Teradata case study
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The document presents the simmethod Strategy & Execution Performance Predictive Index, which aims to measure and predict corporate risk and performance amidst rising competition in the marketplace. It highlights Teradata's current challenges and outlook, emphasizing the need for industry-agnostic metrics to better assess corporate strategies and decision-making. The report suggests that understanding these predictive indices could enhance management's ability to navigate risks and capitalize on opportunities in a dynamic competitive environment.
Teradata case study
- 1. SIMMETHOD A new way to measure and predict your corporate risk and performance Is the SIMMETHOD Strategy & Execution Performance Predictive Index a strong leading indicator of Teradata’s future risk and performance? 4/5/2014 1 WWW.SIMMETHOD.COM
- 2. SIMMETHOD Strategy & Execution Performance Predictive Index On April 2, Tiernan Ray wrote on Barron’s Tech Trader Daily: • “A bit of debate is underway about what to expect from enterprise Big Data technology provider Teradata amidst rising competition from open-source software Hadoop” 4/5/2014 2 WWW.SIMMETHOD.COM
- 3. SIMMETHOD Strategy & Execution Performance Predictive Index • “Summit Research’s Srini Nandury reiterates a Buy rating, and a $58 price target, writing that the main issue for the company has been a slowdown in IT spending, not Hadoop, and that things are about to turn around for the company” 4/5/2014 WWW.SIMMETHOD.COM 3
- 4. SIMMETHOD Strategy & Execution Performance Predictive Index • Cowen & Co’s Peter Goldmacher reiterates an underperform rating on Teradata shares, writing that Q1 results on May 1st may best street expectations, but that the rest of the year may disappoint” 4/5/2014 WWW.SIMMETHOD.COM 4
- 5. SIMMETHOD • Is Teradata performance predictable based on the SIMMETHOD Strategy and Execution Performance Predictive Indices? 4/5/2014 5WWW.SIMMETHOD.COM
- 6. SIMMETHOD Risk and Opportunity Alerts 4/5/2014 WWW.SIMMETHOD.COM 6
- 7. The Way We Measure Corporate Performance Is Broken Why do Businesses fail? Blockbuster Borders Circuit City Mervyns Wachovia Washington Mutual Linen n’ Things 4/5/2014 7WWW.SIMMETHOD.COM
- 8. The CEO Lament in the Business Analytics Market • We did not see it coming. All my Divisions and Product’s Analytics pointed North while my Business as a whole (in comparison to new competitors and the Best- In-Class in multiple industries) went South. 4/5/2014 8WWW.SIMMETHOD.COM
- 9. Disrupting the Way We Measure Corporate Risk and Performance There are three main problems: • The lack of a single industry-agnostic scale to measure and predict corporate strategy & execution (competitive advantage) leads to erroneous and inconsistent C-level visibility and decision-making 4/5/2014 9WWW.SIMMETHOD.COM
- 10. Disrupting the Way We Measure Corporate Risk and Performance • Silos-analytics and leading indicators that lead to erroneous C-level decisions based on many versions of the truth unintegrated to business strategy and objectives 4/5/2014 10WWW.SIMMETHOD.COM
- 11. Disrupting the Way We Measure Corporate Risk and Performance • C-level risk and performance metrics and ratios based on industrial-era analytics that were not designed to capture intangible values or the dynamic relationships between businesses and their value chains 4/5/2014 11WWW.SIMMETHOD.COM
- 12. Silos Analytics Lead to Many Versions of the Truth and Erroneous Decisions 4/5/2014 12 WWW.SIMMETHOD.COM
