Investing in an Energy Management System: The Case of Quality Care Nursing Home

Abstract

This case presents the story of how a small- to medium-sized enterprise (SME) makes the decision to invest in an emerging technology. Specifically, the case looks at Quality Care Nursing Home, a 125-bed elderly care facility with roughly 200 employees. Advances in information technology yielded an opportunity for Quality Care to achieve savings of both financial and natural resources through the implementation of an energy management system (EMS) integrated into organizational decision making and management processes. In the case, Quality Care is considering investment in a new IT-enabled EMS in order to improve client satisfaction while reducing costs. The case describes the problem, energy management systems (which are an emerging technology), and how the business went about evaluating the need for the technology and making its case as to whether or not to invest in the technology. The case presents an interesting investment decision in terms of balancing the qualitative and quantitative costs and benefits of the proposed IT solution.