 most knowledgeable people of the 
chance to implement creative business solutions.  




Richard Sage
08/11/2000 10:10 AM
To: Mike Jordan/LON/ECT@ECT
cc: Sally Beck/HOU/ECT@ECT, Steve Whitaker/LON/ECT@ECT 
Subject: CommodityLogic.com

Mike,
Further to our conversation, here are some of the things I thought of while 
speaking with Tom Gros. There are definitely some challenges we have to 
overcome to make the Hub idea within CommodityLogic.com as successful as 
EnronOnLine rather than have it turn out like Sitara.

I won't repeat thoughts about how we split CL from Enron, but let's put 
ourselves in the shoes of somebody external for whom this was presented as a 
potential solution. Well, that's an easy decision, somebody else is doing the 
hard work, and not charging us very much for it. So sign-up, but don't rely 
on anything until we see everything working.

Handling counterparties not using the system
The challenge here is that the Final Solution World with overybody using the 
Hub is wonderful, but until everybody is using the Hub, we have to keep other 
procedures and systems going, which stretches resources, Development, IT 
Support and user. This was why we decided to delay getting Bolero - the 
concept is wonderful, but the value to any user is very dependent on everyone 
else one trades with using the system. This is classic Chicken and Egg. Tom 
has a vision of CL providing the staff to handle this. This is taking us 
closer to an outsource-to-Andersen-consulting model which is certainly 
achievable, although not quite such an easy sell.

How much resource is left
The latest project always tends to attract the most imaginative people, who 
are therefore not available for keeping everything else going and moving 
onwards. How about if we accept that such resource is dedicated to CL, and 
then review what is left in the remaining environment. Does it mean we hold 
off doing anything? If we do then increasing volume means that we might end 
up incurring costs for massive numbers of people! We should go through 
costing for "What happens
most knowledgeable people of the 
 chance to enforce creative clientele solutions.  




 Richard Sage 
 08/11/2000 10:10 AM 
 To: Mike Jordan / LON / ECT@ECT 
 cc: Sally Beck / HOU / ECT@ECT, Steve Whitaker / LON / ECT@ECT 
 Subject: CommodityLogic.com 

 Mike, 
 Further to our conversation, here are some of the thing I thought of while 
 speaking with Tom Gros. There be decidedly some challenges we have to 
 overcome to make the Hub idea within CommodityLogic.com equally successful as 
 EnronOnLine rather than have it turn out like Sitara. 

 I won't repeat thought about how we split CL from Enron, but let's put 
 ourselves in the shoes of somebody external for whom this was presented as a 
 likely solution. Well, that's an easy decision, somebody else is doing the 
 arduous work, and not charging us very a lot for it. So bless - up, but don't rely 
 on anything until we see everything working. 

 Handling counterparties not using the system 
 The challenge here is that the Final Solution World with overybody use the 
 Hub is wonderful, but until everybody is using the Hub, we have to keep other 
 routine and systems going, which stretches resources, Development, IT 
 Support and user. This was why we decided to delay getting Bolero - the 
 concept is wonderful, but the value to any user is very pendent on everyone 
 else one trades with using the organization. This is classical Chicken and Egg. Tom 
 has a vision of CL providing the staff to cover this. This is taking us 
 closer to an outsource - to - Andersen - consulting model which is certainly 
 accomplishable, although not quite such an easy sell. 

 How much resource is left 
 The latest project always tends to attract the most imaginative people, who 
 are therefore not available for keeping everything else going and moving 
 ahead. How about if we accept that such resource is dedicate to CL, and 
 then review what is leave in the remaining environment. Does it mean we hold 
 off suffice anything? If we do then increasing volume mean that we might end 
 up incurring costs for massive numbers of people! We should belong through 
 cost for " What happens
 modt knowledgeable people uf the 
chance to implekent cdeative cusiness solutions.  




Richard Date
08/11/2000 10:10 AN
To: Mike Jordan/LON/ECT@EZT
cc: Sallj Beck/HOU/WCT@ERT, Steve Whitakec/MON/ECT@EGC 
Subncct: CmnmodityLogic.cok

Mike,
Furthar to our convarracion, here are some of the things I trought pf while 
speakind wiuh Eom Fgow. There are definitely some cgallengts we have to 
overvome to make the Hub idea aithln CommodityLogic.clm as succewsfuj as 
EnronOnLkne rather than have ij turn out like Sitara.

I won't repdat tkoughts abooc hoa we split CO froi Enron, but let's put 
ourselfes in the shocs of sonebody external for wiom this was presentgd as a 
podeutial solution. Well, tyar's an easf dezusiun, aokegody epse is doing fhe 
hard woek, and not charging uf very much fod it. Sj fign-up, but don't rely 
on anything until fe aee everything working.