- 13. 4/5/2014 WWW.SIMMETHOD.COM 13 Lack of Business and Value-Chain Leading Indicators and Risk Alerts Company view SIMMETHOD™ industry view indicators & alerts SIMMETHOD™ value-chain view, leading performance indicators & alerts SIMMETHOD™ global market view leading risk/ performance indicators & alerts database Inward- Looking Analytics Maximum Risk, Minimum Visibility Value-Chain and Market Leading Indicators and Risk Alerts Minimum Risk and Maximum Visibility
- 14. The Leading Indicators and Risk Alerts of the Best-In-Class Why do you need Industry Agnostic Leading indicators and Risk/Opportunities Alerts? • In an interdependent Market (like the Planets in the solar system) your current and future risk and performance are impacted by an ecosystem of constantly changing competitors coming from inside and outside your Industry. 4/5/2014 WWW.SIMMETHOD.COM 14
- 15. Your Gap to SIMMETHOD’s Best-In-Class Determines Your Risk and Performance Your current position against the B-I-C and competitors Gap to B-I-C in your industry Gap to Competitors in a range of industries Gap to B-I-C in a range of industries Your original targets against SIMMETHOD Database 4/5/2014 15 WWW.SIMMETHOD.COM
- 16. SIMMETHOD’s Disclaimer • The purpose of the SIMMETHOD Strategy/Execution Performance Predictive Index, Reports and Risk/Opportunities Alerts is not to make a Business right or wrong but rather contribute towards the understanding of management actions in comparison to industry peers and the SIMMETHOD Best-In- Class. 4/5/2014 WWW.SIMMETHOD.COM 16
- 17. SIMMETHOD’s Disclaimer • SIMMETHOD’s Strategy/Execution Performance Predictive indices, metrics and risk/opportunities alerts do not seek to be exact but rather serve as a conduit to ask better questions and seek better answers in the performance improvement, risk minimization and value creation journey. 4/5/2014 WWW.SIMMETHOD.COM 17
- 18. SIMMETHOD’s Disclaimer • Sometimes, the value of a metric in itself does not provide the greatest of insights, but valuable actionable knowledge is gained from its ability to provide a trend or a common comparison yardstick with other Businesses across a range of industries. 4/5/2014 WWW.SIMMETHOD.COM 18
- 19. SIMMETHOD’s Disclaimer • This report is for informational purpose only and SIMMETHOD shall not be liable for the contents of the report or risk/opportunities alerts or for any damage incurred or alleged to be incurred to any of the Businesses included in the Report as a result of its content 4/5/2014 WWW.SIMMETHOD.COM 19
- 20. SIMMETHOD • Is Teradata performance predictable based on the SIMMETHOD Strategy and Execution Performance Predictive Indices? 4/5/2014 20WWW.SIMMETHOD.COM
- 21. SIMMETHOD’s C-Level Indices Business Trends 2012-2013 Teradata and the Best-In-Class The following C-Level indices show Teradata’s ability to: • Strategize and execute against the SIMMETHOD Best-In-Class • Compete against the Best-In-Class and current and future competitors and are leading indicators of future business opportunities, risk and performance 4/5/2014 21 WWW.SIMMETHOD.COM
- 22. SIMMETHOD’s C-Level Indices Business Trends 2012-2013 Teradata and the Best-In-Class • When the Best-In-Class and your SIMMETHOD C-Level indices are moving in opposite directions your ability to compete weakens in proportion to your widening gap to the Best-In-Class 4/5/2014 WWW.SIMMETHOD.COM 22
- 23. SIMMETHOD’s C-Level Indices Business Trends 2012-2013 Teradata and the Best-In-Class 4/5/2014 WWW.SIMMETHOD.COM 23 0 5 10 15 20 25 30 35 40 SIMMETHOD Management Controllable Resources index SIMMETHOD Value Creation Index SIMMETHOD Minimum Company Business Model index SIMMETHOD Strategy & Execution Performance Predictive Index Teradata 2012 Teradata 2013 Average 2013 Best-In-Class Although still positive and above average, every C-level index is pointing south from an historical trend and against the Best-In-Class point of views. Will the trend be reversed in 2014?
