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Building for growth: Why the future of commodity and energy trading starts with a next gen CTRM/ETRM

Author: Dr. Vlatko Davidovski, Dr. Amitava Ghosh, Sebastian Priarollo, Alisha Khadka

Published: 2023


Despite turbulent markets, one sector that has seen a strong boom in activity and profitability in the last year is undoubtedly the commodity and energy trading industry. With reported profits at an all-time high across several industry majors, the future certainly appears bright. Nevertheless, volatile market conditions, the need to manage larger transaction volumes and respond rapidly to changing business priorities puts even higher pressure on the evolving technology landscape of commodity and energy players, thus creating both risks and opportunities. To win the growth race and maximize market opportunity, commodity and energy trading organizations will need to ensure a firm foundation, i.e. a next gen CTRM/ETRM system landscape. Building on our experience in business transformation across multiple industry-leading customers, we have defined 11 critical dimensions for evaluating a CTRM/ETRM’s maturity level and shaping a company’s digital transformation agenda in that space. These dimensions, derived from key industry and technological challenges and Cognizant’s experience in digital transformation in this domain, lay the foundation to design, build and deploy game-changing CTRM/ETRM capabilities. We also go one step further, showing 5 key recommendations for C-Suite executives to help structure their digital transformation agenda in this space and explain how such capabilities lead to tangible, long-lasting added value for commodity and energy trading players.

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