The telecommunication industry faces many challenges in terms of competition, regulations, technology shifts, constant innovations, and customer demand for new features and services. One of the challenges facing telco companies is the difficulty to gain insights from all the data they generate.
Telco enterprises generate huge amounts of data from mobile phone usage, call detail records, network equipment, billing information, server logs and the growing connectivity of the subscribers and users.
Analyzing this data by using a centralized BI tool provides telcos with a competitive advantage. They will be able to improve overall network performance, optimize service levels, minimize overhead costs and maximize profitability by ensuring customer loyalty.
“The adoption of analytics in telecommunications is intended to improve visibility into core operations, internal processes and market conditions, discern trends and establish forecasts.” -Gartner.
The use of BI will enable an enterprise to stay ahead of competitors and always anticipate customer needs. BI allows organizations to make data-driven decisions about investments in order to achieve targeted profit margins. The enterprise will achieve a unified view of data even if it comes from multiple data sources and departments. Users can analyze and view data in beautiful dashboards that are easy to understand. They can also collaborate with colleagues, enrich the data with comments and annotations, and get notified when there are changes or anomalies in the data. Because of these and other benefits, BI is a top priority for many Telco companies.
According to Gartner, global spending smart data technologies and solutions will grow to $3.8 trillion by 2019. Out of that sum, $1.45 trillion is targeted at communications services. Another report, “Global Data Analytics Market in Telecom Industry”, states that the telco industry’s use of data analytics tools is expected to grow at a compound annual rate of 28.28% until 2018.
The Secret to Success is Connection
The secret to success, especially in a Telco enterprise, is connection. Telcos generate data in different departments and need to somehow merge it and find correlated insights in it. This is impossible to do with federated BI. Federated means each department is working by itself. Each user works on his desktop. By working in desktops, the insights they find stay only in their domain, so other departments can’t learn from them. Not only that, but not everyone in the organization sees the same version of the data. Different users see different numbers and different insights, leading to multiple versions of the “truth”. Eventually, what starts as a project for data analysis and insights turns into data chaos and Excel Hell.
That’s why Telco organizations need to move to a centralized BI model. Centralized is connection. All users can work in a unified web solution, where the data is updated in real-time and they all see the same version of the truth. Using a centralized BI tool, users can analyze data from different departments like marketing, finance, customer service, sales and engineering. With well-set data permissions and restrictions, departments can share resources and insights. This creates a holistic analysis, where everyone shares a single version of the truth and everyone can benefit from each other’s findings, instead of them being siloed in separate departments and desktops.
Centralized BI allows users to do modeling of different scenarios. They can analyze different data sources to determine avoidable truck rolls, improve customer experience, find ways to lower service costs, and create data-driven expansion strategies. Users can also monitor core business processes and KPIs. Panorama Necto even sends automatic alerts to a user’s email whenever the data of the KPI they are following changes.
The possibilities are endless. But we would like to highlight some more benefits in two main areas that concern Telco companies: the customer and the network.
Customers and Business Intelligence
Necto gives automatic insights about customer behavior: The correct analysis on how subscribers use a service or their viewing habits can yield insights that can reduce churn, improve customer retention, and target specific products and services to specific segments.
One of Telco’s biggest challenges is to drive churn down and to maintain market differentiation. The key to achieve this is to improve customer experience.
Using BI, telco organizations can offer a great customer experience. They can launch micro-segmented campaigns to prevent churn. They can analyze and categorize customers into segments according to behavior and demography. They can gain insights that will enable them to do effective segmentation, targeting, and positioning. This means that organizations present the right offer to the right person in the right context. Conversion rates improve and by using BI, the company can respond with data-driven actions to the constantly evolving market conditions and ever changing subscriber needs.
Cross-analyzing data, such as subscriber usage patterns, billing information, purchase history, device preferences, demographic data and location can let you identify upsell and cross-sell opportunities. Then you can launch individual upgrade campaigns targeting customers based on their own preferences and purchase history.
Telcos can also use BI to track customer journeys. These are a combination of customers’ interactions with the company and where they are in the customer lifecycle. By analyzing customer journeys and other data, organizations can offer them the next best deal at the appropriate time. This helps turn potential customers into real customers. And it also helps prevent churn.
Customer churn is one of Telco organizations’ biggest concerns. According to a research conducted by Ovum, Telco operators worldwide can be sure to keep only half of their existing customers over the next year. These are scary statistics. But luckily, BI enables organizations to analyze data to prevent churn. How? By analyzing quality of service, billing information, and network performance, they can create prevention strategies. Organizations can analyze product logs and customer call data records across networks to gain insights that measure carrier performance against SLAs and quality of services to the end user. They can also analyze customer behavior and identify the customer most likely to defect. Then, they can take the necessary steps to prevent this. For example, they can launch customer retention campaigns.
Network capacity is a high priority resource for Telcos; and they will need to continue investments in their networks to keep up with growth in mobile data. It is estimated that Telco enterprises will have to invest as much as 20% of their yearly revenues into capital expenditure. BI can help organizations prioritize and make the right decisions when it comes to network expansion plans.
Enterprises can analyze coverage data like percentage of land covered with services, percentage of population covered with services, average land unavailable to services, and more in an interactive way by using GEO-analysis capabilities. Necto is the only solution that allows users to see exceptions reflected on the map as well. In addition, telco organizations can integrate and analyze data from multiple sources, such as subscriber, network, traffic, and location, to get insights that improve network capacity planning.
Using BI, organizations can analyze network traffic in real time to identify the periods when the network usage is high. Then they can take steps to relieve the congestion, preventing potential outages. Then they can determine a new expansion strategy for the area. And on the other hand, when there is an area with excess network capacity, they can launch specific marketing efforts to increase uptake. Network capacity optimization can save millions of dollars every year.
So, why Necto?
A good BI solution must provide an easy deployment, beautiful dashboards, top of the line analytics, automatic insights and KPI alerts; all in a centrally managed system. Users need to connect multiple data sources, consolidate and mashup all the data. They need to scale and deploy in a secure manner, in a centrally administered environment that does not require scripting. Users need to be able to automatically receive KPI alerts and notifications all the time to be aware of what is happening in the business.
Necto offers all that, enhanced in a platform that allows you to collaborate, share, and discuss your findings. It uncovers the hidden insights in your data and presents them in beautiful dashboards with infographics. It is an on premise solution with a web deployment, that is centrally managed and secure.