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Publication Date: 10 Sep 2015 | Product code: IT0012-000135
Adaora Okeleke
Ovum Decision Matrix: Selecting a
Customer Analytics Solution for
Telcos, 2015–16
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
© Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 2
Summary
Catalyst
Telcos’ quest for a competitive edge in a rapidly changing market means that they need to improve
the experience delivered to current customers, acquire new customers, and enhance new revenue
streams based on existing services. Consequently, there is also a business demand for systems that
provide actionable insights on customers’ behavior and activities, especially in real time, to deliver on
these ambitions. However, to achieve these objectives, telcos must use all data sets relating to
customers’ interactions with the telco, and the services they consume. For these reasons, analytics
solutions are changing; they are moving away from the siloed analytics approach to deliver analytics
offerings that use data from multiple data sources across the business. As expected, the competitive
landscape is evolving, with NEPs, SIs, and software vendors focusing on the opportunity in telecoms,
to offer their solutions.
In view of these factors, Ovum has produced this Ovum Decision Matrix to identify how the leading
customer analytics vendors stack up against each other in terms of their technology, execution of
strategy, and market impact.
Ovum view
The telecoms industry is fast realizing the value of the data that they hold and how it can enhance
their operations in marketing and care. In recent surveys conducted by Ovum with senior telco
executives ( Ovum ICT Enterprise Insights 2014 – 15 and Telecoms Customer Analytics Survey
2015), we identified the importance of customer analytics tools to provide insights that support
marketing and care operations. To generate the required insights, telcos have to move away from
data sets siloed by business unit or technology and move toward combining data sets from network
and customer-related data sources across the business. Analytics based on the combination of these
two types of data sets generate deeper and richer insights on what the customer is buying as well as
how their activities on the network influence their overall experience and vice versa. Given these
insights, telcos can proactively respond to customer needs in a way that brings satisfaction to the
customer.
Vendor solutions analyzed during this research reveal the relative strength of each offering in meeting
telcos’ requirements. While some are focused on meeting the demands of a single business unit (i.e.
marketing or care) using data from multiple data sources, others are looking to serve both. A large
proportion of these solutions are based on big data, with analytics performed in a way that allows for
the generation of a comprehensive view of the customer. Overall, our research shows that the pure
analytics vendors are doing better than the telecoms-focused players in terms of technology and
market impact.
In Ovum’s view, it is vendors that can combine strong analytics capabilities with telecoms expertise to
serve both units that bring the most value to the telco. Other factors include the maturity and
completeness of analytics offering. These vendors are able to pull data from CRM, B/OSS systems
and network systems; analyze the data using advanced analytics tools; and operate in offline mode or
in real time to generate customer insights relevant to both marketing and care. The ability to deliver
these capabilities using prepackaged analytics applications developed with the specific needs of each
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
© Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 3
unit is the core differentiator. Non-IT or data science users within these business units can utilize the
insights as quickly as possible to serve their operational needs. Services will also play a critical role in
ensuring that telcos get ta quick return on their investments for these tools.
Key findings
 Investment in customer analytics solutions is essential to telcos’ achieving and maintaining
improved customer experience. As a result, vendors must develop their analytics functions to
enable the use of combined data sets from multiple data sources that provide actionable
customer insights.
 There are a slew of customer analytics applications delivering marketing use cases, but very
few are focused on care use cases. This seems like a missed opportunity, as the customer
insights that are fed into the marketing systems which enrich outbound offers can also be fed
to customer care to deliver proactive care. Vendors such as Amdocs, Ericsson, Guavus, IBM,
and NetCracker analyzed in this research address this point.
 The most compelling vendor offers combine analytics tools with strong telecoms expertise
and a track record in services. In addition the tool should be easy to use for the non-IT
specialists in the marketing and care departments.
 Ovum has identified three companies as market leaders: IBM is the overall market leader,
followed by SAS and NetCracker. This group has a rounded offer using structured and
unstructured data sources from network and customer systems. They have long experience in
analytics and complementary service capabilities
 Amdocs, Comviva, Ericsson, Flytxt, Guavus, and HP are the market challengers, and come
from a range of backgrounds. Each vendor comes to the market with unique capabilities, and
while they support marketing and/or care use cases, in combination with their strong telecoms
background, they lack the depth of analytics capabilities demonstrated by the market leaders.
 AsiaInfo and Pontis are the market followers. Both vendors are considered niche, with a
limited number of use cases deployed in the market.
 Big data and big-data analytics are at the heart of vendors’ development strategies. These
features enable not just the analysis of unstructured data sets such as social media but the
ability to analyze very large data sets generated from consumption of data services.
Vendor solution selection
Inclusion criteria
Ovum defines a customer analytics solution as a solution that contains a set of tools that can use data
related to customers’ entire life-cycle journey with a telco, from acquisition to management to
retention, and network-related data. Apart from providing the basic business intelligence and analysis
functions such as reporting and monitoring, these tools have to provide advanced analytics
capabilities such as data mining and predictive analytics and, in more advanced cases, prescriptive
analytics. Finally, these solutions need to deliver these analytics insights either directly to existing
business systems such as care and marketing platforms or to prepackaged applications that are
designed specific to the telecoms vertical.
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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The following inclusion criteria had to be satisfied by the participating vendors:
 The vendor’s solution must be in commercial use, and have at least one operational telco
customer.
 The vendor’s customer analytics solution needs to provide prepackaged applications
developed specifically to the telecoms industry.
 The vendor’s solution needs to leverage data from multiple data sources either using a
portfolio of telco data adapters or leveraging data held in telcos’ big-data platforms.
 The solution must also have a significant level of brand awareness among telcos. This
assessment is based on market impact and recognition within the telecoms industry and
among peers.
Exclusion criteria
The criteria for the exclusion of vendor solution in this decision matrix are as follows:
 Vendors that deliver analytics platforms without prepackaged applications that are specific to
the telecoms industry were excluded from this research.
 Vendors that provide analytics capabilities using a single data source to provide customer
insights.
 Our list of vendor solutions is not exhaustive. Some vendors we approached were unable to
provide us with the required information during the project timeline.
Methodology
Technology assessment
For the technology assessment, Ovum has focused on a set of criteria we consider most critical to
telcos for their customer analytics investment. The following functionalities below form the core source
of differentiation of vendor offerings:
 Fulfillment of core telecoms business user requirement: For this criterion, we have
assessed the vendor solution’s ability to provide features such as support for existing
business workflows; to extract data from business systems such as CRM, BSS, and OSS
systems; and to integrate with existing business systems to provide analytics insights that
drive actionable decisions.
 Prepackaged analytics applications: We have looked at the suite of applications each
vendor provides for both marketing and customer care use cases for telecoms specifically.
