In the age of convergence, customer churn is a concern for service providers, challenging most retention techniques...
Some time ago in one of my blogs I had talked about the product deluge that was going to hit the market with solutions in advanced analytics. To be very honest, it’s arrived faster than I had anticipated.
Not very far in time when the ERP revolution engulfed enterprises in the west, beginning from Europe to North America and finally Asia a lot was spoken about how ERP packages were designed and built considering the best practices of successful companies.
It was not that implementing an ERP system was in any way bad for the enterprise, since seamless automation across an enterprise did bring in a high level of transparency and accountability which automatically impacted performance for the better. The only limitation that I quite didn’t adjust well to was the fact that while every successful company had its own set of best practices which were so intrinsic for its sustaining success and differentiators in the market ERPs could not serve them 100%. The automobile industry is a perfect example.
Eventually best practices gave way to flexible configurations and customisations to the extent that it is now a global norm that ERP implementations will have 30% – 40% customisation depending on the industry. Some ERP product companies have gone to the extent of selling pre-customised products for specific industry segments and guess what they need to be customised too.
I wonder if we are going down the same path with analytics too? I really do not understand how will “one size fit all approach” work with a science that fundamentally focuses on helping industry leaders build unique differentiators in the market. Will the ERP story repeat here and more importantly are we once again targeting customers with the same customisation logic that created a multibillion dollar services industry?
Using an example to explain my point , let’s take the telecom industry. There are umpteen products in the market that talk about analytics for this industry, each explaining how their algorithms are better at predicting customer churn. So two telecom companies will end up using the same product leading to the same output – then where is the differentiator? Well for that we will need to get our software customised for you. Doesn’t that sound familiar? Product companies cannot be blamed here, because they come with legacies of having built ERP type of software and continue to sell their analytics software the same way.
Analytics is not about running data through a set of algorithms written by some scientist sitting in another part of the world. On the contrary its all about small wins and specialised outcomes each with its own size, colour and style. It is time the industry moves on to change the world of analytics for the better, I hereby submit my pennyworth for this larger cause.