Chief Financial Officers (CFOs) and Chief Information Officers need to be concerned with IT Financial Management (ITFM) and telecommunications expense management because they are strategic. IT and Telecommunications are not just one of the top five line item expenses for nearly every organization, technology and communications is also critical to empowering workers.
CFOs and CIOs should consider IT and telecommunications as a board room topic. There is a need to balance cost management with the strategic need of maintaining a reliable efficient network.
ITFM, TEM, WEM and/or EMM/MMS programs produce benefits in four main areas:
- Labor efficiencies
- Risk reduction
- Reduction of telecom service expense
- Indirect savings
Cost management is important because Section 404 of the Sarbanes-Oxley (SOX) Act requires that CEOs and CFOs of public companies certify the adequacy of their internal controls for recognition of revenue and expenses. ITFM and TEM automate SOX reporting and storing of financial data for telecom expenses. CFOs can provide assurances to the board and share holders that there are rigorous controls in place, for one of the enterprise’s top line-item expenses.
In addition, CFOs and CIOs care about telecommunications because it represents the next step in a transformative era. With the pandemic giving rise to Work from Home (WFM) there are now more mobile users than computer users tethered to desks. Corporate profits and opportunities for innovation are multiplying as more organizations harness the power of remote work and mobile technology. The convergence of voice and data networks was big, but the convergence of mobile broadband networks, cloud computing, smarter devices, pervasive connectivity, the ability to program intelligence around us with the Internet of Things (IoT) is going to be even bigger as it dramatically change every industry.
This revolution in telecommunications needs to be managed strategically by CFOs and CIOs. These executives can serve as the catalyst in launching formal initiatives to manage technology and the expenses associated with it. CFOs and CIOs are in a position to understand the challenges of telecommunications expense management and benefit from implementing solutions. CFOs are able to raise their stature in the organization through improved accountability and cost savings. In turn, CIOs are able to reap the benefits from shifting wasteful uncontrolled spending on network services to free funds for projects that drive strategic value and competitive advantage.