Chriss Thierry of Etelesov, A Canadian Telecom company, noted that there are escalating monthly long distance charges because even though someone cancels such service, your telecom provider may not have totally disconnected you. And so you continue being charged for the services. He also warns about custom billing from your carrier because it may not be reflecting the MACD activity.
Dell now has introduced new services and one of them is Telecom expense management.
Susan J. Campbell of TMCnet in a recent article says that TEM helps drive strong ROI and adds value. She notes that companies wish to optimize telecom spending.
Showing posts with label telecom expense management. Show all posts
Showing posts with label telecom expense management. Show all posts
30.9.09
How to make sense of your wireless phone bill
How to Make Sense of Your Wireless Phone Bill by TelCon Associates
An important part of successful wireless cost-control is understanding the exact components that make up your monthly wireless bill. Admittedly, analyzing a wireless bill can be about as much fun as completing a tax return or watching paint dry. Routine analysis and auditing of wireless bills will help reduce overall telecom costs if you know what to look for - and if you know what actions to take in the case of billing errors.
It is important to understand that all of your wireless activities (i.e. making calls, receiving calls, text messaging, directory assistance, etc.) are meticulously tracked by telecommunications carriers' large computer databases.
At the appropriate time of the month, your recent cell phone activity is collected from the carrier's database by management software. The billing information for each component of the bill is then combined together to form your current wireless statement. Because these systems churn out hundreds of millions of wireless bills every month, it is easy to see why wireless bills are rarely "error-free."
Wireless carriers do not produce CSRs (customer service records) the way local phone companies do. The key to understanding exactly what is contained on your wireless billing statement is the account summary page. The following will give you a step-by-step explanation of the components that go into making up the typical wireless phone bill.
1) Number/Name and Plan
The area of the bill that contains the name and number of the account holder and the specific plan the phone is contracted. The number of minutes the plan offers is often contained within this column as well. Phones that are added to the account and/or are part of a "pooled minute plan" are listed as "add-a-phone" or a similar term.
2) Monthly Recurring Access Charges
This section states the monthly fee for the phone that is under contract. This is the typical "recurring" fee that does not change from month to month. Calling plans can vary tremendously and change constantly in the marketplace, but this number should stay consistent unless you specifically migrated to another plan the previous month. Additional phones added to a "pooled" plan are usually in the $10-20 per month range. This number usually reflects factored in discounts and/or service adjustments. (see next)
3) Service Discount/Adjustments
Service discounts and/or adjustments reflects the percentage that is "discounted" based on the wireless contract already in place. Always be certain that the percentage negotiated is correct. More importantly, be sure that the discount is properly applied to the monthly access charges. The amount of this discount can vary widely from contract to contract.
4) Cellular Minutes/Charges
This column lists the exact number of minutes used during the billing period, rounded up the nearest minute. Remember that wireless companies count incoming and outgoing calls as part of a wireless plan. The key here is to compare your typical usage during a 3 month period with the number of minutes that plan contains. Most wireless companies now allow plan adjustments (up or down), but be aware that making any adjustments usually means locking in for another year with that carrier. Under and over usage of minutes should be adjusted appropriately to maximize cost-savings.
5) LD/Other Charges/Credits
This column can include charges such as long distance calling, taxes and credits. This information will vary depending on the wireless carrier. For example, Verizon bills will include taxes on services and airtime, while Sprint does not. Long distance charges are generally not an issue since virtually all carriers include domestic long distance calling as standard on most calling plans.
6) Directory Assistance Charges
Directory assistance charges (sometimes called "related call charges") are listed in this column. Dialing 411 for directory assistance is one cell phone expense that can easily be eliminated. There are many free 411 services available now in the marketplace that retrieve information from the same databases used by the big carriers. For more information on using free 411 services, refer to this article: How to Get Wireless Directory Assistance Calls for Free
7) Equipment Charges
This column contains charges for handsets and other related equpment ordered for the previous month. In the corporate environment, wireless handsets come and go frequently. Oftentimes employees order phones on their own, only to expense them at the end of the month. The best way to control these types of charges is to insist that all equipment charges are handled by the corporate office. This is the only way to accurately track inventory of equipment as well. For more specific information, refer to this article and video: 6 Proven Strategies for Controlling Wireless Expenses
8) Direct Connect Services
Carriers (Nextel and Sprint) who offer direct-connect services to and from other subscribers will put those charges in this column. Direct-connect service is usually included in business plans so the use of this feature is the same as every other call. If charges occur in this column, make adjustments to your plan accordingly.
9) Text Messaging Charges
The amount of text messages made in the previous month and their total charges are found in this column. The popularity and wide spread use of text messaging by wireless subscribers has created a "cash cow" for the wireless industry. Text messaging is probably the most expensive activity you will engage in with your wireless phone. At 10-20 cents per message, these charges can really add up fast. There are plans available that allot a certain (even unlimited) amount of messages per month. If you engage in any amount of "texting", consider a plan that offers a small amount, then discipline yourself to stick with it.
10) Roaming Charges
Just a few years ago, roaming charges were feared by consumers. Making calls from outside your calling area can make your bills go through the roof in no time. These days roaming charges are not an issue as they have been in the past. Wireless networks are now much more robust. Unless you are subscribed to an economy plan, you should not experience excessive roaming charges when making calls from outside your calling area. If you travel often, be sure to check your wireless bill for any charges that might appear here and make a note of the location(s) from which they originated.
11) Data and 3rd Party Services Charges
As wireless technology evolves, so do the columns that contain billing charges. Since a majority of wireless phones today have internet capabilities, data transfer and internet usage charges are now a billing issue that requires diligent monitoring. The best advice here is to make certain the plan chosen will accommodate the internet usage that will be used. Data transfer is recorded in kilobytes and is rounded up the the nearest kilobyte for billing purposes. Data sent and received usually includes, but is not limited to, downloads, email, overhead and software update checks.
12) Taxes and Surcharges
A wireless bill would not be complete without excessive local, state and federal taxes and carrier surcharges. Keep in mind that some bills will separate these charges into specific columns. There is not much you can do to eliminate these annoying charges other than complain to your state and/or local government representatives about the escalating taxes placed on wireless bills. Here is a list of the top 10 states for wireless taxes.
Wireless usage is the fastest growing segment of the telecommunications industry. As cell phones become more feature rich, the probability of errors only increases. The time spent becoming familiar with usage patterns and billing will pay off in the long run.
An important part of successful wireless cost-control is understanding the exact components that make up your monthly wireless bill. Admittedly, analyzing a wireless bill can be about as much fun as completing a tax return or watching paint dry. Routine analysis and auditing of wireless bills will help reduce overall telecom costs if you know what to look for - and if you know what actions to take in the case of billing errors.
It is important to understand that all of your wireless activities (i.e. making calls, receiving calls, text messaging, directory assistance, etc.) are meticulously tracked by telecommunications carriers' large computer databases.
At the appropriate time of the month, your recent cell phone activity is collected from the carrier's database by management software. The billing information for each component of the bill is then combined together to form your current wireless statement. Because these systems churn out hundreds of millions of wireless bills every month, it is easy to see why wireless bills are rarely "error-free."
Wireless carriers do not produce CSRs (customer service records) the way local phone companies do. The key to understanding exactly what is contained on your wireless billing statement is the account summary page. The following will give you a step-by-step explanation of the components that go into making up the typical wireless phone bill.
1) Number/Name and Plan
The area of the bill that contains the name and number of the account holder and the specific plan the phone is contracted. The number of minutes the plan offers is often contained within this column as well. Phones that are added to the account and/or are part of a "pooled minute plan" are listed as "add-a-phone" or a similar term.
