Revenue leakage is a major problem for enterprises, and is often the result of dated systems and poor oversight failing to capture application risks, billing errors, and charging and rating risks.
As industries such as telecommunications become increasingly data-driven, the inherent complexity of operations creates new challenges for companies seeking to deploy an appropriate business assurance and revenue assurance solution.
There are a range of factors which can cause revenue leakage, including an inability to keep up with the data-heavy landscape, error-prone manual processing or interventions, and simple pricing or billing errors that create the environment for revenue leakage to occur.
A smart, data-driven solution like Neural Technologies’ Revenue Assurance and Business Assurance products can provide a powerful answer to these growing challenges by improving processes and providing automated resolutions that quickly and effectively tackle revenue leakage risks.
The revenue leakage landscape
Revenue leakage can cost companies up to 5% of total revenue according to analysis by EY. That represents a significant loss to any company, and a huge area of opportunity to improve underlying enterprise finances.
Accidental revenue and cost leakages cost communication service providers (CSPs) alone USD42.59bn annually according to the Risk and Assurance Group’s RAFMCS Survey 2021. Revenue assurance in telecom operators clearly represents a major industry need.
Revenue assurance and business assurance are critical solutions to this challenge, meeting the needs of enterprises in addressing these accidental losses. These solutions help optimize processes, reduce risk, and provide a more secure revenue landscape for enterprises.
Of the USD42.59bn identified revenue leakage highlighted in the RAG 2021 survey, bad debt, rating and tariff errors, and billing and collections errors make up almost half of the identified losses.
- Bad Debt – USD13.5bn
- Rating and tariff errors – USD5.03bn
- Billing and collection errors – USD4.48bn
- Subscription fee errors – USD4.23bn
- Usage errors – USD4.09bn
- Network and systems outages – USD3.55bn
- Products with negative margins – USD3.40bn
- Stranded assets and underused equipment – USD1.77bn
- USD0.80bn – Excess operating costs
Revenue assurance in telecom and other industries is clearly a growing area of concern, with the global revenue assurance market size predicted to more than double from USD4.16bn in 2020 to USD8.71bn by 2027. Telecom operators accounted for over one-third (35.04%) of market value in 2019, and the industry is projected to see the fastest growth in the market over the forecast period, demonstrating the significant need for revenue assurance and business assurance solutions in this space.
Addressing revenue leakage challenges
RAG’s RAFMCS Survey 2021 identified funding of technology investment as the biggest challenge for addressing revenue assurance needs, with more than one-third (34%) of respondents citing this challenge.
Neural Technologies’ scalable, adaptable solution is designed to provide a cost-effective revenue assurance solution that can fit your unique business needs, with rapid ROI that quickly delivers value for the investment. Our proof-positive approach to revenue protection means transformation stakeholders and champions can evidence interventions to reduce revenue leakage, backed by a customized, user-friendly dashboard.
Finding skilled people to work in a revenue assurance team was also a key challenge, with 21% of respondents highlighting this challenge. Our portfolio of Optimus Platform solutions are specifically designed to be user-friendly and easily adopted by any business. That means genuinely intuitive and easily deployed solutions that can fit into existing business structures.
Our machine learning experience also offers additional support to aid the work of existing risk and revenue management teams, providing automated decisions for standard and low-risk cases, leaving available talent clear to focus on any high-value or high-risk revenue events on a flexible threshold approach.
Adapting to revenue leakage needs
Neural Technologies’ own advanced revenue assurance solutions are designed with the goal of making it easier to optimize revenue processes, empowering your staff and reducing exposure to revenue leakage.
Our solutions are customizable to your own operating environment, allowing for an adaptive deployment that meets your needs.
Revenue assurance is designed to act as a protection to your revenue ecosystem. It provides comprehensive and constant analysis of any revenue or charging events, working to identify revenue leakages as and when they may occur, and quickly moving to flag and address those leakages. That automated approach is like a safety net constantly analyzing data in the background, helping ensure that leakage events don’t ‘slip’ through the net.
Neural Technologies’ Business Assurance solution echoes the benefits of this automated approach, leveraging both automated and semi-automated controls and monitoring tools to identify and resolve risks, greatly improving business process management.
Ultimately, a revenue assurance and business assurance solution needs to adapt to the operating landscape. That’s why flexibility is at the heart of our own offer—easily deployed, quickly adopted, and easily adapted to your own revenue profile and business ecosystem.
Revenue assurance must be proactive in the current landscape. With accidental revenue and cost leakages costing communication service providers (CSPs) USD42.59bn in 2021, it’s clear that an effective solution is a priority for all enterprises.
Solutions like Neural Technologies’ advanced Optimus Platform approach provide comprehensive cover that can be easily adapted and adopted by your business, helping eliminate revenue leakage before it hits the bottom line.
Optimus Revenue Assurance and Business Assurance help enterprises quickly identify potential revenue leakage incidents as they occur, reducing potential revenue loss, and protecting the finances of customers.