ETRM / CTRM Transformation & Modernization Report
I had the opportunity to review a pre-release version of Molecule’s ETRM/CTRM Transformation & Modernization report which they have published today. They compiled feedback from over 200 participants across the industry including producers, consumers and traders across a broad range of commodities.
One of the key takeaways of the report is that 24% of respondents indicated a modernization initiative is currently underway, while an additional 66% indicated a modernization initiative is planned for the near future.
Cost and executive buy-in were the top two modernization challenges for mid-size companies, while embedded legacy systems and executive buy-in were the top two modernization challenges for large companies.
Across all respondents, 70% indicated their current system does not support all the necessary business practices, and 21% indicated their current system doesn’t support everything they trade.
For trading organizations, the key drivers to modernize their risk operations are agility and analytics, as the pace of trading continues to increase.
These findings are consistent with trends ComTech is observing in the market. For ComTech, the move to digitalize continues to drive investment in cloud and SaaS CTRM and related software and our forthcoming 2024 Market Sizing Study report will demonstrate this conclusively. Meanwhile, a large replacement market is emerging as in place legacy solutions grow older and harder to work with, maintain and enhance for new requirements. However, rather than risky and costly replacement, ComTech sees firms supplementing legacy with more cost effective and easier to implement cloud and SaaS-based solutions.
Trading and risk analytics are increasingly important as these markets evolve – particularly around the energy transition as our soon to be published VPP research report shows. Real-time risk is increasingly deemed to be mandatory and increased emphasis on data requires a focus on performance and security, and that will only magnify as AI gains traction. Customers are seeking solutions with increased levels of efficiency and automation across the entire supply chain.
The full report can be viewed on Molecule’s website via this link: https://molecule.io/resources/reports/2024-transformation-modernization.html
Keep in touch and sign up to our Newsletter
