Enabled geographical and renewable energy expansion, and addition of new commodities and products in a major European energy utility.
Key results
New commodities, markets, and products to trade in a short time
New cloud-based system landscape
Exceeded financial targets 3 years in a row
Who is this case for?
Utility
mid and large size
Energy Trading & Portfolio Management; IT; Business Development
Key challenges
Three main challenges made it difficult for the company to realise the new strategy and reach the new financial targets.
Existing system landscape not able to support the new strategy
New and enhanced Business & IT capabilities required
Operating model and many processes not fit-for-purpose
Summary
To achieve increased financial targets and compensate for a shrinking asset portfolio, the trading business of a major European energy utility decided on a new strategy to grow geographically, expand its renewable energy business, and add additional commodities and products to its trading portfolio.
An internal project had been launched a year before with the objective of operationalizing the new strategy, but had brought little progress.
The ask
Independent review of the initial project
CommodityFirst assessed the progress and approach of the initial internal project, the feasibility of introducing a New Trading Landscape, and prepared a business case and funding request to the Board of Directors.
The full scope
Align top management and prepare a business case to approve a significant investment by the Board of Directors
Design and coordinate a transformation program with over 100 people and 11 strategic streams in parallel
Design and implement new operating model, capabilities, processes, and system landscape.
New commodities traded
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Agile approach in several program streams
The company was able to start trading some of the new commodities, markets, and products.
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Clear handover strategy and new and enhanced capabilities: new cloud-based system landscape with minimal involvement of external support.
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Over the last three years, the company has consistently exceeded the financial targets
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The pre-aligning of key stakeholders actively involved both IT and Business departments in feeling genuine ownership of this transformation, making sure there was a transversal alignment towards the same goals.
The 4-phase approach
Pre-program
Ensure alignment of top management and the program being a joint Business and IT program
Assessment
Identify gaps, explore options, agree on target solutions, and ensure consistency with business strategy
Implementation
Detail the design of the solutions, parallelize to the extent possible, and ensure dependency management
Business readiness
Involve employees early, never underestimating the value of communication and change management
Key Learnings
Transversal alignment is key
Plan and align key stakeholders; ensure joint business and IT ownership
Stick to the plan
Define clear governance structure, roles and mandates, and stick to it
Value continuous communication
Ensure commitment across Trade-Life-Cycle & keep communication flowing
Bet on knowledge and experience
Select an implementation partner with hands-on experience, and knowledge on both Business and IT
CommodityFirst
We can help you assess current strengths and weaknesses of your business, processes and IT landscape.