The ease of use of these applications provided by each vendor was also assessed based on
the business user’s experience.
 Advanced analytics: To what extent does the solution support advanced analytics
capabilities such as predictive analytics, data mining, text analytics, speech analytics, cross-
channel analytics, and complex event processing?
 Data sourcing: To what extent is the vendor’s analytics solution able to access and analyze
structured and unstructured data to provide customer insights?
 Foundational BI tools: We have assessed the vendor’s support for reporting, monitoring,
querying, and basic analysis functions.
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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 Mobile BI: Does the vendor’s solution provide support for the access of analytics applications
using mobile devices?
 Administration and system management:We have assessed how easy it is for the telco’s
IT unit to monitor and manage the customer analytics implementation (such as user
management, query management, upgrade management, system monitoring, and so forth).
Execution
In this dimension, Ovum has reviewed the capability of the solution in the following key areas of
strategy execution:
 Maturity: The current status of each vendor’s customer analytics solution and its future road
map are assessed. The more established analytics vendors gained the highest scores even
though they could be considered as not having core telecoms expertise possessed by
vendors with a broader portfolio of telco-specific platforms.
 Interoperability: For this criterion we assessed how easily the customer analytics solution
can integrate with other best-of-breed telco operational systems, such as CRM, BSS, and
OSS.
 Innovation: Innovation demonstrated by each vendor can be a key differentiator in the value
that a telecoms enterprise achieves from its customer analytics solution. In this criterion, we
have assessed the level of innovation demonstrated in the vendor’s product(s), its business
alignment, and its strategy.
 Deployment: This criterion includes speed of deployment (for varying number of users), the
extent to which each vendor satisfies a generic set of service-level agreements, and the
support features provided for each solution deployment.
 Scalability: Criteria such as the solution’s ability to support a growing number of users and
the features provided to support the scaling up or scaling down of solution were assessed
here.
 Telecoms fit: The alignment of the solution for the telecoms vertical is assessed.
 Partner ecosystem: The vendor’s partner ecosystem is assessed, taking into account the
number and strength of technology partners as well as reseller partners.
 Professional services: The vendor’s portfolio of professional services such as solution
implementation, consulting, systems integration, training, and managed services provided to
telco customers are examined.
 Sales model: The number of direct and indirect sales channels that the vendor can access
when selling to the market is analyzed.
Market impact
The global market impact of a solution is assessed. Market impact is measured across five
categories, each of which has a maximum score of 10 and is weighted in favor of the market leader:
 Revenues obtained from customer analytics solutions: Each solution’s global customer
analytics revenues is calculated as a percentage of the market leader's revenue. This
percentage is then multiplied by 10 and rounded to the nearest integer value.
 Telecoms revenues obtained from customer analytics solutions: Ovum estimates each
vendor’s revenues in the customer analytics space from the telecoms industry. These
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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revenues are calculated as a percentage of the highest telecoms revenues reported,
multiplied by 10, and then rounded to the nearest integer value.
 Telecoms installed base: The total installed base of each vendor’s solution within telecoms
is obtained and a weighted score is calculated as a percentage of the largest install base
quoted by all participating vendors, multiplied by 10, and then rounded to the nearest integer
value.
 Geographical penetration: Ovum determines the number of countries in which the vendor
has a presence. This number is calculated as a percentage of the market leaders’ geographic
reach, multiplied by 10, and then rounded to the nearest integer value.
 Total investment: Each vendor is awarded a score based on an estimate of the value of total
investment committed to the development of the customer analytics solutions. The value is
calculated as a percentage of the market leader's investment, multiplied by 10, and then
rounded to the nearest integer value.
Ovum ratings
 Market leader: This category represents the leading solutions that we believe are worthy of a
place on most technology selection shortlists. The vendor has established a commanding
market position with a product that is widely accepted as best-of-breed.
 Market challenger: The solutions in this category have a good market positioning and are
selling and marketing the product well. The products offer competitive functionality and good
price-performance proposition, and should be considered as part of the technology selection.
 Market follower: Solutions in this category are typically aimed at meeting the requirements of
a particular telco department. As a tier-one offering, they should be explored as part of the
technology selection.
Market and solution analysis
Ovum Decision Matrix: Customer analytics solutions for telcos,
2015–2016
Investment in customer analytics is critical to telcos looking to grow their revenues and improve the
service experience delivered to their customers. Meeting these objectives will require vendors to not
only provide a strong analytics portfolio but satisfy a broad array of factors, including the degree to
which the solution is able to use all of the telco’s data about its customers and so meet the telco’s
business and operational needs. Figures 1 and 2 below represent Ovum's view of the overall
technology strength, market impact, and execution ability of the key customer analytics vendors that
were selected for assessment in this report.
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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Figure 1: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16
Source: Ovum
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
© Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 8
Figure 2: Expanded view of Ovum Decision Matrix: Customer analytics solutions for telcos,
2015–16
Source: Ovum
Table 1: Ovum Decision Matrix: Customer analytics for telcos, 2015–16
Market leaders Market challengers Market followers
IBM Amdocs AsiaInfo
NetCracker Comviva Pontis
SAS Ericsson
Flytxt
Guavus
HP
Source: Ovum
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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Market leaders: IBM, NetCracker and SAS
The grouping of vendors in the “leaders” category highlights how the varying factors considered for
the ODM come together to provide a compelling offer to the telcos. While NetCracker is the only
vendor in this category with a core telecoms background serving telcos across other business
domains, IBM and SAS have a long history of supplying analytics solutions to telcos and are
considered top-ranking vendors providing business intelligence and analytics capabilities.
IBM received highest scores in all three dimensions assessed: technology, execution and, market
impact. The company has a long history as a strategic partner to telcos, providing a comprehensive
analytics portfolio that serves multiple operational units within a telco in addition to marketing and
care. With a portfolio that includes assets such as IBM Unica for campaign management; IBM Now
factory for network analytics; IBM SPSS, which delivers advanced analytics capabilities; and IBM
Watson to support care agents with cognitive insights, it continues to evolve its solutions and its
service portfolio. The vendor is a strong candidate to be shortlisted by all telcos.
NetCracker is a telecoms software specialist and provides analytics solely for the telecoms vertical
across multiple regions and tiers. The vendor has combined its understanding of telco data with
sophisticated analytics capabilities inherited from its parent company, NEC, and delivered intuitive
applications that can serve marketers and customer care agents. Furthermore, the vendor’s telco
back office offerings (B/OSS) and services offerings allows the vendor to gain in-depth understanding
of telcos’ core challenges; it can leverage these insights to develop solutions that align with telcos’
objectives. The company falls into the “market leaders” category because of its focus on the telecoms
sector and the maturity of its analytics offerings.
