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Operational Enhancement

A large U.S. Midwestern power cooperative faced a pivotal challenge in optimizing its trading portfolio reporting. Despite a successful system upgrade, the cooperative encountered a significant hurdle. They had established a robust book structure for their natural gas trading, and their power trading needed a similar differentiation of trades in the system. This deficiency hampered effective reporting on power trades, leading to an inability to discern regional, strategic, or activity-based performance metrics.  Consequently, the cooperative’s management needed more granularity to make informed decisions and identify areas for portfolio improvement.

price

KEY RESULTS

37%

Improved Data Accuracy: Quarter on quarter from the time of deployment

0.5%

Enhanced Operational Efficiency: Reduced errored trade count  total trades per day

40%

Risk Mitigation: Increase in timely reporting to trade repositories

~2000 hours

Streamlined Reconciliation: Reduced manual verification hours for front-office (2 Desks & 7 Members)

A Strategic Approach to Project Success

To address this challenge, the power cooperative engaged with Value Creed in applying the successful natural gas book structure model to their power trading portfolio. Drawing on years of industry experience and deep domain knowledge, Value Creed initiated a strategic approach to implement an effective solution:

User Interviews and Analysis: Value Creed conducted comprehensive interviews with the cooperative’s power traders, middle office personnel, and back office/ reporting teams. Leveraging our extensive advisory experience, we facilitated collaborative discussions and conducted in-depth analysis to uncover specific requirements and challenges faced by the cooperative.

Iterative Structure Development: With our extensive expertise in trading operations and technology, Value Creed proposed multiple iterations of the book structure. Each iteration was carefully crafted to align with the cooperative’s unique trading activities, regions, and strategic objectives. Feedback from the cooperative’s stakeholders was integrated to ensure the structure’s effectiveness, leading to the next iteration of the proposed structure.

Mock-up and Testing: Using a test environment within Allegro, Value Creed configured the proposed book structure and applied it to actual power trades. This facilitated real-time visualization of how trades would be categorized and reported within the system, enabling the cooperative to provide valuable feedback and refine the solution iteratively.

Consensus Building: Throughout the process, Value Creed facilitated collaborative sessions involving the cooperative’s stakeholders to ensure alignment and consensus on the finalized book structure. Through iterative refinement, we were able to tailor the solution to meet the specific needs and objectives of the client.

Enhanced Management Focus: The implementation of a comprehensive book structure empowered the cooperative’s management with granular insights into their trading portfolio performance. With the ability to analyze performance metrics at a detailed level, management could identify areas of strength and opportunities for improvement more effectively.

Value Creed Services Mobilized:

Expertise on Demand

Unlock operational effectiveness and elevate the efficiency and reliability of your database through Value Creed’s services. Optimize performance with fast and accurate data extraction, reconciliation, calculation, and reporting.

Advisory

Our Advisory services not only will help you guide your operations but also help you achieve your vision by taking all stakeholders into consideration. Our highly experienced team has combined full lifecycle, functional and technical expertise to deliver frameworks and guidance around building reliable and scalable commodity trading businesses.  

Key Takeaways

Are you facing challenges in optimizing your trading portfolio reporting, just like the power cooperative in our case study? We specialize in delivering transformative solutions tailored to your unique needs. Our experienced team combines deep industry knowledge with innovative strategies to help you overcome obstacles and drive success. Whether you’re seeking to streamline reporting processes, enhance data accuracy, or gain actionable insights, we’re here to guide you every step of the way. Contact us now to revolutionize your trading portfolio and gain a competitive edge.

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Performance Challenge

In their pursuit of operational enhancement, one of our leading energy clients recognized the need to stay up-to-date with the latest version that would accommodate these new processes while addressing current performance challenges.  This upgrade involved incorporating features such as scheduling, optimized inventory management, and the implementation of new business processes like nominations, scheduling, pathing, conveyance, and book closure. The overarching goal was to optimize system functionality and server performance while ensuring effective data management to streamline their trading activities.

KEY RESULTS

Streamlined Operations

Streamlined workflows
for increased
productivity

Extensive Testing

Thorough examination
to ensure robust
functionality

Increased Reliability

Established methods and repeatable process for consistent success

Improved Performance

Enhanced system
efficiency and
speed

Without a doubt, one of the most successful projects in my 30-year career was this implementation project, and it could have never happened without Value Creed.

A Systematic Approach to Project Success

Timelines & Phases: The upgrade was completed within a 5-month timeframe, the project comprised cycles of 3-4 weeks each.We applied a systematic three-phase approach: Planning, Execution, and Review and Testing.

Execution Phase: It  involved breaking down the upgrade into manageable cycles, testing interfaces and reports progressively, and engaging the business in each testing cycle.

Database Management: We ensured fresh database versions for each cycle, encompassing migration, conversion, and joint testing with both Value Creed and the client.

Testing Levels: Client sign-off at the end of each cycle was mandatory, and the User Acceptance Testing (UAT) phase saw the development of end-to-end business scenarios with expected test results, all verified by the customers. Our process aimed to accomplish 4-5 levels of testing before the final cut-off, guaranteeing the project’s success from Value Creed’s perspective.

Post-Upgrade Improvements: We observed Significant Performance Enhancements Following ETRM Upgrade: Position Valuation improved by 60%, Settlement improved by 65%, and Credit Sees a 30% boost.

Value Creed Services Mobilized:

Upgrade Services

Our team is made up of industry-leading CTRM experts who help you model new business requirements to ensure a future-proof setup. Our commitment to CTRM technology is reflected in our upgrade services, which empower you to customize and enhance performance. Our primary focus is to optimize functionality across the board, aligning with market demands through a holistic solution.