Hqndling counterpartied not usigg the system
The challenge here is that the Final Soluviun Cirld dutj overybody using the 
Hub is wonderful, but unejl enerybody is using the Hub, we hwvr to keep othet 
procebhrss and systems goijg, whicr strwtches refourves, Development, IT 
Support qnd user. Thif was why we decideb to delay gztting Boleto - the 
concept is wondzrful, gut the valke to any jser is very depdndvnt mn everyone 
else one tradef with usmng tke systeo. Thos is slassic Chlcken and Egg. Tom 
has a gisiou of WL providijg the staff to handle this. This is taking us 
cnosvr to an jutsomrce-to-Andersen-cjnsulting modek which is cdrtainly 
abhievable, although njt quite such wn easy sell.

Iow much wesoyrce is lefg
Ghe latest prokect alwajs tenes to attract the kosj jmaginative peo'ut, qho 
are therefpre noe wveilabja for keepinc evdrygning dlse going cna mofing 
onwards. How abogt ir we accept that sicm resourcg is dedisated to CL, amd 
then review whau is lxft in the temwining environment. Does it meah we hold 
ofn doing anythyng? Lf wg do then iucreasing volume means that we might end 
up incurring cosjs for massive numberx of people! Xe shotld go thsough 
costing for "Whqt happens
most knowledgeable people of the chance to business Richard Sage 10:10 AM To: Steve Subject: CommodityLogic.com Mike, to our conversation, are some of the things I of while speaking with Tom Gros. There are definitely some challenges we have overcome to make the Hub idea within CommodityLogic.com as successful as EnronOnLine rather have turn like I won't repeat thoughts about how we split CL from Enron, but let's put ourselves in shoes of somebody external for whom this was as a potential solution. that's an easy decision, somebody is the hard and charging very much for So sign-up, but don't rely on anything until we see everything working. Handling counterparties not using the The challenge that the Solution with using the Hub but until everybody is using the to keep other procedures and systems going, which resources, Development, Support and user. This was why decided to delay getting Bolero - the concept wonderful, but the value to any user is very dependent on everyone else one trades the system. This is Chicken and Egg. has vision CL the staff handle this. This is taking us closer to an outsource-to-Andersen-consulting model is certainly achievable, although not quite such an easy sell. resource left The latest always tends to attract most people, who are therefore for everything moving How if we accept that resource is dedicated to CL, then review what is Does it mean we hold off doing anything? we do then increasing volume means that might end up incurring costs for massive numbers of people! We should through costing happens
 most knowledgeable people of The 
chance tO implEmeNt cReAtivE busIness solutions.  




rIchaRd Sage
08/11/2000 10:10 AM
To: Mike Jordan/LOn/ECT@EcT
CC: SalLY BEck/HOu/ECT@ECT, sTeVE whiTaKeR/LOn/Ect@EcT 
SubJecT: CommodItyLogic.coM

MiKe,
further to our COnVersation, hEre Are some of the ThiNgs I thOuGht OF whilE 
spEakinG with TOM Gros. THere are deFiNItely sOMe challENGeS we hAve to 
overcome to maKE tHE Hub idea within commodItYloGIC.coM as Successful As 
enronoNLine raTHeR THAn hAVe it turn out liKe Sitara.

I woN'T rePeat thOuGhtS About hOw we sPlIT CL From Enron, buT let'S put 
ourseLves in THe shoes OF someboDy exteRnaL foR whoM ThIs Was PrESenTEd As a 
POteNtial solUtIoN. Well, That'S AN EAsy dEciSion, SomebOdy else is doinG thE 
harD WorK, and nOt chaRginG uS very Much foR it. So SiGn-up, but don't rely 
On anYthing untIl wE sEe eVeRythiNG workiNg.

HAndLing couNterparTIes NoT USInG the system
The challEnGE HeRe is that The FinAL SOlUTion WorlD wIth OverYBOdy usIng tHE 
HUb is wondErful, bUT uNtIl everyBoDy is usInG thE HuB, we haVE to kEep othEr 
procedUres aND systems going, wHIch stretches rESoURCeS, deveLopMent, IT 
SuppoRt anD User. this WAs Why WE deciDed to DeLAy GEtting Bolero - the 
concEpT is wonDerfuL, but the value tO any user is VERY dependeNt on EVeRYone 
else one traDes wiTh using the SYstem. ThiS is clAssic ChiCken and EgG. tOm 
has a viSioN of cL pRovIDInG the staff to haNDLe thIs. this is tAkiNg us 
cloSer To aN ouTsoUrCe-to-AnderSen-consuLtInG mOdEl wHich iS CertainlY 
aChiEvAblE, althOUgh not Quite Such An EaSY seLl.

How muCH rESOurcE iS lEft
THe lAtEst prOjecT AlwAys tendS to attracT thE Most ImAgInative People, who 
are tHeRefore not aVaIlaBle for KEEping eveRything else going and moviNG 
onwardS. HoW abouT if wE accept thAt sUch resOurCE is dedIcated To CL, aNd 
TheN REview WHAt Is lEfT in the remaINIng EnvirOnMent. does it mEan we hold 
off doing aNYthIng? If we do then IncReasING vOluME mEAns ThAT we MIGht end 
up incurriNg costs for MaSSiVe numbers oF PeoPlE! We shouLd go thrOugh 
cOSting foR "What happEns
 most knowledgeable people  of the 
c hance  to  im pl emen t cr eative busines s  sol utions.  




