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Case study: Business Intelligence in the

success of AIS
Arpattra Sringkarrinkul
Executive Vice President -Solutions

1
Agenda

 AIS overview
 Objectives of BI adoption in AIS
 AIS BI solution
 Information Utilization
 BI Lessons Learned

2
Introduction
AIS Company Profile
 First and Largest mobile network provider in
Thailand
 Established since 1986
 22.6 Million subscriber (prepaid 89%, postpaid 11%)
50% market share
 Revenue $ 2.7bn, Market Cap $ 6.7 bn
 8,000 Employees, with Call Center of 2,000 staff
(amongst the largest)
 AIS Shops of 36 locations, and Telewiz Shops
(authorized dealers) of 600+ , Dealers 2000+
locations nationwide
 Company Vision
“Dynamic Leader in delivering integrated communication solutions
from wire and wireless network”
3
Introduction

Thai Telecom Market Overview


 Thai has 514,000 sq km, Roughly the size of Germany
 Population 64 million, Y06 mobile penetration 64% (40M)
 Four GSM operators, one CDMA
Subscriber market share
 90% Prepaid-dominant market
Others
2%
 Postpaid is not contractual
17%

 No handset subsidy from top two


players 50%

 Interconnection regime announced in 31%

May 06
 Expect 3G license in Yr 2008

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Products
Products Services
Services Privilege
Privilege

Postpaid :
for business & professional Value added service
Mass

Prepaid :
for teen & city person
Enterprise
High value
Prepaid :
for upcountry

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AIS Products

Stay ahead of your Communicate freely A new choice to Delivering great


peers with the the way you want make call contents to our
advanced AIS GSM and live a free life inexpensively customers!
communication the way you wish
system

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Objectives of BI adoption in AIS

• Support Strategic management and market situation


analysis
• To implement Information centric for Enterprise, which
provide Information that fit for use and help in managing
and operating at the speed of business.
• To increase AIS’ ability to make decisions based on a
complete picture of its business and customers
• To have monitoring tool in business performance

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Adoption level of BI in AIS

Event
based

Projection

Pattern
Diagnosis
Statistical
Analysis
Automate
Historical campaign
trend

1995 2003-2004 2005 2007+


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Information Structure
Level Scope User Objective Example Report

Executive • Corporate KPI • G-CHM, SHIN-PM Office • Corporate health & Executive Performance
• Executive Focus • CHM-WL wealth Report
• CEO • Group Investment
• PRD Decision

Corporate • KPI report (Corporate & • CHM, CEO • Report health & wealth • Ex-COM Summary
Department) • PRD of company Report
• Key Project Performance • CCO • KPI achievement report • EX-COM Report
report • EVP, CFO • Investment Decision • Cross Operation
• Activity aligning to Report
corporate vision/direction
i.e., non-voice, region
• Key Business Indicators
i.e., no. of subscribers, no.
of minutes

Management • Summary of Operational • Department Head / BU Departmental Monitoring • Revenue Summary


Reports, less frequent but Head & Decision Making Report
higher level of control • Analysts
• Budget Control

Operational • Detailed report • Section Head • Day-to-day Operation • Churn Daily Report
• Most frequently used with • Operational Staffs • Operational
lowest level of control monitoring report e.g.
Subscription report,
profile changing, etc.

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AIS BI Solution

10
Situations
Situations Needs
-More
-Moredemands
demandsand
andcomplex
complex
Improved
Improvedperformance
Business requirements
Business requirements BIBIisis performance
slow and
and scalability,which
scalability, whichisis
slowto
toresponse
response
-Need more
moreresponsive
responsiveto to
-Needto
todrill
drilldown
downtotodetails
details business
which
which lead to very largeof
lead to very large ofdata
data businessneeds
needs
volume
volume

Changing
ChangingininOperational
Operationalsystem
system An
Anindustry
industrylogical
logicaldata
data
data model that is optimized
data structure (C-Care andPlug-
structure (C-Care and Plug- model that is optimized

in) require revision of the for
forbusiness
businessintelligence
intelligence
 require revision of the
in)
current reporting, campaigning
currentBI
BIdesign
design reporting, campaigning
and
andanalytics
analytics

