1. Inventory and Optimize the Telecom Environment Practical IT Research that Drives Measurable Results

2. Introduction Multi-site enterprises are commonly managing environments with different types of voice and data connectivity, often sourced from multiple service providers. Accurately assessing consolidation opportunities and effectively planning out connectivity options is difficult without a clear view of the existing mix of telecom services by location. This solution set will help IT leaders perform a full telecom inventory that can be used to optimize the ongoing delivery of voice and data services for the enterprise.

3. Executive Summary Organizations of all sizes will benefit from performing a telecom inventory. The activity offers benefits across multiple areas, including asset management, contract negotiation, and infrastructure capacity planning. Given a lack of staff resources and financial/billing expertise, IT organizations should evaluate third party consultants who can provide inventory and expense management services on a contingency basis. Capture all information about telecom assets and services in a single repository that can be easily related to invoices and contracts and provide decision makers with a consolidated view of the environment. Leverage the completed inventory to identify spending aberrations and consolidation opportunities and drive significant cost savings for the organization.

4. Identify Drivers Identify the key business drivers for performing a telecom inventory and learn where to begin your efforts. This section will help you: Communicate the business need for keeping a current and accurate telecom inventory. Determine the appropriate inventory scope and frequency for the organization. Identify the key activities and tools that will be required to support inventory efforts. Identify the key business drivers for performing a telecom inventory and learn where to begin your efforts. This section will help you: Communicate the business need for keeping a current and accurate telecom inventory. Determine the appropriate inventory scope and frequency for the organization. Identify the key activities and tools that will be required to support inventory efforts. Next Section in Brief 1 Perform an Inventory Optimize Expenses

5. Consider the wide ranging benefits of a telecom inventory and decide whether to make it more than a hobby Save money. In developing a formal inventory of assets and contracts, the organization is in a better position to consolidate service contracts, eliminate unused devices and bandwidth, and identify billing errors. Improve performance. Hardware and connectivity issues and risks are much easier for helpdesk/IT staff to address when a comprehensive and up-to-date inventory is available. Track and account for individual and location-based assets. Devices and services that are attached to individuals or locations can be difficult to track. Maintaining a detailed record allows devices to be recovered and services to be cancelled when an employee is terminated or a site is abandoned. Recouped funds for service billing errorsRecouped funds for service billing errorsRecouped funds for service billing errorsRecouped funds for service billing errors 62% Consolidated total number of providers Consolidated total number of providers Consolidated total number of providers Consolidated total number of providers 68% Reduced surplus voice/data connectivityReduced surplus voice/data connectivityReduced surplus voice/data connectivityReduced surplus voice/data connectivity 70% Diagnosed and resolved issues more successfullyDiagnosed and resolved issues more successfullyDiagnosed and resolved issues more successfullyDiagnosed and resolved issues more successfully 70% Mobile devices better tracked to individualsMobile devices better tracked to individualsMobile devices better tracked to individualsMobile devices better tracked to individuals 73% Equipment/service costs managed more effectivelyEquipment/service costs managed more effectivelyEquipment/service costs managed more effectivelyEquipment/service costs managed more effectively 73% Negotiated better contracts with providersNegotiated better contracts with providersNegotiated better contracts with providersNegotiated better contracts with providers 79% Large organizations have resources dedicated to this process, but for smaller organizations it is critical to assess whether the benefits outweigh the losses of pulling resources from other projects Source: Info-Tech Research Group N=78 Improved contracts, cost management & mobile device tracking top the list of telecom inventory benefits

6. Take the opportunity that a major project or impending contract negotiation presents to make the case for a telecom inventory A network/telecom inventory is often not a project that can be rationalized solely to optimize the environment, but it is an absolute must before any large scale change. Contract negotiations and major infrastructure changes are significant drivers for developing a formal inventory Know where you stand before you move forward. Before any big change, it is paramount to have a solid understanding of your current environment. Whether changing service providers, upgrading technology, or transferring ownership, an opportunity exists to consolidate contracts and retire unused assets or services. Seize the opportunity. A large scale change can be the perfect chance to develop a formal and repeatable process to keep the inventory up-to-date. Once an inventory has been developed, subsequent updates should take considerably less time to complete. If you let this opportunity pass you by, it may be years before you can justify devoting the time and resources to the project. An inventory should be completed before a project begins, not after… Completing an inventory after the fact definitely takes more time and resources. It also means months of unnecessary expense. -TEM Consultant “ ” Prepare for contract negotiations Plan for major infrastructure changes Deal with a recent/pending merger or acquisition Identify underused equipment/services Discover network performance issues Meet compliance requirements

