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Telecom Expense Management (TEM)

Telecom Expense Management (TEM). “The cost of telecommunications now ranks in the top five expenses for most companies, up from about No. 10 a decade ago.”. “The average Fortune 500 company spends about $116 million on telecommunications services each year.”.

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Telecom Expense Management (TEM)

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  1. Telecom Expense Management (TEM)

  2. “The cost of telecommunications now ranks in the top five expenses for most companies, up from about No. 10 a decade ago.” “The average Fortune 500 company spends about $116 million on telecommunications services each year.” “On average, 8 to 12 percent of telecom expenses are in error.” The Challenge $116m spend x 10% errors = $11.6m LOST each year

  3. But That Is Only Part Of It … • Gain overall visibility into, and control over, telecom spend • Manage explosive growth of wireless devices • Properly allocate telecom costs • Support business growth and M&A • Reduce or redeploy staff • Optimize network/wireless price and performance • Plan network strategy and justify decisions to management • Provision network conversions and new assets • Effectively negotiate contracts

  4. Wireless Voice Data Curing the Problem Traditional approaches treat the symptoms • Manual/outsourced invoice auditing – often done on a “point” basis • Spreadsheets • Static inventory database or manual updates To cure the problem, you need… • Automated Telecom Expense Management (TEM) • Across the telecom asset lifecycle • For every telecom asset

  5. Monitor, Analyze, Plan, Optimize Internal Charge-Backs/Cost Allocation Asset Database/Inventory Automatically Updated Automatic Invoice Processing & Auditing Workflow Tracks/Alerts on Progress and Issues Order/Procure Enterprise Validation AgainstContracts (Rates, Service Level Agreements, MARC, etc.) Validation With Assets/Inventory In Use Processes Orders & Service Requests Provisions Transmits Invoices Telcos Automating the Telecom Lifecycle

  6. Summary Dashboards for Visibility • -‘At a Glance’ visibility into Key Performance Indicators • - Alerts users to potential issues First Click: Access Detailed Info - Provides more information to diagnose potential problem areas Second Click: Take Control - Access to the system where data can be input and action taken Gaining Visibility & Control

  7. Results • Base system: • 7%-40% of processed telecom spend saved annually • 50% labor reduction • 3-12 month ROI • Additional services: • Sourcing: 25%-50% of renegotiated telecom spend saved • Auditing: 10-20% of processed spend saved

  8. Results

  9. Tips to Save Millions • Tip #1: Consolidate • Centralize all billing to a TEM team for processing and approvals • Consolidate the number of vendor invoices • Savings can be significant by reducing amount of checks produced • Tip #2: Validate • Match every expense to a VALID employee or location • Go after low hanging fruit first: • Validate most expensive circuits, costs per minute, etc. • Remove known waived charges (COC, ACF, Install) • Analyze long and expensive calls

  10. Tips to Save Millions • Tip #3: Negotiate • Negotiate better contracts by knowing what you have • Establish company procurement people in the contract • Savings can be dramatic by reducing non-authorized purchases • Tip #4: Optimize • Automate as much of the lower value activities as possible • For wireless devices, make voice plan optimization Priority #1 • Communicate the costs of 411 on wireless devices • Emphasize free options such as 1-800-GOOG-411

  11. Thank You John Shea Chief Marketing Officer, Rivermine john.shea@rivermine.com 703.995.6014

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