Progress always involves risk: you can’t steal second base and keep your foot on first. Decision-makers not willing to get out of their comfort zone will choose a solution based on the old adage “you can’t go wrong with IBM.”
A misguided attempt to secure their jobs. Decision-makers interested in real progress and getting ahead are what management consultant Geoffrey Moore calls “early adopters” and “pragmatists in pain.” They go with disruptors who have a better mousetrap to solve problems that can’t be solved with established products.
In the energy trading industry, companies are stuck with a business process problem called complex or non-standard contract settlement. They relied on the dominant ETRM vendors for a solution to no avail and instead hung onto manual and spreadsheet based solutions.
Deteriorated market conditions have increased the pain but also the recognition that the old adage “you can’t go wrong with IBM” won’t stop the bleeding. Thus, the product/vendor qualification is no longer mistakenly based on the number of ETRM installations but instead on a proven standalone solution directly focused on solving the specific area of complex / non-standard contract settlement: SettlementTracker.
Pioneer Solutions’ SettlementTracker is an end-to-end, integrated settlement and accounting software package specifically geared toward complex energy contracts. The platform offers straight-through processing (STP) and built-in workflow management that automates meter data and billing determinants, settlement processes and accounting entries as well as proven integration with other ETRM and General Ledger systems.
SettlementTracker streamlines the contract-to-bill process, from capture of all invoice-able trades under master agreements (e.g. EFET, ISDA) and complex contracts (PPA, Intercompany, Generation and Renewables) to creation of accrual entries. It provides unparalleled configurability of contract rules and billing determinants that is template-based and formula driven.
As a result, SettlementTracker enables more complex structured products for market differentiation and cross border operations, while the automation expands team’s processing capability without adding resources. Regular ETRM systems only provide the ability to settle and invoice standard trades/contracts.
A key differentiator of SettlementTracker is the notion of Billing Determinants and Charge Types that, along with its formula engine, delivers the necessary functionality for non-standard contract settlement and billing. This functionality is also required if one wants a complete P&L report meaning, SettlementTracker can do shadow settlement to calculate estimates.
With SettlementTracker, market participants have a proven solution, used by large international energy companies, to settle and account for most of their standard and custom energy contracts in a single system. Automating this will improve efficiency and effectiveness of the back offices processes, reduce back office cost, improve financial accuracy down to the cent, and thereby maximizing operational margin.
So, if you’re struggling with a complex contract settlement problem and waiting for a “Eureka!” moment, call Pioneer Solutions for a better mousetrap!