2) Monthly Recurring Access Charges
This section states the monthly fee for the phone that is under contract. This is the typical "recurring" fee that does not change from month to month. Calling plans can vary tremendously and change constantly in the marketplace, but this number should stay consistent unless you specifically migrated to another plan the previous month. Additional phones added to a "pooled" plan are usually in the $10-20 per month range. This number usually reflects factored in discounts and/or service adjustments. (see next)
3) Service Discount/Adjustments
Service discounts and/or adjustments reflects the percentage that is "discounted" based on the wireless contract already in place. Always be certain that the percentage negotiated is correct. More importantly, be sure that the discount is properly applied to the monthly access charges. The amount of this discount can vary widely from contract to contract.
4) Cellular Minutes/Charges
This column lists the exact number of minutes used during the billing period, rounded up the nearest minute. Remember that wireless companies count incoming and outgoing calls as part of a wireless plan. The key here is to compare your typical usage during a 3 month period with the number of minutes that plan contains. Most wireless companies now allow plan adjustments (up or down), but be aware that making any adjustments usually means locking in for another year with that carrier. Under and over usage of minutes should be adjusted appropriately to maximize cost-savings.
5) LD/Other Charges/Credits
This column can include charges such as long distance calling, taxes and credits. This information will vary depending on the wireless carrier. For example, Verizon bills will include taxes on services and airtime, while Sprint does not. Long distance charges are generally not an issue since virtually all carriers include domestic long distance calling as standard on most calling plans.
6) Directory Assistance Charges
Directory assistance charges (sometimes called "related call charges") are listed in this column. Dialing 411 for directory assistance is one cell phone expense that can easily be eliminated. There are many free 411 services available now in the marketplace that retrieve information from the same databases used by the big carriers. For more information on using free 411 services, refer to this article: How to Get Wireless Directory Assistance Calls for Free
7) Equipment Charges
This column contains charges for handsets and other related equpment ordered for the previous month. In the corporate environment, wireless handsets come and go frequently. Oftentimes employees order phones on their own, only to expense them at the end of the month. The best way to control these types of charges is to insist that all equipment charges are handled by the corporate office. This is the only way to accurately track inventory of equipment as well. For more specific information, refer to this article and video: 6 Proven Strategies for Controlling Wireless Expenses
8) Direct Connect Services
Carriers (Nextel and Sprint) who offer direct-connect services to and from other subscribers will put those charges in this column. Direct-connect service is usually included in business plans so the use of this feature is the same as every other call. If charges occur in this column, make adjustments to your plan accordingly.
9) Text Messaging Charges
The amount of text messages made in the previous month and their total charges are found in this column. The popularity and wide spread use of text messaging by wireless subscribers has created a "cash cow" for the wireless industry. Text messaging is probably the most expensive activity you will engage in with your wireless phone. At 10-20 cents per message, these charges can really add up fast. There are plans available that allot a certain (even unlimited) amount of messages per month. If you engage in any amount of "texting", consider a plan that offers a small amount, then discipline yourself to stick with it.
10) Roaming Charges
Just a few years ago, roaming charges were feared by consumers. Making calls from outside your calling area can make your bills go through the roof in no time. These days roaming charges are not an issue as they have been in the past. Wireless networks are now much more robust. Unless you are subscribed to an economy plan, you should not experience excessive roaming charges when making calls from outside your calling area. If you travel often, be sure to check your wireless bill for any charges that might appear here and make a note of the location(s) from which they originated.
11) Data and 3rd Party Services Charges
As wireless technology evolves, so do the columns that contain billing charges. Since a majority of wireless phones today have internet capabilities, data transfer and internet usage charges are now a billing issue that requires diligent monitoring. The best advice here is to make certain the plan chosen will accommodate the internet usage that will be used. Data transfer is recorded in kilobytes and is rounded up the the nearest kilobyte for billing purposes. Data sent and received usually includes, but is not limited to, downloads, email, overhead and software update checks.
12) Taxes and Surcharges
A wireless bill would not be complete without excessive local, state and federal taxes and carrier surcharges. Keep in mind that some bills will separate these charges into specific columns. There is not much you can do to eliminate these annoying charges other than complain to your state and/or local government representatives about the escalating taxes placed on wireless bills. Here is a list of the top 10 states for wireless taxes.
Wireless usage is the fastest growing segment of the telecommunications industry. As cell phones become more feature rich, the probability of errors only increases. The time spent becoming familiar with usage patterns and billing will pay off in the long run.
TelCon Associates helps businesses gain more control and reduce telecom spending. For a free e-book entitled Telecom Tips and Strategies, visit http://www.telconassociates.com
29.9.09
Mobile device management: the next big thing in Telecommunications
Mobile Device Management: The Next Big Thing in Telecommunications? by Peter Verhoeff
Mobile device management (MDM) is a relatively new development in telecommunications. This article explains what mobile device management is and how it relates to telecom expense management (TEM). Mobile device management is generally understood to be the distribution of software, data and device settings from a central server to a number of mobile devices, with the purpose of optimizing the functionality and security of these mobile devices reducing costs and downtime. These devices would include laptops, PDAs, cell phones and smart phones. Ideally, IT personnel would be able to upload software updates and the like to mobile devices with the same ease as to desktop computers physically connected to the network. Further, it would be desirable to be able to do so, regardless of the type of device, its service provider, its operating system, and so forth. And if a device is lost or stolen, it should be possible to disable it remotely and remove any confidential data in the process. Providing updates to mobile devices in the past required either a direct connection to the network or installing a SIM. The drawbacks of that process are obvious and many devices would never be updated. The next step in the evolution was where users of mobile devices could download the updates from the server, which was better, as the device did not have to be brought in, but many users would not bother to request the updates, so problems persisted. The final step is where the server broadcasts the updates to all of its mobile devices, which then are updated automatically. The administrator also has the capability to address a subset of its mobile clients, or even a single one, as in the case of disabling a lost or stolen device, or the cell phone of an employee who has left the company. Troubleshooting and running diagnostics on mobile devices from the central location is another useful capability to have. The challenges to achieving these results are considerable. For example, a remote device might be out of range or turned off. In addition, different devices need to be addressed differently, because of differences in hardware and/or software. Because this is a new concept, there are no manufacturing standards yet in this regard. Mobile device management is expected to grow in leaps and bounds. According to ABI Research, MDM services are projected to grow from $583 million in 2007 to over $20 billion by 2013, which translates to a growth rate of about 80% per year. A logical outgrowth of MDM is telecom expense management (TEM) applied to mobile devices, also referred to as wireless expense management (WEM). For example, with cell phones, call data records (CDR) can be generated, just as with landline phones, that record the origin, destination, duration, date and time of calls. Having this capability allows the containment of the soaring mobile telecom costs, as well as improved mobile security. Increasingly, TEM providers are offering wireless expense management features. One such provider is Telsoft Solutions. For more information visit the Telsoft Solutions website at www.telsoft-solutions.com.
Mobile device management (MDM) is a relatively new development in telecommunications. This article explains what mobile device management is and how it relates to telecom expense management (TEM). Mobile device management is generally understood to be the distribution of software, data and device settings from a central server to a number of mobile devices, with the purpose of optimizing the functionality and security of these mobile devices reducing costs and downtime. These devices would include laptops, PDAs, cell phones and smart phones. Ideally, IT personnel would be able to upload software updates and the like to mobile devices with the same ease as to desktop computers physically connected to the network. Further, it would be desirable to be able to do so, regardless of the type of device, its service provider, its operating system, and so forth. And if a device is lost or stolen, it should be possible to disable it remotely and remove any confidential data in the process. Providing updates to mobile devices in the past required either a direct connection to the network or installing a SIM. The drawbacks of that process are obvious and many devices would never be updated. The next step in the evolution was where users of mobile devices could download the updates from the server, which was better, as the device did not have to be brought in, but many users would not bother to request the updates, so problems persisted. The final step is where the server broadcasts the updates to all of its mobile devices, which then are updated automatically. The administrator also has the capability to address a subset of its mobile clients, or even a single one, as in the case of disabling a lost or stolen device, or the cell phone of an employee who has left the company. Troubleshooting and running diagnostics on mobile devices from the central location is another useful capability to have. The challenges to achieving these results are considerable. For example, a remote device might be out of range or turned off. In addition, different devices need to be addressed differently, because of differences in hardware and/or software. Because this is a new concept, there are no manufacturing standards yet in this regard. Mobile device management is expected to grow in leaps and bounds. According to ABI Research, MDM services are projected to grow from $583 million in 2007 to over $20 billion by 2013, which translates to a growth rate of about 80% per year. A logical outgrowth of MDM is telecom expense management (TEM) applied to mobile devices, also referred to as wireless expense management (WEM). For example, with cell phones, call data records (CDR) can be generated, just as with landline phones, that record the origin, destination, duration, date and time of calls. Having this capability allows the containment of the soaring mobile telecom costs, as well as improved mobile security. Increasingly, TEM providers are offering wireless expense management features. One such provider is Telsoft Solutions. For more information visit the Telsoft Solutions website at www.telsoft-solutions.com.
