Investment in Revenue Assurance Eliminates Unbillable Revenue, says new TM Forum report
MORRISTOWN, NJ—November 18, 2009—TM Forum, the world’s premier industry group focused on business effectiveness for the communications and media sectors, announced today the results of its latest Business Benchmarking study which uncovers a direct link between Communications Service Providers (CSPs) levels of unbilled revenue and the maturity of their revenue assurance programs. The study results are included in TM Forum’s latest Insights Business Intelligence Report, “Revenue Assurance: The Hidden Opportunity”.
The report, which includes observations from recent TM Forum Business Benchmarks, finds that CSPs who target Revenue Assurance holistically differentiate themselves through high performance, efficient operations, and improved bottom-line contributions. Revenue Assurance success is best represented by the percentage of revenue that cannot be billed, a measure that reflects ability to identify revenue leakage as well as to recover leaked revenue. In the highest-performing CSPs included in the benchmark, 0.0% of revenue could not be billed, whereas poorest performing CSPs could not bill 6.4%.
• Revenue Assurance performance is directly correlated with the maturity of a CSP’s Revenue Assurance program, making Revenue Assurance maturity an important investment. A strong Revenue Assurance capability is a core attribute of high-performing CSPs — a necessity and a differentiator.
• Mature Revenue Assurance departments can look like cost centers if measured solely on revenue recovery, especially if there is little leaked revenue to recover. A better measure of Revenue Assurance success is the percent of revenue that cannot be billed. This measure reflects ability to identify revenue leakage as well as to recover leaked revenue. In highest-performing CSPs included in the benchmark, 0.0% of revenue could not be billed, whereas poorest performing CSPs could not bill 6.4%.
• The best-performing CSPs had Revenue Assurance maturity metrics that were 0.50 to 0.80 points higher than the general survey population. The best-performing CSPs had highest maturity in Organization and People, followed by Influence.
• Charging and third party settlements are becoming more challenging as a result of increasingly complex service bundles that often include third-party service components, growing transaction volumes, and an increasing number of suppliers. Revenue Assurance organizations play an important role in preserving margin on new revenue streams, including tracking new transaction types through to correct billing and third-party fund allocations.
• The report analyzes the benefits of strong Revenue Assurance performance for CSPs at all levels of size and maturity. It includes observations from recent TM Forum Business Benchmarking Revenue Assurance benchmarks and Revenue Assurance Maturity Model surveys.
• The report also includes perspectives from CSP thought-leaders about the contribution Revenue Assurance makes to their corporate success, and views from key industry suppliers on current and future Revenue Assurance challenges.
• TM Forum’s Business Benchmarking Program manages and delivers metric-based benchmarking studies, surveys on qualitative aspects of performance, and business intelligence reports. Regular Business Performance studies are completed on Broadband, Mobile, High-speed Business, and Converged Services, as well as on Billing and Revenue Assurance Performance. Qualitative surveys and business intelligence reports span a wide range of hot industry topics.
• “Revenue Assurance: The Hidden Opportunity” is the latest in a series of TM Forum Insights Business Intelligence Reports that address CSPs strategic issues, available exclusively to TM Forum members.
• “Mature Revenue Assurance organizations need to expand their remit beyond traditional measures into managing new revenue streams. The pay-off will be higher margins on new revenue streams, more success in bringing new services to market, and positive customer experience, ” said Martin Creaner, president and COO, TM Forum. “Service Providers that embrace this hidden opportunity will be in a much stronger position than those that don’t. It is an important differentiator.”
• “To determine their true contribution, Revenue Assurance organizations should be measured on more than recovered revenue. A good, but not sufficient, measure is unbillable revenue,” added Tonia Graham, Business Benchmarking Program manager, TM Forum. “Recovered revenue doesn’t have a measurable impact on the bottom line — unless, of course, you stop doing it. If you see your Revenue Assurance team as a cost center, you are missing an opportunity.”
• “The act of self-assessment itself has already helped us to identify room for improvements and I’m confident that the final result will point us down the path toward the next level of maturity,” said Rose Moura, Director of Revenue Assurance, Swisscom AG.
• Attend the TM Forum Revenue Assurance Benchmarking webinar on November 18. Register at http://www.TMForum.org/UpcomingWebinars/RevenueAssuranceBenchmarking/39945/article.html.
• Limited time 28% savings on Revenue Management Gold benchmarking subscription for non-CSPs. To subscribe, visit http://www.TMForum.org/BenchmarkingRevenue/7964/home.html.
• CSPs contribute benchmarking data anonymously through a secure portal and database. The program includes more than 150 active service providers from 30 countries. For more information on TM Forum’s Business Benchmarking Program, please visit http://www.TMForum.org/Benchmarking. If you would like to participate in the initiative, contact Tonia Graham at Benchmarking@TMForum.org.
• “Revenue Assurance: The Hidden Opportunity” is available exclusively to TM Forum members at http://www.TMForum.org/ResearchPublications/InsightsBusinessIntelligence/4698/Home.html.
• Members of the press interested in obtaining a copy of the report should contact Geoff Devlin at PR@TMForum.org.
• Attend the executive Business Strategy Workshop at Management World Americas to learn more about benchmarking. Get a free Business Benchmarking Metrics Framework poster in Forumville.
• Subscribe to TM Forum’s press release RSS feed and newsletters.
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TM Forum, Business Benchmarking Program, communications service providers, revenue assurance, Martin Creaner
About TM Forum
With more than 700 member companies in 75 countries, TM Forum is the world’s leading industry association focused on improving business effectiveness for Service Providers and their suppliers. Serving the information, communications and entertainment industries, the Forum provides practical solutions, guidance and leadership to transform the way that digital services are created, delivered and charged. Members include the world’s largest Service Providers, cable and network operators, software suppliers, equipment suppliers and systems integrators.
TM Forum provides a wide range of information and support to help its members reduce the costs and risks associated with creating and delivering profitable services. These include industry research and benchmarks, technology roadmaps, best practice guidebooks, software standards and interfaces, as well as certified training, conferences and publications. The Forum also provides its member community with extensive marketing and networking opportunities, enabling business with new customers and partners.
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