SAS scored second-highest on Ovum's market impact evaluation due to its large customer install
base and revenues generated from its marketing analytics offerings. The vendor delivers a robust
analytics suite of applications that serves multiple use cases for both marketing and customer care. Its
customer link analytics application adopted by several tier-one telcos is core to the vendor’s value
proposition for telcos, enabling them to improve marketing functions such as customer retention,
cross-sell/upsell, and customer acquisition. The vendor has a strong partner ecosystem consisting of
IT service specialists such as Accenture, to enhance its service offerings and analytics applications
for care. Advanced analytics continues to be a differentiator for SAS. The vendor, however, doesn’t
have the capability in terms of capacity and competences demonstrated by the other two leaders. The
company would rely on its services partners to provide services.
Market challengers: Amdocs, Comviva, Ericsson, Flytxt,
Guavus, HP
This category demonstrates the wide array of vendors looking to capitalize on the analytics
opportunity in the telecoms vertical. The main differentiation between these vendors’ offerings is seen
in the array of applications provided and the data sources consumed to provide the analytics insights.
Amdocs has utilized its data-management-service capabilities to put together its customer analytics
proposition. Taking advantage of its more than seven years of experience helping telcos manage their
back-office operations, the vendor has developed a logical data model that takes into consideration a
360-degree view of telco customers. Using this model, the vendor has developed analytics
applications prepackaged to simplify telcos’ adoption of analytics insights for their marketing and care
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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operations. The vendor has leveraged its acquisitions of Changing Worlds and Actix to create an
analytics offering that takes an overall view of the customer to deliver actionable insights that support
marketers in delivering personalized offering and care agents to ensure that best experience is
offered to clients. Its analytics capabilities are, however, less mature than those of NetCracker.
Comviva is a specialist in the development of telco-focused value-add solutions. The company’s
RevenuePlus product has a strong play within the prepaid markets in emerging markets.
RevenuePlus targets marketing and care departments with use cases that utilize data insights
obtained from consolidated data, to provide a consistent view of the customer. In terms of its
execution scores, the vendor’s solution provides good interoperability capabilities and has strong
service capabilities.
Ericsson is fast consolidating its analytics capabilities embedded within its vast array of OSS and BSS
portfolios. The vendor recently launched Expert analytics as a big-data analytics solution, with the
capability to improve customer experience leveraging data from multiple data sets. Although a late
starter in the big-data analytics domain, the vendor has a strong play in the analytics domain. Ovum
expects to see the vendor improve on its current offering.by integrating the analytics capabilities of
recent acquisitions such as Sentilla’s predictive analytics. The inclusion of these capabilities and the
rollout of new applications could see the vendor move into the “leaders” category.
Flytxt is an established marketing-analytics solutions provider that utilizes big-data analytics to
generate insights that can be fed to telcos’ revenue- and customer-experience-management
solutions. The vendor’s NEON platform delivers seven applications that support use cases such as
customer engagement, loyalty management, and targeted marketing. Flytxt has also demonstrated
strong capabilities to support telcos in emerging markets.
Guavus is a core analytics vendor with deep telecoms expertise and experience. Guavus’ Reflex
platform performs advanced analytics functions to generate insights which are fed to a suite of
prepackaged analytics applications. Other business systems can consume the analytics results via
the Reflex API. The vendor scored highly in the execution dimension given its partner ecosystem,
which consists of top technology players such as Cisco and Samsung as well as service players such
as Accenture and Deloitte.
Having integrated its acquired offerings from Autonomy and Vertica, HP stands as a market
challenger presenting a broad profile of use cases for telco marketing. These use cases take
advantage of the analytics functions of Autonomy’s IDOL, such as search and text analytics, in
addition to the real-time data processing capabilities of Vertica. The main drawback for HP is the
telco’s business user experience delivered by the solution, which the vendor has indicated would be
delivered as an enhanced feature in its six month road map.
Market followers: AsiaInfo and Pontis
The vendors that fall into the follower category have demonstrated core analytics capabilities that
would be attractive to vendors, but their coverage in terms of use cases and data sources used for
analytics are limited compared to vendor solutions that fall within the leader and challenger categories
AsiaInfo is a leading supplier of telco BSS and CRM systems and also provides Veris BI platform.
Veris BI provides analytics functions to its BSS platform. The vendor’s move into the analytics domain
was accelerated by the release of Veris C3, a big-data appliance (hardware and software delivered in
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
© Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 11
a single box) that collects and analyzes streaming data to understand customer’s consumption
patterns. As a result, telcos can look to use AsiaInfo’s customer analytics solution to enrich processes
such as customer segmentation for targeted offerings. The vendor needs to enhance the analytics
functions provided by its solution as it plans to position itself as a strong player within the customer
analytics market. This can be achieved through partnerships.
Pontis is positioned as a market follower due largely to the niche analytics use cases the vendor
provides. The vendor delivers analytics capabilities that enable telcos to engage with customers using
its continuous contextual approach to monitoring customer life cycle. The vendor received its highest
scores in the market-impact dimension, receiving an above-average score for its customer install
base. To compete effectively in the analytics space, the vendor will need to extend current use cases
beyond customer engagement.
Market leaders
Market leaders: technology
Figure 3: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 – Market
leaders – technology
Source: Ovum
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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Overall, IBM’s portfolio of customer analytics solutions was the outstanding solution in terms of our
technology assessment, featuring as a leader in five of the seven categories assessed. NetCracker
and SAS gained similar overall scores, but SAS outperforms NetCracker in the advanced analytics
category, while NetCracker leads in the prepackaged analytics applications category (offering
applications with a broader set of use cases that cuts across marketing and customer care). Telco-
focused vendors such as Amdocs and Ericsson, with broad BSS and OSS capabilities, score well but
do not have the full analytics offerings delivered by the market leaders. Most of the participating
vendors returned a good performance with respect to satisfying the fundamental user requirements,
which include the ability to support user-defined workflows and the integration of analytics solutions
with pre-existing telco systems.
Ovum expects to see advancement in the technology features delivered by these vendor solutions.
Currently, there’s a lot of investment going into big-data analytics to enable the analytics of a broader
set of data sources (structured, semi-structured, and unstructured). Major releases of solutions in the
next 12–24 months will be based on the delivery of prepackaged applications that fast-track telcos’
adoption of big-data analytics.
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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Market leaders: execution
Figure 4: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 – Market
leaders – execution
Source: Ovum
The execution category assesses the maturity and the ability of the vendor to successfully deploy,
integrate, support, maintain, and further develop the product.The vendors with more mature solutions
backed by a solid services portfolio provided either directly or indirectly through partners led in the
execution dimension. Leaders include IBM, HP, NetCracker, and SAS.
