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Reader Forum: Making 2014 the year operators optimize network data

Editor’s Note: Welcome to our weekly Reader Forum section. In an attempt to broaden our interaction with our readers we have created this forum for those with something meaningful to say to the wireless industry. We want to keep this as open as possible, but we maintain some editorial control to keep it free of commercials or attacks. Please send along submissions for this section to our editors at: [email protected].

In many respects, 2013 was the year big data truly came of age. The term itself evolved from industry jargon and into the vernacular of the American consumer, as corporations and government agencies alike cautiously race to better communicate about the extent of their big data collection, opportunities around analytics and the need to get closer to their consumers.

According to SAP’s fourth annual GSMA Mobile World Congress survey of mobile network operators, fixed telecommunication providers, over-the-top players and other global mobile industry executives, both real-time offers (36%) and better customer segmentation (27%) are expected to drive the most value from big data in 2014.

For mobile operators, the shift in focus toward big data over the last 12 months makes 2014 a critical year for shaping and executing on strategies and practices to improve the consumer experience. This year will prove to be instrumental in determining how MNOs can effectively mine their treasure troves of untapped data to gain unforeseen consumer insight, while maintaining the highest levels of privacy and security. If executed successfully, this evolution poses tremendous benefits for consumers, enterprise brands and operators alike.

Tapping into the empirical value locked in operator networks

The recent emergence of powerful in-memory analytics solutions is prompting MNOs to rethink how they can monetize the massive amounts of data they collect on daily basis. For marketers, this empirical source of untapped data residing in operator networks presents a tremendous opportunity to get closer to consumers. At the same time, it helps MNOs address the threat from the growing number of OTT players, as revenues from voice and messaging continue to erode.

With almost two-thirds (62.5%) of Americans now owning a smartphone, there is no better medium for understanding people’s online interests and behavior than mobile. For enterprises and brands, having anonymized, demographic insight into a group’s mobile Web activity is turning into the “holy grail” for consumer research. This will result in much more targeted, customized and relevant marketing offers for consumers. According to a 2013 study conducted by SAP on next generation mobile commerce services, 32% of consumers would be more likely to increase their use of mobile commerce services if they were further incentivized by brands and services.

Safeguarding consumer privacy

The key challenges that are preventing operators and enterprises from fully unlocking the potential of big data are security and privacy concerns (38%) and lack of big data expertise (28%), according to the SAP Mobile World Congress survey. As connected consumers are more willing to share personal information, companies must be extra sensitive to how that information is being used.

To ensure consumer privacy laws are met on a global scale, operators can now safeguard consumer information by only analyzing data on groups of people versus individuals. For example, with anonymized data at a demographic-level, operators only release as much information as the first two-to-three digits of a mobile user’s zip code and corresponding demographic information (e.g., age and gender). There is no personally identifiable information (e.g., telephone number, name, address, social security number, credit card or financial information) analyzed or shared.

While this may seem vague on the surface, this unique approach allows marketers to extract and analyze massive data sets to provide invaluable insight into consumer behavior and industry trends. This allows for marketers to make smarter decisions and adjustments to marketing campaigns in targeted areas. In order for this to be successful, the technology ecosystem needs to connect operators, marketers and brands in a seamless fashion.

The evolving role of operators

For years, brands and market research and media companies have worked with traditional methods of monitoring and measuring the changing behavior in consumers brought about by the proliferation of smart, connected devices. These include surveys, polling or purchasing research that captures and analyzes consumer data and market trends. However, mobile operators have a remarkable source of consumer insight and market intelligence within their own networks.

We know that consumers are willing to engage with networks and brands, as long as the benefits are made clear and there is full transparency in the relationship. With the privacy safeguards in place, the ability for MNOs to turn big data into timely, personalized solutions for consumers is one of the industry’s greatest assets to tap in 2014.

Sethu M is president, SAP Mobile Services.

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