Growing up, my dad had an old white 1980s Ford Country Squire station wagon. Its royal-blue interior and side-facing rear seats were a symbol of middle-class, suburban bliss, built for family road trips (queue Lindsey Buckingham’s “Holiday Road”). My dad was an independent landman, and that wagon wore out the roads between our house and various county courthouses. Needless to say, that car suffered a considerable amount of wear and tear, and needed a lot of work. The wagon initially ran like a fine Swiss time-piece, but over the years (or more accurately, decades) it reached the point where it was no longer cost effective to maintain as a family vehicle. After a lot of soul searching and consumer-reports consultation, we were the proud owners of a new Ford Aerostar minivan, which gave us better gas mileage, a more comfortable ride, fewer fingers crossed during the annual vehicle inspection – and for me, directly resulted in fewer dates in high school, until I got my own car.
At capSpire, we have seen a few companies out there still driving their legacy CTRM/ETRM systems. At the time, these systems were considered best-of-breed solutions, with a specific focus on a commodity or market segment. While at the time they did what was required, a lot has changed in the solution marketplace, as well as the evolution of the basic requirements to manage day-to-day business functions. The ROI of these types of systems has diminished as the evolution of business and work processes continue to raise the bar.
The current generation systems offer much more than their predecessors. From a technical standpoint, they provide a stable, current platform that will run on cutting edge database technology and infrastructure. An investment in a system, or upgrade, will prevent your organization from having to run its business on unsupported software.
From a functional standpoint, tier 1 CTRM systems, such as Allegro, Openlink’s Endur and RightAngle, and Triple Point’s Commodity XL, offer so much more than just current codebases and software compatibility. These solutions can support multiple commodities, allowing your business to have its entire portfolio in one system. These systems handle the same work processes, from deal capture to settlement, but also provide the opportunity for consolidated position, exposure and MtM reporting across your organization’s portfolio. These systems also allow you to manage current and forward credit exposure.
If your business is using multiple, outdated solutions to manage different commodities, consolidation to a single platform offers many advantages, including lower support cost over time, standardized work processes and reduced integration between systems.
At capSpire, we specialize in helping our clients replace that old station wagon. We provide the full suite of system-integration solutions, from system advisory, selection and project management, to implementation. Let us help you give that tired station wagon the retirement it deserves, and find a solution that can lesson your IT footprint and maximize your CTRM investment.
capSpire provides the unique combination of industry knowledge and business expertise required to deliver impactful trading and risk management business solutions. Trusted by some of the world’s leading companies, capSpire’s team of industry experts and CTRM consultants empower our clients with the business strategies and solutions required to effectively streamline business processes and attain maximum value from their supporting IT infrastructure.