BI in Telecommunication Sector

Presented by:Sushant Kumar (09BM8052)

Amey Kolhatkar (09BM8008)

Indian Telecom Sector

• The Indian Telecommunications network with 621 million connections (as on March 2010) is the third largest in the world.

• The sector is growing at a speed of 45% during the recent years.

• Expected mobile subscriber base will touch around 771 million by the year 2013.

Trend in Telecom Sector

Source: TRAI

Major Players

Need for BI in Telecom

• Customer Profitability: It is imperative they acquire new, profitable customers as well as increase the profitability of existing ones

• Cross selling: This can be a major source of selling for a telecom company. For effective cross-selling, existing data can be leveraged using business intelligence solutions to quickly zero in on new products that may be required by existing customers.

• Customer Attrition: Acquiring new customers is much more costly than retaining existing ones. Customer attrition analysis is an essential step in customer retention.

• Customer Segmentation: Segmentation is used to segregate customers who exhibit common characteristics in different segments.

Need for BI in Telecom

• Campaign Analysis: Campaign analysis is used to analyze the effectiveness of a marketing or promotion campaign. The effects of a particular campaign on sales of the promoted product can be tracked using business intelligence solutions

• Forecasting: To plan their networks, telecommunications service providers perform forecasting that helps operators to make key investment decisions

• Budgeting: Data warehousing facilitates analysis of budgeted versus actual expenditure for various cost heads like promotion campaigns, product development, infrastructure maintenance, investments, commissions, etc.

Source: Ingres Insights website

BI at Vodafone

• Vodafone were able to describe various benefits since implementing their BI solutions:– Automated import of measurement data from a wide

variety of sources, allowing the automatic creation of up-to-the-minute reports.

– Constant access to the reports from anywhere and at any time via the intranet or Internet using a Web browser.

– Standard presentation media; standard layout following corporate identity guidelines.

– Dynamic selection of the level of detail in the reports.– Dynamic creation of trend reports.

BI at Reliance Comm

• Reliance Communications’ performance improvement. – Data loading took almost 2 - 3 hours.– Greenplum Solution selected the S1004 model of the Sun

Data Warehouse Appliance.– The time required to turn around a request for detailed

call records shrank by over 80%, from multiple days to a few hours.

– Reduced the average time to load a day’s worth of data by over 90%, from 2 hours to under 10 minutes.

BI at Airtel

• The company wanted to :Identify the usage patterns at an individual level and Offer each customer customized plans based on his/her usage

• The company started using BI tools from 1997-98.• A key insight that Airtel obtained was that critical business and

marketing decisions were being based on daily revenues that were around 15% – 16% less than the actual amount

• Airtel could possibly leverage its data management expertise in the Value Added Services (VAS) based on consumer usage patterns

• The decision-making process has effectively moved from an observation to a prediction model

DW Architecture

Data Warehouse (DW) lifecycle

• Determine the reports required

• Identify data sources• Data Extraction

Identification & Extraction

• Build and populate a dimensional database

• Build ETL

Building Dimensional Model & ETL • Build and populate

Analysis Services cubes

• Build reports and analytical views

Report Generation

Processes with Reporting requirements

Sales and Marketing

Call traffic

Customer Billing

Supply chain management

The Bus Matrix

Time Customer

Product

Promotion

Sales Executive

Location

Retailer

Service Line

Sales and Marketing

Call traffic

Customer Billing

SCM

Sales and Marketing

Analysis

1)Which product generated max Revenue in the year 2005 in Mumbai? (Time Year: 2005, Location: Mumbai, Revenue )

2) Which year showcased the highest no. of newly added customers? (Group by year in Time, max of count Customers based on DOJ)

Time Location Product Revenue

2005 Mumbai GPRS 100000

2005 Mumbai MMS 50000

Year No. of new Customers

2002 14000

2003 16000

Analysis

• Which promotions has been the most popular and can be used in near future?

• Which Location has minimum number of mobile connections?

• Comparative analysis of the performance of sales executives based on factors such as gender, age group, region.

Billing

Analysis

• Which customers are of the greatest value to the company?

• How many customers have delayed bill payments in a particular year?

• Maximum call usage (in minutes) is highest for which region in a particular state?

SCM

Analysis

• Which product has the highest demand with Retailers in Kharagpur location?

• Performance of Retailers by location or in a particular period or both.

Call Detail Records

Analysis

• Which area witnesses the maximum call traffic?

• What day of week witnesses maximum call traffic?

• On which day of the year were maximum SMS sent?

BI Reporting Tools

Major players:1. SAP - Business Objects2. SAS3. IBM- COGNOS4. MICROSOFT SQL SERVER5. Oracle- Hyperion

SAP Reporting and Analysis

• SAP Crystal Reports – Connect to virtually any data source, design and format interactive reports, and share them internally or externally.

• SAP BusinessObjects Analysis – Perform analysis of multi-dimensional data sets using the tool designed for financial and business analysts.

• SAP BusinessObjects Web Intelligence – Perform ad hoc queries and intuitive analysis across heterogeneous data sources online or offline.

• SAP BusinessObjects Predictive Workbench – Mine your information assets to predict future trends.

Conclusion

• The Telecommunications industry is extremely varied in its adoption of BI solutions.

• Quite a few companies are in the advanced stages of their BI initiatives; yet there are many that are oblivious of the benefits of BI.

• With the growth that the telecom sector is witnessing, it won’t be too long before small players also adopt BI as a critical part odd their systems.

Thank you!