Author, Peter Verhoeff, writes articles on the business benefits of telecom expense management systems and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
28.9.09
Centralizing is key to significant telecom savings
Centralizing is Key to Significant Telecom Savings by Peter Verhoeff
Enterprises that seek to reduce telecom costs should find out what they are actually spending, as an initial step. A company that does not know what it is spending on telecom will not have an accurate picture of savings realized by implementing a telecom expense management (TEM) system. Interestingly, Edge Research recently conducted a survey, which found that only 59 percent of participating corporations knew the total cost of their network services. While it is possible to collect cost information in corporations where telecom invoice processing is decentralized, this task is made much simpler when all telecom invoices are received and processed at one central location. In the Edge Research survey, 81 percent of the companies that knew their total telecom spend figure had centralized management of telecom spend. Another advantage is that a centralized system to manage telecom spend lends itself to processing electronic invoices, which by itself can be a tremendous money saver, requiring much less skilled labor, compared to manually processing them. Telecom spend does not consist of just paying telephone bills. There is the procurement of equipment and services, for example. This too, if centralized, offers great advantages over the decentralized model. The individuals entrusted with the task of telecom procurement will quickly gain expertise in doing so and can secure better prices through standardizing, bulk purchasing and negotiation of terms. On the heels of knowing what the company is paying for its telecom services, there should follow a knowledge of what telecom resources it has. An inventory should be taken of "who has what." It is not unusual for a company to be billed for services or equipment it does not have. With an accurate inventory these mistakes can be caught and corrected. An accurate inventory is especially important with mobile devices. These often are lost or stolen and sometimes corporations keep paying inadvertently for cell phones that were assigned to employees who have long since left the company. Keeping a telecom inventory current and accurate is no small task, especially with mobile devices. Here too, centralization pays off handsomely. In fact, keeping track of inventory changes would be almost impossible if not centralized. As a logical extension, this can also become the central authorization point for acquisition and changes in configuration. In companies where employees have traditionally had a free hand in ordering their own telecom resources, there is likely to be considerable resistance to centralizing telecom management. It is therefore vital to have the cooperation of top management and effective policy must be devised and implemented in appropriate stages. This can be a lot of work, but the results should be well worth the effort. Having all these pieces in place, the thing to do is to invest in a computerized telecom expense management system, which can do away with much of the drudgery, save on manpower, cut telecom costs dramatically, as well as provide useful reports, keep accurate records, assist in the allocation of resources and improve security. Before embarking on a project of managing telecom costs, it is a good idea to contact a reputable provider of telecom expense management systems and consult their expertise on how to go about implementing a TEM system that best suits your enterprise. For more information on telecom expense management, visit the Telsoft Solutions website at www.telsoft-solutions.com.
Enterprises that seek to reduce telecom costs should find out what they are actually spending, as an initial step. A company that does not know what it is spending on telecom will not have an accurate picture of savings realized by implementing a telecom expense management (TEM) system. Interestingly, Edge Research recently conducted a survey, which found that only 59 percent of participating corporations knew the total cost of their network services. While it is possible to collect cost information in corporations where telecom invoice processing is decentralized, this task is made much simpler when all telecom invoices are received and processed at one central location. In the Edge Research survey, 81 percent of the companies that knew their total telecom spend figure had centralized management of telecom spend. Another advantage is that a centralized system to manage telecom spend lends itself to processing electronic invoices, which by itself can be a tremendous money saver, requiring much less skilled labor, compared to manually processing them. Telecom spend does not consist of just paying telephone bills. There is the procurement of equipment and services, for example. This too, if centralized, offers great advantages over the decentralized model. The individuals entrusted with the task of telecom procurement will quickly gain expertise in doing so and can secure better prices through standardizing, bulk purchasing and negotiation of terms. On the heels of knowing what the company is paying for its telecom services, there should follow a knowledge of what telecom resources it has. An inventory should be taken of "who has what." It is not unusual for a company to be billed for services or equipment it does not have. With an accurate inventory these mistakes can be caught and corrected. An accurate inventory is especially important with mobile devices. These often are lost or stolen and sometimes corporations keep paying inadvertently for cell phones that were assigned to employees who have long since left the company. Keeping a telecom inventory current and accurate is no small task, especially with mobile devices. Here too, centralization pays off handsomely. In fact, keeping track of inventory changes would be almost impossible if not centralized. As a logical extension, this can also become the central authorization point for acquisition and changes in configuration. In companies where employees have traditionally had a free hand in ordering their own telecom resources, there is likely to be considerable resistance to centralizing telecom management. It is therefore vital to have the cooperation of top management and effective policy must be devised and implemented in appropriate stages. This can be a lot of work, but the results should be well worth the effort. Having all these pieces in place, the thing to do is to invest in a computerized telecom expense management system, which can do away with much of the drudgery, save on manpower, cut telecom costs dramatically, as well as provide useful reports, keep accurate records, assist in the allocation of resources and improve security. Before embarking on a project of managing telecom costs, it is a good idea to contact a reputable provider of telecom expense management systems and consult their expertise on how to go about implementing a TEM system that best suits your enterprise. For more information on telecom expense management, visit the Telsoft Solutions website at www.telsoft-solutions.com.
Author, Peter Verhoeff, writes articles on the business benefits of telecom expense management systems and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
24.9.09
Manage those invoices with Telecom expense management
Manage Those Invoices With Telecom Expense Management by Peter Verhoeff
Managing telecom invoices is a challenge for most businesses. Their volume and complexity can be overwhelming. Companies may receive many invoices and simply keeping track of them can be a major task. Telecom expense management (TEM) is the tool of choice in getting telecom invoices under control.
The first step in setting out to manage invoices is to establish a single control point for processing all telecom invoices. This should include all kinds of telecom: wireline as well as wireless, voice and data channels. All telecom invoices should be routed to this central control point for processing.
Manually processing the telecom invoices can be very labor-intensive and costly. There can be dozens, or hundreds or more invoices every month, so simply paying them all on time can by itself be a challenge, not to mention verifying them for correctness. Moreover, telecom invoices are complex. In fact, it sometimes seems that telecom carriers go out of their way to make them hard to understand.
In order to be able to verify the correctness of invoices, the agreed upon rates have to be known and recorded. So all contracts have to be gathered in one place. In addition, invoice line items have to be compared against actual usage. Any discrepancies should be noted and reconciled.
Actual usage can be measured on traditional voice channels, using Call Detail Records (CDR) that provide data for each call, such as where it originated, what number was dialed, the time and date of the call, as well as its duration and cost. These CDRs are generated by the PBX system and can be stored on a computer. Similar facilities exist for cell phones and other wireless devices.
Manually comparing all invoice line items against actual usage can be next to impossible and many companies settle for periodic samples. However, most telecom carriers now can provide electronic invoicing, which avoids the need for data entry. With electronic invoicing, telecom expense management software can store the carrier data and compare invoices against actual usage and alert personnel to any discrepancies or unusual activity.
