EAM-Supporting the Network Fixed-Asset Lifecycle
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Enterprise asset management for telecommunications companies KPMG’s Technology Enablement Solutions practice includes experienced telecom specialists who can help companies assess, design, and integrate leading EAM processes, technologies, and controls. We use an operational approach that integrates people, processes, applications and data to achieve desired cost savings, operating efficiencies and return on assets. This approach is also used to demonstrate compliance for Sarbanes-Oxley Act (SOX) reporting requirements and International Financial Reporting Standards (IFRS) involving revenue and cost recognition. Why KPMG? KPMG teams have helped major telecom companies around the world to support their technology and business objectives. For EAM, we take a multi-disciplinary approach that involves finance, accounting, risk and compliance, operational controls, external and internal audits, forensics and other key areas. Equally important, we develop EAM programs that balance near-term needs with long- term sustainability. Near-term needs include tax savings, appropriate inventory valuation methodologies, interim compensating controls, and the development of effective ways to identify assets. Long-term sustainability involves organizational restructuring as well as change management related to process, technology, risk and compliance. Enterprise asset management for telecommunications companies EAM and IFRS IFRS requires physical assets to be depreciated at the component level, a key issue for telecom companies supporting landline systems. KPMG’s EAM programs can help companies address IFRS recognition and measurement requirements in a number of ways. Physical network asset data can be captured in real time and transmitted directly to the fixed assets module (ledger) of the enterprise resource planning (ERP) application. In addition, asset data in the field can be reconstructed to support restatement, if required. Assets can also be identified at the component level to support depreciation. Finally, KPMG’s EAM tested methodologies are designed to provide data in the format required for systems supporting IFRS. 2 Requisition 3 Controls 4 Purchase Order 5 Goods Receipt 6 Warehouse 7 Testing & Configuration 8 Shipping 9 Field Install Asset Tracking Application Finance & Accounting Financial Reporting ERP Fixed Assets Tax IT Network Supply Chain Data 1 Buy Decision 10 Disposition $ The effective integration of people, processes, applications and data provides the necessary foundation for Enterprise Asset Management to achieve desired cost savings and operating efficiencies. EAM: Supporting the Network fixed-asset lifecycle For today’s telecommunications companies, successful enterprise asset management (EAM) is central to maximizing return and minimizing operating costs related to capital investments. EAM involves the management of Network fixed assets across departments, locations, facilities, and business units of an enterprise. Supporting the fixed-asset lifecycle, EAM incorporates planning, purchasing, controls, receipt of goods, warehousing, testing and configuration, distribution, installation, maintenance and final disposition of physical components.
description
Network Fixed Asset Life Cycle
Transcript of EAM-Supporting the Network Fixed-Asset Lifecycle
Enterprise asset management for telecommunications companies
KPMG’s Technology Enablement Solutions practice includes experienced telecom specialists who can help companies assess, design, and integrate leading EAM processes, technologies, and controls. We use an operational approach that integrates people, processes, applications and data to achieve desired cost savings, operating efficiencies and return on assets. This approach is also used to demonstrate compliance for Sarbanes-Oxley Act (SOX) reporting requirements and International Financial Reporting Standards (IFRS) involving revenue and cost recognition.
Why KPMG?KPMG teams have helped major telecom companies around the world to support their technology and business objectives. For EAM, we take a multi-disciplinary approach that involves finance, accounting, risk and compliance, operational controls, external and internal audits, forensics and other key areas. Equally important, we develop EAM programs that balance near-term needs with long-term sustainability. Near-term needs include tax savings, appropriate inventory valuation methodologies, interim compensating controls, and the development of effective ways to identify assets. Long-term sustainability involves organizational restructuring as well as change management related to process, technology, risk and compliance.
Enterprise asset management for telecommunications companies
EAM and IFRS
IFRS requires physical assets to be depreciated at the component level, a key issue for telecom companies supporting landline systems.
