How telecommunications providers can reboot the customer experience

1. IBM
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Business Value
Keeping telecom
on target
How CSPs tap the transformative
power of data and analytics
IBM
Institute for
Business Value

2. IBM
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Business Value
• 52 percent of CSPs surveyed have big data-related projects in pilot or production status
• 71 percent of CSPs claim a return on analytics investments within the first year
• Only 30 percent of CSPs excel in the capability to act on data. To capture business value,
CSPs must move beyond data collection to leverage insights.
• 53 percent of CSPs have taken the first steps towards analytics-led process transformation
• Only 23 percent of CSPs use predictive or prescriptive analytics. They must move from
‘hindsight’ (descriptive and diagnostic analytics) to ‘foresight’
• There is a market for ‘Data/Analytics-as-a-Service’
• Investment with intent is vital. Front Runners make more targeted investments in use
cases with high business return
Executive summary

3. IBM
Institute for
Business Value
There is a growing gap in performance between
Front runners and the ones falling behind
Front Runners in the use of
analytics for business - have
deep technical capabilities in
place to support analytics in a
wide range of business
functions
Front Runner CSPs source and
manage diverse data sets fast,
analyse those to rapidly create
meaningfull insights and act on
the insights quickly to achieve
targeted business outcomes
Front Runner CSPs create
advantage from analytics by
focusing on customer
objectives, business operations
and their value add in business
and industry platforms
23
%
Pervasiveness
Technicalcapabilities
The
competitive
advantage
Acquire
Analyze
Act
CSPs Building
Customer Focus
Enhancing operational
effectiveness
Generating new
revenues

4. IBM
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Business Value
Focusing on knowledge gathering or
developing strategy and roadmap based
on business needs and challenges
67%
33%
48% 52%
2012 2014
Piloting big data projects or already
deployed two or more initiatives and
continuing to apply advanced analytics
Educate & Explore Engage & Execute
Big data adoption by telecommunications organization: 2012 vs 2014
More than half of CSPs currently either have big
data related projects in pilot or in production
Source: 2014 IBM Institute for Business Value analytics survey: n = 1086: CSP n = 65

5. IBM
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10%
53%
8% 8% 5%
15%
0 to 3
months
4 to 6
months
7 to 12
months
13 to 17
months
18 to 24
months
> 24
months
of Telecommunications
organizations realize a
positive return on their
analytic investments
within 1 year
71%
Return on analytic investment period
of CSPs created a significant positive impact on business
outcomes using data and analytics in the past 3 years74%
Most CSPs have realized a return on their
analytics investments within the first year

6. IBM
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Business Value
Joggers Front Runners
Spectators The Pack
11%
23%
37%29%
10%14%
31% 45%
Clusters
all industries
(n = 1086)
Clusters
Telecom
Industry
(n=65)
Broad use across business functionsLimited use across business functions
Planning
Pervasiveness
Technicalcapabilities
Organizations align to 4 clusters based on their
use of analytics and their technical capabilities
Pilots&implementations

7. IBM
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Business Value
Data-driven
organizations using
deep analytics
capabilities to drive
business processes
within most
business functions
Organizations
being in the early
adoption phases,
although they
aspire to use
analytics within
multiple business
functions
Organizations
primarily using
analytics to
automate and
optimize
operations, but not
use analytics
pervasively
Spectators are
also in the early
adoption phases,
but their plans
include limited use
across business
functions
Front Runners
(23% of CSPs)
The Pack
(37% of CSPs)
Joggers
(11% of CSPs)
Spectators
(29% of CSPs)
Descriptions of analytics maturity clusters
CSPs lead other industries, still it’s staggering that
an industry where data is its lifeblood is so slow

8. IBM
Institute for
Business Value
of Front Runners created a significant competitive
advantage using data and analytics.
of Front Runners created a significant positive impact
on business outcomes using data and analytics
of Front Runners created a significant positive impact
on revenues using data and analytics in the past 3 years.
69%
60%
53%
Overall, Front Runner organizations use data to
create a significant impact on business performance

9. IBM
Institute for
Business Value
The
competitive
advantage
Acquire
Analyze
Act
66%
61%
51%
43%
47%
44%
35% 36%
33%
35% 35%
32%
51%
42%
30%
Acquire Analyze Act
Front Runners Joggers The Pack Spectators Telecommunications
Percentage of organizations that excel at
these analytic processes
CSPs
CSPs
CSPs
Source: 2014 IBM Institute for Business Value analytics survey
Only 30% of CSPs excel on acting on data, implying
that their initiatives are not so much business-led

