Kognitio celebrates ten years of helping BT

After Ten Years BT is Still at the Top of the Pricing Game Thanks to Kognitio WX2

Marlow, United Kingdom – 14 January 2008 – Kognitio, a leading provider of business intelligence (BI) and data warehousing solutions, today celebrated ten years of helping BT, one of the world’s largest providers of communications solutions, to maximise revenues and minimise losses through rapid and highly detailed tariff analysis and re-pricing. Thanks to Kognitio WX2 BT has been able to run ‘what if’ type analysis whereby results are obtained in time to apply any appropriate changes to tariffs before market conditions change.

In order to understand the impact of call pricing alterations, BT’s tariff analysts have been able to interrogate entire sets of Call Data Records (CDRs) as opposed to small data samples, and ask highly specific queries such as “What would happen if we cut evening calls by 1p per minute for customers on tariff A?” and “What would happen if we moved customers on tariff A onto tariff B but incentivised them with 100 free minutes per month?” Such insight into the company’s customer data has enabled BT to thoroughly understand where it could make changes to increase revenues and eliminate loss-making price-plans thus helping it maintain its leading position among the world’s telecommunications operators.

“Our relationship with Kognitio can be summed up as a strategic partnership in the true sense of the phrase,” explains Arthur Winn, head of pricing at BT. “For a whole decade, we have been able to rely on Kognitio and its technology to help us stay ahead of the game. We have true insight into our business and the effects that pricing changes would have on it. It’s incredibly beneficial to the company to be able to analyse all the data as opposed to data samples and assumption-based analysis. The WX2 database technology offers sheer brute force. The service allows us to be ahead of the game by having access to fast, powerful repricing and analysis service. The service allows us to mitigate any losses by ensuring new revenues from new services. To have this sort of analysis is priceless to the business.”

One of the main advantages of using Kognitio WX2 to carry out pricing analysis is that it allows organisations such as BT to put entire sets of CDRs to the test, not just small data samples which lead to inaccurate results. This analytical database allows BT to publish reports via a front-end web GUI which are then accessible through an interactive Business Objects interface. This affords the BT pricing analysts more insight than just call re-pricing; users can drill down and see the specific effect of tariff changes on their costs, revenues, margins and potential customer churn.

“Ten years of working with BT is a significant endorsement of the value that Kognitio delivers to its customers,” explains Roger Llewellyn, CEO at Kognitio. “Kognitio WX2 was built from the ground up to query vast amounts of data in just seconds as opposed to days or weeks as other solutions do. Over the years, we have helped BT successfully launch a wide range of pricing plans and tariffs which are highly tailored to the company’s customers. Plans such as BT Business Plan and One Plan, BT Together Options 1, 2 and 3 have been launched as a result of detailed analysis enabled by Kognitio WX2.”

At present, Kognitio analyses and re-prices against a rolling 15 months’ worth of full volume CDRs against new tariffs; it also offers bespoke analysis as well as a contractual services to BT which involve re-pricing against all of the price points, including margins and profits.

“Tariffs are continually reviewed by all telecommunications operators and new price plans are introduced on a frequent and regular basis for both mobile and fixed lines to maintain or increase the customer base,” continues Winn. “By using Kognitio WX2 to rapidly examine ‘what if’ tariff scenarios we have been able to quickly react to any changes in the competitive landscape and stay ahead of the competition; with Kognitio the analysis is penny-perfect.”

One of the most interesting and useful insights gained over the past ten years includes BT’s ability to determine the customer lifetime value of their clients. By running analysis over a given period of time, they can quickly see the dynamics of their price plans and tariffs that have either safeguarded custom or lead to customer churn. By constantly fine tuning their pricing, Kognitio allows BT to very quickly ensure that churn is minimised whilst revenues are maximised.

“By working with Kognitio, a whole new world of possibilities has opened up,” says Winn. “By virtue of fast data analysis, we can see the value of repricing straightaway. Kognitio has consistently provided detailed output in very short timeframes. As such, we have a wealth of information and possibilities that we can explore on an iterative basis.”

Kognitio’s service and solution have given BT significantly increased confidence, allowing the team to be innovative and creative thus selling the right products and maximising sales efforts. The decision-making process is now a positive one; the company has full agility to perform true what-if analysis, which helps to optimise its revenues and minimise its costs. There is no need now to rely only on data samples when re-pricing and analysing calls and margins. Looking to the future, BT is now moving into more in-depth analysis and opening it up to sales and marketing professionals within the company who can take the re-pricing work even further, thus ensuring that the most is gained out of the services that Kognitio has been offering BT.

About Kognitio WX2

Kognitio WX2 is a high performance, analytical RDBMS. Kognitio WX2 runs on low-cost non-proprietary, industry-standard hardware and can be scaled to handle hundreds of terabytes of data with performance that delivers answers in real time. This technology delivers the most comprehensive, cost-effective Business Intelligence database platform in the industry and is available as a stand-alone software solution, as a Virtual Data Appliance (VDA), as a BI-in-a-box solution or on a Data as a Service (DaaS) basis.