system, report regularly, and continuously improve.

This process helps SMEs optimize resources, avoid wasting time and costs, and ensure practical effectiveness when moving to a larger scale.


Conclusion: From Savings to Competitive Advantage

Optimizing energy is not just a short-term cost-saving task, it is a strategic lever that helps businesses enhance operational capability, reduce supply chain risks, and establish themselves as green leaders in sustainable transformation.

In the context of volatile energy costs and increasingly strict ESG standards, SMEs cannot rely solely on short-term measures. Partnering with specialized platforms like VEEP helps shorten implementation time and maximize ROI.

With its AIoT platform, VEEP not only provides real-time data but also turns data into concrete actions, helping businesses complete the full “Know – Act – Sustain” journey in energy management.

It is time for businesses not only to “save electricity” but to turn energy savings into a sustainable competitive strategy. Every kWh saved today is a solid step forward on the path of green digital transformation.

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