Insight

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ATUG 2005
Procurement Strategies New Tools Tactics
Mark A Smith Executive Chairman InsightAP Pty Ltd
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The Top 5 Complaints

• Were paying for services we dont have
• We dont understand what services we do have
• Were not getting the discounts we negotiated
• We cant understand the timing of billing for new
  and disconnected services
• Our bill is just too complex to understand

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Mark Smith

• 15 Years of Telecommunications Experience
• Built Businesses around
• the introduction of GSM
• the delivery, installation and management of
  telecommunications infrastructure and systems
• deregulation of the industry and reseller
  marketplace
• telecommunications consultancy
• introduction of voice and video over IP networks
• new IP carrier
• voice data and IP billing systems

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Insight Asia Pacific

• 1000s of Man Days over 5 years in Active
  Management of Telecommunications Management and
  Procurement in Large Australian Organisations
• Including
• Financial Institutions
• Carriers
• Logistics
• Major Retail
• Government Enterprise
• Food and Beverage

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Traditional Procurement Priorities

• Price
• Contract Terms,
• Service Level Agreements

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Issues

• 7 to 12 of telecom service charges are in
  error.
• Up to 85 of telecom bills are simply paid in
  full.
• Aberdeen Research June 2004

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Whats Real

• Issues with Telecommunications Services
• Companies charged for Disconnected Lines
• Incorrect Discounts applied
• Incorrect Pricing and/or Wrong Services
• Companies need to be in a better position for
  contract negotiation
• Billing is complex

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Procurement Strategies

• Outsource
• Independent Managed Service Provider
• Vendor Managed Service Provider
• Fixed Priced Provider
• Contractor/Consultant
• Bill Buster
• In-source
• Multi-source

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Industry Examples

• 3 Large Finance Institutions in Australia
• One of them Outsourced to an Independent Managed
  Service Provider
• One of them Outsourced to the largest vendor
• One of them entered into global supply agreement
  with Vendor and drove an internal control strategy

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Leveraging Technology
SOLUTIONS
Companies that leveraged technology to manage
telecom costs realized average savings of
26.1 Aberdeen Research June 2004
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Customer Testimony
A top 10 Aust public company says INSIGHT has
delivered

• Cost savings generated by elimination of
  cumbersome tasks
• Cost savings generated for business units as a
  result of review of services
• Automation leading to increased productivity
• A better handle of our telecommunication charges
• In a better position for contract negotiation

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Carrier Reference

• the implementation of Insight produced
• the following key benefits
• Billing has been removed from being a key
  challenge for both parties, putting a halt to the
  many man-hours wasted on both sides resolving
  billing matters
• It has delivered to the carrier and me
  personally, a more accurate and concise view of
  the location and utilisation of all services
• Clarity of service utilisation has enabled
  rationalisation and consolidation of the carriers
  infrastructure and
• By getting billing off the table, the
  relationship is more convivial and I am able to
  focus on my role of managing and delivering
  business value.
• Account Director

INSIGHTASIA PACIFIC
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Fills the systems gap
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INSIGHT

• An advanced suite of workflow processes and
  software tools that enable organisations to
  effectively manage their telecommunications
  services inventory and assets.
• The focus of INSIGHT is to enable suppliers and
  customers to work together for great service
  delivery outcomes.

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INSIGHT OperationalProcess Lifecycle
Service Management
Bill Reporting
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New Outcomes

• Control
• Supplier Governance
• Managed Cost

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Alternate Priorities

• SPOT - Single Point of Truth
• ACCOUNTABILITY and Control
• BRP Business Rules Processing
• AUTOMATED AUDIT
• WEB Enabled ITT Activity Based Costing
• PUSH OUT intelligent information driving
  accountability for services

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What INSIGHTcan do for you

• Enable greater control
• Centralised data repository management
  processes
• Clear understanding of complex billing data
• Customer, not supplier, view of the bill
• Allow both cost management allocation
• Supports the user pays model - cost allocation
• Eliminate unnecessary costs
• Allow you to focus on making the right purchasing
  decisions

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Solution

• Our experience has shown that our clients may
  achieve savings of between 20 and 30 percent by
  managing and controlling their telecommunications
  environment by
• Centralising control
• Leveraging technology,
• Standardising processes and
• strategic procurement techniques.

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Questions
Mark A Smith Executive Chairman InsightAP Pty
Ltd mark.smith_at_insightap.com.au
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INSIGHT
asia pacific