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<strong>ENT</strong>ITY WHITE PAPER<br />
LEAD-TO-CASH:<br />
THE VALUE<br />
OF BIG DATA<br />
AND ANALYTICS<br />
FOR <strong>TELCO</strong>
<strong>ENT</strong>ITY WHITE PAPER<br />
<strong>ENT</strong>ITY GROUP ADVISORY SERVICES<br />
LEAD-TO-CASH: THE VALUE OF BIG<br />
DATA AND ANALYTICS FOR <strong>TELCO</strong><br />
THE CHALLENGE OF THE DIGITAL AGE<br />
“The most<br />
meaningful way to<br />
differentiate your<br />
company from the<br />
competition, the best<br />
way to put distance<br />
between you and the<br />
crowd, is to do an<br />
outstanding job with<br />
information. How you<br />
gather, manage and<br />
use information will<br />
determine whether<br />
you win or lose.”<br />
Bill Gates<br />
Life in the Information Age continues to accelerate. The digital world is<br />
changing the rules, and telecommunications service providers are having<br />
to evolve from being process and account-oriented to focusing firmly on<br />
the individual. By combining products and plans, service providers are able<br />
to offer increased flexibility through unique customer journeys to service<br />
an increasingly competitive double, triple and quadruple-play market. But<br />
with this flexibility comes massive complexity and an exponential growth<br />
in data volumes.<br />
Successful operators are the vanguard of the digital world – adapting to meet the demand<br />
for individually tailored packages of services. Each of the component services must continue to<br />
demonstrate innovation – to outclass the competition, and to do so at ever an increasing pace.<br />
While struggling to keeping pace in its fast-moving markets, telcos face a nexus of additional<br />
pressures, including:<br />
• Stringent legal and regulatory requirements<br />
• Increasing costs in developing and maintaining technical infrastructure<br />
(people, equipment and fleets), and<br />
• Demand for a highly resilient ‘always on’ service.<br />
All whilst continuing to increase revenues, reduce operational costs and ensure that VIPs are<br />
treated with the due care and attention they demand and deserve. A lot of challenges in a<br />
highly competitive sector that are compounded by other disruptive technology - by 2018, telco<br />
companies are set to lose a combined US$386 billion to over-the-top (OTT) voice applications such<br />
as Skype and WhatsApp 1 .<br />
For C-Suite Executives, the revenue imperative from investment in Big Data and Analytics is clear.<br />
NS<br />
The promise of Big Data and Advanced Analytics<br />
• Over 7.4 billion mobile devices<br />
• 69% increase in global mobile data traffic in 2014, and<br />
• An expected seven-fold increase in mobile data traffic by 2018 2<br />
For the telco industry, Big Data is already here - real time and near real time analytics on large and<br />
overlapping data sets - and with it comes big opportunity as it continues to grow exponentially.<br />
Telecommunications companies are uniquely positioned to capitalise on this opportunity. They<br />
are at the epicentre of the communications industry, control its underlying infrastructure and are<br />
awash with data on how customers use, interact with and buy their products. The challenge now is<br />
how to unlock the power and potential of these strategic assets.<br />
2<br />
1. http://fortune.com/2014/06/23/telecom-companies-count-386-billion-in-lost-revenue-to-skype-whatsapp-others/<br />
2. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/white_paper_c11-520862.html
MANAG<br />
<strong>ENT</strong>ITY GROUP ADVISORY SERVICES<br />
<strong>ENT</strong>ITY WHITE PAPER<br />
Obstacles to implementation<br />
The potential for this technology for telecommunications companies is huge but its adoption will<br />
not come without challenges.<br />
Data Silos<br />
As in many industries, telecommunications companies have suffered from having to respond to<br />
pressures of growth, business and technology change. As a result, data has typically been defined<br />
at the business unit or department level (sales, network engineering, billing etc). Unfortunately,<br />
this approach has led to siloed information strategies, siloed solutions and data that contains gaps,<br />
duplications and errors. To be ready for Big Data, telcos must first put their houses in order.<br />
Enterprise Information Architecture<br />
Service providers need to extract insight from a great variety of data (voice, messages, GPS,<br />
location, field service, change management, customer care, connected devices, social media etc);<br />
data that is operating at different speeds. This information must be leveraged, often in real-time,<br />
to achieve business objectives such as improving the customer experience.<br />
