Data management requirements today are changing, and as the future of big data unfolds, it’s important for analytics and data controls to be a unified solution.
As we enter this brave new world of Big Data, maintaining the status quo is no longer enough.
The number of mobile devices will surpass the world’s population this year, according to Cisco’s Global Mobile Data Forecast. The data those devices generate across networks is exploding accordingly.
Global mobile data traffic increased 81 percent last year alone, to 1.5 Exabytes a month. Cisco predicts it will reach a staggering 15 Exabytes a month by 2018. The volume of this data, as well as its complexity, means that traditional approaches to data analysis for things like fraud prevention and risk management are simply no longer viable.
A combination of analytics and data control tools is vital to ensuring data quality and managing risk. While one analyzes trends and gleans key insights from the information, the other ensures the data is accurate. Without integrity controls, analytics could very well be producing erroneous insights.
Garbage in, garbage out, so it’s time to clean up the trash.
Together, analytics and controls deliver a powerful, next-generation solution right now to proactively minimize pain points like risk and fraud, improve accuracy and efficiency and reveal consumer behaviors.
Some of the best real-life case studies come out of the telecommunications industry. For major cellular or cable companies, it is critical to prevent risky subscribers from signing up for services rather than provision them and then determine whether they pose a fraud or nonpayment risk. Companies that run effective analytics at the point of sale identify risky consumers before providing expensive subsidized equipment and incurring other costs. They have an opportunity to deploy measures that exclude subscribers who commit identity theft or other fraud schemes and to manage others who present financial risks.
About 5 percent of telecom customers default on their contracts. Predictive analytics help separate subscribers who will fail to pay on purpose from subscribers who could be good customers. Analytics can identify consumers who intended to pay but defaulted because of their circumstances. Analytics can also help make some of them profitable customers again through collection efforts that include retention plans that manage future exposure.
Analytics and Controls Beyond Fraud
Predictive analytics aren’t limited to just fraud. Marketing teams already use them to determine which customers will prove most profitable over their lifetimes, which customers are likely to churn and how they can be retained and which customers are well suited to upsell. Analytics are already being harnessed worldwide to better run every aspect of the business.
But to do any of this, data must be accurate and complete. The ability to make good predictions involves data generated by the organization, as well as data available in the public domain like demographics and social network data.
When you’re dealing with opportunities and risks that are worth millions of dollars, you want to be certain you use precise, complete data to get answers that will enable effective actions. Automated controls ensure service providers work with accurate, holistic, consistent data to produce accurate, auditable results.
Risk reduction alone adds significant value to operations. The ROI for this approach is quick and easily quantified. One of the largest cable multiple-system operators (MSOs) in the U.S. discovered more than 14,000 confirmed cases of fraud among its 15 million customers within 10 months of implementing a fraud-detection solution based on analytics that covered the lifecycle of its subscribers. It uncovered over 25,000 total actionable cases with very few false positives.
Combining analytics with controls will help you to identify the customer of tomorrow – and to earn and measure significant financial returns, starting right now.
For most organizations, that’s just the beginning.
About Infogix, Inc.
Infogix is an innovative leader providing data integrity and data analytics solutions to market leaders around the globe. Infogix solutions for data integrity provide an automated, independent and real-time system to ensure the trustworthiness of your data for effective decision-making and analysis. Our customer and operational business analytics allow you to monetize big data while streamlining your processes, reducing expenses and maximizing revenue by providing actionable insight and highly automated value capture. For more information, call +1.630.649.6800 (U.S, Canada, and International), or visit http://www.infogix.com.