A Real View of Mobile Expenses

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1 Thought Leadership SERIES OCTOBER 2013 A Real View of Mobile Expenses What do companies need to do to make better business decisions? They need to have access to information that is actionable. No business wants to spend money inefficiently. However, telecom is unfortunately an area where wastefulness occurs because the visibility isn t always there. This is further complicated by the costs of managing BYOD. How does the enterprise manage mobile expenses in a mixed environment with a global workforce? By Stephanie Blanchard OCTOBER 2013 INSIDE: Data Impact Taking Charge Controlling Cost The Keys to Expense Management Going Roam Going Forward P2 P2 P3 P3 P3 P4 SPONSORED BY

2 What do companies need to do to make better business decisions? They need to have access to information that is actionable. No business wants to spend money inefficiently. However, telecom is unfortunately an area where wastefulness occurs because the visibility simply isn t there. When mobile phones became widely available, employees would expense their (sometimes exorbitantly) high phone bills. Enterprises quickly came to the conclusion that there was a better way and tried to take financial control managing both the device and its usage for huge savings, especially when combined with contracted carrier rates. Fast forward to the last few years, as more employees brought in their own smartphones and tablets and relied on their own data plans, the responsibility shifted back to the user, but the costs are still in play. In fact, the cost of managing BYOD is equally as important. In BYOD programs, employees are getting stipends so telecom expenses do not go away, said Kevin Paolino, Vice President Sales & Marketing, Stratix. Organizations of all sizes struggle with tracking the inventory of both corporate devices along with these employee-owned devices and stipends. But that s not all that needs to be considered when it comes to mobile expenses. Are companies actually paying more for services that could have TAKEAWAY How do enterprises track inventory of corporate devices along with those employees who receive a monthly stipend? been procured at a discount? How are the mobile expenses being reported? Are some telecom items being allocated to travel by mistake? Or maybe a manager has approved a charge for a personally-owned device or data plan stipend, but neither is company policy. That s where a mobile expense management solution comes in. It not only enables accurate reporting and actionable insight, but can promote a consistent approval process so that the right amount is reimbursed, or not. Mobile expense management is a way to reduce costs, but it also puts best practices into place, according to Paolino. Data Impact Most organizations are looking at and incorporating BYOD into components, but most are not either all corporate liable or all BYOD. It s very much mixed environments, said Kevin Donoghue, President, Telesoft. Donoghue sees more organizations trying to determine how data usage will impact the enterprise. We believe charges are moving towards data, than voice, which are becoming unlimited plans, he said. As data moves away from unlimited plans (because carriers realize the growth potential due to the app explosion) more organizations are looking to manage data volume on an ongoing basis. Ken Lienemann, Senior Vice President, Tangoe, also sees many hybrid models among the enterprises he works with. No matter what the model though, he strongly advises setting up a mobile policy, which includes everything from the types of devices allowed to the corporate information that can be accessed to the expense policy itself. Taking Charge Organizations can take charge in four steps, Lienemann said: 1. Figure out what you are trying to accomplish 2. Assess how to make it happen 3. Implement the program 4. Manage the program OCTOBER 2013 MEM p2

3 A point to remember not all mobility programs are suitable for enterprises of all sizes. Something that is highly trendy is not necessarily what is best for you, Lienemann said. The SMB market and larger, for example, has needs that run up and down and across business units, in contrast with a smaller company with 150 employees or less. In addition, mobility is moving fast. It s not just about the devices on the market, but what the business strategy is. Go back to step one: What is the organization trying to accomplish? Is it trying to mobilize specific services or streamline particular processes? Whatever the objective, technology can enable, but is not the end-goal in and of itself. Paolino said, You have to look at the mobile ecosystem as a whole. That includes outlining the type of programs offered (corporate-liable, BYOD, CYOD, a mixed environment), selecting approved device types, security platforms, carrier selections and activation all the way down to support for the end users. Even in a BYOD scenario, corporations are realizing that if a device breaks, it negatively impacts the enterprise, Lienemann said. That s usually a loss of productivity and time. Controlling Costs Cost considerations must apply across the lifecycle in the ecosystem as well, Lienemann said. That comes in to play particularly with device type. Rugged has a better cost of ownership for industrial industries than consumer smartphones. But for many industries, consumer smartphones are more than adequate. When BYOD is enabled, what is the company actually spending? In terms of stipends, are they based on geography or user profiles? Are TAKEAWAY Cost considerations must apply across the lifecycle. they tiered, for say executive in the C-Suite, or available to certain departments? In some cases, corporate liable plans are actually a far better fit than the stipend model, but for many companies, a combination is ideal. In general, Paolino says, companies can realize a 10-15% reduction when going from managing expenses internally to using a partner who has core expertise in it along with deep carrier relationships. The Keys to Expense Management We are big believers that visibility drives consumption, Donoghue said. When employees know the cost impact, they will look to manage their consumption if they can. Donoghue breaks down expense management to three primary areas: Mobile invoice management. Ensure the enterprise is paying the contracted amount for the correct inventory of devices. This involves verifying charges and inventory, assigning inventory to individuals, and assigning charges to the right departments. Mobility reporting. Categorize charges by calls, text and data usage. Reporting points out the opportunities for savings. Rate plan optimization. A component of reporting, this is actionable data. Based on the data accumulated over a period of time, for example, a recommendation can be made to move User X from Plan A to Plan B. All three keys are intertwined, Donoghue explained. You can t do any reporting unless invoices are processed, for example. Likewise, reporting can identify anomalies and discrepancies within the billing side of things, which lead to recommendations. OCTOBER 2013 MEM p3