Furthermore, legacy customer and operational information must be aggregated and processed<br />
using new tools, whilst ensuring data quality, accessibility and security across existing solution<br />
ecosystems for regulatory compliance.<br />
Without an effective enterprise architectural vision in place that meets the complexity of these<br />
requirements, telcos cannot capitalise on the competitive advantage that Big Data brings.<br />
Enterprise Thinking<br />
Big Data requires integration of information from different divisions, departments and systems<br />
across the enterprise. This involves each of those divisional and department heads and the system<br />
owners subscribing to a single corporate vision. It is often very difficult for a group of people, each<br />
with their own interests at heart, to agree on a common objective and the roadmap to the wealth<br />
of benefits that can be achieved.<br />
In a sector characterised by a lifecycle of global mergers, acquisitions, divestitures and expansion<br />
into multiple media markets, this challenge cannot be understated.<br />
3
<strong>ENT</strong>ITY WHITE PAPER<br />
<strong>ENT</strong>ITY GROUP ADVISORY SERVICES<br />
Key Business Drivers<br />
Enterprise Information Management provides the bedrock principles for Big Data and<br />
Analytics to succeed. It is the discipline of treating data as an Enterprise Asset - and - enabling<br />
the enterprise to capitalise on that asset.<br />
For each strategic information management initiative, telcos must identify key business<br />
drivers, gain executive sponsorship, and develop a business case that will deliver quantifiable<br />
ROI. Business drivers for telcos can be expressed in numerous ways, and are often<br />
interrelated:<br />
TELECOMMUNICATIONS - BUSINESS DRIVERS<br />
New products and services derived from analysis of customer behaviour<br />
and sentiment.<br />
Enhanced and responsive customer service and package configuration.<br />
Management of the customer experience based on cost-to-serve, value and<br />
relationship status.<br />
Focused targeting of marketing campaigns towards individuals.<br />
Real-time network optimisation for improved routing and for maximising<br />
the quality of service.<br />
Streamlined error diagnosis and problem management.<br />
Effective and efficient deployment of maintenance vehicles and personnel.<br />
Sophisticated detection of fraud and misuse of services.<br />
Revenue generation from new sources, such as selling insights about customers<br />
to third parties.<br />
Realising the benefits<br />
The potential of Big Data and Analytics comes with a profound challenge: Trust.<br />
• Have I the right quality of data to run my organisation efficiently?<br />
• How can I manage and combine the ever-increasing amount of data and have<br />
confidence in the result?<br />
NS<br />
• Can I measure and improve data quality?<br />
Sounds familiar?<br />
Success rests upon true Executive recognition of the importance of data as an organisational<br />
asset. Telcos executives now recognise that in order to succeed, they need to weave<br />
information management strategies, policies, procedures and solutions throughout the fabric<br />
of their operation so that raw data becomes timely, relevant and actionable information.<br />
4
<strong>ENT</strong>ITY GROUP ADVISORY SERVICES<br />
<strong>ENT</strong>ITY WHITE PAPER<br />
Information Management Strategy<br />
The purpose of the Information Management Strategy is to define an Information<br />
Architecture and strategy that meets the needs of your business as it changes.<br />
Once the strategy is understood and agreed, an optimal roadmap is identified for deriving<br />
the most business benefit from your information management projects as they are<br />
implemented incrementally. The objective is to quickly provide recommendations on areas<br />
where possible improvements could be made based on strategic goals/drivers.<br />
<strong>ENT</strong>ITY’S APPROACH<br />
Entity’s approach for Enterprise Information Management (E<strong>IM</strong>) orchestrates people, process and<br />
technology to deliver outcomes that have a direct correlation to strategic objectives. The following<br />
model represents this approach.<br />
ORGANISATIONAL<br />
STRATEGY<br />
ORGANISATIONAL<br />
GOVERNANCE<br />
DATA<br />
GOVERNANCE<br />
MODELLING, ARCHITECTURE,<br />
METADATA, CATALOGUING<br />
COMPLETENESS, ACCURACY<br />
AND INTEGRITY OF DATA<br />
DATA STORAGE, PRIVACY<br />
AND SECURITY<br />
INTEGRATION, INTEROPERABILITY,<br />
SOCIAL MEDIA AND OPEN DATA<br />
MANAGEM<strong>ENT</strong> OF METADATA, CATALOGUES,<br />
REFERENCE DATA AND MASTER DATA<br />
