You hear a lot about big data these days, and no industry deals with the volume, velocity and variety of data like the communications industry. But having big data and being able to harness the potential of it are two completely different things. This webinar will review the market conditions and potential applications for strategic analytics within the communications industry, and describe how service providers can use this insight to: 1) Integrate data from Planning, Operations, and other departments to find hidden opportunities 2) Make faster, more informed network and customer decisions, with the data to back them up 3) Identify new market and service opportunities before their competition 4) Get an intimate understanding of their customers' preferences in order to improve retention rates 5) Drive a measurable improvement in revenue, network performance and operational efficiency
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1. Strategic Analytics: Turning Big Data Into a Big Advantage A
Light Reading Webinar Sponsored by
2. Todays Presenters Ari Banerjee Senior Analyst Heavy Reading
Bob Laurent Communications Industry Marketing Manager Alteryx
3. OPERATOR PAIN POINTS Looking for customer profitability
analysis Trying to avoid fraud and revenue leakage Need for
real-time customer assistance Inability to optimize network
resources and offload traffic Need for integration of various
systems and devices Data silos are too spread out Lack of
information about customers Must have better forecasting for new
product rollouts
4. What do Operators want? On a scale of 1 to 5, where 5 is "a
huge problem" and 1 is "not a problem at all," please rate the
following competitive challenges for your company. (Data cut by
Wireless Operators) Unable to convert huge amount of data into
real-time actionable 3.89 insight Slow time to market with product
launches and changes to plans 3.82 Inability to provide real-time
upsell of services 3.82 Inability to provide customers with
self-controlled spending limits 3.55 Top 3 Inability to provide
creative charging packaging for advanced data 3.54 competitiv
services e challenges Inability to provide creative package bundles
3.5 for wireless Inability to provide effective loyalty programs
3.46 operatorsInability to allow customers to change their service
plan themselves 3.05 Source: Heavy Reading, 2011 (n=60) 2.5 2.75 3
3.25 3.5 3.75 4 Service providers surveyed feel that the inability
to convert huge amounts of data into real-time actionable insight
is one of the leading reasons for competitive challenges The second
leading reason is slow time to market with product launches and
change to plans followed by the inability to provide real-time
upsell of services
5. Key reasons why offers and promotions are difficult to
implement What are the key reasons why offers and promotions are
difficult to implement in your current environment across data and
non-data services? (Please choose all that apply) Disparate product
catalogs 30.0% 16.7% 60.0% 33.3% 37.5% Siloed billing platforms
20.0% 66.7% 60.0% 44.4% 50.0% Lack of single place for charging and
QoS rule management 50.0% 41.7% 60.0% 44.4% 62.5%Existing BSS
systems lack real-time transaction management ability 60.0% 33.3%
40.0% 88.9% 50.0% Lack of unified view of subscribers and their
services 40.0% 41.7% 80.0% 77.8% 50.0% Lack of unified offer
management capability 70.0% 58.3% 60.0% 44.4% 75.0% 0% 50% 100%
150% 200% 250% 300% 350% APAC NAR South America Europe MEASource:
Heavy Reading, 2011 (n=60) CSPs clearly feel that the lack of a
unified offer management capacity and lack of unified view of
subscribers are the key reasons why offers and promotions are
difficult to implement
6. Integrating Data Sources Continue to Challenge CSPs What are
the top 3 operational challenges that are a priority? Operators,
regardless of type Top 3 operation challenges select integrating
data sources as their #1 challenge Ability to integrate all
necessary data 2.75 sources Removing IT from the process of
developing reports is still a critical Ability to create ad-hoc
reports for business stumbling block, business users users 2.4 must
be able to create themselves Availability of advanced analytics 2.2
CSPs still have operational capabilities stumbling blocks to being
smarter about the business Meeting batch window for data 1.8
consolidation and loading Operators struggle to understand the
impact of operational issues across wireline, wireless and Meeting
batch window for standard reports 1.55 cable as well as across
specific products N = 50 0 0.5 1 1.5 2 2.5 3 Source: Heavy Reading,
2011
7. Advanced analytics overarching architecture for service
providers 6
8. Holistic integration of Data critical for efficiency &
