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Best Practices in Telecom Expense Management

A look at each piece of the telecom lifecycle, with common practices compared to best practices.

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Best Practices in Telecom Expense Management

  1. 1. Best Practices for TamingRunaway Telecom CostsThe webinar will begin in afew moments...
  2. 2. Todays Speakers Roger Topp Business Development Manager vCom Solutions Amelia Ball Engagement Manager vCom Solutions2 Telecom management made simple
  3. 3. Agenda• Best Practices in Telecom Lifecycle Management (TLM)• Three Steps to Tame Costs• Case Study – Heald College• Q&A3 Telecom management made simple
  4. 4. Best Practices in TelecomLifecycle Management (TLM) Telecom management made simple 4
  5. 5. What is Telecom Lifecycle Management (TLM)?5 Telecom management made simple
  6. 6. Best Practices: Sourcing & ProcurementSOURCING COMMON PRACTICES BEST PRACTICES • Work with multiple carries and vendors • Perform carrier-agnostic audits • Negotiate with carriers directly • Leverage strategic sourcing experience and aggregated buying powerPROCUREMENT COMMON PRACTICES BEST PRACTICES • IT staff places orders with multiple carriers • SPOC for orders • No standardized process for testing and • Formalized process and tracking deployment6 Telecom management made simple
  7. 7. Best Practices: Inventory & ServiceINVENTORY MANAGEMENT COMMON PRACTICES BEST PRACTICES • Limited visibility into inventory • Tool allowing centralized tracking with • Extract technical specifications manually searchable data from carrier invoices • Common-language applied across services for better visibility and optimizationSERVICE COMMON PRACTICES BEST PRACTICES • Contact each carrier’s technical support • SPOC for changes, support and escalations for trouble-tickets and technical issues • Direct access to carrier system and • Different escalation procedures for each real-time escalation procedures carrier7 Telecom management made simple
  8. 8. Best Practices: Invoices, Accounting & BIINVOICE MANAGEMENT & ACCOUNTING COMMON PRACTICES BEST PRACTICES • Multiple invoices; manual audit • Electronic, consolidated invoices with • Invoices manually coded and allocated automated audit • Manually load to AP system • Automated GL coding and cost allocation • API or Batch filesANALYTICS & BI COMMON PRACTICES BEST PRACTICES • Manually generated reports and trend • Real-time reporting on usage and trending analysis • Clear path to ongoing cost reduction • Rely upon the carrier to create savings8 Telecom management made simple
  9. 9. TLMs Top 5 Expense-cutting LeversMID-SIZED BUSINESS TEM PROGRAM SAVINGS 45% 42% 40% 35% 30% 29% 25% 20% 18% 15% 10% 10% 5% 1% 0% Audit Optimization Late Fee Chargeback Contract Reduction Controls Negotiation Source: AOTMP, 20099 Telecom management made simple
  10. 10. Three Steps to Tame Costs Telecom management made simple 10
  11. 11. Step 1: Ask the Right Questions • How do we manage it today? • Do we have the right technology? • What are we paying in relation to the market? • Where do we still rely on manual processes? • What don’t we know?11 Telecom management made simple
  12. 12. Step 2: Commit to Three Key Changes• Complete a comprehensive inventory audit and create a technology blueprint• Change telecom costs from an invisible expense to a real business metric – Give key managers visibility to telecom and network spend• Consider alternative methods of managing the telecom lifecycle12 Telecom management made simple
  13. 13. Step 3: Understand the Options SERVICES SOFTWARE COMBINATION • Auditors – contingency audit • Server-based TEM • Reseller/ Consultant and expense reductions • Software-as-a-Service TEM • TEM software + paid • Consultant or IT/Professional professional services Services firm • BPO-TEM funded by distribution13 Telecom management made simple
  14. 14. BPO Distribution Model Advantages• FREE or highly subsidized software• Aggregated buying power – Across multiple carriers• Free or highly subsidized Professional Services• Carrier agnostic sourcing and benchmarking – Client-driven carrier selection – Transparency• Centralized customer-support and operations14 Telecom management made simple
  15. 15. Case Study – Heald College Telecom management made simple 15
  16. 16. Case Study – The Situation• 2500 employees• 15 locations (California, Oregon and Hawaii)• No one owned or managed telecom for 145 years• Multiple bills from multiple carriers (over 100 invoices monthly)• Difficulty assigning telecom costs directly back to business units• No documentation or verification for current services• No centralized or automated view of telecom spend, inventory or activities• Planned growth would add to complexity of the current situation16 Telecom management made simple
  17. 17. Case Study – The Transformation• Inventory audit• Standardized requirements• Replaced 94% of Primary Rate Interfaces (PRI’s) for phone services• Terminated services that were no longer being utilized• Named all inventory within vManager and assigned locations and cost centers• Customized AP report for invoice allocations by cost centers• Document library for all contracts• Added 400 wireless devices to vManager inventory17 Telecom management made simple
  18. 18. Case Study – Results• Reduced invoices from 100 to 10• Overall savings of 40% on Telecom spend for current services, annual saving of 200K• More accurate budget projections with the use of vAnalyzer tool• Increased visibility and confidence that what is paid for is being used• Saving time and money which allows focus on other projects to grow business18 Telecom management made simple
  19. 19. Questions & Answers19 Telecom management made simple
  20. 20. Thank You.www.vcomsolutions.com