Financial optimization

Financial optimization consists in increasing the profit of a structure for given investments in money and efforts.

What we are specialized in is the identification of gaps in systems and processes that lead to financial losses.

By closing these gaps, we support you increasing your profit.

Why telecommunications?

We have two main reasons to work primarily for telecommunication companies.

The first one is that telecommunication is our primary domain of expertise and that we have a wide experience in IT, finance, marketing, sales or customer services for telecommunications. 

The second is that the high level of complexity of this domain makes it a great "playground" for analysis and optimization. The complexity of the data flows for provisionning as well as consumption tracking or billing added to the volumes of data, the number of customers and the number of IT systems make it more sensitive to imperfections. This is exactly were we can support: Finding imperfections that lead to financial losses so that you can correct them.

Customers don't complain about being undercharged

Providers don't complain about being overpaid

That's a fact. People paying less than what they should and people getting paid more than what they should usualy don't complain about it.

Therefore, you need internal controls to identify your systems undercharging and overpaying failures.

Are your controls strong enough to identify and close all the gaps? This might be a way to answer:

There is no reason to think that your IT systems produce more errors that are profitable to your company than profitable to your customers and partners? So it means that for each pricing mistake reported from a customer through a complaint, you could find a pricing mistake benefiting another customer.

Now, do you think that you correct as many from both types? Probably not and the consequence is that you are loosing money on many of your customers and service providers.

Your IT landscape is a gold mine

As mentioned before, the complexity of your products, systems and processes is a source of financial leaks.

The biggests leaks are often identified by financial controlling and quality assurance departments but most of the small leaks can not be seen with high level reporting and need to be analysed at the lowest level.

Even small leaks, accumulated over years and thousands of customers, can result in millions losses. These millions are a chance to raise your profit.

We are specialized in (data) gold mining

ISDV is specialised in analysing your processes, your systems and your data to identify financial opportunities.

We use advanced data analysis and data visualisation technologies as well as our extensive experience in business optimization to support our customers.

You don't like risk?  Pay us on profit sharing basis.

In order tu reduce your investment and to ensure a win-win partnership, ISDV can propose a profit sharing agreement.

- In a first visit we collect the necessary informations to define a scope of analysis, identify the information we will need and agree on a profit sharing model depending on your business area and the defined scope

- After preparing and signing the contract the analysis job can start with process analysis, data collection and processing. Il will be performed off-site with on-site visits when needed.

- Based on analysis progress, meetings will be organised to present the findings and validate them. These meetings will result in impact estimation and a sign-off.

The following conditions have to be fulfilled in order to ensure the financial success:

The project must be supported by CEO or CFO

Open access to company data (but no personal data from your customers, we can work on IDs)

One SPOC that can support us finding the right persons and information in your organisation

Possibility to check analysis results on-site with support of all departments

Example: Optimization of a telecommunication provider

Let's take the following simplified customer lifecycle to get an idea of how a leak analysis can be performed:

What looks simple on one customer becomes way more complex when you are multiplying the customers, the products and the scenarios but even based on this simple lifecycle, we can identify some areas that can be analysed in order to ensure that there are no financial leaks:

Sales partner

Are you getting all initial payments from the sales partners?

Are you paying the right commissions to your sales partner?

If you have bonus or payback systems with your sales partner, are they effectively used?

Are some of your sales partner abusing the commissioning system?

Customer usage

Are you collecting all customer usage and assigning them to the right customer?

Are you paying the right price to service providers (direct to bill)?

Are you invoicing all consumptions to the right price?

Are you collecting all the amounts that you invoice?

Sales strategy

How efficient is your commissionning? Are you getting the most money from the customers for which you pay the highest commissions?

Collection

Are your collection strategies effective? Are you collecting

These are questions we can answer using big data analysis tools on your company data.