Como bien dijo Gordon Gekko, en la película Wall Street (1987), “La mercancía más valiosa que conozco es la información”. Afortunadamente para las compañías de comunicaciones y sus Directores Financieros, no carecen de esta “mercancía valiosa”, la cual pueden aprovechar mediante analíticas.
Descubre cómo los Directores Financieros pueden aprovechar sus datos mediante analíticas de telecomunicaciones, para tomar mejores decisiones que impulsen el crecimiento y mitiguen los riesgos, viendo la grabación del webinar llamado “No te quedes atrás: una guía de Directores Financieros para aprovechar las analíticas avanzadas”, que tuvo lugar el 14 de diciembre.
But let’s go back a moment.
The world of telecommunications, as we know it, is evolving and, with it, the role of Financial Directors is also undergoing a drastic change. Its role is no longer limited to focusing solely on past performance, numbers and financial information, but the mandate seems almost universally exceeded, and the CFO also needs to provide information on where the business is going and how fast it is doing.
The participation of the Financial Directors in the corporate strategy has also become an integral part of the work, since they now have the capacity and the mandate to contribute directly to the business management, as well as to review and report on their performance. All this means that today’s Financial Directors must be more strategic and need to ensure that they are more aligned with the strategic imperatives of the business, and this requirement places the Financial Director at the focal point not only for the presentation of financial reports, but also also for management reports, in addition to maintaining a solid and healthy balance sheet.
But, as we know, the dynamic nature of the telecommunications environment poses multiple obstacles to the modern CFO, which includes – but is not limited to – the following:
_ CFOs today must ensure that they are able to increase the margin and return on profits.
It is a well-known fact that ARPUs have been steadily declining in all regions of the world and, together with the slow growth of revenues, is leading to a steady erosion of margins since 2010 in most regions. In the midst of these challenges, the Financial Directors’ mandate to increase margins and profit performance is increasingly critical and difficult.
_ Organizational attempts to increase revenue are deflating due to errors and leaks.
Addressing Income Leaks is a major concern for telecommunication operators, and it is fast becoming a mandate for Financial Directors, considering that currently most of the RA teams report to them. Given that Income Leaks have a direct impact on revenue growth, the CFO’s role now is to take a proactive stance in the treatment of any error or loss.
_Evaluate the risks and develop measures to prevent security breaches.
Like revenue leaks, security breaches and telecommunications fraud can cost operators a lot, and is an obstacle to ensuring that CFOs maintain a solid balance sheet. $ 38.1 billion (USD) were lost due to fraud in 2015 and, although the number is decreasing, Telcos continue to feel the impact of losing money due to fraud, and the task of resolving this lies with the Chief Financial Officer.
_Increase Capital Expenditures during a period of decreased income.
A recent survey conducted by TMForum, led by Subex, revealed the following conclusions:
– 1 in 3 operators does not measure the returns on investment in CAPEX.
– 77% of respondents consider that the inappropriate use of assets leads to an increase in costs.
– 55% of respondents believe that network planning is based on assumptions.
– 64% believe that capex planning is driven by technology and not by business objectives.
On the other hand, CSP’s global revenues decreased by 5.3% for the year ended March 2016, while gas responded to volatility and speed of change
The signs indicate that revenues from traditional services will stabilize in the next 10 years. In fact, some analysts anticipate that revenues from traditional communications services will be reduced by 50% from current levels by 2025. This means that CSPs must embrace the digital revolution and can no longer be stupid but must be seen as smart tubes By offering digital services and being seen as DSPs or even LSPs (Lifestyle Service Providers) to capital increased, raising capital expenditures (capex / revenue) to 19.8% for the year.
_Increased competition, even from OTT players.
According to Ovum, it is expected to cost the Telcos a combined total of $ 386 billion between 2012 and 2018.
_Responder to volatility and speed of change.
The signs indicate that revenues from traditional services will stabilize in the next 10 years. In fact, some analysts anticipate that, by 2025, revenues from traditional communications services will be reduced by 50% from current levels. This means that CSPs must embrace the digital revolution, and can no longer remain dumb channels, but should be seen as smart tubes that offer digital services, and be seen as DSPs or even as LSPs (Lifestyle Service Pviders).
And the challenges do not end there! Today, CFOs need to devote more time and effort to managing the future rather than residing in the past and, therefore, need to further analyze the analytical data to connect the dots and predict the future. To their advantage, Telecommunications Financial Managers possess unprecedented amounts of data, from multiple sources, including customer data and network data, and can take advantage of this data through the power of telecommunications analytics.
If taken advantage of in the right way, through the application of advanced analytics, Telecommunications Financial Managers will be able to address the challenges they face and achieve business results that align with their agenda, through the generation of actionable telecommunications knowledge. CFOs can have a 360 degree view of their business context and identify and even proactively predict problems, opportunities and threats, and help them address them before internal audits. For these reasons, it has now become the mandate of the CFO to conduct analytics for both strategic and operational decision making.
Through the generation of Telecommunications Knowledge, an Advanced Analytics Solution can help Financial Managers to meet the growing expectations placed on changes in their roles, enabling them to:
_Proactively predict and direct resources to counteract risks and take advantage of opportunities .
_ Reduce uncertainty by anticipating disruptive changes, and respond and adapt to create growth opportunities.
– Predicting Income and Fraud Leaks to face risks proactively.
_Predending redundancies and reassigning budgets to reduce and control costs.
_Increase the impact of pricing decisions and promotions through optimization.
The Advanced Telecommunications Analytics solution has the scope to help the Financial Directors of telecommunications operators to meet business objectives drastically, and we have even seen or, better said, helped a Level 1 CSP, based in North America. , to save costs, simply by helping them resolve disputes. Through the generation of telecommunication knowledge, the association helped the CSP improve its ratio of predicting and resolving disputes to 9x, which in turn helped them save up to millions of dollars. This is the power of the Advanced Telecommunications Analytics solution.
For more information on how CFOs can take advantage of telecommunication analytics to maximize revenue and mitigate risks, see the webinar’s recording “Do not Stay Back: A Guide for Financial Managers to Take Advantage of Advanced Analytics,” on March 16. February.
Sandeep is responsible for Product Marketing of Subex’s Analytics portfolio. In addition to this role, he also looks after Public Relations and Analyst Relations for the company. He comes in with 9 years’ experience in the Marketing domain.