IBM Software Group

Case Study for Telecommunications

TDW Reference Implementation
David Cope
EDW Architect Asia Pacific

2007 IBM Corporation

IBM Software Group

Data Warehouse Vision

to enable Customer Relationship Management

(CRM) across the client organization and reduce
operating costs. The Solution becomes an integral
component to the formation of the customer knowledge
database to support CRM front office applications and
business intelligence functions. The ultimate goal is to
form a closed loop integrated environment between
operational and analytical CRM to facilitate customer
relationship management..

IBM Software Group

Project Structure

Project Sponsor:

Chief Operating Officer

Key User Community:

Customer Base Analytics Group

Project covers the following divisions:

Sales & Marketing

International & Wholesale

Finance

Product Development

Information Technology

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Why TDW and IBM?

Several vendors and associated products were evaluated

Teradata, Microsoft, Oracle and IBM

TDW offered the highest degree of flexibility and scalability

Complete solution with capability to expand with business

TDW provided a strong fit to the organization, with over 90% of the business
and data requirements being met out-of-the-box

Open technology approach looking for an open scalable solution rather than a
proprietary architecture / technology

IBM services had a proven ability in data warehouse implementation, and it was
believed that the success of the project lay heavily on a robust and sound
industry model, together with the delivery teams proven ability to implement

IBM Software Group

TDWM embraces different views of the business to

support various analysis requirements
Example how a single user view can be interpreted in TDWM:

Churned
Customer

Involved Party-1;
Account-1; Customer

Involved Party-1;
Account-2; Customer

Churn
Win-Back
Service Instance-1;
Product-1; Plan-1

Acquisition
Migrate Price
Plan-1 to Price
Plan-2

Service Instance-2;
Product-2; Plan-1
Cross-sell Product-2
Service Instance-2;
Product-2; Plan-2
Prospect
Customer

Time
t0

t1

t2

t3

t4

IBM Software Group

Project Objectives and Phasing

Project Objectives

Implement a Data Warehouse Infrastructure to deliver business intelligence

capabilities and Closed Loop CRM Capabilities

Establish a customer knowledge environment, addressing the existing

business & technical issues through an integrated and reliable platform
(Cost, Security, Integrity, Access, Tools, etc.)

A fully secured environment that safeguards assets.

Implementation Phasing

Phase 1 Integrated Data Warehouse Infrastructure

Phase 2 Business Intelligence Applications

Phase 2A Campaign Management Solution

Phase 2B Data Mining Solution

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Implementation Phases
Phase 2

Phase 1

Deployed a new Campaign

Management System and integrated
Data Mining environment with the
Data Warehouse Infrastructure to
support their campaign operations
and analytics.

Established the core Data

Warehouse using the Telecom
Data Warehouse Model (TDWM)
to immediately support flexible, ad
hoc query analytical capabilities
within the environment.
Com plai nts Analys is Dim ensio ns

Com plai nts Analys is Dim ensio ns

Pr oduc t

BST: m1 Scope

Com plai nts Analys is Dim ensio ns

Logical

TDWM

Pr oduc t

Chan
geitSer
vice
Busin ess
Un
Ge o
gr aphy
Nor th
Pr oduc t Access Ser vice
West
Fina ncial En gi neer in g
East
Tr adi ng Ser vices
Sout h
Supp or t Ser vices
Busin ess Un it Ge o gr aphy
Nor th
Line o f Busi ness
West
Tr ust
East
Retail
Sout h
Com m er cial
Busin ess Un it Ge o gr aphy
Nor th
Whol esale
West
Gr ou p Ser vices
Line o f Busi ness
East
Tr ust
Sout h
Retail
Cust om er Mar ket Se gmCom
en t m er cial
Whol esale
Line o f Busi ness
Tr ust
Gr ou p Ser vices
Retail
Com m er cial
Cust om er Mar ket Se gm
en tesale
Whol
Gr ou p Ser vices
Meas ur es
Num ber o f C om plai nts
Pr oduc t

BSTs

AverLar
agege
Res
po nse
C om
m er tim
ciale
Sm all/m edium Com m er cial
High Net W or t h In divi dua ls
Indivi d uals
Num ber o f C om plai nts
ities
Aver age Res po nseChar
tim e

Cust om er Mar ket Se gm en t

Meas ur es

Meas ur es

Num ber o f C om plai nts

Aver age Res po nse tim e

Physical

BST: Reports and Graphs

Provisioning,
billing and
OSS/BSS apps.

