Open Source Solution to Amway TEM?
December 19, 2008
I recently received an email question about the skepticism and resistance to Telecom Expense Management (TEM) services, especially software solutions. A reader wrote:
I’m writing to get your input on why TEM (Telecom Expense Management) companies seem, to me any way, to have sort of a “Multi-Level Marketing” feel to them. The reason I ask is that we are a small management consulting firm that specializes in business development, sales, marketing and profitability consulting for the A/E/C industry. We have one client with 2,500+ wireless units who we matched up with some friends, (former co-workers…many moons ago) who have their own wireless consulting company that have written their own rate plan optimization program for Sprint/Nextel. (They are former Sprint/Nextel execs.) Anyway, they saved our client $326,000 in 12 months so now we both look like heroes.
Being a big believer in networking and since part of what we do is help our clients increase profitability, we have recommended these guys to other companies in our industry but seem to get ‘pushback’ as if I was trying to get the to join Amway or something. (Apologies if you are an Amway rep)
Telecom Expense Management or TEM can mean a lot of different things to different people. Depending upon the size of an enterprise, a TEM process can range from simple spreadsheet tools to a software platform to an outsourced provider. Some stats I have seen claim that 20% of most telecom bills to enterprises have errors. Given that no billing standards exist, short of ILEC bonding, the TEM industry is highly fragmented – lots of custom software. Software is my life’s nemesis. I often get asked after 20+ years in and around telecom network software applications, why I started AFS. My answer was simple: once you install the fiber optic sheath, add the laser and shoot the OTDR — it works or it does not. No mystery bugs, crashes or patches. Believe me when I say software is hell on earth, I am talking first hand experience. I could go on about this … I am so tempted.
Anyhow, the Amway-like pushback you might be getting has more to do with the human condition than anything else. What I mean by this is any individual in an enterprise dealing with telecom expenses, especially if he or she has grown an in-house solution, will be on the defensive. The economy is slowing, and someone or something better and/or more efficient is a viable threat to a fiefdom. Perhaps there is a need to go higher – like to the CFO – if the referral has been to whoever may be threatened. The savings you cite are impressive and a good testimonial — I would ask the customer who saved this money to be proactive in assisting with the marketing.
The problem you are facing is there are a lot of scammers out there when it comes to software solutions, given the low barrier to entry. Everyone is an expert, and given the fragmented aspects of the segment, no one looks different.
My suggestion, if you want to knock the socks off the TEM world, is have your former co-workers contact the Open Source Community and make its software available as an Open Source TEM platform. Literally over night, thousands of software types will add extensions, bolt-ons, etc., in driving a technical consolidation of a fragmented industry. (Boy, did I just make some enemies).
In the long run, the need for TEM solutions will wane as flat rate services over big IP pipes take hold, thus eliminating the aspects of complex usage billing. As this happens, a device and IP address inventory system will become more important than an integrated TEM software platform. Full disclosure…I am a local fiber bigot.
Go Open Source – change the telecom world!
What are your issues and comments regarding Telecom Expense Management? Shoot Dave an email or post your thoughts below.
Written by Dave Rusin - Telecom Executive
Posted by admin | Filed Under Telecom expense management, Telecommunications industry, Trends + telecommunications, Trends in telecommunications
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2 Responses to “Open Source Solution to Amway TEM?”
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Two thoughts here:
1) Great idea! One I’ve thought about for many years. In fact we would be interested in funding the project to develop a free open source TEM platform. In our view it’s not necessarily the software that’s the core asset, although obviously needed, what’s more important is the standardization of processes like invoice validation and auditing, as well as the inventorying of voice/data circuits, mobile devices, laptops etc. This is true whether you use Excel or some high dollar TEM software. Heck more telecom managers use Excel for TEM than any other software program.
Let’s get Open Source TEM going. Please contact me if you’d be interested in developing it.
2) Given that an average corporate wireless user runs $55 and the company cited above has 2,500 devices that would be roughly $1.7 million in annual spend. Saving them $326k would be about 20%. That would be about the industry average for a wireless TEM implementation.
Are they saying they’re having difficulty introducing the wireless TEM application to existing clients, warm leads or flat out cold calls? Getting an appointment with any corporate executive is challenging, but trying to explain (sell) TEM without some sort of warm relationship can sometimes elicit the same response as someone selling you life insurance at a cocktail party.
If it’s with warm relationships then perhaps it’s the upfront cost. One way we’ve overcome resistance is by providing a positive ROI or you don’t pay model. With that type of confidence you can generally at least get folks to give you a try. That way they have an upside, by saving the company money, and it eliminates the down side of being the champion of a costly failed initiative.
Aren’t there any such solutions already? I’m scouring the internet for anything open source that would run in a telco, but I’m not getting many leads. I don’t know if it would be appropriate to share brand names/company names here, so if you need further info drop me an email: islamomt [at] gmx.net. Similarly, if you have anything to share, please don’t hesitate.