The computerized TEM system not only will save expensive manpower in processing the invoices, but it can do it much faster and more thoroughly. In short, the TEM system:
- Automates and organizes invoice processing. By tying into the corporate accounting system, payment can be automated and late payment penalties eliminated.
- Verifies invoices against contracted rates and ensures the correct rates are being applied.
- Compares invoices against inventory. It is not uncommon for companies to be billed for facilities they no longer have.
- Compares billed line items against actual usage data from PBXs and wireless devices and reports on discrepancies.
In many companies telecom costs are the second or third largest expense item. A good telecom expense management system can reduce these costs by up to 25% or more and, even more importantly, keep future cost increases in check. With returns like these, a TEM system can pay for itself many times over. For more information about telecom expense management, visit the Telsoft Solutions website at www.telsoft-solutions.com.
Managing telecom invoices is a challenge for most businesses. Their volume and complexity can be overwhelming. Companies may receive many invoices and simply keeping track of them can be a major task. Telecom expense management (TEM) is the tool of choice in getting telecom invoices under control.
The first step in setting out to manage invoices is to establish a single control point for processing all telecom invoices. This should include all kinds of telecom: wireline as well as wireless, voice and data channels. All telecom invoices should be routed to this central control point for processing.
Manually processing the telecom invoices can be very labor-intensive and costly. There can be dozens, or hundreds or more invoices every month, so simply paying them all on time can by itself be a challenge, not to mention verifying them for correctness. Moreover, telecom invoices are complex. In fact, it sometimes seems that telecom carriers go out of their way to make them hard to understand.
In order to be able to verify the correctness of invoices, the agreed upon rates have to be known and recorded. So all contracts have to be gathered in one place. In addition, invoice line items have to be compared against actual usage. Any discrepancies should be noted and reconciled.
Actual usage can be measured on traditional voice channels, using Call Detail Records (CDR) that provide data for each call, such as where it originated, what number was dialed, the time and date of the call, as well as its duration and cost. These CDRs are generated by the PBX system and can be stored on a computer. Similar facilities exist for cell phones and other wireless devices.
Manually comparing all invoice line items against actual usage can be next to impossible and many companies settle for periodic samples. However, most telecom carriers now can provide electronic invoicing, which avoids the need for data entry. With electronic invoicing, telecom expense management software can store the carrier data and compare invoices against actual usage and alert personnel to any discrepancies or unusual activity.
The computerized TEM system not only will save expensive manpower in processing the invoices, but it can do it much faster and more thoroughly. In short, the TEM system:
- Automates and organizes invoice processing. By tying into the corporate accounting system, payment can be automated and late payment penalties eliminated.
- Verifies invoices against contracted rates and ensures the correct rates are being applied.
- Compares invoices against inventory. It is not uncommon for companies to be billed for facilities they no longer have.
- Compares billed line items against actual usage data from PBXs and wireless devices and reports on discrepancies.
In many companies telecom costs are the second or third largest expense item. A good telecom expense management system can reduce these costs by up to 25% or more and, even more importantly, keep future cost increases in check. With returns like these, a TEM system can pay for itself many times over. For more information about telecom expense management, visit the Telsoft Solutions website at www.telsoft-solutions.com.
Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
Two areas of concern with Telecom expense management
Two Areas of Concern with Telecom Expense Management by Peter Verhoeff
It is true. Telecom carriers make errors in their billing and for some reason these errors more often than not are in the carrier’s favor. So it is the enterprise’s interest to check and verify the carrier’s invoice, for which the telecom expense management (TEM) system is ideally suited.
However, the other side of the coin is the company itself, where often even greater savings can be realized. Many times a corporation has only a vague idea of its total telecom costs, or of the effectiveness of its telecommunications network. For example, an enterprise may be paying for employees’ cell phones. Can it be confident that all of these cell phone users are still in the company’s employ, that they are using the phones only for the intended purpose, or that the company is paying the best rates?
Slamming is another potentially costly problem. Slamming is the activity of a telecom carrier other than the contracted company taking over the client’s telecom service, usually at much less favorable rates than from the original carrier. Even minor rate changes can make a big difference in cost. Does the company have adequate safeguards in place to detect and prevent slamming from occurring? A TEM system can alert management to this and other unpredicted changes.
Even without unauthorized switching of carriers, service providers sometimes add un-asked-for features that can cause a steep increase in telecom costs. And unless the invoices are closely monitored, these extra charges can go unnoticed. Due diligence is needed to guard against being charged for unwanted, unneeded or undelivered services or not getting the best deal, optimizing telecom resources for most efficient use, these can bring about a huge reduction in telecom costs.
While many times companies are overcharged for telecom services and bill tracking can pay huge dividends, getting one’s house in order can produce even bigger savings. Some areas where a company can benefit are:
Avoiding late charges by paying all telecom bills on time
Knowing total telecom costs and being alert for sudden increases
Informing carriers of discontinued lines and ensuring that they are no longer charged for
Centralizing procurement of telecom services and resources to avoid waste
Negotiating the most favorable contracts
Taking advantage of bonuses and special money saving offers
While this sounds like a major undertaking, with the help of a good telecom expense management system telecom costs can rapidly be brought under control and major savings realized.
It is true. Telecom carriers make errors in their billing and for some reason these errors more often than not are in the carrier’s favor. So it is the enterprise’s interest to check and verify the carrier’s invoice, for which the telecom expense management (TEM) system is ideally suited.
However, the other side of the coin is the company itself, where often even greater savings can be realized. Many times a corporation has only a vague idea of its total telecom costs, or of the effectiveness of its telecommunications network. For example, an enterprise may be paying for employees’ cell phones. Can it be confident that all of these cell phone users are still in the company’s employ, that they are using the phones only for the intended purpose, or that the company is paying the best rates?
Slamming is another potentially costly problem. Slamming is the activity of a telecom carrier other than the contracted company taking over the client’s telecom service, usually at much less favorable rates than from the original carrier. Even minor rate changes can make a big difference in cost. Does the company have adequate safeguards in place to detect and prevent slamming from occurring? A TEM system can alert management to this and other unpredicted changes.
Even without unauthorized switching of carriers, service providers sometimes add un-asked-for features that can cause a steep increase in telecom costs. And unless the invoices are closely monitored, these extra charges can go unnoticed. Due diligence is needed to guard against being charged for unwanted, unneeded or undelivered services or not getting the best deal, optimizing telecom resources for most efficient use, these can bring about a huge reduction in telecom costs.
While many times companies are overcharged for telecom services and bill tracking can pay huge dividends, getting one’s house in order can produce even bigger savings. Some areas where a company can benefit are:
Avoiding late charges by paying all telecom bills on time
Knowing total telecom costs and being alert for sudden increases
Informing carriers of discontinued lines and ensuring that they are no longer charged for
Centralizing procurement of telecom services and resources to avoid waste
Negotiating the most favorable contracts
Taking advantage of bonuses and special money saving offers
While this sounds like a major undertaking, with the help of a good telecom expense management system telecom costs can rapidly be brought under control and major savings realized.
11.9.09
Infamous tlecom scams stress the necessity for continued vigilance
Infamous Telecom Scams Stress the Necessity for Continued Vigilance by Peter Verhoeff
In today's business environment, security is vitally important, and security breaches across voice and data networks are growing by the day. One tool that can assist with security is a telecom expense management (TEM) system. Detecting internal or external toll fraud has escalated in priority for many CEOs in today's heightened security-conscious climate.
While new technologies like VoIP can improve phone systems performance, productivity and create massive cost savings for your organization, because it uses existing Internet infrastructure VoIP has the same vulnerabilities as data - it can be intercepted, captured or modified and must be secured.
