Planning for a Successful TEM Implementation

February 2013

Planning for a Successful TEM Implementation

Overview
One of the most critical and oftentimes underappreciated steps

Planning for a Successful TEM Implementation

of any Telecom Expense Management engagement is the planning phase of the project. The need for good planning may be self-evident, but in practice it is often difficult to anticipate all of the areas in which forethought is essential. The purposes of project planning are to define the exact parameters of a project and to ensure that all the prerequisites for project execution and control are in place. To illustrate the importance of proper planning of a TEM engagement, AOTMP assessed enterprise expectations around performance and the time required to reach a steady-state of operations for their TEM/WMM programs. As Figure 1 depicts, 48% of enterprises indicated that it took longer than expected based on internal expectations or Supplier indications. Furthermore, for those who indicated a longer than expected time to steady-state implementation, the average delay of the program was eight months.
Figure 1 Actual Time to Steady-State Operations

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Planning for a Successful TEM Implementation

Based on enterprise feedback, indications of less than optimal planning and expectation-setting on the front-end were primary

Planning for a Successful TEM Implementation

drivers for the delays. Many enterprises also underestimated the amount of time and effort required to achieve a successful implementation. Detailed project plans were often lacking and roles and responsibilities were not clearly defined. Avoiding these obstacles is critical to ensuring ultimate program success.

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Planning for a Successful TEM Implementation

Ensuring Successful Planning

Planning for a Successful TEM Implementation

Ensuring successful planning requires ample consideration. Following these steps will ensure due diligence has been performed to increase the likelihood of program success: Perform Needs Assessment The first step in the planning process is to perform a needs assessment to identify and document the necessity for a formal TEM program. There must be a deep understanding of current processes for managing telecom expenses in order to determine what is currently not working well as well as the root causes

Based on AOTMP research, 69% of enterprises documented their objectives, goals and requirements when establishing their TEM program, leaving 31% which did not take this step or were unsure if these items had been established.

behind any challenges. Once the need assessment has been performed and a clear reason identified, enterprises must begin to identify objectives from various perspectives - including business, financial, technical and operational. Common objectives can include: Improving business processes Reducing telecom expenses Improving financial management and budget compliance Centralizing technical, financial and operational control of the telecom environment Business process improvement focuses on automating manual, labor-intensive processes to reduce operational costs. For example, enterprises may seek to establish better controls for service ordering activity with Telecom Service Providers. Enterprises can capture productivity gains through implementing a mechanism that manages the workflow of service ordering

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Planning for a Successful TEM Implementation

activity and properly places orders with Service Providers to ensure that the enterprise receives the correct services and pricing. Enterprises may also seek to gain process efficiencies

Planning for a Successful TEM Implementation

by moving from the manual processing of paper invoices to processing billing in electronic format or outsourcing the process to a third party. The gains from this process improvement can help to reduce late payment penalties, administrative expenses and disruptions from unanticipated service disconnects. Once objectives for the engagement have been established, an assessment of the current environment as well as documentation of the proposed scope of the program must be performed. These activities will include identifying items such as: Amount of telecom spend Types of assets and services Location and ownership of assets and services Proposed scope of TEM program Proposed deployment method of program (i.e. software only, managed service, etc.)

Based on AOTMP research, 63% of enterprises mention that developing a sustainable ROI was one of the most critical areas during the planning stages of a TEM program.

Develop the Business Case Business case development is the one area that typically makes or breaks a program. Often, cost reduction or expense management objectives lead the motivation for business case development. While these objectives cannot be discounted, an evolution of the needs assessment beyond pure financial aspects serves to promote a sustainable business case to meet current and future business needs. As Figure 2 indicates, 63% of enterprises mentioned that developing a sustainable ROI was
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Planning for a Successful TEM Implementation

one of the most critical areas during the planning stages of a TEM program.

Planning for a Successful TEM Implementation

Figure 2 Most Critical Areas When Developing the TEM Business Case

Exploring mid- and long-term program objectives beyond error identification and audit savings (1) affords enterprises the insight to align program solutions with business needs (2) justifies the program initially and (3) sets appropriate expectations as the program matures. Optimizing telecom and wireless service delivery to enterprise users and aligning service with business needs contributes to ongoing program value. As part of business case development, enterprises should also develop a sustainability plan for TEM. A cost justification model that relies solely on obtaining refunds from billing errors is not sustainable over time. Such a model places incorrect focus on the need for errors to remain constant, whereas focus on error reduction and elimination should be the goal. An effective business case will help the enterprise to develop a sustainable TEM program that is focused on financial, efficiency and capability gains.
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Planning for a Successful TEM Implementation

Obtain Stakeholder Support

Planning for a Successful TEM Implementation

Key stakeholders must be identified before support can be obtained. Many enterprises are narrowly-focused when it comes to developing their list of stakeholders. There are many potential stakeholder groups to consider when seeking acceptance for a TEM initiative. As Figure 3 indicates, the internal stakeholders that enterprises identified as being the most critical when securing support for TEM included senior management followed by IT/Telecom managers.
Figure 3 Most Critical Stakeholder When Gaining Support for TEM

Based on AOTMP research, 81% of enterprises indicate that gaining senior level support was one of the most critical areas during the planning stages of a TEM program.

