The active management of electricity demand, also referred to as demand side management (DSM), has been recognized as an effective approach to improving power grid performance and consumer benefits. Being large electricity consumers, the power-intensive process industries play a key role in DSM. In particular, enterprise-wide optimization (EWO) for industrial DSM has emerged as a major area of interest for both researchers and practitioners. In this work, we introduce the reader to the fundamentals of power system economics, provide a definition of DSM that reflects more strongly the consumer's perspective, and present a comprehensive review of existing works on EWO for industrial DSM. The review is organized into four parts, which correspond to the four main challenges that we identify as: (1) accurate modeling of operational flexibility, (2) integration of production and energy management, (3) decision-making across multiple time and space scales, and (4) optimization under uncertainty. Finally, we highlight research gaps and future opportunities in this area. (C) 2016 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.