Teradata, a division of NCR Corporation (NYSE:NCR), today announced a new version of its award-winning Teradata Value Analyzer, the only analysis tool that calculates profitability at the detail level driven by customer behavior. Much admired for its strength in the banking and telecommunications industries, Teradata Value Analyzer 3.0 is now available for all industries.
"Profitability analysis by product, channel and customer is an essential part of the planning process to make decisions regarding resource allocation, product development and for identifying pockets of opportunity," said Kim Collins, Gartner analyst.
The insights generated by Value Analyzer enable an assessment of all types of business profitability and support swift, sound decisions guiding marketing, product and customer service initiatives, according to Mike DeBrosse, vice president of 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's detailed, behavior-based approach differs from more traditional measurement tools that determine profitability by using high-level averages or aggregations. 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.
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 and robust 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. Modeling cost flows, it also supports the creation of activity-based management processes and calculations.
Teradata Value Analyzer calculations are easily completed inside the Teradata data warehouse engine, 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 speed of the calculations, accuracy, which is critical for making confident business decisions, is not compromised. Working in a single integrated database, Teradata allows for an actionable review of all data, not just a sample that may offer misleading clues to profitability.