According to a study by the American Society for Industrial Security, industrial espionage could account for potential losses for all American industry of as much as $63 billion. The actual dollar amount is heavily debated, but everyone agrees that the problem can't be taken lightly. Toll Fraud alone costs the American economy $5 billion annually.
Here are some scams that are currently in vogue with telecom scammers.
1. The do-not-call scam. The national "do-not-call" register was created to shield people from unwanted telemarketing calls. Now, however, some scam artists are using it to steal identities. Pretending to be from the registry, they call the person and claim they need to verify the person's identity and ask for a social security or bank account number in order to qualify for the registry.
2. The 809 scam. A person is contacted by pager, voicemail, fax or email and asked to call an 809 or 823 area code number. As it happens, these numbers originate in the Caribbean and are pay-per-call numbers, similar the 900 numbers in the U.S. These numbers can be set up to charge hundreds ort even thousands of dollars per minute! When you return such a call, naturally they will drag it out as long as possible.
3. The "cramming" scam. Cramming is where a phone company bills the customer for unwanted features or services.
4. The "slamming" scam. This is where the subscriber is switched to a different carrier without his consent. The client can then be billed for all sorts of extra features or less advantageous rates.
5. The call forwarding scam. The person receiving this call will be told he has won a sweepstakes prize. To claim the prize they are asked punch some numbers on their touch-tone phone. Unbeknownst to them this activates the call forwarding feature, which gives the caller free access to the victim's phone service, allowing him to make free long distance calls. The so-called winner now ends up paying for the scammer's calls.
6. The 9-0 scam. Businesses sometimes get called by someone pretending to be a telephone technician testing a new telephone feature, who asks to dial 9-0. This gives the scammer access to the corporate PBX system.
Clearly, telecom security is vital if a company wishes to protect its telecommunications. A telecom expense management system can provide valuable reports and alerts to detect and correct potential telecom abuse, as one of its functions.
Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
In today's business environment, security is vitally important, and security breaches across voice and data networks are growing by the day. One tool that can assist with security is a telecom expense management (TEM) system. Detecting internal or external toll fraud has escalated in priority for many CEOs in today's heightened security-conscious climate.
While new technologies like VoIP can improve phone systems performance, productivity and create massive cost savings for your organization, because it uses existing Internet infrastructure VoIP has the same vulnerabilities as data - it can be intercepted, captured or modified and must be secured.
According to a study by the American Society for Industrial Security, industrial espionage could account for potential losses for all American industry of as much as $63 billion. The actual dollar amount is heavily debated, but everyone agrees that the problem can't be taken lightly. Toll Fraud alone costs the American economy $5 billion annually.
Here are some scams that are currently in vogue with telecom scammers.
1. The do-not-call scam. The national "do-not-call" register was created to shield people from unwanted telemarketing calls. Now, however, some scam artists are using it to steal identities. Pretending to be from the registry, they call the person and claim they need to verify the person's identity and ask for a social security or bank account number in order to qualify for the registry.
2. The 809 scam. A person is contacted by pager, voicemail, fax or email and asked to call an 809 or 823 area code number. As it happens, these numbers originate in the Caribbean and are pay-per-call numbers, similar the 900 numbers in the U.S. These numbers can be set up to charge hundreds ort even thousands of dollars per minute! When you return such a call, naturally they will drag it out as long as possible.
3. The "cramming" scam. Cramming is where a phone company bills the customer for unwanted features or services.
4. The "slamming" scam. This is where the subscriber is switched to a different carrier without his consent. The client can then be billed for all sorts of extra features or less advantageous rates.
5. The call forwarding scam. The person receiving this call will be told he has won a sweepstakes prize. To claim the prize they are asked punch some numbers on their touch-tone phone. Unbeknownst to them this activates the call forwarding feature, which gives the caller free access to the victim's phone service, allowing him to make free long distance calls. The so-called winner now ends up paying for the scammer's calls.
6. The 9-0 scam. Businesses sometimes get called by someone pretending to be a telephone technician testing a new telephone feature, who asks to dial 9-0. This gives the scammer access to the corporate PBX system.
Clearly, telecom security is vital if a company wishes to protect its telecommunications. A telecom expense management system can provide valuable reports and alerts to detect and correct potential telecom abuse, as one of its functions.
Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
7.9.09
Telecom invoice management- catch costly errors
Telecom Invoice Management - Catch Costly Errors by Creative Assistant
Large corporations are not surprised when their telecom invoice management department receives 1,000 to 2,000 invoices per month from their telecom service providers. Some of the invoices can easily include more than 100 pages. Large companies can spend over 200 million a year on telephone services. Unfortunately, some companies loose out every month on lowering their telephone expenses by not having telecom invoice management software.
Most auditors that manually perform spot checks on telephone service invoices claim they are only helping the company capture a small percentage of the savings that are available from catching telecom billing errors. Companies are routinely being overcharged and paying for phone lines or cell phones usage that the company terminated.
Businesses can simply hire more staff to review the telecom invoices but telecom invoice management software is much more efficient than humans at reviewing each invoice. The software generally has a short payback time period and provides significant savings for large, medium and even some small companies.
An auditor from one large corporation claimed his staff was catching invoice errors that ended up saving the corporation about 1 to 2 percent per year. However, the auditing staff believed that about five percent of the invoices included errors and a large amount of money had been wasted.
An effective invoice management software package will check all the telecom invoices for errors, not just periodic samples which typically occur with auditors. Large companies easily spend more than 100 million on telecom services annually and average size companies in telecom communication heavy usage industries often spend more than 25 million per year. The savings gained by utilizing telecom invoice management software is substantial.
Companies that don’t have effective centralized management structure and telecom expense management software have a difficult time checking each invoice for errors due to the huge volume and the complexity that characterizes most telecom service providers invoices. Most experts claim that the typical invoice contains 7% to 12% of charges that are mistakes. Some telecom expense management experts suggest that 10% to 20 % of telephone charges are errors.
Unfortunately for companies, more than 80% of the errors go in favor of the telephone service companies and this disproportionate outcome doesn't look it's going to change. More and more companies are relying on telecom invoice management software instead of waiting for the telephone service providers to eliminate the mistakes or for half of the mistakes to go in their favor.
An effective telecom expense management system combines all the telephone providers' tariffs and contract information into one database. Since a contract with a prominent telephone carrier can include over 2,000 rate categories, software is essential to catch all the errors. Without telecom invoice management software, companies are simply giving huge sums of money to telephone companies which they don't deserve.
For more information on telecom expense management visit the Telsoft Solutions website at www.telsoft-solutions.com.
Article Source: http://www.articlealley.com/article_623451_15.html
Large corporations are not surprised when their telecom invoice management department receives 1,000 to 2,000 invoices per month from their telecom service providers. Some of the invoices can easily include more than 100 pages. Large companies can spend over 200 million a year on telephone services. Unfortunately, some companies loose out every month on lowering their telephone expenses by not having telecom invoice management software.
Most auditors that manually perform spot checks on telephone service invoices claim they are only helping the company capture a small percentage of the savings that are available from catching telecom billing errors. Companies are routinely being overcharged and paying for phone lines or cell phones usage that the company terminated.
Businesses can simply hire more staff to review the telecom invoices but telecom invoice management software is much more efficient than humans at reviewing each invoice. The software generally has a short payback time period and provides significant savings for large, medium and even some small companies.
An auditor from one large corporation claimed his staff was catching invoice errors that ended up saving the corporation about 1 to 2 percent per year. However, the auditing staff believed that about five percent of the invoices included errors and a large amount of money had been wasted.
An effective invoice management software package will check all the telecom invoices for errors, not just periodic samples which typically occur with auditors. Large companies easily spend more than 100 million on telecom services annually and average size companies in telecom communication heavy usage industries often spend more than 25 million per year. The savings gained by utilizing telecom invoice management software is substantial.
