Publicly traded parking facility management services company. They provide services for office buildings, residential properties, commercial properties, shopping centers, sports and special event complexes, hotels, and hospitals and medical centers.
Due to the large number of locations under management and the wide array of location types, the client presented CMG's Group Member challenges in the areas of asset inventory, expense management and control, lack of consolidated buying power, and a rising cost for telecom administration. The client was looking to control expenses through bill and purchase consolidation, gain better visibility to inventory of lines in use, and needed faster service issue resolution to maintain customer service to their end-users.
CMG's Group Member offered a solution that includes an online portal that allows the customer’s IT group visibility of all their voice and data telecom inventory which in the past was largely managed by the individual locations. The customer now has ready access to all necessary information for problem resolution including a consolidated location list, vendor list with contact information, contracts and expiration dates, account numbers, an accurate inventory of phone lines and Internet circuits with the billing location codes they are charged to, and reporting of all allocated monthly charges. CMG's Group Member is now able to perform all change management, trouble management, and billing issues on behalf of the client while updating inventory and status online. Through our network services division, CMG's Group Member installed reliable, user-friendly phone systems at several regional locations.
CMG's Group Member was able to reduce monthly spending by $25,000 in the contract (24-month) savings. In addition to hard savings above, CMG's Group Member eliminated hundreds of labor hours spent receiving, filing, allocating, approving, paying, and entering telecom payables. CMG Group Member identified and eliminated over 200 unneeded accounts and proactively negotiated more than 20% savings for the accounts which remained. The customer also saved over 25% on local and long distance and 20% on internet access.
Company will save $3M over 3 years
At the core of this initiative was a quest to more efficiently manage technology spend and the company’s IT asset portfolio. The company anticipated a slowdown in its growth and marketing activities as the economic downturn continued. However, they knew that there would be a period of account growth following the downturn and any reductions in infrastructure had to be temporary. Without deeply understanding how to manage the spend and flexibility of its IT operations, the Client risked wasting costs on unused technology as well as risked the ability to keep up with the rebound in demand as market conditions increased.
In response to these risks, the Client turned to CMG’s group Member to evaluate its vendor portfolio, develop an IT savings roadmap and create vendor management strategies that fostered flexibility. Additionally, CMG’s Group Member established transaction-based pricing models with several IT vendors, reviewed support and maintenance agreements to identify areas of excess spend, and renegotiated maintenance agreements with vendors to support the infrastructure adjustments.
The Client’s investment in CMG’s Group Member is delivering overwhelming financial and customer-facing results. From a financial perspective, the Client’s initiative will yield more than $1 million in IT savings for 2008. Over the course of the next three years, this initiative will save the company more than $3 million.
Just as importantly, the flexibility afforded by the Group Member’s recommended infrastructure changes will keep operations running smoothly through the short and long-term flux in economic conditions. This will enable the Client to protect its customer service levels and retain customer loyalty during the market downturn.
In response to these risks, the Client turned to CMG’s group Member to evaluate its vendor portfolio, develop an IT savings roadmap and create vendor management strategies that fostered flexibility. Additionally, CMG’s Group Member established transaction-based pricing models with several IT vendors, reviewed support and maintenance agreements to identify areas of excess spend, and renegotiated maintenance agreements with vendors to support the infrastructure adjustments.
The Client’s investment in CMG’s Group Member is delivering overwhelming financial and customer-facing results. From a financial perspective, the Client’s initiative will yield more than $1 million in IT savings for 2008. Over the course of the next three years, this initiative will save the company more than $3 million.
Just as importantly, the flexibility afforded by the Group Member’s recommended infrastructure changes will keep operations running smoothly through the short and long-term flux in economic conditions. This will enable the Client to protect its customer service levels and retain customer loyalty during the market downturn.
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