10. IBM
Institute for
Business Value
Building
Customer
Focus Enhancing
operational
effectiveness
Generating
new
revenues
• Customer lifecycle
and value
• Customer experience
• Advocacy metrics
• Social and
competitive
monitoring
• Cognitive analytics
• Digital interaction
• Process transformation
• Data-driven business
decisions
• 3rd party social media
• Mobile powered by
analytics
• Data-driven revenue
streams
• Data/Analytics as a
Service
• Data exposure via APIs
• Managed environments
for ecosystems
• Internet of Things
CSPs plans should focus on customer objectives,
business operations and creating new platforms

11. IBM
Institute for
Business Value
Building
Customer
Focus
• Customer lifecycle
and value
• Customer experience
• Advocacy metrics
• Social and
competitive
monitoring
• Cognitive analytics
Building customer focus

12. IBM
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Business Value
81%
19%
Customer
focused
Operations
focused
40%
41%
prioritize
data and analytics
to improve
customer
acquisition
prioritize
data and analytics
to improve
customer
experience
Telecommunications organizational objectives for use of data and analytics
47% 53%
Customer
focused
All industries
Telecom
The survey reveals that CSPs’ plans with analytics
are particularly focused on the customer relationship

13. IBM
Institute for
Business Value
Acquire
customers
Expand
relationship
Voice of
Customer
Analytics
Retain
customers
Risk
Analytics
Manage
customers
Analytics in
customer life
cycle
Each phase in the customer life cycle can be
supported by analytic methods or models

14. IBM
Institute for
Business Value
21%
56%
18%
5%
Collect / Analyze
Social Media
Today
Want to Collect /
Analyze Social
Media in the future
No plans to
Collect / Analyze
Social Data
Find Social Media
of no value
Status of collecting and analysing Social
Media data within the CSP organization
Only one-in-five CSPs analyses Social Media today
though most have plans to do this in the near future

15. IBM
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Business Value
Use all existing internal data on
customers, both structured and
unstructured
1
Blend internal data with data from
external ecosystems to generate
richer insights
2
Run analytics engines that are
automated and contextual aware
3
Three foundamental steps for better customer understanding
Descriptive
Predictive
Diagnostic
Prescriptive
Cognitive
Analytic engines
Internal & External
data
By leveraging both company-owned and external
data, CSPs can make better decisions

16. IBM
Institute for
Business Value
What is
happening?
Discovery and
descriptive
analysis
What could
happen?
Predictive
analytics and
modeling
Why did it
happen?
Diagnostic
analysis
What action
should I
take?
Prescriptive
analysis
Cognitive
Fabric
Actions
54% of CSPs surveyed
foresee using some form of
cognitive analysis (i.e. iterative
machine learning) in the next
12 to 18 months
Cognitive computing is making analysis deeper and
more contextual / real-time

17. IBM
Institute for
Business Value
Know Me
Leverage profile
data for
personalized
insight into
customer wants
and needs to
contextualize
experience
Engage Me
Dynamic,
evidence
based omni-
channel
experiences
that adapt to
customer
preferences
Empower Me
Interactive, informed natural language dialogue
that enables insights at the point of action
Cognitive systems unleash the power of great
customer experiences
customer

18. IBM
Institute for
Business Value
• Add depth to customer profiles, interactions and operations by tapping
into behavior patterns, trends and sentiments from both structured and
unstructured data. Use also external data
• Make the strategic leap from hindsight (descriptive and diagnostic
analysis) to foresight (predictive and prescriptive analytics)
• Invest in cognitive computing to perform more sophisticated analyses,
and to fuel contextual and real-time customer engagement
Recommendations

19. IBM
Institute for
Business Value
Enhancing
operational
effectiveness
• Digital interaction
• Process transformation
• Data-driven business
decisions
• 3rd party social media
• Mobile powered by
analytics
Enhancing operational effectiveness

20. IBM
Institute for
Business Value
CSP focus on analytic transformation
24% 25%
51%
34%
13%
53%
Digital only
transformation
Process only
transformation
Digital and Process
transformation
Frontrunners
all industries
CSPs
CSPs are focused on creating an end-to-end trans-
formation, integrating data into business processes

21. IBM
Institute for
Business Value
Descriptive (54%)
Diagnostic (44%)
Predictive (23%)
Analysing what has
happened
Analysis to uncover
why an event or
outcome occurred
Analysis to
anticipate likely
scenarios of what
may occur in the
future
Analysis o provide
suggested actions to
optimize the intended
business outcome
Prescriptive (23%)
Current extensive use of analytic
methods across the CSP
organization
Still, CSPs are in the early phases of embedding
analytics within business processes

22. IBM
Institute for
Business Value
External
Data
Marrying CSP internal systems with social data
sources – such as Twitter – will deliver a set of new
enterprise applications to:
 transform how CSPs understand their markets,
 allow sales, marketing, and customer service
professionals to map sentiment and behavior
 learn about problems with new products/
services, or anticipate sudden shifts in moods and
markets.
 accelerate innovative product development by
predicting long-term trends
Enrich enterprise data streams with 3rd party data
sources to support better business decisions

