White Papers Value Study: Investing in ETRM / CTRM in Turbulent | Page 5

Value Study: Investing in E/CTRM in Turbulent Times

// Reduction of 5-year total cost of ownership
by approximately 30% when comparing the
costs of legacy internally developed systems
versus OpenLink software,
// Optimized physical power generation assets
resulting in a saving of millions in fuel costs
annually,
// Reduced risk of fines and penalties for
non-compliance with regulations, and
// Identified and eliminated significant errors in
homegrown risk analytics that could have cost
the business significantly.

A ComTech Advisory Whitepaper

Though often difficult to quantify or even measure, the fact remains
that implementing a leading commercial E/CTRM solution such as
those from OpenLink, can result in a reduced total cost of ownership,
improved operational performance, and real risk mitigation. However, in this market environment, perhaps the most important benefit
th at accrues is improved ability of user to react, proact and respond
to industry change and volatility in a more timely and effective manner, protecting company value and improving profitability.

CONCLUSION
As the fundamental conditions of commodity
transacting continue to change, visibility across
all aspects of the business must improve. While
some might be tempted to cut costs or defer expenditures by delaying new procurement projects
or even upgrades to existing E/CTRM software,
the ability to properly manage transactions, exposures, risks, and regulations on a timely basis
becomes even more imperative in turbulent markets. Ensuring that businesses processes are
both streamlined and auditable; providing traders
with up to the minute trading intelligence; providing management with key performance indicators
required for strategic decision making; and equipping risk managers with the analytical tools they
need is even more important under such circumstances. A commercially provided E/CTRM solution will assist the business by,

// roviding improved market awareness driven by data and a vigiP
lant eye on macro trends. Strategies must be formulated around
those macro trends and managed on market data and the real-time or near real-time analysis delivered by the software,
// Improving internal visibility, as profit is made or lost on daily decisions. The E/CTRM provides the more accurate and timely position management, risk management and business intelligence
support that is key to ensuring that opportunities are exploited
and risks addressed,
// Ensuring regulatory compliance at a time when regulators are
quick to move, as once on their radar, businesses will be subject
to increased scrutiny for a very long time. The E/CTRM solution
can help to develop a culture of compliance and improved visibility for regulators helping to avoiding punitive and damaging
enforcement actions.

The chances of success in this market now, and into the future, are
increasingly dependent on the mission critical trading technologies
deployed by the business.

2 | CTRM Vendor Perceptions Report, Commodity Technology Advisory LLC, 2014

© Commodity Technology Advisory LLC, 2015, All Rights Reserved.