BI - EPM for Telecom

The Romans used the Latin word communicare when they meant "to make common, to share, or to impart.”.............

There is a tremendous amount of data in the telephone industry. Compared to other industries, the telecom industry simply overwhelms other industries when it comes to volumes of data. The primary factor for inflating volume of data is call level detail. Call level detail is the data regarding every phone call made – the date and time of the call, where the call was placed from, where the call went to, and how long the call was. The fact is that there are a LOT of phone calls being made, and keeping track of every one is a real challenge. Furthermore, for the most part, the phone calls exist at the lowest level of granularity. The telephone companies feel that they need the flexibility that comes with having data at the lowest level of detail. So when it comes to looking at gigantic amounts of data, telephone companies have pretty much everyone in the world beat

Telecommunication companies today operate in more and more competitive and commoditized market. The value for the enterprises lies in aggressively retaining and growing the customer base and extracting more value from each customer relationship. Business managers in the Communication industry are faced with the challenge of ever-changing market conditions. They therefore need information at their fingertips to anticipate these changes and quickly make informed decisions. Decision-making in the Communication industry today demands high-quality intelligence.

BI EPM architecture diagram shown below points out key components of Telcom solution and possible analytical solutions using it.

Telecom BI - EPM Architecture

Transactional System Layer

Call Detail Record

Keeps track of call level details and packaging, pricing, provisioning, billing, and posting or presentment of telephone services for purposes of revenue generation

Customer Acquisition

Inbound sales, new member sign-up, Cross sell / Up-sell, Retention and churn management

Customer Support and Service Fulfillment Billing queries, issue resolution and dispute management, Service provisioning (assignment, activation etc.), Order management, Credit management, Contract renewals and administration

Billing, collection

Facilitates bill generation, delivery, collection management, mode of collection

Back-office Shared Services Functions

Finance and accounting, Human Resource Outsourcing, Strategic sourcing, procurement and supply chain management, Telecom expense management, Interconnect billing.

Analytics Layer

Executive Dashboard for telecom provides real-time, accurate and Comprehensive view of the Telecom Performance. Business Plan to gain better ROI through Performance Indicators, forecasting, variance to help telecom team for better strategic Decisions making to increase the market share. Executive Dashboard provides the entire Key performance indicator which effects Telecom Management & Provide better solution for future Prediction of upcoming activities which affect Telecom Management.

Revenue Analytics gives comparative Analysis for No of SMS/calls and revenue generated by Prepaid SMS/calls and Postpaid SMS/calls for last four years. Detail level information section contains comparative analysis of International, National and local SMS/calls and revenue generated by International, National and local SMS/calls. User has extensive power of forecasting by using sliders for International, National and Local SMS/calls.

Churn rate describes the Total number of users has disconnected the service divided by the total users continuing the service for the same duration.Churn Rate Analysis contains Yearly Churn Rate comparison for last few years with alerts,Circle Wise Churn Rate status with the break up of Over-all churn and Contract Churn,Circle Wise Total Subscriber base for each year,Circle Wise Comparison for Year to date Churn values,Monthly Comparison of Churn Values for the multiple selected Circle for seasonality analysis.

ARPU is the core KPI for the Telecom industry where every manager wants to know the status of the Average Revenue per User. It is a powerful and extremely useful indicator of how well a telecom company is accessing its customers’ revenue potential. ARPU is commonly calculated in standard mathematical fashion, by dividing the aggregate amount of revenue by the total number of users who provide that revenue. ARPU is important because it provides a breakdown of what is driving revenue growth, and it also gives some indications of what is driving margins. Growing by increasing revenues from users tends to be better for margins than increasing revenues by increasing the user base, as the latter incurs additional costs. ARPU growth can also indicate how successful a company is being in moving users to new services that are regarded as strategically important. This KPI should be measured for each business as well as category of business for better classification and decision making

Some more analytics

• Churn Analysis
• Product Analysis
• Network Optimization
• Roaming Analysis
• Customer Segmentation
• Fraud Detection
• ARPU/ARPM Analysis
• Campaign Management
• Pricing Analysis
• Collection Analysis

Benefits

• Reduced customer churn
• Manage the costs of regulatory reporting
• Expand product offerings and profitability
• Build effective supplier and distribution channels
• Improved customer loyalty
• Provide customers with online use and bill analysis
• Increased understanding of call-detail records
• Improved effectiveness of marketing strategies
• Improved customer service