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TELECOM BUDGET SURVIVAL GUIDE
 

TELECOM BUDGET SURVIVAL GUIDE

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Developing complex telecom budgets can be complicated but managing to them can be even more difficult. This 30 minute webinar is a must for anyone who fears the late November summons into their ...

Developing complex telecom budgets can be complicated but managing to them can be even more difficult. This 30 minute webinar is a must for anyone who fears the late November summons into their CFO’s office to explain why telecom is over budget. View the recording for this brief and educational webinar to plan ahead and be prepared for 2014.

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TELECOM BUDGET SURVIVAL GUIDE TELECOM BUDGET SURVIVAL GUIDE Presentation Transcript

  • Telecom Budget Survival Guide Presenter: Leo Berz, Director Professional Services, Telecom - Ecova Date: 06/19/2013
  • Agenda  Today’s Telecom Environment  Budgeting Tools  Variance Tracking and Analysis  Challenges  Best Practice  Summing It Up  Q&A
  • Telecom Is Under The Microscope  Total telecom expenses are on the rise  Typically .25 to 1.5% of revenue  No longer accepted “as is”  Telecom industry rapidly changing  Not necessarily under your control
  • Monday Morning Blues  Your telecom expenses are way over budget  You spent the entire weekend frantically trying to figure out why  It’s now 9 AM, and the CFO is waiting for your explanation  What will you do; what will you do?
  • Survey Question  Are telecom expenses and budgets getting more scrutiny in your organization than before? A. Yes B. No C. Don’t know
  • Budget Tools  Initial budget – Spend history – Planned changes  Accrual files  Variance reports and analysis  Budget update – Minor modifications  Budget reforecast – Larger impacting
  • History Is The Window To The Future Spend by Service 2012/Jul 2012/Aug 2012/Sep 2012/Oct 2012/Nov 2012/Dec Totals Data Services $617,259.02 $595,660.02 $585,578.00 $656,245.26 $715,870.29 $682,310.81 $3,852,923.40 Local $669,472.48 $672,875.91 $674,681.27 $698,567.86 $690,026.71 $711,645.28 $4,117,269.51 Long Distance $108,960.87 $107,393.68 $110,064.34 $115,952.74 $40,854.81 ($29,857.88) $453,368.56 Other Telecom $69,816.78 $69,913.40 $69,813.79 $69,999.27 $69,830.79 $70,476.08 $419,850.11 Wireless $84,362.14 $87,611.70 $85,873.80 $91,589.17 $156,196.34 $141,224.16 $646,857.31 Totals $1,549,871.29 $1,533,454.71 $1,526,011.20 $1,632,354.30 $1,672,778.94 $1,575,798.45 $9,490,268.89  Budget should start with previous years spend by service type (GL) and location  Cost center owners need to provide input on future needs  Pending business and network changes need to be factored in  All stakeholders and cost center owners need to have visibility and buy-in of the final budget
  • Know What To Expect  Use historical average to estimate invoices yet to be received  Accrued amounts should be backed out of financial systems once actual invoice is processed or new accrual file is available Vendor Account GL/Service Months Average Accrual Last Bill Arkadin, Inc. XXXXX 17545400/Conference 1 $235,146 $235,146 4/30/2013 AT&T XXXXX 17545200/LD 1 $78,653 $ 78,653 4/29/2013 CenturyLink XXXXX 17545100/Local 1 $ 1,568 $ 1,568 4/28/2013 Eatel XXXXX 17545100/Local 2 $1,343 $ 2,686 3/15/2013 Granite XXXXX 17545100/Local 1 $156,238 $156,238 4/30/2013 HickoryTech XXXXX 17545100/Local 1 $ 118 $ 118.91 4/27/2013 Mobil Fone XXXXX 17545600/Conference 1 $ 51 $ 51.82 4/28/2013 Verizon Wireless XXXXX 17545600/Wireless 1 $ 52 $52.82 4/30/2013 TW Telecom XXXXX 17545300/Data 1 $16,930 $16,930 4/30/2013
  • Over-Budget is Not The Problem; Not Being Able To Explain It Is! Sum of Site Total Actuals by Bill Month $ 296 $ 592 SiteName ServiceGroup 201301 201302 YTD Budget Out of budget % Of budget Site 1926 Data Services $ 510 $ 510 $ 592 $ 428 72% Local $ 407 $ 407 $ 817 $ (3) 0% Long Distance $ 46 $ (46) -100% Other Telecom $ - $ - 0% Wireless $ - $ - 0% Site 2019 Data Services $ 510 $ 510 $ 592 $ 428 72% Local $ 1,246 $ 1,246 $ 2,478 $ 14 1% Long Distance $ 318 $ 221 $ 550 $ (11) -2% Other Telecom $ - $ - 0% Wireless $ - $ - 0% Grand Total $ 375,628 $ 364,952 $ 535,472 $ 204,808 38%  Data expense spike caused by a network migration
  • Survey Question  What is your biggest budget challenge? A. Lack of resources B. Lack of visibility C. Lack of control D. Other E. Don’t know
  • Budget Challenges  Telecom is a very dynamic environment  Lack of visibility  Wireless and conferencing services  Rogue service orders  Budget shuffle  Expiring contracts  Shortfall penalties or missed achievement credits  Network migrations  Executive mandated cuts  “Regulatory” charges
  • Best Practices  Push responsibility, accountability and visibility down as low in the organization as possible  Budgets should initially be developed from the bottom up  Take planned business and network changes into consideration  Variance analysis should be preformed quarterly at a minimum  Ensure centralized control of both wireline and wireless service orders  Actively track contract expirations and MARCs  Services should be reviewed every 1 to 3 years  Reforecast budget when necessary  Use lessons learned to improve the process  Consider budgeting an integral part of your TLM program
  • – Formula For Success  S=(D+B+T)*P where – S=success – D=data – B=business knowledge • locations • contracts • Activities – T =telecom knowledge • networks • regulatory • Procedures – P=process • budget • tracking • variance analysis • All aspects of Telecom Lifecycle Management
  • Upcoming Ecova Webinars INSIDE ENERGY & SUSTAINABILITY  Energy Market Intelligence: What’s Happening Today? – June 20th  Discovering Exceptional Value with Rebate Management Solutions – June 27th  Telecom Strategic Sourcing Secrets - September 25th DIAL IN THE SAVINGS Questions, comments, suggestions? webinars@ecova.com
  • Q&A
  • Thank You for Attending