Organizations looking for ways to both embrace mobile communications and keep expenses under control can choose among several different management models. Some of these work better than others. In a white paper, Mobile Management Models, telecom expense management (TEM) solutions company Amtel (News - Alert) outlined some of the most frequently employed techniques for keeping track of wireless expenses, and outlined the pros and cons of each.

 

The first model is usually referred to as “individual liable” or “stipend.” In this model, the organization gives employees a flat stipend for wireless expenses, and leaves all the other details — which provider, which device, etc.— up to the employee. This model has the lowest direct impact on accounting and information technology (IT) department overhead. It also provides the most freedom to employees (they can decide what features

they want on their mobile phones, and when and how to use those phones).

 

While the “individual liable” model might seem the simplest, in the long run it ends up actually being quite complicated for the employee and the organization. The employee, who is likely quite busy already, has to put in the time to decide what device and services best fit his or her needs. This takes time.

 

The organization misses out on important opportunities to save money on wireless expenses, including bulk rate plans. While it takes accounting and IT resources to perform mobile management, without that management the organization actually loses money. This can happen in a variety of ways, including scenarios when employees leave the company and take their phones — along with valuable client contacts — with them.

 

The “individual liable” model also can cause problems for the organization when it comes to compliance matters. Giving over control of mobile management to the employee means the organization can’t ensure that wireless devices and services are used appropriately and in according with security and other policies.

 

Another model is usually referred to as “individual liable with corporate discount.” In this model, the organization negotiates discounts, and employees then buy equipment and plans. Invoices are reimbursed directly or paid for with fixed stipends. In a way, this model offers the freedoms of “individual liable” but gives the organization some ability to save on cost. Yet it’s still less than ideal, having most of the same drawbacks as the first model described.

 

A third model is known as “corporate liable centralized.” In this model, the organization selects devices and calling plans, and is able to take advantage of bulk discounts. The devices and services are “owned” by the organization. Billing is centrally managed, enabling the organization to take full control over mobile management, deduct expenses for tax purposes, and ensure that security and usage policies are adhered to.

 

“Corporate liable centralized” is typically perceived as the most expensive model, and therefore out of reach for many organizations. In fact, Amtel said in its white paper that technological advancements have brought down the prices of such solutions. Organizations can now use such a model to substantially reduce mobile expenses and do so without having to invest undue amounts of time or money to the management process.

 

Mobile management solution platforms, Amtel reported in its white paper, typically encompass a wide spectrum of TEM functions, including:

 

 — Order/procurement management

 — Invoice processing

 — Cost allocations

 — Auditing

 — Contract management

 — Optimization

 — Reporting

 

Using the “corporate liable centralized” model, organizations can streamline their mobile service environments and reduce operational expenses at the same time. For more benefits of this approach, please visit the Mobile Management channel on TMCnet.com, brought to you by Amtel.