You have millions of customers, but only a small window of opportunity to engage those customers through your various touchpoints. How do you successfully deliver business campaigns during those small windows? The answer lies in the ability to formulate and deliver a unique, personalized customer experience. That, in turn, requires that you understand your customers more deeply than you probably do today.
This was the situation faced by KDDI, one of the largest mobile carriers in Japan, with more than 50 million subscribers. The Japanese mobile market is oversaturated, which means that competition among carriers is particularly stiff.
To deliver a better customer experience, which in turn can drive revenue growth, KDDI teamed with Accenture to form ARISE analytics, which analyzes Big Data for meaningful customer activity information. Using KDDI data and Accenture assets, we built “Single Brain,” an integrated customer care engine hosted on AWS. Digging deep into the data and using machine learning algorithms, ARISE unearths insights about customer preferences from petabytes of lifestyle data. With Single Brain, KDDI can optimize its customer channels, contact timing and content.
ARISE is transforming KDDI from a communications company to a broader touchpoint for customers’ daily lives by using AI to develop customer profiles that can help tailor a unique customer experience. In this way, KDDI can stay competitive with other web services and other mobile network operators.
Results have been impressive. During the initial pilot, the company’s conversion rate rose by 130 percent. Customer care also improved.
Other ARISE innovations
The initial ARISE experience laid a solid foundation for additional innovative collaboration projects to be deployed onto the AWS ecosystem.
Case in point: Accenture and KDDI crossed industry boundaries, working with a major automotive company and a taxi service on an AI-based taxi dispatch support system. Real-time processing was enabled through AWS cloud-native components. The system predicts demand by combining taxi logs with demographic predictions from smartphone location-based data and event information. Results during the pilot month were impressive. Drivers who used the system recorded an average sales increase of 20.4 percent compared to an overall average increase of 9.4 percent.
ARISE can also revolutionize a manufacturing environment. On the factory floor, experienced workers can often detect machinery breakdowns before they occur. But how can that knowledge be passed on to less experienced employees?
ARISE Predictive Maintenance alerts companies ahead of time to potential breakdowns. Sensors collect data about things like vibrations, temperature and electrical currents. The collected data is analyzed by the AI system. In this way, the prediction of machine failures—which before could only be addressed by experienced engineers—can now be performed by anyone.
There are three strong advantages to this service:
Easy implementation. To install, one simply attaches any commercially available sensors to the production line. Once installed, the data is accumulated in a cloud server through the network.
Can be put into action immediately. Within one week of collecting data, the AI system will be able to detect differences between normal and abnormal operations.
High precision. When alerts arise, by teaching the AI system whether or not it was a legitimate cause, the system becomes smarter and more accurate in predicting potential failures to the production line. With this service, by being able to predict failures to the equipment, managers can preemptively order components and perform routine maintenance with minimal interruption to operations.
Thanks to this AI-based solution, delayed deliveries and unexpected machine maintenance caused by equipment failures can be reduced and stable production maintained.
Collaboration and growth
We believe the distinctive collaborative approach used on these projects can lead to sustainable growth for KDDI. Staff from Accenture and KDDI are paired on the same team—a dynamic operating model promoting an active exchange of knowledge and expertise between the two companies.
In the era of 5G and IoT, data utilization will be a key differentiator. ARISE analytics has the potential to lead KDDI and other companies on a path of continuous growth.