Companies that don’t have effective centralized management structure and telecom expense management software have a difficult time checking each invoice for errors due to the huge volume and the complexity that characterizes most telecom service providers invoices. Most experts claim that the typical invoice contains 7% to 12% of charges that are mistakes. Some telecom expense management experts suggest that 10% to 20 % of telephone charges are errors.
Unfortunately for companies, more than 80% of the errors go in favor of the telephone service companies and this disproportionate outcome doesn't look it's going to change. More and more companies are relying on telecom invoice management software instead of waiting for the telephone service providers to eliminate the mistakes or for half of the mistakes to go in their favor.
An effective telecom expense management system combines all the telephone providers' tariffs and contract information into one database. Since a contract with a prominent telephone carrier can include over 2,000 rate categories, software is essential to catch all the errors. Without telecom invoice management software, companies are simply giving huge sums of money to telephone companies which they don't deserve.
For more information on telecom expense management visit the Telsoft Solutions website at www.telsoft-solutions.com.
Article Source: http://www.articlealley.com/article_623451_15.html
6.9.09
The need for telecom expense management: how corporations are duped
The Need for Telecom Expense Management: How Corporations are Duped by Peter Verhoeff
To illustrate the need for telecom expense management (TEM), here are some true horror stories that go around in TEM circles.
A national fitness chain one day received a long distance bill of over a thousand pages, raising their monthly payment from about $3,000 to over $11,000. An investigation revealed that the long distance carrier had erroneously raised their rate from 2 cents to 10 cents per minute, in addition to other billing errors. Fast action resulted in the company being re-credited an amount exceeding $24,000.
An airline company had moved to new premises and the newly hired telecommunications manager asked a TEM provider to check their telecom expenses. A large number of telecom billing errors was found, resulting in credits of almost $200,000.
One company with many branches found that its telecom carrier had erroneously billed them for several locations that had been sold to another company. The carrier had failed to transfer the billing to the new owners, resulting in an overbilling of more than $50,000. It took the company over two years to get this corrected.
A large grocery chain sold off some of its stores and told its telecom carrier to shut down all connections to those stores, but failed to ensure that all related charges were removed. Through this oversight, the grocery chain continued to overpay by $6,000 a month for three years before the error was caught and corrected.
Here is another way in which an enterprise can be overcharged. A company provided an 800-number for traveling employees. Mysteriously, some prisoners got their hands on that number and entertained themselves by using it to call their favorite 900 adult numbers. They ran up a bill of thousands of dollars before the abuse was discovered and stopped.
In another instance of telecom abuse, a team of janitors at a large financial institution routinely cleaned the premises late at night. Some cleaners took advantage of the staff’s absence by using the company’s phones to make unauthorized international calls. This cost the company in excess of $20,000 before this abuse was discovered.
There is an unethical practice called slamming, where the company's telecom service is switched to another carrier, without the company's knowledge. One company to which this happened was billed for numerous unwanted add-on services, with a resulting $5,000 in overcharges.
Another problem is failing to stay current. One company, after laying off over a thousand employees, discovered months later that they were still paying for their Internet access from home. A large corporation with many cell phones ran a check on their telecom inventory and found 3,500 cell phones still being billed for that belonged to ex-employees who had long since departed. These bills for former employees were costing the company over a million dollars a year.
The best tool to avoid paying unwarranted telecom charges is a telecom expense management system. TEM can keep designated personnel apprised of the status of the corporate telecom network and alert them to potential problem areas, such as billing errors, unusual call patterns, inventory changes, etc. Companies that want to control telecom costs and maintain security will find a TEM system invaluable.
To illustrate the need for telecom expense management (TEM), here are some true horror stories that go around in TEM circles.
A national fitness chain one day received a long distance bill of over a thousand pages, raising their monthly payment from about $3,000 to over $11,000. An investigation revealed that the long distance carrier had erroneously raised their rate from 2 cents to 10 cents per minute, in addition to other billing errors. Fast action resulted in the company being re-credited an amount exceeding $24,000.
An airline company had moved to new premises and the newly hired telecommunications manager asked a TEM provider to check their telecom expenses. A large number of telecom billing errors was found, resulting in credits of almost $200,000.
One company with many branches found that its telecom carrier had erroneously billed them for several locations that had been sold to another company. The carrier had failed to transfer the billing to the new owners, resulting in an overbilling of more than $50,000. It took the company over two years to get this corrected.
A large grocery chain sold off some of its stores and told its telecom carrier to shut down all connections to those stores, but failed to ensure that all related charges were removed. Through this oversight, the grocery chain continued to overpay by $6,000 a month for three years before the error was caught and corrected.
Here is another way in which an enterprise can be overcharged. A company provided an 800-number for traveling employees. Mysteriously, some prisoners got their hands on that number and entertained themselves by using it to call their favorite 900 adult numbers. They ran up a bill of thousands of dollars before the abuse was discovered and stopped.
In another instance of telecom abuse, a team of janitors at a large financial institution routinely cleaned the premises late at night. Some cleaners took advantage of the staff’s absence by using the company’s phones to make unauthorized international calls. This cost the company in excess of $20,000 before this abuse was discovered.
There is an unethical practice called slamming, where the company's telecom service is switched to another carrier, without the company's knowledge. One company to which this happened was billed for numerous unwanted add-on services, with a resulting $5,000 in overcharges.
Another problem is failing to stay current. One company, after laying off over a thousand employees, discovered months later that they were still paying for their Internet access from home. A large corporation with many cell phones ran a check on their telecom inventory and found 3,500 cell phones still being billed for that belonged to ex-employees who had long since departed. These bills for former employees were costing the company over a million dollars a year.
The best tool to avoid paying unwarranted telecom charges is a telecom expense management system. TEM can keep designated personnel apprised of the status of the corporate telecom network and alert them to potential problem areas, such as billing errors, unusual call patterns, inventory changes, etc. Companies that want to control telecom costs and maintain security will find a TEM system invaluable.
Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
1.9.09
Telecom security concerns alleviated with call accounting
Telecom Security Concerns Alleviated With Call Accounting by Peter Verhoeff
Ever since 9/11, security has been a major concern for governmental agencies and corporations alike. Telecom networks are particularly vulnerable to not only fraud and hacker attacks, but can also become the target of terrorism. Call accounting is a tool that may be used to combat these threats.
As is often the case with new technologies, the creative efforts of the innovators become the target of those who seek to destroy them. Most of us are aware of the threats posed to Internet communications, such as viruses and other malicious intrusions, and have taken protective measures with firewall and virus checking software. However, voice communications face similar risks and generally are not as well-protected. Yet, who would want their telephone network crippled in times of crisis, or worse being taken over by terrorists?
The FBI is aware of the telecom threats, but enterprises need to take their own measures to protect themselves. The traditional switched networks are subject to attacks, but the new VoIP (Voice over Internet Protocol) technology provides a whole new set of security challenges.
A good start to making your telecom network more secure is by installing a call accounting system. Call accounting software uses Call Detail Records (CDRs) to provide information about where a call originated, its destination, the date, time and duration, etc.
The call accounting software issues periodic reports about who used the telephone network and when, which can quickly show up any unusual activity and permit timely corrective measures. The system can even be set up to issue alarms when it detects any suspicious activity. It can detect calls of abnormal duration (too long or too short), wrong calling station, wrong destination, wrong time of day, etc.
Ever since 9/11, security has been a major concern for governmental agencies and corporations alike. Telecom networks are particularly vulnerable to not only fraud and hacker attacks, but can also become the target of terrorism. Call accounting is a tool that may be used to combat these threats.
As is often the case with new technologies, the creative efforts of the innovators become the target of those who seek to destroy them. Most of us are aware of the threats posed to Internet communications, such as viruses and other malicious intrusions, and have taken protective measures with firewall and virus checking software. However, voice communications face similar risks and generally are not as well-protected. Yet, who would want their telephone network crippled in times of crisis, or worse being taken over by terrorists?