7. It’s not about size, it’s about complexity; organizations of all sizes can benefit from a formal inventory A distributed environment is much harder to monitor and track, making a formal inventory critical for organizations with multiple sites Almost 80% of organizations completing a formal inventory had three or more sites, despite the fact that almost half are considered small enterprises. 100% 22% 33% 26% 19% 44% 35% 20% Small Enterprise (1-10 IT Staff) Medium Enterprise (11-49 IT Staff) Large Enterpise (50+ IT Staff) 3-10 Sites 1-2 Sites 11-49 Sites 50+ Sites Size Number of Sites If I have one big factory, and I’ve got network all within that factory, then as I get bigger within the location it’s just a question of scale. When you add properties, it creates another dimension of ‘you’ve got more of these.’ So it makes it more complicated to do. It’s much more difficult to manage a distributed environment than a centralized one. -CIO, Real Estate “ ” More sites means more complexity. The more sites you have, the more important it is to have an accurate and current inventory. When assets and contracts are handled independently at different sites, money is wasted through missed consolidation savings. Regardless of size, all companies should have an inventory as a general practice. If you can’t list off your inventory in your head, you need a formal inventory. Period. Source: Info-Tech Research Group N=63

8. Leverage the inventory to identify key differences, incompatibilities, and interconnectivity requirements between standards, policies, and technologies in order to assess gaps and integration requirements. Understand the key situations that warrant a formal telecom inventory to maximize future payoff A network & telecom inventory is the most important step in preparing for and implementing an upgrade to VoIP. Replacement of outdated equipment is the most common driver for this initiative. Understanding what equipment is out of date is crucial because IP Telephony is typically implemented in phases. Considerable savings can be realized by delaying upgrades in key areas. Establish and validate infrastructure support for VoIP before beginning the actual implementation. With a firm grasp of the current state of the environment, you won’t miss cost-saving opportunities to delay upgrades to some aspects of the infrastructure. Upgrade to VoIP Action Situation To ensure success for IT in the union, be proactive and assemble a detailed telecom inventory to identify gaps between systems as early as possible. Before the launch of a merger or acquisition, IT will need to compare applications and infrastructure at both organizations. Following the launch, IT will focus on opportunities for consolidation, not only of physical assets, but of contracts as well. Recent or Pending Merger Action Situation

9. While the inventory only represents a few degrees in the formal asset management circle, you can’t manage what you don’t track. No matter how many degrees you plan to traverse, the inventory is the first step, so get moving. Understand the key situations that warrant a formal telecom inventory to maximize future payoff (cont’d) A telecom inventory is the first step in the process of managing and optimizing telecom expenses. Over 90% of organizations identify surplus voice/data services as a result of a site-by-site telecom inventory. Decentralized procurement and lack of site standards are the usual root causes. By completing an accurate inventory, the organization is in a position to match charges for individual circuits to monthly invoices, and identify charges for those that should have been cancelled. Mismatches between contract rates and invoices, and charges for unused or underutilized equipment or services may also be discovered through this process. Cost Cutting/Expense Mgmt Action Situation A comprehensive inventory is the first step to successful asset management. If you tab and inventory your PCs, you’d better do the same for your telecom environment. Routers and switches will not be the first devices to come to mind when beginning an asset management initiative, but almost three quarters of organizations that performed a telecom inventory reported that their network/telecom equipment and service costs are managed more effectively as a result. Asset Management Action Situation

10. Assemble a formal project committee when the inventory requires combined efforts across many sites or departments Poor internal communications structurePoor internal communications structurePoor internal communications structurePoor internal communications structure 51% 64% Lack of software tools 31% 73% Assets are managed/procured at multiple depts/sitesAssets are managed/procured at multiple depts/sitesAssets are managed/procured at multiple depts/sitesAssets are managed/procured at multiple depts/sites 47% 60% No Committee Committee Among organizations that completed a successful inventory initiative, a requirement to coordinate among multiple sites and a lack of automated tools appeared to drive implementation of a formal committee The formal inventory development committee should include: Project Manager. Site Representatives. (from each site where devices are managed/procured) The mandate of the committee should be to: 1.Provide strategic leadership for the network/telecom inventory operations through the alignment of IT and business objectives (especially for mergers/acquisitions). 2.Facilitate coordination of efforts across multiple departments and sites to promote collaborative planning so that the inventory is completed in a timely manner and consolidation opportunities are fully realized. 3.Prioritize new IT investment initiatives (e.g. equipment upgrades and bandwidth increases/decreases). 4.Resolve resource allocation issues (FTEs for project management).

11. Inventory faster. Of organizations that had a successful telecom inventory initiative, those that solicited third party consultants inventoried a median of 4.2 sites/month compared to 2 sites/month for those using in-house experience only. Jump start project management. Consultants have a tried and true, repeatable process in place that they use with multiple clients. Their optimized process means in- house resources are not wasted identifying scope. Facilitate multi-site communications. Many organizations struggle with the coordination of efforts across multiple sites or departments. Consultants have conducted this process repeatedly and can facilitate this aspect of the project. Avoid headaches. Consultants have experience dealing with Telco venders and will be up to speed on current processes, procedures, and guidelines, and they often have extensive experience in contract disputes and billing discrepancies. Get help! Third party consultants complete the inventory process in half the time with minimal risk Often consultant contracts can be built around realized savings, making the investment low risk ConsultantIn House Sites Inventoried/Month 4.2 months/site 2.0 months/site -52% Consultants Inventory in Half the Time

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