TelecomExpenseManagement

Professional CostManagement Group Ltd.

Control your costs | Manage your assets | Transform your businessVisit us online: www.pcmg.co.uk/tem

What is Telecom Expense Management (TEM)?

ü TEM is the management of inventory, spend reporting, auditing and optimisation

ü TEM services help to provide and support corporate communications services

ü Continued growth of enterprise telecom services is prompting firms to look to TEM to improve procurement and cost management processes

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.

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.

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:

ì How do I gain control over my device inventory?

ì How do I effectively manage my spend?

ì How can I get a consolidated view?

ì How do I develop and implement a strategy to maximise my telecoms estate?

• 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 short-term 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 budget-freeze 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

How do you make cost reduction stick?

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The Business Case for TEM. ü Companies of all sizes stand to benefit from using TEM services to outsource non-core

activities, effectively manage their inventory and optimise related spending

ü 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

ü 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

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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.

Our solution provides an intelligent platform to support the management of inventory (including MDM – Mobile Device Management), provisioning & ordering, spend reporting, auditing and optimisation.

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:

ü Control your costs

ü Manage your assets

ü Transform your business

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.

Sourcing Management

Inventory Management

Invoices & Contract Management

Usage Management

Dispute Management

Reporting & Business Intelligence

Ordering & Provisioning

Base Service:Centrally hosted platform

Bill Data Provisioning & LoadingBaseline Analysis

Customer Managed InventoryInventory BuildCost Allocation

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.

Inventory management applies to processes and

services that provide one or all of the following for fixed-

mobile 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.

Illustrative Cost Saving from Implementing TEM

Benefits of TEM.PCMG can help you:

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 Management and policy management to track costs to individuals and departments

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£3,000,000

£3,500,000

£4,000,000

£4,500,000

£5,000,000

£5,500,000

£6,000,000

£6,500,000

Year 0 Year 1 Year 2 Year 3

Cost of doing nothing Single Audit

Audit plus TEM

Example customer starts with annual Telecom Expense of £4.5m

Achieves 10% reduction as a result of an audit

TEM prevents expense creeping by 4 - 25% per annum

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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.

PCMG Fast Facts... ü Established in 1993

ü Work for half of the FTSE 100

ü We enhance your profits by applying specialist expertise to reduce your operating costs

ü £301 million of recoveries secured to date

ü Industry leading specialists in Telecoms, Energy, Water and Accounts Payable cost recovery

ü Part of Alma Consulting Group since 2008, we have a international reach spanning 14 countries

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IndependenceUnlike many TEM providers we are completely independent and carrier agnostic and can give you a balanced view on your procurement and provider performance

ExpertiseOur 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

ExperienceUnlike 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 ServicesAs PCMG are Telecoms cost management experts we are able to deliver added value professional services such as site surveys, benchmarking and technology reviews

SecurityPCMG 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

SoftwareThe back end of PCMG’s TEM solution is powered by a third party who is a leading TEM vendor in Europe. The system allows for standard TEM management including customisable reports, MACD uploads and exception reporting.

PCMG is proud to be a member of TEMIA, the industry association for the Telecom Expense Management sector.

Get in touch...Contact us today to speak with one of our experts and find out more about how Telecom Expense Management could help your organisation.

tem@pcmg.co.uk

+44 (0)1253 361 600

www.pcmg.co.uk

Professional Cost Management Group Limited, Progress House, Avroe Crescent, Blackpool Business Park, Blackpool, Lancashire, FY4 2DP

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