Training for a marathon requires athletes to diligently condition their bodies to run 26.2 miles, which can be incredibly intimidating for some individuals. It begins with increasing your stamina and improving your efficiency by planning runs where your distance gradually increases in intervals, until you can reach your optimal goal: completing the marathon. By focusing on your stamina and efficiency, you are less likely to suffer injuries, burn out from fatigue and fail to complete the race.

Although not physically intimidating, choosing a TEM solution can be a straining and confusing process that requires similar discipline. Since Gartner coined the term telecom expense management (TEM) a few years ago, TEM solutions have gained considerable momentum, along with considerable complexity. This added complexity has led to growing frustrations in the marketplace because the fundamentals of a TEM solution are often being overlooked. Much like stamina and efficiency – the fundamental pillars of running a marathon – centralizing the management of telecom spend and utilizing electronic billing data are the distinguishing factors of a successful TEM solution and recent research supports this statement.

The findings from the 2008 Telecom Expense Management Benchmark Survey, conducted by Edge Research, revealed that successful companies using TEM adhere to the most fundamental aspect: centralization. The survey results were gathered from over 400 organizations, which showed that among those satisfied with their organization’s TEM solution, 88% centrally managed telecom spend. Furthermore, those that have centralized management of telecom spend are more likely to know their true network costs. The end result is that that the majority of companies that centralize spend indicated that they have attained TEM savings of greater than $1,000,000 and overall, are more satisfied with their TEM solution.

It is not guaranteed that all TEM solutions will accurately and efficiently process telecom billing data, that is why companies need to ‘go-the-extra- mile’ to ensure that the fundamentals of their selected TEM solution is continually adhering to best practices in processing that data. The ability to load complex billing data, from multiple sources and formats into the application is the zenith of a TEM solution. If the solution cannot process data, it is like entering a marathon with pair of worn out running shoes, which eventually, will lead to pain. According to the TEM survey, if this core competency is lacking, dissatisfaction is the end result.

There is no doubt that centralized management of telecom spend and receiving data electronically are integral parts in choosing a TEM solution. Having these fundamentals in place sets the stage for realizing the benefits of a total TEM solution that includes provisioning, inventory, invoice processing, and advanced analytics. Just like undergoing the proper training for a marathon, maintaining strong fundamentals regarding your TEM solution significantly increases the likelihood of success. It establishes a firm foundation for further process improvements that will have a direct impact on bottom line performance for your organization and will help you reach your TEM finish line.

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