Connectivity providers overestimate the value of analytics for revenue growth and underestimate its value for optimizing operations, says Axiata Analytics Centre head Pedro Uria-Recio.
Beyond that, the upside from analytics might be quite a bit lower in the connectivity business than in other industries, according to an analysis by McKinsey consultants.
Value might be quite high in retail, travel or logistics. But value seems relatively low in the telecom industry, compared to most others.
That is not to say many “digital transformation” efforts in the connectivity business are pointless. But there also is a value for money aspect, as well as opportunity costs. How big will the return be, in measurable terms (revenue, profit)? And what else might have been done with the invested capital?
One potential example: experts have always told me there are hundreds of indicators a consumer account is about to churn. That might lead you to ask why firms do not do something with such indicators, before a customer leaves.
Perhaps the answer is that they cannot actually do very much. Maybe the customer leaves for some relatively-structural reason (poor coverage, low mobile data speeds), perceived value (some other cheaper alternative is acceptable), or there is some change in life state (family member dies) driving the account change.
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