Over the last three years, data has become the main element in the chain value. Companies that use the power of this data find competitive advantage and are able to innovate faster.
This change in the way that companies use the data has caused tension in organizations between the old way doing business traditionally and the new modern approach doing business supporting by Business Intelligences (BI). Tension grew between control and agility, self-service and governance. IT and the business started partnering together to maximize the impact of their data.
Since two year ago, organizations began the shift to modern BI, the power to perform analytics from the hands of the few to many. We have moved away from IT-centric reporting platforms to modern BI and analytics platforms where the knowledge about the customer is the most important issue, more in time where the services have become in commodities.
At the present time BI has become the top priority for global enterprises, early-stage startups, and everything in between.
In the case of telecommunications BI involves the integration of OSS (Operations Support System) with BSS (Business Support System) with meaningful business information to detect significant events, discover new business scenarios and predict business situations.
Telecoms ´operator worldwide are exploring BI solutions to achieve competitive advantage. The key solutions for which telecommunications companies are looking involve marketing—such as user experience, customer retention, target marketing, and campaign management, customer-relationship management, and network business intelligence to streamline network assets.
The business landscape of the telecommunications industry is quickly evolving. The previous model, shaped by a handful of competitors in each country, is being replaced by a model shaped by hundreds of competitors vying for a global presence. How do companies survive in this environment? There are three basic strategies that make so important BI for telecom operator:
Companies can continue marketing their products to the masses. This market- share strategy has been very popular in the telecommunications industry in the past. To compete, companies are driven to increase advertising and marketing costs aggressively while discounting their products. Unfortunately, this strategy has driven customer loyalty to an all-time low, particularly in markets where the portability is promoted or in services directly affected by the OTT competitions. For example, in mature market such as Europe or USA it is quite common to appreciate a consumer to switch from telecom A to telecom B to telecom C and even back to telecom A, in the period of a single or two year (some cases this is only depending of the permanency time . This may be why companies can report a 40 percent disconnecting rate over the period of a year and still show an increase in market-share in other cases represent an important increasing of the churm. Clearly, this model for doing business presents significant challenges and over time threatens to drive profit margins unacceptably low. The ultimate evolution may be similar to what has been seen in the retail industry, where a good year produces profit margins in the two to three percent range.
Customer Experience Strategy
Companies should focus on tailoring products to the individual customer. In this “share of customer” environment, customers are differentiated in addition to experience. Corporate resources are efficiently allocated to customer care in relation to the customer’s lifetime value. Those customers whose loyalty can be earned and whose lifetime value to the company is high will receive a majority of the attention. In contrast, customers who are not loyal or whose lifetime value is low will receive a lower degree of attention. The result will be an environment that optimizes profits by nurturing valued customer relationships. Essential to this strategy will be the ability to leverage evolving technologies to accomplish the understanding the customers’ needs experience and behaviors the only way to leverage that is supported over a BI Strategy
The challenge for the telecom operator is to develop a strategy business model centric on the customer. This should result in a variety of services-oriented systems that effectively run day-to-day operations. Moving forward, additional systems are needed to augment capabilities produced by these business operation systems with capabilities to deliver business intelligence and business management. These capabilities enable companies to accomplish the following:
▪ Understand the need of the user (User Intelligence).
▪ Understand the needs of their business (Business Intelligence).
▪ Manage actions based on those needs (Business Management).
▪ Run day-to-day operations (Business Operations).
Strategic Decision Support
This is key of BI because provider to the telecom operator a corporate assets that include customers experience, services, network infrastructure, customer care, billing and employees. Typical performance measurements include profitability, availability, usage, sales, and lifetime value. Companies can now track key performance measurements, refine customer segments even create an individual segment for and individual customer (one a one strategy) and scores, and optimize campaign strategies.
Customer experience is related with various factors such as: Services, innovation, loyalty, and complaint. Previously, surveying customer opinion in experiencing the products or services is a main tool to collect and analyze the data. Telecom market is becoming saturated and competitive in telecoms industry. The activity in telecommunication industry takes place in real time, where no delays or misunderstandings are allowed. If these errors occur, they can cause the decreasing of the number of customers, complaints and a negative impact on the business process or on the normal workflow. That’s why a good management in supply chain activity is crucial and the columns of the building are the BI.
Also as telecommunications industry has become increasingly in an aggressive and competitive marke, the ability to react quickly and decisively to market trends and to tailor services to individual customers is more critical than ever them BI become in crucial.