Finding Efficiencies with Telecom Expense Management
Enterprise communications and telecommunications networks often represent an accumulation of legacy technology and services that are no longer used. Over time these legacy services contribute to unnecessary spending with carriers and additional costs to maintain. Often managers believe
- They do not have a problem.
- The problem is too small to bother addressing.
- The ROI is too small because finding issues and implementing solutions requires too much work to achieve savings.
Such views are shortsighted. An error one month may not seem to be a big deal, but that same error compounded over 12 months or more begins to add up to big dollars.
In addition, a small error on a service that appears on several bills can also accumulate. The cost of not acting is real. Proactive enterprises can save between 2% to 18% of their telecom budget by proactively looking for cost savings. Managing expenses is an important factor in improving corporate profitability.
To get maximum value from TEM programs enterprises need
- A system to aggregate the telecom expenses and unify how they are managed.
- Adequate management controls with people and reports to track expenses.
- A combination of people and software to manage telecom spend.
- The time and resources to analyze cost savings opportunities and implement savings.
Telecom Expense Management (TEM) programs can address these issues and produce savings. Management of the telecom expense lifecycle requires knowledge to understand how things are interrelated. Deficiencies in one area can cause problems in other areas. Efficiency gains will come from seven key areas:
- Procurement/Service Order Activity
- Invoice Management/Processing
- Expense Validation/Audit
- Usage Chargeback
- Bill Payment
This is part one of a two part blog. In the next installment (Implement New Efficiencies with Telecom Expense Management Programs) you’ll learn about implementing the efficiency gains identified in each of the seven areas listed above.