We provide operators with a portfolio approach to managing the different customer segments, each of them brings different opportunities that we should exploit and face  different threats that need to be mitigated.
Working with operator’s team we can develop sensitivity analysis for a number of risk factors for each operation and quantify the impact on revenue for different situations. These analysis can be used to build synthetic risk profiles to provide comparison across operations and highlight the areas of concern.

Revenue is not evenly distributed across any dimension of interest

  • As we discussed value can be concentrated on a small number of customers
  • Not only that, revenue can be concentrated on few products or even on specific usage and recharge patterns
  • From a risk management perspective that means that risk is heavily concentrated
  • They could be “actively” targeted by a competitor measuring the incoming traffic
  • But they could be also passively “targeted” by a new tariff plan, even one of ours, that hits the sweet spot
  • In order to to be able to build a proper financial assessment we need to be able to understand the quality of the different revenue streams

 

 

Datamining alone does not provide operators with a meaningful picture

  • To protect our revenue and profitability we need to understand how the different pockets of value contribute to the total picture. That means linking factors like geography/mobility, tenure, product mix and others to the actual contribution
  • We map geographic dispersion of calls for one of our customers in an emerging market, this way they understand what is the potential disruption of a new fixed wireless operator
  • For other operators the relevant factor is identifying the multi-SIM customers and which SIM is the main one
  • Risk-assessment must be enriched by a more in depth analysis of the available data
  • From a financial control perspective it is critical to asses the risk associated with different the revenue streams
  • This exercise can be greatly facilitated by a3 team and our tools

that can be used to build a more effective risk-management

  • The customer base of an operation can be seen as a portfolio of revenue generating assets, in the same way wecan also consider the different operations as part of a broader portfolio
  • Working together with the operator we can build risk profiles for each operation reflecting the specific threats and opportunities of each market
  • Operators can use them to build a broader picture of risk and revenue