Separate
Separatedata
databy
byfunctions
functions -- Centralized
cause Centralizedto
toprovide
provide
causemore
moredata
datareplication,
replication, single
singleview
viewof
oftruth
truth
inconsistency,
inconsistency,fragmentation
fragmentation
and -- Implement
Implementbusiness
business
andineffective
ineffectiveprocess
processforfor meta data
cross-functional
cross-functional meta data
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Solution

Implement the information system, which was designed to


o Provide analysis data that will allow for asking any
questions answering to business in term of analysis
trend, customer behavior pattern and reporting.
o Provide new insight of business with integrated and
historical of data.
o More responsive to business with timely manner

“Enterprise Business Intelligent System


(EBIZ)”

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eBIZ Architecture

ENTERPRISE DATA End User


Source Systems

Summary Data Publishing Process


WAREHOUSE Applications

Extract Transform Load (ETL)


Postpaid
Payment
Oracle
Siebel Billing Discoverer
Report
CS&R MD
SAS Data
Mining
Settlement
ASC
Microstrategy
Teradata 8 node CPU
Reports
16*3.08 GHz, 16 TB
Dealer SAP
Comp. Trading Prepaid
Ad-hoc queries
Process

IN Affinium
Campaign

Balanced
Score Card
Oracle CPU 60*336
MGHz, with 8 TB disk

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Campaign Management System
Implementation at AIS
Start in Mar2004, close loop •Nov 2004, Affinium campaign and
marketing project was initiate to manual scripting were parallel used
evaluate Campaign Management to process new campaign
solution to improve campaign requirement. routine campaign were
planning, targeting, execution and migrated to Affinium campaign.
response.
•Apr 2005, Affinium
•End of Apr 2004, AIS campaign was officially
chose Affinium suite roll out to all marketing
(Unica) as campaign mgt users.
solution. Implementation
phase was divide into 3 • Jul 2005, more than
releases 95% of campaign were
•May 2004, done in Affinium
Implementation phase including new and
started routine campaign

Evaluation Implementation Stabilization Operation

Mar May Nov Apr Jul


2004 2004 2004 2005 2005

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Approach & Phasing

Business
Phase 1 Phase 2 Phase 3 Roadmap
Analysis

• More responsive to • Defined business • Automated • Stabilize Close • Channel Analysis


business with timely capabilities that process to Loop Mkting
manner support business integrated CRM process • Implement
objectives operational and Business
• Data distribution analytical (Close • Permission Base Analyst
across functions • Ranking Priority loop marketing) Campaign Networking
with single view and readiness of
business • Define BI • Metadata • More Near Real
• Infrastructure to capabilities discipline through Enhancement Time Data Feed
support close loop BIU setting up
marketing • Defined Metadata • Speed up Data • Event Base
Mining Marketing
• Select vendor & • Defined scope & Preparation
solution for new BI phasing process • Exploitation for
ROI Analysis
• Implement New • Ad-hoc Query Application
EDW and BI tool

Feb-Apr 2003 May 03-Mar 2004 Apr-Dec 2004 Jan 05-Dec 2006 Jan 07- Dec 08

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Business Intelligent Unit (BIU)

Objective
• Central pool of skilled resources which can be
shared by all business units
• The BIU acts as a champion driving the EDW,
roadmap, initiatives & building awareness in the
organization
• The BIU is full-time business team dedicated to
the data warehouse, and develops full
knowledge and expertise in the data, analysis
techniques and models
• The BIU helps the business units (Power Users
and Analysts) to achieve a high degree of
independence in using the data warehouse.

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AIS BIU roles & responsibilities

• Business sponsor that support EDW roadmap, strategy and


discipline
• Enables a “single view” of information to be achieved through
using common definitions & reporting through the
organisation, instead of individual departments developing
their own definitions  monitoring on EDW meta data
• Screen and verify request of data analysis from business unit
• Consider and approve authorization access to EDW
• Periodically, monitor and ensure that existing analysis reports
are still valid for business use.
• Find new analysis aspect for corporate performance

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Information Utilization

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Utilizing the information
Services Analysis Customer Analysis

• Collection Performance • Up-sell/Cross-Sell


• Call Center Performance • Campaign Management
• Channel Analysis (stock • Churn Analysis
mgt, service performance, • Segmentation (value based,
satisfaction & complaints) Need based)
• Marketing Activities response
• Regional penetration