optimum customer experience What benefits do you think youll obtain
by integrating data from diverse sources? (Select up to three
answers by indicating 1, 2 and 3 according to priority, with 1
being the most important and 3 being least)120100 4.8% 33.3% 36.4%
80 42.9% 50% 69.2% 60 100% 31.8% 44.4% 40 16.7% 52.4% 20 31.8%
30.8% 33.3% 22.2% 0 Up-sell services Enhance experience Optimize
network Better SLA management Prevent leakage/fraud Pre-emptive
assurance Least important Important Most Important Source: Heavy
Reading, 2010
9. Different Approaches to Analytics Mapping (GIS) tools
Visualization tools Traditional BI and analytics tools Data
warehouse solutions Strategic analytics tools
10. What are the Most Strategic CSP Decisions? Strategic
Planning: Engineering: is our LTE which markets should network
where our we expand service to? best customers travel? Marketing:
what new Operations: how do we services would raise minimize
network our strategic value? outages and truck rolls? CEO: how do I
evaluate Customer Care: another carriers how do we reduce footprint
for M&A? customer churn? Expanding your business with Driving
more revenue from your confidence existing network 2012 Alteryx,
Inc. Confidential. 9
11. Strategic Decisions Require Data Product Customer Revenue
Local Network Network Element Mgmt. Mgmt. Mgmt. Data Planning
Operations Mgmt. Business Support Systems (BSS) Operational Support
Systems (OSS) Product/service availability Equipment inventory
Product/service pricing Facility assignment Marketing
promotions/discounts Capacity planning Store locations Service
order entry/activation Partner management Wireless coverage
Customer service history Call detail records (CDR) Customer care
history Service availability/SLAs Customer-facing IT infrastructure
Equipment provisioning Billing records Equipment monitoring/alarms
Etc, etc, etc. Etc, etc, etc. 2012 Alteryx, Inc. Confidential.
10
12. But, We Live in a World of BIG DATA Product Customer
Revenue Local Network Network Element Mgmt. Mgmt. Mgmt. Data
Planning Operations Mgmt. Business Support Systems (BSS)
Operational Support Systems (OSS) Device Generated Data Cloud
Applications Social Media 2012 Alteryx, Inc. Confidential. 11
13. Recap: Top 3 operation challenges for a CSP And, connecting
users with the data they need is a significant challenge N = 50
Source: Heavy Reading, 2011 2012 Alteryx, Inc. Confidential.
12
14. Full Spectrum of Packaged MarketEnterprise Data &
Customer Data Enrich Integrate Analyze Share Integrate massive Use
Put strategic insight and volumes of analytical, spatial, and
analytic applications in disparate data predictive tools to the
hands of decision generate network and makers customer insight 2012
Alteryx, Inc. Confidential. 13
15. Strategic Analytics: Applications in Many Industries
Marketing Modelg & Cable/ Data Service Restaurants Technology
Broadband Consulting Retail Consulting Telecom Consulting Media
Providers Analytics Modling & Consumer Modling & Data Real
Estate Products Government Technology Financial Consulting Auto
Consulting Other Analytics Analytics 2012 Alteryx, Inc.
Confidential. 14
16. Application: Subscriber Churn Mitigation FACT: Do the math
Wireless service demand is saturated with 99.3% expected Assume
Subscriber Base = 10 million by 2013 Churn Rate = 4.0% per quarter
FACT: 400,000 subscribers are leaving every quarter 3% to 5% of the
wireless @ $50.85 per month: industrys 302 million subs Revenue
loss per quarter = $40.68 million switch carriers every quarter
FACT: With similar churn rates, the compounded loss is: Average
revenue per user Loss in One Year: 1.6M subscribers = $529 million
(ARPU) is $50.85 Loss in Two Years: 3.2M subscribers = $2.03
billion If you can lower your churn rate by even 0.1% (to 3.9%):
Savings in One Year: 40,000 subscribers retained = $13.2 million
Savings in Two Years: 80,000 subscribers retained = $50.8 million
2012 Alteryx, Inc. Confidential. 15
17. Many Variables impact a Customers Experience Billing Tower
Locations Customer Care Store Locations Contract Details Usage Data
Device Details Demographics 2012 Alteryx, Inc. Confidential.
16
18. Customer Experience Management programs can drive a
significant reduction in churn Billing Tower Locations Customer
Care Store Locations Contract Details Usage Data Device Details
Demographics 2012 Alteryx, Inc. Confidential. 17
19. Application: Capital Budget Optimization FACT: FTTH
deployment cost = $1,704 (average) per HH 2012 Alteryx, Inc.
Confidential. 18
20. Application: Capital Budget Optimization FACT: Its hard to
build a business case for infrastructure upgrades in rural America,
which makes the Digital Divide even wider 2012 Alteryx, Inc.
