Competition in the telecommunication market increases every day. To remain profitable and competitive, organizations must understand their operational processes as well as the market behavior, not just in terms of customer but also at the revenue assurance perspective.
Even though the year of 2008-09 and 2009-10 was clouded by recession, telecom was the only sector which still was holding the war front despite. Telecommunications Industry Association (TIA) had projected steady U.S. and global telecom market growth in the next few years, producing an estimated $4.9 trillion in revenue in 2011.In the U.S., the telecom market is expected to see 7.2% in compound annual growth rate (CAGR) through 2011, with a 12.5% projected increase globally. For Internet access alone it could mean revenue will exceed $50 billion by 2011, according to the report.
The volume in increasing for internet, wireless, IP services, VAS and so is the competition. The turnover is increasing but the ARPU is reducing leading to a much reduced margin for telecom providers. This calls in for a very smart and strategic decision making for the telecom service providers. The decision making capability can be made easier with Business analytics and business intelligence tools and techniques to make use of the tremendous data that the companies are sitting on. Companies need a way to collect more than just data. They need a way to measure and access the knowledge gleaned from this information, and hence, use it to generate competitive intelligence, increasing and improving their operational efficiency.
Thus Business Analytics and Business Intelligence play a very important role in the success of telecom operators. Integrated solutions will not only provide telecom companies operators with a management reporting capability but also enable them with real-time intelligence that helps them take smarter and well informed decisions. Advanced business analytics also help them to maximize their revenue potential from a short window of opportunity by a predictive analytical capability.
The Key Performance areas for analytics in Telecommunications are
- Customer Relationship Management
- Account Management and Revenue Management
- Customer churn and customer retention
- Market segmentation and Market Penetration
- Quota Attainment
- Utilization
- Fraud
- Network Planning
- Network Utilization
- Call Routing
- Switch Utilization
- Service Call Monitoring
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| Source:- idcindia.com |
- Operations and Budget Analysis - Operations and Budget Analysis enables to monitor from numerous back-end systems that store the data. Predictive trend analysis helps to monitor budgets, customer satisfaction, sales on a daily basis by executives. Based on the churn of the customers, feedback from existing customers, inquiries from a particular area, tickets and complains from customers
- Capacity management - Capacity management Analysis enables to identifying unused or available IT capacity for cost saving. Helps to provide accurate information on capacity usage of the infrastructure. Based on the products and services in a particular area, the usage of the products and services in an area, sales and tariff plans in a particular area, consumer behavior, usage pattern analysis, trend analysis, customer profiling and segmentation.
- Network operations management - Network operations management Analysis evaluates field technician expenses due to network congestion. Helps to optimize network efficiency after identifying potential areas that needs improvement
For selling a Business Analytics solution in a Telecom industry the Business Analytics vendor needs to have
- Understanding on business of the client
- In depth study of the vision and mission of the client
- Annual performance targets of the client
- Market positioning of the client in the Gartner Magic Quadrant
- Business model of the telecom company
- Target customers
- Unique selling proposition
- Clients, partners, alliances, vendors
- Revenue Model
The below table acts as a reference for reactive to proactive business analytics
Thus Strategy for adopting Analytics will enable Telecom Companies to perform better in the competitive world and their vision of connecting the world through communications will be Redefined
*** More detailed report is present separately
*** More detailed report is present separately
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