Triple Point s Management Dashboard

Transcription

1 Dr. Gary M. Vasey August, TBN -01 CommodityPoint UtiliPoint, s.r.o. Frantiskanska Brno Czech Republic

2 CONTENTS Introduction... 3 Key Performance Indicators... 4 Commodity XL Management Dashboard... 5 Summary & Conclusions... 8 About CommodityPoint UtiliPoint International, Inc.

3 INTRODUCTION A common historical complaint regarding the capabilities of CTRM software packages is that while it is relatively easy to get data into the software it is often very difficult to get any useful information back out again. Indeed, CommodityPoint s own extensive research over the past 5- years or so has consistently highlighted the area of reporting as a specific weakness in CTRM software. The term reporting is however an extremely broad term that includes many things beyond the ability to create standard paper reports. In CommodityPoint s Vendor Perception study 1, respondents ranked reporting as extremely important and their third most important criteria overall in procuring CTRM software. Another recent CommodityPoint study 2 found that reporting issues ranked highly in the top 10 critical business issues faced by commodity trading firms. Issues such as the ability to retrieve data from systems, availability of adequate business intelligence tools and speed of reporting were all ranked highly. In particular, providing management with a snapshot of the information they wish to see to better manage and operate their business is growing in importance; particularly as the rules and regulations around corporate governance grow and now increasingly have teeth. Indeed, the latter study also showed that risk management is the KEY business issue facing traders today. Managing risk effectively demands not just the ability to capture transactions and run risk metrics but to proactively manage trading activities. That means having visibility into 1 ETRM Vendor Perception Study Report, CommodityPoint, 2 Changes in Commodity Markets: Impacts on Traders and Software, CommodityPoint, 3 UtiliPoint International, Inc.

4 the numbers and being able to drill down into those numbers to gauge where there may be problems. KEY PERFORMANCE INDICATORS Though the concept of key performance indicators has been around for some time in CTRM software, such functionality, if provided at all, has often been cumbersome and suffered from a lack of presentation acumen. Some vendors have made attempts to allow users to both define KPIs and track them but these solutions suffered from both presentation and performance issues. But in the current commodity trading environment, CTRM software is increasingly being looked upon to provide not just a system of record for trading and transaction data, but the system from which to monitor and manage the business. Increased scrutiny and oversight of commodity trading operations is behind the transition of CTRM software from after the fact transaction recording software to real-time business management tools. In turn, this means that executives are increasingly looking to their CTRM software solution to offer more than just a set of standard reports, while those tasked with various aspects of risk management or back office tasks, increasingly require tools to allow them to identify and investigate issues. Mining transactional data for intelligence Business Intelligence is becoming a sought after feature in CTRM software today. Triple Point responded to this growing need by introducing a major innovation in the area of key performance indicator tracking for management in the form of the Commodity XL Management Dashboard. Version 2.0 of that product was just recently announced. 4 UtiliPoint International, Inc.

5 COMMODITYXL MANAGEMENT DASHBOARD Any business intelligence tool must meet four overall requirements in CommodityPoint s view. These are; 1. It must be designed to be visually intuitive meaning that it must be graphical and in a format that is quick to digest and act upon as opposed to requiring the user to scrutinize row upon row of text data. 2. It must allow drill-down capabilities so that the user can identify and investigate issues or problems quickly, rapidly identifying the source of the identified issue. 3. It must present current information meaning that it must be up to date on demand. 4. Needs to encapsulate all key areas of trading and risk. Triple Point s Management Dashboard is the first tool developed by a vendor in this area that we are aware of that meets all four of the above criteria. The dashboard is designed in a visually appealing way and one that is familiar to any user resembling the instrument panel of a vehicle. It utilizes dashboard instruments combined with traffic light coloring (red, amber and green) to immediately inform the user of a problem with a particular KPI. It also allows the user to drill down through multiple levels of data through filtering to investigate the reasons behind the KPI problem. It fully meets the first two criteria set out above. Dashboard data can be refreshed at any point during the day and, in essence, the user is working with data current to the last refresh. 5 UtiliPoint International, Inc.

6 The dashboard is a strong offering that provides users and executives with a well designed and highly relevant tool to help them manage their business. The dashboard comes as an optional add-on to the Commodity XL system and is configured to track each company s defined KPIs. The dashboard allows the user to filter information by any category and then shows the situation for just the filtered category. So, for example, the user can filter by a particular trading book, type of transaction or anything else of interest, visually check the status and investigate any issues. The product comes with five major views delivered via tabs including; Executive Overview Portfolio Concentration Performance Analysis Cash Flow Analysis Drill-down Hedge Management and Compliance Credit Risk Management CommodityPoint understands other tabs will also be available in the future. 6 UtiliPoint International, Inc.

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8 SUMMARY & CONCLUSIONS The Triple Point Commodity XL Management Dashboard is in CommodityPoint s view a major and timely innovation that provides business intelligence in a visually appealing and intuitive manner. It is well designed and configurable and can provide the insight that executive management now require to effectively manage their business. Certainly CommodityPoint sees this product extension as a major innovation and movement in the right direction that will prove to be a competitive advantage. Note: CommodityPoint Technical Briefing Notes are designed to inform about what CommodityPoint believes to be technical innovations and advancements in CTRM software. While the TBN may cover a specific vendor and or product it is not an endorsement of a particular vendor or its product on the part of CommodityPoint but an informative analysis of that innovation. 8 UtiliPoint International, Inc.

9 Triple Points Management Dashboard ABOUT COMMODITYPOINT CommodityPoint provides Commodity Trading & Risk Management (CTRM) research, analysis and consulting services. Our services bring insight into business issues, trends, processes and technology, to utilities, energy companies, banks, brokers, funds, investors and vendors that enhance their competitive position and support critical business decisions. CommodityPoint has been formed to bring focus and clarity to the broad array of issues surrounding the wholesale trading of commodities. Our team provides expert analysis of market trends and, in particular, the technologies and applications supporting those that participate in regional or global commodity markets. Our principal analysts, Dr. Gary Vasey and Patrick Reames, bring years of practical experience to their roles. With offices in Europe and the US, and backed by an experienced research team, our organization provides an unparalleled view of the marketplace. CommodityPoint is a division of leading energy and utilities analyst and consulting firm, UtiliPoint International, Inc. 9 UtiliPoint International, Inc.