A C/ETRM Solution: The Way You Want It
The message from surveys in the Commodity/Energy Trading and Risk Management (C/ETRM) software market have been consistent in the past few years: Customers want less costly, proven C/ETRM functionality that is implemented faster, with reasonable flexibility as their business process is apt to change more frequently. This calls for a new approach with next generation technology at a lower cost of ownership, has customers looking beyond established C/ETRM vendors who dominated the market but struggle to meet new demands. Some of them already had their ‘Kodak moment’, while others are applying new lipstick. Pioneer Solutions offers state-of-the-art software that is designed for progress: A C/ETRM solution the way you want it.
As a result of the 2008 financial crisis, companies are currently navigating the realities of a changed market, with lowered prices, new regulations, as well as different consumer behavior and expectations. Market participants have little choice but to shake up their operations, reinvent and position themselves to find new growth categories by embracing disruption and innovation. A next-generation C/ETRM system enables the changes you are making as they may affect your infrastructure, operating and business model to support your next-generation ventures.
Front-to-Back or Modular
To be able to answer fundamental questions about supply & demand, portfolio performance, valuations, and profit & loss, requires an integrated system that handles the business processes from trade capture to settlement. For the large and complex organizations, it might be unrealistic or maybe unnecessary to replace an entire C/ETRM system. A budget-friendlier approach is where the vendor is capable of delivering a modular application that can be easily integrated and may add value in selected functional areas that require improvement. Think about a much more effective settlement solution that leaves none of your valuable money on the table for both your standard and non-standard contracts. For the less complex market participants, a cost-effective solution is a set of standard front-to-back functionality as a baseline implementation for accelerated time-to-value.
On premise or True Cloud
On premise is the traditional deployment method for C/ETRM applications. Modern web-based C/ETRM solutions offer the customer to choose what they are comfortable with. Remote hosting in a true cloud environment and Software-as-a-Service, is starting to find more acceptance. Cloud deployment offers a host of benefits, including a lower total cost of ownership, faster deployment & implementation for speed-to-market, painless upgrading to keep the system up-to-date, no on premise hardware/software for reduced IT maintenance and complexity, and faster incident resolution to minimize impact on operations. As a result, web-based software delivered via the internet has quickly become a compelling and credible delivery model for C/ETRM applications.
Ease of Implementation
The combination of out-of-the-box functionality and the flexibility to configure without coding, form a solid base to ease the implementation process. Equally important is engaging with the customers’ team as a partner; actively collaborating creates a foundation for finding effective solutions and an environment where both have skin in the game and failure is not an option. This is further accommodated by following an iterative implementation methodology, such as an Agile process. This approach provides flexibility and adaptability to changes that invariably arise during the process. It’s designed to deliver small “wins” that demonstrate success, project momentum and therefore a positive customer experience.
Flexibility for Change
A very flexible and highly configurable front-to-back solution allows you to capture your current and future business requirements while minimizing future cost. Unparalleled configurability will allow you to accelerate your new product offerings you have in the pipeline: A flexible, hierarchical book structure along with template and formula-based software will support your changing business process while providing a high-degree of user control.
Other than the endured economic hardship following the 2008 financial crisis, the biggest impact has been the introduction of compliance reporting: Dodd Frank, REMIT, EMIR and now MIFID2 to increase the transparency across the EU’s financial markets. This has caused traders across to seriously look at their ability to comply. Legacy systems, or spreadsheet-based systems, have been and still are under scrutiny as they fail to deliver on those requirements, forcing companies to implement less-desirable interim solution. No surprise that modern C/ETRM system are the solution of choice for traders.
Lower Total Cost of Ownership
Achieving a predictable Total Cost of Ownership of your C/ETRM system requires a very flexible and highly configurable front-to-back solution. Such a solution will allow you to capture your current and future business requirements while minimizing additional cost. It offers any size company with the flexibility to use standard or model highly complex business processes, thereby configuring the system fit to the business process for optimal use and adoption by the users. Companies benefit from this user-configurable software, as it allows to adapt and extend for continued usage with minimum vendor reliance and ultimately resulting in a lower total cost of ownership over time.