| The costs of providing online and telephone customer | | | | Integration can be a huge hurdle. It can also become |
| support are increasing, while the cost pressures on | | | | an excuse for doing nothing - the "let's wait until we |
| Service Providers mean that the number of staff | | | | have a common system before addressing eBilling" |
| working in this area are decreasing. Anything that | | | | syndrome. In practice, companies have found that |
| helps end users 'help themselves' can deliver direct | | | | eBilling can become the quickest mechanism for |
| savings to the Service Provider. The case for eBilling | | | | integration, giving customers a single view across |
| has, however, suffered from over exposure, being | | | | multiple invoicing systems. |
| promoted as something of a 'cure all.' | | | | 4. The poor performance of DIY solutions. In-house |
| For all the hype, eBilling does have undeniable | | | | developed eBilling systems have a mixed history. This |
| strengths, particularly within one of the most | | | | is not a reflection on the concept of eBilling - more a |
| competitive market sectors- telecoms. With the | | | | comment on the practical issues involved with |
| promise of a fast ROI, the decision should be an | | | | in-house development. Most internal IT departments |
| easy one. Particularly, if as an example, you consider | | | | are suffering overload from maintaining legacy |
| the experience of one large multi-national service | | | | systems. Having to cover the whole spectrum of IT |
| provider that exceeded 40% eBilling adoptions in less | | | | development and maintenance, they often do not |
| than 36 months - more than 20% paper turned off | | | | have the opportunity of meeting the whole range of |
| and 70% of consumers paying electronically. | | | | issues and potential solutions associated with eBilling. |
| A sweep of the internet around the subject of | | | | Longer term, they suffer from people that have |
| eBilling and Service Providers comes up with a real | | | | moved on to delivering the next project, resulting in |
| mixed bag, ranging from thinly disguised promotional | | | | skills becoming dispersed or even lost. Ongoing |
| material to reports of poor take-up. The most | | | | development and maintenance of the eBilling |
| disturbing message is that of poor take-up. If it's so | | | | applications inevitably suffer. |
| good, why wait? We started by asking our | | | | 5. The 'too busy' syndrome. With new services to |
| customers what they believed were the concerns - | | | | provide and possibly, legacy systems to replace, IT |
| valid or otherwise - that were inhibiting some Service | | | | departments can be excused for sidelining projects |
| Providers from adopting an eBilling strategy. Ranked | | | | they believe do not create extra chargeable revenue. |
| in order of importance, they are as follows: | | | | Projects end up at the bottom of the pile. What |
| 1. Increased transparency of charges will lose the | | | | they often don't recognize is the strong business |
| Service Provider revenue. By delivering an eBilling and | | | | case that can deliver quick bottom line savings and |
| analytics solution, the Service Provider makes it | | | | fast incremental revenue from eBilling. And it can be |
| easier for its customers to understand their spend, | | | | achieved without any impact to the corporate IT |
| and potentially highlight areas where cost savings can | | | | strategy. For many companies, the solution is |
| be identified. These savings translate into a loss of | | | | outsourcing - whether employing a fully hosted |
| revenue for the Service Provider. This has been a big | | | | solution or an outsourced managed solution on-site. |
| issue for Service Providers and often cited as a | | | | 6. Poor adoption rates. This is the most frustrating |
| reason not to deploy an eBilling and analytics service. | | | | rationale for doing nothing. A self-fulfilling prophesy |
| In fact, it does not stand up to scrutiny. Most large | | | | based on long outdated information and a lack of |
| organizations already invest time analyzing their | | | | knowledge of adoption rates. Our research has found |
| spend, whether paper or electronic bills. By offering a | | | | that Service Providers adopting an eBilling strategy |
| solution that makes it easier and cheaper for | | | | ranked 'customer adoption rates' as the most |
| customers to perform analysis, the Service Provider | | | | important issue they needed to address. |
| in fact gains credibility and loyalty. | | | | The truth is that eBilling and associated analysis is |
| 2. No immediate cost savings. eBilling is perceived as | | | | delivering significant benefits for Service Providers of |
| additional overhead, with no immediate return. In fact, | | | | all sizes, across both their consumer and business |
| most Service Providers do make significant cost cuts, | | | | sectors. However, the two environments are very |
| with some even selling the service as added value | | | | different. The consumer marketplace faces particular |
| (see appendix case study). Others that have | | | | challenges, not least of which is the reluctance of |
| undertaken successful implementations have reported | | | | some customers to adopt an online lifestyle. It has |
| remarkable indirect returns. The secret is to make a | | | | been the reluctance of the consumer sector that has |
| full evaluation of peripheral and incremental savings - | | | | clouded the industry's perception of eBilling. |
| see our example guide to assessing ROI at the end | | | | The business sector represents the more |
| of this report. | | | | straightforward case - where it is faster to convert |
| 3. The cost and hassle of integration. Many Service | | | | and easier to articulate customer benefits. For most |
| Providers, particularly following convergence, are | | | | Service Providers, the corporate space represents a |
| suffering from a plethora of legacy systems that | | | | significant part of their revenue, or it is an area of |
| frustrate the production of a consolidated bill. | | | | potential growth in a highly competitive market. |