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2019 In Review

Molecule is always evolving, and it’s really fun for us to look backwards every so often, just to see how far we’ve come. It’s easy for us to forget all the cool new features we’ve added over the course of 525,600 minutes. Hopefully, our work made your daily work just a little bit easier!

Here are some of the things we made this year:

New Trades Screen

After lots of customer feedback and tons of research & development, we launched a new Trades screen. On it, you can now pick the columns you want to see, sort and filter, create saved views for different types of trades, and much more.

It looks fantastic, too — and performs like crazy. Underlying it is a brand new front-end framework and an awesome grid that we plan to continue upgrading. If you don’t have access to it already, just ask your Admin.

New API

Our new v2 API began rolling out last year, and we completed the rollout late this year. Using it, users can do a million and one things, including:

  • Connect Molecule to Excel PowerQuery or Microsoft PowerBI for powerful, even mobile analytics.
  • Stitch another system to Molecule to send or retrieve trades, market data, valuations, or even VaR details.
  • Set up your master data in Molecule, and manage it.
  • Get pretty much any data out of Molecule you want.

Moreover, our new screens (like the Trades screen) use it, too — so we’ll be adding new features to it and improving it all the time. If you haven’t used it yet, documentation for our new API is at https://developer.molecule.io. (The documentation password can be obtained from our CS team.)

VaR out of Beta/Backtest

Our long-maturing VaR finally came out of Beta this year. It’s stable, it’s been running on multiple different portfolios for months, and it’s FAST. We also rolled out a visual backtest — to prove that it’s generally right.

Much Better Hourly (and sub-hourly) Power Model

Molecule began with a focus on power and then expanded to other commodities. This year, we upgraded our power capabilities to better model hourly (and even 15-minute) power — without shoving hours into product names, but by attaching intervals to contract dates system-wide and across all major integrations.

We rolled out the first of the power upgrades at the end of December, and plan to have all accounts migrated to our new model by the end of Q1 2020.

Self-Administration

A common customer request is to bypass our Customer Success team and allow users to self-manage things like master data and user access. We rolled out the first of the screens to manage this — our new Counterparties screen — this year. We plan to add much more in terms of self-administration capability in 2020.

Consumable & Inventory Trades, Logistics Preview

Early in 2019, we began sharing our physical logistics preview. We’ve been taking on board lots of great feedback—to iterate on it so that we get it right. New enhancements now include “consumable” trades, for things like transportation, RECs, RINs, and “inventory” assets, which allow for multiple buckets of inventory valued in a custom way.

Wrap Up

We made a whole lot more — over 550 improvements, big and small, to Molecule this year. All while improving reliability to 99.98% (less than 1 hour of unscheduled downtime), and improving general performance as well.

We’re equally excited about the things we have planned for next year: from single sign-on, to user-feedback-driven upgrades for many of our screens, and even more features related to self-administration and quality assurance.

Thank you for using Molecule (or just following our progress). We hope we’ll blow your socks off next year.

Love,
The Molecule Team

Features

Celebrating National Read A Book Day

We love tech at Molecule. We love to create it, show it, and read about it. But, because we are actual human beings, we read about lots of other stuff, too. One of the most recommended podcasts around our office is LeVar Burton Reads, in which LeVar reads you a short story – just like he used to do on Reading Rainbow.

Along those lines, September 6th is National Read A Book Day. Sometimes finding a good book to read can take quite a bit of searching, so we surveyed our team and came up with some suggestions in case you want to celebrate.

Here are our top picks:

Megan Farley

I feel like I should recommend something of substance, but I'm going with Caverns & Creatures because it made me cry from laughing so hard. Or Off To Be The Wizard....again, because it made me cry from laughing so hard — or Will Save The Galaxy For Food.

Sameer Soleja

Haroun and the Sea of Stories, by Salman Rushdie — it’s a magical book (imagine Alice in Wonderland, but with flying carpets). It’s a quick and inspirational read, and Rushdie’s language — English, but with a little Bombay lilt — reminds me of my mom.

Richard Reedstrom

The Outsider by Stephen King is one of the most enjoyable books I’ve read recently. It embodies everything I love about Stephen King, and the book gives a fulfilling end to the Mercedes Killer trilogy. I also just started 1984 by George Orwell. It's been years since I read it, and it's interesting to re-read from a different perspective.

Bala Raghavan

The Hitchhiker's Guide to the Galaxy. It is a funny, geeky guide that answers the ultimate question of life, the universe, and everything.

Syed Sohaib

Confessions of an Economic Hitman is not my favorite book, but I definitely recommend it. It's a very interesting take on global historical events and corruption.