The FBI is aware of the telecom threats, but enterprises need to take their own measures to protect themselves. The traditional switched networks are subject to attacks, but the new VoIP (Voice over Internet Protocol) technology provides a whole new set of security challenges.
A good start to making your telecom network more secure is by installing a call accounting system. Call accounting software uses Call Detail Records (CDRs) to provide information about where a call originated, its destination, the date, time and duration, etc.
The call accounting software issues periodic reports about who used the telephone network and when, which can quickly show up any unusual activity and permit timely corrective measures. The system can even be set up to issue alarms when it detects any suspicious activity. It can detect calls of abnormal duration (too long or too short), wrong calling station, wrong destination, wrong time of day, etc.
Having a reliable call accounting system in place will not only provide improved security, it routinely saves the company money, because it provides a phone bill tracking mechanism and thus helps to prevent over billing by telecom carriers. This is all part of Telecom Expense Management (TEM).
In addition to providing reports and security alerts, a good call accounting system should be able to operate with the traditional switched telephone networks, as well as with the newer VoIP technology.
Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.31.8.09
Centralized TEM: a great ROI
Centralized Telecom Expense Management: Great Return on Investment by Peter Verhoeff
The Aberdeen Group states, in The Cost of Not Acting: The Total Telecom Cost Management Benchmark Report, that the average Fortune 500 Company spends 3.6% of their total revenue on telecom and related expenses. Telecom Expense Management is the end-to-end, automated management of wireline and wireless expenses, as well as circuits and devices. This encompasses the entire telecom lifecycle, including contract sourcing, procurement, provisioning, inventory management, wireless management and invoice processing/auditing. Reducing these expenses by even a few percentage points can have a significant effect on the enterprise's profitability.
The dramatic drop in telecom rates over the past two decades has created the perception that controlling telecom expenses is less important than in the past, but this belief is not borne out in practice. The reality is that, on average, corporate telecom costs have gone up, due to the proliferation of new applications, such as cell phones, smart phones, pagers, laptops and other portable devices. The sharp increase of high-speed Internet connections has also driven up costs.
Telecom cost savings can be achieved in many areas. For example, the same Aberdeen report mentions that a surprising 65% of survey respondents incur late fees. Although this constitutes but a small percentage of the overall costs, that money could have been put to good use instead.
A complete telecom expense management system is a software system that comprises the following areas:
* A centralized telecom inventory control system. The maxim that one cannot control what cannot be measured suggests that the first area to be addressed is to establish a complete inventory of all telecom resources and services. Many companies have only a vague idea of what equipment and services it is paying for. Companies are often billed for equipment or services they no longer use.
* Centralized telecommunications procurement. This is a logical next step. Unless procurement is also centralized, the inventory will quickly go out of date because of unreported telecom purchases. Moreover, centralized procurement will also tend to avoid unnecessary purchases and save money through bulk purchasing.
* Centralized processing of telecom invoices. This helps to make sure they are paid on time. In addition, by comparing invoice detail against actual call detail records (CDR) and vendor tariff agreements, billing errors can quickly be identified and corrected.
* Monitor resource usage. This will help to identify discontinued resources that may still be billed for, as well as inefficiencies, waste, telecom bottlenecks, and unauthorized or fraudulent use of resources. By detecting and reporting anomalies, the system improves security, which is important in this era of terrorism and industrial espionage.
The key to a successful telecom expense management system is automation and organization. The savings in labor costs alone can be dramatic. In addition, productivity can be boosted by relating telecom costs to individual departments, sections, projects, or even individual employees.
The Aberdeen Group states, in The Cost of Not Acting: The Total Telecom Cost Management Benchmark Report, that the average Fortune 500 Company spends 3.6% of their total revenue on telecom and related expenses. Telecom Expense Management is the end-to-end, automated management of wireline and wireless expenses, as well as circuits and devices. This encompasses the entire telecom lifecycle, including contract sourcing, procurement, provisioning, inventory management, wireless management and invoice processing/auditing. Reducing these expenses by even a few percentage points can have a significant effect on the enterprise's profitability.
The dramatic drop in telecom rates over the past two decades has created the perception that controlling telecom expenses is less important than in the past, but this belief is not borne out in practice. The reality is that, on average, corporate telecom costs have gone up, due to the proliferation of new applications, such as cell phones, smart phones, pagers, laptops and other portable devices. The sharp increase of high-speed Internet connections has also driven up costs.
Telecom cost savings can be achieved in many areas. For example, the same Aberdeen report mentions that a surprising 65% of survey respondents incur late fees. Although this constitutes but a small percentage of the overall costs, that money could have been put to good use instead.
A complete telecom expense management system is a software system that comprises the following areas:
* A centralized telecom inventory control system. The maxim that one cannot control what cannot be measured suggests that the first area to be addressed is to establish a complete inventory of all telecom resources and services. Many companies have only a vague idea of what equipment and services it is paying for. Companies are often billed for equipment or services they no longer use.
* Centralized telecommunications procurement. This is a logical next step. Unless procurement is also centralized, the inventory will quickly go out of date because of unreported telecom purchases. Moreover, centralized procurement will also tend to avoid unnecessary purchases and save money through bulk purchasing.
* Centralized processing of telecom invoices. This helps to make sure they are paid on time. In addition, by comparing invoice detail against actual call detail records (CDR) and vendor tariff agreements, billing errors can quickly be identified and corrected.
* Monitor resource usage. This will help to identify discontinued resources that may still be billed for, as well as inefficiencies, waste, telecom bottlenecks, and unauthorized or fraudulent use of resources. By detecting and reporting anomalies, the system improves security, which is important in this era of terrorism and industrial espionage.
The key to a successful telecom expense management system is automation and organization. The savings in labor costs alone can be dramatic. In addition, productivity can be boosted by relating telecom costs to individual departments, sections, projects, or even individual employees.
In short, a company that does not have a telecom expense management technique in place is in fact wasting funds, while an investment in TEM software will soon pay for itself.
Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
9.8.09
Paying the right cost for telecom use
Don't Overpay for Telecom Services by Peter Verhoeff
According to TheInfoPro, an independent research network and leading supplier of market intelligence for the Information Technology (IT) industry, 95% of large enterprises pay too much for their telecom services, but less than one third of these corporations are using tools to prevent being overcharged by vendors. Many corporations are not yet taking advantage of Telecom Expense Management (TEM) and related tools, such as Call Accounting.
The reason many carriers overcharge may not be a result of dishonesty on their part, but rather a result of their inability to keep up with changing customer requirements and constantly changing technologies. Many vendors have legacy billing systems that are ill suited to keeping up with the latest developments. In fact, billing errors in excess of 15% are not uncommon.
Even though effective low cost tools are available, most companies are not taking advantage of them to reduce their telecom expenses. Thus it appears that education is needed to alert corporate executives to the fact that they are in essence throwing money down the drain. Another part of the problem lies in the fact that the telecommunications industry "consists of a constantly shifting labyrinth of services and products--from Voice over Internet Protocol (VoIP) to wireless devices" according to an Aberdeen Group report on Total Telecom Cost Management (TTCM).
For TTCM to be totally effective, some corporate restructuring may be necessary, because best practices dictate that telemanagement should be centralized.
Foremost in importance is bill tracking through the use of Call Accounting and Invoice Management software, which keeps track of PBX-generated Call Detail Records (CDR). This is a vital tool in determining whether or not the vendor's invoice is correct. A good Inventory Management system will issue reports that show up any discrepancies, so that a vendor's billing errors may be caught and corrected rapidly. An important Call Accounting use is to detect and correct telecom fraud and abuse.
Asset (inventory) Management is another vital factor. In order to verify the correctness of a vendor's invoice for equipment and resource usage, it has to be known what you have. Large corporations with many branch locations may be billed for lines, switches and phones at branches that have been closed down months ago, making for huge overpayments.
