10 tips for selecting and adopting commodity trading software
While the risks and costs of implementing commodity trade and risk management (CTRM) software are vastly different than they were 10 years ago, the investment and importance of a solution are just as critical.
Software projects start with the best intentions, but so much can go wrong. In the old days, there were more ways to fail, because ETRM / CTRM solutions were built and installed in a customized way over several years. ROI was hard to reach and many times oil and gas companies never realized the benefits and full potential of what they signed up for.
There’s so much data around failed software and IT projects and why they fail. Some past studies put IT project failures as high as 50% and ERP systems even higher. Today, the risk of failure is far less due to a completely changed landscape of Software-as-a-Service (SaaS) and cloud solutions that have shorter deployment time frames and far less customization through development coding.
A few statistics to keep in mind when selecting your energy trading and risk software:
46% of CIOs say that one of the main reasons IT projects fail is weak ownership of the project, and 40% of CIOs attribute failure to unclear objectives. (Source: The Harvey Nash/KPMG CIO Survey, 2017)
Most IT projects have three constraints: Time, scope, and budget. No matter what type of software or IT project you’re starting – and it’s certainly true for ETRM / CTRM solution selection, success and failure are highly dependent on your early-stage planning and requirements analysis. So, you don’t want to skip out on the planning.
When users and sponsors leave a company, projects are left in chaos unless you have an adoption plan. Ensure your software selection team includes internal staff reinforcements, stakeholders, sponsors, and super users who are all vital to ensure usage and “buy-in” slows or stops. No one stays at the same company forever, so refresh your sponsors. Use a “train the trainer” approach where your veteran users pass along their knowledge creating a strong, talented pool of users throughout your organization who are committed. For smaller companies, this is more difficult. Identify 1 or 2 users from operations, trade support, and finance to ensure the plan stays alive and your solution continues to grow.
Thankfully, SaaS solutions make these types of projects far less risky than they used to be. Gone are the days of 2-year deployments where scope creep destroys timelines, blows out budgets, and causes failed deployments that cost companies millions, and software decision-makers their jobs.
Read on and download the complete check list now for CTRM software selection and adoption, and keep it handy.
Now do your homework and start with a demo IGNITE CTRM. Begin to answer key questions about how IGNITE CTRM fits your trade and risk requirements.
Discover what makes IGNITE a different kind of software company.