Luke Kramer

Rhinoceros Success: the Secret to Charging Full Speed toward Every Opportunity. One of my favorite quotes from the book is, “we become the product of three things: the people we associate with, the books we read, and the media we listen to.”

Personally, my go-to is anything from The Dark Tower series. However, the latest book I read was The Nix by Nathan Hill. It kept my attention much like Freedom (Jonathan Franzen) did and with a similar tone. When I finished The Nix, I wished there was more to read.

We hope you find a book you like on National Read A Book Day - from this list, or anywhere you like to find a good read. I like several books from this list, "but you don't have to take my word for it."

Holidays

What We Value

Today, we're launching a campaign that's been in the works for some time. I'm super proud of it because it speaks precisely to what we, at Molecule, do. We're calling it "What we Value Runs the World."

Here's what we mean by that:

  • Molecule (our software) values, like, everything. It's handles commodities you've never even heard of, like terephthalic acid – and instruments that are hard to grok, like an option on a cal strip of off-peak power monthlies. We've valued power plants and wind farms, and we are evaluating NGL and battery storage models.
  • What our customers trade represents (and sometimes literally is) the infrastructure of the world. It's how we get electricity to our homes. It's how our automobiles run. It's the least-understood, most important set of assets in our civilization.
  • Our customers mean a lot to us – obviously, we use their input to shape our product. But we also value them and their opinions and needs. They, in turn, run the infrastructure that runs the world. More importantly, we value our customers' time. We want them to go home early, so they don't always have to run the world. (I know this sounds trite, but it's what we believe – and from my perspective, not every company in our industry feels the same way.)
  • We're really proud of our employees, contractors, and the values we share. Our people and our software embody those values – and they help the people, who run the infrastructure, that...you get the idea.

So WWVRTW, as we've taken to calling it, is a quadruple entendre! Our new campaign features real people we know – and highlights all the weird and wonderful things Molecule (our software, our team, and our company) values. We hope you love it as much as we do.

Values

Welcome, Richard, Luke, & Syed

Molecule is growing! So far this year, we have added to our dev, customer success, and sales teams. We've done a quick Q&A with our additions to the sales team so you can get to know Richard Reedstrom, Luke 'Hawaiian-shirt' Kremer, and Syed Sohaib better. Stay tuned to meet the other new faces that have joined Molecule.

Richard Reedstrom

1.  Let’s start at the beginning. Where did you grow up? What led you to a career in sales?

I grew up here in Houston. I'm passionate about improving people's lives, and I've found that this bonds incredibly well with sales. Every day I help people end frustrating battles with old systems and methods by providing real solutions. I get to give people back hours of their lives. For me, it comes down to figuring out how we can make our customers' lives better.

2.  Why did you decide to join Molecule?

When I first heard about Molecule, it looked like an interesting company with a ton of potential. I had always wanted to work with a genuinely innovative/disruptive technology, and the more I found out about Molecule, the more I fell in love. The underlying technology, the company values, and the team culture resonated with me one hundred percent. I'm thrilled to be a part of such an awesome group of people doing incredible things.

3.  What is something that you’ve already learned about the industry or company that has surprised you?

Not every solution that claims to be cloud-based actually is a true cloud-based (multi-tenant) solution.

4.  For fun, what are your top three favorite apps?

1 Second Everyday, Tidal, and Audible.

5.  Since you’re in a sales position, let’s ask the obvious: what’s the most compelling reason why someone should want to buy Molecule?

Everything just works. We believe you shouldn’t have to fight with your software. Instead, Molecule works in harmony with you and your process.

Luke Kremer

1. Let’s start at the beginning. Where did you grow up? What led you to a career in sales?

I grew up in Papillion, a suburb of Omaha, Nebraska. I enjoy the relationship building and challenges that a sales person faces.

2. What is something that you’ve already learned about the industry or company that has surprised you?

I've been fascinated by renewable energy credit trading.

3. One of the things Molecule prides itself on is the time savings our software gives customers. More than one person has said that we’ve saved them two hours each day. If you were given two extra hours each day, how would you choose to spend them?

I’d have a tee time set two hours earlier each day; I could probably get a full 18 in before 7 pm.

4. For fun, what are your top three favorite apps?

Snapchat, Yelp, and Instagram.

5. Since you’re in a sales position, let’s ask the obvious: what’s the most compelling reason why someone should want to buy Molecule?

Molecule is future-proof software that looks and performs like it was made in 2019. We provide world-class service, free upgrades, and no extra implementation fees.

