1. Strategies for Solving the Telecom Expense DilemmaThursday, December 11, 2008

2. Todays Presenters Gary Williams Co-Founder and Director ofSales & Marketing TeleManagement Technologies, Inc. Susan McNeice Program Manager OSS/BSS Global Competitive Strategies (OSSCS)Stratecast, A Division of Frost and Sullivan Rob KeoughProject Manager - Accounting System & Support Kansas City Power & Light KC P&L 3. Polling Questions To gauge audience response, please respond with the best suitable answer.Please disable your popup blockers. Live Q&A Send your questions by clicking on Ask the Presenter button on your interface eBroadcast On-Demand A recording of the eBroadcast will be available at www.ebroadcast.frost.com/tem Give-Aways All registrants will be entered in to a drawing for a$250 Mastercard Welcome and Housekeeping 4. Agenda

Why you should care about telecomexpenses

What is Telecom Expense Management?

Customer Case Study

• How KCP&L benefits from active telecom expense management

Solutions for Managing Telecom Expense

5. Susan McNeice Program Manager OSS/BSS Global Competitive Strategies (OSSCS)Stratecast, A Division of Frost and Sullivan 6. Why Actively Manage Telecom Expenses? 7. The Bottom Line:Better Use of Your Companys Time, Money & People Telecom Expenses Essential for ALLBusiness4% of Annual Revenues

10% to 20% (or more) wasted

Hundreds or Thousands of invoices

Up to 65% of invoices subject to late fees

Staff to process and audit bills

Thousands or millions of $s lost

People, money and time wasted

8. The Opportunity Cost of Unmanaged Telecom Expense 375 hrs/month?(2.25 FTE) $7.5 Million? 9. Telecom Expense Management (TEM)

Financial

Inventory & Provisioning

Contractual

Business Intelligence

Telecom Expense Management 10. Telecom Expense Management-Financial Financial How and when are invoices received? In what format? How are these entered into internal systems? Due date?Late fees? How long does it take to process an invoice (and how many people)? Data entry mistakes? How do you allocate costs? Can you flag expenses that vary from budget? How are expenses tracked?Are these expenses used for future budget planning? Who approves and how long does it take?How does information get to the approver(s)?How and through what systems do payments actually occur? Is there a way to automatically identify billing errors? Is there a way to correct billing errors? 11. Telecom Expense Management Contractual Contractual What are the current contracts? Service availability? Service acceptability? Repair response time?Are current contractual obligations being met? Are penalties or bonus provisions in place (and being enforced?) Are the best contracts (price, QOS, utilization) in place? How do you identify contractual variances? Is contractual information tied with financial information? 12. Telecom Expense Management Inventory & Provisioning Inventory & Provisioning What telecom resources and services are currently contracted? Are these resources and services fully utilized? Are there any that are under-utilized or not utilized at all? When a new resource or service is provisioned, how is it tracked? When an existing resource or service is discontinued, is there a way to verify? Are your companies internal resources designed optimally for utilization, QOS and cost? Is inventory information tied to financial information? Do you have an inventory system?When a service or resource is provisioned, is the inventory system notified? When a service or resource is de-provisioned, is the inventory system notified? Is inventory information tied to contractual information? 13. Telecom Expense Management Business Intelligence Business Intelligence Can you mine and use the vast amount of data generated by telecom invoices? Can this data be tied together with other data from the organization? If the data is accessible, what is the lag time of the information? Can your telecom expenses be categorized? By service/ equipment type?By service provider? Can exceptions in the data be noted? Can current usage trends be used to forecast future expenses? By Vendor?By Corporate Hierarchy?Other ways? Can trends in the data be identified? 14. Key Points

Telecom services play a key and growing role in business

Individual service costs decrease, but Total expense rises

Up to 4% of annual revenues being spent on telecom

10-20% Overspending + Wasted Employee time

Actively managing telecom expenses not just a good idea

Essentialfor all organizations due to potential saving

Telecom Expense Management offers a better way

15. Rob KeoughProject Manager Accounting System & Support Kansas City Power & Light KC P&L 16.

1997 Aquila TEM process out sourced

• Reporting detail inadequate for FERC and PUC requirements

• Slow payment process

• Inadequate inventory detail

• Generalized expense allocation

• No coordination between Finance and IT

• Loss of control, communication throughout service life cycle

1998 TEM evaluation project

• Process evaluation

• Details added from LEC CSR reports, physical site surveys

1999 TEM process in sourced

• Access inventory/expense audit database

• Enhanced reporting and improved audit capabilities

• Life cycle TEM process finalized

• No automation, no communication with PeopleSoft

2002 Audit Software RFP and Evaluation

• WinBill acquired, tested and implemented

• Audit staff reductions, error reductions due to automation

• Much improved reporting and audit capabilities

• Strengthened TEM process

2008 KCPL acquires Aquila, inherits WinBill process

• TEM evolution begins again

Aquila TEM Evolution 17.