KPMG’s EAM programs can help companies address IFRS recognition and measurement requirements in a number of ways. Physical network asset data can be captured in real time and transmitted directly to the fixed assets module (ledger) of the enterprise resource planning (ERP) application. In addition, asset data in the field can be reconstructed to support restatement, if required. Assets can also be identified at the component level to support depreciation. Finally, KPMG’s EAM tested methodologies are designed to provide data in the format required for systems supporting IFRS.
2Requisition
3Controls
4Purchase
Order
5GoodsReceipt
6Warehouse
7Testing &
Configuration
8Shipping
9Field
Install
Asset Tracking Application
Finance & Accounting
Financial Reporting
ERP Fixed Assets
Tax
IT
Network
Supply Chain
Data
1Buy
Decision
10Disposition
$
The effective integration of people, processes, applications and data provides the necessary foundation for Enterprise Asset Management to achieve desired cost savings and operating efficiencies.
EAM: Supporting the Network fixed-asset lifecycleFor today’s telecommunications companies, successful enterprise asset management (EAM) is central to maximizing return and minimizing operating costs related to capital investments.
EAM involves the management of Network fixed assets across departments, locations, facilities, and business units of an enterprise. Supporting the fixed-asset lifecycle, EAM incorporates planning, purchasing, controls, receipt of goods, warehousing, testing and configuration, distribution, installation, maintenance and final disposition of physical components.
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Contact us
Joe IncorvatiManaging Director O: 973-912-6386 M: 732-241-6578 E: [email protected]
kpmg.com
Developing a successful EAM program
Project Life Cycle
Project Management
Risk and Controls/Security & Resiliency
Strategyand
Planning
BusinessRequire-ments
andVendor
Selection
Design
Configure/Build/Imple-ment
Go-LiveSupport
KPMG can help telecom companies develop an integrated yet flexible EAM program designed to enable business value and improve risk management.
KPMG professionals use tested methodologies and leading practices to support the following project stages:
Strategy and planning, with the development of an application strategy, a business case, organizational change management requirements, sourcing strategies, and the establishment of a project management office (PMO)
Business requirements, including the identification of current-state processes, the development of future-state processes, a gap analysis, and assistance with the selection of vendors and systems
Design, involving both conceptual and logical design along with the development of a data management strategy
Configure/build/implement, including system, integration and user acceptance testing, the assessment of data conversion, and functional conversion plans
Go-live support, involving a pre go-live readiness review, organizational change management, training, knowledge transfer, and post go-live support.
As the project moves through each stage, the KPMG team pays careful attention to critical factors necessary for success. For example, key stakeholders need to be involved from the beginning. These stakeholders can include network engineers, construction managers, network operations professionals, field technicians, warehouse managers and representatives from finance, tax and supply chain management. In addition,
IFRS, SOX and other regulatory requirements need to be fully addressed, including the implementation of key controls for asset acquisitions approval, the development of appropriate procurement details to substantiate asset costs, and the discrete identification of assets acquired to substantiate their existence.
In addition, the EAM program is designed to verify assets and linkages between network engineering and finance systems. A physical inventory is needed to establish a baseline inventory and provide the ongoing physical verification of assets. The EAM program should also integrate supply chain, finance and network management systems, along with bar code solutions to facilitate asset tracking. Finally, EAM program management needs to be a priority based on active executive sponsorship.
Benefits with KPMG and EAMWith KPMG specialists, an EAM program can deliver the following benefits:
Tax and operational cost savings through leveraged purchasing power, improved materials management and forecasting, enhanced financial controls, and more accurate asset valuation
Improved reporting to management, investors, and regulators, including decisions based on more reliable financial information, enhanced support for regulatory and tax compliance, reduced audit exposure, and established processes for IFRS reporting
Enhanced asset management, including management by geographic location, better inventory management and utilization of spares inventory, and improved management of warranties and repair
Faster service restoration due to the accurate location of asset listings, visibility to up-to-date spare/test equipment inventory by location, visibility down to the part revision level at a site, and comprehensive listings of regulatory and safety items by location
More effective decision making with the ability to perform what-if impact scenarios among available alternatives such as asset classes, asset valuation, depreciation and tax benefits.
