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  • Welcome……..
  • We do this by focusing on aligning, managing and optimizing our clients IT and business processes to ensure our clients are able to achieve two crucial issues to success. First, we enable our clients to change and compete at the same time. They don’t need to take their IT or business processes “off-line” to change. Second, we enable clients to attain and retain clients, resulting in growth through new and current revenue streams. These revenue streams could be through loyalty of current products/services, expanded product/service offerings, consistent product/services on a global basis, efficiency of services, etc. The result is better ROI, value to shareholders and growing client business.
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  • Planning for Your 2009 Budget: Doing More with Less presented by Joe Basili President & Research Director Thursday, November 20, 2008 Network Trends Now
  • Joe Basili is President & Research Director of Network Trends Now and a recognized thought leader with more than ten years of experience in TEM, telecommunications networks and IT asset management. Through research reports, public speaking, and advisory meetings he has provided best practices on how organizations can optimize their information technology (IT) systems, telecommunications network costs, operations, and procurement. The Network Trends Now motto from Dr W. Edwards Deming states: In God we trust, all others bring data. The customer insight model is simple: gain insights into enterprise needs, best practices, benchmarks, and market conditions by interviewing customers and developing surveys that collect hundreds of enterprise customers data. The research is compelling because industry knowledge is matched with statistical analysis and a real passion for the business. Joe has conducted research and written extensively on a wide range of topics that include wireless mobility management, IT and telecommunications environment management, network performance, and unified communications. He has been a keynote speaker and contributor to publications for IT, finance and procurement professionals . Joe holds a B.A. with a double major in Economics and Political Science from Vanderbilt University. Contact information: (973) 763-6265 [email_address]
  • Agenda
    • Market trends
    • Determining your baseline requirements
    • Self-funding strategies
      • Inventory
      • Strategic sourcing
      • Wireless spend
    • Establishing Predictive Reporting
  • Expected Bandwidth Requirements Source: AOTMP
  • Top Areas for Network Bandwidth Consumption Source: AOTMP
  • First Polling Question
    • Next year will your budget for spending on voice, data, wireless, and conferencing…? (select one)
    • remain the same
    • decrease by 1% to 10%
    • decrease by more than 10%
    • increase by 1% to 10%
    • increase by more than 10%
    • Don’t know
  • 3 Steps to Survive the Downturn
    • Budget season is a great time to reassess everything and re-evaluate all expenses
    • Learn from your business partners: internal users and external customers
        • Find out what is working and what is not working
    • Change the dynamic from cost (or you will be stuck cutting costs) to business strategy and investments
  • Zero Based Budgeting Every expense must be justified from a "zero base" regardless of prior year’s spending
    • Favors smaller short-term projects over long-term investments
    • Increases spending restraint
    • Requires more time to prepare budget
    • Reduces entitlement mentality
    Positives to Zero Based Budgeting Negatives to Zero Based Budgeting
    • Makes the budget review process more meaningful
    • May fall behind competitors willing to take on riskier investments
  • Current State of Telecom & IT Source: AOTMP
  • Building a Budget
    • What are your baseline requirements?
      • To understand where your company is going, it's important to know its history
      • Do you plan to deploy new communications technology?
    • Is there a clear link of business value from IT and network communications?
  • Organizational Considerations
    • Mergers & acquisitions
    • Right-sizing
      • What portion of the staff are contractors that can be cut without announcements of layoffs?
      • What controls are in place for on-demand applications and services?
  • Strategies: 1 - Start with Your Inventory
      • Build the inventory
      • Validate it
      • All circuits installed prior to…
      • Orphaned wireless devices, locations
    • Most expensive…
        • Circuits…
        • Longest calls
  • Second Polling Question What strategies do you expect to use to meet your budget in the upcoming year? (select all that apply) a. Aggressive renegotiation of contracts b. Centralizing control of IT & telecom spending c. Aggressive expense auditing d. Usage charge-back reporting e. Formal TEM program f. Deployment of new (VoIP, MPLS, Green IT, Virtualization) technology to dramatically reduce costs
  • Strategies: 2 - MACD Reconciliation to Billing
    • Which sites will have closing or openings?
    • How do you validate
        • contracts are applied properly for new services?
        • service disconnects are removed from billing?
  • Strategies: 3 – Control Wireless Expenses
    • Confirm all users are current employees and eligible for wireless services
    • Focus on peak minutes, SMS messages
    • Directory assistance… the cost of dialing 411 can cost $1.25 to $3.00 per call!
        • To use Google’s directory assistance, dial 1-800-GOOG-411 (1-800-466-4411)
      • The costs for spares and replacement devices can be negotiated for cost savings
  • Strategies: 3 – Control Wireless Expenses (continued)
    • Evaluate data consumption
        • How do variable costs change if more data is sent than the allocated amount?
      • Are there suspension charges?
      • Can termination penalties be waived?
  • Strategies: 4 - Control Your Entire Expense Lifecycle
    • Do you have mavericks that procure services on their own?
    • Do you manage all telecom spend?
  • Strategies: 5 – Which Vendors Are Flexible?
    • Are vendors willing to make concessions today for the potential to do more business in the future?
