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The Case for Cloud Based Analytics Solutions
at Commodities Companies
Risk Management Systems | Middle and Back Office Solutions
21 MARCH 2016
Commodities companies use trading and
risk management (CTRM/ETRM) software
to manage their core business operations,
covering trading, procurement, logistics,
inventory, hedging, risk, position, and
P&L. Historically, CTRM software vendors
offered these solutions on-premise. These
solutions would typically be hosted by
commodities companies themselves, or
through a data center.
Naturally, the technology has evolved to
address these concerns and today’s cloud
based solutions can be as secure, if not
more, than on premise software.
In addition, cloud based analytics solutions
can be deployed quickly and are easy to
maintain.
Cloud based software also provides
anywhere access and collaboration with
better scalability because users can be added
quickly, typically with no software updates.
However, the growing importance of
analytics is forcing companies to re-think
Shobhit Mathur, VP Product Management
But the larger advantage is the savings in
their strategies on how they want to
at Eka Software Solutions.
upfront hardware costs. By implementing
manage and run the infrastructure of
a cloud based software solution, commodities companies
commodities solutions, especially in a geographically dispersed
save money by avoiding buying hardware. This decrease in
working environment that requires real-time consolidation
upfront infrastructure costs can enable companies to derive
and collaboration.
value from the solution quicker than they could otherwise. In
addition, there is a savings in manpower costs with a cloud
Next-Gen Analytics Solutions for
based solution because the IT department doesn’t need to
Commodities Companies
manage software and hardware.
Software applications like CTRM/ETRM and ERPs are
transaction oriented solutions that manage core business
operations, but these are typically not designed for analysis.
First- and second-generation commodity management systems
are restricted to capturing, integrating, and sharing data across
organizations. Missing from these systems are advanced
analytics to make better, faster, fact-based decisions.
How Analytics is Changing the Game
Critical in any analytics solution is the support of big data and
fast processing speeds. The software needs to be able to parse
huge amounts of data and respond quickly to user interaction.
Advantages of Cloud Computing
Business users at commodities companies will gain maximum
value from analytics solutions built specifically for commodities
markets where information is displayed in an easy-tounderstand way that encourages the user to drill down to
dig deeper. As users analyze results of the business with
probing questions, this inevitably leads to more questions.
Any analytics solution will continue to evolve to respond to
the changing needs of its users.
At one time there was a fear that cloud based solutions were not
as secure as those installed in-house on a company network.
High speed computations and consolidation of data across
multiple sources of information are required to support
analytics that can bring actionable insights to the business.
Predictive and prescriptive analytics is enabled by extremely
To support big data and analytics, faster processing capabilities
are needed today than previously. Cloud based solutions for
analytics are available today that serve the need for speed
by commodities companies, without incurring additional
infrastructure costs to these companies.
As security has improved and confidence levels have gone up,
cloud computing has become more accepted by companies.
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fast processing of algorithms. When all the data can be
brought into one data eco-system, users can perform real-time
analysis. These requirements are driving wider acceptance
of cloud based solutions.
Cloud based solutions are ideally suited to provide analytics
in three ways:
First, analytics requires speed to deploy. Today’s businesses
are seeking ways to increase flexibility and respond quickly to
market changes. To remain competitive and meet aggressive
growth plans, commodities companies need fast and easy
deployments of scalable analytics solutions that deliver value
to the business almost immediately. Adopting an analytics
solution specifically designed for the commodities markets
enables business users to maximize the value of the solution.
Using analytics is an evolving process that changes with the
business maturity and changing markets.
Second, because the volume of data required for deep analysis
is huge, the analytics solution must use a scalable infrastructure.
Ultimately, the commodities industry is a big data business. The
complete commodity supply chain, from source to destination,
over a period of time and for historical comparison, creates huge
amounts of data sets – a wealth of information is stored within
them. Information on prices, costs, hedges, quantities, P&L,
inventory – everything within the company – not to mention all
the market data and news associated with the business must
be included in analysis. Although there is a huge quantity of
data available to commodities companies, if the infrastructure
within which users operate cannot traverse and manipulate
the large volume of data quickly enough, the wealth of data
will be of little use.
Finally, today’s businesses require web based solutions that
enable users to access analytics wherever they happen to be,
whether from their desktop, laptop, or mobile device; cloud
based solutions readily provide this.
Learn more about Eka at ekaplus.com.
By Shobhit Mathur, VP Product Management at Eka Software Solutions.
Shobhit Mathur, Eka Software Solutions, VP Product Management
Shobhit Mathur holds responsibility for product management at Eka and ensures that Eka’s solutions
provide maximum value for commodity market participants. In his 18+ years of experience, he has
successfully earned the investment of customers with sound business transformations and successful
executions. By leveraging the latest technologies to deliver sustained value, Mr. Mathur brings to fruition
highly differentiated, leading edge solutions that align with the needs of the commodities markets.
Mr. Mathur graduated with a degree in Economics from Hindu College, Delhi University, followed by
an MBA from IIFT (Indian Institute of Foreign Trade) in Delhi.
Eka Software Solutions
Eka is the global leader in providing Smart Commodity Management software solutions.
Eka’s analytics-driven, end-to-end Commodity Management platform enables companies
to efficiently and profitably meet the challenges of complex and volatile markets.
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