This paper explores the use of digital technology stages and knowledge demand types for achieving energy efficiency. Digital technology stages are the steps toward developing an intelligent and networked factory: computerization, connectivity, visibility, transparency, predictive capacity, and adaptability. Knowledge demand types refer to the knowledge and skills needed to implement energy management through technical, process, and leadership knowledge. Empirical data were collected from a critical single case study at an industrial manufacturing company. The study made two significant contributions. Firstly, it identifies fourteen challenges and improvement potentials when working with energy monitoring, evaluation, and optimization, demonstrating the critical role of digital technology stages and knowledge demand types. Secondly, the study presents a conceptual framework indicating how companies could overcome pitfalls and enhance energy efficiency by combining digital technologies and knowledge demands. Future work will include technical implementations and its connection to knowledge management.