Telecom Expense Management Overview Fortune Consulting 20151

Telecom Expense Management Overview

Fortune Consulting 2015 1

What is Telecom Expense Management?

Telecom Expense Management (TEM) is a specialty financial discipline involving the application of systematic analysis to telecom service orders, inventory and

bills regarding telecom services.

Source -Wikipedia


Industry Profile

The Providers / Suppliers

Over 70 different TEM suppliers

The top tier amount to about 21 providers

Breakdown of services

37% of enterprises use their TEM provider for both fixed and wireless

40% of enterprises use their TEM provider only for wireless telecom management

24% of enterprises use their TEM provider only for fixed telecom management

Source: 2011 AOTMP Industry Report


Most Common Selection Criteria and Core TEM Activities

Invoice Processing

Reporting & Analysis

Auditing

Optimization

Asset / Inventory Mgt.

Service Inventory Mgt.

Source: 2011 AOTMP Industry Report


Enhanced TEM Activities

Policy & Governance

Help Desk Mgt.

Mobile Device Mgt.

Risk Mgt.

Security

Sourcing & Procurement

Service Ordering

Change Control

Contract Management

Etc.


About Fortune Consulting

Fortune provides a wide range of IT/Telecom Consulting Services

Currently 50 % of our Practice is dedicated to Customized Expense Management Programs

Product set varies by client – financial vs. technical activities

Small/medium enterprise focused Some spending < $500K annually on services under management

TEM not necessarily our first or only client engagement


They don’t trust the service provided to engineer, implement or bill properly.

Can’t afford the distractions necessary to effectively deal with the administrative burdens associated with IT finance management.

Most can’t afford internal talent to do everything the supplier should but won’t do. A soundly managed TEM can be a cost effective alternative.

The desire to aggregate service providers/invoices under one entity, not necessarily one of the incumbent service providers.

They want an independent providers of expense management services, will assure rate accuracy and contract compliance without obligation to the underlying service provider(s).


What they don’t know does hurt them Not sure if they have contract or not knowing the terms Don’t understand the entire cost base

Lack of time and or experience to address unpredictable outages and/or requests How to effectively escalate to resolve outages Unfamiliar with the current state of technology


The TEM Challenge – from our perspective A properly managed standard TEM program diminishes its value over time

As costs are stabilized and brought into line, TEM becomes just another expenses item ripe for elimination Our answer: CTMS - A holistic approach that broadens our support capability thereby allowing us to

maintain/enhance our value to the client

Pain Point focused – if they have a specific one we focus on that Various product verticals

Strategy & PM support Engineering, Design & Optimization Financial Management, Cost Containment & Recovery Service Level Requirements, Definition & Compliance Productivity Tool & Monitoring Services Mobility Application Development, Deployment & Management

Across multiple disciplines

Hardware Software Network Infrastructure H/R Other


For end users it will still be required

While some service providers are getting better at invoicing, most are not. The larger carriers are looking to implement “tariff protections” from historic audit

liabilities, driving the increased need to stay on top of invoice accuracy. Multiple suppliers/invoices will continue to be the norm in most environments. Reduced internal headcount will drive supplier consolidation along with the desire to

identify a common management point of focus. Change control will still be a critical component in managing inventory and cost of

ownership accuracy.

For service providers

The field of players will consolidate. Need to continually reinvent the offering to stay in the game.


Providing IT and Network Management Solutions since 1992

Engineering & Design

Procurement & Contract Negotiation

Implementation Planning & Support

Project & Financial Management

Audit Services and Contract Compliance

TEM/TLM/CTMS


George GiardelliPresident, Fortune Consulting

[email protected]

732-483-2180


Documents

Telecom Expense Management Overview Fortune Consulting 20151