Allegro Study: 94 Percent of Commodity Businesses Believe Advanced Analytics are Key to Future Growth

12 September 2018

Commodity businesses turn to advanced analytics to manage explosive amounts of data as they face changes in price volatility, geopolitics, and regulatory requirements

SINGAPORE, September 12, 2018 – Commodity volatility is increasing at an alarming rate, forcing market participants to adopt new business strategies and implement innovative technologies that enable fast and agile responses to perpetual changes. Because of this trend, Allegro Development Corp., the world’s leading commodity management software provider, recently conducted primary research of 145 Asia-Pacific based commodity executives on their near-term plans for combatting market volatility.

This survey found the following noteworthy statistics:

  • 94% cite that advanced analytics are key to future growth
  • 84% say they are planning to improve their organizations’ analytics capabilities within the next 3 years
  • 77% cite price volatility and geopolitical uncertainty as their largest areas of concern in regards to trading strategy and operations
  • 73% report their risk management solutions are not robust enough to meet current volatile market requirements

Businesses across the globe are faced with dramatically increasing price volatility and geopolitical uncertainty. Supply sources are being disrupted now more than ever as importers such as the US are becoming top exporters and the energy mix changing due to more liquefied natural gas (LNG) and renewables coming online. Current geopolitical uncertainties are increasing daily with volatile events including Brexit, the ongoing conflict in the Middle East, and the threat of trade wars; and businesses are taking note of the fact that these issues can have a direct impact on their margins. As the market continues to change, industry participants must find new and innovative ways to manage risk and volatility, navigate changes in logistics, service customers, and balance supply and demand.

Additionally, the volume of data in the world is growing at an unprecedented rate; but raw data alone is not enough for enhanced commodity management in today’s volatile market. The key to success lies in extracting knowledge from the data, which can be done with forward-compatible enterprise ETRM software and advanced analytics.

“I’m not surprised that 94 percent of our survey respondents recognize that advanced analytics are critical to future success,” said Michael W. Hinton, Chief Strategy and Customer Officer, Allegro Development. “Many businesses I’ve interacted with in the Asia-Pacific region, as well as the rest of the world, have communicated that they need better data and risk management capabilities; and most are ready to invest in flexible and scalable commodity management software with advanced analytics that can provide these capabilities and align with growth strategies as the market changes.”

As leading Asia-Pacific based commodity businesses continue to look to the future, many are turning to Allegro’s advanced analytics and commodity management software.

“Allegro’s recent acquisition of Financial Engineering Associates (FEA), the gold standard in quantitative analytics, has become a cornerstone of Allegro analytics,” said Frank Brienzi, CEO, Allegro Development. “Allegro analytics covers thousands of different instruments and assets, giving customers the ability to model the breadth of their enterprise portfolios and better respond to market changes. Allegro’s flexible and cloud-enabled ETRM software solution, coupled with advanced analytics, brings to the market an enterprise solution that leads to enhanced portfolio pricing, valuation, decision support, risk management, and physical asset optimization.”

About Allegro Development
Allegro is the global leader in commodity management software for companies that buy, sell, produce or consume commodities. For over 30 years, Allegro has delivered position visibility, risk management, comprehensive controls and regulatory compliance through a forward compatible, next-generation architecture that is built for your business. Allegro’s proven CTRM software innovation and flexibility, coupled with a strong global network of industry partners, makes its solutions the best on the market for full commodity portfolio management.

Headquartered in Dallas, Texas, Allegro has offices in Houston, Dubai, Jakarta, Singapore, London, and Zurich.

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About ION Group

ION Group provides mission-critical trading and workflow automation software, high-value analytics and insights, and strategic consulting to financial institutions, central banks, governments, and corporates. Our solutions and services simplify complex processes, boost efficiency, and enable better decision-making. We build long-term partnerships with our clients, helping transform their business for sustained success through continuous innovation. For more information, visit

About ION Commodities

ION Commodities delivers data-driven energy and commodities trading and risk management solutions across the supply chain. Our scalable ETRM and CTRM solutions equip clients to use real-time risk analytics and reporting, minimize supply chain risks, automate critical business processes, and make faster, more informed decisions. We provide full support and transparency for procurement, supply, and trading to a global community of over 1,200 clients. For more information, visit