Selecting and implementing a new ETRM system
Enabled better response to Market Dynamics, Time to Market, increased efficiency, and reduced costs at a major energy company.
Key results
- Internal alignment on best solution and strategic direction
- Selected system that was fit for purpose
- First transaction within only 6 months
Who is this case suited for?
- Major Energy firms with Trading operations
- Large-sized companies
- Energy Trading & Portfolio Management; IT; ETRM Programs & Transformation
Summary
A major energy client made a strategic decision to select and implement a new Energy Trading and Risk Management (ETRM) system to better manage:
- Market dynamics
- Improve control, time to market and reporting
- Increase efficiency
- Reduce support and maintenance costs
Key challenges
The current system landscape presented a few challenges:
Too focused on hedging the production of the group’s assets instead of performance and profit
Mix of internal applications and external systems, which led to a lack of knowledge and documentation
In time, led to more costs and delayed time-to-market
No clear common view on the solution, how it should affect internal processes, or how to structure the selection and implementation process
The ask
Initiate and plan the project.
Lead and manage the system selection and implementation phases.
Assist in identifying and onboarding resources to the project.
Support in negotiations with system vendors.
Coordinate and manage all internal and external project resources.
First Transaction in just 6 months
- Identify the problem
- Manages the Request for information (RFI) and Request for Proposal (RFP)
- Delivered on time and with a unanimous view on the best solution.
- Continuous involvement in implementation phase
- First transaction on the new ETRM completed within six months
Success in the approach
The focus was on organizing, structuring, and running the system selection phase:
- Ensure alignment between business requirements and strategy, including preferred ways-of-working of the Front, Middle, and Back Offices.
- Thorough identification of current and future conditions, which involved a selection criteria, a scoring model, and sending out a request for proposal to various system vendors.
- Compilation of solutions and system vendors’ shortlist, later leading negotiation and approved by Steering Committee.
- Planning, structuring, and execution of the implementation phase in cooperation with all parties (customer and vendor), using an agile approach.
Key Learnings
Cost-effectiveness
These projects tend to be oversized. Select fewer but experienced resources.
A combination of business and IT expertise
to challenge the organisation and effectively implement change.
Less is more
Assemble a smaller team that can cover multiple roles, shortening lead times.
CommodityFirst
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