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Geo-Analytics Driven Agile Transformation in Telecom Retail Using H3 Hexagon-based Heatmaps

Customer
Tele2/Altel
Project manager on the customer side
Stanislav Streltsov
Chief Data and Analytics Officer
Year of project completion
2023
Project timeline
July, 2021 - March, 2022
Project scope
4320 man-hours
Goals

Business Challenges and Pain Points

• High CAPEX for new retail shops without data-backed justification
• Missed opportunities due to lack of real-time analysis
• Static business models that are unable to adapt to rapidly changing consumer
behavior
• Environmental impact of poorly optimized physical infrastructure
• Traditional methods were slow in determining optimal store locations
• High costs associated with relocating or establishing new stores
• Ensuring minimal service disruption during store transitions

Project Results

Tangible Measurements

• ROI: 7% increase due to optimized store locations.
• Revenue Increase: 5% revenue increase per product per year.
• Net Promoter Score (NPS): increased by at least 8%.

The uniqueness of the project

Innovative Approaches:

• Geo-analytics to determine the home location of a subscriber using a probabilistic distribution over base stations.
• H3 Hexagon-based Heatmaps provide a visual representation of subscriber density.
Used software

Design Principles:

• User-Centric: All designs should focus on ease-of-use and accessibility for both our internal teams and end-users.

• Scalability: The system should be able to handle increasing amounts of data as our subscriber base grows.

• Interoperability: Easy integration with existing systems for data sharing.

• Sustainability: Consider environmental impacts in all design elements.


Difficulty of implementation
Geospatial Data: Location coordinates of subscribers and base stations.
Subscriber Data: Usage patterns, peak activity times, and service type used.
Sales Data: From existing and closed stores for performance metrics.
Competitor Store Locations: To identify areas of opportunity or potential oversaturation.

Project Description

• Dashboard: A dashboard displaying heatmaps and key metrics.

• Interactive Maps: H3 hexagon layered maps that can be filtered based on different metrics.

• User Access Controls: Different access levels for different teams, ensuring data integrity and security.

Project geography
Whole country (Kazakhstan)

Lots of news from technology vendors and modern cases on how to use data analytics for operations excellence – this is what March brought us this year.

“Before the automation introduction, the process was complicated by the fact that the address system was stationary, not dynamic. We could not automate serial and batch accounting of products. It was not possible to automate the warehouse replenishment processes, both planned and on order. The accounting system did not reflect all goods movements,” says Alexander Permyakov, head of the warehouse complex.

The retail landscape is filled with various technologies and trends, but not all of them will become mainstream. Economic considerations often hinder the adoption of innovations. For instance, digital price tags have promising features but are yet to show significant economic benefits, limiting their widespread use.

This article will delve into the emerging trends in retail, with a particular focus on AI. How it is poised to lead the way in improving business 


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