Core to vendors’ execution is their ability to integrate as quickly as possible with open-source and
third-party solutions. More than half of the vendors assessed in this ODM scored highly in the
interoperability category, providing out-of-the-box integration capabilities that allow for ease of
integration with existing telco business systems. It is not surprising to see that Ericsson and
NetCracker, with strong BSS and OSS portfolios, recorded high scores in this category. These
vendors continue to drive an integration strategy that ensures that analytics results are served to as
many systems as possible to deliver actionable insights.
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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As vendors enhance their analytics portfolios, it’s important to take note of deployment strategies.
NetCracker, IBM, SAS, and HP scored highly in this dimension. HP, IBM, and SAS, for example, allow
for easy deployment of updates to their solutions without requiring additional support. As telcos
become more focused on cutting costs, the reduction in deployment costs will be become a core
driver during vendor selection processes.
Market leaders: market impact
Figure 5: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 – Market
leaders – market impact
Source: Ovum
With the evolution of customer analytics solutions, it is no surprise that IBM and SAS, with relatively
more mature analytics offerings, are leaders in this dimension. They both recorded the highest scores
for overall customer analytics revenues, revenues taken from telecoms, and total telco install base.
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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NetCracker, on the other hand, which provides a customer experience analytics solution supported by
big-data analytics, returned a strong performance similar to that of the top analytics vendors.
Vendor analysis
IBM (Ovum recommendation: Leader)
Figure 13: IBM radar diagrams
Source: Ovum
Ovum assessment
IBM is one of the leading analytics solution providers globally, offering a broad portfolio of solutions to
telcos to support customer analytics use cases. Customer Experience Analytics, Behavioral Customer
Insights, and Predictive Customer Intelligence form IBM’s analytics offerings to the telcos. The
Customer Experience Analytics product integrates the recently launched Journey Analytics and Digital
Analytics products with the Customer Behavior analytics product into a single platform. In addition to
its prepackaged offerings for telcos, IBM can leverage its Watson Tools like Watson Analytics to help
marketing employees gain access to data in complex data sources without the need for SQL or data
science skills. The Watson Engagement Advisor for Call Center assistance is another application that
can provide subscriber insights to customer service agents (CSAs). The breadth of its customer
analytics portfolio has been driven by the acquired assets some of which include SPSS (for advanced
analytics), Cognos, the Now Factory (for network analytics), and Netezza (its database appliance).
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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IBM returned strong performance for technology assessment, obtaining highest scores for its ability to
meet telco requirements, connect to multiple data sources and its portfolio of applications supporting
use cases for marketing and care. IBM’s customer analytics solutions has one of the most
sophisticated and detailed models for analyzing customer related data, structured, and unstructured
data from data sources such as mobile device data, B/OSS systems, customer surveys, and social
media. Bearing in mind the need for an end-to-end offering, the vendor has succeeded in integrating
assets to develop applications that directly enhance the telcos’ customer operations. For example, the
"next-best-action" bundle for telcos integrates Cognos visualization, SPSS decision modeling, the
Netezza platform, and Unica capabilities to enhance telcos’ campaign operations. With the integrated
functionality of Now Factory, telcos can get a rich set of insights into how people are consuming data
services and also enable the monitoring of quality of experience at subscriber level. Although IBM
offers advanced models to analyze different aspects of telco business, each deployment must be
customized to enable overall customer experience analysis.
IBM delivered impressive results for its execution assessment, obtaining top scores in eight of the
eleven criteria assessed. Some of these criteria include the maturity of its offering, its broad partner
ecosystem, the interoperability of the solution with telcos’ pre-existing systems and its services
portfolio. The company’s analytics capabilities are fully mature, with one of its core products, SPSS,
going back to the 1960s, although it only became one of its assets in 2009. IBM has leveraged its
deep pockets to build its analytics portfolio but has also built partnerships to develop sophisticated
solutions. IBM offers telcos software-as-a-service(SaaS) capabilities, allowing the lower-tiered telcos
to tap into its analytics capabilities. Its commitment to integrating its analytics assets remains a core
asset to the telecoms industry. Although its use of IBM Global Business Services as a preferred
implementation partner provides the vendor with a well-rounded solution to telcos, it is criticized as
being expensive. Due its scale and acquisitions, the vendor has managed to maintain its market
position.
For its market impact assessment, the vendor received top scores for revenue obtained from
customer analytics and its large customer base. IBM has succeeded in using its market position and
variety of offers to stamp itself as the analytics solution provider to beat. IBM has significant
geographic and industry market coverage and a strong telco customer base, operating in more than
175 countries both directly and through partners.
Recommendation: market leader
Telcos should shortlist IBM for its strong customer analytics capabilities. IBM is a long-standing telco
partner and proves its credentials in this field by continuing to invest, as shown through its acquisition
of the Now Factory in 2013, and its integration with its pre-existing analytics capabilities strengthens
its telco offerings.
Appendix
Methodology
Vendor positioning is based on the analysis of a number of sub-criteria for each of three primary
criteria: technology, execution, and market impact. A breakdown of each vendor’s scores across each
dimension is provided within each vendor profile. Based on the combined scoring, Ovum evaluates
Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
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the top vendors that telcos should shortlist, consider, or explore in a customer analytics solution
selection process.
This assessment is based on the following methodology:
 Based on our initial assessment of the customer analytics solutions market for telcos, we
invited a number of vendors to respond to a detailed RFI that asked them to provide data and
supporting documentation around three primary criteria: market impact, customer analytics
technology, and execution.
 In addition to the RFI responses, Ovum invited vendors to provide solution briefings and
product demonstrations.
 Analysis of the three primary criteria was based on a scoring assessment exercise
undertaken for a number of sub-criteria. For each response within the RFI that aligned to the
respective sub-criteria, Ovum rated vendors on a scale of 0–10 based on a consistent set of
best practice standards or benchmarks defined by Ovum. We then aggregated these to
provide a score for each of the three primary criteria.
Further reading
C-Level Insights on Telcos’ Use of Customer Analytics Tools, IT0012-000125 (June 2015)
Author
Adaora Okeleke, Research Analyst, Telecoms Operations and IT
adaora.okeleke@ovum.com
Ovum Consulting
We hope that this analysis will help you make informed and imaginative business decisions. If you
have further requirements, Ovum’s consulting team may be able to help you. For more information
about Ovum’s consulting capabilities, please contact us directly at consulting@ovum.com.
