IBM Researchers Develop Analytics Technology For Telecommunications Industry

Projects help Service Providers Gather Deeper Customer Insight

ARMONK, N.Y., Oct. 5 /PRNewswire-FirstCall/ -- IBM (NYSE: IBM) today announced
two analytics-focused research projects that will help telecom service
providers and e-retailers improve customer service and new-customer
acquisitions.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090416/IBMLOGO )

Scientists at IBM Research labs in India and Israel have made advancements in
analytics to examine the way customers communicate, make purchasing decision,
and download applications. Both projects enable communication providers to
quickly find actionable insights in huge volumes of data -- all while learning
how their customers' preferences change.

IBM Social Network Analysis

Operating like a social barometer, IBM's Social Network Analysis technology is
being developed by scientists at IBM Research - India to map the social
networks and calling patterns of telco subscribers. By sorting through the
anonymous calling data, the technology is able to analyze people's social
behavior with uncanny accuracy. This type of insight will enable service
providers to improve the overall mobile telco experience.

IBM Research - India is conducting a pilot projects with telco customers,
enabling them to map their subscribers' social network, with the goal of
reducing customer turnover and increasing customer satisfaction. By analyzing
calling patterns, service providers can now develop more attractive and useful
subscriber plans -- particularly for those high-volume, highly social
subscribers who seem to heavily influence their friends' calling plan
decisions. Mapping relationships between individuals, groups and organizations
enable services providers to better identify target markets and develop more
effective customer retention programs.

To preserve complete privacy, the technology doesn't capture the conversation
held during telephone calls. Instead, the algorithms examine enormous amounts
of existing quantitative data such as call duration, volume, and time of day,
as well as frequency and points of origination. These projects do not require
additional information to be collected.

IBM has applied for multiple patents on this technology.

IBM Customer Analyst

Meanwhile. IBM Customer Analyst technology, under development by IBM Research
-- Haifa, focuses on better understanding Internet users -- particularly
mobile telephone subscribers. The proof-of-concept technology employs
sophisticated algorithms to create a detailed profile of existing and
potential customers by analyzing purchasing and download habits. This can help
carriers and retailers predict what products and services -- and what
combinations of these offerings -- will appeal to particular consumers.

IBM Customer Analyst proof-of-concept is currently being piloted by Taiwan
Mobile, a leading telecommunication company in Taiwan. This technology will
allow the service provider to tailor the offering to "right" products to
existing customers, as well as identify the exact customers to pursue with
particular products and/or offerings.

For example, IBM Customer Analyst might determine from online purchasing
habits that a segment of urban, male Taiwanese consumers between the ages of
20 and 30 likes both jazz and science fiction. It can then recommend telco
products that are likely to appeal to those interests. By using algorithms to
make unobvious correlations between demographics and online activity, telcos
can tailor more customized offerings to customers and provide invaluable data
to marketing managers.

"IBM's Social Network Analysis and Customer Analyst technologies will provide
telecom companies and retailers with significant insights about their
consumers," said Dr. Guruduth Banavar, director of IBM Research - India and
the global leader of IBM Research's Mobile Web initiative. "The use of
analytics is enabling IBM to help its clients deeply understand consumer
preferences and patterns, so that they can ultimately be better served.
Enterprises can now also make better decisions and customize their offerings
to particular consumer segments."

These projects are part of IBM's five-year, US $100 million investment to
advance mobile services and capabilities for businesses and consumers
worldwide. Through this effort, IBM is aiming to drive new intelligence into
the underpinnings of the mobile Web to create new efficiencies in business
operations and people's daily lives. Analytics, security, privacy, and user
interface are particular focuses.

IBM has already made tools commercially available which map and analyze social
networks within companies. Called Lotus Connections Atlas, the offering spots
important connections and the relationships between teams and in-house
subject-matter experts.

For more information about IBM Research, please visit
http://www.research.ibm.com

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Media Contact:
Sarah Spencer
IBM Communications
+ 1-917-472-3728
scspence@us.ibm.com

Ari Fishkind
IBM Communications
+ 1-914-945-2319
fishkind@us.ibm.com

SOURCE IBM

Sarah Spencer, +1-917-472-3728, scspence@us.ibm.com, or Ari Fishkind,
+1-914-945-2319, fishkind@us.ibm.com, both of IBM Communications