Telcos are challenged in their business. Telephony becomes a commodity. How to leverage new business? Data use is key for the future business and analytics is the way to do it. This presentation shows a high-level picture on analytics.
Why Analytics is key for Telecoms - you snooze you lose!
1. BEYOND CONSULTING | EXCELLENCE IN EXECUTIONBEYOND CONSULTING | EXCELLENCE IN EXECUTION
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Analytics for Telcos
No Future Without
Kimon Zorbas
LondonTelco 2.0
12 June 2014
Kimon Zorbas
2. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
Status
• Data use has revolutionised human history
• Online data analytics has helped many businesses to succeed:
– E.g. new products and services; higher ROI; marketing; social engagement
• Crucial for Mobile Operators
– Maybe last chance to get it right
– Mobile operators have a long history of failure understanding the digital
challenge, react upon it and evolve accordingly
– The list is long: handsets, services (e.g. Blackberry), apps, …
– Above all: engineer-driven thinking of “I-can-do-this-myself”
• Now is the time to get it right
3. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
Why is analytics crucial?
• Analytics is making sense of data (basically structuring raw
data)
• Analytics allows you to understand what your clients do, how
they do it, when they do it and where they do it (and allow
you to reflect on why they do it)
• Creates basis for strategic business decisions
• How to capture and leverage clients insights?
• Mobile is in a privileged position
– Access to the “Data Treasure Trove”: Mobile use is extensive &
increasing; even more persona than desktopl; apps use, …
4. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
What matters – right data or right deduction?
• The more data, the more accurate your segments will be
– Right data sets are crucial: just email traffic will not do
– Diverse, reliable data
• But you still need to make sense of it all
– Getting it right is sort of crucial…
5. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
What to do with all that data?
• Many opportunities:
– Internal use and external use (enriching other data, offer insights to other sectors,
show competitors how they are performing, …)
• But here’s what not to do:
– Sit on it: (Telco mentality was for over a decade: “It’s so valuable, I keep it and will
never share with anybody”)
• What data do I have?
• What data do I need to run my (core) business?
• What data would I like to have to improve (core) my business?
• What data would I like to have to innovate new products and services?
• What data can I “sell” / leverage externally?
6. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
My online experience - advertising
• Online Behavioural Advertising works (sort of)
• Online Behavioural Advertising fails (inaccurate, often relying on
poor quality data)
• Re-Targeting really sucks (ever haunted by a Zalando show ad?)
• Bad re-targeting is a tremendous waste (e.g. Amazon advertising for
already purchased ads)
• Why is OBA (incl. re-targeting) good and bad?
– Data sources – limited though expanding to a worrying degree (e.g.
DailyMotion loading over 70 cookies-trackers!)
– Data quality – often substandard, not rich enough
7. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
Mobile Operators (last?) chance
• Mobile operators in unique position to provide added value
• Can provide data with better quality
• Have (mostly) existing and robust client relationship
• But: Telcos need to get out of their comfort zone and need to re-
establish client-relationship beyond billing and trouble-solving
• And Telcos need to get it right, legally (privacy, consent – aggregate
vs anonymous probably to become irrelevant)
• And Telcos need to offer an intriguing value-exchange to clients
8. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
Privacy & control could lead to growth
Addressing privacy is more than compliance
– it can foster growth
Source:
McKinsey Quarterly
Insights &
Publications, March
2014, “Views from the
front lines of the data
analytics revolution”
“Privacy concerns must be addressed—and giving consumers
control can help… Our analytics leaders were unanimous in
their view that placing more control of information in the
hands of consumers, along with building their trust, is the
right path forward.”
9. BEYOND CONSULTING | EXCELLENCE IN EXECUTION
Privacy has business relevance
Source:
BCG Global Consumer
Sentiment Survey 2013
10. BEYOND CONSULTING | EXCELLENCE IN EXECUTIONBEYOND CONSULTING | EXCELLENCE IN EXECUTION
The future is yours – if you exploit the
opportunities and get it right!