commodity risk and analytics: keys to success webinar

Commodity Risk and Analytics:Keys to Success

Bruce ColquhounSenior Business Development

Manager, GlobalView

Michael SchwartzEVP & Chief Marketing Officer,

Eka Software

Agenda

• Bruce Colquhoun, GlobalView

• Better information management for better decision making

• Achieving a holistic view of data

• Michael Schwartz, Eka

• The need for faster, fact-based decision making

• A modern, advanced analytics solution for the future

• Q&A

Join the conversation:

@EkaSoftware@GlobalView

GlobalView offers a suite of industry-leading solutions that help energy and commodity companies access, analyze, and deliver information in a timely and flexible way. Some of the largest energy and commodity companies in the world trust GlobalView to manage thousands of data sets, both public and proprietary, in support of critical business, risk management, and trading decisions on an enterprise-wide basis.

Quick Facts

• Founded in 1996

• 650 Global Customers, 6,000 + Users

• 24x7 Global Sales and Support

• Global Real-Time and Historical Commodity

Market Data and News

• Customer Proprietary Data

• SaaS-Based Technology Solutions

• Cutting-Edge Charting and Analytics Platform

• Industry-Leading Excel Add-in

• Intuitive Mobile App

• Seamless Data Integration Tools

• Onsite Proprietary Data Solution

About GlobalView

Organizations make better and faster decisions by increasing the reach and

speed of information

Why is There Such Emphasis on Real-Time Information

Poll Question

• What system/tool do you mainly use for commodity data analysis?• Spreadsheets

• CTRM/ETRM

• ERP

• BI/Analytics

• Other (please type answer in questions box)

3 Areas of Focus

Rapid Movement of Information:

• From external and internal sources to decision making systems

• From spreadsheets to downstream systems

• Using event driven and automated processes

Market

Operational

Proprietary

Front OfficeTrading

SalesHedgingAnalysis

Mid OfficeRisk

ComplianceResearch

IT

Back OfficeSettlementsAccounting

Invoicing

1. From external and internal sources to decision making systems

Market

Operational

Proprietary

Front OfficeTrading


Mid OfficeRisk

ComplianceResearch

IT


Invoicing

Formats

XML

XLS

PDFDOC

HTML

Text

Email

CSV

Problems to Consider

Market

Operational

Proprietary

Front OfficeTrading


Mid OfficeRisk

ComplianceResearch

IT


Invoicing

FormatsVolume

XML

XLS

PDFDOC

HTML

Text

Email

CSV

MeterStreaming

5 Minute Nodal

Monthly Storage


Market

Operational

Proprietary

Front OfficeTrading


Mid OfficeRisk

ComplianceResearch

IT


Invoicing

FormatsVolumeVelocity

XML

XLS

PDFDOC

HTML

Text

Email

CSV

MeterStreaming

5 Minute Nodal

Monthly Storage

Batch/Scheduled

Near Real-Time

Real-Time


Market

Operational

Proprietary

Front OfficeTrading


Mid OfficeRisk

ComplianceResearch

IT


Invoicing

FormatsVolumeVelocity

Integration

XML

XLS

PDFDOC

HTML

Text

Email

CSV

MeterStreaming

5 Minute Nodal

Monthly Storage

Batch/Scheduled

Near Real-Time

Real-Time

APIs

Adapters

Web Services


GlobalView’s Approach

2. From Spreadsheets to Downstream Systems

RiskCompliance

ResearchIT

Front Office Spreadsheets

Mid-Office/Downstream

Systems

Often FlawedPoorly MonitoredBlack Box EffectEffectively a Silo

Unified Data World

MarketView® ExcelTools

MarketView®Desktop™

DynamicIntegratedValidated

Golden Source

Front Office Mid-Office

Spreadsheet Automation With MarketView Xchange

GlobalDesktop

MobileRisk

Systems

Achieving A Holistic ViewM

arke

t D

ata Client

Databases

Desktop

Mobile Tools

Excel Tools

Prop Data Hub

BI Tools

ERP

Settlements

Trade & Risk

Billing

Invoicing

Custom Apps

ETRM/CTRM

Eka Software Solutions: Company Profile

Position: Global leader in on premise & cloud served Smart Commodity Management solutions

Founded: 2004

Employees: 315

Global Offices: 7 offices. 3 development & support centers

• Americas: Stamford CT, Calgary AB

• Asia Pacific: Bangalore India, Singapore, Adelaide & Perth AU

• Europe: London UK

Investors: Silver Lake Partners - GP Group - Nexus Venture Partners

Customer Base: >50 leading global enterprises on 4 continents• Cargill, EDF Trading, Twin Eagle, Rio Tinto, Mitsui, Bunge, BMA, Graincorp, Viterra, Louis

