Telecom Profit Center 
The basis for a telecom expense management program is to focus on cost savings and improve operational efficiencies that enhance the telecom and IT services used by the organization. MBG’s TEM platform enables telecom departments the ability to demonstrate bottom line performance to the finance department, while also providing the flexibility to help managers quickly rollout new services when needed. The end result is the TEM program is viewed as a valuable asset and a profit center for the organization.
5 Key Steps for Transforming TEM into a Profit Center
Below lists some key steps organizations can take to transform TEM into a profit center, outlined in the AOTMP research report, Migrating Telecom Expense Management from a Cost Center to a Profit Center.
Step 1: Involve the Finance Department
Often times CFO’s and CIO’s are unaware of the dramatic results a TEM program can have on the organization's financial performance. Numerous reports exist in the MBG TEM platform that enable telecom managers to provide results in terms financial managers can easily understand, such as vendor spend, spend analysis broken down by department, or show taxes being paid down to the state level. Furthermore research by AOTMP shows the more the finance department is involved, the more likely the TEM program will be viewed as a profit center.
Step 2: Centralize Management of Telecom
The foundation for a TEM solution is the ability to centralize the management of telecom spend and is the key to a successful TEM engagement. In terms of transforming TEM into a profit center, centralization enables managers to have instant access to their telecom spend, along with the ability to benchmark against other departments. Furthermore, by leveraging the size of an organization it can negotiate more favorable rates across the board to drive down costs.
Step 3: Take Advantage of Electronic Data
Electronic data provides the ability to generate reports that break down savings and display information in terms other departments can understand. Without these reports little can be understood about where the savings are coming from or the ability to identity areas where savings can be found. In addition electronic data eliminates manual entry of invoices and wasted resources – which drives down operating costs. This is supported by AOTMP research , that shows organizations that process more electronic data are viewed more as a profit center.
Step 4: Manage Consumption of Services
Tracking the consumption of services allows an organization to determine optimal rate plans, along with the flexibility to migrate to new services. While these savings are often viewed as “soft savings”, the ability to quickly and optimally migrate to new technologies inherently demonstrates the value that a TEM program provides through enhanced visibility and transparency.
Step 5: Establish that the Real Value Extends Beyond One-Time Refunds
A TEM program’s value must extend beyond just identifying audit refunds. The goal is to provide consistent costs savings and optimal service-to-cost return. An organization cannot view periodic historical audits as a proactive TEM program. It is often the case that many contracts now require enterprises to identify billing errors within 90 to 180 days of receiving the bill. If an enterprise has negotiated new contracts or they have switched the business to a competitor, it will be hard to get a refund for these items.
To learn more about how to transform your TEM program into a profit center download the AOTMP research report. Click here >>
Research Report by AOTMP: Migrating Telecom Expense Management from a Cost Center to a Profit Center. Click here>>
