Implementing a business intelligence (BI) strategy can provide several potential benefits for telecom operators. As the telecom market evolves from introduction to maturity, BI enables more advanced customer activity analysis to define customer segments based on both behavior and value. This allows operators to design customized offerings that meet the needs of micro-segments. Advanced analytics also benefit operators by extracting more value from customers and enhancing usage across the customer base. Ultimately, a BI solution supports a more detailed understanding of profitability by analyzing customers according to both their behavior and value.

1. Outlining the Potential Business Benefits For Implementing a BI
Strategy
Business Intelligence for Telecom Operators
21st – 24th January 2007
Dubai
Luna Kawash
BP & BI Manager

2. Agenda
• Market evolution & the need for BI
• Enhancing profitability analysis
• Data analysis & reporting processes
• Benefiting form BI solution

3. Market Evolution
Introduction Early Growth Growth Maturity
Penetration
Market
Evolution 60-80%
15- 20%
5-10%
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest

4. Customer Activity Analysis
Introduction Early Growth Growth Maturity
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest
Building Customer Definition of Definition of
Customer
activity customer information major customers
analysis knowledge history customer micro-
available segments behavioral
segments

5. Customer Activity Analysis – Introduction Phase
Introduction Early Growth Growth Maturity
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest
• Limited/no customer activity information
• Basic behavioral analysis – usage/call destination/revenue/price plan
Customer distribution
activity
analysis • Customers are segmented based on price plan preference
• Basic analytical tools / basic analytical skills required form business analysts

6. Customer Activity Analysis – Early Growth Phase
Introduction Early Growth Growth Maturity
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest
• Customer behavioral and historical information available
• More detailed behavioral analysis – usage/call destination/revenue/price plan
Customer distribution/time of call/receptiveness to promotions/receptiveness to price
activity change
analysis
• Customers are segmented based on price plan preference/calling behaviors
• Basic analytical tools / basic analytical skills required form business analysts

7. Customer Activity Analysis – Growth Phase
Introduction Early Growth Growth Maturity
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest
• Products & services are designed to meet the needs of different behavioral
segments
Customer • Advanced analysis – Hourly behavioral analysis/ value analysis / customer
activity
segmentation based on both behavior & value/ customer base
analysis
clustering/profitability analysis
• More advanced analytical tools / advanced analytical skills required form
business analysts

8. Customer Activity Analysis – Maturity Phase
Introduction Early Growth Growth Maturity
• Basic voice • Basic voice • More advanced P&S • More segmented
services services/ more & segmented products
offerings products
• Very high • Mobile phone users
Market value • Medium to low value across all value
• High value
highlights subscribers subscribers join segments
subscribers
• 1-2 players • 1-2 players in the • Competition • Competition at
in the market market increases highest
• Micro-segments are approached with customized offerings to meet their
needs
Customer • Benefiting form advanced analytics to extract value & enhance usage
activity
analysis • Micro-segments are defined and analyzed
• Advanced BI tools / professional analytical skills required from business
users

9. Customer Profitability Analysis
Value Segmentation
Customer base according to value
Advantages:
• Better understanding of the size
of each value segment
High • Value based loyalty
• Value based promotions
Medium
Lacks:
• Understanding of segments
needs & behavior
Low
• Not actionable
Unprofitable
Customer Base

10. Customer Profitability Analysis
Value Segmentation
Customer base according to behavior & Value
Behavioral/value segmentation:
• Products & services designed
High
based on both value and
behavioral needs for each
segment
Medium
• High value micro segments
can be approached with
customized offers
Low
• Actionable – easy to target
Unprofitable
Seg (1) Seg (2) Seg (3) Seg (4) Seg (5)

11. Reporting & Data Analysis
Process
Product / Segment
IT Systems IT Mangers Business Analyst Market
Manger
Data Extraction Data Request
Process
Data
warehouse
& other
storage
systems
Requested data Key findings & Product Launch
Data
ready for analysis recommendations
Preparation
50-60% 20-25% 20-25%
Data Extraction Data Analysis Product Design &
Development

12. Reporting & Data Analysis
Process
Business user concerns:
• Long time to process data requests
• Time required to ensure data quality (especially when extracted from multiple sources)
• Analytical tools limitations (Excel/Access)
• Limited time for analysis
• Long time to market

13. Reporting & Data Analysis
BI Solution
Product / Segment
BI Solution Business Analyst Market
Manager
Data Extraction
Data Mart
Requested data Key findings & Product Launch
ready for analysis recommendations
20-30% 35-40% 35-40%
Data Extraction Data Analysis Product Design &
Development

14. Reporting & Data Analysis
BI Solution
Data Mart
Benefits:
• Less time required for data extraction & preparation
• Data is refreshed periodically
• More advanced analytical tools enabling business users to build behavioral models,
segmentation… etc.
• More time to analyze & draw conclusions
• Shortened time to market

15. Thank You