Data Warehouse Database

Campaign
Management and
Data Mining Apps

BST: Reports and Graphs

Static & Adhoc Reporting

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IBM Software Group

Business Requirement Analysis

Adopting the Telecommunications Data Warehouse Business Solution
Templates (BST) to guide the investigation and scope the requirements
Sales
Sales and
and Marketing
Marketing
Campaign
CampaignAnalysis
Analysis
Cross
CrossSell
Sell Analysis
Analysis
Customer
CustomerAcquisition
AcquisitionAnalysis
Analysis
Data
Package
Sales
Analysis
Data Package Sales Analysis
Number
NumberPortability
PortabilityAnalysis
Analysis
Retail
Transaction
Analysis
Retail Transaction Analysis
Sales
SalesChannel
Channel Analysis
Analysis

Churn
Churn Management
Management

Operations
Operations and
and Finance
Finance

Contract
ContractRenewal
Renewal Analysis
Analysis
Customer
Churn
Analysis
Customer Churn Analysis
NLD/IDD
NLD/IDDDefection
DefectionAnalysis
Analysis

Customer
CustomerBilling
BillingAnalysis
Analysis
Financial
Management
Financial ManagementAnalysis
Analysis
Income
IncomeAnalysis
Analysis

Product
Product Lifecycle
Lifecycle
Management
Management
Product
ProductProfitability
ProfitabilityAnalysis
Analysis
Postpaid
PostpaidRevenue
RevenueAnalysis
Analysis
Prepaid
PrepaidRevenue
RevenueAnalysis
Analysis

Usage
Usage Profiling
Profiling
Content
ContentUsage
UsageAnalysis
Analysis
E-Commerce
E-CommerceAnalysis
Analysis
Inbound
InboundRoamer
RoamerUsage
UsageAnalysis
Analysis
Outbound
OutboundRoaming
RoamingAnalysis
Analysis
Pre-rated
Pre-ratedCDR
CDRAnalysis
Analysis
SMS/MMS
Usage
SMS/MMS UsageAnalysis
Analysis
Wireless
WirelessData
DataUsage
UsageAnalysis
Analysis
Wireless
Voice
Usage
Wireless Voice UsageAnalysis
Analysis
Wireline
WirelineData
DataUsage
UsageAnalysis
Analysis
Wireline
WirelineVoice
VoiceUsage
UsageAnalysis
Analysis

CRM
CRM && Segmentation
Segmentation
Commercial
Commercial Customer
CustomerFinancial
Financial Analysis
Analysis
Customer
CustomerArrangement
ArrangementAnalysis
Analysis
Customer
CustomerLifetime
LifetimeValue
ValueAnalysis
Analysis
Customer
CustomerProfitability
ProfitabilityAnalysis
Analysis
Individual
Individual Customer
CustomerFinancial
Financial Analysis
Analysis
Customer
Complaints
Analysis
Customer Complaints Analysis
Wallet
WalletShare
ShareAnalysis
Analysis

Service
Service Quality
QualityManagement
Management
CSR
CSRPerformance
PerformanceAnalysis
Analysis
Service
ServiceOrder
OrderProcessing
ProcessingAnalysis
Analysis

Credit
Credit Risk
Risk Management
Management
Credit
Creditand
andCollections
CollectionsAnalysis
Analysis
Customer
Delinquency
Customer DelinquencyAnalysis
Analysis
Individual
Credit
Risk
Profile
Individual Credit Risk Profile

IBM Software Group

Solution Outline - Requirement Definition Approach

BSTs
JAD
Sessions to
customise
multiple
BSTs

Top Down
Determine
Measure and
Dimension
Requirements

Determine
Analysts to Measure and
review
Dimension
reports for Requirements
analysis
requirements

Reports

Information Framework

Define Critical Information

Elements and assist in the
identification of candidate
data sources and change
data capture specifications

Workshops

Business
Business
Requirements
Requirements
Report
Report

CrossReference to
Requirements

Develop the framework for a

cross-functional Enterprise
Information Architecture and
specify common (and
divergent) definitions of
business definitions

