Holistic Revenue Management
Author: Stephen (Kai) Sui CEO
Date: 6th January 2017
Categories: Technology, Data, Telecoms, Revenue Assurance, Fraud protection, Optimus, Neural Technologies, Revenue Management, ARPU
Mobile network operators have never felt pressure like they do today. Alongside a constant pressure on maintaining or increasing ARPU against the backdrop of a saturated subscribers base, combined with subscribers’ hunger for bandwidth, they are caught in between the mobile business. From the top comes third-party OTT and the rise of the open platform. While from below, comes the ongoing commoditisation and complexity of network infrastructure and other challenges such as fraud, outages and revenue leakages.
The above diagram illustrates the challenges presented in the 4 corners.
Telecom providers or Enterprises do not often find out about calamities such as service outage, revenue leakages (that can cause customers to switch providers), or opportunities that point to a service upgrade or upsell opportunity until it is too late. Normally a negative event is not reported unless the customer brings it up, or the company finds out much later. The inability to react or the lack of insight of such events can translate into loss of revenue or worse: lose the customer forever.
The solution to this is a holistic revenue management system that can detect Fraud and provide revenue enhancement opportunities combined with a service agility which reacts to the customers’ needs and external changes promptly. This near real-time integration and analysis of multiple data sources and predictive statistical models can help telecom providers - not only in prevention of revenue loss but also the potential increase of ARPU.
The above model leverages data acquisition, integration, analytics, and business rule based, near real-time event processing to reduce risk and boost 'per subscriber revenue'. In summary, it does the following:
- Ingest (Data Acquisition) – Collect data from various sources and systems and convert it from proprietary to readable and actionable formats in near real-time.
- Interpret (Data Integration) - The data is then integrated with additional information such as customer data from: billing, CRM and other OSS/BSS systems. This is all then correlated with knowledge-based predictive models based on historical data.
- Act (Complex Event Processing) - Using pattern analysis, thresholds and business rules, Fraud and revenue enhancement opportunities are detected and an optimal response (Actions) is formulated and transmitted to parties concerned in near real time.
- Present (Provide Insight to Data) - All key/trends risk prevention and revenue enhancement opportunities are shown in an easy-to-understand and manage format.
The competition for customers among telecom providers whilst simultaneously needing to maintain APRU with a decreasing margin is not about to diminish. While Fraud and Revenue Assurance will continue to be key, the ability to hold on to and maximize the value of subscribers through upsell activities and customer satisfaction is just as important. The Holistic Revenue Management System described above enables telecom providers to solve the issues of real-time data analysis and improve service agility. It offers the means to respond rapidly and appropriately from a customer-by-customer basis to network wide events such as system dimensioning and/or outages. Holistic Revenue management is not just about Fraud/Revenue leakages detection and prevention. It is also about enhancing the profitability through other aspects of the customer life cycle such as service activation, collection/dunning and campaign.