The Challenge

Find ways to minimize costs for operational efficiency while improving organizational capabilities. Do more with less overhead and expense.

The Organization

A manufacturer with 8 data marts dispersed throughout the enterprise.

Total budgeted support costs for all data marts:
	$15 million per year (Includes 55 Full Time Equivalent associates to support these 8 data marts, along with operational expenses such as maintenance, duplicate storage costs/processes, software license fees, network support, etc.)

Background

Can the organization contain its costs?
Data marts, while they may have been relatively inexpensive to buy, are very costly in terms of support and information limitations. The sum of all costs associated with data marts can be diverted or channeled to realize a "singe view of the customer" via an Enterprise Data Warehouse. This will result not only in cost savings, but process efficiencies throughout the organization that can be quantified as well.

The benefits of consolidating all data marts into a single Enterprise Data Warehouse…
Capital expenditure of a Teradata Warehouse:	$7 million
Total budgeted support costs for the new infrastructure: (Includes 20 Full Time Equivalent associates, along with incremental operational expenses, such as maintenance, licenses, training, etc.)	$4.4 million per year
Reduction of annual support costs:	$10.6 million per year

Bottom Line

Considering the cost of the new Enterprise Data Warehouse, which includes professional services for migrating the data marts, over a 3-year investment horizon, the annual operating savings will create an immediate increase in the market value of the manufacturing company in excess of $7.8 million.

Put another way, not consolidating the data marts would result in the loss of $7.8 million in the organization's market value… not to mention the fact that ongoing costs associated with data marts, which are really silos of information, will continue to spiral out of control.

This is the type of ROI Clarity the manufacturer can achieve as a result of Teradata's Business Impact Methodology.