Tony Mazzullo President and CEO Veramark Technologies, Inc Telecom Expense Management
Jan 03, 2016
“TEM savings are always greater than TEM outlays (a ratio of 2:1 is usually achievable),
with full payback in the first year.”
Gartner Cost Cutting in Enterprise Telephony, June 2008
“TEM savings are always greater than TEM outlays (a ratio of 2:1 is usually achievable),
with full payback in the first year.”
Gartner Cost Cutting in Enterprise Telephony, June 2008
Telecom Expense Management (TEM)
• Business issues driving TEM • A TEM Maturity Model• Using the TEM Maturity Model
Business Issues Driving TEM
Economists see longest U.S. recession since World War Two - Reuters Saturday, January 10, 2009
Official recession news hammers Dow - USA Today, January 1, 2009
Job losses hit 2.6 million as layoff pain deepens- Yahoo News, January 9, 2009
TEM Maturity Scale
• Level 1 – ad-hoc, unmanaged• Level 2 – managed• Level 3 – defined• Level 4 – quantitatively managed• Level 5 – optimizing
Potential Impact of a Maturity Model Approach
Level 1 Level 2 Level 3 Level 4 Level 5
BaselineTCO100%
50% ~~
Range of savings potential
An Approach: Move Up the Maturity Scale
• Assess and determine current maturity– Establish baseline
• Set reasonable objectives to achieve the next level – move one level of maturity per project
• Assemble the team and draft a plan– Executive sponsor, Telecom, IT, finance
• Execute– Process and enabling technologies
• Measure, assess, and reflect
Determine Current Maturity Level
• Manual invoice processing• Inventory not managed• Lack of policies and standards• Multiple applications and databases• Lack of internal expertise• Lack of visibility and control
Level 1 TEM Maturity – Ad hoc
The Approach
Objective: Reach Level 2 Maturity• Assemble Team• Establish accurate baseline
– Asset inventory validation– Telecom programs, contracts, billing audit– Six (6) month billing averages and medians
• Execute– Optimize environment
• Network optimization• Policy development
– Establish proactive TEM process• Deploy enabling TEM software platform• Train staff and deploy new processes• Proactive asset, billing and program
Landline Network
• Credits for invoice errors– Loose traffic– Thrifty bills– Third-party bills (slamming & cramming)
• Contract review, negotiation and enforcement– Carrier access code (CAC) fees– Reporting charges– Adherence to negotiated rates– Program selection– Customer’s rights to modify terms
Wireless Device Network
• Devices disconnected– Inactive/not assigned– Non-employees– Ex-employees
• Continuous plan optimizations– Consolidate vendors and plans– Eliminate unnecessary services– Implement and enforce corporate policies– Evaluate and adjust every 3 months
• Inventory reduction and management– Control device procurement and retirement
Process & Technology
• Defined policies• Enabling technology
– Invoice processing– Asset management– Help desk for MACD
• Dispute management process
Measure and Reflect• Hard dollar benefits:
– $5.7 million in verified savings and credits (~5%)– Elimination of used services– Cost recovery– Contract and policy enforcement
• Soft benefits:– Significant productivity improvements– Reduced cycle time – reduction in late fees– Greater visibility into spend enabled better business
decisions, more informed planning process– Security, compliance monitoring
Level 2 + some Level 3 metrics
Thank you!
Tony Mazzullo, CEO and PresidentVeramark Technologies, Inc. eMail: [email protected]: 585.381.6000 Website: www.veramark.com
Questions?