Why Advanced Analytics Requires a Platform Approach
February 03, 2020
The power of data in commodity management is well established. In today’s fast-paced world, businesses cannot afford to make important decisions without analyzing data. You need to evaluate opportunities objectively, not just rely on gut instinct, historical events that may no longer be relevant, or guessing.
Obstacles to successful data analytics
Unfortunately, the value of data can be hampered by information stuck in data silos. Most organizations still work with isolated systems that require users to manually aggregate data – often in spreadsheets – for analysis.
A good example of this is broker reconciliation, an important process for commodity-intensive companies. Reconciling broker/clearer statements with transactions from trade management systems ensures all orders are received and invoices are processed correctly. Even top-tier organizations often rely on manual reconciliation processes that require several people to spend multiple days integrating data from dozens of spreadsheets. The process is time consuming, error prone, and must be repeated every month.
Without data silos, all reconciliation data can be brought together in one system, enabling a faster and more accurate reconciliation.
Data silos also create data confusion. When departments work in data silos, they end up running reports using the data in their system without visibility into the rest of the organization. Everyone believes their version of data and reports is accurate, but with each department running different analyses at different times, multiple reports are generated that can vary significantly. Some may be using older data because their systems update daily while others update hourly. Some departments may have access to more information, so their reports reflect a more complete picture.
With data silos, it’s hard to ensure everyone is working with the same data.
The value of real-time data in commodity management cannot be overstated. Right now, commodity markets are falling because of the coronavirus outbreak in China. If you are buying or selling commodities in China, this information is impacting your business now. You cannot afford to wait days or weeks to analyze the impact of a virus that is impacting commodity prices and accessibility in real time.
The true value of data is the insights it enables. Data alone provides a picture, but analyzing data enables you to look beyond what is happening to understand why. The sooner you know why, the sooner you can plan a course of action to take advantage of opportunities or minimize losses. The ability to access and analyze data in real time enables companies to react smarter and faster to market disruptions, so you can reroute shipments, revise contracts, and safeguard your profits.
A platform approach to commodity management removes these data obstacles. The platform is built on one shared source of data – all the data your company needs to run its business. Every application has full access to all this data in real time, on demand, whenever you need it.
The power of one data source – comprehensive and available to everyone when required – is the power to have one, accurate view of your business. Everyone uses the most recent data, so no analyses occur with outdated data. Everyone is analyzing the same data, so all departments are aligned. Days of effort are saved because the data is all integrated. That reconciliation process referenced above now takes just seconds, not days.
The commodity management platform enables faster, smarter analytics, harnessing the power of big data to enable you to make better decisions. Analyze operations and logistics, purchasing, potential trades and more at the click of a button. Remove the delays and manual processes and get the most value from your data today.
Mary DeFilippe spends her days creating engaging content – blogs, white papers, articles, and more – that helps readers better understand new technology. She can frequently be found walking around the office listening to heavy metal music while pondering ideas for her next blog.