Transforming capex with analytics and a demand-driven approach to planning
A major national telecoms operator wanted to understand how customer demand was driving capex spend across their fixed and mobile networks. The engineers did not have information about which products were causing the demand and as a result a key link between the commercial drivers and spend was missing.
Working with engineers, commercial and finance teams, we transformed how the business thought about planning for capex, maintaining a commercial lens throughout the planning cycle and enabling the client to quantify product and sector returns across their entire portfolio for the first time. The new planning process was supported by a dedicated tool that used data from across the business, enabling rapid scenario analysis, and exposing the key KPIs that would drive capex efficiency gains in the business.
Capex planning is now embedded as a key strategic decision making tool, and is used to prioritise capex investment in products and projects that deliver strong returns. It has been used to identify nearly 20% of total enterprise capex for reinvestment.
Reporting priceplan profitability in near-real time
In most telcos, product profitability is a product of a typical financial reporting timescales of weeks to months. This can often be too late to understand the impact on margin of customer reactions to changes in price plans.
We worked with a national mobile operator to track the behaviour of new product launches targeting high value customers with offers of free international call/data usage. By combining sales and usage information, our tool was able to show the client on a daily bases the customer growth and offer consumption. The tool meant that the client had full visibility of their customer base and allowed them to rapidly cease any offers which were being exploited excessively by their customers.