SourceConnectNetwork audit & cost reduction program overview

Trademark

Telecom Expense Management

We have recently completed an audit at another telecoms company:

Our audit = 24% reduction in their 3rd party Access Circuit expenditure

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That Telecoms company now knows:

- What 3rd party network they have- When their inventory is up for renewal- Where that network is- What they spend by supplier- What each customer has by circuit- The performance of their 3rd party network- What SLAs credits that owed- Confirmation the inventory is billing correctly

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Existing Customers

Sample Customers:

Top 5 global bank

• Manages the entire telecoms network; data, voice and trader lines

• > 200 global users

• > $300m annual spend managed

• 36,000 network elements and their inter-relationship’s managed

• in place for over 8 years

Low latency trading company

• Spends $12m p.a. on telecoms across 120 high-speed circuits

• Secured SLA breach credits of >$250k in 6 months that had previously been missed

Medium sized telecoms company

• 24% reduction in their third party accessible expenditure in < 6 months

• Purchased software on back of audit

Do you have lack of transparency or a lack of control of any of the following?

The procurement life-cycle of your Network (MACD) Tracking and recording approvals and sign-offs Knowing what you agreed to with individual circuits: legal, pricing, SLAs Identifying vendors and contact points during an outage – who owns what?

Convinced that you are paying too much for your telecoms real estate; but you can’t prove it? Contracts have expired; but are rolling on at legacy rates Circuits cancelled, but vendors still billing Multiple circuits between the same locations that could be amalgamated More common than you might think; you’re paying for another customer’s circuit!

Understanding Your Total Telecom Spend? Top 20 carriers, total telecom spend by product, cost per Meg or cost broken by region Managing Carrier performance and SLA penalties Which carriers are performing well which carriers are causing the most difficulties -

confirming carriers are paying against SLA breaches. Trending outages to identify and mitigate against performance issues

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Typical Problems faced with Telecom

How do achieve these savings and reporting?

We perform an audit of your 3rd party network estate using our software:

• Map relationships between supplier circuits and underlying customer circuits

• Map cross-connects to tail circuits to main bearers

• Identify circuits which are out of contract

• Identify tails and cross connects without “parent” circuits

• Identify locations with multiple circuits into one location

• E.g. 4 x E1 and 4 x DS3 into same building

• Identify in-contract circuits running empty (billing, but has no customer traffic)

• Compare vendor invoices to “real network” (overbilling issues and claim rebates)

• Look at circuit performance: connections to NOC and trouble ticketing allows for SLA analysis and credit generation

• Re-negotiate both out-of-contract and in-contract circuits

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Telecom Expense Management

Using SourceConnect to perform an audit provides transparency into:

1. Renewals & Expirations – Proactively create your annual business plan. Run reports to manage the pipeline expiration management. Identify inventory which is no longer under contract terms. Drive decisions on benchmarking, go-to market strategy for renewals and price downs.

1. Perform inventory validation – SourceConnect automatically flags inventory which is not complete or missing information which drives focus to capture and correct the inventory. Run reports on inventory overlap to identify sites with more than one connection which highlights consolidation and disconnect opportunities.

2. Supplier Management- identify and eradicate telecom process inefficiencies & potential overcharging. Run reports on circuit to invoice reconciliation and identify and remove unused circuits, cross connects and local loops.

3. SLA & outage management – Understand which suppliers are performing and not performing. Proactively manage your supplier performance by viewing outage history. Run reports which automatically capture SLA credits owed for SLA breaches.

4. Improve the telecom life cycle - vendor negotiation and RFP management through to Consulting Services for Integration, Audit, and RFP’s.

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Telecom Audit

Getting Started

Straight Forward Implementation Process:

6. Project Plan - Initial Kickoff meeting with your in-house project sponsor and SourceConnect’s Project Manager which will structure the program to identify the goals and objective of our engagement.

7. NDA’s & LOA - Issued to your suppliers to enable SourceConnect to gather your network inventory etc.

6. Auto-upload inventory template - A template is issued to your suppliers by SourceConnect which allows SourceConnect to automatically load the inventory. Leveraging this template standardizes how we receive the information back from the suppliers which eliminates the requirement to have to then spend time trying to redo the information.

7. Inventory Validation = Savings – Information is validated, and analyzed within SourceConnect, enabling us to drive savings for you now and for you to use going forward!

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SourceConnect – Focus Areas

Leveraging SourceConnect will enable you to gain the transparency into your inventory to enable you to gain better control of your spend through view-dashboards and pre-established reports.

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1. Workflow Managementa. Control order approval processb. Control quote sourcing bid processc. Standardized Service delivery

notificationd. Standardized order forms and order

process

2. Inventory Management & Centralized repositorya. Telecom inventoryb. Vendor Contracts and ordersc. Vendor Contactsd. Historical quotes

4. Dashboards & Reportinga. Pipeline Management of inventoryb. Supplier Relationship Managementc. Spend Analysis (Region, Product)d. Outage Performance

3. Invoice & Audit Managementa. Process Invoices b. Audit invoices against inventoryc. Raise and manage vendor disputesd. Align cost by customer \ business unit

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Information entered from the original MACD request is automatically transferred into inventory upon completion of the request, without any manual intervention.

Detailed Circuit Records

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Detailed Circuit Records

Spend Analysis

Executive Management style dashboards providing holistic spend breakdown by Vendor, Region, Top 10 Carriers, and by Product summaries.

Cost Per Megabit

Quickly access the Cost Per Megabit of your network. A powerful report for vendor negotiations and identifying outliers.

Renewal Pipeline Management

Proactively manage, report and business plan contract expiration dates.

Inventory & Cost

Quickly understand spend by product, and product count by service type.

Manipulate charts to filter by Region, Cost Center or Carrier.

PriceLab - Benchmark

Ability to carry out a self benchmark on your network and also against TeleGeographyindustry data.

Particularly useful when generating RFPs:

- initial budgetary views- benchmark offerings

Supplier Management

Performance dashboards which summarize outage performance trends, by supplier and overall business impact statists. Powerful information which can be leveraged during Supplier Relationship Management meetings.

As a phase 2 item SourceConnect can interconnect to your existing ticketing system and can be used to automatically calculate how much you are owed for SLA breaches.

1. Established Telecoms Inventory database• operationally proven with top-5 global bank

• managing $300m spend• 200 global users • 34,000+ network elements and relationships

2. Capability of delivering identifiable cost savings within weeks of implementation; on-going cost realization during the course of the project

• 24% cost reduction for Telco on 3rd party access circuits

3. Source Connect resides on your network or can be hosted• you retain complete data security control of systems and data

4. Increase visibility, understanding and control of day-to-day network management• NOC, Outages, vendors and customer circuit visibility

5. Increase visibility, understanding and strategic control at senior levels of the organization• At your finger tip analysis of performance, network, vendors and customers

SummaryOverview

Thank You

Contact us at:info@sourceconnect.net+1 800 685 4127

Chicago Office:155 North Wacker Drive

Suite 4250Chicago, IL 60606

www.sourceconnect.net