Telecom Expense Management

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1 Telecom Expense Professional Cost Group Ltd. Control your costs Manage your assets Transform your business Visit us online:

2 Your Challenges. For most companies, fixed and mobile communications services are among their top five business expenses - they can account for as much as 20% of their IT spending. Managing telecoms estates and related costs can be challenging due to limited funding, internal resource constraints and lack of visibility of data. Some of the toughest challenges for enterprises include: How do I gain control over my device inventory? What is Telecom Expense (TEM)? The continued growth of enterprise telecom services, driven by the increased use of video and wireless technologies, is causing telecoms estates to become increasingly complex, often spanning multiple services, providers, contracts and tariffs. How do you make cost reduction stick? How do I effectively manage my spend? How can I get a consolidated view? How do I develop and implement a strategy to maximise my telecoms estate? TEM is the management of inventory, spend reporting, auditing and optimisation TEM services help to provide and support corporate communications services Continued growth of enterprise telecom services is prompting firms to look to TEM to improve procurement and cost management processes With the majority of CFOs (80%) prioritising cost reduction for the next 12 months, a key challenge is to ensure these savings are sustainable and remain in line with corporate strategy Changing the cultural approach will give better results than tactical shortterm initiatives; by embedding cost control as an ongoing discipline within your organisation, you will avoid last minute cost cutting exercises when budgets are under pressure Empowering your teams and making them accountable for cost control will often give outstanding results - traditional procurement and budgetfreeze tactics are inefficient ways of driving out small day-to-day costs Example of sustainable telecoms cost reduction: One business managed to save 38% on their mobile spend by making data visible to everyone. When employees could see their individual usage they started to change their own behaviour and the savings followed 2 3

3 The Business Case for TEM. Companies of all sizes stand to benefit from using TEM services to outsource non-core activities, effectively manage their inventory and optimise related spending Often using a TEM provider is the only cost-effective way to get the programme and service management capabilities they need to control telecom spending because there is no internal build option available TEM providers also supply governance capabilities to help manage device diversity and the shift to bring-your-own-device schemes Keeping an eye on the bottom line Between 10 and 30% of all supplier invoices have errors in them, so businesses are overpaying at least 1 out of every 10 invoices and in some cases almost 1 in 3 invoices are incorrectly processed Although 22% of suppliers offer discounts, only 47% of businesses actually collect them meaning that more than half throw away savings that the supplier has already agreed to 4 5

4 How PCMG Can Help. PCMG s TEM solution has been designed to address your telecoms pain points and solve the need for visibility and control across the whole range of your telecoms management activities. We deliver savings to your bottom line through tight expense and process management, whilst providing choice in the form of distinct modules and strong service management. TEM also provides access to business intelligence and detailed analytics via a live web-based TEM portal. PCMG s TEM solution can help you to: Our TEM system is a suite of services designed around the requirements of our customers; built on an intelligent platform, it enables the customer to better support the communications needs of their business by providing visibility, control and management of their telecoms resources. Our solution provides an intelligent platform to support the management of inventory (including MDM Mobile Device ), provisioning & ordering, spend reporting, auditing and optimisation. Control your costs Manage your assets Transform your business Sourcing management enables buyers to negotiate prices, terms and conditions for strategic contracts for communications services. Invoice and contract management combines the invoice audit function with the accounts payable invoice-processing function. Dispute management ensures the recovery of credits and the management of short-pay and no-pay decisions. Using third parties for disputes can optimize expenditure, greatly reduce the cost of disputes and increase corporate liquidity. Ordering & Provisioning supports the commissioning and deployment of network services and mobile assets, based on predefined rates and support for user profiles, drawing on service catalogues, structured workflows and authorizations e.g. help desk services, logistics support relating to deployments, replacements and break/fix depot repairs. Sourcing Invoices & Contract Dispute Centrally hosted platform Bill Data Provisioning & Loading Baseline Analysis Ordering & Provisioning Base Service: Inventory Usage Reporting & Business Intelligence Customer Managed Inventory Inventory Build Cost Allocation Inventory management applies to processes and services that provide one or all of the following for fixedmobile services and mobile devices: asset discovery; asset management; asset database/repository; asset portfolio management; and tracking of purchases, leases, contracts, and disposal relating to telecom assets and expenses. Links to general ledger accounting system modules, such as the capital asset ledger, are common. Usage management helps identify cost objectives and usage permissions by using call accounting and invoice data. Usage is tracked to allocate costs by individual, department, cost centre or other category across any number of locations. Usage management can also identify theft/abuse of network resources. Reporting and business intelligence encompass a vendor s ability to offer customers practical information and analytics that go beyond basic data or reports, in order to improve financial forecasts and usage planning. 6 7

5 Benefits of TEM. PCMG can help you: Illustrative Cost Saving from Implementing TEM 1 Example customer 2 Achieves 10% 3 starts with annual reduction as a Telecom Expense result of an audit of 4.5m 6,500,000 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500, TEM prevents expense creeping by 4-25% per annum Cost of doing nothing Single Audit Audit plus TEM Understand the real cost of your Telecoms inventory by aggregating, consolidating and managing multiple services, costs and bills using PCMG s TEM analytics portal Manage your assets and inventory by using TEM to administrate MACDs, automate cost allocation and monitor utilisation via advanced business analytics tools Control and optimise spend intelligently by taking advantage of spend insight via business intelligence reporting, spend analytics/dashboards and tariff optimisation Minimise the impact of billing errors with bill validation and cost recovery Enable technological transformation and innovation by automating day to day telecoms management processes Empower management and staff to make better day to day decisions based on facts and hard data, not assumptions Drive accountability across the workforce using spend reporting, Personal Call and policy management to track costs to individuals and departments 3,000,000 Year 0 Year 1 Year 2 Year 3 8 9

6 Why PCMG? PCMG are an industry leading cost management and optimisation company with a rich background in Telecommunications cost recovery and reduction. Our goal is to enhance our clients profits by applying highly specialist expertise to reduce their operating costs. Independence Unlike many TEM providers we are completely independent and carrier agnostic and can give you a balanced view on your procurement and provider performance Expertise Our powerful software is a platform for our industry leading experts - you can access attentive account management and an unprecedented level of telecoms experience and specialist expertise from our multi-disciplinary team Experience Unlike many of our competitors, PCMG have 23 years of experience in the UK Telecoms market and have an unprecedented understanding of the telecoms market and regulatory landscape Added Value Services As PCMG are Telecoms cost management experts we are able to deliver added value professional services such as site surveys, benchmarking and technology reviews Security PCMG is ISO27001 certified which means we keep confidential information safe, minimise risk exposure and provide you with assurance that you will receive a consistent, compliant and secure service Software The back end of PCMG s TEM solution is powered by Anatole, a leading TEM vendor in Europe. Anatole is recognised within Gartner s Magic Quadrant for Telecom Expense as a leading global player in TEM PCMG Fast Facts... Established in 1993 Work for half of the FTSE 100 We enhance your profits by applying specialist expertise to reduce your operating costs ü ü 301 million of recoveries secured to date Industry leading specialists in Telecoms, Energy, Water and Accounts Payable cost recovery Part of Alma Consulting Group since 2008, we have a international reach spanning 14 countries PCMG is proud to be a member of TEMIA, the industry association for the Telecom Expense sector

7 Get in touch... Contact us today to speak with one of our experts and find out more about how Telecom Expense could help your organisation. * ( +44 (0) Professional Cost Group Limited, Progress House, Avroe Crescent, Blackpool Business Park, Blackpool, Lancashire, FY4 2DP

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