2. Telecom Expense Management (TEM)

3. The Challenge “The average Fortune 500 company spends about $116 million on telecommunications services each year.” “On average, 8 to 12 percent of telecom expenses are in error.” “The cost of telecommunications now ranks in the top five expenses for most companies, up from about No. 10 a decade ago.” $116m spend x 10% errors = $11.6m LOST each year

4. But That Is Only Part Of It … Gain overall visibility into, and control over, telecom spend Manage explosive growth of wireless devices Properly allocate telecom costs Support business growth and M&A Reduce or redeploy staff Optimize network/wireless price and performance Plan network strategy and justify decisions to management Provision network conversions and new assets Effectively negotiate contracts

5. Curing the Problem Traditional approaches treat the symptoms Manual/outsourced invoice auditing – often done on a “point” basis Spreadsheets Static inventory database or manual updates To cure the problem, you need… Automated Telecom Expense Management (TEM) Across the telecom asset lifecycle For every telecom asset Wireless Data Voice

6. Monitor, Analyze, Plan, Optimize Internal Charge- Backs/Cost Allocation Automating the Telecom Lifecycle Automatic Invoice Processing & Auditing Validation With Assets/Inventory In Use Order/Procure Workflow Tracks/Alerts on Progress and Issues Processes Orders & Service Requests Provisions Transmits Invoices Asset Database/Inventory Automatically Updated Telcos Enterprise Validation Against Contracts (Rates, Service Level Agreements, MARC, etc.)

7. Gaining Visibility & Control Summary Dashboards for Visibility -‘At a Glance’ visibility into Key Performance Indicators - Alerts users to potential issues First Click: Access Detailed Info - Provides more information to diagnose potential problem areas Second Click: Take Control - Access to the system where data can be input and action taken

8. Results Base system: – 7%-40% of processed telecom spend saved annually – 50% labor reduction – 3-12 month ROI Additional services: – Sourcing: 25%-50% of renegotiated telecom spend saved – Auditing: 10-20% of processed spend saved

9. Results ExamplesCost Savings Global 500 Food Service Provider Reduced wireless costs by 25%, over $1 mil/year Fortune 1000 Manufacturer Reduced telecom costs by 7%/year, $2.5 mil/year Over $15 million saved to-date Redeployed 80% of order and invoice processing staff Fortune 500 Hospitality Company Identified and helped to plan a VPN conversion resulting in $16mil/year in cost savings

10. Tips to Save Millions Tip #1: Consolidate Centralize all billing to a TEM team for processing and approvals Consolidate the number of vendor invoices Savings can be significant by reducing amount of checks produced Tip #2: Validate Match every expense to a VALID employee or location Go after low hanging fruit first: Validate most expensive circuits, costs per minute, etc. Remove known waived charges (COC, ACF, Install) Analyze long and expensive calls

11. Tip #3: Negotiate Negotiate better contracts by knowing what you have Establish company procurement people in the contract Savings can be dramatic by reducing non-authorized purchases Tip #4: Optimize Automate as much of the lower value activities as possible For wireless devices, make voice plan optimization Priority #1 Communicate the costs of 411 on wireless devices Emphasize free options such as 1-800-GOOG-411 Tips to Save Millions

12. John Shea Chief Marketing Officer, Rivermine john.shea@rivermine.com 703.995.6014 Thank You