Big  Data  and  Cloud  Compu0ng  technologies  applied  to  the  energy  sector:  from  buzzwords  to  market  

op0miza0on  through  an  SaaS  solu0on  

 Dogma  Enterprise  project  

Data  Philosophy.    Best  prac0ces.  

Efficient  Marketplace.    

Presenter  Alessandro  Piacen0ni,  Cer0fied  FRM  Email:  apiacen0ni@dogmaenterprise.it  Mobile:  +39  3926788834  

Dic0onary  

Defini0ons  from  Wikipedia,  the  free  encyclopedia  

§  So#ware  as  a  Service  

SaaS  is  a  soSware  licensing  and  delivery  model  in  which  soSware  is  licensed  on  a  subscrip0on  basis  and  is  centrally  hosted.  It  is  some0mes  referred  to  as  "on-­‐demand  soSware”.  SaaS  is  typically  accessed  by  users  using  a  thin  client  via  a  web  browser.  

§  Big  Data  Big  data  is  a  term  for  data  sets  that  are  so  large  or  complex  that  tradi0onal  data  processing  applica0on  soSware  is  inadequate  to  deal  with  them.  Big  data  challenges  include  capturing  data,  data  storage,  data  analysis,  search,  sharing,  transfer,  visualiza0on,  querying,  upda0ng  and  informa0on  privacy.  

§  Cloud  Compu7ng  Cloud  compu0ng  is  an  informa0on  technology  paradigm,  a  model  for  enabling  ubiquitous  access  to  shared  pools  of  configurable  resources  (such  as  computer  networks,  servers,  storage,  applica0ons  and  services),  which  can  be  rapidly  provisioned  with  minimal  management  effort.    

§  Electricity  and  Gas  deregulated  marketplaces  

In  economic  terms,  electricity  is  a  commodity  capable  of  being  bought,  sold,  and  traded.  An  electricity  market  is  a  system  enabling  purchases,  through  bids  to  buy;  sales,  through  offers  to  sell;  and  short-­‐term  trades,  generally  in  the  form  of  financial  or  obliga0on  swaps.  Long-­‐term  trades  are  contracts  similar  to  power  purchase  agreements  and  generally  considered  private  bi-­‐lateral  transac0ons  between  counterpar0es.  

§  Hybrid  Cloud  A  hybrid  cloud  is  an  infrastructure  that  includes  links  between  one  cloud  managed  by  the  user  (typically  called  “private  cloud”)  and  at  least  one  cloud  managed  by  a  third  party  (typically  called  “public  cloud”).  Some  hybrid  clouds  offer  only  a  connec0on  between  the  on  premise  and  public  clouds.  

§  Microservices  architecture  

Microservices  is  a  variant  of  the  service-­‐oriented  architecture  (SOA)  architectural  style  that  structures  an  applica0on  as  a  collec0on  of  loosely  coupled  services.  The  benefit  of  decomposing  an  applica0on  into  different  smaller  services  is  that  it  improves  modularity  and  makes  the  applica0on  easier  to  understand,  develop  and  test.  Microservices-­‐based  architectures  enable  con0nuous  delivery  and  deployment.  

Secng  the  scenes    

How  many    Trading  &  Risk  professionals?  

How  many    power  &  gas  SMB  

representa7ves?  

How  many  forecas7ng  experts?  

How  many    data  scien7sts?  

The  Dogma  project  

The  Dogma  project  began  with  the  intui0on  from  a  pool  of  professionals  with  outstanding  experience  in  consul0ng  and  delivering  advanced  IT  solu0ons  for  Energy  and  U0li0es  top  0er  players.    Problem  Regulatory  and  business  pressures  are  squeezing  all  the  margins  available  for  small  and  medium  par0cipants  in  the  Electricity  and  Gas  marketplace.    Opportuni7es  -­‐  various  na0onal  and  interna0onal  regulatory  authori0es  push  for  Trading  and  Risk  Management  processes  

standardiza0on  and  improvement  -­‐  Cloud  Compu0ng  and  Big  Data  informa0on  technology  spaces  during  the  last  5  years  undergo  a  wondrous  

transforma0on  

The  idea  -­‐  Inves0gate  on  the  possibility  to  serve  small  and  medium  businesses  releasing  a  Cloud  based,  data  driven,  best  prac7ce  tailored  So#ware-­‐as-­‐a-­‐Service  solu0on  to  support  their  Trading  &  Risk  Management  and  Forecas7ng  processes  

-­‐  Provide  the  various  services  providers  (for  example  market  data,  forecasted  prices,  forecas0ng  algorithms  providers)  with  a  standardized  solu7on  to  “plug  in”  their  solu7ons  and  easily  serve  their  audience  

Electricity  market  challenges…an  extract  

§  Increasing  regulatory  pressure  

§  Imminent  release  of  disrup7ve  technologies  

§  Need  for  real-­‐7me  analy7cs  on  massive  amount  of  structured  and  unstructured  data  