Revenue & Usage Corporate


Analysis Performance
• Revenue by product Management
cockpit
• Usage Behavior (on Executive
Corp. BSC
net, off net, prepaid,
post paid, VAS, IR) Line of Management
business
• Promotion KPI
• Non-voice service Operation
OLA, SLA
revenue

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Info Utilization – Revenue & Usage

Market Situation:
• Price Competition
• Saturated market (Bangkok, Urban and dense area)

Adoption of BI:
• Able to design tariff and promotion package based on usage pattern
• Better offering suitable package
• Customization for corporate solution
• VAS Cross-Selling recommendation system for Touch point
• Forecast real usage of competitor

Result:
• Maintain our position during the competition
• Strong VAS growth - highest in the industry
(2004: 9.3% to 2006: 15% of total revenue (versus 2nd competitor: 7%)

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Up-Sell / Cross-Sell with Full Integration
Seamless Integration Across Touch Points
Operational CRM
OSS and BSS
Systems
Web &
Email

Call
Center
Single
Field
View of Sales
Customer
Partner

Target List
Campaign
Data Management DM E-mail
Warehouse
DSS: Customer
Data Mining / SMS IVR
Predictive Tool MMS

Analytical
Collaborative
CRM
21 CRM
Info Utilization – Customer Management
Market Situation:
• Multiple SIM users play significant impact to the entire market picture
• Expensive pricing compare to competitors (customer perception)
VIP & CEO
Platinum
Gold
Adoption of BI: Classic
• Segmentation in various aspect: value contribution, overall usage
pattern, VAS usage pattern
• Analyze on payment behavior, create collection segmentation, credit
scoring
• Predictive model for churn
• Analyze customer satisfaction from calling to contact center

Result:
• Better understand customer and able to offer suitable campaign and promotion
• Lead time for campaign operation reduce by 50%
• Design process for touch point and collection staff to handle non-payment customer
efficiently
• Design services and privilege based on customer segment
• Seamless integration of information across touch point
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Info Utilization – Channel Management
Market Situation:
• Untapped market in upcountry
• Expansion of competitor in telecom and non-telecom channel

Adoption of BI:
• Analyze and manage inventory at dealer level
• Integrate data of sales, service performance, cost, profit which enable to
analyze in overall picture of dealer performance
• Analyze sales behavior align with rules and policy
• Analyze Call to channel contact center

Result:
• Replace manual work in report preparation which reduce time ~60%
• Provide AIS regional on dealer inventory trend analysis which give clear
picture on inventory aging, sales against quota, sales behavior, etc.
• Rebate & compensation match with sales, service performance, cost

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Info Utilization- Corporate Planning Process
Information is utilized at all steps in corporate planning process.

- Key corporate drivers


- Historical performance
- Organization
- Human capital - Performance

Planning
Internal External Performance
and
Review Review Monitoring
Budgeting

-Global trend
-Economic indicators
-Population income distribution
-Technology trend

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Utilizing Strategic Information
Corporate-wide tools are used for monitoring.

• Balanced Scorecard > Strategy Management


– Align action to strategy.
– Communicate strategy.
– Monitor deviation from strategy.
• Management Cockpit > Performance Management
– Monitor result in various aspects at once.
– Refer to historical result.
– Compare result with industry and competitors.

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Information in Action
Information analysis leads to adaptation to reality.

FEEDBACK

External Analysis

Internal Analysis
Action Plan
Balanced Scorecard Analysis Adjustment

RESULT

Management Team Intelligence Team

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Lessons Learned

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Key Learning for Success of BI

 Strong Support from Top Executives and Users


 Strong commitment from all Partners
 Dynamics business require rapid analysis
 The analysis must be part of Products/Service
development
 Data Warehouse system is the mission critical
not the support system
 Data Modeling is the key for best analysis
performance

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Point for Consideration

 Business drive; always start with business


questions
 Align Goal and strategy of each level
 Common understanding business definition:
‘Single version of Truth’
 Connect strategy to execution is important
 Focus on the few things that really drive business
value instead of many things that generate activity
but don't contribute to the organization's long-term
health
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Point for consideration – Application Aspect

 Data Governance Policy


 Information accessibility should be controlled
according to confidentiality level
 Lagging and leading information should be
balanced
Lagging information depicts achievement
Leading information predicts future potential
 Information is used as guideline, final call comes
from knowledge and experience
 Need Flexibility: it is dynamic
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