Ask the Expert: Keeping a Closer Eye on TEM

Many organizations are looking for ways to cut costs and improve their telecommunications and IT business management processes by bringing in a third party solutions provider. These providers have proprietary software and services solutions that help companies monitor, manage and minimize indirect spend. By engaging with a third party, companies have been able to improve levels of service while lowering costs. In addition, resources can then be refocused on core competencies, such as client services and research and development.

However, organizations that see the value potential of minimizing indirect spend continue to struggle with implementing the best tools and processes to help them gain control and achieve desired costs savings. Typically, most organizations will have multiple divisions that purchase and manage telecom systems on their own. As a result, these companies do not have global visibility into their assets, what they are spending, with whom and how they are consuming services. To achieve better profitability, companies need to gain better control and insight into their company-wide telecom spend , creating a total telecom cost management system (TTCM). Many companies might try and take these daunting efforts in-house, which is fine, as long as you can escape the politics and take a step back to have a true unbiased look at your spending -not to mention the importance of having the bandwidth to do this efficiently.

To make the most of your TTCM initiative, be sure that it includes the following considerations:

• Workflow Management -- One way to effectively gain control of TTCM is to better manage workflow. By replacing manual workflow processes and implementing an automated workflow solution, companies can better provide management support, technical telecommunications support, back office and administrative support. Automating the invoice processes so that vendor billing errors can be identified and tracked as part of the TTCM is a key ingredient to realizing cost savings. It is important that USOC (Uniform Service Order Code) level detail is available so that contractual or unregulated rates are properly reconciled. Additionally, integration with enterprise resource planning systems (ERP) and human resource systems is necessary to reduce manual labor requirements and eliminate data entry errors, helping to focus the organization’s efforts on strategic initiatives as opposed the tactical processing of invoices.
• Deep Expertise – Also, it is important to be able to address all of the elements of total telecom spend. These critical elements include local, long distance, wireless and wireline. Understanding and controlling these unique elements require a deep knowledge of how different services are consumed, billed and reconciled, especially with the growing usage of wireless data services that can skyrocket telecom cost projections. Understanding all types of telecom contracts and how to quickly identify anomalies in usage behavior or underutilized services that could be eliminated will be key to your success. The most important element of TTCM is establishing and maintaining an accurate inventory. All successful TEM implementations start with a detailed inventory reconciled with carrier invoices. Make sure the selected vendor has systems, operations and subject matter experts to accurately compile and maintain this information.
• A Global (Centralized) Organizational View – By deploying a centralized solution enterprise-wide, as opposed to regionally or divisionally, your organization can optimize global visibility and drive better decisions across the board. This also requires building an organization or finding a service provider that can scale alongside your business; you need to be committed to driving this over the long-haul to help you achieve continuous cost-savings and benefits beyond the “project” basis.
• Live Invoice Capabilities -- It is also recommended that companies do their reconciliation and optimization work proactively – before the bill is paid. This “live” invoice cycle approach is key to identifying errors before they become bigger issues. Once a bill is paid, it takes additional time and resources to get this money back, if at all.
• Full Lifecycle TEM -- In order to provide this proactive payback, organizations must make sure that they are able to support the full lifecycle of TEM. This full lifecycle includes:
  o Invoice Auditing
  o Analyzing historic contracts and invoices to ensure providers are meeting services and pricing commitments. From this data, billing errors can be properly identified and submitted for owed credits.
  o Network Optimization
  o Compiling asset information through the collection of data from switches, current vendor supplied information (invoices, CSRs, etc) and technical personnel and verifying these assets against cost centers.
  o Strategic Sourcing
  o Using tools and practices to secure the right mix of strategy and total cost equation.
  o Service Delivery Management
  o Managing your global assets and taking the burden off your staff via web portals and/or service help desk.
  o Invoice Processing and Reconciliation
  o Managing this process from receipt to payment.
  o ERP Integration
  o Completing the equation with binary API links to Accounts Payable, General Ledger and Human Resource databases.

By keeping a closer eye on telecom spend, many organizations have been able to deliver a higher level of service at a lower cost - positively affecting the bottom line. By ensuring your service provider has this “checklist” of offerings, your organization will more successfully manage your telecommunications spend.

Alan Harlan, President, Spend Management Solutions, Symphony Services

Alan brings more than 20 years of experience in the IT and outsourcing services industry, serving in executive accounting, technology and sales roles. He has a track record of running high performing sales and delivery operations for business units ranging from $60 million to $200 million in revenue. Alan has orchestrated multimillion dollar contracts, implemented innovative sales strategies and turned around under-performing business units. Prior to joining Symphony, Alan served as executive vice president for Sierra Design Group, Inc., a gaming software development and services firm where he increased sales from $37 million to $89 million in 15 months. Previously, Alan was vice president of sales for Sourcecorp, Inc., a data services company with global outsourcing relationships exceeding $80 million in sales; and executive vice president of Affiliated Computer Services, Inc., a global technology and business process firm. Alan holds a Bachelor of Arts degree in accounting from Louisiana State University.