The document discusses the role of Key Performance Indicators (KPIs) in the telecom industry, emphasizing their importance in measuring performance, making data-driven decisions, and improving customer satisfaction. It categorizes various KPIs related to business processes, network performance, customer satisfaction, and marketing, outlining the necessity for real-time business intelligence to enhance operational efficiency. Additionally, it stresses the need for actionable insights derived from accurate, timely data to support strategic decision-making in a competitive environment.

1. Role of KPI’s in Building
Business Intelligence
A Study on KPI’s in Telecom Industry
Prepared by
Sai Venkatesh Attaluri

2. Introduction
 A Key Performance Indicator (KPI) is a
measure of performance. Such measures
are commonly used to help an organization
define and evaluate how successful it is,
typically in terms of making progress
towards its goals.
 KPIs may be monitored using BI techniques
to assess the present state of the business
and to assist in prescribing a course of
action. The act of monitoring KPIs in real-time
is known as Business Activity
Monitoring (BAM).

3. Identifying KPI’s
 Performance indicators differ from business
drivers & goals. A school might consider the
failure rate of its students as a KPI which
might help the school understand its position
in the educational community, whereas a
business might consider the percentage of
income from return customers as a potential
KPI.
 But it is necessary for any organization to at
least identify its KPIs.

4. Identifying KPI’s
The key environments in identifying KPIs are:
 Having a pre-defined Business Process (BP).
 Requirements for the Business Processes.
 Having a quantitative/qualitative measurement of the
results and comparison with set goals.
 Investigating variances and tweaking processes or
resources to achieve short-term goals.
 A KPI has to follow the SMART criteria. This means the
measure has a Specific purpose for the business, it is
Measurable, Achievable, Relevant to measure and it
must be Time phased.

5. Categorization Of Indicators
 KPI’s define a set of values used to measure
against.
 Quantitative indicators which can be presented as
a number.
 Practical indicators that interface with existing
company processes.
 Directional indicators specifying whether an
organization is getting better or not.
 Actionable indicators are sufficiently in an
organization's control to effect change.
 Financial indicators used in performance
measurement and when looking at an operating
index

6. KPI’s of Telecom Industry
 The KPI of a telecom field can be
categorized as the following.
Business & Marketing,
Revenue / Financial Analysis
Network Performance & Analysis
Customer Satisfaction,
Customer Analysis.
Quality / Usage (Airtime)
Coverage,
Faults and complains,
Etc

7. • Grievance
• Satisfaction
• Call Center
KPI’s of a Telecom
• Finance
• HRM
• SCM
• U & R,
• VAS
• Vendors
• Engagement
• Development
• Operations
• Network
• Coverage
Technical Business
Admin Customer

8. KPI’s of Network Performance
 Service Availability
 Grade of service
 Service life of equipment
 Bit error ratio
 Bit rate
 Downtime / Time out of service
 Call completion ratio
 Cost of support systems
 Cost of operational system
 Average call length
 Analysis of ASR routes
 Network traffic, congestion
 Idle time on network
 Dropped calls

9. KPI’s of Customer Satisfaction
Average score from external surveys
Average score from internal survey
Average score from call monitoring
Total number of complaints
Total number of unresolved issues
Number of responses generated

10. KPI’s of Network Coverage
% of land covered with services
% of population covered with services
Average land unavailable to services
Average population unavailable to
services
Access to customer service

11. Need of KPI’s in Marketing
 Today, telecommunication industry is no longer
technology centric, but it revolves more around
customer relationship.
 The cut throat competition in the telecom
industry lead to tariff cut downs resulted in churn
away profit margins and thereby intelligent
decision making critical.
 Customer satisfaction and Marketing
Intelligence for segmenting customers as per
their needs with innovative promotional
schemes are the drivers of business.
 Thus the need of KPI’s centric to customer’s
behavior has become vital in Marketing
Intelligence

12. Marketing KPI’s
 KPI’s on
AON
ARPU
IN DECR
PF
Recharge Metric
Recharge MRP
Voucher Group
Customer Profile
Circle, Handset, Active/Inactive, Pre-Post, etc
Data Usage (2G / 3G / Social Networking)
Volume Based
Pack Activation

13. Marketing KPI’s
 Churn (Voluntary / Involuntary)
SMS Usage ( Local / National / ISD)
Voice Usage
Out Going / Incoming OnNet
Local / STD / ISD
Out Going / Incoming OffNet
Local / STD / ISD
Roaming
OG P2A Etc
VAS Usage
And the list goes on………………….

14. Using KPI’s
 If the performing indicators are few a simple
spread sheet can help to figure out the factors
impacting the business. But reality is far
different.
 The list of KPI’s and their subsets are
innumerous in each vertical and yet dynamic in
nature changing continuously becoming a reap
of historical data making it difficult to take
decisions at every level.

15. Using KPI’s for Intelligence
 The data generated by KPI’s in its operations
which is both accurate and timely needs to be
processed and give a bird’s view to the decision
makers . They require real-time, actionable
business intelligence for proactive
management rather than the “management by
hindsight.
 What is Business Intelligence?
 First, all numbers are not analytics nor do
they necessarily lead to any kind of
“intelligence” . There are some clear
definitional criteria that we can use to ensure
we are talking about BI.

16. Bringing Intelligence
 Business intelligence is intended to provide
foresight by synthesizing to become useful
mission-critical information that allows to make
an executive decision.
 BI is derived from real-time data. For decision-making,
the data used has to be up-to-the-minute
real time data in order to accurately
represent the state of the business.
 In telecom eco system, even yesterday’s data is
“old” ― data a few hours old is many a times
accounted to make decisions.

17. Bringing Intelligence
 BI should empower users to have access to real-time
analytic data to use in their daily work. Gone
are the days where BI used to be under the purview
of the statisticians or strategy experts.
 Instead of choosing which employees can have
access to what information, its imperative to ensure
that the productivity and quality of employees work
will be enhanced with all the data they need on their
dashboards.
 Research tells us that professionals spend 53
percent of their time seeking out information.
Collectively, the time spent gathering and
looking for information translates to an
estimated. 5.4 billion lost hours per year for US
corporations.

18. Challenges without BI
 Lack of Visibility
◦ Leads Vs Conversions
◦ Forecasts Vs Actual
◦ Sales Vs Realization
◦ Product A Vs Product B
◦ Client A Vs Client B
The above example appears to be “What complexity is there
for the requirement of a system assisted intelligence?”
But if the above data is drilled down – by region, by customer,
by product, by time of purchase, by location, by frequency,
by method / channel of campaign etc., can a normal
reporting system easily slice and dice the data such that the
best option of taking a quick decision making be done
without any expertise of a Statiscian?

19. Intelligence in Displaying Data
 To make day-to-day decisions smarter and faster, it is critical to
have the data in hand is accurate, real-time, consistent, easy
to retrieve, and displayed in a fashion that is easily
understood by the user. The resulting intelligence has to be
crystal clear so erroneous conclusions and faulty decisions are
not made from the data presented at all levels be it
Operational, Tactical or Strategic.
 It is important that the data presented with intelligence to your
users maintains the following characteristics:
◦ Clear Insights
◦ No ambiguity
◦ Understandable format to the users
◦ Simple and uncluttered
◦ Flexible format to change to another format.

20. Conclusion
 The goal of business is not to just track
metrics of KPI’s but it is to use those
metrics in conducting business to
enhance revenue now and in the future
by correct decision making now and for
the future.

21. Thank You
References
www.KPIlibrary.com
www.telecomasia.net
www.smartkpis.com