Teradata Enables Banks to Find and Cut Hidden IT Costs with Data Mart Consolidation ProgramSeparate data warehouses for each department are costly; banks lose their competitive edge while missing "the big picture" DAYTON, Ohio, May 2, 2003 - Teradata, a division of NCR Corporation (NYSE: NCR), today announced a data mart consolidation program for financial services institutions designed to help save millions by tackling a common problem hidden within their information technology (IT) infrastructures - too many data warehouses, not enough usable information. By combining these departmental data warehouses (called data marts) into an integrated system, bankers can increase the amount of knowledge they have about the state of their business while saving millions - an important strategic move in these unsettled economic times. "Financial institutions that took the data mart route now have new incentives to consolidate their data in a single, integrated warehouse. Today's economic environment increases the appeal of an enterprise system that will both reduce IT costs and improve competitive advantage through more comprehensive and accurate analysis," said Jim Donovan, vice president, Teradata financial services industry marketing. "Teradata surveys of IT professionals show that 68 percent believe their companies need to consolidate data marts." By taking the information from disparate systems and combining it into a central, enterprise-wide TeradataÒ warehouse, banks can eliminate their redundant data mart costs, estimated at $1.5 to $2 million each annually by Teradata research, while enjoying an increase in system performance and a "big-picture" view of the business. With a big-picture view across all product lines and delivery channels, banks are now able to better understand customer preferences and predict future behavior. This business intelligence can be successfully used to personalize customer relationships and improve sales-response rates by more profitably positioning and pricing products and services. With 61 percent of businesses* lacking a single view of their data, institutions that work with Teradata to consolidate systems will have an immediate advantage over their competition. In addition, banks with an enterprise-wide view can better manage risk. They can observe, analyze and predict risky behavior like the customer who takes a cash advance on a credit card, makes a late payment on a mortgage and then withdraws a large amount of cash from a checking account resulting in overdraft charges. Historically, many banks used disparate data marts to capture and analyze business data. This dependence on data marts can be traced back to organizational politics, departmental budgeting policies, the approach of solving only one business problem at a time and database vendors whose products work best with small sets of data. Teradata's research found that 59 percent of companies maintain up to 30 data marts, and some companies have as many as 100. Since the initial cost of purchasing these systems often falls within companies' departmental capital-spending limits, organizations lose track of the exponential costs of duplicating staffing, hardware and software licenses. "One of the biggest perpetrators of costly data marts are vendors who lead companies down this path because their databases don't have the power or scalability necessary for an enterprise system," said Stephen Brobst, Teradata chief technology officer. "Data mart consolidation is a solution that reduces IT costs while proving tangible business benefits." To help financial institutions smoothly and seamlessly consolidate their data marts, Teradata's data mart consolidation program includes assessment services, migration tools and customer education, in addition to business impact models that calculate return on investment (ROI). The business impact models developed by Teradata can create custom ROI projections based on the size and number of data marts consolidated and the speed of implementation. Using the model and patent-pending business impact methodology, one recent Teradata customer's analysis yielded a projected IT-support cost savings of 40 percent to 50 percent. In this specific instance, annual cost savings represented tens of millions of dollars. Teradata customers that have consolidated their data marts are saving from thousands to millions of dollars per year in license, maintenance and personnel costs previously incurred by maintaining and synchronizing redundant data on multiple systems. These savings are inclusive of the costs of the integration and the Teradata warehouse. Teradata's data mart consolidation program is backed by a worldwide network of Teradata professionals. With experience in financial services, they are able to provide data mart consolidation assessment services and migration tools and utilities. About Teradata Division Teradata, a division of NCR Corporation (NYSE: NCR), is the global leader in enterprise data warehousing and enterprise analytic technologies and services. For more information, visit www.teradata.com. About NCR Corporation NCR Corporation (NYSE: NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR’s ATMs, retail systems, Teradata® data warehouses and IT services provide Relationship Technology™ solutions that maximize the value of customer interactions. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 29,600 people worldwide. # # # NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries. * The Teradata research study was completed by BuzzBack online market research based on surveys of 108 IT professionals from large U.S. companies conducted in October 2001, with follow-up studies in 2002.
Contact:Dan Conway, NCR Corporation
Telephone:(858) 485-3029
E-mail:dan.conway@teradata-ncr.com
|