Dreyfus, COFCO, CBH, Boliden, Tata Steel, Pinnacle Foods

Solution: InSight Commodity Management (CM) Platform (ETRM & CTRM)• End to end financial and physical transaction management – Energy, Ags, Metals, Bulk• Cross asset trading and position management • State of the art enterprise risk management

Commodity Analytics Cloud• Analytics specific to commodities – Commodity Intelligence Engine• Multiple data sources internal and external to Eka (including competitive E/CTRM) • Prebuilt apps

The Business Problem Facing Commodity Companies

How to make more timely, data-driven, and fact-based decisions

Assumes greater significance because:

• Commodity prices are low, volatility remains high, and margins are under pressure

• Cost consciousness prevails

• Risks still have to be taken but require greater control

Why Getting There is a Challenge

1. Many commodity market problems are unique and require complex logic to get to the answer. Which software can do this for me?

2. Existing options are expensive and time consuming to implement. We’ve already spent so much, do we have to spend significant sums again?

3. To make meaningful and timely decisions, large volume data needs to be integrated from multiple sources and processed. What technology choices do I have?

Most companies have already invested in ERP, CTRM, Treasury, CRM, Accounting, Business Intelligence, etc. – but still rely on spreadsheets to get to answers.

Traditional options are to customize ERP or CTRM or write custom applications. But these are transaction systems, not analytics systems, so customizing them ends up being more expensive & less effective.

Integration projects are expensive and risky. And to process large volumes of data quickly, existing options will require large computation capability driving costs even higher.

Poll Question

• What is your biggest issue with analytics solutions?• Integrating data from multiple sources

• Expected cost and effort to implement a solution

• Available solutions don’t seem to solve my challenges

• Other (please type answer in questions box)

How Commodity Analytics Cloud Solves These Problems

Co

nn

ect

A NoSQL database dramatically reduces the time and effort required for bringing data from multiple systems.

Data preparation for making it ready for analysis is handled by the mapping and transformation layers.

Co

mp

ute

Commodity Intelligence Engine is the logical layer where algorithms are written.

An in-memory data grid can process millions of records in a fraction of the time taken by traditional options.

Dis

cove

r

Apps deliver the visualization that helps discover insights, which in turn lead to fact-based, data-driven decisions.

Intuitive visualization and self service tools give the power to the users to do the analysis they want.

Key Product Features

Commodity Intelligence Engine• Algorithms, models, analysis engine

Apps• Examples: P&L Explained, Procurement, Plan

Performance

Monitors• Brings focus on key areas instead of combing

through all data

Self Service• Intuitive visualizations and app design

Sharing• Share insights and ideas with team members

Data Ecosystem• All data required for analysis in one place

Connectors• Bring in data from 3rd party apps & data sources

Data Preparation• Mapping and transformation that relates raw

data to what the engine needs

Speed• Process millions of data entities in seconds

Mobile• Available on mobile devices including tablets

and phones

Apps For Your Industry - Examples

Commodity Analytics Cloud Apps are a powerful component of our commodity management platform.

• Make faster, data-driven, fact-based decisions

• Answer critical business questions

• Arm users with confidence to make the right decisions at the right time

Commodity Trading

Energy Agriculture Manufacturing/CP

Metals &Mining

Bulk Commodity Sites

• Position Consolidation

• P&L Explained• Accounts

Recon• Trader analytics

• Flash P&L• P&L Explained• Accounts

Recon• Position

Consolidation• Trader analytics

• P&L Explained• Accounts

Recon• Position

Consolidation• Trader analytics• Production

simulation

• Procurement• P&L Explained

• Raw Material Margin

• Inventory optimization

• P&L Explained

• Plan performance

• Plandiagnostics

• Stockyard optimization

Use Case: Food & Beverage/CP Companies

• Challenges:• Buyers are constantly studying markets to cover themselves from price risk

while also having to follow governance and compliance policies and ensure budgets are not exceeded.

• Difficult to know when to lock in supplier prices and when to hedge, depending on how the market is trending.

• Data is spread out among different systems and requires many excel sheets, macros, and man hours to consolidate and gain a holistic view.

Easy Upload of Data from Multiple Sources

Procurement App - Insights

Drill to Analyze Wheat Coverage

Run Simulations

Commodity Analytics Cloud – Next Generation Analytics

• Blend data from internal and external sources

• Use commodity specific algorithms and models

• Gain insights with business specific apps

• Empower users without reliance on IT or team of BI specialists

• Make timely, data-driven, and fact-based decisions

Questions?

Michael SchwartzEVP & CMO

[email protected]

Webinar Recording:

http://info.ekaplus.com/commodity-risk-and-analytics-eka-globalview-recorded-webinar

mailto:[email protected]

http://info.ekaplus.com/commodity-risk-and-analytics-eka-globalview-recorded-webinar