More than 20 years ago, a need was recognized for software that would enable companies who source, produce, or sell commodities to manage these processes more effectively.
Initially, energy trading and risk management (ETRM) software was developed to serve the needs of energy companies. Later, this software evolved to commodity trading and risk management (CTRM) software to support additional types of commodities and more functions within the supply chain of commodities. These solutions were mainly transaction-based solutions with limited analytics and support for real-time decision making.
To remain competitive, commodities companies need to be able to make timelier and smarter decisions with the huge quantity of data that is available to them. The requirements of commodity management platforms are changing from essentially an after-the-fact recording and reporting system to one that provides real intelligence and value back to the business. The generational shift from transaction only systems to next-generation commodity management software with advanced analytics is a big shift from yesterday’s ETRM software and CTRM software. In addition to analytics, the need for mobile apps, flexible deployment options, and faster processing capabilities are influencing the commodity management software industry.
Commodities markets are characterized by risk, volatility, and complexity. Commodities companies can no longer afford to wait days and weeks to understand market changes, analyze the alternatives, and make decisions. These companies use transaction-based systems to manage commodities, but these systems are typically not designed for analysis. First- and second-generation commodity management solutions (ETRM and CTRM) are restricted to capturing, integrating, and sharing data across organizations. Missing from these systems are advanced analytics to make better, faster, fact-based decisions. (Learn more in "The Benefits of Analytic Solutions Focused on Commodities.")
Recently, Eka released Commodity Analytics Cloud, a cloud-based, advanced analytics solution delivering apps specifically designed for the commodities markets that address high value business issues. These apps provide an end-to-end analysis of the entire enterprise, spanning multiple categories including procurement, P&L, supply chain, and risk analytics.
With Commodity Analytics Cloud, commodities companies can harness data from multiple applications to get necessary insights. By gaining answers to critical questions, commodities companies are transforming performance and gaining a competitive advantage. Eka has put power in the hands of business users so they can create the analytics they need without relying on the IT department. Commodity Analytics Cloud opens analytics to everyone.
As individuals, most of us have constant, real-time interaction with our mobile devices all day, every day. Smartphones have taken over so many areas of our lives. For almost any problem, there’s a mobile app to solve it.
Mobile apps have taken off in the consumer markets but adoption has been slower in the enterprise markets. This is starting to change as more employees are using mobile apps, not only for personal use, but also in their jobs. The lines between personal and work lives are blurring. In global B2B commodities businesses, workers are available around the clock. The convenience of having access to mobile apps enables workers to blend their work and home lives and to accomplish more at the worker’s convenience.
Eka is starting to see increasing adoption of our mobile apps with our InSight CM platform, a next-generation integrated system for managing commodity transactions end-to-end throughout the value chain. But in addition to the use of mobile apps for transaction related activity, the real opportunity for mobile apps at commodity companies is in the area of advanced analytics.
Workers on the move can’t be tied to a desktop — they need decision support wherever and whenever they are working. Their analytics solution should be accessible from all mobile devices as well as their office workspace. A key part of the design of Eka’s Commodity Analytics Cloud platform is our mobile first approach. Commodity Analytics Cloud was designed with the assumption that all business users will primarily use the apps on mobile devices.
Today’s commodities companies are also looking for ways to reap the benefits of a software solution sooner than was possible in the past. They require more flexibility in deployment options.
Since the launch of Salesforce.com in 1999, cloud computing has become more accepted by enterprise companies as they seek cloud-based software solutions instead of on-premise software deployed in a company network. Commodities companies appreciate the decreased implementation costs with cloud-based solutions and the fact that scalability is never an issue. The needed capacity is always there and deployment time is almost nil. Eka’s software platforms have always been web-based for faster, less costly implementation and the platforms can be deployed on-premise in an internal company network or as cloud-based applications.
Commodity transactions are complex and have huge volumes of data. By its very nature, commodity trading creates thousands of individual data points. Most commodity exposed firms have reasonably strong transactions systems along the supply chain to capture the data that surrounds each transaction or engagement. But as margins tighten and conditions get tougher, it is becoming increasingly clear that systems need to do more: they need to be able to correctly interpret the data so that it can support real-time decision-making.
This is a big step on the evolution of commodity management systems: from data capture to data analytics. Eka’s software platforms are powered by Eka’s revolutionary Pace technology that enables commodities companies to use advanced analytics and to effectively manage in today’s environment of big data. The in-memory data grid delivers unparalleled speed and processing power. In addition to enhanced performance, the technology backbone of Eka’s solutions provides scalability while upgrades can be easily implemented.
To remain competitive, today’s commodities companies need to be able to manage supply chains more effectively with the huge quantity of data that is available to them. Eka is leading the generational shift from first- and second-generation commodity management solutions to Smart Commodity Management solutions that include advanced, predictive analytics to make better, faster, fact-based decisions.