The Future of Telecom
The future of the world is going to be defined by Artificial Intelligence in the coming years. Artificial Intelligence is the ability of computers to mimic human intelligence. AI has several applications and it has been gaining popularity since the last few years. One field of AI that has attracted recent attention is predictive analytics. Predictive Analytics using AI is a branch of advanced analytics that uses historical statistics, data mining, modelling and machine learning to evaluate data in hand in order to make future predictions – how events will turn out in the near future.
This technology is being used by telecommunications companies to streamline their operations. They are using predictive analytics to monitor their state of equipment, analyze current and past trends to predict future behavior and fix hardware related issues in a more quick and faster manner. Companies are trying to come up with their own models that incorporate more and more AI in their business systems so that they can predict future problems and try to minimize the damage by taking precautions beforehand.
Telecom industries all over the world lose millions of dollars every year because of churn. Churn, in simple terms, can be described as loss of customers to other companies due to a plethora of reasons. Customers might choose to shift to another company if they didn’t like a particular service, if they get a better offer or simply because they wanted to try something new. Predictive Analytics can help predict such behavior reducing churn costs. It can help to identify customers who are dissatisfied or have had a recent increase in the number of complaints. This data can be used by the company to target these customers, find the root of their problem and solve it before they choose to shift somewhere else.
One such company that has successfully used predictive analytics and implemented it in its business model is Oracle, the second largest software company in the world. The company has successfully devised and uses predictive data mining software – Leadspace and IKO System. They help the company by finding creative B2B sales and marketing solutions by effective data mining of customer data. Similarly, every other company in the telecommunications industry is. Trying their best to acquire or develop a predictive analytics software to get the competitive edge in this extremely competitive industry.
Written by Madhav Gupta & Edited by Alexander Fleiss