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Ovum Decision Matrix

  • 1. Publication Date: 10 Sep 2015 | Product code: IT0012-000135 Adaora Okeleke Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16
  • 2. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 2 Summary Catalyst Telcos’ quest for a competitive edge in a rapidly changing market means that they need to improve the experience delivered to current customers, acquire new customers, and enhance new revenue streams based on existing services. Consequently, there is also a business demand for systems that provide actionable insights on customers’ behavior and activities, especially in real time, to deliver on these ambitions. However, to achieve these objectives, telcos must use all data sets relating to customers’ interactions with the telco, and the services they consume. For these reasons, analytics solutions are changing; they are moving away from the siloed analytics approach to deliver analytics offerings that use data from multiple data sources across the business. As expected, the competitive landscape is evolving, with NEPs, SIs, and software vendors focusing on the opportunity in telecoms, to offer their solutions. In view of these factors, Ovum has produced this Ovum Decision Matrix to identify how the leading customer analytics vendors stack up against each other in terms of their technology, execution of strategy, and market impact. Ovum view The telecoms industry is fast realizing the value of the data that they hold and how it can enhance their operations in marketing and care. In recent surveys conducted by Ovum with senior telco executives ( Ovum ICT Enterprise Insights 2014 – 15 and Telecoms Customer Analytics Survey 2015), we identified the importance of customer analytics tools to provide insights that support marketing and care operations. To generate the required insights, telcos have to move away from data sets siloed by business unit or technology and move toward combining data sets from network and customer-related data sources across the business. Analytics based on the combination of these two types of data sets generate deeper and richer insights on what the customer is buying as well as how their activities on the network influence their overall experience and vice versa. Given these insights, telcos can proactively respond to customer needs in a way that brings satisfaction to the customer. Vendor solutions analyzed during this research reveal the relative strength of each offering in meeting telcos’ requirements. While some are focused on meeting the demands of a single business unit (i.e. marketing or care) using data from multiple data sources, others are looking to serve both. A large proportion of these solutions are based on big data, with analytics performed in a way that allows for the generation of a comprehensive view of the customer. Overall, our research shows that the pure analytics vendors are doing better than the telecoms-focused players in terms of technology and market impact. In Ovum’s view, it is vendors that can combine strong analytics capabilities with telecoms expertise to serve both units that bring the most value to the telco. Other factors include the maturity and completeness of analytics offering. These vendors are able to pull data from CRM, B/OSS systems and network systems; analyze the data using advanced analytics tools; and operate in offline mode or in real time to generate customer insights relevant to both marketing and care. The ability to deliver these capabilities using prepackaged analytics applications developed with the specific needs of each
  • 3. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 3 unit is the core differentiator. Non-IT or data science users within these business units can utilize the insights as quickly as possible to serve their operational needs. Services will also play a critical role in ensuring that telcos get ta quick return on their investments for these tools. Key findings  Investment in customer analytics solutions is essential to telcos’ achieving and maintaining improved customer experience. As a result, vendors must develop their analytics functions to enable the use of combined data sets from multiple data sources that provide actionable customer insights.  There are a slew of customer analytics applications delivering marketing use cases, but very few are focused on care use cases. This seems like a missed opportunity, as the customer insights that are fed into the marketing systems which enrich outbound offers can also be fed to customer care to deliver proactive care. Vendors such as Amdocs, Ericsson, Guavus, IBM, and NetCracker analyzed in this research address this point.  The most compelling vendor offers combine analytics tools with strong telecoms expertise and a track record in services. In addition the tool should be easy to use for the non-IT specialists in the marketing and care departments.  Ovum has identified three companies as market leaders: IBM is the overall market leader, followed by SAS and NetCracker. This group has a rounded offer using structured and unstructured data sources from network and customer systems. They have long experience in analytics and complementary service capabilities  Amdocs, Comviva, Ericsson, Flytxt, Guavus, and HP are the market challengers, and come from a range of backgrounds. Each vendor comes to the market with unique capabilities, and while they support marketing and/or care use cases, in combination with their strong telecoms background, they lack the depth of analytics capabilities demonstrated by the market leaders.  AsiaInfo and Pontis are the market followers. Both vendors are considered niche, with a limited number of use cases deployed in the market.  Big data and big-data analytics are at the heart of vendors’ development strategies. These features enable not just the analysis of unstructured data sets such as social media but the ability to analyze very large data sets generated from consumption of data services. Vendor solution selection Inclusion criteria Ovum defines a customer analytics solution as a solution that contains a set of tools that can use data related to customers’ entire life-cycle journey with a telco, from acquisition to management to retention, and network-related data. Apart from providing the basic business intelligence and analysis functions such as reporting and monitoring, these tools have to provide advanced analytics capabilities such as data mining and predictive analytics and, in more advanced cases, prescriptive analytics. Finally, these solutions need to deliver these analytics insights either directly to existing business systems such as care and marketing platforms or to prepackaged applications that are designed specific to the telecoms vertical.
  • 4. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 4 The following inclusion criteria had to be satisfied by the participating vendors:  The vendor’s solution must be in commercial use, and have at least one operational telco customer.  The vendor’s customer analytics solution needs to provide prepackaged applications developed specifically to the telecoms industry.  The vendor’s solution needs to leverage data from multiple data sources either using a portfolio of telco data adapters or leveraging data held in telcos’ big-data platforms.  The solution must also have a significant level of brand awareness among telcos. This assessment is based on market impact and recognition within the telecoms industry and among peers. Exclusion criteria The criteria for the exclusion of vendor solution in this decision matrix are as follows:  Vendors that deliver analytics platforms without prepackaged applications that are specific to the telecoms industry were excluded from this research.  Vendors that provide analytics capabilities using a single data source to provide customer insights.  Our list of vendor solutions is not exhaustive. Some vendors we approached were unable to provide us with the required information during the project timeline. Methodology Technology assessment For the technology assessment, Ovum has focused on a set of criteria we consider most critical to telcos for their customer analytics investment. The following functionalities below form the core source of differentiation of vendor offerings:  Fulfillment of core telecoms business user requirement: For this criterion, we have assessed the vendor solution’s ability to provide features such as support for existing business workflows; to extract data from business systems such as CRM, BSS, and OSS systems; and to integrate with existing business systems to provide analytics insights that drive actionable decisions.  Prepackaged analytics applications: We have looked at the suite of applications each vendor provides for both marketing and customer care use cases for telecoms specifically. The ease of use of these applications provided by each vendor was also assessed based on the business user’s experience.  Advanced analytics: To what extent does the solution support advanced analytics capabilities such as predictive analytics, data mining, text analytics, speech analytics, cross- channel analytics, and complex event processing?  Data sourcing: To what extent is the vendor’s analytics solution able to access and analyze structured and unstructured data to provide customer insights?  Foundational BI tools: We have assessed the vendor’s support for reporting, monitoring, querying, and basic analysis functions.
