March 2020: This week ComTech advisory published a White Paper which gives an Overview of the E/CTRM replacement market, technologies, the vendor landscape and reasons for making a change.
Below you can find the link publication on their website:
ON PAGE 6 of the publication ComTech gives an example of a replacement strategy – ENUIT. Below is the extracted page.
AN EXAMPLE OF A REPLACEMENT STRATEGY – ENUIT
Enuit, an emerging vendor with a multi-commodity trading and risk solution called Entrade and which aims to ’give its customers complete visibility, insights, control and management over their business operations, helping them to have peace of mind to make quick and informed decisions that affect the bottom line,’ is one of the vendors targeting the developing replacement market. In order to do so, it has developed an approach. This starts with providing an effective implementation and testing framework with a prototype-driven approach. It also advocates replacements that operate with a parallel run mindset to reduce risks.
The idea behind the prototyping approach is to allow users to see as early as possible in the replacement how trades will run from front to back so giving early confidence in the delivery. The approach also helps to highlight any gaps early in the project. The testing and operation of the prototype is done using pre-prepared test portfolios that represent the user’s business and these are used to repeatedly test through a series of lifecycle processes covering front-, middle- and back office. Middle office processes and key controls are also tested so that end of day processes can be simulated and so on.
Enuit also strongly urges users to measure believing that what gets measured, gets done. It sees the key to successful testing and the prototype-based approach is to pre-measure (and maybe more than once) the trade calculations and process events within a ‘’test portfolio’’ so that the entire project team is working on the same set of constant data to first configure the system. Following this approach, it believes that the replacement can deliver advantages to the customer such as,
- Reducing the amount of rework and reconfiguration during the UAT and Parallel run,
- Iterative testing and small issues resolution creates immediate transparency into any CTRM project,
- Stakeholders are well informed,
- All test results, open issues, and measurable scorecards can then be used to arm the Project Management team and steering committee members to move forward the project from testing to Go-live.
In an example of a replacement at a global resources trading business with operations across Asia, Europe and North America handling a wide range of commodities in ferrous raw materials, steel products and non-ferrous raw materials, Enuit found a highly fragmented CTRM and IT landscape. This meant that the user suffered from substantial issues including;
- High levels of tedious manual effort,
- Inconsistent information, error and omissions,
- Numerous interfaces between components of the solution with a high maintenance cost,
- Poor, time-lagged information,
- Rudimentary risk management and controls, and
- Expensive maintenance costs.
However, by following Enuit’s approach, the user was able to successfully replace all the older solutions using a replacement / Implementation strategy designed specifically for the purpose. Enuit chose Europe as the base location and established a project with the users to baseline the global replacement approach and design based on the experiences there. As Europe was replaced and lessons learned, this was replicated in the semi-parallel Asian roll-out by keeping the CTRM design principles intact. The non-ferrous metals trading operations were consolidated into a single ENTRADE platform to provide accurate risk reporting capabilities; streamline trading operations and reduce the overall IT spend across 3 different locations.
About Commodity Technology Advisory
Commodity Technology Advisory is the leading analyst organization covering the ETRM and CTRM markets. We provide invaluable insights into the issues and trends affecting the users and providers of the technologies that are crucial for success in the constantly evolving global commodities markets.
Patrick Reames and Gary Vasey head our team, whose combined 60-plus years in the energy and commodities markets, provides depth of understanding of the market and its issues that is unmatched and unrivalled by any analyst group.
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THE REPORT CAN ALSO BE DOWNLOADED DIRECTLY HERE