Large national or multinational corporations must take the weather into consideration at every level of management, as it directly impacts both everyday operations and potential revenue.
Research by the International Chamber of Commerce reports that extreme weather events have cost the global economy more than $2 trillion over the past decade, and these costs are borne by every company.
A standard weather app, such as Apple Weather, is sufficient for the general public, but it does not provide the international scope and rapid refresh times necessary for large corporations. These companies require enterprise weather data solutions that support thousands of daily queries across multiple locations and integrate with their existing software.
Every Industry Is Weather-Dependent
There’s a common misconception that only certain industries need to worry about the weather, like agriculture, hospitality, or energy production. However, there are hidden costs associated with weather events that impact every company.
Database as a Service (DBaaS)
Database as a Service provides computing resources to other companies via metered access. This benefits customers by enabling remote access to key information while reducing the need for on-site infrastructure.
Cloud computing relies on a stable internet infrastructure and energy grid, as well as physical infrastructure such as server rooms and cables. Even a small thunderstorm can knock down power lines, resulting in severe downtime that extends far beyond the local area. Any company that relies on its DBaaS vendor has now lost critical access to cloud computing for hours or even days.
Information Technology
Supply chains impact both digital-first and brick-and-mortar stores. If a software company needs to replace its laptops, but a snowstorm has left trucks stranded, thousands of dollars in lost productivity can scuttle the quarterly financial report and potentially result in lower stock prices.
IT companies often have remote workers who are just as vulnerable to the weather. The company’s central office may have clear skies, while its workers are suffering from internet disruptions due to heavy storms, high winds, or heat waves. This results in significant lost productivity and delayed deadlines.
As such, even SaaS and technology companies must be mindful of weather systems that extend beyond their physical locations. Weather APIs enable users to stay up-to-date on both local and global weather systems.
Financial Services
Business lenders often overlook the critical role that weather plays in determining the soundness of a loan. They may outsource these calculations to insurance companies, failing to consider how weather insurance does not cover the true cost of business disruptions.
For example, a business in Tornado Alley may file an insurance claim, but it will have lost days or weeks of revenue while it rebuilds its storefront and replaces lost inventory. This could lead to loan default and an expensive legal battle while the lender tries to recoup some of its investment.
Lenders working with tourism-dependent companies, such as tour guides or hotels, will also need to consider how extreme weather affects a company’s revenue. Airbnbs often incur substantial losses during hurricane season due to cancelled flights, travel delays, or guests choosing not to visit because of the risk. The Airbnb host may default on their mortgage despite having the upfront capital to cover the down payment because of changing weather patterns.
How Weather APIs Are Integrated Into ERP Systems
Weather APIs are a DBaaS model. The vendor maintains a database of weather data sourced from organizations such as the National Weather Service, the European Centre for Medium-Range Forecasting, and, in some cases, personal weather stations that have opted in to data collection. This data is harvested, cleaned, and standardized using algorithms to create a coherent picture of current conditions.
Using an API key, users can query past, current, or future weather conditions for a chosen location. The output is provided in JSON or CSV format, depending on the user’s query, which can then be displayed in an ERP software or application.
Rather than users having to check a separate application or refresh the app themselves, the API key can automatically run the same query on a set schedule and present the results in the same dashboard users rely on for their other management needs.
Regardless of your niche, weather will influence daily operations and overall revenue, meaning that integrating a weather API into enterprise resource planning software is a smart business decision. IT, finance, and SaaS companies can all benefit from consistent access to global weather data to understand how the climate will impact daily operation decisions and financial forecasting.