  • 5. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 5  Mobile BI: Does the vendor’s solution provide support for the access of analytics applications using mobile devices?  Administration and system management:We have assessed how easy it is for the telco’s IT unit to monitor and manage the customer analytics implementation (such as user management, query management, upgrade management, system monitoring, and so forth). Execution In this dimension, Ovum has reviewed the capability of the solution in the following key areas of strategy execution:  Maturity: The current status of each vendor’s customer analytics solution and its future road map are assessed. The more established analytics vendors gained the highest scores even though they could be considered as not having core telecoms expertise possessed by vendors with a broader portfolio of telco-specific platforms.  Interoperability: For this criterion we assessed how easily the customer analytics solution can integrate with other best-of-breed telco operational systems, such as CRM, BSS, and OSS.  Innovation: Innovation demonstrated by each vendor can be a key differentiator in the value that a telecoms enterprise achieves from its customer analytics solution. In this criterion, we have assessed the level of innovation demonstrated in the vendor’s product(s), its business alignment, and its strategy.  Deployment: This criterion includes speed of deployment (for varying number of users), the extent to which each vendor satisfies a generic set of service-level agreements, and the support features provided for each solution deployment.  Scalability: Criteria such as the solution’s ability to support a growing number of users and the features provided to support the scaling up or scaling down of solution were assessed here.  Telecoms fit: The alignment of the solution for the telecoms vertical is assessed.  Partner ecosystem: The vendor’s partner ecosystem is assessed, taking into account the number and strength of technology partners as well as reseller partners.  Professional services: The vendor’s portfolio of professional services such as solution implementation, consulting, systems integration, training, and managed services provided to telco customers are examined.  Sales model: The number of direct and indirect sales channels that the vendor can access when selling to the market is analyzed. Market impact The global market impact of a solution is assessed. Market impact is measured across five categories, each of which has a maximum score of 10 and is weighted in favor of the market leader:  Revenues obtained from customer analytics solutions: Each solution’s global customer analytics revenues is calculated as a percentage of the market leader's revenue. This percentage is then multiplied by 10 and rounded to the nearest integer value.  Telecoms revenues obtained from customer analytics solutions: Ovum estimates each vendor’s revenues in the customer analytics space from the telecoms industry. These
  • 6. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 6 revenues are calculated as a percentage of the highest telecoms revenues reported, multiplied by 10, and then rounded to the nearest integer value.  Telecoms installed base: The total installed base of each vendor’s solution within telecoms is obtained and a weighted score is calculated as a percentage of the largest install base quoted by all participating vendors, multiplied by 10, and then rounded to the nearest integer value.  Geographical penetration: Ovum determines the number of countries in which the vendor has a presence. This number is calculated as a percentage of the market leaders’ geographic reach, multiplied by 10, and then rounded to the nearest integer value.  Total investment: Each vendor is awarded a score based on an estimate of the value of total investment committed to the development of the customer analytics solutions. The value is calculated as a percentage of the market leader's investment, multiplied by 10, and then rounded to the nearest integer value. Ovum ratings  Market leader: This category represents the leading solutions that we believe are worthy of a place on most technology selection shortlists. The vendor has established a commanding market position with a product that is widely accepted as best-of-breed.  Market challenger: The solutions in this category have a good market positioning and are selling and marketing the product well. The products offer competitive functionality and good price-performance proposition, and should be considered as part of the technology selection.  Market follower: Solutions in this category are typically aimed at meeting the requirements of a particular telco department. As a tier-one offering, they should be explored as part of the technology selection. Market and solution analysis Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–2016 Investment in customer analytics is critical to telcos looking to grow their revenues and improve the service experience delivered to their customers. Meeting these objectives will require vendors to not only provide a strong analytics portfolio but satisfy a broad array of factors, including the degree to which the solution is able to use all of the telco’s data about its customers and so meet the telco’s business and operational needs. Figures 1 and 2 below represent Ovum's view of the overall technology strength, market impact, and execution ability of the key customer analytics vendors that were selected for assessment in this report.
  • 7. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 7 Figure 1: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 Source: Ovum
  • 8. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 8 Figure 2: Expanded view of Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 Source: Ovum Table 1: Ovum Decision Matrix: Customer analytics for telcos, 2015–16 Market leaders Market challengers Market followers IBM Amdocs AsiaInfo NetCracker Comviva Pontis SAS Ericsson Flytxt Guavus HP Source: Ovum
  • 9. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 9 Market leaders: IBM, NetCracker and SAS The grouping of vendors in the “leaders” category highlights how the varying factors considered for the ODM come together to provide a compelling offer to the telcos. While NetCracker is the only vendor in this category with a core telecoms background serving telcos across other business domains, IBM and SAS have a long history of supplying analytics solutions to telcos and are considered top-ranking vendors providing business intelligence and analytics capabilities. IBM received highest scores in all three dimensions assessed: technology, execution and, market impact. The company has a long history as a strategic partner to telcos, providing a comprehensive analytics portfolio that serves multiple operational units within a telco in addition to marketing and care. With a portfolio that includes assets such as IBM Unica for campaign management; IBM Now factory for network analytics; IBM SPSS, which delivers advanced analytics capabilities; and IBM Watson to support care agents with cognitive insights, it continues to evolve its solutions and its service portfolio. The vendor is a strong candidate to be shortlisted by all telcos. NetCracker is a telecoms software specialist and provides analytics solely for the telecoms vertical across multiple regions and tiers. The vendor has combined its understanding of telco data with sophisticated analytics capabilities inherited from its parent company, NEC, and delivered intuitive applications that can serve marketers and customer care agents. Furthermore, the vendor’s telco back office offerings (B/OSS) and services offerings allows the vendor to gain in-depth understanding of telcos’ core challenges; it can leverage these insights to develop solutions that align with telcos’ objectives. The company falls into the “market leaders” category because of its focus on the telecoms sector and the maturity of its analytics offerings. SAS scored second-highest on Ovum's market impact evaluation due to its large customer install base and revenues generated from its marketing analytics offerings. The vendor delivers a robust analytics suite of applications that serves multiple use cases for both marketing and customer care. Its customer link analytics application adopted by several tier-one telcos is core to the vendor’s value proposition for telcos, enabling them to improve marketing functions such as customer retention, cross-sell/upsell, and customer acquisition. The vendor has a strong partner ecosystem consisting of IT service specialists such as Accenture, to enhance its service offerings and analytics applications for care. Advanced analytics continues to be a differentiator for SAS. The vendor, however, doesn’t have the capability in terms of capacity and competences demonstrated by the other two leaders. The company would rely on its services partners to provide services. Market challengers: Amdocs, Comviva, Ericsson, Flytxt, Guavus, HP This category demonstrates the wide array of vendors looking to capitalize on the analytics opportunity in the telecoms vertical. The main differentiation between these vendors’ offerings is seen in the array of applications provided and the data sources consumed to provide the analytics insights. Amdocs has utilized its data-management-service capabilities to put together its customer analytics proposition. Taking advantage of its more than seven years of experience helping telcos manage their back-office operations, the vendor has developed a logical data model that takes into consideration a 360-degree view of telco customers. Using this model, the vendor has developed analytics applications prepackaged to simplify telcos’ adoption of analytics insights for their marketing and care
