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Justification
TEM MMS, WEM, and EMM programs require a compelling business case to secure ongoing support and funding.
Building an Effective Business Case
An effective business case or justification helps ensure the TEM or MMS program has ongoing support and secure funding. The justification falls into four main categories:
- Reduction of Technology and Telecom Service Expense
- Labor Efficiencies
- Risk Reduction/Security
- Indirect Savings
* Categories interact! Savings in one category may reduce savings in other categories.
| Reduction of Technology & Telecom Service Expense | Potential Savings |
|---|---|
| A. Refunds and credits for billing errors | . |
| 1. Audit and recover for billing overcharges | 2% – 15% of expenses |
| 2. MACD reconciliation and recovery for billing errors | . |
| B. Cost avoidance reduction of future spending | . |
| 1. Sourcing: better contracts and rates | 5% – 25% |
| 2. Inventory management | 5% – 15% of expenses |
| a. Grooming to higher capacity lower cost services | . |
| b. Elimination of unused services and devices | . |
| 3. Optimization | . |
| a. Wireless service optimization match usage to service plans; voice and or data; pooling | . |
| b. Identification of services with no contracts, better rates through quote requests and negotiation | . |
| c. Minimum Annual Revenue Commitment (MARC) penalty avoidance | Depends on MARC |
| 4. Accountability chargeback visibility, reporting on usage | 5% – 15% of expenses |
| 5. Elimination of late payment penalties and service disruption for late, non-payment or lost bills | 0.5% – 2% of expenses subject to penalties |
| Labor Efficiencies | Potential Savings |
|---|---|
| A. Automation of manual procurement processes | FTE reallocation or FTE cost – BPO cost |
| B. Automation of inventory management | FTE reallocation |
| C. Consolidation of invoices to reduce the volume of payments | . |
| D. Automation of invoice management and validation | . |
| E. Automation of usage chargeback and reporting | FTE reallocation |
| F. Help desk support | FTE reallocation or FTE cost – BPO cost |
| a. Grooming to higher capacity lower cost services | . |
| Risk Reduction | Potential Savings |
|---|---|
| A. Operational: use TEM to insure redundancy of carriers for critical sites | “Priceless” |
| B. Security: ensure adherence to mobile policy; verify data on mobile devices is secure; wipe for lost devices | “Priceless” |
| C. Legal: Compliance to each country/region’s regulations | “Priceless” |
| D. Cost: avoid bill shock; unplanned budget expenses | “Priceless” |
| Indirect Savings | Potential Savings |
|---|---|
| A. Consistent application of procurement policies; lock or limit contacts ensure only authorized personnel able to procure carrier services | 1% – 5% of expenses |
| B. Better information for improved decisions | Benefits from better decisions |
| C. Free working capital | Cost of funds x savings |
| D. Redirect staff to focus on areas where they add more value | Income or value from new activities or staff costs |