CTRM / CM as an Architecture A ComTechAdvisory Whitepaper top-tier vendors indicate that such an approach is in the offing through the leveraging of cloud technologies for some or all parts of the horizontal capabilities noted above, in addition to already available commodity specific point solutions that are also moving to the cloud. Additionally, ComTech has had experience working with a few top-tier commodity firms who have decided upon a buy and build approach – licensing solutions from both established vendors and some of the interesting new entrants into the space- supplemented by horizontal capabilities like reporting or data analytics, either built in-house or licensed from firms that would not fall within the definition of CTRM vendors. Additionally, ComTech has been exposed to a number of admittedly early day platforms that do appear to be following a‘ CM as an architecture’ first and foremost approach.
Given these companies relatively successful experiences, and the strategic decision by some CTRM firms to embrace a cloud-based horizontal services approach, it does appear that after the endless discussion of buy or build that have circulated in this market for multiple decades now, the right solution is ultimately the hybrid approach of buy and build within the context of an overarching CTRM architecture.
The benefits of adopting such an architectural approach to solving the problem include:
/ Ability to leverage mature and functionally rich commercial solutions that excel in meeting the needs of certain commodities, unique supply chains, and particular business functions
/ Componentized upgrades / fixes, reducing testing and upgrade burdens that would otherwise be imposed by monolithic enterprise scale solutions
/ Addressing the real-time aspects of risk and position reporting required in some markets / commodities that are often missing from an all-encompassing CM solution, yet have a consolidated and visually rich presentation of companywide risks via leading horizontal risk and reporting solutions
/ Addressing the specific needs of trading firms with those of those who move and manage physical commodities, better enabling optimized hedging strategies and / or optimized commodity value along the supply chain( physical location swaps, inventory plays, etc)
/ Ensuring that data of record is consistent, properly maintained and husbanded throughout the process
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