23. IBM
Institute for
Business Value
The value of analytics for operaional effectiveness
is further amplified by mobile
Mainframes
and minis Desktops/laptops
Tablets, phones
and wearables
Insightful CSP
• Intelligent organization
• Automated processes
• Empowered individuals
Individual CSP
• Integrated ecosystems
• Insight at the point of
engagement
• Contextual actions in the
moment
Functional CSP
• Efficient organization
• Streamlined processes
• Focused individuals
Situational CSP
• Networked organization
• Dynamic processes
• Responsive individuals
Systems
of
Insight
Systems of
engagement
Mobile
Analytics
Systems of
record

24. IBM
Institute for
Business Value
• Embed analytics within business processes to automate, drive or inform
key business processes to act quickly and precisely in each situation.
• Enrich internal data streams with 3rd-party social media (e.g. Twitter) to
create a set of new enterprise applications to improve understanding of
your markets.
• Create a mobile strategy; empower employees to access insights from
analytics anytime anywhere
Recommendations

25. IBM
Institute for
Business Value
Generating
new
revenues
• Data-driven revenue
streams
• Data/Analytics as a
Service
• Data exposure via APIs
• Managed environments
for ecosystems
• Internet of Things
Generating new revenues

26. IBM
Institute for
Business Value
CSPs may sell data to various
market sectors including:
 car manufacturing
 retail and hospitality
 healthcare and pharmaceutical
 utilities
 financial services
 insurance
 government
 traffic managerment
 home & building security
 etc.
The Big Data driven telecom analytics market
alone is expect to grow at a CAGR of nearly
50% between 2014 and 2019.
By end of 2019, the market will eventually
account for $5.4 Billion in annual revenue
CSPs may sell data in a:
• Data as a Service (DaaS) model
ór
• Analytics as a Service (AaaS) model
CSPs have an excellent opportunity to offer
Business-to-Business data and analytics services

27. IBM
Institute for
Business Value
Sense
what is
happening
Build
context
Act
quickly &
consistently
Decide
what do do
 Context Aware
 Predictive and
Prescriptive
 Continuous real-
time at scale
The most critical factor for many ecosystems is the
ability to manage real-time data, events and alerts
Ecosystems
The data that CSPs have access to has huge value
for most ecosystems

28. IBM
Institute for
Business Value
28 23 November 2015
Developers
Banking
Consultants/SIs
Healthcare
Media
Etc…
ISVs
Cloud
Personal comms
Security
Mobility
M2M
Etc…
Managed
customer
interface,
services,
platforms and
networks
Service providers & partnersCSP assets
Consumers Business
Government/
Industries
Analytics
It provides a huge opportunity in a CSP managed
ecosystem to generate new revenue streams
CSP Platform

29. IBM
Institute for
Business Value
Device Registration & Connectivity
Connectivity | Awareness | Security & Privacy | Asset mgmt
Integration
Mobile | Cloud | Enterprise
Data services
Historian | Cache | Search
Managed APIs
Share | Monetize
Real-time Big Data Analytics
Data Analytics | Event Analytics | Streaming
Applications
Runtime | Services
Developers
Employees
More Things
API
API API API
API
M2M
Analytics
Cloud
Partners
Customers
API enablement
APIs will be the driver for this model; CSPs need to
expose APIs to share their assets with others

30. IBM
Institute for
Business Value
 Data exposure via APIs is becoming a major Big Data initiative for many
many CSPs as it supports the development of new services for both internal
operations, external developers and partners, and the IoT market.
 It helps to:
 grow revenue through new channels
 increase brand recognition
 accelerate delivery of mobile apps
 facilitate partnerships
 extend reach and usage
 innovate
 improve customer satisfaction
APIs for CSP big data analytics are the number 1
new requirement for third parties and developers

31. IBM
Institute for
Business Value
• Develop a good understanding of what extended ecosystems will mean to
you. Evaluate the roles you can and want to play. Use the ecosystem to
generate additional revenue in collaboration with third parties.
• Turn your unique set of information into smart actionable data that enable
ecosystem partners to build new innovative applications
• Understand and embrace the API-led economy. Expose your distinctive
assets to third parties, including big data and analytics, in the form of
APIs to unlock additional business value
Recommendations

32. IBM
Institute for
Business Value
 How do you track customer behaviors, preferences and sentiments to
better meet customer needs and wants?
 To what extent are you using analytics to drive or inform business
processes within multiple business functions?
 How are you gaining competitive advantage by deploying analytics
within your organization?
 To what extent have you made analytics “consumable” for employees?
How do you empower them to access insights anywhere?
 In what ways are you exposing your data assets to other parties to
create new revenue streams?
Are you ready to compete on analytics?

33. IBM
Institute for
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IBM.com/iibv