        • Minimum Annual Revenue Commitments
        • Technology migration clauses
        • Economic downturn
    • When the economy improves will you be able to reward cooperative vendors?
  • Strategies: 6 Establishing Predictive Reporting
    • Create reporting on run rates vs. budget
    • Track variances for course corrections
        • Monthly spend vs. budget
        • Percentage deviation from budget
      • Provide company-wide usage and expense visibility to drive accountability
        • Spend by business unit, GL, location, or individual
      • “ Keep it simple, provide an incentive, and track results”
  • Concluding Thoughts
    • Work to change the dynamic from cost (or you will be stuck cutting costs) to business strategy and investments
    • Failure to make sound investments in IT and network infrastructure during tough times will leave companies behind
  • Final Thoughts “ While 2009 will be tough, managers must shift from talking solely about costs to focusing on business strategy and investments. Failure to do so will lead organizations to get stuck cutting costs and falling behind competitors. The key is to develop a clear link between spending and the business value from IT and network communications investments.”  – Network Trends Now November, 2008
  • Expense Management Services Budget Planning for 2009: Spend Less, Do More Tony Bodetti, TnT Expense Management
  • Agenda
    • Budgeting Process
        • – Today’s Unique Challenges
    • What is Telecom Expense Management
    • How TEM Affects Your Bottom Line
    • Case Studies
    • Dealing With Resistance
    • Questions
  • Budgeting Through Uncertainty
    • Expenditures are difficult to forecast accurately
      • Use zero based budgeting methodology
      • Use business intelligence reports and analytics
    • Companies have reluctance to incur new expenses
      • Do more with less when revenues are down
      • Focus on cost reduction and cost avoidance programs
    • Enterprise’s expectations don’t match internal abilities
      • Internal staff may not have the proper skills
      • Outsourcing will allow them to focus on their core competency
  • What is Telecom Expense Management? Sourcing/Contract Negotiations Audit & Bill Processing Inventory Management Network Provisioning Call Accounting Chargeback Physical Audit Project Management Full Spectrum of TEM Services Benefits of Outsourcing Telecom
    • Economies of scale
    • Seamless integration
    • Allows you to focus on your business
    • Centralizes information for strategic planning
    Benefits of Outsourcing Telecom
    • Increases optimization opportunities
    • Reduces overall costs and causes significant impact to bottom line
    • Implements best practices
    Wireless Management Business Intelligence Reporting Inventory Management Tool (Telebase ® ) Carrier Contracts Carrier Provisioning Carrier Optimization Carrier Device & Network Management and Security Carrier Billing & Auditing
  • How Will TEM Affect Your Bottom Line?
    • Business Intelligence –
      • negotiate better carrier agreements
      • optimize your networks
      • create efficiencies in your processes
      • realize significant cost savings in billing errors
      • better forecast future needs and trends
    • TEM Budget - Action Plan
    • Self Funding Program - ROI
  • Polling Question
    • What form of TEM solution do you currently have in place?
    • In-house using our systems
    • In-house using licensed TEM software
    • Using TEM SaaS provider
    • Outsourced to a TEM BPO
    • No solution currently in place
  • Examples of TnT Case Studies **TnT Savings achieved following a previous TEM provider TnT specific case studies Industry shows on average 12% - 18% savings from a TEM solution 28% 1 st year save (Wireless) Manufacturing Client 27% 1 st year save (Landline) Large Online Travel Client 30% 1 st year save (Contract Savings) Large Pharmaceutical Client 33% 1 st year save (Landline) Hedge Fund Client 80% 1 st year save (Wireless) Large Global Reinsurance Client** 24% 1 st year save (Landline) Large Financial Stock Exchange Client 33% 1 st year save (Landline & Wireless) Large Global Financial Services Client** 31% 1 st year save (Landline & Wireless) Large Global Financial Services Client** % Save of Client’s First Year Spend Type of Client
  • Case Study – Bill Processing/Audit Telecom Run Rate Analysis $6,310,468 $5,680,063 $5,095,648 $5,073,398 $5,201,979 $5,046,752 $4,816,181 $4,441,455 $3,705,595 Spend This graph represents a 41% reduction over a two year TEM engagement $6.3 MM $3.7 MM
    • Gains
      • Audit Credits
      • Optimizations
      • Reconciliation and Clean Up
      • FTE Resources
      • TCO Factors
    • Costs
      • Implementation Fees
      • Processing Fees
      • Commissions, if any
    ROI – Things to Consider
          • ROI = (Gain from Investment – Cost of Investment)
    • Cost of Investment
  • Bill Processing and Auditing 1139% Contract Negotiations 2043% Wireless Management 691% Network Provisioning 3015% Market Data 1273% Client Case Study - ROI since 2000
  • Mitigating Resistance Getting your TEM budget approved… We’ve done without this in the past, why do we need this now? Why shouldn’t we do this ourselves? Will there be any direct impact to the bottom line? How difficult will it be to implement?
    • For additional information, contact us at :
    • TnT Expense Management
    • 12 Turnberry Lane
    • Sandy Hook, CT 06482
    • (203) 364-0800
    • [email_address]
    • www.tntem.com