Improving financial management of telecom services within your organization is never easy, but managing the financial component of telecom can be a nightmare. Multiple carriers, multiple contracts, different locations; these factors can all lead to poor financial management and cost creep. Add mobility into the picture and you get a hodge-podge mess (I use hodge-podge because a customer used that very term the other day!).
It is easy to avoid looking at the financial costs of managing telecom (much like your personal finances… I can relate), but what are the risks of doing nothing? There are plenty of reports from some of the top research names in the industry, and here are some of the key findings:
Telecom costs rank in the top 5 expenses for most companies (Gartner)
80% of carrier bills contain errors (Gartner)
Telecom analysts spend on average 20% of their time identifying errors (Gartner)
Enterprises forfeit 12%-17% of telecom expenses without a proactive approach to telecom cost management (Aberdeen Group)
The Benefits to Financial Management of Telecom
Peace of mind with a complete and accurate inventory (and knowing you can go to your board of directors or executive team with an optimized environment!)
Profitability & lower cost of ownership through tighter financial controls
Time: frees up your time and allows you to focus on your core business
Future proofing your environment and technology to align with your business both for today and in the future
What are the components of Financial Management in Telecom?
The first step in determining the areas of focus would be to conduct an Inventory Audit and Assessment. The following items should be sections of analysis.
Identify and dispute all billing inaccuracies and unauthorized third party billing
Assess pooling minutes, voice and data plans and discounts
Identify compliance vs. approved policy
Identify text and data overages
Identify subscriptions and downloads
Financial / Invoice Management
Invoices & Optimization
Maintain accurate and current inventory
Monitor pricing, discounts, contracts, and invoices
Track credits and adjustments are applied and posted
Telecom Asset Repository
Metricsand ROI Measurement
Month over month spending
YTD spending vs previous year
Percent of cost savings
Percent of total telecom spending vs overall company spending
Budget allocation for next fiscal year
Mobility Program Management
Corporate Help Desk
Establish a process to work with internal IT staff
Maintain and enforce approved policy for devices, plans, etc.
Streamline ordering process
Vendor management and Level 1 troubleshooting
Single POC for all inquiries and issues
Order new / replacement devices
Refresh, wipe, or upgrade of devices
Warranty replacement or repair of devices
Accessories acquisition if approved
Mobility Expense Management
Comprehensive inventory off all devices and associated plans
Ongoing optimization of plans to avoid unnecessary overages
Device asset allocation and GL coding
The bottom line is, once you do a current state review and analysis of every aspect of your telecom environment, it becomes easier to determine where you can cut costs and lower the cost of managing these services, however, not doing anything leads to a continued state of chaos.
Contact us to learn more about our Telecom Assessment.