1. Telecom Expense Management Looking beyond costs Bart Mulckhuijse A&B Groep March 2011 International Partners

2. TEM today: Looking beyond cost

Todays focus on cost saving

Telecom as a Service

Telecom (Expense) Management

STATEMENT: TEM is not about saving costs! 3. Telecoms Expense reduction is overrated...

Providers focus on costs...

Consultants focus on costs...

Telecom Managers focus on costs...

But users ... focus on usability!

Do we know better than the user...? 4. People will adapt to your behavior... Psychological principle: If youre behaving according to a role,people will treat you according to that specific expectation 5. Should we forget about the costs?

Its all about the economics!

• Productivity = result / offer = revenues / costs

In the information society (knowledge economy):

• Productivity = Communication 2

Users can decide best about what brings them results 6. Summarizing

Help people to be more effective with better results

AND

Help people to do their job efficiently, less time consuming

The telecom managers role is to enable and drive this process

• Telecom Expense Management is only half the job;

• TelecomResultsManagement is the next half

Focus on Productivity Dont focus on cost only, or people will start thinking you are overhead! 7. Telecoms-as-a-Service

TelecomProduct :

Tangible

Technical

One-off delivery

Pay on delivery

Warranty

Clear responsibilities

TelecomService :

Abstract and invisible

Done by People

Continuous co-operation

Pay-as-you-go

Duty of care

Shared responsibilities

Your IT-department is a Telecom Service Provider 8. Whats your Value added?

Managing your internal service portfolio (PDC & SLA) best price-performance-ratio

Smart sourcing, unburden your customer

Managing the costs: DIY or Outsourcing?

You are a Vallue Added Service provider. The total price of your service is the cost for your (internal) customer. 9. The pricing of your Service

Service & Pricing components:

• Hardware / peripheral

• Access to the service / license / subscription

• Usage fee / capacity / bundle

• Services (CAMDs)

TEM is just a tool and a process for establishing your price and creating an internal market for your sevices! 10. Where does this lead to? Facility & Purchasing Management Development Maturity of business functionValue addedTelecom Expense Management Telecom Service Management Telecom Business Management Shifting your focus whenyoure developing 11. It is a stacked business model Telecom Facility Management Inventory Management Contract Management Supplier Management Telecom Expense Management Invoice Management ... Usage Reporting Telecom Service Management Portfolio Management Service Level Management Accounting & Service Charging ... Profiles & User policies ... Telecom Management needs a strong foundation 12. Wrap-up : dos and donts

Start at the beginning

Dont stop after reducing the costs

A tool is only a tool use it, dont loose it

Outsourcing is not a solution

Look for a partner who can help you develop...

It happens, accidentally, that we do have a stand just around the corner... 13. A&B Groep : #durftevragen!

Consultants in Business Communications

Benchmarking

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Telecom Expense Management

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http://www.ab-groep.nl

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Thank you for you attention keep asking us your questions!