Communications Company Faces New Government Regulations
A leading communications technology company faced unexpected regulatory pressure, and they needed calculated insight on the risks and rewards of innovation. Using our Smart Strategy Suite, we integrated environmental and industry data to compare relative economic costs and benefits of different technologies. Consequently, we enabled our client to fully comply with new regulations while saving 75% in labor costs and a 40-fold reduction in cost per call.
Reduction in labor costs
Cost savings per call
The Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) passed new regulations governing the practices of companies who make high volume marketing and customer support telephone calls.
Our client, a leading telecommunications company, needed to understand the effect of the changes on its large and diverse customer base.
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Using rigorous data analytics, we sought to answer the following questions:
- The cost implications of different technology options, from “peer- to-peer” signaling (most advanced) and digital signal processing (industry standard for over 20 years).
- The long-term strategic implications of different technology options.
- The effect on speed and cost of reaching existing and new customers for individual companies.
We designed a Smart Accelerizer™ to deliver Answers on Demand for strategic decisions. In order to simulate and compare specific parameters for various technological scenarios, we used a) Big Data Platforms, which standardized and integrated company performance data with industry-specific and macro data, and b) Deep Learning Tools, which employed advanced dynamic modeling for our intelligent decision systems.
Our Smart Accelerizer™ uncovered optimized conditions for the most advanced “peer-to-peer” signaling technology, that enabled regulatory compliance, a 75% savings in labor costs and a 40-fold reduction in cost per call.
Using appropriate parameters, companies could adopt the most advanced technology and achieve compliance for $0.007 per call.
By contrast, companies who persisted in using existing technology would see costs skyrocket to $0.27 per call.
Forest Products Company Optimizes Operations Due to Demand Uncertainties
A global forest products supplier was stumped by fluctuating international policies and demand levels. Using a complex embedded econometric forecasting model of the industry, our Smart Strategy Suite synthesized implications on price and ROI and simulated the effects of varying policies and demographic shifts on company policy. We isolated the optimal lumber harvesting rate – around 3.5% – to optimize their operations, decrease demand volatility, and save the company millions of dollars.
Uncertainties over Swedish hardwood inventory policies and Japanese demand for maple wood caused our client, a world player in the forest products industry, to reassess its short-term priorities for harvesting wood from its timber holdings.
Additionally, they needed to determine long-term strategic direction due to shifting demand, demographics, and policies, both domestic and international.
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We set out to address both short-term and long- term needs:
1. Find the optimal “stumpage rate” (the rate at which trees are cut) for a specific 70,000-acre site.
2. Determine implications on price and market share based on changes in domestic/international policy, demand, and demographics.
3. Evaluate strategic options, given volatility of the forest products industry.
Our DataBlender™ integrated client, forest industry, and macro data, including (a) foreign policies, (b) international demand, and, (c) domestic demographics. Then we utilized Future State Simulations to forecast future trends of volatility in real time.
Finally, using a complex embedded econometric forecasting model of the forest products industry, our Smart Accelerizer™ calculated alternative stumpage rate effects on price and ROI.
We found the optimal stumpage rate of ~3.5% would maintain market prices and market share. Rates below 2.5% would adversely affect price and market position.
Our Future State Simulations provided management with specific and detailed guidance to make well-informed strategic decisions.
By optimizing harvest rates according to our analysis, our client decreased demand volatility and saved millions of dollars.