In actuality, consolidated billing becomes more and more popular in the contemporary business environment. In such a context, the decision of Etisalat to shift to the consolidated billing approach is reasonable because it can bring considerable benefits for the company in regard to the improvement of the company-customer relationships and environmental policies of the company. Therefore, the consolidated billing approach is worth implementing by Etisalat.
In fact, the consolidated bills approach is more efficient because it facilitates payment and transactions as many bills go in one bill that is convenient for the company and its customers (Arcari, et al, 2004). The consolidated billing approach contributes to the improvement of the company-customer relationships because both the company and customers benefit from this approach. On the one hand, the company can save costs on maintenance of multiple groups and catering to their specific needs (Aldhizer, 2009). On the other hand, the company can improve its relations with customers since it is more convenient for customers to pay in one bill (Biscardi, 2001). Therefore, Etisalat can improve its relations with customers after the introduction of the consolidated billing approach because customers will enjoy the new approach that facilitates transactions and billing. For instance, customers will not need to pay numerous bills. Instead, they will pay just one bill.
Furthermore, in a long-run perspective, the consolidated bills approach can increase the productivity and the profitability of the company (Anderson and Lanen, 2002). Therefore, the company can benefit from the introduction of the consolidated billing approach. The increase of productivity and saved costs can stimulate the faster and more efficient business development of Etisalat.
However, the company should be aware of the fact that, while implementing the consolidated bills approach, the risk of errors in billing arises (Ofri, 2004). In this regard, customers may suffer from errors in billing that may raise the problem of the customer dissatisfaction, especially, if the company fails to resolve problems caused by errors in billing fast and respectively to customers’ needs and expectations.
In addition, consolidated bills approach can increase the time of transactions because multiple bills are processed in one (Aldhizer, 2009). In such a situation, the processing of information and transactions may take a longer time than traditional transactions that use multiple bills. However, such inconveniences are insignificant compared to benefits of consolidated billing approach the company can use.
At this point, the increase of Etisalat profits may be one of the major positive effects of consolidated billing for the company. As the company saves costs on the consolidated billing, it can use them more efficiently and invest in new projects or use otherwise to increase its profits.
Finally, the company can save on paper work and database management that will have a positive impact on the environment (Aldhizer, 2009). In such a context, the introduction of the consolidated billing approach can improve the public image of the company because the company will manifest its concerns about the environment protection. The introduction of environment-friendly approach will have positive effect not only on the environment but also on the public image of the company.
Therefore, Etisalat can count on the consistent improvement of its performance after the introduction of the consolidated billing approach. First, the company will improve its relations with customers and increase the customer satisfaction. Second, the company will save costs on billing and increase its profits. Finally, the company will introduce environment-friendly approach.
Aldhizer, G.R. (2009). “Fraud and Errors: a Ticking Time Bomb That Must Be Defused,” The Journal of Government Financial Management. 58(4), p. 13-18.
Anderson, S.W. and W.N. Lanen. (Oct., 2002) “Using Electronic Data Interchange (EDI) to Improve the Efficiency of Accounting Transactions,” The Accounting Review, 77(4), pp. 703-729.
Arcari, R. et al. (2004). “The Electronic Fund Transfer System, “Journal of the Medical Library Association. 92(4), p.493-499.
Biscardi, R. (2001). “Appropriate Billing of Human Subject Research Charges,” Journal of Research Administration. 2(1), p. 25-34.
Ofri, D. (Jan. – Feb., 2004). “In Practice: Billing Practices,” The Hastings Center Report, 34(1), pp. 7-8.