The crash in crude oil prices, distress at traditional electricity utilities and other industry woes are having an impact on the technology spending practices of energy trading firms. Budget constraints are now viewed as the number one IT challenge facing energy companies, according to the 2016 Energy Risk Energy Trading and Risk management (ETRM) software survey.
CHALLENGE: Budget Constraints
Consultants interviewed for a recent Energy Risk article estimate that IT budgets in the energy industry are on average 20–25% lower in 2016 than last year, in line with overall spending cuts, with some oil and gas companies cutting by as much as 35%. At the same time, regulatory requirements and a challenging economic environment are placing more demands on the IT function than ever before, say consultants and chief information officers (CIOs). Almost 29% of respondents deemed budget constraints the biggest IT trial of the last 12 months, ahead of other major headaches such as data integration, the processing of nonstandard structured transactions and connectivity between different ETRM systems.
CHALLENGE: Integrating Data from Multiple Sources
The integration challenge today is mainly around internal customized integration – integrating data from multiple sources, be it from pricing systems or multiple ETRM systems. Typical challenges would be to integrate the ETRM system, particularly legacy systems or in-house custom build, with downstream risk engines, optimization tools, data warehouses, enterprise credit solutions and general ledgers. IT departments are not only involved in creating solutions for business processes, they are also being held responsible for making sure those solutions are cost effective and valuable. Total Cost of Ownership (TCO) is identified as the top, overriding issue for data managers, and the ability to integrate is a main corporate priority.
MarketView’s Data Integration Solutions Answer Business, Economic, and Regulatory Concerns.
Application vendors are rising to the challenge with more out-of-the-box integration risk functionality that provides open application programming interfaces (APIs), data mapping and connectivity configuration.
With MarketView’s Data Integration Solutions, MarketView customers benefit from seamless data integration. Accessing internal and external data across an organization from a single source results in tremendous efficiency, consistency, and reduced risks. Powerful API solutions facilitate the access and integration of mission critical market data to an organization’s important downstream applications. In addition, transparency around access and usage further reduces risk and alleviates regulatory pressures. Data integration improves accuracy, timeliness, quality and transparency of information with all involved departments receiving the same streamlined data in real-time.
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