Holistic Telemanagement Process TM

• 90% of audit recoveries from the cradle or the grave

• Interdepartmental cooperation and oversight

Centralized MAC process

• Provisioning, approval, technical documentation

Centralized inventory/expense audit database

• Automated vendor expense importing/auditing (60%)

• Audit recoveries average 10% annual spend

• At-a-glance historical trend analysis

• Fixed spend variance analysis reporting

• Improved efficiency, less labor intensive

• Automated batch process to accounting system

Finite expense allocation

• Enhanced budget planning and oversight drive costs downward

Detailed audit recovery tracking How much are you worth?

• Documentation for vendor disputes, performance management

Strategic Sourcing: Procurement, IT and Finance

• Contract compliance tracking, proactive bargaining

WinBill Keys to Success 18. KCPL TEM Lifecycle The TEM System should be the center of your TEM Process. 19.

MO gas-only sale to Empire - 2005

All MI & MN properties sold to Wisconsin Power - 2006

Changed Conferencing Providers - 2006

KS electric-only sale to Mid KS Electric Co - 2007

Multi-state VOIP rollout - 2007

SBC acquires AT&T, Cingular Wireless - 2007

Wireless Providers enforce analog sunset - 2008

IA, KS and NE gas properties sold to Black Hills Corp - 2008

MO electric properties sold to KCP&L - 2008

Upturns and Downturns to the business cycle are caused by both internal and external forces.Your TEM System should equip you to cope. Managing Change 20. Historical Audit Recoveries 21.

Customization

• TEM processes vary.TEM databases must be adaptable.

Innovation

• TEM processes change.Software developers must be responsive to a changing environment.

• Telecom services, technology and billing are ever changing.TEM software has to keep pace.

Customer Focus

• Telemanagement is a complicated process.Training and support are mission critical.

TEM Software Provider 22. Gary Williams Co-Founder and Director of Sales & Marketing TeleManagement Technologies, Inc. 23. Why TEM?

• You Cant Manage what You Dont Know

• • • Audit

• • • SOX Requirements

• Time saved

• • • Automated Billing

• • • AP/GL

• • • HR / Database / Systems Integration

24. Why TEM

• Contract Management

• • Spend minimums

• • Cost Per Minute (CPM) based rates

• • Call or Duration Volume

• • Percentage based

• • MARC and SUB-MARC

• • Vendor Contacts

• • Payment Terms

25. Why TEM?

• Understanding Your Asset Base

• • • Valid Inventory

• • • Appropriate asset utilization

• • • Paramount when switching services or vendors

• Big Picture

• • • Detailed spend information

• • • Validate billing

26. Current TEM Related Issues

Billing errors are still prevalent in all carriers billing systems

Most companies do not have a centralized ordering system and inventory

Manual tracking of IT data is error prone and cumbersome

Visibility of expense information is not usually available to the right people

Contractual agreements need to be verified and managed

27. Billing in Todays World

Multiple vendors with different billing formats confuse end users

Manual data entry is error prone

Most telecom bills are incorrect in some way

Wireless plans are frequently set up incorrectly

Non-profit organizations are often billed for taxes

IT needs to send expense data to Accounting for bill payment

28. How Did We Get Here?

Mergers and Acquisitions Change Billing

Wide use of Wireless Devices, Laptops and Telecommuting increase billing and expense

Continual Wireless Plan Changes Require Action

Industry evolution favors automation

29. Available Options for TEM

Purchase TEM Software Solution

Outsource TEM Process BPO

Outsource TEM Process - SaaS

In-House Solution May be costly due to customization of features

30. Conclusion

Companies need TEM to Manage IT and make better use of financial and technical resources

Billing has not been streamlined and made easier for the end user

Expenses can be reduced using TEM

31. Audience Q&A Rob KeoughProject Manager - Accounting System & Support Kansas City Power & Light KC P&L Susan McNeice Program Manager OSS/BSS Global Competitive Strategies (OSSCS)Stratecast, A Division of Frost and Sullivan Gary Williams Co-Founder andDirector of Sales & Marketing TeleManagement Technologies, Inc. 32. Giveaway And the winner is 33.

A Recording of todays eBroadcast will be available by visiting: http://ebroadcast.frost.com/tem