Services
Services
Service Concept
By combining our technology with individually developed auction methods, we have achieved more than 40% effective savings for all our clients.
Mobile phone providers lack the technical prerequisites to be able to determine the most cost-efficient tariffs and options for their customers. As a result the costs are too high.
We have highly specialised software and infrastructure that enable us to record the usage data of all users of a company in detail over several months and simulate it with any number of tariff models. In this way, the best actual result is finally determined. Often the calculations are so complex that they can only be carried out in an acceptable amount of time using several servers in parallel.
However, even the absolute transparency of tariffs, options and detailed requirements alone cannot reach the full optimisation potential. This is because the dominant market position of a few providers makes it difficult to push through the determined optimum.
That is why we develop special auction designs based on the systemically generated knowledge and taking into account the provider oligopoly as well as your individual objectives, so that the efficient achievement of the lowest possible total costs is guaranteed.
Predictive Benchmarking
Predictive Benchmarking simulates a tender/auction of the highest quality. The simulation calculates the result that you would achieve with an optimal tender/auction design for your individual usage situation, without you having to enter into discussions with the providers.
Result:
- Value of achievable savings (Benchmark)
- Implementation plan/offer
- Possibility of immediate savings through tariff optimization
Time required:
1 to 2 weeks
Fee:
Fixed amount per mobile card
Guarantee:
100% discount when benchmark savings are less than 20%
Background and contents
In purchasing, benchmarking, i.e. comparing one's own costs with those of other companies, is often used to determine potential savings. This approach is often not useful for mobile services and is even misleading.
This is because comparing costs on the basis of index values from secondary data, on which the usual benchmarking methods are based, is tantamount to the proverbial comparison of "apples with oranges". Moreover, with this conventional benchmarking it always remains unknown how the supposed savings potential is to be achieved.
How close a company comes to the actual best result is determined above all by the individual tender quality. This is a finding from our success with numerous large companies with up to several tens of thousands of mobile phone contracts. The individual highest tender quality is achieved when
- absolute transparency is brought about;
on the detailed usage structures and the costs for all practically achievable tariff combinations; - the most effective tender/auction design is developed and applied;
based on absolute transparency and consideration of the individual framework conditions as well as application of the aspects of game theory.
An ideal benchmarking determines the savings potential and the prerequisites prior to such a tender in order to then be able to assess which purchasing measure makes the most economic sense. For this purpose, we have developed "Predictive Benchmarking", which includes the following services.
1Collection of usage data
The differentiated and broadest possible collection of usage data is a necessary basis for determining the most cost-efficient tariffs. Simplifications, for example through sample considerations or through the use of consolidated values, would have a negative impact on the purchasing result.
Therefore, we collect your billing and individual connection data to be analysed for each subscriber for a period of at least six months. This data is provided by the inventory provider in their standard format and processed by us in pseudonymised form. Data relevant to data protection can thus only be read by them.
2Auction design
In the telecommunications market there is a pronounced provider oligopoly for business customers. Often, due to technological requirements, only one competitor can even be considered as an alternative to the existing provider. Moreover, since the cost structures of the providers are very similar, the existing provider could "go along" with any offer of the competitor. Consequently, the competitor has hardly any chance of winning the customer, so that in many cases he does not make any offer at all, or at least not an offer that is attractive in terms of price.
Our auction designs address the problem of this market failure and create a high level of competition. This ensures that the customer not only receives services that fit, but also the best possible prices. In addition, our designs take into account any specific requirements you may have, e.g. in the form of minimising the likelihood of a change of provider while maintaining full procedural transparency towards providers.
3Simulation of the target scenario
Our software analyses all cost-relevant information from the usage data, especially actual costs and services as well as usage volumes per connection type. All data is checked for consistency and completeness.
The most cost-effective tariff-option combinations per subscriber are then calculated on the basis of the usage data and the defined auction design. The result is the most cost-effective target tariff portfolio that is achievable on the market under the given conditions.
4Preparation of the implementation offers
In order to achieve the result determined in predictive benchmarking, the assumptions made in the simulation must be translated into reality. For this, we create a concrete offer for the implementation of a corresponding auction including success guarantees.
In addition, we create an offer for tariff optimisation in case an auction is not yet desired at the given time.
Auctions
Auctions are the supreme discipline in the context of tenders. With our technology, we create the conditions for absolute demand and performance transparency and develop highly effective auctions based on this.
Result:
- New Master Agreement
- Optimal tariff allocations per user
- Migration list for direct implementation at the mobile network provider
- Maximum savings (expected value >40%)
Time required:
6 to 12 months
Fee:
Variable share of savings
Guarantees:
Background and contents
In the telecommunications market there is a pronounced provider oligopoly for business customers. Often, due to technological requirements, only one competitor can be considered as an alternative to the existing provider.
