Telecom Expense Management (TEM)

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Telecom Expense Management (TEM)
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The Challenge
116m spend x 10 errors 11.6m LOST each year
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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 MA
• 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

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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

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Automating the Telecom Lifecycle
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Gaining Visibility Control
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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

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Results
Examples Cost Savings
Global 500 Food Service Provider Reduced wireless costs by 25, over 1 mil/year
Fortune 1000 Manufacturer Reduced telecom costs by 7/year, 2.5 mil/year Over 15 million saved to-date Redeployed 80 of order and invoice processing staff
Fortune 500 Hospitality Company Identified and helped to plan a VPN conversion resulting in 16mil/year in cost savings
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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

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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

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Thank You
John Shea Chief Marketing Officer,
Rivermine john.shea_at_rivermine.com 703.995.6014