Telecom Expense Management TEM The Challenge The cost

Telecom Expense Management (TEM)

The Challenge “The cost of telecommunications now ranks in the top five expenses for most companies, up from about No. 10 a decade ago. ” “The average Fortune 500 company spends about $116 million on telecommunications services each year. ” “On average, 8 to 12 percent of telecom expenses are in error. ” $116 m spend x 10% errors = $11. 6 m LOST each year

But That Is Only Part Of It … • Gain overall visibility into, and control over, telecom spend • Manage explosive growth of wireless devices • Properly allocate telecom costs • Support business growth and M&A • Reduce or redeploy staff • Optimize network/wireless price and performance • Plan network strategy and justify decisions to management • Provision network conversions and new assets • Effectively negotiate contracts

Curing the Problem Traditional approaches treat the symptoms • Manual/outsourced invoice auditing – often done on a “point” basis • Spreadsheets • Static inventory database or manual updates To cure the problem, you need… • Automated Telecom Expense Management (TEM) • Across the telecom asset lifecycle • For every telecom asset Wireless Data Voice

Automating the Telecom Lifecycle Monitor, Analyze, Plan, Optimize Automatic Invoice Processing & Auditing Order/Procure Workflow Tracks/Alerts on Progress and Issues Validation With Assets/Inventory In Use Enterprise Asset Database/Inventory Automatically Updated Internal Charge. Backs/Cost Allocation Validation Against Contracts (Rates, Service Level Agreements, MARC, etc. ) Processes Orders & Service Requests Provisions Telcos Transmits Invoices

Gaining Visibility & Control Summary Dashboards for Visibility -‘At a Glance’ visibility into Key Performance Indicators - Alerts users to potential issues First Click: Access Detailed Info - Provides more information to diagnose potential problem areas Second Click: Take Control - Access to the system where data can be input and action taken

Results • Base system: – 7%-40% of processed telecom spend saved annually – 50% labor reduction – 3 -12 month ROI • Additional services: – Sourcing: 25%-50% of renegotiated telecom spend saved – Auditing: 10 -20% of processed spend saved

Results Examples Global 500 Food Service Provider Fortune 1000 Manufacturer Fortune 500 Hospitality Company Cost Savings • Reduced wireless costs by 25%, over $1 mil/year • Reduced telecom costs by 7%/year, $2. 5 mil/year • Over $15 million saved to-date • Redeployed 80% of order and invoice processing staff • Identified and helped to plan a VPN conversion resulting in $16 mil/year in cost savings

Tips to Save Millions Tip #1: Consolidate • Centralize all billing to a TEM team for processing and approvals • Consolidate the number of vendor invoices • Savings can be significant by reducing amount of checks produced Tip #2: Validate • Match every expense to a VALID employee or location • Go after low hanging fruit first: • Validate most expensive circuits, costs per minute, etc. • Remove known waived charges (COC, ACF, Install) • Analyze long and expensive calls

Tips to Save Millions Tip #3: Negotiate • Negotiate better contracts by knowing what you have • Establish company procurement people in the contract • Savings can be dramatic by reducing non-authorized purchases Tip #4: Optimize • Automate as much of the lower value activities as possible • For wireless devices, make voice plan optimization Priority #1 • Communicate the costs of 411 on wireless devices • Emphasize free options such as 1 -800 -GOOG-411

Thank You John Shea Chief Marketing Officer, Rivermine john. shea@rivermine. com 703. 995. 6014