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Top 10 risks in telecommunications 2012 - Insufficient information to turn demand into value - EY - Global

Top 10 risks in telecommunications 2012

Risk 4: Insufficient information to turn demand into value

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As operators undertake the shift from minutes to bytes and seek to justify continued investment in new infrastructure and services, information becomes increasingly vital.

To drive profitable customer propositions, companies need accurate, timely and comprehensive business intelligence and customer analytics, underpinned by the right operational support and billing systems.

Not having all these elements in place threatens operators' efforts to increase time-to-market and build customer-centricity. It can also undermine the potential returns on their ongoing investments.

This risk relates to the "inappropriate systems and processes" that ranked eighth on our list in 2010. However, the issue now is both more holistic and more pressing.

Added urgency

The requirement to ensure the right systems and processes are in place is being given added urgency by a widening gap between what operators know they need to do and what they are achieving.

Time-to-market — telco perceptions and performance5


% service providers that say time-to-market is very important to remaining competitive


Time-to-market — telco perceptions and performance

% service providers that can bring a product to market within 6 months


Time-to-market — telco perceptions and performance

They agree that time-to-market is increasingly important. Yet operators' time-to-market for new services has not improved in the last two years, and the percentage of operators that can bring products to market quickly has actually fallen since 2008.

As technology and product life cycles shorten, this represents a growing risk — especially since disruptive market entrants are repurposing customer data dynamically for new services. In contrast, operators are struggling to repurpose their information assets, due largely to patchworks of legacy systems that hold fragmented customer and network information, and a lack of real-time analytics to build a single view of the customer across multiple devices and territories.

Realizing the power and value of information

Operators are collecting more information about the customer than ever before. Those who overcome the barriers we've highlighted and leverage their information assets as successfully as the over-the-top providers stand to reap significant benefits.

Repurposing customer data in new ways can enable operators to improve their market positioning, through advantages such as better business intelligence — for example, anticipating market and customer changes before competitors — and reusing network data for collaborative partners and sector verticals.



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5Amdocs, "Amdocs survey: time to market grows in importance," 14 April 2011 (125 senior sector executives).

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