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Keep up to date with our news and thoughts about Telecom Expense Management, Contract Value Intelligence and Spend Analytics.

Posts about Contract Value Intelligence:

Category Management Analytics drives Business Digital Transformation.

Category Management Analytics drives Business Digital Transformation.

Imagine this: your team has found itself over budget after a challenging year of technology migrations and changing suppliers. You and your team need to find where the problems lie but no-one has enough spending analytics associated to your contract lifecycle management to fully understand the actual services being delivered within your technology and telecom supplier contracts in order to decipher the mess of documents and clearly articulate what your additional value and future cost reduction recommendation could be extracted from your suppliers. 

You might have experienced this exact scenario yourself recently. It’s a common experience that has plenty of advice, from contract lifecycle management tips of how to find the most useful information through to hiring an outside cost optimisation consultant to do the work for you. 

The thing is, manual approaches to this problem are prone to human-error, and even for the perfect human investigator, there’s a high chance that not every issue is found. 

Technology and telecom contracts cover a huge number of different services, which can be configured in different ways, and for every different configuration carries different contractual terms and pricing considerations. 

We explore the challenges to accurately deciphering technology contracts against their invoices, and how category management analytic solutions can handle all of the contractual landscape for that category and simplify the process for your procurement teams.

Digital Transformation: How to optimise telecom cost recovery

Digital Transformation: How to optimise telecom cost recovery

Many businesses are turned away from undertaking a telecom audit and seeking cost savings in their more difficult and complex contracts due to the costs and prohibitive factors involved associated to traditional audit processes. Complex contracts, like those in the telecom industry, cover hundreds of different products that can be configured in multiple ways.

With telecom services being an essential utility for businesses, they have a long history of use and many changes have occurred over the years and this has given rise to the telecom expense management industry.

Because of growing enterprise technology and telecom complexity, conducting a full analysis of telecom contracts requires specialist capabilities, cost benchmarking and real-time business intelligence analytics. According to a recent report by Aruba Networks and Microsoft "In 2018, 57% of businesses adopted IoT in some way. By 2022, the figure could rise to 94%"

This makes having a deep domain knowledge of how complex technology telecom contracts are structured and an understanding of how to track their value implementation across all business operations is critical.

Specialists tasked with this analysis are often not a part of the business itself and are not aware of historical changes and supplier relationships, Typically due to the high level of invoice inaccuracies, predictive modelling and predictive analytics is near on impossible for many companies in relation to technology and telecoms spend.

Why is Technology Expense Management complex?

Why is Technology Expense Management complex?

Enterprise organisations have been striving to adopt wide ranging emerging technologies including technology expense management providers and telecom expense management software throughout recent history, meanwhile contract value management, contract value intelligence and enterprise spend analysis practices have also been gaining momentum.

However, a growing problem exists, the complexity for enterprises to efficiently manage technology expenses and gain insights on all technology spend increases every day.

Mobile networks have evolved, the internet has become part of our every day life, and IoT technology has become increasingly prominent among businesses. The widespread arrival of 5G is now imminent, which alongside cloud computing will enable the sophisticated IoT networks of the future.

All of this amounts to an even more complex technology service landscape than we currently have, and most enterprises are already failing to achieve optimal value from their technology expense management software and the expensive services they pay for.

Contract Value Intelligence: Optimise your Telecom contract savings

Contract Value Intelligence: Optimise your Telecom contract savings

As a buyer, how do you prevent Value Leakage in your complex Telecom contracts? Simple, Spend Analytics! 

Telecom is increasingly a prominent feature in enterprise budgets. Annual spend on Telecom equates to an average 1-2% of enterprise revenue. Therefore, significant savings and efficiencies found in Telecom will make a significant impact on the bottom line. To beat bad data, information silos and increasing value leakage, enterprises must focus on spend analytics.

Today, a fragmented information environment characterises Telecom category management for buyers:

  • Contracts and invoices hold tens of thousands of line items containing references to different definitions.
  • Definitions made up of implied rules defined somewhere else across the contract or standard supplier T&Cs.
  • Implied rules are tangled in an undefined web to other sets of definitions.
  • ‘Shifting sands’ of contract variations and regular updates of standard supplier T&Cs.

As a result, Telecom Category Management has no standardisation and will mean something different depending on who you ask. Eliminating value leakage is not seen as a routine operational activity today because there has been no feasible way to systemise operations. When enterprises perform related activities, they are performed manually and only done at significantly timed events due to the high time, effort, and specialisation required to complete the work. These significantly timed events typically are: 

  • During the RFQ / negotiation stage, when price benchmarking is completed to give the buyer an indication of what they should be paying.
  •  Resolving a longstanding commercial issue, when billing issues have compounded to the point that extraordinary intervention is required to get things under control.