
13 | What customers really want – A customer-centric strategy for telecom operators
5) http://www.ebayinc.com/values.
6) HBR Interview with eBay CEO John Donahoe, HBR March 2011, pp. 92.
7) Ibid.
eBay stores more than 10 petabytes of data in its central data warehouse,
and the number is continuously growing. Several thousand users have
access to this central knowledge hub.
eBay is so successful because it can harness its holistic and integrated cus-
tomer view to quickly generate innovations that benefit its customers. And
this is not just a marketing promise. John Donahoe, eBay CEO, declared
that "the major themes of [his] times as CEO have been a greater focus on
customers and a greater focus on driving innovation". According to Oliver
Ratzesberger, Senior Director Architecture and Operations at eBay, 85%
of all analyses and requests that the company uses in its daily business are
targeted at new and unknown topics. Centralized, integrated data is key
to their strategic mission designed to "capitalize on this period of dynamic
change in how consumers behave".
Furthermore, eBay has implemented what it calls "sand boxes" that allow
in-house departments to use all the information in the data warehouse. They
can then compare it against additional external data by means of an easy-to-
use web interface and start experimenting. By doing so, users can generate
prototypes based on high-quality data, spot flaws early on and generate
extremely valuable new insights within days rather than months. The
scalability, consistency and speed of customer data analysis allows eBay
to act fast and on a low overall cost base.
Conclusion: eBay is not only a pioneering online auction platform, but also
a best-practice example in several fields, such as optimal online experience
and deep and comprehensive customer knowledge. This makes the company
a leader in innovation through customer understanding.
Lessons learned: Companies such as Apple, Google and eBay define the
benchmark for customer understanding. They identify customer needs and
design goods and services based on innovative preference profiles.
Telecom operators are fighting with their complex data systems. They are
busy making marginal improvements with tight technical and process re-
strictions. But the future of business does not lie just in more sophisticated
databases and algorithms. A rethinking in management is required, going
far beyond the question of how to manage and handle data. The philosophy
change goes straight to the core of the corporate DNA: What does our cus-
tomer want and how can we deliver it?
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