Bottom Up

IBM Software Group

Solution Outline - Requirement Analysis Approach

Information Framework

Determine
Measure and
Dimension
Availability

Expand into a
Subject Area
Specific Model

Match Data
Requirements
to Data
Availability

Conceptual Data Model

Logical Data Model

Determine Data Elements

that cannot be provided
together with reasons,
recommendations & impacts

CrossReference to
Requirements
and map to
TDWM LDM

Migration
Migration
Plan
Plan

Data Discovery

Analysts to review
source systems for data
quality & availability

Gap
Gap
Analysis
Analysis
Report
Report

Determine and
evaluate
approaches for
Data Migration

Data Migration Strategy

Define High
Level
Infrastructure
Design

Customize the TDWM

LDM to specific
requirements
Define High
Level
Infrastructure
Design

Infrastructure Design

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IBM Software Group

Requirements: Business and Data

Business Requirements

360o

Support
customer base analysis

Complete & consistent view of customers

Customer Grouping & Segmentation

Customer Value Recognition & Measures

Customer Profiling & Predictive Modeling

Customer Lifecycle Management

Customer Contact Management

Customer Calling & Usage Patterns

Channel Performance

Ex-Customer History

Billed Revenue and Discount Information

Product Hierarchy & Analysis

Data Integrity Management

Accurate, complete, reliable and timely data

Data Security

Comprehensive Metadata Repository

Query & Analysis Tools

Data Requirements

Customer Hierarchy

Customer Profile

Service Profile

Usage Pattern

Spending/Rebate/Payment Pattern

Customer Behavior

Customer Contact & Campaign History

Roamers Profile

Pre-paid SIM Information

Revenue/Cost Information

Prospects

Product Hierarchy

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IBM Software Group

Gap Analysis Approach

Activity Level Costing

Business Process Scope

(Data Capture and Definition)

Business Requirement
Scope

DW
OLAP

Adhoc

Mining
Customer
Demographics

Scoping Assumptions
-

No OSS/BSS Changes in Phase 1.

No Business Process Changes in Phase 1
No Data Cleansing in Phase 1
No End-user Application Development or
Re-engineering

Information
Discovery Scope

ERP (G/L, A/P,

A/R, H/R)

Example Reasons for Gaps

Data not Available

Unstructured Data

Additional Process Required

Unclear Business Process

Unidentified Data Ownership
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IBM Software Group

Gap Analysis Report

Business Process
Process Data GAPS

System Process GAPS

Business
Requirement

Application System
System Data GAPS
Higher Priority

Business Impact Measurement

-

Lower Priority

Breadth of Impact (Org, BU, Team)

Intensity of Impact (Critical, High, Medium, Low)
Urgency (<6 Months, < 1 Year, < 2 Years)

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IBM Software Group

The DW Solution

A TDWM based Enterprise Data Warehouse

The existing Data Marts were re-engineered into the IBM Telecommunications
Data Warehouse Model and implemented on DB2 DWE, DB2 OLAP Server,
Ascential DataStage, Business Objects and ERwin.

Business Objects
DB2 OLAP Server

BI Applications

Business Solutions
Templates (BSTs)

Analysis Structures
DB2 DWE

Summary Tables

Telecommunications
Data Warehouse
Relational Model (TDWM)

System of Record (3NF)

Ascential DataStage

Change Data Capture

(Staging Flat Files)
Legacy OSS, BSS & DSS
Data Sources

Source Systems and

Interface Architecture

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IBM Software Group

DW Complete Solution View

Non-Call Center
Touchpoints
Interaction with Customers
and Prospects through SMS,
e-Mail, Direct Mail, etc.

Campaign Execution and

Target Customer
Information

Customer Contact and

Campaign Response
Information

Data Mining
Solution

Customer Contact and

Campaign Response
Information

Creation, Execution and

Refinement of Campaigns

Customer
Profile,
Transaction,
Score,
Segment &
Propensity
Information

Customer Profile and

Transactional Summaries

Campaign Creation,
Execution and Target
Customer Information

Campaign
Management
Solution

Campaign
Creation,
Execution,
Customer
Contact &
Results
Information

Integrated Data
Warehouse (IDW)
Center of Closed Loop CRM Solution

Customer Segmentation,
Scoring and Propensity

Scoring, Segmentation and

Propensity Results

Call Center

Interaction with Customers

and Prospects by Phone

Customer
Snapshot &
Scorecard
Information

Direct Query Access to all

Cube, Mart and underlying
Warehouse Information
Centralized Enterprise
Wide Reporting Solution

Analytical
Environment
OLAP, Ad-hoc and Static
Reporting Solution

Centralized Store of Integrated Customer

Information to support all CRM solutions

Operational Systems Source Data focused on

Billing

Call Center
Solution

ERP

Customer Profile, Transactional and Interaction Data

VAS

MNP

...