DOCUM<strong>ENT</strong> AND CONT<strong>ENT</strong> MANAGEM<strong>ENT</strong>, DATA WAREHOUSE, BI AND ANALYTICS,<br />
TRANSACTION MANAGEM<strong>ENT</strong> (ERP, CRM etc), AUDIT DATA, BIG DATA<br />
OWNERSHIP<br />
DESCRIPTION<br />
QUALITY<br />
ACCESS<br />
USAGE & SHARING<br />
CONTROL &<br />
<strong>IM</strong>PLEM<strong>ENT</strong>ATION<br />
BUSINESS<br />
CAPABILITIES<br />
ARCHITECTURAL<br />
CAPABILITIES<br />
TECHNICAL<br />
CAPABILITIES<br />
OPERATIONAL<br />
CAPABILITIES<br />
Figure 1 - Enterprise Information Management Model - ©2015 Entity Group Ltd.<br />
The layers of the triangle represent the ‘principles’ of successful information management along<br />
with their constituent data concerns (shown inside the triangle) and, towards the right, the<br />
capabilities delivered by addressing these data concerns.<br />
The model exposes how to extract value from solutions such as Big Data, BI and Analytics (bottom<br />
layer), by taking into account all of the concerns above.<br />
ANAGEME<br />
Our model allows for a structured approach to data governance and information management<br />
strategy; provides a blueprint for the design of Enterprise Information Architecture into which<br />
each strategic initiative should fit; enables a clear understanding of different data domains<br />
(reference data, customer master data, Big Data etc) and their role in data management; and<br />
allows for a considered process for Information Lifecycle Management across the enterprise as<br />
data is used, creates value, and is discarded.<br />
Along the journey, various types of capability are established, and the business benefits become<br />
realised (as shown on the right of the model).<br />
5
<strong>ENT</strong>ITY WHITE PAPER<br />
<strong>ENT</strong>ITY GROUP ADVISORY SERVICES<br />
Telco specialist knowledge<br />
Entity staff are highly experienced in developing Enterprise Information Management<br />
solutions for the Telco sector. Our teams have worked with a wide range of companies from<br />
large multinational groups to monopolistic national incumbents to start-ups. Entity staff have<br />
covered the breadth of service portfolios including wireline, wireless fixed, wireless mobile,<br />
cable, internet, digital media, converged multi-play solutions and international interconnect.<br />
Companies include:<br />
GROUP CO’s<br />
AT&T, BT, Belgacom, Vodafone,<br />
Cable & Wireless, Qtel<br />
OP CO’s<br />
Vodafone Ireland, Bahamas Telecom,<br />
Maroc Telecom, FastLink (Zaine),<br />
Tunisiana (Ooredoo), Lime<br />
Experience includes:<br />
SOLUTION<br />
Use of analytics to manage customer<br />
experience, balancing cost-to-serve<br />
against revenue generation.<br />
Use of data mining and analytics,<br />
combined with intelligence from<br />
customer interactions, to manage the<br />
complex network of VIP customer<br />
relationships.<br />
Use of Big Data techniques to manage<br />
high volumes of call data records in near<br />
real-time.<br />
BUSINESS OUTCOME<br />
The most lucrative customers received<br />
appropriate customer service<br />
experience.<br />
VIP and VVIP subscribers experienced<br />
significantly shorter waiting times<br />
and more direct routes through the<br />
interactive voice response (IVR) system.<br />
Complex regulatory reporting achieved<br />
for the first time.<br />
SOLUTIONS<br />
Use of Operational Data Store and<br />
Insight in real-time how the customer<br />
Analytics combined with Business<br />
experience was affected by technical<br />
Service Monitoring to provide realtime<br />
end-to-end customer experience systems.<br />
challenges in network, OSS, BSS and VAS<br />
monitoring.<br />
Single-source-of-truth (Master Data Enhanced data quality for improved<br />
Management) and intelligence for a decision making.<br />
large telco group during and following<br />
merger and acquisition of new<br />
operating companies.<br />
Development of data models and<br />
processes based on industry frameworks<br />
such as TMF Frameworx (encompassing<br />
eTOM, SID and TAM) and ITU.<br />
Entity staff have implemented solutions that enable analytics of data in large volumes,<br />
sometimes in real-time. In doing so, we have helped clients to improve customer service,<br />
billing performance, revenue leakage, fraud prevention, operational efficiency and real<br />
cost savings.<br />
6
<strong>ENT</strong>ITY WHITE PAPER<br />
<strong>ENT</strong>ITY GROUP ADVISORY SERVICES<br />
For more information please contact:<br />
Entity House<br />
980 Cornforth Drive<br />
Kent Science Park<br />
Sittingbourne<br />
K<strong>ENT</strong> ME9 8PX<br />
United Kingdom<br />
Entity Group Ltd<br />
info@entity.co.uk<br />
01795 415 800<br />
www.entity.co.uk<br />
www.entity.co.uk