An effective business case for TEM and/or EMM/MMS program helps organizations avoid buying solutions that exceed its needs or buying solutions that fail to meet its needs. TEM and/or EMM/MMS programs produce benefits in four main areas:

  1. Reduction of Telecom Service Expense
  2. Labor Efficiencies
  3. Risk Reduction/Security
  4. Indirect Savings

 

SAVINGS CATEGORY

POTENTIAL SAVINGS*

1. Reduction of Telecom Service Expense
A. Refunds and credits for billing errors
1. Audit and recover for billing overcharges 2% – 15% of expenses
2. MACD reconciliation and recovery for billing errors
B. Cost avoidance reduction of future spending
1. Sourcing: better contracts and rates 5% – 25%
2. Inventory management 5% – 15% of expenses
a. Grooming to higher capacity lower cost services
b. Elimination of unused services and devices
3. Optimization
a. Wireless service optimization match usage to service plans; voice and or data; pooling
b. Identification of services with no contracts, better rates through quote requests and negotiation
c. Minimum Annual Revenue Commitment (MARC) penalty avoidance Depends on MARC
4. Accountability chargeback visibility, reporting on usage 1% – 20% of expenses
5. Elimination of late payment penalties and service disruption for late, non-payment or lost bills 0.5% – 2% of expenses subject to penalties
2. Labor Efficiencies: automating manual processes or outsourcing
A. Automation of manual procurement processes FTE reallocation or FTE cost – BPO cost
B. Automation of inventory management FTE reallocation
C. Consolidation of invoices to reduce the volume of payments FTE reallocation
D. Automation of invoice management and validation
E. Automation of usage chargeback and reporting FTE reallocation
F. Help desk support FTE reallocation or FTE cost – BPO cost
3. Risk Reduction
A. Operational: use TEM to insure redundancy of carriers for critical sites “Priceless”
B. Security: ensure adherence to mobile policy; verify data on mobile devices is secure; wipe for lost devices “Priceless”
C. Legal: Compliance to each country/region’s regulations “Priceless”
D. Cost: avoid bill shock; unplanned budget expenses “Priceless”
4. Indirect savings
A. Consistent application of procurement policies; lock or limit contacts ensure only authorized personnel able to procure carrier services 1% – 5% of expenses
B. Better information for improved decisions Benefits from better decisions
C. Free working capital cost of funds x savings
D. Redirect staff to focus on areas where they add more value income or value from new activities or staff costs

* Notes below highlight considerations for cost savings on TEM and EMM/MMS.