No this is not about hyped technologies like microservices or blockchain. This is about modern yet proven technologies, for those of you whose C/ETRM system can’t perform transaction valuation and position visibility in real time. For those of you, whose C/ETRM architecture must rely on 3rd party emulation software to deliver a cloud solution. For those of you whose C/ETRM system does not support ease of integration with a modern design format such as the REST API architectural style. Are you feeling you can’t keep up with the market changes, your competition, and the expectations of your CFO? Here is a New Year (Re)Solution: Technology your C/ETRM system ought to have.
As 2018 draws to a close, we review the past year and look forward. Whatever our expectations, also in the new year the energy and commodity trading environment will treat you with changes, challenges as well as chances. Many companies are running their organizations with legacy systems that can’t keep up with increasingly complex demands. Optimization, control, and analytics are some of the key areas of focus. In energy markets, focus is on short term trading and asset flexibility. Commodity markets continue to experience volatility. Advances in technology are transforming front, mid and back office functions enabling companies to operate more efficiently and gain deeper insights into the business. Increasingly companies now recognize that new technology effectively is key to their company’s survival and growth.
‘Live’ & Real Time
If you are a user of traditional C/ETRM systems, you are experiencing every day that they are not designed to support such requirements where pre-deal and what-if risk scenarios are expected to calculate within 1-2min max. Where import and processing of exchange trades for viewing takes seconds. And triggered by those new deals, hourly positions are recalculated in seconds with updated Mark-to-Market reporting following 2 minutes later. Globalization, renewables, decentralization of markets and several other reasons, require C/ETRM systems to have the ability to capture all deals in real time and reflect those accurately and instantly in transaction valuation and position visibility.
Organizations increasingly realize that in order to stay competitive, data is the fuel for success. Insights from data helps them to innovate and make smarter decisions based on facts, instead of gut feeling. A modern C/ETRM system must empower users with integrated Business Intelligence for transactional data analytics. It helps them see and understand their data. Leveraging the system’s real-time processing capability and existing data views, the integrated BI reporting functionality enables users to create rich, interactive reports with visual analytics at their fingertips and deploy those as native reports within the system or Mobile App. As a result, they can be easily accessed by other users thereby streamlining the decision-making process by traders, portfolio managers, forecasters, settlement staff, and business leaders for actionable insights.
Ease of Integration
In an environment where time is money, this calls for solid integration with other systems and markets, which is not what legacy C/ETRM solutions are equipped to support. Traders and portfolio managers and their colleagues in risk management, need to have access to have the information about their business at their fingertips. And this information is coming from multiple information sources. Those not being organized and automated can’t keep up and will miss out and/or pay more than was necessary. A modern C/ETRM system relies on an architecture that has embedded middle-ware technology that supports ease-of-integration including market-connections. This includes support for a variety of formats for both inbound and outbound interfaces, from user configurable flat-file methods, to XML, SOAP webservices, FIX APIs, and REST based webservices.
Cloud services has been one of the trends for the past year and will continue its growth. Of course, to have a choice of deploying on-site or remotely hosted, the C/ETRM system needs be designed for web-delivery rather than getting ‘Frankensteined’ to make it work as many legacy vendors do. Software delivered over the internet is seeing high adoption rates and cloud-based Software-as-a-Service C/ETRM solutions are overtaking traditional delivery software. This is a result of it being fundamentally better business model for the company and the vendor. Enterprises that have adopted modern cloud-based C/ETRM systems such as www.TRMTracker.com, are already achieving lucrative productivity improvements and gaining new business insights. As a result, they are well positioned for growth in an economy many now see as always on and always up to date.
Operating in an environment where flexibility, scalability, and performance at a lower cost is required, means a different type of technology solution and implementation. A next generation C/ETRM solution from Pioneer Solutions delivers on those requirements where legacy systems and vendors cannot. And so, it is hard giving up the security of the known, but only then can we create new opportunities. Those pursuing real progress will challenge existing perceptions and try new approaches to solve problems that can’t be solved with established products. Happy New Year!