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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

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