Friday, 23 June 2017

Operators face 2-year data monetisation gap

AsiaInfo
Thursday 01 October 15

Research conducted by Analysys Mason for AsiaInfo – China’s largest telecoms IT software and services company – highlights the gap between mobile operators and Large Internet Players (LIP) in their capabilities to monetize their customer insights. The research covered 50 operator respondents drawn from across the world and focused on the challenges facing operators looking to successfully monetize customer data in a similar way to LIPs such as Google…

Research conducted by Analysys Mason for AsiaInfo – China’s largest telecoms IT software and services company – highlights the gap between mobile operators and Large Internet Players (LIP) in their capabilities to monetize their customer insights.

The research covered 50 operator respondents drawn from across the world and focused on the challenges facing operators looking to successfully monetize customer data in a similar way to LIPs such as Google, Amazon, Facebook and Apple (GAFA).

Although two-thirds of the operators surveyed placed high importance on personalized, contextual marketing based on customer insights, almost as many, 62 per cent, felt that they were currently at least two years behind the GAFA group. Among European operators, nearly 60 per cent also saw regulation as the main barrier to their ability to compete successfully.

Commenting of the results, Justin van der Lande, who led the research for Analysys Mason said: “This survey has laid bare the chasm that exists between the operators’ new business ambitions and their readiness to compete.

“Operators want to make the most of the abundant customer data they have, but in technical terms they still have a long way to go,” he added.

The operators’ responses were analysed to assess both their vision and their readiness to compete with the LIPs and the GAFA group in particular. Based on the analysis, operators were categorized into four distinct groups:

Transformers: those displaying both the vision and developing the IT tools required to create new business models based on their customer insights. Ten operators were placed clearly in this group.

Head-downers: those who have the tools but are focusing their capabilities on maximizing their existing business, rather than applying them to new business models. Six operators met this description.

Worriers: those with the vision but without the tools and data. Fifteen operators fell into this category.

Unbelievers: those lacking both the vision and the required tools. This was the largest group containing nineteen operators.

Perhaps surprisingly, the survey also revealed that fear of losing customer trust and loyalty is perceived as a relatively minor barrier for operators seeking to monetize their customer data, with lack of access to data and the technology to process it ranking as much higher concerns.

Dr Andy Tiller, VP Product Marketing for AsiaInfo, felt that score was influenced by the success that the LIPs have already had in the marketplace and by the fact that operators have already earned a position of trust with consumers and partner companies.

“Operators are currently very concerned by regulation, especially in Europe where they perceive an uneven playing field compared to the LIPs. Of course, customer privacy is also taken very seriously, but it’s within the operators’ control to use data sensibly in a way which provides value to their customers,” he said.

The results also showed that operators need to make changes to some of their established business processes if they are to generate more value from their customer insights.

“In many cases the data they need to access and analyse is siloed in different departments, and that makes it more difficult to share and use the information,” explained Dr Tiller.

“One thing is clear from the survey though,” he said. “There is widespread and growing recognition among operators worldwide that they are some way behind the GAFA group in their use of customer data, and that they are placing a higher priority on the need to improve that capability both for themselves and for their partners.”


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