Light Reading

Big-Data's Not So Big Without CEM

Sarah Thomas
10/11/2013
50%
50%

It's no surprise the big-data market is attracting new entrants, consolidation, and operator attention. It's largely because there's ample opportunity to make money, but any player would be remiss to focus only on that money-making part of the big-data equation.

Rather, big-data should be part of a larger customer experience management (CEM) program within the operator. It's hard to say whether this imperative falls to the operator, the big-data vendor, or, most likely, both. Most of the vendors I've spoken with note that their analytics tools can be used to help the operators do most any type of customer care, CEM or network-related upgrades, but it seems the operators are stuck on the how to make money from their analytics capabilities. (See: Big-Data Attracts Big Dollars, New Faces.)

Heavy Reading senior analyst Ari Banerjee tells us there is a lot of opportunity for new entrants in the big-data space that have a robust technology platform and can work with operators with innovative business models. But a focus that goes beyond data monetization to a broader CEM strategy is a must. According to Heavy Reading's projections, CEM-centric activities, as well as network intelligence and analytics, will play a much greater role in the big-data market.

This will result in the use of big-data analytics to improve the customer experience at a network, billing, and services layer. It also entails breaking down silos to get a much broader, more detailed view of a subscriber. A triple-play provider is better able to help a customer if it has visibility into all the services used by that customer, especially if all those services are consolidated onto one bill. That may present upsell opportunities, but that's secondary to the basic CEM considerations.

That may seem like an obvious move, but it's not yet a common approach. The disparate operations at major carriers work within their own silos, and the view they have of their customers relates only to the services provided by that particular division. This hurts the customer service experience but also represents a big CEM opportunity.

Part of the issue could be that the operators don't yet have the help they need to ingest, understand, and act on big-data. And they are not alone: According to McKinsey & Co. , the US could face "a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions."

But there is some evidence that operators are starting to look for help. Heavy Reading senior analyst Caroline Chappell has noticed there are numerous openings for PhD students who want to study data mining as part of their post-graduate studies.

Many operators such as Verizon Wireless , Sprint Corp. (NYSE: S), and Telefónica SA (NYSE: TEF) have created divisions to focus on utilizing big-data capabilities, but it could be that they don't have the expertise to make it part of a bigger strategy yet. (See: JDSU Urges Ops to Sell Their Location Data, AT&T Eyes Big Data Revenues, and Telefónica Battles Big Data Hype.)

Identifying new business opportunities (and potential cost savings) from big-data is a real opportunity, but it's not one that should be pursued in isolation. It's just one part of a larger CEM strategy -- and that's where the real opportunities lie.

— Sarah Reedy, Senior Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
10/15/2013 | 3:28:18 PM
Re: The NSA Paradigm
Very good point, ping. All the vendors are working on that, although they have different methods. It's a lot to take in and understand, especially working within silos. I'll be looking for more concrete examples of it done well, and I'm sure the operators will look for examples of it tied to revenue generation. That's the kind of data they'll care about.
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
10/15/2013 | 3:24:29 PM
The NSA Paradigm
Quite possibly nobody has more "big  data" than the National Security Agency, and in my humble opinion I don't think it's helping them all that much, relatively speaking, in going after the baddies. It seems to me that it makes little sense to suck up all the data for analysis--perhaps the challenge of big data will be in identifying data that truly is of value. I guess vendors that do that well will be the ones that succeed.
SarahReedy
100%
0%
SarahReedy,
User Rank: Blogger
10/11/2013 | 11:55:15 AM
Re: multi-vendor CEM
I like that quote, Liz! Makes sense. It's no small task when we're talking getting that granular. And, McKinsey isn't the only one predicting a shortage in big-data experts. I think that's why so many vendors are pitching products for analytics that are plug-in-play so that anyone can understand. But, I wonder if those go far enough?
TeleWRTRLiz
50%
50%
TeleWRTRLiz,
User Rank: Light Sabre
10/11/2013 | 10:39:03 AM
Re: multi-vendor CEM
We've got a number of Catalysts at Digital Disruption on this very topic--the two go hand in hand. Customer engagement/experience can't be improved until businesses start capturing, analyzing and understanding data over a period of time rather than just one interaction. One of my favorite quotes from our CEM guru here at the Forum is: "If you run your business with averages, you will run an average business."
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
10/11/2013 | 10:21:55 AM
multi-vendor CEM
It's becoming clear that operators are using multiple vendors for big-data analytics alone, not to mention their wider CEM strategies. For example, Zettics works with the big four operators, and Guavus has said Sprint is a customer, maybe even AT&T. I imagine the big four use their big vendor partners a la ALU, Ericsson, NSN, etc in the back office too. It'll be interesting to see how that shakes out and all fits together to create their larger CEM strategy.
More Blogs from Que Sera Sarah
There is progress being made as tech firms begin to make women a priority, but there's still a long road ahead to redress the gender balance.
Swiss giant Tag Heuer has teamed up with Google and Intel to take on Apple with a smartwatch of their own as the wearables category starts to heat up.
New commercials boast that AT&T has the 'strongest 4G LTE signal strength,' as the big four US carriers shake up their marketing messages and marketing execs.
Verizon reiterates plans to use small cells in markets where it didn't acquire AWS spectrum, while AT&T has reportedly scaled back plans to deploy 40,000 small cells this year.
More than 1,720 of you voted in our poll on MWC's biggest trends, letting us know that while SDN/NFV were originally expected to be the hottest topics, 5G dominated the show floor.
Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Huawei Video Resource Center
Huawei's Power Play With GrupoGiro

4|1|15   |   2:51   |   (0) comments


Daniel Heredia, CEO of Energiro, the power management services part of Spain's Grupo Giro, explains why his company has just struck a partnership with Huawei for uninterruptible power supply products and how he hopes it can take the partnership into other markets.
LRTV Huawei Video Resource Center
Huawei Intros Smart Device for eLTE

3|30|15   |   05:25   |   (0) comments


Huawei has developed a secure, location-aware multimedia smartphone for its eLTE trunked radio solution, says Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Win Video, Win All

3|30|15   |   06:44   |   (0) comments


Video is going to be the next main source of revenue for operators. Operators have big opportunities and advantages to monetize video services. Globally, Huawei has helped more than 70 operators achieve over 30 million video subscribers. Watch this video for more.
LRTV Custom TV
The Benefits of HyperScale Clouds for NFV

3|27|15   |   01:50   |   (0) comments


Hyperscale cloud has been developed by the Internet giants to support the creation and delivery of software-based services at blistering speeds, and at the lowest possible cost. The original ETSI NFV vision was to adopt hyperscale cloud architecture and practices. This vision has become somewhat obscured along the way, due to misunderstandings about the hyperscale ...
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (9) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
All Upcoming Live Events
Hot Topics
AT&T Woos SMBs With Small-Scale WiFi
Sarah Thomas, Editorial Operations Director, 3/26/2015
Just Don't Say IBM Is 'Relaunching' Networking Business
Mitch Wagner, West Coast Bureau Chief, Light Reading, 3/26/2015
TV Everywhere Nears Mainstream Adoption
Mari Silbey, Independent Technology Editor, 3/27/2015
Carriers Are Bright Spot in BlackBerry Q4
Sarah Thomas, Editorial Operations Director, 3/27/2015
Comcast Says TWC Deal Will Close Later
Mari Silbey, Independent Technology Editor, 3/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.