Andersen Consulting Positions TDS for Growth in Telco Market Firms Deliver One of the First Telco R/3 Implementations.

CHICAGO--(BUSINESS WIRE)--Sept. 23, 1996--To enable its continued growth in the competitive telecommunications industry, Telephone and Data Systems (TDS) teamed with Andersen Consulting to reengineer its key financial processes. A $21 million effort called World-Class Information Now (WIN) has successfully reengineered TDS' general accounting, accounts payable, procurement and decision support processes and implemented SAP(TM)'s R/3(TM) client/server software system to support them.

The WIN project was particularly significant for two reasons: one, TDS is one of the first telecommunications providers in North America to have implemented R/3; and, two, TDS and Andersen Consulting see the WIN project deliverables as the basis for an end-to-end R/3 implementation template that will minimize risk and provide significant workday savings to other telecommunications companies interested in implementing the enterprise-wide solution.

TDS and Andersen Consulting completed the WIN Project on-time and under budget. The new system replaced TDS' financial information systems, which had been installed when the company was just one-eighth its current size ($960 million in revenues), and were not flexible enough to keep up with the company's growth.

Bob Meixner, Andersen Consulting partner, said, "We teamed with TDS to determine how to best position them for rapid growth in the hotly competitive telecommunications industry. The WIN Project provides TDS with the streamlined financial processes and flexible systems to support and enable exponential growth."

"The greatest benefit of WIN is that it significantly improves our executives' access to critical, timely information," said Joyce Zeasman, project manager and assistant controller - reengineering at TDS. "Our new, reengineered financial processes and systems should greatly enhance our ability to support expanded lines of business and help promote profitable growth."

TDS expects a number of specific benefits from the new processes and systems, including: - A 23% reduction in total accounting and finance costs relative to revenues;

- A reduction in the time needed to close, consolidate and publish month-end financial statements from 15 days to 3;

- A reduction in a number of other cycle times, including a 60% reduction in the purchasing cycle;

- The streamlining of administrative tasks such as expense classification, order receiving, reconciliations, and adjustments.

- Increased procurement leverage through consolidation allowing volume discounts, better negotiation, and faster delivery.

"In addition to all the process benefits, TDS also expects to reduce their long term support and maintenance costs by pursuing a single hardware and software strategy," said Jerry Gleisner, Vice President - Corporate Systems, TDS.

About TDS

Telephone and Data Systems, Inc. (TDS) is a diversified telecommunications company which provides high-quality telecommunications services to approximately two million consolidated cellular telephone, local telephone, and radio paging customers in 37 states and the District of Columbia. TDS plans to begin to provide PCS services in early 1997. TDS's business development strategy is to expand its existing operations through internal growth and acquisitions and to explore and develop other telecommunications businesses that management believes utilize TDS's expertise in customer-based telecommunications.

About Andersen Consulting

Andersen Consulting is a $4.22 billion global management and technology consulting organization whose mission is to help its clients change to be more successful. The organization works with clients from a wide range of industries to link their people, processes and technologies to their strategies. Andersen Consulting has more than 41,000 persons in 47 countries. The firm's Communications Industry Group, with nearly 4,000 communications consultants worldwide, serves most of the world's major carriers, including telecommunications carriers, cable TV companies, and wireless and satellite carriers. The group delivers end-to-end solutions for transforming its clients' business processes, including integrating customer care with provisioning and network maintenance, creating and supporting the deployment of interactive multimedia services, and streamlining overall enterprise management. -0-

SAP and R/3 are trademarks or registered service marks of SAP AG 

CONTACT: Jim Sloan

Andersen Consulting

312-507-8108

[e-mail]

or

Joyce Zeasman

TDS

608-828-8320

or

Jerry Gleisner

TDS

608-282-8341