- 24. SIMMETHOD’s C-Level Indices Business Trends 2012-2013 Teradata and the Best-In-Class • What are Teradata’s strengths and weaknesses in relation to its peers and the SIMMETHOD Best-In-Class and what are the areas that need to be improved to narrow the gap to 2014 Best-in-Class performance? 4/5/2014 WWW.SIMMETHOD.COM 24
- 25. SIMMETHOD’s Business Trends Across the Major Indices – 2012 to 2013 4/5/2014 WWW.SIMMETHOD.COM 25 -5 0 5 10 15 20 25 30 35 40 Teradata 2012 Teradata 2013 Negative trends in the Sales, Overheads, HR and Cash/debt indices have contributed to a lost of competitive advantage against peers and the Best-In-Class
- 26. SIMMETHOD Competitive Intelligence Ability to Strategize and Execute Against Peers 4/5/2014 WWW.SIMMETHOD.COM 26 Teradata Oracle SAP IBM -5 0 5 10 15 20 C-Level view of risk and performance against peers Teradata Oracle SAP IBM
- 27. SIMMETHOD Industry and Business Trends Sales and Marketing contribution to Business Value 2012 to 2013 4/5/2014 WWW.SIMMETHOD.COM 27 -5 0 5 10 15 20 25 30 35 40 Teradata Strategy & Execution Performance Predictive Index B-I-C Strategy & Execution Performance Predictive Index Teradata Sales Index B-I-C Sales Index 2012 2013 The drop in Teradata’s Sales index shows a decreased contribution of Teradata’s sales to value creation and a weakened competitive position against the Best-in-Class
- 28. SIMMETHOD Competitive Intelligence Sales and Marketing View 4/5/2014 WWW.SIMMETHOD.COM 28 -5 0 5 10 15 20 IBM Oracle SAP Teradata 2013 B-I-C SIMMETHOD Sales Index SIMMETHOD Strategy /Execution Performance Predictive Index Although its Sales Index has underperformed the B-I-C, other indices have contributed to Teradata’s above average Strategy & Execution Performance Predictive Index
- 29. SIMMETHOD™ Industry and Business Trends HR contribution to Business Value 2012 to 2013 4/5/2014 WWW.SIMMETHOD.COM 29 0 5 10 15 20 25 30 35 40 Teradata Strategy & Execution Performance Predictive Index B-I-C Strategy & Execution Performance Predictive Index Teradata HR Index B-I-C HR Index 2012 2013 The drop in the HR Index shows a declining contribution from HR to Business value creation and a weakening of Teradata’s competitive position against the Best-In-Class
- 30. SIMMETHOD Competitive Intelligence HR View 2013 4/5/2014 WWW.SIMMETHOD.COM 30 -5 0 5 10 15 20 25 IBM Oracle SAP Teradata 2013 B-I-C SIMMETHOD HR Index SIMMETHOD Strategy /Execution Performance Predictive Index A high score on the 2013 Strategy & Execution Performance Predictive Index is a leading indicator of 2014 above average performance
- 31. SIMMETHOD Strategy & Execution Performance Predictive Index In summary, is the Strategy & Execution Performance Predictive Index a good leading indicator of Teradata’s 2014 threats, opportunities, risk and performance? 4/5/2014 WWW.SIMMETHOD.COM 31
- 32. SIMMETHOD Strategy & Execution Performance Predictive Index TERADATA Trends and competitive intelligence 2012-2013 Same index performance Negative trend 2012-2013 Strategy & Execution Performance Predictive Index same index performance Negative trend 2012-2013 Performance against the Best- In-Class Negative trend 2013 Strategy & Execution Performance Predictive Index against peers Positive 2013 Strategy & Execution Performance Predictive Index against the Best-In-Class Positive 4/5/2014 WWW.SIMMETHOD.COM 32
- 33. SIMMETHOD Risk and Opportunities Alerts • The SIMMETHOD algorithms review business data and stockholders valuation-decisions across business sectors and build industry- agnostic indices in order to identify, measure, correlate and predict your strengths, weaknesses, risks and opportunities against your current and potential future competitors from inside or outside your industry. 4/5/2014 33 WWW.SIMMETHOD.COM
- 34. SIMMETHOD 2014 Industry and Business Trends • SIMMETHOD’s Strategy & Execution Performance Predictive Indices and trends are not deterministic. Businesses that act on their leading indicators and risk alerts will improve their 2014 performance as will be shown in the forthcoming update of the SIMMETHOD database, performance predictive indices and correlations. 4/5/2014 WWW.SIMMETHOD.COM 34
- 35. SIMMETHOD Risk and Opportunities Alerts SIMMETHOD is in the top 1% of most viewed in Slideshare and has been “Hot” on LinkedIn, Twitter and Facebook 47 times. 4/5/2014 WWW.SIMMETHOD.COM 35
- 36. Jorge Oscar Tabacman jtabacman@gmail.com Twitter ID: SIMMETHOD SIMMETHOD A New Way to Measure and Predict the Risk and Performance of Your Business and Alert You of New Threats and Opportunities 4/5/2014 36WWW.SIMMETHOD.COM