Syed Sohaib

1.  Let’s start at the beginning. Where did you grow up? What led you to a career in sales?

I grew up in Karachi, Pakistan. We moved to Stamford, Connecticut when I was in the middle of high school, which kickstarted my American dream. I graduated from the University of Connecticut (UConn) with an International Business Management degree and a focus in Finance. I took a marketing course titled ‘Professional Selling,’ and the final was to pitch a mock product and replace the incumbent provider. After the presentation my professor asked why I was not a marketing/sales major. According to him, I had a natural ability to be successful in a professional sales role. Long story short, I had an opportunity to join the sales team at ThomsonReuters, selling data solutions. I truly enjoyed the experience and challenge of bringing the right solutions to our clients/prospects. Ever since then I have been in sales and business development, and I enjoy every bit of it. Well, perhaps not CRMs!

2.  Why did you decide to join Molecule?

After trying my luck in different industries after ThomsonReuters, I wanted to get back into the financial services technology space. Molecule's solution "wow-ed" and made me excited about bringing it to market. For companies that have a need and utilize old technology for calculating P&L, position, and risk, Molecule is a game changer both from the ease of use and time-saving perspective.

3.  What is something that you’ve already learned about the industry or company that has surprised you?

The deep dive into the power market made me realize how challenging it is to learn, trade, and deal in this space.

4.  One of the things Molecule prides itself on is the time savings our software gives customers. More than one person has said that we’ve saved them two hours each day. If you were given two extra hours each day, how would you choose to spend them?

Spend more time with my family, learn a new language, restore and upgrade a Range Rover Defender 110, and go off the grid for a bit.

5.  For fun, what are your top three favorite apps?

I like puzzles, so Progress & Super Sharp. Proshot for some light photography and Flipboard to stay updated on tech, sports, travel, and autos, etc.

We are not finished either. Personally, I'm always recruiting for the sales team. Word on the wire is that we just hired a new developer in Spain! If you like what you have seen of Molecule so far, hit us up. We are always in the market for the best talent.

PeopleSales

What will I Save by using Molecule?

We frequently get questions asking how our pricing model works, especially as compared to other vendors in the ETRM/CTRM industry. In answering the question "What will I Save?", we first need to understand the pricing model for legacy (or on-premise) software.

Legacy Systems

Typically, with on-premise (or even single-tenant cloud) software like an ETRM, pricing has three components:

  • Perpetual License Fee
  • Annual Maintenance
  • Services (i.e., installation)

For a mid-size ETRM/CTRM customer, let's say the license fee is $1m on a 4-year contract. This is the most negotiable part of the contract because 1) it's not where the real money is paid and 2) the underlying variable cost (what it costs to send you the software) is essentially $0.

The annual maintenance fee, however, is where the margin gets real. Annual maintenance is often 20% of the standard pre-negotiation license fee. So, $200k/year in this example. This is less negotiable because this money pays for the development team. We've also heard of this as "the money that pays for new features and bug fixes," which makes our sales team go crazy.

Services – now here's where the major cost lies. On a greenfield ETRM/CTRM implementation, services can start at several hundred thousand dollars. However, implementations typically go into the millions, or even tens of millions (not because they're budgeted that way, but because they quietly end up ballooning in scope and time). The cost is unbounded – and from what we've seen, services is typically 75% of the total cost to the customer of an ETRM/CTRM installation. (CTRMCenter has an article on this, here). This is the case for numerous good and bad reasons. But, from our perspective, the most important reason is that because of a time-and-expense billing schedule, vendors are not incentivized to keep billing for services low.

Molecule

Molecule is different. In general, users pay a single package price, plus applicable sales tax. That's it. The price includes implementation, "paying for new features," the license fee, etc.

We have a minor fee schedule for a handful of things like new users, custom reports, and re-configuration of the application – but most of our customers never pay any additional fees.

Package prices are calculated, on purpose, to be roughly equivalent to the 4-year amortized license fee + maintenance fees of another ETRM/CTRM. This takes into account that license fees are often heavily discounted for smaller customers – but the point is, we're not aiming for the lowest license fees in the industry.

What users just don't pay for with Molecule is implementation. We take on the risk of new implementations knowing that the payoff for our customers (and for us) is enormous. We are aggressive about bounding the total cost and time of the implementation – because we are incentivized to do so. We do things like:

  • Assigning an expert project manager on Day 1
  • Avoiding implementation-related travel, if at all possible
  • Figuring out what "success" means for the customer, and keeping laser-focused on that goal
  • Building tooling for our Customer Success (support & implementation) team, so that they can get their job done more quickly

This is how we create the most value. We believe that implementation costs, in Six Sigma terms, are waste (muda, mura, and/or muri). Our customers don't benefit from paying tons of money for implementation, and neither does our enterprise value.

Summary

Basically, our customers pay industry-standard software fees – but end up saving 75% of the total cost of an ETRM/CTRM because we don't charge for implementation.

SalesFeatures