Managing subscriber data is part of CSPs’ DNA, they just need to apply it to mobile data so that they can effectively monetise its potential. Here, Louis Brun, chief operating officer and founder of Neuralitic, a provider of big data and mobile data intelligence solutions that was established in 2007, explains how mobile data intelligence enables new revenues and improves marketing and segmentation.
VanillaPlus: Neuralitic is a relatively new company; please tell us why you established the company and how the company has developed?
Louis Brun: I’ve been working in the mobile data market for 15 years so I can see how data evolves. In 2006, when the technologies were preparing for data and 3G, it became clear to me that operators didn’t know what data would be all about. They’re good at bundling minutes and messages but the complexity of data wasn’t something they understood. I then recognised an unmet need for a solution intended for understanding what customers could do with the mobile data that was available to them.
Previously, solutions for CSPs had always been built for the network and were technologically oriented. Today, however, if CSPs want to compete and not be pushed into the corner by the internet giants that have built their businesses around data analytics, they need to start with mobile data intelligence to understand the trends and behaviours of their users. That is why we built a uniquely engineered solution that could understand 100% of what customers are doing with mobile data, with 100% visibility
VP: Can you explain more about what you mean by mobile data intelligence?
LB: Mobile data intelligence is basically business intelligence focused on the mobile data side of the CSP business. It allows mobile operators to understand how customers use the various mobile services that are available to them. Browsing, the consumption of applications(apps) from iPhone, Android and other operating systems, in addition to data services such as instant messaging or peer-to-peer communications, also need to be taken into account.
The mobile data market is growing very fast and requires a tight integration between acquiring the information and understanding it. This is further supported by the storage of this information at different granular levels over a long period of time.
VP: How would you summarise the challenges facing CSPs?
LB: Mobile data is quite a challenge for CSPs. We’ve been working with them for more than five years and we’ve seen firsthand how it presents a whole new set of data that they’re not used to dealing with. It’s clearly an unfamiliar environment and it’s no help that data traffic is constantly evolving. Subscribers use apps, which are launched on a daily basis, and mobile operators need to be increasingly proactive with regard to this trend. This is an operational challenge for CSPs rather than a technical one; they have a lot of experience in managing structured data but unstructured data is where the bigger challenge lies. It’s for this reason that solution providers need to stay close to their customers to make sure they have the tools and knowledge to make optimal use of the data they generate for subsequent enrichment.
VP: There is a lot of talk about big data and how CSPs can transform themselves by monetising that information. What is the impact of big data on you and your customers?
LB: Big data for us is more than simply storing massive amounts of information. CSPs need to take the example of over-the-top (OTT) players when it comes to making use of analytics and require the resources to analyse the massive volume and variety of data. CSPs that tackle big data have the upper hand in being proactive with regard to the trends that they notice, not only for their own benefit, but for their customers’. This hands-on approach is far more valuable in today’s constantly evolving mobile world, in comparison to storing the data and analysing it at a later point.
Big data in telecoms is really about improving the marketing mix, creating efficiencies and segmentation, but also using it to create new revenue sources. Ultimately, this is the biggest challenge, and we are working hard to help operators monetise their data. We think they have a very large role to play in mobile advertising and marketing and, if they want to take full advantage of this opportunity, they need to refine their handling and management of big data.
VP: What do you think makes a solution provider stand out in the big data analytics domain?
LB: Firstly, as a solution provider, we have built a product around deep mobile expertise so we’re not coming from an IT background. Making sense of the massive volumes of data that have been extracted is the big challenge, and one that business intelligence solution providers underestimate in telecoms. The expertise that Neuralitic brings to its customers is that we have productised what is normally a lengthy and complex systems integration project. Ease of use is the key consideration for CSPs because mobile data is about the business side of the CSP organisation, not the network side and marketing needs to have access to the right tools to understand and present this data. It must be put in usable formats at the centre of the business, in an evolutionary and flexible framework that can cope with the fast-changing environment of mobile data.
VP: How does your solution help your customers generate ROI?
LB: We help our customers in two areas. First, we help them improve insight into current revenue models so that they can identify how to improve their marketing mix; determining their product, pricing, distribution and promotional strategies, which enables them to serve their customers more effectively. We also help them improve the efficiency of their marketing campaigns using micro-segmentation to better target customers.
Another area in which we help customers generate ROI is by creating new sources of revenue. In the next 12 to 24 months, thegreatest challenge for CSPs will be in their willingness to introduce new business approaches that will rival internet players. Monetising the subscriber data they hold is something they’ll have to do. We believe CSPs will become the first players to make use of subscriber information. For example, Neuralitic has developed a solution that enables CSPs to make use of the intelligence they hold to play a key role in the advertising market and create a very significant source of revenue from that. Ultimately, this will lead to the transformation of their revenue model. There is a lot of attention being given to this area, as we have seen at this year’s Mobile World Congress and CTIA events. CSPs now see it as a space that they don’t have to surrender to internet giants.
VP: What trends are you seeing in the market and are there any regional differences?
LB: From a CSP perspective, we see emerging markets as being very open and proactive towards solutions like ours. One of the big differences between the North American and European markets and emerging markets is that emerging market users don’t generally have access to the internet from home, so operators know the importance of having the appropriate infrastructure that enables their users to have mobile data access, regardless of location. It’s key to their growth so there is a lot more interest and opportunity in monetising subscriber data in those markets especially in the areas of mobile advertising and mobile commerce.
VP: The market for big data and analytics is served by a combination of wellestablished vendors and a series of smaller, niche players. How do you see this situation evolving over the next few years?
LB: The good news for the smaller players is that the large, established vendors are the ones spreading the message about the importance of big data and analytics, giving the niche players the opportunity to address CSPs’ needs. Neuralitic has a proven solution deployed in North America, Asia and Europe and in the coming years, we predict that there will be great relationships and partnerships built between the bigger vendors and specialists like us. The big players will take charge in carrying the message forward, while the small players will be the ultimate solution providers.
The challenge today is that there is a lot of talk about big data and mobile data intelligence. A lot of businesses are positioning themselves to gather and store big data and generate reports, but having a system to achieve that and support it for tens of millions of subscribers is very complex. We have achieved that at Neuralitic, but it took us five years to get here. Managing subscriber data is part of CSPs’ DNA, they just need to apply it to mobile data so that they can effectively monetise its potential. Proven solution providers like Neuralitic will enable them to do that.