Because the cost structures of the providers are also very similar and the marginal costs of the services are close to zero euros, the existing provider could "go along" with every offer of the competitor. Consequently, the competitor has hardly any chance of winning the customer, so that in many cases he does not make any offer at all, or at least not an offer that is attractive in terms of price.
Our auction designs address the problem of this market failure and create a high level of competition. This ensures that the customer not only receives precisely fitting services, but also the best possible prices from each provider.
If your current framework contract has a remaining term of less than 12 months, the planning of the auction should be started. The auction should be started at least 6 months before the expiry of your existing framework contract and consists of the following services.
1Collection of usage data
The differentiated and broadest possible collection of usage data is a necessary basis for determining the most cost-efficient tariffs. Simplifications, for example through sample considerations or through the use of consolidated values, would have a negative impact on the purchasing result.
Therefore, we collect your billing and individual connection data to be analysed for each subscriber for a period of at least six months. This data is provided by the inventory provider in their standard format and processed by us in pseudonymised form. Data relevant to data protection can thus only be read by them.
2Simulation des Zielszenarios
Our software analyses all cost-relevant information from the usage data, especially actual costs and services as well as usage volumes per connection type. All data is checked for consistency and completeness.
The most cost-effective tariff-option combinations per subscriber are then calculated on the basis of the usage data and the service portfolios of the providers selected by the customer as relevant.
The result is the defined target tariff portfolio including the target prices. This creates the essential commercial basis for the auction.
3Creation of the requirements documents
Depending on the auction design, the requirements include an overview of the usage parameters or the target tariff portfolio, including the target prices, prepared for the provider.
In addition, specific further requirements are included. These include, for example: the list of locations mandatory for network coverage, desired maximum durations of options, setting a quota for mobile contracts that can be paused, service level agreements, etc.
.4Design and implementation of the auction
The optimal auction design in each case is largely determined by your specific requirements, e.g. in terms of minimising the probability of a change of supplier.
In any case, our auction designs ensure complete procedural transparency, also towards the bidders. Opportunities and risks are thus calculable for the bidders; an essential requirement for achieving the best price-performance ratio.
By defining all technical and commercial specifications as well as procedural rules, each auction runs deterministically, i.e. without any discussions in the meantime. This makes the entire tendering process not only highly effective but also efficient.
5Contract review and preparation of the migration list
On conclusion of the auction, all commercial and technical provisions are legally binding. After the winning bidder has formulated the formal final contract, we will review the contract for compliance and completeness with respect to the auction-related provisions.
Parallel to this, our system creates the migration list, i.e. the complete overview of the allocation of the tariffs and options calculated as optimal to the respective current users. Based on the migration list, the provider can immediately carry out the corresponding conversion of the tariffs, so that there is no effort either for purchasing or for IT in this area either.
Tariff optimisation
Tariff optimisation involves calculating the most cost-effective tariff-option combinations from your current framework contract for each user. The high number of users, connection types and tariff option combinations requires millions of calculations, which can only be carried out with complex technology in an acceptable time.
Result:
- Optimal tariff allocations per user in existing master agreement
- Migration list for direct implementation at the mobile network provider
- Maximum savings in existing master agreement (expected value >10%)
Time required:
1 to 2 weeks
Fee:
Variable share of savings
Guarantees:
Background and contents
Even without conducting an auction, our software can achieve significant savings in the double-digit percentage range just from calculating the optimal tariff option allocations. Tariff optimisation therefore always makes economic sense under the condition of a relevantly high purchasing volume and consists of the following services:
1Erfassung der Nutzungsdaten
The differentiated and broadest possible collection of usage data is a necessary basis for determining the most cost-efficient tariffs. Simplifications, for example through sample considerations or through the use of consolidated values, would have a negative impact on the purchasing result.
Therefore, we collect your billing and individual connection data to be analysed for each subscriber for a period of at least six months. This data is provided by the inventory provider in their standard format and processed by us in pseudonymised form. Data relevant to data protection can thus only be read by them.
2Simulation of the target scenario
Our software analyses all cost-relevant information from the usage data, especially actual costs and services as well as usage volumes per connection type. All data is checked for consistency and completeness.
The most cost-effective tariff-option combinations are then calculated for each subscriber on the basis of the usage data and the customer's current service portfolio. The result is the defined target tariff portfolio including the target prices.
3Creation of the migration list
The migration list is the complete overview of the allocation of the tariffs and options calculated as optimal to the respective current users and thus the procedural result of the tariff optimisation.
The provider can carry out the corresponding conversion of the tariffs immediately on the basis of the migration list, so that there is no effort either for purchasing or for IT in this area either.