Confidential. 19
21. Prioritize Markets by Revenue Potential Optimal DMAs 2012
Alteryx, Inc. Confidential. 20
22. Predict ROI of Network Upgrades Combine RF planning data
Then, overlay demographics and CDR data to with actual drive test
data identify high-value customers and prospects 2012 Alteryx, Inc.
Confidential. 21
23. Other Applications: Competitive Engineering Set-top Box
Threat System Analysis Analysis Integration Compare competitive
broadband Determine program viewing Combine data from legacy and
availability with voice and data preferences by household:
next-generation OSS platforms: service terminations: Enable
highly-targeted Unify facility utilization Find voice customers
ready to advertising options reporting across all services cut the
cord Set true advertising rates Get a real-time view of Create
segmented win-back/ Utilize demographics to service availability
retention campaigns with find similar households Immediately
determine targeted messaging impacted customers during Increase
your strategic Monitor social media value to advertisers network
outages conversations 2012 Alteryx, Inc. Confidential. 22
24. Strategic Analytics can also drive Operational Efficiency
Previous New Processing Process Hours Processing Processing Time
(hh:mm) Gained Time Time Improvement Rate Center Process 120:00
1:33 118:27 99% Marketing Zip Code Process 160:00 1:12 158:48 99%
Collateral Map Process 120:00 8:11 111:49 93% Roaming Partner
Selection Process 40:00 0:30 39:30 99% FCC Form 477 Report Process
20:00 1:00 19:00 95% Market Map Process 80:00 8:00 72:00 90% 540:00
20:25 519:34 97% 67.5 days 2.5 days 65 days After implementing
strategic analytics, U.S. Cellular achieved a 97% reduction in the
time to achieve analytic output. They also deferred adding new
headcount to their department due to efficiency gains. 2012
Alteryx, Inc. Confidential. 23
25. Summary Consider: Communications Service Providers 330
million wireless subscribers in the U.S. handle the Volume,
Velocity and collectively send 2.30 trillion text messages Variety
of Big Data in all aspects spend 2.29 trillion minutes talking
(CTIA) of their operations Call detail records (CDR) are collected
in real time about all aspects of a call, and are retained for up
to year (sometimes longer) Strategic Analytics solves the problem
of connecting users with internal and external data Todays
analytics tools have evolved to include advanced spatial and
predictive capabilities that GIS tools and dashboard products cant
match Strategic Analytics drives faster and more confident network
and customer decisions to help you gain a competitive advantage
2012 Alteryx, Inc. Confidential. 24
26. To Learn more about Strategic Analytics www.alteryx.com
Heavy Reading White Paper @alteryx The Advantage of Analytics in
the Communications Industry 2012 Alteryx, Inc. Confidential.
25
27. Benefits of Strategic Analytics for YOUR market Wireless
Solution Brief Wireline Solution Brief Cable Solution Brief
Prioritizing 4G Gaining a Competitive Leveraging your Data to
Network Investments Advantage in a Dynamic Become a Strategic
Communications Market Network Partner 2012 Alteryx, Inc.
Confidential. 26
28. Try Alteryx FREE for 30 days Download a Free Trial 2012
Alteryx, Inc. Confidential. 27
29. Inspire 2013: Seize the Power of Strategic Analytics March
5-7, 2013 Phoenix Sheraton Downtown Hotel Learn More!
www.alteryx.com/inspire Overall the best single company sponsored
conference Ive ever attended. Antoinette Bowen, Sr. Marketing
Manager, AT&T Wireless 2012 Alteryx, Inc. Confidential. 28
30. Q&A Session Ari Banerjee Senior Analyst Heavy Reading
Bob Laurent Communications Industry Marketing Manager Alteryx
31. Thank you for attending!Replay of the
Webinar:http://www.lightreading.com/webinar.asp?webinar_id=30043&webinar_promo=28454Upcoming
Light Reading Webinarswww.lightreading.com/webinars.asp
32. Key Terms Big Data Alteryx Big Data Analytics Heavy Reading
Big Data Analysis Light Reading Humanizing Big Data Bob Laurent
Strategic Analytics Ari Banerjee Predictive Analytics Customer
Experience Management Data Scientist Churn Analysis Data Artisan
Churn Analytics Data Analyst Competitive Threat Analysis Big Data
Gap Set Top Box Analysis Unstructured data Engineering System
Integration Analytics Platform Capital Budget Optimization
Unstructured Data Operational Efficiency