  • 10. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 10 operations. The vendor has leveraged its acquisitions of Changing Worlds and Actix to create an analytics offering that takes an overall view of the customer to deliver actionable insights that support marketers in delivering personalized offering and care agents to ensure that best experience is offered to clients. Its analytics capabilities are, however, less mature than those of NetCracker. Comviva is a specialist in the development of telco-focused value-add solutions. The company’s RevenuePlus product has a strong play within the prepaid markets in emerging markets. RevenuePlus targets marketing and care departments with use cases that utilize data insights obtained from consolidated data, to provide a consistent view of the customer. In terms of its execution scores, the vendor’s solution provides good interoperability capabilities and has strong service capabilities. Ericsson is fast consolidating its analytics capabilities embedded within its vast array of OSS and BSS portfolios. The vendor recently launched Expert analytics as a big-data analytics solution, with the capability to improve customer experience leveraging data from multiple data sets. Although a late starter in the big-data analytics domain, the vendor has a strong play in the analytics domain. Ovum expects to see the vendor improve on its current offering.by integrating the analytics capabilities of recent acquisitions such as Sentilla’s predictive analytics. The inclusion of these capabilities and the rollout of new applications could see the vendor move into the “leaders” category. Flytxt is an established marketing-analytics solutions provider that utilizes big-data analytics to generate insights that can be fed to telcos’ revenue- and customer-experience-management solutions. The vendor’s NEON platform delivers seven applications that support use cases such as customer engagement, loyalty management, and targeted marketing. Flytxt has also demonstrated strong capabilities to support telcos in emerging markets. Guavus is a core analytics vendor with deep telecoms expertise and experience. Guavus’ Reflex platform performs advanced analytics functions to generate insights which are fed to a suite of prepackaged analytics applications. Other business systems can consume the analytics results via the Reflex API. The vendor scored highly in the execution dimension given its partner ecosystem, which consists of top technology players such as Cisco and Samsung as well as service players such as Accenture and Deloitte. Having integrated its acquired offerings from Autonomy and Vertica, HP stands as a market challenger presenting a broad profile of use cases for telco marketing. These use cases take advantage of the analytics functions of Autonomy’s IDOL, such as search and text analytics, in addition to the real-time data processing capabilities of Vertica. The main drawback for HP is the telco’s business user experience delivered by the solution, which the vendor has indicated would be delivered as an enhanced feature in its six month road map. Market followers: AsiaInfo and Pontis The vendors that fall into the follower category have demonstrated core analytics capabilities that would be attractive to vendors, but their coverage in terms of use cases and data sources used for analytics are limited compared to vendor solutions that fall within the leader and challenger categories AsiaInfo is a leading supplier of telco BSS and CRM systems and also provides Veris BI platform. Veris BI provides analytics functions to its BSS platform. The vendor’s move into the analytics domain was accelerated by the release of Veris C3, a big-data appliance (hardware and software delivered in
  • 11. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 11 a single box) that collects and analyzes streaming data to understand customer’s consumption patterns. As a result, telcos can look to use AsiaInfo’s customer analytics solution to enrich processes such as customer segmentation for targeted offerings. The vendor needs to enhance the analytics functions provided by its solution as it plans to position itself as a strong player within the customer analytics market. This can be achieved through partnerships. Pontis is positioned as a market follower due largely to the niche analytics use cases the vendor provides. The vendor delivers analytics capabilities that enable telcos to engage with customers using its continuous contextual approach to monitoring customer life cycle. The vendor received its highest scores in the market-impact dimension, receiving an above-average score for its customer install base. To compete effectively in the analytics space, the vendor will need to extend current use cases beyond customer engagement. Market leaders Market leaders: technology Figure 3: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 – Market leaders – technology Source: Ovum
  • 12. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 12 Overall, IBM’s portfolio of customer analytics solutions was the outstanding solution in terms of our technology assessment, featuring as a leader in five of the seven categories assessed. NetCracker and SAS gained similar overall scores, but SAS outperforms NetCracker in the advanced analytics category, while NetCracker leads in the prepackaged analytics applications category (offering applications with a broader set of use cases that cuts across marketing and customer care). Telco- focused vendors such as Amdocs and Ericsson, with broad BSS and OSS capabilities, score well but do not have the full analytics offerings delivered by the market leaders. Most of the participating vendors returned a good performance with respect to satisfying the fundamental user requirements, which include the ability to support user-defined workflows and the integration of analytics solutions with pre-existing telco systems. Ovum expects to see advancement in the technology features delivered by these vendor solutions. Currently, there’s a lot of investment going into big-data analytics to enable the analytics of a broader set of data sources (structured, semi-structured, and unstructured). Major releases of solutions in the next 12–24 months will be based on the delivery of prepackaged applications that fast-track telcos’ adoption of big-data analytics.
  • 13. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 13 Market leaders: execution Figure 4: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 – Market leaders – execution Source: Ovum The execution category assesses the maturity and the ability of the vendor to successfully deploy, integrate, support, maintain, and further develop the product.The vendors with more mature solutions backed by a solid services portfolio provided either directly or indirectly through partners led in the execution dimension. Leaders include IBM, HP, NetCracker, and SAS. Core to vendors’ execution is their ability to integrate as quickly as possible with open-source and third-party solutions. More than half of the vendors assessed in this ODM scored highly in the interoperability category, providing out-of-the-box integration capabilities that allow for ease of integration with existing telco business systems. It is not surprising to see that Ericsson and NetCracker, with strong BSS and OSS portfolios, recorded high scores in this category. These vendors continue to drive an integration strategy that ensures that analytics results are served to as many systems as possible to deliver actionable insights.
