Teradata''s new Value Analyzer: A tool for all industries

Our Corporate Bureau
20 March 2004

Teradata Value Analyzer''s detailed, behavior-based approach differs from more traditional measurement tools that determine profitability by using high-level averages or aggregations. The company says, that without the details that drive revenue and costs, companies are left with an inaccurate view of value, leading to misguided business decisions that affect the bottom line.

According to Amrish Rau, Business Manager, Teradata, "In today''s economy, using a profitability measurement solution that depends on averages doesn''t make sense. Details answer the question ''why'' and provide companies with actionable information that can create a competitive advantage. Averages don''t."

Teradata Value Analyzer links revenue and expense data to actual customer transactions and interactions within a company. For a complete profit and loss metric, it also can include risk provisions and capital allocations. The metric can be calculated for any profit object. A profit object at the lowest level can be an account, a telephone number, reservation record or shipment, to name a few. Starting from a profit object, a company can easily get to different views of profitability across the enterprise including customer, product, organization and channel.

Teradata Value Analyzer provides for flexible analytical capabilities that support strategic decisions. It supports the detail flow of revenue and expenses through all entities of the organization, providing an important link between standard finance-led organizational profitability and detailed customer profitability. Modelling cost flows, it also supports the creation of activity-based management processes and calculations.

Teradata Value Analyzer calculations are completed inside the Teradata data warehouse engine itself, rather than consuming resources and time moving large amounts of data in and out of a separate system as it is processed. In addition to the speed of the calculations, accuracy, which is critical for arriving at business decisions, is not compromised, for working in a single integrated database, Teradata allows for an actionable review of all data, and not just a sample that may offer misleading clues to profitability.

Teradata, a division of NCR Corporation (NYSE: NCR), is a global technology leader in enterprise data warehousing, analytic applications and data warehousing services.