C-level briefing: Sébastien Deletaille, CEO, Real Impact Analytics, talks to CBR about telcos dealing with historical problems, competing with IBM and Accenture and overselling Big Data.
Telecom companies are typically described as having a ‘gold mine’ of data, but many are struggling to provide value from what they have.
Deletaille, said: "Telcos overall are probably one of the players that historically have the best industry to generate data, but have been completely unable to compete on that, to actually transform their business model to leverage the asset they have."
He believes that they face a number of problems; a lack of agility, historical problems and the people in charge simply not understanding the industry today.
He said: "Telcos are far from being agile and far from being ahead in terms of tech. They claim to be brilliant, they claim to be many things but when you actually look into their kitchen you realise that they are sometimes stuck in legacy.
"There are a lot of historical problems in their business model that they haven’t managed to tackle yet."
The failure to tackle this problem is seeing OTTs and web players step in and take this opportunity away from them bit by bit.
Another major problem they face is that they do not understand the industry.
"People who are in charge of telecoms today, who are they? They are people who grew up in voice. That’s where they made their careers, so they’re not on top of data, they’re not of web and they’re not on top of multi play. The people who are in charge are not the guys who get the industry today."
Deletaille spoke of the complexity that some of these carriers are creating; he advises that while looking at Big Data from the tech point of view is important, it’s not going to create any value because the last mile is where it hurts.
Making sure that analytics are embedded in the day to day work of your teams is important. Deletaille says that this can be answered with apps, which can be independent or built within the technologies that they have.
However, he says: "Telcos are really bad at building apps.
"They’re great at making big technology road maps, but in using those technologies, using them well to create apps – they’re really not good at that."
Clearly there needs to be a change and to some degree, telcos are working on becoming more agile.
However, Deletaille said: "They don’t realise it is investment driven. If I look in other places in the world, for example telcos across Europe they are very good at having labs with hundreds, sometimes thousands of people where the output is lower analytical value than what has been developed in the US.
"There they are just impossible to start bringing it to market, they’re just too slow, they’re too big.