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IBM Software Group

Fully Integrated, Closed-Loop, Multi-Channel Solution

Closed-loop Marketing Process
Multi-channels
Creative
Development

Value
Proposition
Definition

Contact
Target Customers

Campaign
Execution
Program
Planning

360oC
Customer
Knowledge

Segmentation/
Pre-Analysis

Response
Management

Campaign Message

Direct Response

SMS
Outbound Call
Email
Shop
Direct Mail
IVRS
Web
Call Centre

Inferred Response

Performance
Analysis

Response

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IBM Software Group

Closed Loop is complete with Campaign and Mining

Reports on
campaign results
Interaction results fed
back into the system

Interaction
results captured
back to the data
mart

Campaign
Data Mart

Summarized /
precalculated
Customer
information

Customer
Interaction
Results

CRM Applications

Customer
profile
information

Marketing department
to enter criteria for
target customer
selection

Target
Customer
List

Channels to contact
customers based on
the Target customer
list

Historical
customer
information

Effective customer segmentations

Key drivers for churn model

Key criteria for acquisition campaign target list
Mining Applications

IDW
Customer
Segmentation,
Scoring, etc.

selection

Characteristics of customers with propensity to
accept up-sell & cross-sell of varying products
under different situations
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IBM Software Group

DW Solution Example

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IBM Software Group

Case Study: Churn Management Application

Business Problem - High Pre-pay Churn and IDD Defection

The wireless operator was facing increasing churn rates due to a price war and the
introduction of Mobile Number Portability (MNP).

The wireless market is saturated with mobile penetration over 100%!

Detailed analysis revealed that churning pre-pay subscribers were either porting-out
or using competitor IDD gateways.

Consequently the operator was experiencing high churn rates, reduced market share
and impacts to ARPU.

Working with IBM the Operator developed BI applications to:

Define and measure pre-pay churn rates

Identify the re-sell and/or transfer of pre-pay phones and SIM cards

Define and measure IDD defection by pre-pay users

Develop retention programs targeted at pre-pay users

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IBM Software Group

Case Study: Churn Management Application

ANTICIPATE
Anticipate
Churn Scoring:
MNP Port-outs
A/C and SIM
transfers
IDD Defection

DETECT
Detect

MNP Porting
IDD Defection
Call Behavior
Handset Changes &
Transfers
Service Complaints
Dropped Calls

ACT
Act:
Preventive Treatment
Reactive Treatment
Win-back Treatment

IMPROVE
Improve:
Variance Analysis
Detection Trigger
Performance
Program Performance

Critical Success Factors

Operator developed a comprehensive Churn Management Strategy including Churn
Prediction, Detection and Treatment Programs

This required stable baselines (e.g. customer segments, propensity models), along with
common business definitions across the process (e.g. churned customer)

Operator implemented the solution through a closed-loop approach to continuously
improve churn analytics and subsequent treatment programs

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IBM Software Group

Case Study: Churn Management Application

Anticipate

Detect

Churn
ChurnScoring
Scoring&&
Segmentation
Segmentation

Score &
Segment

Customer
Customer
Account
Account
Invoice
Invoice
CDR
CDR

Generate

EDW

OSS/BSS
ETL
Source
Data

Data Donkeys
Business Travelers
Weekend Roamers

Customer

Account

Invoice

Segments
& Scores

Update Segments & Scores

Churn Propensity
Credit Risk Rating
Uptake Propensity
Upgrade Propensity

Usage

Interactions

Churn Analysis

Act
Load
Interactions
Interactions
Interactions

Load Leads &

Watch list

Load Behaviour
and Scores

Area

Value

Plan

Tenure

IMEI

Period

Churn
ChurnPrograms
Programs

Proactive/Reactive Churn Prevention & WinWin-back

Opening # of Accounts
Closing # of Accounts
# of Churned Accounts
Predicted Churn Score
Actual Churn Score
Entitlement Balance

Improve
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IBM Software Group

Case Study: Churn Management Application

Significantly reduced churn rates and IDD defection.

Operator is collecting useful customer data at all Touch Points to produce
actionable Business Intelligence

Operator remains the most profitable in the market with the highest ARPU and
the lowest port-outs

Operator is up-selling pre-pay users to lower churn, higher value post-pay
premium brands

Operator is retaining IDD revenue through the managed release of targeted
IDD prefixes for market segments

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IBM Software Group

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