Published 7 February 2019
At Pioneer Solutions, one goal never changes, and that’s our commitment to approach every engagement with our existing and prospective customers with one objective in mind; ensuring their success and satisfaction. We want them to know how our C/ETRM solutions will benefit their operations through increasing process efficiency, reducing cost, minimizing operational risks while maximizing business opportunities. As a true Pioneer, we continuously innovate, living up to our hard-earned reputation of delivering next-generation solutions that the market demands. While doing exactly that, we have collected during our engagements with prospective customers: 8Telling findings that C/ETRM has changed.
Many C/ETRM systems are not really a “Live” system with near real-time updates
When asked how quick reports are updated, the response is through End-of-Day processing or later in the afternoon at the earliest. To manage exposures and capitalize on opportunities, it requires a live, real-time system with automated market connections where market pricing gets fed in, exchange trades imported, and position updates shown instantaneously.
Most C/ETRM system neither support Non-standard deals and Settlement nor complex settlement (i.e. C&I Billing)
Yes, most of the C/ETRM system we run into, can only support standard deal and contract settlement (price * volume), or sometimes can’t even produce an invoice. Companies are deploying an army of settlement analysts to manually account for their structured trades and imbalance calculations. Pioneer’s Settlement solution has a notion of Billing Determinants and Charge Types that will be able to automate complex contracts. This functionality is also required if one wants a complete P&L reporting.
Few C/ETRM systems provide ease of extension with minimal technical support
Conditioned by legacy system limitations when it comes to data models, business logic, importing data etc, the default expectation by IT staff is they need to get to the database tables to allow them to extend system functionality. Not only very 20th century but also not recommended as it will hold them back when software gets upgraded or those extensions must be redone (cost). Pioneer’s next generation C/ETRM offers a different approach where a software upgrade has no impact to the customer, by providing functionality for user defined fields and user defined tables that can be added to extend data models such as on deals, counterparties etc, mapping tables to allow users to easily add data such as tariffs or taxes, time series data support, data import/export rules, and innovative reporting including Excel Add-in.
The C/ETRM implementation Project Approach is changing
Today, companies undertaking implementation of C/ETRM systems seek to reduce the risk of delays and exceeding budget but still rely on legacy technology and approaches where an army of consultants is being engaged. Pioneer’s differentiators are not limited to its state-of-the-art software, but also how this has been designed so that it can be implemented in an efficient (Agile) and cost-effective way. Moreover, Pioneer brings the experience of replacing existing well-known C/ETRM systems.
Ease of Integration leaves much to be desired
Integration with other systems and markets is not what legacy C/ETRM solutions are equipped to support. Yet we live in a world where traders and portfolio managers and their colleagues in risk management, must have the information about their business at their fingertips. A modern C/ETRM system, like Pioneer’s TRMTracker, relies on an architecture that has embedded middle-ware technology that supports ease-of-integration with support for a variety of formats for both inbound and outbound interfaces, from user configurable flat-file methods, to XML, SOAP webservices, FIX APIs, and REST based webservices.
Cloud being a better business model
While cloud hosted solutions are overtaking traditional delivered software, we still find some companies holding back. With cloud-based solutions, all the cost and risk of the upgrade is the responsibility of the vendor, who therefore has an incentive to make the cost of upgrading as small as possible. Apart from that, companies should honestly factor in all the costs of ownership: hardware, software, maintenance, upgrades and innovation. When it′s all on the table, then real “Cloud Computing” wins out every time because it is fundamentally a better business model for the company and the vendor.
Growing business are held back by entry level systems that stifle growth and unreliable manual processes cutting into performance and profitability.
Driven by tech-savvy users who grew up on digital, successful companies are looking for new ways of implementation, innovative delivery methods, and quick service. Pioneer’s www.trmtracker.com offers comprehensive front-to-back functionality and enables making the step to digital transformation easier, leveraging an innovative self-serve approach, thereby delivering a less costly next-generation C/ETRM commodities trading and risk management software solution.After receiving a short tutorial and some basic implementation support, the user can do this self-configuration and expect to be up and running in 1-2 weeks. This includes entering actual trades, reviewing Mark-to-Market, monitoring Credit Risk, and producing invoices and performing reporting. Note to mention, our resources on www.tramtracker.com will allow new users to quickly learn and old users to stay up to date with several tutorials and examples.
There is a quiet revolution for specialization, modularity or reduced functionality
There is a quiet revolution in the C/ETRM market where specialization, modularity, or solutions with reduced functionality are meeting the needs of market participants looking to reduce the cost of maintenance, upgrade cycles and over-customized functionality. The good news is there are options: To cover the functional C/ETRM priorities the market is calling for in a front-to-back C/ETRM system, look for one that is designed from the BACK to the Front, such as TRMTracker, available as Enterprise or Non-Enterprise edition (SaaS). To cover selected applications areas that are weak in your current environment, look for proven best-of-breed (or best in class) offerings for each such application area, such as Pioneer’s SettlementTracker.
Source: Pioneer Solutions – 8Telling Findings that C/ETRM has Changed