Each stakeholder group will be influenced and impacted differently, so it is imperative that messages be tailored to each audience. Presenting the business case first at the executive level will provide the foundation for any TEM initiative. If senior executives do not buy into the concept that TEM can be a sustainable, cost saving and value-driving practice for the enterprise, chances are good that the program will be shortlived. It is imperative to identify an executive sponsor who will serve as a resource to rely upon when further support is
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Planning for a Successful TEM Implementation

needed. Once senior-level support has been garnered, the business case can then be presented to the other stakeholders within the organization. The stakeholders should know that

Planning for a Successful TEM Implementation

executive buy-in for the initiative has been achieved. The stakeholders should also be educated on the value that TEM will bring to each functional area. In addition, an overview of roles and responsibilities and expectations for each stakeholder should be provided.

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Planning for a Successful TEM Implementation

Developing a Detailed Project Plan As part of the implementation process, it will also be necessary to create a detailed project plan. A scope of work should be

Planning for a Successful TEM Implementation

developed within the project plan document that outlines the program requirements and the details surrounding each activity. Figure 4 offers an example scope of work document. All project and change management processes should be clearly documented and articulated to those responsible for the work. Primary elements of the project plan include: What are the specific activities that will be performed? Who will perform each activity? What is the expected timeframe in which each activity will be completed? Who is accountable for each project plan component?

Figure 4 Scope of Work Example

Program Requirements

Scope Details (completed by organization)

Sourcing Supplier Identification Requirements Compliance Evaluation Capability Evaluation Contract Negotiations Negotiating Service Rates Negotiating Terms & Conditions Negotiating Performance SLAs Contract Management System Integration Invoice Processing Invoice Receipt Invoice Reconciliation Charges Validation Exception Reporting Exception Resolution Chargeback Allocations Payment Approval Remittance Financial/AP System Integration HRIS System Integration
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Planning for a Successful TEM Implementation

Planning for a Successful TEM Implementation

Service Ordering Order Placement Order Approval Inventory Reconciliation Financial Validation Technical Validation Help Desk System Integration Inventory Validation & Change Control Inventory Reconciliation Financial Validation Technical Validation Data Aggregation Data Normalization Data Mapping Contract Inventory Validation Invoice Inventory Validation Service Inventory Validation Service Feature/Configuration Validation Inventory Elements Change Monitoring & Validation Reporting & Analysis Service Dashboards Financial Dashboards SLA Dashboards Contract Lifecycle Dashboards Supplier Performance Tracking Budget Tracking & Management Exception Reporting Forensic Analysis Reporting Group/Department Financial & Services Reporting Batch/Automated Report Generation Policy Compliance Reporting Event Notifications

Success Metrics A critical part in the planning process is developing success metrics which will be monitored over time. Metrics provide clear and tangible goals for a project and define criteria for project success. As metrics cannot exist in isolation, refer back to original goals and objectives to begin the development of success metrics. Identify at least one success metric for each objective. If a TEM Supplier is involved, utilize established Service Level Agreements (SLAs) as additional success criteria.

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Planning for a Successful TEM Implementation

Conclusion
The planning phase is critical to the overall success of any TEM engagement. The process will undoubtedly take time, but the payoff will be worth it in the end. Proper planning will not only ensure a smooth beginning to the initiative, but also increase the likelihood of a successful, sustainable program for the future.

Planning for a Successful TEM Implementation

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Planning for a Successful TEM Implementation

About AOTMP AOTMP is an information services company focused on establishing and maintaining high-performance, best-in-class

Planning for a Successful TEM Implementation

fixed & mobile telecom environments. All AOTMP solutions are based on the Efficiency First Framework, a disciplined, best practice-driven approach to managing fixed and mobile telecom environments. Our clients subscribe to the cloud-based Efficiency First Engine and utilize our Efficiency First Experts to help them apply it. Adoption of the Efficiency First Framework allows our clients to create sustainable and predictable results, while transforming their telecom environment from a cost center into a strategic asset used to drive business growth. About MDSL MDSL is the market leader in global Telecom Expense Management (TEM) and Market Data Management solutions with offices in New York, London, Paris, Gothenburg, Tokyo and Hong Kong. The company features in the Gartner TEM Magic Quadrant, and is one of very few providers to carry ISO 27001, ISO 9001 and Safe Harbor certification. Established in 1995, MDSLs award-winning solutions assist enterprises around the world to manage their communications and market data costs more efficiently, and achieve significant cost savings on a global scale. With a range of software and services covering the full life cycle, from procurement to invoice reconciliation, MDSL currently manages over $6.5 billion of technology expenses annually. More than 150 customers in over 34 countries trust the companys solutions to deliver tangible and measurable benefits to their bottom line. MDSL is a member of the TEM Industry Association (TEMIA).

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