The payment of invoices should be centralized, using a TEM system that includes Invoice Management. This allows a good grasp of the total telecom cost and ensures timely payments, thus avoiding late payment penalties. And of course it is clearly advantageous to handle any billing disputes through the legal department at the head office, rather than from a branch location.
Asset management further includes optimizing existing resources, expanding the network where needed and getting rid of what is no longer required. Centralizing the purchasing and acquisition of resources allows for greater effectiveness in resource utilization, while corporate clout allows for better deals to be negotiated.
According to TheInfoPro, an independent research network and leading supplier of market intelligence for the Information Technology (IT) industry, 95% of large enterprises pay too much for their telecom services, but less than one third of these corporations are using tools to prevent being overcharged by vendors. Many corporations are not yet taking advantage of Telecom Expense Management (TEM) and related tools, such as Call Accounting.
The reason many carriers overcharge may not be a result of dishonesty on their part, but rather a result of their inability to keep up with changing customer requirements and constantly changing technologies. Many vendors have legacy billing systems that are ill suited to keeping up with the latest developments. In fact, billing errors in excess of 15% are not uncommon.
Even though effective low cost tools are available, most companies are not taking advantage of them to reduce their telecom expenses. Thus it appears that education is needed to alert corporate executives to the fact that they are in essence throwing money down the drain. Another part of the problem lies in the fact that the telecommunications industry "consists of a constantly shifting labyrinth of services and products--from Voice over Internet Protocol (VoIP) to wireless devices" according to an Aberdeen Group report on Total Telecom Cost Management (TTCM).
For TTCM to be totally effective, some corporate restructuring may be necessary, because best practices dictate that telemanagement should be centralized.
Foremost in importance is bill tracking through the use of Call Accounting and Invoice Management software, which keeps track of PBX-generated Call Detail Records (CDR). This is a vital tool in determining whether or not the vendor's invoice is correct. A good Inventory Management system will issue reports that show up any discrepancies, so that a vendor's billing errors may be caught and corrected rapidly. An important Call Accounting use is to detect and correct telecom fraud and abuse.
Asset (inventory) Management is another vital factor. In order to verify the correctness of a vendor's invoice for equipment and resource usage, it has to be known what you have. Large corporations with many branch locations may be billed for lines, switches and phones at branches that have been closed down months ago, making for huge overpayments.
The payment of invoices should be centralized, using a TEM system that includes Invoice Management. This allows a good grasp of the total telecom cost and ensures timely payments, thus avoiding late payment penalties. And of course it is clearly advantageous to handle any billing disputes through the legal department at the head office, rather than from a branch location.
Asset management further includes optimizing existing resources, expanding the network where needed and getting rid of what is no longer required. Centralizing the purchasing and acquisition of resources allows for greater effectiveness in resource utilization, while corporate clout allows for better deals to be negotiated.
Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.
10.7.09
Expenses solution for Telecom
Going the Distance: Telecom Expense Solution Survey Shows It’s All About Fundamentals
by Nina Wales
Training for a marathon requires athletes to diligently condition their bodies to run 26.2 miles, which can be incredibly intimidating for some individuals. It begins with increasing your stamina and improving your efficiency by planning runs where your distance gradually increases in intervals, until you can reach your optimal goal: completing the marathon. By focusing on your stamina and efficiency, you are less likely to suffer injuries, burn out from fatigue and fail to complete the race.
Although not physically intimidating, choosing a TEM solution can be a straining and confusing process that requires similar discipline. Since Gartner coined the term telecom expense management (TEM) a few years ago, TEM solutions have gained considerable momentum, along with considerable complexity. This added complexity has led to growing frustrations in the marketplace because the fundamentals of a TEM solution are often being overlooked. Much like stamina and efficiency - the fundamental pillars of running a marathon - centralizing the management of telecom spend and utilizing electronic billing data are the distinguishing factors of a successful TEM solution and recent research supports this statement.
The findings from the 2008 Telecom Expense Management Benchmark Survey, conducted by Edge Research, revealed that successful companies using TEM adhere to the most fundamental aspect: centralization. The survey results were gathered from over 400 organizations, which showed that among those satisfied with their organization's TEM solution, 88% centrally managed telecom spend. Furthermore, those that have centralized management of telecom spend are more likely to know their true network costs. The end result is that that the majority of companies that centralize spend indicated that they have attained TEM savings of greater than $1,000,000 and overall, are more satisfied with their TEM solution.
It is not guaranteed that all TEM solutions will accurately and efficiently process telecom billing data, that is why companies need to 'go-the-extra- mile' to ensure that the fundamentals of their selected TEM solution is continually adhering to best practices in processing that data. The ability to load complex billing data, from multiple sources and formats into the application is the zenith of a TEM solution. If the solution cannot process data, it is like entering a marathon with pair of worn out running shoes, which eventually, will lead to pain. According to the TEM survey, if this core competency is lacking, dissatisfaction is the end result.
There is no doubt that centralized management of telecom spend and receiving data electronically are integral parts in choosing a TEM solution. Having these fundamentals in place sets the stage for realizing the benefits of a total TEM solution that includes provisioning, inventory, invoice processing, and advanced analytics. Just like undergoing the proper training for a marathon, maintaining strong fundamentals regarding your TEM solution significantly increases the likelihood of success. It establishes a firm foundation for further process improvements that will have a direct impact on bottom line performance for your organization and will help you reach your TEM finish line.
About the Author
by Nina Wales
Training for a marathon requires athletes to diligently condition their bodies to run 26.2 miles, which can be incredibly intimidating for some individuals. It begins with increasing your stamina and improving your efficiency by planning runs where your distance gradually increases in intervals, until you can reach your optimal goal: completing the marathon. By focusing on your stamina and efficiency, you are less likely to suffer injuries, burn out from fatigue and fail to complete the race.
Although not physically intimidating, choosing a TEM solution can be a straining and confusing process that requires similar discipline. Since Gartner coined the term telecom expense management (TEM) a few years ago, TEM solutions have gained considerable momentum, along with considerable complexity. This added complexity has led to growing frustrations in the marketplace because the fundamentals of a TEM solution are often being overlooked. Much like stamina and efficiency - the fundamental pillars of running a marathon - centralizing the management of telecom spend and utilizing electronic billing data are the distinguishing factors of a successful TEM solution and recent research supports this statement.
The findings from the 2008 Telecom Expense Management Benchmark Survey, conducted by Edge Research, revealed that successful companies using TEM adhere to the most fundamental aspect: centralization. The survey results were gathered from over 400 organizations, which showed that among those satisfied with their organization's TEM solution, 88% centrally managed telecom spend. Furthermore, those that have centralized management of telecom spend are more likely to know their true network costs. The end result is that that the majority of companies that centralize spend indicated that they have attained TEM savings of greater than $1,000,000 and overall, are more satisfied with their TEM solution.
It is not guaranteed that all TEM solutions will accurately and efficiently process telecom billing data, that is why companies need to 'go-the-extra- mile' to ensure that the fundamentals of their selected TEM solution is continually adhering to best practices in processing that data. The ability to load complex billing data, from multiple sources and formats into the application is the zenith of a TEM solution. If the solution cannot process data, it is like entering a marathon with pair of worn out running shoes, which eventually, will lead to pain. According to the TEM survey, if this core competency is lacking, dissatisfaction is the end result.
There is no doubt that centralized management of telecom spend and receiving data electronically are integral parts in choosing a TEM solution. Having these fundamentals in place sets the stage for realizing the benefits of a total TEM solution that includes provisioning, inventory, invoice processing, and advanced analytics. Just like undergoing the proper training for a marathon, maintaining strong fundamentals regarding your TEM solution significantly increases the likelihood of success. It establishes a firm foundation for further process improvements that will have a direct impact on bottom line performance for your organization and will help you reach your TEM finish line.
About the Author
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