The Now Factory Vision

The Now Factory, an IBM Company, is at the centre of a data revolution. We are witnessing a significant shift not only in terms of social behaviour towards mobile media consumption but also in how CSPs are attempting to position themselves in dealing with this change. With the traditional revenue streams of Voice and SMS (revenue wave 1 and 2) slowing down (-5% CAGR) and buoyed-up only by the rapid growth (+20% CAGR) of data traffic (the 3rd revenue wave), CSPs need to position themselves as more than just utilities. They need to identify new business models and services to sell over and above data. We call these 4th-wave services.

It’s our vision that by the end of the decade, CSPs will fall into one of two camps: One camp will become low-margin high-volume utilities, whilst the other camp will become the centre point of communication and media consumption turning the mobile device and network into the concept of the “Digital Self”.  The difference between these two camps will be customer analytics.  One will have systems that have the ability to analyze the behaviour profiles and usage of every customer in real time so as to drive change; the other will not. Customer analytics will be critical in helping identify and build new B2B2C business models and personalized services like m-health, m-commerce and m-wallet etc. as CSPs start to build out and drive the 4th wave of services.

There is already strong evidence this change is well underway:

  • Today there are over 6 billion mobile handsets versus 1.5 billion fixed line phones.
  • Smartphones have already overtaken the number of PCs and are forecast to drive over 65% of all network traffic by 2017.
  • Mobile broadband connections are already double that compared to fixed broadband.
  • Mobile video will consume over 65% of network capacity by 2017.
  • Operators have already started to create B2B2C 4th-wave revenue models (e.g. Telefonica, NTT Docomo)

This shift has not been entirely lost on our business leaders either. For example, mobile advertising is growing more rapidly than any other form of advertising, and m-commerce is starting to dominate e-commerce as the mobile device becomes the service launch pad of choice. For example, Mobile Advertising is growing more rapidly than any other form of advertising, and m-commerce is starting to dominate e-commerce as the mobile device becomes the service launch pad of choice. In this new data driven world, understanding the mobile customer through network-derived analytics is going to become absolutely critical and will be the differentiator between success and failure.

For the last 7 years, The Now Factory has provided CSPs with products specifically to extract actionable intelligence and analytics from enormous quantities of network and business data.  This big data solution has addressed the critical business needs of our customers today including:

  • Discovering new revenue growth through data monetization as Voice and SMS revenues start to slow.
  • Helping optimize and target the cost of network growth as network demand increases out of line with revenue.
  • Retaining customers and building loyalty through advocacy and customer experience initiatives.
  • Reducing the cost to serve the customer in the face of call centre call volumes increasing 10-fold with the advent of the smartphone.

The Now Factory’s award-winning portfolio of products and innovative approach will enable our customers to be ready for whatever the future holds. We can’t predict the future, but we will make you part of it.

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