An introduction to TEM- a high level overview

Paul Hughes Managing DirectorSignum International

Credentials

• Paul Hughes MD Signum International –TEM• Vice President Soft-ex (Interim Consulting role) –TEM• Prior to this Managing Director EMEA of Avotus EMEA - 5 years -

TEM

Previous experience:Honeywell(Head of Sales and Marketing UK -Network and Voice Solutions)Great Nordic(General Manager Western Europe and Americas- Global Data

Network)Motorola(Regional Business Manager UK and Ireland - Wireless Products)

Signum International

Signum is a leading independent mobile phone billing analysis company.

For the last ten years we have dealt with the UK mobile networks and direct corporate clients.

We support all our clients with a range of analysis services and applications that deliver unrivalled insight into the effect that revised tariffing and tailored solutions can have on a company’s mobile spend.

Our software is built on extensive industry knowledge.

More than 4,000 analysis conducted.

TEM What is it?

Telecom expense management (TEM) is a business approach to managing telecommunication service expenses (voice, data, and wireless) with a combination of software tools and professional services.

• Technology based TEM solutions established in North America for more than 10 years

• Prior to this mainly pay on trend / “stare and compare” or manual audit with very basic tools in place- if at all

• TEM part of the growing Spend Management category >30% per annum

• Gartner believes that 2009 and 2010 will be breakout years, as companies based in Western Europe, with assets and expenses primarily within that region, start to adopt TEM services in greater numbers.

Signum International

Telecom Expense Management: Life Cycle Services and Domains

Background Info.

• The number of ways that companies and their employees stay connected, and the volume of information they share — has grown dramatically.

• Workforces are more mobile, more distributed. All that adds up to trouble for the IT or finance department that is trying to track and manage, let alone understand, what they have in their voice and data networks.

• Demand for instant and constant contact is soaring, fuelling a genuine revolution in wireless technology and a proliferation of devices.

• Massive growth in outsourcing and out-tasking has created a need to validate telecom charges to ensure that project costs are being scrutinised and managed.

Background Info.

• Companies focus much more on cash, reducing borrowings and driving efficiencies

• “Spend to save” projects given priority, both the business case and ROI needs to be compelling.

• Increasing scrutiny; only pay for what is consumed.

• Historically high levels of sophistication and automation to manage aspects of HR / Finance / Sales / Procurement.

• Historically low levels of sophistication and automation to manage Telecoms Costs

• Telecom Expenses are the 4th largest corporate expense

• Up to 12% of all telecom bills are incorrect (Aberdeen)

Mobile, Blackberry & Data Card Costs  

• Wireless costs have exceeded landline costs (Gartner). • Up to 25% of calls on mobiles are non-business related

(Gartner).• Up to 52% of companies do not have the means for

capturing their mobile expenditures.• Lack of usage visibility is top challenge (Aberdeen). • Although rates for mobile services continue to

decrease, overall spending on mobile will continue to increase as consumption rises faster than prices decline (Meta Group).

• European corporate wireless e-mail installed base is expected to grow from 8.4 million in 2006 to 85.8 million in 2012. (Frost and Sullivan).

• Many employees expense mobile bills and these costs are not scrutinised or charged against the telecom cost centre.

Organisations need more visibility and control of mobile expenses.

• To reduce escalating mobility costs.

• To identify charges for services no longer used or needed.

• To establish control over lost or unused mobile devices.

• To ensure personal and departmental responsibility for usage.

• To re-establish integrity of the telecom budget.

• To support regular supplier reviews

• To help organisation remain competitive.

Mobile, Blackberry & Data Card Costs

TEM -Enables

• Enforcing purchasing and usage policies• Allocating costs within the organisation• Tracking and recovering assets• Auditing and complying with security, legal and regulatory requirements• Validating bills• Improving customer service• Establishing baselines for negotiating contracts• Reducing costs of support• Reducing costs of service

Identifying Savings Opportunities

paul.hughes@signum-international.com

Office: 01732 424023

Mobile: 07721 515015

Paul Hughes Managing DirectorSignum International