  • 14. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 14 As vendors enhance their analytics portfolios, it’s important to take note of deployment strategies. NetCracker, IBM, SAS, and HP scored highly in this dimension. HP, IBM, and SAS, for example, allow for easy deployment of updates to their solutions without requiring additional support. As telcos become more focused on cutting costs, the reduction in deployment costs will be become a core driver during vendor selection processes. Market leaders: market impact Figure 5: Ovum Decision Matrix: Customer analytics solutions for telcos, 2015–16 – Market leaders – market impact Source: Ovum With the evolution of customer analytics solutions, it is no surprise that IBM and SAS, with relatively more mature analytics offerings, are leaders in this dimension. They both recorded the highest scores for overall customer analytics revenues, revenues taken from telecoms, and total telco install base.
  • 15. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 15 NetCracker, on the other hand, which provides a customer experience analytics solution supported by big-data analytics, returned a strong performance similar to that of the top analytics vendors. Vendor analysis IBM (Ovum recommendation: Leader) Figure 13: IBM radar diagrams Source: Ovum Ovum assessment IBM is one of the leading analytics solution providers globally, offering a broad portfolio of solutions to telcos to support customer analytics use cases. Customer Experience Analytics, Behavioral Customer Insights, and Predictive Customer Intelligence form IBM’s analytics offerings to the telcos. The Customer Experience Analytics product integrates the recently launched Journey Analytics and Digital Analytics products with the Customer Behavior analytics product into a single platform. In addition to its prepackaged offerings for telcos, IBM can leverage its Watson Tools like Watson Analytics to help marketing employees gain access to data in complex data sources without the need for SQL or data science skills. The Watson Engagement Advisor for Call Center assistance is another application that can provide subscriber insights to customer service agents (CSAs). The breadth of its customer analytics portfolio has been driven by the acquired assets some of which include SPSS (for advanced analytics), Cognos, the Now Factory (for network analytics), and Netezza (its database appliance).
  • 16. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 16 IBM returned strong performance for technology assessment, obtaining highest scores for its ability to meet telco requirements, connect to multiple data sources and its portfolio of applications supporting use cases for marketing and care. IBM’s customer analytics solutions has one of the most sophisticated and detailed models for analyzing customer related data, structured, and unstructured data from data sources such as mobile device data, B/OSS systems, customer surveys, and social media. Bearing in mind the need for an end-to-end offering, the vendor has succeeded in integrating assets to develop applications that directly enhance the telcos’ customer operations. For example, the "next-best-action" bundle for telcos integrates Cognos visualization, SPSS decision modeling, the Netezza platform, and Unica capabilities to enhance telcos’ campaign operations. With the integrated functionality of Now Factory, telcos can get a rich set of insights into how people are consuming data services and also enable the monitoring of quality of experience at subscriber level. Although IBM offers advanced models to analyze different aspects of telco business, each deployment must be customized to enable overall customer experience analysis. IBM delivered impressive results for its execution assessment, obtaining top scores in eight of the eleven criteria assessed. Some of these criteria include the maturity of its offering, its broad partner ecosystem, the interoperability of the solution with telcos’ pre-existing systems and its services portfolio. The company’s analytics capabilities are fully mature, with one of its core products, SPSS, going back to the 1960s, although it only became one of its assets in 2009. IBM has leveraged its deep pockets to build its analytics portfolio but has also built partnerships to develop sophisticated solutions. IBM offers telcos software-as-a-service(SaaS) capabilities, allowing the lower-tiered telcos to tap into its analytics capabilities. Its commitment to integrating its analytics assets remains a core asset to the telecoms industry. Although its use of IBM Global Business Services as a preferred implementation partner provides the vendor with a well-rounded solution to telcos, it is criticized as being expensive. Due its scale and acquisitions, the vendor has managed to maintain its market position. For its market impact assessment, the vendor received top scores for revenue obtained from customer analytics and its large customer base. IBM has succeeded in using its market position and variety of offers to stamp itself as the analytics solution provider to beat. IBM has significant geographic and industry market coverage and a strong telco customer base, operating in more than 175 countries both directly and through partners. Recommendation: market leader Telcos should shortlist IBM for its strong customer analytics capabilities. IBM is a long-standing telco partner and proves its credentials in this field by continuing to invest, as shown through its acquisition of the Now Factory in 2013, and its integration with its pre-existing analytics capabilities strengthens its telco offerings. Appendix Methodology Vendor positioning is based on the analysis of a number of sub-criteria for each of three primary criteria: technology, execution, and market impact. A breakdown of each vendor’s scores across each dimension is provided within each vendor profile. Based on the combined scoring, Ovum evaluates
  • 17. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 17 the top vendors that telcos should shortlist, consider, or explore in a customer analytics solution selection process. This assessment is based on the following methodology:  Based on our initial assessment of the customer analytics solutions market for telcos, we invited a number of vendors to respond to a detailed RFI that asked them to provide data and supporting documentation around three primary criteria: market impact, customer analytics technology, and execution.  In addition to the RFI responses, Ovum invited vendors to provide solution briefings and product demonstrations.  Analysis of the three primary criteria was based on a scoring assessment exercise undertaken for a number of sub-criteria. For each response within the RFI that aligned to the respective sub-criteria, Ovum rated vendors on a scale of 0–10 based on a consistent set of best practice standards or benchmarks defined by Ovum. We then aggregated these to provide a score for each of the three primary criteria. Further reading C-Level Insights on Telcos’ Use of Customer Analytics Tools, IT0012-000125 (June 2015) Author Adaora Okeleke, Research Analyst, Telecoms Operations and IT adaora.okeleke@ovum.com Ovum Consulting We hope that this analysis will help you make informed and imaginative business decisions. If you have further requirements, Ovum’s consulting team may be able to help you. For more information about Ovum’s consulting capabilities, please contact us directly at consulting@ovum.com. Copyright notice and disclaimer The contents of this product are protected by international copyright laws, database rights and other intellectual property rights. The owner of these rights is Informa Telecoms and Media Limited, our affiliates or other third party licensors. All product and company names and logos contained within or appearing on this product are the trademarks, service marks or trading names of their respective owners, including Informa Telecoms and Media Limited. This product may not be copied, reproduced, distributed or transmitted in any form or by any means without the prior permission of Informa Telecoms and Media Limited. Whilst reasonable efforts have been made to ensure that the information and content of this product was correct as at the date of first publication, neither Informa Telecoms and Media Limited nor any person engaged or employed by Informa Telecoms and Media Limited accepts any liability for any errors, omissions or other inaccuracies. Readers should independently verify any facts and figures as no liability can be accepted in this regard – readers assume full responsibility and risk accordingly for their use of such information and content.
  • 18. Ovum Decision Matrix: Selecting a Customer Analytics Solution for Telcos, 2015–16 © Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 18 Any views and/or opinions expressed in this product by individual authors or contributors are their personal views and/or opinions and do not necessarily reflect the views and/or opinions of Informa Telecoms and Media Limited.
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