Key Takeaways

By leveraging Value Creed’s expertise in executing strategic upgrades, organizations unlock a pathway to enhanced operational efficiency, streamlined workflows, and a competitive edge in the ever-evolving landscape of their industry. Our collaborative workshops ensure meticulous planning, while the systematic breakdown of upgrades into manageable cycles ensures active client participation and thorough testing. With a dedicated focus on reliability and repeatability, we enhance overall performance, establishing Value Creed as a reliable ally for achieving successful and seamless upgrades.

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Performance Challenge

An electricity power generator and wholesale marketing company was experiencing deadlocks and a high number of retry attempts when performing valuation and settlement runs in their CTRM, as well as grid stalling of the grid server.  To ensure correct data analysis, the company had to evaluate its CTRM system to rule out the issues causing these deadlocks and retry attempts.  On Value Creed’s suggestion, they decided to go for a CTRM Health Check.

KEY RESULTS

50% improvements

in EOD position runs

75% reduction in deadlocks

in position & settlement runs

Expertise On Demand

Value Creed Services Mobilized:

Expertise On Demand

Whether you want services for business process improvements, creating personalized BI dashboards, or performing health checks, Value Creed’s Expertise on Demand offers to bridge these gaps through CTRM experts with decades of experience. Achieve organizational goals at every stage of the CTRM journey.

Key Takeaways

Value Creed experts conducted a comprehensive health check which solved the known performance and deadlock issues but also uncovered additional opportunities for improvement. Index tuning, custom code optimizations, data compression & archiving along with other various improvements were recommended for better performance. The entire service was carried out with no issues which led to them becoming managed services customers where health checks will be performed periodically as part of regular support/maintenance.

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Performance Challenge

TransAlta hit a roadblock when ICE announced significant changes to the ICE Trade Capture API. To maintain trade data automation, the company had to make technical changes within a short timeframe which would entail high risk and disrupt their day-to-day processes.

With this, TransAlta also had various other limitations like limited personnel and executive sponsorship to come to a consensus to decide between upgrading the CTRM platform or seeking third-party operational support of integration and testing within the limited timeframe. To achieve the desired results without disrupting business operations, Value Creed implemented BroadPeak’s K3 in 6 weeks.

KEY RESULTS

Met critical deadlines without any disruptions in daily operations 

Full transparency and Control over trade data

Increased operational efficiencies

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Expertise On Demand

Value Creed Services Mobilized:

Expertise On Demand

Whether you need to implement new functionalities, create custom enhancements, or make business process improvements, Value Creed’s team of technical and functional experts help you cater to modern business demands and achieve organizational goals at every stage of the CTRM journey.

Key Takeaways

A collaborative effort of Value Creed with BroadPeak’s K3 team met with a tight technical deadline without disrupting business. Value Creed crafted a solution and designed a roadmap for implementation. Since our team has a deep understanding of TransAlta’s CTRM software, the integration with BroadPeak’s K3 solution was carried out without any issues. The expanded implementation of K3 by Value Creed helped TransAlta to rely on critical connections to the derivatives market confidently, gain full transparency and control over trade data and increase operational efficiencies to maximize the ROI of their software investments.

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Customize & improve business processes with Value Creed’s Implementation Services

CTRM EXPERTISE FOR YOUR PROGRAM MANAGEMENT OFFICE

Value Creed Lends Experience to Manage Multiple Moving Parts

Embarking on any program related to energy or commodities trading risk management (E/CTRM) necessarily involves diverse stakeholders and varied processes within the organization. Companies looking to scale often have yet to develop internal controls to inform the project management office, while even large organizations find it difficult to spare the resources to oversee the project from business case to maturity.

Value Creed, utilizing CBOL™, gains a comprehensive understanding of the various stakeholders, intricacies of a company’s processes, and the potential differences in operations based on company size. This knowledge enables us to provide tailored guidance and management, ensuring that our clients receive the best possible solutions for their unique needs.

Comprehensive Services for Commodity Trading and Risk Management Businesses

A PRECISE GAME PLAN AND A PROVEN METHODOLOGY

Added Value and Quantifiable Results

We coordinate tight schedules and dependencies, bringing the right people and assets together at the right time, throughout the project. We construct, operate, and enforce program management office governance, effectively manage budgets, and meet project deadlines.

How the process works:

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Performance Challenge

The company wanted to modernize its business processes with the goal to transition to a clean energy future. They also wanted to maintain sophisticated business processes across the organization, quickly and efficiently, for greater productivity and more efficiency. It sought to minimize the costs of maintaining the database and its infrastructure.

KEY RESULTS

99% Pass Percentage of UAT Test Cases

60% Cost – Saving

Zero Error in Daily Valuation Runs

CTRM Implementation

Value Creed Services Mobilized:

CTRM Implementation

The implementation services offered by Value Creed will help you in designing and set up your system’s workflows according to your business operations. In addition, we execute a change management & training program to assist your team in effectively maintaining system configurations as well as test the newly implemented CTRM application in accordance with the key requirements. 

Key Takeaways

By understanding the key requirements of the client, Value Creed developed tailored solutions to address all pain points. Additionally, the team developed custom configurations and set up a robust testing environment. Developing and implementing a comprehensive change management program and training enabled the company to not only reduce its infrastructure costs but also modernize its business processes. 

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Do More With Your CTRM

Customize & improve business processes with Value Creed’s Implementation Services