More Decisions, More Complexity, More Data: Teradata Survey Validates Global Phenomenon

Fifth annual executive survey reveals insights about analytics as driving competitive differentiation: a dramatic shift in the effect of decision-making on customers, demand for real-time information and distribution of critical decision-making up, down and across the enterprise

September 19, 2006 - ORLANDO, Fla. – Nearly 1,200 international executives report that constant and compounding increases in the volume of data and the number of daily decisions are driving significant business priority changes, according to the fifth annual survey of senior executives of large corporations by Teradata, a division of NCR Corporation (NYSE: NCR).

“The survey results have wide-ranging implications for how organizations will operate in the years ahead,” said Bob Fair, vice president and chief marketing officer of Teradata. “For example, this year, executives participating in the Teradata survey put customer loyalty as the highest risk on a list of the top-five casualties of poor decision-making. Profits moved to number three, after four years as number one. We think this shows greater recognition of the importance of using analytics to differentiate from competitors by better serving customers. If I do a better job with customers than my competitors, I win.”

The importance of real-time information is a five-year trend, and this year 85 percent of respondents said that decision-makers need more up-to-date information than in the past, up from 71 percent last year. “Speed and real-time decision support matter because, when you have the customer on the phone or in front of you, or you have a truck in the loading dock, you want to make sure that the right data is available so that the best decisions can be made on the spot,” said Fair.

According to almost 40 percent of respondents, front-line staff is increasingly making critical business decisions. In addition, over 40 percent of respondents said C-suite executives – such as chief operating officers, chief financial officers, chief information officers and chief marketing officers – are more involved in strategic corporate decision-making than five years ago.

“Daily decisions at the front lines add up to become a significant force in the success of the entire business,” commented Fair. “It becomes clear that critical business decision-making is being extended up, down and across organizations. These findings support what we call active enterprise intelligence. Companies can now use their enterprise data warehouses to support both strategic and operational intelligence and ensure that the entire organization consistently executes against strategy. The result is better, smarter decisions for competitive advantage.”

Two-thirds of responding executives said their companies use data warehousing. Over half (54 percent) said their companies’ vision is to move to centralized enterprise data warehousing. “However, 69 percent of Teradata customers, often cited as the most innovative leaders in the use of technology, are moving toward enterprise data warehousing, putting them well ahead of this finding,” added Fair.

The results of the fifth annual decision-making survey of international executives were released in Orlando today at the 20th Teradata PARTNERS User Group Conference and Expo, the world’s largest data warehousing and analytics event.

Other survey findings

Over two-thirds (68 percent) of the executives surveyed said that the number of daily decisions has increased over last year. For five consecutive years, Teradata’s surveys have found that the increase in data is compounding, with 96 percent to 100 percent of respondents saying data is increasing, and over half saying data is doubling or tripling over the previous year (52 percent in 2006). And 97 percent said that decisions remain complex.

“Executives from Asia-Pacific organizations were twice as likely to cite business growth as the cause of the increases in data and decisions, compared to respondents from the Americas and Europe, Middle East and Africa,” said Fair. “This reflects the booming economic environment in the Asia-Pacific region, where competition is growing as consumers become more discerning and have greater choice for products and services.”

According to the survey:

* The top uses of data warehousing are improving customer service and financial performance management.
* The top-five casualties of poor decision-making are customer loyalty, company reputation among customers, profits, company productivity and customer service.
* About 70 percent of respondents from the Americas and Asia-Pacific said that using unstructured data can be a competitive advantage, compared to 36 percent of respondents from Europe, the Middle East and Africa (EMEA).
* Nearly two-thirds of respondents from the Americas and EMEA and over half of those from Asia-Pacific said that they don’t have access to dashboards. Those who do said they are getting value, but 54 percent said that dashboards don’t give them all of the information they need.

About the Fifth Annual Teradata Report on Business Decision-Making

The Teradata study was fielded by BuzzBack online market research in June-July 2006, querying 1,171 executives from 23 countries – 56 percent from the Americas, 23 percent from Asia-Pacific and 21 percent from EMEA. Eighty-four percent are senior executives up to “C-suite” titles. Sixty percent are with companies that have annual revenue of $1 billion or higher. A broad range of industries and functional departments was represented in the random sample of executives.

About Teradata Division

Teradata (www.teradata.com), a division of NCR Corporation (NYSE: NCR), is the global technology leader in enterprise data warehousing, analytic applications and data warehousing services. Organizations around the world rely on the power of Teradata’s award-winning solutions to get a single, integrated view of their business to enhance decision-making, customer relationships and profitability.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR’s Teradata® data warehouses, ATMs, retail systems, self-service solutions and IT services provide Relationship Technology™ that maximizes the value of customer interactions and helps organizations create a stronger competitive position. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 29,300 people worldwide.

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NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.

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Dian Terry

NCR Corporation

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