Written by, Larry Foster
As enterprises look to more granularly understand the payback of implementing or expanding upon telecom expense management (TEM) solutions or managed mobility services (MMS), they have historically focused solely on the predicted hard dollar savings. But as we see the industry evolve, our enterprise customers are increasingly implementing programs to manage their complete communications lifecycle.
Better Insight-Driven Decisions
With Communications Lifecycle Management (CLM) in place, these organizations gain an all-encompassing view into their assets and services across voice, mobile and other unified communications. This new view helps them maximize efficiencies across internal workflows, policies and processes. With the capability to combine business data with communications data, they can make better decisions using the improved business insights and analytics.
Ranking the Benefits of TEM and CLM
AOTMP recently completed research to assess what benefits organizations are realizing with TEM and CLM programs. Their results confirm cost reduction is still the most common benefit but they also cited improved workflow, visibility, forecasting and other benefits as shown in their results below:
These results corroborate that the benefits are moving beyond just the “year one hard dollar saving” and into more long term and strategic benefits for these enterprises. The results also confirm that investing in telecommunications is not just another expensive cost to be managed, but rather, it provides a technological platform that enables organizational change, growth, expansion, customer visibility, efficiencies, or even blue sky programs that can transform businesses.
AOTMP recommends that organizations must transform the view of telecom across the organization to enhance the perceived value of the current investment and to explore new ways to maximize the value of their comprehensive assets. Now, armed with improved reporting, business analytics and KPIs, organizations will be able to elevate the perception of telecom into highly valued strategic asset status.
Timeline for Realizing Business Value
With most TEM programs, returns on hard-dollar savings typically start during the first year of implementation. But that’s just part of the story. Here’s a look at what happens over the first three years:
During the first year, you want to achieve a quick win to support the ROI of the program and so your efforts will be focused on building a unified data model and aligning to best practices with the goal of removing existing waste and reducing costs.
In year two, you’re reaping the ongoing rewards of the efficiencies achieved in year one and now you’re focused on proactively optimizing costs, negotiating new contracts in your favor, and leveraging newfound decision making abilities to support your business strategy.
During the third year, your program is humming along, your vendor is handling the heavy lifting, and you’ve gained strategic alignment with the business which impacts both the top and bottom lines. You have also identified new cost savings after adding digital assets like cloud, software licenses and UC services to the program.
What’s clear is that enterprises are gaining value that far exceeds the initial ROI goals. From what we see here at Calero, that value has a time-line, and the more mature the organization, the more value they are able to gain over time.
Next Steps: If you’re interested in going deeper into the ROI discussion, you can check out our blog titled The ROI of Telecom Expense Management. In addition, be sure to download this white paper about Going Beyond Invoices and Expenses to Drive More Business Value with CLM.
Worldwide telecommunication spending is projected to reach $1.6 trillion by 2018, according to Statistica, but many organizations have a hard time managing communication spend. The...