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:

  1. Reduction of Technology and Telecom Service Expense
  2. Labor Efficiencies
  3. Risk Reduction/Security
  4. Indirect Savings

* Categories interact! Savings in one category may reduce savings in other categories.

Reduction of Technology & Telecom Service ExpensePotential Savings
A. Refunds and credits for billing errors.
1. Audit and recover for billing overcharges2% – 15% of expenses
2. MACD reconciliation and recovery for billing errors.
B. Cost avoidance reduction of future spending.
1. Sourcing: better contracts and rates5% – 25%
2. Inventory management5% – 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 avoidanceDepends on MARC
4. Accountability chargeback visibility, reporting on usage5% – 15% of expenses
5. Elimination of late payment penalties and service disruption for late, non-payment or lost bills0.5% – 2% of expenses subject to penalties
Labor EfficienciesPotential Savings
A. Automation of manual procurement processesFTE reallocation or FTE cost – BPO cost
B. Automation of inventory managementFTE reallocation
C. Consolidation of invoices to reduce the volume of payments.
D. Automation of invoice management and validation.
E. Automation of usage chargeback and reportingFTE reallocation
F. Help desk supportFTE reallocation or FTE cost – BPO cost
a. Grooming to higher capacity lower cost services.
Risk ReductionPotential 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 SavingsPotential Savings
A. Consistent application of procurement policies; lock or limit contacts ensure only authorized personnel able to procure carrier services1% – 5% of expenses
B. Better information for improved decisionsBenefits from better decisions
C. Free working capitalCost of funds x savings
D. Redirect staff to focus on areas where they add more valueIncome or value from new activities or staff costs
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