Reports Allegro CTRM Value Study Report 2014 | Página 2

CTRM Value Survey and Analysis

Report Background and Overview
The environment of physical energy and non-energy commodity trading and marketing has grown increasingly complex, marked by
globalization bringing about rapid changes in supply and demand patterns, increased regulatory scrutiny and evolving trading and reporting
rules, volatility along the entirety of the physical supply chain, and increasing uncertainty as to future price movements. In order to react to
these changes quickly and appropriately, participants in these markets must increasingly rely on a sophisticated infrastructure of software and
technologies to ensure a complete view of their trading positions and external market conditions that can quickly and severely impact their
values. The core component of these now requisite trading and marketing technologies are energy and commodity trading and risk
management (CTRM) systems.
As market complexity has increased and multi-commodity trading has become more common, CTRM solutions have had to become more
sophisticated and provide a greater depth of capability in order to capture and value the unique characteristics of the multitude of physical
commodities being transacted along the physical supply chain, from source to market. Given the capabilities of these CTRM systems, they do
represent a significant investment for any trading or marketing organization, generally trailing only the large scale ERP solutions, like SAP, in
terms of costs to purchase and implement.
Allegro Development, one of the world’s largest CTRM solutions providers, engaged Commodity Technology Advisory to conduct a survey of a
number of their clients to determine their views as to the value of their investment and the operational and financial impacts of deploying
Allegro’s CTRM solution.
This report summarizes the results of that survey and discusses the key considerations for any company seeking to develop their own
assessment of the value of their CTRM technology investment via a Return on Investment (ROI) calculation.

Copyright 2014

Commodity Technology Advisory llc

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