How summitBI solutions helped a top taxpayer leverage from the exchange rate dynamics

One of Tanzania’s renown top tax payer had been having stationary profits despite the top-line being high. This company had lost over 2 Billion in a period of less than 6 months which is more than 50% of the revenue generated during the same period. The profits were stagnant regardless of above 50million revenue being generated in a month. For the past five years, this company had failed to determine the root cause of the miserable bottom-line even after analysing the internal performance. With a large market share 0f over 80% such a company would be expected to financially glow which was not the case.

In July 2015, a team from Summit Consulting Ltd was approached to dig into the problem and design a business strategic plan for the company. We checked the company’s external performance and no problem was detected. A company’s performance is always affected by both external and internal factors. In this case the consulting firm investigated the macro factors that were anticipated to be affecting the performance of the company. Exchange rates interest rates, government regulations were some of the factors investigated. Little did this company know that the exchange rate was the problem.

How exchange rates affect a business financial earnings

It goes without saying that following exchange rates is extremely vital. International business requires having a very good sense of how your local currency is affected by other currencies and how that, in turn, has an impact on your exports, imports, suppliers and clients. The exchange rate may fluctuate daily with the changing market forces of supply and demand of currencies from one country to another.

Many emerging markets and developing economies around the world, including in Africa, have witnessed their currencies fall sharply in value over the previous years, mainly because of lower commodity prices and a reversal of capital flows.  A country’s foreign exchange rate provides a window to its economic stability and this why it is constantly watched and analysed. If you are thinking of selling or buying a commodity from overseas, you need to keep a keen eye on the currency exchange rates.

How the summitBI Algorithm Trading surged profits

The model is a multi-purpose model such as examining the whole market, relating all the currencies to each other, evaluating the likelihoods and carrying out the trades. The Summit Algorithm Model-built studies exchange rates and alerts financiers when to exchange their currencies before a significant rise/fall happens

This can be done in a very short period of time; the most innovative perform out all these functions in very few seconds. So, they are a very useful tool in reducing your workload. Instead of watching all your forex pairs in the morning, you can use an algorithm which signals you when the price reaches certain levels, or if certain parameters are met. To the ordinary trader or person, just hearing about algorithms would give them a perception of a complex electronic program built based on long arithmetic formula, but in reality, the trading algorithm model is simple.

Summit Consulting Ltd team built a trading model for this company where by the exchange rates for the previous periods are analysed. Basically, a predictive model was automated in the company’s system in which exchange rates and the factors that affect it are studied and analysed. This in turn helps to predict the trend of the exchange rates, when to make purchases and in which currency to conduct bank transactions hence leveraging from spot markets. It’s now close to 4 years and the company’s profits have continuously increased by more than 92.389% compared to the 45% stagnant profits that were experienced before they used SummitBI solutions.   Never have they experienced such a situation again. Summit Consulting Ltd aims at improving the client’s condition.

Why SummitBI solutions

For over 10 years Summit has been doing expert training based on business intelligence and we have a multitude of testimonials from our clients. Our talented expert trainers have had a vast experience with most of the tools that are used in business intelligence therefore you are assured of the quality delivered to you. From python, MS Excel. R to big data technologies like Hadoop. We ensure a modern and user-friendly platform for our clients’ needs. Summit not like other consulting companies is now engaged more in practical (hands on) skills where a student is given more than 40 hours on practical knowledge on various tools used explaining which tool does what best compared to the rest. Therefore, our student will leave knowing what to apply where, our training are not more of cram work.

At Summit we focus on working collaboratively with our clients to create a joint team. The agility the team uses includes planning meetings, product demos, daily scrum and retrospectives which is all an agile methodology to create visibility and this ensures our customers’ satisfaction because that is our main objective. For more of these business solutions or bookings for a training please visit us at www.summitcl.com

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