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Solutions > Profitability Analytics > Enhance your Activity-Based Costing

Business Issue:

Enhance your Activity-Based Costing process by incorporating the profitability impacts of external actions

Activity-Based Costing (ABC) helps you plan and control the financial impact of internal processes, but cannot account for business costs controlled or driven solely by customer, supplier and other external activities. Teradata Value Analyzer defines profitability across the entire spectrum of a business's profit and loss statement, providing a technological foundation for ABC as well as the ability to capture the impact of independent, external behavior. Teradata Value Analyzer provides you with a holistic, encompassing and consistent view of customer, product, channel or organizational profitability.

Why is this a critical business issue?

With globalization increasing the amount and intensity of competitive forces they face, companies have a greater need to understand the exact activities — internal and external — that impact their bottom line.
* Special Focus: Evolving finance -  Teradata Magazine

What are others doing?

Increasing numbers of companies are transcending traditional, aggregated profitability measures in order to gain a bottom-up understanding of customer, product and organizational profitability.
* Case Studies -> A transformation in corporate culture -  Teradata Magazine
* NII Holdings Selects Teradata® Profitability Analytics Solution

What are the experts recommending?

Read about Teradata's new partnership with DFA Capital Management, which is based on Teradata's capabilities at improving return on capital and risk management.
* Teradata and DFA Capital Management Inc. Announce Partnership

What should you do?

By providing the technological foundation for effective Activity-Based Costing and Management but also providing the ability to capture the impact of independent customer behavior, Teradata Value Analyzer uniquely provides you with a holistic, encompassing view of enterprise profitability.
* A Holistic View of Profitability



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