Telecommunications Companies Require Culture Shift to Maximize Benefits of Big Data Analytics, says Pyramid Research

While big data analytics (BDA) is on every communications service provider’s (CSP) radar, investment levels are relatively minor for most organizations, with many barely scratching the surface, according to insight from Pyramid Research.

The company’s latest report* states that the return on investment from telco analytics is far behind that of online companies like Amazon, Google and Facebook. Among those CSPs with more mature implementations, however, the focus has evolved from how to use technology to extract and manage the data, to how to effectively apply Big Data and real-time analytics to enhance the user experience, optimize investments and add value to third-party partners.

Pyramid Research asserts that operators who are able to make BDA work for them will be at a significant advantage over their competitors in a market environment characterized by diminished variations between operators and the services they offer. Indeed, the extent to which BDA implementations are successful will be a significant factor in determining the market’s winners and losers.

Ozgur Aytar, Director of Research at Pyramid Research, explains: “Our industry survey demonstrates that one of the most challenging aspects of the telco BDA implementations is the need for a significant shift in the structure and culture of the organization.

“To maximize the BDA opportunity, telcos should put into place the correct leadership structure, break down barriers to data access and create a collaborative environment where people from different parts of the organization can work together for mutual benefit.  It is important to recognize that BDA is not primarily a technological investment but a major organizational restructuring.”

Telcos have taken a variety of approaches to the implementation of a BDA function. The study’s author, John Gilsenan, an Analyst at Pyramid Research, says: “Some have made it a centralized function, others a decentralized one, while some have set up a separate BDA business unit. While there is no single approach that will be right for all organizations, it is very important to appoint someone to be the leader of the BDA deployment. This could be a chief data officer, but doesn’t have to be.

“It is essential that this person reports into the highest levels of the organization and that he or she gets the buy-in of data owners across the organization’s silos and the budgetary authority to make the necessary investment for a successful BDA implementation, including hiring the right staff.”