4 Plus all this can be integrated to existing systems which can then generate proper allocation. Paolino said, Our expense management platform centralizes invoices into one portal for one view. It also integrates with the HR platform so the business units can be charged back for the cost. Going Roam International travel is also big cost for enterprises, not just for the airfare, lodging and associated costs, but the phone calls and text fees, ranging anywhere from $1,000 to $2,500 per user monthly, on an average basis. Pascal de Hesselle, Vice President, Marketing, Truphone, has talked with many customers, big and small alike, across all verticals. Some companies are global while others are stateside but have clients or frequent conferences overseas. When it comes to international roaming, they all have to make one of two distasteful choices, he said: allow staff to communicate on domestic devices and bite the bullet on costs or reduce the expenses by asking end-users to limit connectivity, carry a loaner phone purchased in the visiting country, or depend on Wi-Fi hot spots. There are lots of flaming hoops that companies will go through to cut costs, de Hesselle said. Bottom line, though, is that many employees traveling abroad need to stay connected. According to research conducted by The Center for Communications Management Information, 52% of companies surveyed have a mandate to reduce costs. However, completely banning wireless use by employees is not the answer, because decreased communication leads to decreased productivity. And when workers are less accessible, a worst case scenario can arise: a loss of revenue when a client relationship goes sideways because the employee is not available to answer correspondence. Some companies try to circumvent the problem by asking employees to purchase local SIM cards in the areas they are stationed. A potential problem, however, is the phone number changes with every new card. Employees would have to alert everyone they need to TAKEAWAY When employees know the cost impact, they will look to manage their consumption if they can. communicate with about the new number, increasing the risk of missed communication. Having to top up is also potentially irritating to those who are used to post-paid service. It adds complexity and takes away from their productivity, said de Hesselle. However, multiple international phone numbers can be a benefit, when available on the same device. TruPhone provides a SIM card which works in 223 countries; multiple identities enable least cost roaming. Multiple numbers allow employees to stay local even if not in the country, improving the client s perception. In addition, by ensuring mobile policies are in place, only authorized employees are allowed to incur roaming charges while traveling. Solutions such as Tangoe s, for example, require employees to inform the support desk when they are going abroad, so the system automatically enables the appropriate plan from how many texts are allowed to how many minutes are available. When the threshold is approached, an alert is sent notifying the user. His or her device can be shut down entirely if the threshold has been breached. Going Forward Mobility is permeating every part of our life, said Lienemann. Tangoe was founded in 2001, when BlackBerry ruled. Now it s an ios and Android world, one that keeps employees constantly connected. And with Windows making a comeback in 2014, the enterprise will quickly adapt again. OCTOBER 2013 MEM p4

5 Telesoft works with groups that spend more than $5 million annually on telecom, typically using 1,000 or more mobile devices, including smartphones and tablets. Two or three years ago, very rarely were we managing anything more than smartphones, Donoghue said. Tablets are now a growing part of the process. According to Apple, 94% of Fortune 500 companies are using the ipad in some fashion. Two years from now, Donoghue expects Apple and Android to still be the dominant operating systems with continued tablet growth, especially as price points for devices come down. Things have changed a great deal. But our need to react to change isn t going to slow down at all, he said. We have to react to the requirements in the mobile world, where it is evolving very quickly. One way of doing that is by managing voice, data and wireless across the enterprise, regardless of whether it s a corporate-owned, BYOD or hybrid environment. Not only does it help save money, it streamlines the business process as resources can be properly allocated. l OCTOBER 2013 MEM p5

6 Enterprise Mobility is in our DNA. For 3 decades we have helped F1K companies deliver mobile solutions to their workforce. The scope of devices in the mobile ecosystem¹ makes management of mobility complex. Our solutions, partnerships and comprehensive 4 Pillar approach, help simplify the complexity of mobile and deliver results. Tangoe (NASDAQ: TNGO) is a leading global provider of on-demand Communications Lifecycle Management (CLM) software and related services. Tangoe provides corporations, service providers, and government agencies around the globe with remarkable solutions that deliver optimal visibility, understanding, and control of enterprise-wide communication assets and related costs. Telesoft offers responsive, flexible fixed and mobile telecom expense management (TEM) service approaches that are built from the ground up, offering superior integration, visibility and performance. Telesoft solutions are used by hundreds of commercial and government organizations including the largest and most complex telecom environments in the world. Truphone is the only global mobile operator that expands the reach of businesses beyond their home country borders with patented technology that accommodates multiple international numbers on a single SIM card. International calls are treated as local, greatly reducing voice and data roaming costs. Staff can stay connected with a single local number, globally.

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