Technology beats Marketing

The new industry standard for purchasing telecommunications services

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References

Beiersdorf AG Heidelberger Druckmaschinen AG Raytheon Anschütz GmbH
SCHOTT AG tesa SE Carl Zeiss AG
 

The Problem

Complexity and Intransparency

COMPLEX USAGE PATTERNS

For each connection individual and complex call profiles (call duration, data volume, partner networks, overseas etc.) have to be recorded.

INTRANSPARENT OFFERS AND MARKET PRICES

Up to thousands of possible non-transparent combinations of tariffs and tariff options have to be considered.
Furthermore it is non-transparent, if the offered prices are on a high or low level as compared with the average market prices.

GENERALIZED TARRIFS AND SIGNIFICANT OVERCHARGES

Due to the non-managable complexity often only generalized and thus inappropriate and too expensive tariffs can be taken into consideration.
In addition to that the offered prices usually are significantly higher as the possible market prices.

 

The Solution

Software and Technology

Fully automated data processing

With our software we process up to millons of user data records fully automated for all your connections - in any country.

High-performance simulation by cluster server architecture

With the power of several servers we identify the least cost combinations of tariffs an tariff options out of millions of possibilities for each provider's offer.

Absolute transparency

In this way we provide absolute transparency, both in terms of their detailed requirements as well as in relation to the actual costs for each provider.

 

The Problem

Oligopoly and Market Failure

The german telecommunications market for corporate clients is distinctly dominated by a provider oligopoly. Because of technology requirements often only one competitor can be considered as an alternative to the existing provider. This strongly limited competition impedes an effective market pricing leaving the procurement department at a disadvantage.

Since the cost structures of the providers are also very similar and the marginal costs of the services are virtually zero, the present provider can "call" any competitors offer. The competitor then wouldn’t have a chance to win over the customer, leading to no or at least no attractive offer by the competitor.

The procurement department can then merely option to accept the uncontested offer of contract extension of the present provider.

 

The Solution

Sequential Call Auction (SCA)

To solve the market-structure-problem we developed an auctioning method, the "Sequential Call Auction (SCA)".

The SCA solves the problem of market failure and intensifies the competition. This ensures not only that the customer receives made-to-measure services, but also receiving the best possible price from every provider.

For information on procedure, prerequisites and our references of SCA please get in touch with us.

 

The Result

Low Effort, High Savings

Rapid potential determination

In order to quickly make a substantiated decision on possible purchasing measures, we calculate the savings potential in just one week.

Significant effort reduction

We reduce your purchasing effort by 90 %, by taking over the entire analysis as well as the commercial project management for you.

Exceptionally high savings

In all our projects, we have achieved at least 20% of effective savings. In more than half of our projects we have achieved more than 40 %.

 

Knowledge

KNOWLEDGE BRIEF

Relevant information about the corporate-client-telecommunications-market barely exist publicly.

We monitor and analyze the market situation and deliver information to you that is important for your business with our Knowledge Brief.

If you would like to receive our Knowledge Brief, please send the message “Knowledge Brief” via our contact form.

 

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