The hidden cost of relying on legacy CTRM
“Old is gold” is not always the best adage, and in a world where technology becomes obsolete every second, it becomes a non sequitur. Especially when talking about CTRM systems, enterprises that rely on legacy commodity trading and risk management models would be in for a rude shock to know how absolutely inefficient the system can be. Here is why a legacy CTRM solution is unreliable:
- Costly implementation
As a risk management platform, legacy CTRM is implemented on-premise and has tedious implementation requirements. They also need a lot of IT involvement, adding to the upfront cost of implementation. Businesses need to be vigilant while opting for CTRM solutions, because even when the product is claimed to be ‘cloud-based’ it still requires long implementations to integrate systems.
Cloud platform advantage: A true digital commodity management platform like Eka provides a simple, cloud-based implementation with prebuilt connectors. It requires limited IT involvement and can be taken live in just a few weeks, at a fraction of the time and cost of legacy CTRM systems.
- All-or-nothing framework
With legacy CTRM, you end up buying more than you need. This is because in legacy CTRM and ETRM systems you purchase the system and pay for the functionality whether you need it or not.
Cloud platform advantage: In comparison, Eka has an app-based platform. This helps you customize according to your requirement. You can buy just what you need, and don’t need to purchase anything more. You can also add functionality quickly and easily later as you grow.
- Poor data integration
In a legacy CTRM platform, data is manually incorporated from external systems. This leads to a dual issue. Firstly, manually collecting data can be time-consuming. Since markets are volatile and fast-paced, the lost time can translate into lost profits. Secondly, there is room for human error in manual data aggregation. These errors can in turn result in making bad trades.
Cloud platform advantage: Digital CTRM platforms provide automated data aggregation. This takes seconds, making it efficient. Since the system is completely automated, there is no scope for human errors or mistakes.
- Sub-optimal decision-making
It’s essential to have up-to-date data to make good business decisions. However, relying on legacy CTRM software means that the data that could be several days old. This does not work in rapidly changing markets. By the time the data has been analyzed and decisions are made, the market has changed again.
Cloud platform advantage: Businesses need to be able to match the pace of the markets. True digital solutions like Eka provide you with real-time data that results in opportunities.
To sum up, legacy CTRM systems are inflexible and add to- instead of reducing- the woes of commodity companies. This impacts decision making and productivity. Enterprises need a robust cloud commodity management platform. In order to be efficient, agile, and scalable; it is essential to look towards digital CTRM platforms like Eka. Click here to ask for a demo!