Ovum's Dire Warning for Telcos: Ignoring Big Data Risky

Ovum (News - Alert) recently released some new research describing at once the value of using big data and the problems inherent in ignoring it. The rewards were great, and the risks of failing to do so many, so along with the research Ovum had something of a warning for telecommunications firms: failing to use big data analytics to the fullest could be a very risky behavior.

Ovum's new research showed off several ways that telcos could turn a stockpile of customer data into a revenue-generating prospect, including addressing critical points like providing more and better services to current customers (via upselling and cross-selling practices) and retaining current customers (via promoting loyalty and both predicting churn and finding ways to stop it before it starts). But while Ovum could show plenty of reasons that big data was offering some terrific potential for the near-term future, one of the biggest issues surrounding its use was a structural issue that would require some significant retooling to get around.


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One of the biggest reasons that more telcos aren't using big data analytics, according to the study, is the nature of telco organizational structures, as well as the way said companies are organizing data. Ovum's study showed that the best way to execute a big data project involved flexible business structures, and policies that could move with changing conditions, as opposed to monolithic standards and siloed data structures separated by matters of internal politics and the like. Success with a big data project would require the kind of structures found in many over-the-top operators: flexible policies and widely connected data that allows a big data project to make the use of the most available data without having to cross artificially constructed borders.

Additionally, the research discovered that there will be a smaller but still pressing issue for telcos to address: the issue of data management and the necessary skills to correctly handle all that data. But this is an area that's likely to prove much simpler, especially as vendors take advantage of the comparatively short supply of and high demand for such data scientists. But with several other types of vendor available in this market—each with its own set of competencies—this particular issue should have much less impact than the internal structures preventing full access.

With a smoother, more agile system in place, and the necessary handlers in play, big data projects have access to the largest pools of data possible and thus the highest chance for the best results. The more big data can access, the better the potential results.

Ovum's head of telco operations practice, Clare McCarthy, provided a bit more commentary on the issue, saying: “The proliferation of smart devices and services has led to a considerable increase in the number of customer–telco interactions. This is happening through multiple channels, which is forcing telcos to sharpen their focus. As a result, mining a greater volume and variety of data, and doing so in realtime, is becoming a powerful competitive advantage for telcos.”

Taking advantage of big data is a process that's likely to require a lot of restructuring on the parts of telco firms, but once that restructuring is done and the widest field of possibility is made available, the chances of telco firms turning data into revenue are much greater. It's hard for any firm to ignore potential revenue sources these days, so getting into big data is a move that's likely to pay dividends for any company ready to take on the restructuring needed to get there.