The goal of this series is to provide a brief list of the top news stories each month for the energy and commodities trading and risk management industries. These stories come from some of the industry’s top sources, spanning from Bloomberg Businessweek to Oilprice.com.
Each year, industry experts and participants look to the Energy Risk Software Rankings as a means of subjectively valuing various ETRM software vendors. The rankings are generated from the results of a survey given out by Energy Risk that asks energy trading firms to nominate ETRM vendors, implementation specialists, data vendors and data managers they think shine above the rest. This year’s survey, carried out during November 2014 and January 2015, received 282 valid responses. Pioneer Solutions was ranked in the Top 5 for 20 Different Categories! The highlight of this year’s rankings, however, was being ranked #1 for Project Delivery On-Time and Within Budget.
It is that time of year again—Energy Risk USA 2013 is rapidly approaching and associate sponsor, Pioneer Solutions, is eagerly preparing for what is expected to be a great event. The 17th annual Energy Risk USA will take place May 14-15th at the Hilton Houston Post Oak in Houston, Texas. Preand post-conference workshops will take place May 13th and 16th, respectively.
This year, representatives from Pioneer will be on-site to answer questions and discuss their next generation C/ETRM solutions.
Energy Risk recently released the results of their 2013 Software Survey and Rankings. In these results, ETRM software vendors were ranked in several different categories on a variety of capabilities. (For Pioneer’s results, click here.)
In addition to surveying participants on vendor capabilities, the survey also gathered information from respondents about their plans and preparedness on certain issues. This year, the big topics were budget and regulatory compliance.
This year, Pioneer Solutions ranked in the top five in 15 separate categories, including No. 1 in Carbon Emissions. This is more than double the number of individual categories in which Pioneer was ranked in the previous year and nearly quadruple since 2011. Continue reading
Pioneer News and Announcements
- View our profile in Energy Risk’s 2012 Directory
- Review our Survey Recognitions
- New whitepaper coming soon!
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Top five (5) of ten (10) reasons that energy (commodity) trading and risk management -ETRM –CTRM and Emissions Management Information System -EMIS solution implementation projects fail and how to avoid the pitfalls.
1. Hard coded software rarely meets requirements; 80% is the avgerage fit to requirements requiring 20% (minimum) customization. This should not be a surprise to those that have been around software etrm implementations. Rarely does software meet 100% of requirements. One of the big reasons for this is that everyone in the energy trading and risk management space does business differently and likes to look at it differently. The key is to manage the 20%. To avoid rouge projects insist on a fixed price for the implementation, if that cannot be accomplished an iterative approach, where payment is made at the end of delivered iterations, should help ease risks. Also look for new technologies that are easily configurable (no coding needed) versus customizable (requiring coding expertise).
In today’s ever changing C/ETRM business environment, companies seeking C/ETRM software solutions must be careful to select solutions that can easily meet their requirements. Our experience with companies seeking C/ETRM software is that most clients require heavy customization to meet their unique business requirements. Most companies realize that buying off-the-shelf C/ETRM software systems at best will meet 60-80% of their needs. It is the other 20-40% of customization that clients must be aware of the costs and risks associated with delivery. In addition, companies need to carefully consider the cost of change management that can drastically increase the total cost of ownership of a C/ETRM solution over time.
There are a number of disadvantages to traditional methods of C/ETRM system software deployment, and failure to deliver is a common risk with even the most seasoned vendors. Traditional methods often lead to very long, expensive, highly disruptive implementations that fail to meet targeted business objectives. Why, because traditional, hard coded, C/ETRM technologies are often rigid in nature forcing companies to comply with the way the product manages the commodity instead of modeling the commodity the way they want to manage the asset. This often results in discontent from the users that are forced into a box. Also, the very nature of hard coded software requires lengthier and more costly delivery cycles because of the architectures inability to easily meet unique business objectives. Typically, a company’s return on investment is not realized until long after the project kicks off, if at all.
Longer implementations cause increased business disruption, and allow the project to be vulnerable to substantial expansions of scope and cost. As the project spans over a long time period, a company’s business needs often change and users will naturally have requests for additional functionality. These change requests must be added to the project scope, causing further increases in the project timeline, and higher costs of implementation.
Once implemented, change management often continues as companies business models evolve. C/ETRM solutions must be able to easily adapt to the ever changing business landscape. For example, the challenge of complying with Dodd-Frank requirements has companies, consultants and vendors positioning to meet the reporting requirements. Change management is often overlooked in the C/ETRM evaluation process. This can lead to cost overruns for years as expensive ongoing consulting is needed just to meet basic demands.
In contrast, Pioneer Solutions’ agile rapid iterative delivery enables organizations to quickly realize their targeted business objectives at a reduced project cost and with minimal risk. The mere nature of our Financial and Regulatory Risk Management –FARRMS architecture that requires “no coding” to meet unique business requirements is ideal for a true agile delivery methodology and for maintaining ongoing change. In addition, FARRMS’ template and formula-driven architecture is ideal for companies with unique business requirements because it is easily configurable with no coding needed allowing Pioneer professional services to model our clients business the way they want to view, manage and report the portfolio.
Rapid iterations that quickly meet objectives are the goal of our project team where each iteration is limited in scope and is focused on a specific customer objective. Our targeted approach enables continuous identification and management of project risks, and increased flexibility to manage change. As an organizations complex business processes evolve, adaptations are made quickly by leveraging the easily configurable (no coding changes are necessary to conform) FARRMS architecture that empowers the business user, not IT or consultants with the ability to manage change.
Pioneer’s unique delivery culture fully engages the customer throughout the process, with every effort centered on a specific business objective. The result is reduced project cost, minimized risk, and timely delivery of quality software that is directly aligned with customer requirements. This successful approach has been noted by the C/ETRM community with Pioneer Solutions being recognized for its superior “Customer Service” two years running in an Energy Risk Independent C/ETRM vendor survey.
“Pioneer Solutions’ rapid iterative delivery process allowed us to quickly replace our existing system for sourcing transactions within time and budget” said the Project Manager of a large Utility
We encourage you to visit us at www.PioneerSolutionsGlobal.com to find more on how we are changing the way ETRM-CTRM systems are implemented and managed.
Financial & Regulatory Risk Managment System (FARRMS) Enterprise Architecture