Business intelligence approach to supporting strategy-making of ISP service management

The recent deregulation of telecommunication industry by the Taiwanese government has brought about the acute competition for Internet Service Providers (ISP). Taiwan’s ISP industry is characterized by the heavy pressure for raising revenue after hefty capital investments of last decade and the lack of knowledge to develop competitive strategies. To attract subscribers, all ISP dealers are making an all-out effort to improve their service management. This study proposes a Business Intelligence process for ISP dealers in Taiwan to assist management in developing effective service management strategies. We explore the customers’ usage characteristics and preference knowledge through applying the attribute-oriented induction (AOI) method on IP traffic data of users. Using the self-organizing map (SOM) method, we are able to divide customers into clusters with different usage behavior patterns. We then apply RFM modeling to calibrate customers’ value of each cluster, which will enable the management to develop direct and effective marketing strategies. For network resource management, this research mines the facility utilization over various administrative districts of the region, which could assist management in planning for effective network facilities investment. With actual data from one major ISP, we develop a BI decision support system with visual presentation, which is well received by its management staff. 2007 Elsevier Ltd. All rights reserved.