Study completed
Insights for Better Business Decisions
In the face of ever decreasing margins, service provider executives must dramatically reduce costs. Effective cost management begins with understanding the company’s cost of business operations and how that compares to the rest of the industry. Focusing on costs associated with processes, rather than systems, provides a deeper insight to where money can be saved and leads to more successful change programs.
The TM Forum, through collaborative benchmarking with its 240+ service provider member organizations, will develop a series Operational Cost Models which will provide executives with insights to drive costs out of their business both systematically and predictably.
The major elements of the program are:
- A set of industry cost profiles for organization characteristics such as size, location, and business model. The participating company’s costs are displayed graphically compared to industry peers. Understanding where you stand is the first step in controlling costs.
- Linkages between the cost profiles and operational processes. This enables executives to define clearly their cost drivers and opportunities for cost reduction. It also provides empirical justification for investment in specific programs.
- A set of best practices for making major changes in operational processes. This provides insight into how industry leaders have successfully managed transformation programs in their organizations.
The focus on operational processes, rather than systems and applications, is a unique aspect of this TM Forum Benchmarking program. This approach supports the fundamental changes in business models and processes required to succeed in a highly competitive services market, while at the same time underpinning the strategic application of IT and systems to specific business processes.
Service provider participants in the first phase of this program will receive a custom report and will be able to answer the following questions:
- What are the typical “rules of thumb” I can use to relate Opex and high-level business processes?
- How does my company’s cost profile compare to the industry as a whole and to profit leaders?
- Where can I expect to reduce costs and what level of savings can I expect?
- Where should I invest in transformation management to gain the best prospects for success?
- How have profit leaders managed their transformation programs?
The first phase will develop a high-level model of how Opex breaks down across key business functions, such as:
 The study will also show how those functions relate to critical business processes such as order-to-cash, concept-to-delivery, and trouble-to-resolve. In addition, this phase will profile how companies approach major business process changes and how they stack up against the TM Forum’s business transformation maturity model.
To participate in the study or subscribe to the results, contact Benchmarking@tmforum.org. |
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