§  Fragmented  services  providers  environment  

Aiming  to  increase  market  stability  and  secure  power  and  gas  ecosystems,  both  na0onal  and  interna0onal  regulators  intensified  pressure  on  market  par0cipants  to  consistently  manage  and  disclose  exposure  and  physical  

§  Power  accumulators,  IoT,  electric  vehicles  §  Big  players  investments  place  to  develop  on  in-­‐

house  solu0ons  leveraging  the  latest  technologies  

§  Structured  and  unstructured  business  data  advanced  management  

§  Real  0me  data,  measurement  and  informa0on  needed  to  strive  the  business  

The  market  arena  consists  of  plenty  medium,  small  and  very  small  businesses  providing  customers  news  feeds,  market  data,  prices  forecas0ng,  forecas0ng  algorithms,  pricing  models  and  other  similar  services  in  an  unstructured  and  decontextualized  manner  

§  SMB  are  required  to  quickly  adapt  business  processes  and  underlying  technologies  to  con0nuous  changes  to  the  business/regulatory  framework  

§  Disrup0ve  technologies  (i.e.  power  accumulators,  IoT,  electric  vehicles)  need  advanced  automa0on  to  be  governed  

§  Investment  is  in-­‐house  solu0ons  going  to  increase  the  digital  divide  between  big  players  and  small/medium  businesses  

§  Manual  collec0on  of  market  data,  measurements  and  business  informa0on  must  be  replaced  by  fully  automated  solu0on  to  focus  on  core  business  

Each  market  par0cipant  is  requested  to  setup  and  maintain  costly  processes  to  integrate  this  services  while  collect,  histories  and  normalize  business  relevant  data  

Dogma  Enterprise:  SaaS  solu0on  with  embedded  analy0cs  

Dogma  Enterprise:  SaaS  solu0on  with  embedded  analy0cs  

Dogma  Enterprise:  target  func0onal  coverage  

Key  benefits  

§  Minimal  implementa7on  effort  and  upfront  costs  

ü Shortened  ini0aliza0on  0me  (4/6  weeks)  ü Reduced  ini0al  investment  cost  compared  with  similar  On-­‐premises  ü  IT  infrastructure  managed  remotely  ü Minor  IT  involvement  required  ü …  

§  Minimal  on-­‐going  costs  

ü Centrally  managed  and  na0ve  scalable  environment  ü No  hardware  costs  ü Cost  structure  which  follows  the  customer  business  lifecycle  and  scales  up/down  very  quickly  ü Mul0tenancy  approach  enables  implementa0on  costs  op0miza0on  and  cross-­‐funding  ü …  

§  Scalability  and  accessibility  

ü Solu0on  enhanced  and  released  centrally  to  the  customers  with  low  costs/effort  needed  ü Planned  upgrades  required  to  adequate  services  offered  to  internal  or  external  (i.e.  regulatory)  changes  

centrally  design  following  best  prac0ces  released  to  the  customers  ü Available  from  any  desktop  and  mobile  device  ü …  

§  Quick  and  measurable  cost  benefits  

ü High  business  processes  automa0on  facilitate  opera0onal  risk  mi0ga0on,  superior  data  and  processes  quality,  increased  monitoring  capabili0es  

ü Enables  the  realloca0on  of  customer  focus,  teams  and  investments  on  core  business  ac0vi0es  ü Reduced  costs  of  collec0ng  and  managing  business  data  with  more  details  ü …  

§  New  business  opportuni7es  

ü Expand  the  business  to  new  physical  and  financial  markets  ü Extend  the  asset  classes  in  porlolio  with  new  financial  instruments  (i.e.  weather  op0ons)  ü Reduce  Opera0onal  Risk,  enhance  Market  and  Credit  Risk  capabili0es  ü Leverage  scalable  computa0onal  power  and  storage  capabili0es  ü …  

Stakeholders  Management  

Requirements  gathering,  Solu0on  Design,  Implementa0on  (SCRUM)  

Users  onboarding  

Business  model  defini0on  and  R&D  

2017   2018  

Dogma  -­‐  Horizon  2019  

Reference  and  market  data  collec0on  

Hybrid  cloud  implementa0on  

Golden  Customers  iden0fica0on  &  engagement  

Business  model  defini0on  

3rd  party  services  integra0on  

IT  Research  and  Development  

Feasibility  study  

Market  Risk  Management  

Financial  contracts  Management  

Third  party  service  providers  iden0fica0on  &  engagement  

Porlolio  Management  

Regulatory  Repor0ng  

Physical  contracts  management  

Alloca0on  and  scheduling  

User  specific  Master  data  management  

Alpha  clients  Beta  clients  to

day  

Contact  :  Alessandro  Piacen0ni,  Cer0fied  FRM  Email:  apiacen0ni@dogmaenterprise.it  Mobile:  +39  3926788834  

Big  Data  and  Cloud  Compu0ng  technologies  applied  to  the  energy  sector:  from  buzzwords  to  market  op0miza0on  through  an  SaaS  solu0on