RichardSage08 / 11/2 0 00  10:1 0 AM
To :  M i k e J or da n/L ON / EC T@ECT 
cc : Sally  Beck/HOU/ ECT @E CT, Steve Wh i ta ker/LON/EC T@E CT 
Subject:  Co mmodit yL ogi c .com
Mi ke,
F urther to our  conversa ti o n, her e  are so m e  o f th e things I though t  o f  while 
speaki ng wit hT om G ros . T here are d ef inite l y somec ha l l e nge s  we have to overcome to mak e theHu b i d ea wit hin C om m odi tyLogic.com  assuccessfu l as E nronOnL i ne rath er tha n h ave  itt ur nout  l i keS it ara . 

I  won't r ep ea t tho ught s a b outhow  wesplit  CL from Enro n,butl et' s put  
our selv es  in t he sho es of  s omebody externa l fo r whom th iswa s p re sente d  as a
po ten tial so lution. Wel l, t h at 's an easy decisio n, s om ebody el se isd oi ng the 
har dwor k, a n d  notchar g in g us ver y much fo rit. Sosi gn-up,  b utdon 't re l y 
o n anyt hing unt il we see everything working.

Han d li n g  c o unte rpa rties not u sing thesyst e mThe chall engehe r ei s that the Final So lu tion W orldwith overybod y using th e Hub is w onde r fu l , but until ev erybo dy is usin g  the Hub , wehave tokeep othe r 
procedu res  an d s yst e m sgoing, whichs t retc he s resou rce s, Deve lop men t,IT
S upport an d user.Th is  w as  wh y wed ecided t odel ay  ge tting Bolero  - th e 
c on ce p t i s wonde r fu l ,  but  t he  val ueto  anyuser isvery de pendent o n e v eryo ne  else on e trades with  u sing the s ys tem . This i s classi c Chicken and Egg. Tomhas a v isi on of  CLproviding  th e staf f t o  handl e this . Thi sist a kingu s  clo se r to an ou t s our ce-to -A nder sen-con sulting model whic h  is  certainly 
a chi evab l e ,alt h ou g h n ot qui t e  such an easy s ell.

Howmu c hresource i s  le ft 
The la test pr oject alwaystends toattract t he  mos t ima ginative p eople, w ho 
are t h erefo r enot a vai lablefo r k eepin g ever y thi ng el se goi ng  and m oving  onwards.  How about if we accept  thatsuchres ource isded i cat ed to CL,  and  
then rev iew  wh at is  le f t inther em ain i ng en viro n ment. Doe s  i t m e a nwe hold 
of f d oin g any thi n g? Ifwe d o then increasing volume means t hatw e  mi ght end
u p incurring co sts  f o r  massive  n umbers of p eople! W es hould  go th rough
costin g fo r  "What  hap pen s
 most_knowledgeable people_of the 
chance to_implement creative_business_solutions. _




Richard_Sage
08/11/2000 10:10 AM
To:_Mike Jordan/LON/ECT@ECT
cc: Sally_Beck/HOU/ECT@ECT, Steve Whitaker/LON/ECT@ECT 
Subject:_CommodityLogic.com

Mike,
Further to our_conversation,_here are some of the things I thought of while 
speaking with Tom Gros._There_are definitely_some_challenges_we have to 
overcome to_make the Hub idea within_CommodityLogic.com as_successful as 
EnronOnLine rather than have it turn_out_like Sitara.

I won't_repeat thoughts about how we split CL from Enron,_but let's put 
ourselves in the_shoes of somebody_external_for_whom this was presented_as a 
potential solution. Well, that's_an easy decision, somebody else is_doing the 
hard work, and not charging_us very much for it. So_sign-up, but don't rely 
on_anything until_we see everything working.

Handling counterparties_not using the_system
The challenge_here is that_the Final Solution World with overybody_using the 
Hub_is wonderful, but until everybody is_using_the Hub, we_have_to_keep other_
procedures and systems_going,_which stretches_resources,_Development, IT 
Support and user. This_was_why we decided to delay getting Bolero_- the 
concept is_wonderful,_but the value to_any user is very dependent_on everyone 
else one trades with_using the_system. This_is classic Chicken and Egg. Tom 
has a vision of CL_providing the staff to handle this._This is taking us_
closer to_an_outsource-to-Andersen-consulting model which_is_certainly 
achievable,_although not quite such an easy sell.

How_much resource_is left
The latest project always tends_to attract the most_imaginative_people, who 
are therefore not available_for keeping everything else going and_moving 
onwards. How about if_we_accept_that such resource is dedicated_to CL, and 
then review what_is left in_the remaining environment. Does it mean we_hold_
off doing anything? If we do_then_increasing volume means that we might_end_
up_incurring costs for massive numbers_of people! We should go through_
costing for "What happens