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Government’s New Frontier: Leveraging data for more insight, greater efficiency Government & Health Technologies Forums 2005 Presenter: Rick Makos, President Teradata Canada

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Government’s New Frontier: Leveraging data for more insight, greater efficiency. Government & Health Technologies Forums 2005 Presenter: Rick Makos, President Teradata Canada. Fortune 500 company Global operations in more than 100 countries & territories 28,500 employees - PowerPoint PPT Presentation

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Page 1: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

Government’s New Frontier:Leveraging data for more insight,

greater efficiency

Government & Health Technologies Forums 2005

Presenter: Rick Makos, President

Teradata Canada

Page 2: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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2004 Revenue by Business Unit

NCR Corporate Overview

• Fortune 500 company• Global operations in more than

100 countries & territories• 28,500 employees

• 9% revenue increase, $5.984B• 6.1% improvement in NPOI from

4.2%

TeradataFinancialRetailSystemediaCustomer ServicePayment & ImagingOther

Teradata Data Warehouse

Retail Solutions

Financial Solutions

Worldwide Customer Services

Systemedia

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Teradata, a division of NCRWho are we

Teradata is the global leader in enterprise data warehousing and enterprise analytic technologies and services. Teradata is 100% focused as a company on the BI, Data Warehousing solution space. (100% of people, R&D, Solutions, Partnerships, and Training)

• What We Do: Teradata gives companies a single, integrated data source for analysis so they can make better, faster decisions that help drive top and bottom line growth.

• How We Do It: Using an enterprise data warehouse approach and proven, powerful technology, Teradata provides new insights with analytic capabilities that turn data into information.

• Why Believe: Teradata has a successful track record helping leading companies around the world leverage their organization’s data for analysis and decision-making.

• Driven By Visionary Customers

Teradata Differentiators:> Focus on Data Warehousing> Experience - Proven track record & strong customer references > Powerful Technology & Full Suite of Data Warehouse Services> Enterprise Approach

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Teradata Approach to Market

•Solve industry-specific analytical business problems

> Teradata CRM, Financial Management, Demand Chain Management, Supply Chain Intelligence, Value Analyzer

•Partner with key analytic technology providers and system integrators, e.g.,

Consulting

Analytics

Partners

Platform

Support

Integrated Data Warehouse Solution

4000+ ProfessionalsWorldwide

Page 5: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Exploit the Value of Information

• Data…one of your most valuable assets.• Governments are continually facing data challenges like

inflexible analytic capabilities.• To make better decisions you need to

exploit data, better access to it.• Why?

> Data can answer questions that can solve problems and/or challenges.

• Integrated data takes you to the next level of analysis and decision making.

Page 6: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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What Would It Be Worth?

• If you could answer questions such as…

> Who is not filing their business or personal taxes?> How much money has not

been collected because of non-compliant taxpayers?

> What is the impact of this loss of revenue?

> How long will it take to identify non-compliant taxpayers?

Enterprise Data Warehousing – the foundation for High Impact Operational Questions

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Enterprise Data Warehousing – the foundation for High Impact Operational Questions

What Would It Be Worth?

• If you could answer questions such as…

> Do you know that an event has occurred?> When did you become aware of the event?> What is the impact of the event?> What will you do as a result of the event?> How long will it take you to take action?> And can you handle an event you did not anticipate?

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$10M

$20M

$M

Transaction View

MissionView Evolution to

Enterprise View

Investment

Operational Effectiveness

Transaction View

PreformanceView

MissionView

MissionView

Advantages of an Enterprise Data Warehouse

• A centralized, integrated enterprise data warehouse is the optimal solution for delivering integrated data.

> Single, integrated view of agency operations providing consistent and accurate information.

> Enables better, faster decisions.> Improve Operational Effectiveness.

Page 9: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

Why “one size fits all” approach to managing data is not the answer

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10 >

Source: Gartner Symposium IT Expo 10/17/04, “Technology Radar Screen 2005-2014”

Computing Architecture: Building For Agility

• More than 2/3 of new applications will emit business events by 2008 (0.6 probability)

Rapid response to changeIncreased business relationship flexibilityLower transaction costsProcess and goal consistency

Rapid response to change

Rapid response to change

Rapid response to change

Rapid response to change

Rapid response to change

Rapid response to change

Rapid response to change

SemanticsMetadataStandards

Era of: Hardware Software Access Process Events Goals

Increased Agility and Complexity

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“Data Warehouse”Environment

Typical Technology Infrastructure

SAPPeopleSoft

Oraclei2

Manugistics

SAPPeopleSoft

Oraclei2

Manugistics

SiebelPeopleSoft

OracleClarify

BroadVision

SiebelPeopleSoft

OracleClarify

BroadVision

DataDataMartsMartsDataDataMartsMarts

OracleOracle

Tec

hn

olo

gy

Pro

vid

ers

Tec

hn

olo

gy

Pro

vid

ers

ERP / SCMBack-Office Operational

Systems

CRM Front-Office Operational

Systems

Page 12: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Multiple Data Marts: Higher Risk, Higher Cost

• Analysts believe that multiple data mart projects can:> Result in failed projects nearly 3X more often.> Suffer 70% higher cost per subject area.> Are costly: Annual cost to maintain one data mart = between $1.5 million

and $2 million. > Gartner: Reduce costs by 50 percent; increase value of BI applications by

500 percent by consolidating data marts.

Page 13: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Enterprise Data WarehouseEnvironment

ERP / SCMBack-Office Operational

Systems

CRM Front-Office Operational

Systems

Bett

er,

Faste

r C

usto

mer

Com

mu

nic

ati

on

s

Evolving to a Complete Decisioning Environment – Enterprise Data Warehouse

Bett

er,

Faste

r O

pera

tion

al A

cti

on

s • Single view of the business

• Detail-level analysis

• Unlimited growth

• Real-time data access

• Eliminate expensive, inefficient data marts

Page 14: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Tax Forms

AuditTargeting

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

Tax Forms

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

DepartmentParadigm

EnterpriseParadigm

AuditTargeting

(110)

(110)

Think Big, Start Small

Page 15: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Payments

Collections

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Tax Forms

AuditTaregting

Payments

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

Tax Forms

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

DepartmentParadigm

EnterpriseParadigm

Audit Targeting+ Collections

(90)(110)

(150)

(110)

Think Big, Start Small

Page 16: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Payments

Collections

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Tax Forms

Asset Reporting

Payments

Dem

os

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

Single view of enterpriseStore once, use many times

Optimized cost structure

Tax Forms

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

Demographics

DepartmentParadigm

EnterpriseParadigm

Audit Taregting +Collections +

Tax Policy

Tax Policy

(90)

(350)

(200)(110)

(150)

(110)

Think Big, Start Small

Page 17: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

2005 Analyst Trends

Page 18: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Source: Gartner Symposium IT Expo 10/17/04, “Gartner Scenario for the Future of IT – Disruptions and Discontinuities”

1998 2003 2008 2013

IT-Enabled Business Agility

Transition

Chaotic Distributed Computing Environment

Real-Time Infrastructure

Computing and Infrastructure Islands, Chaotic, Expensive Management

Infrastructure Standardization and Instrumentation

Self-Managing Resources

IT Service Management / Process Maturity

Policy-Based Resource Allocation

Automated Problem Resolution

Predictive Optimization

Service / Infrastructure Fusion

Advances in Technology: Infrastructure

• The deployment of real-time infrastructure (RTI) is inevitable. Through 2008, it will roll out in phases to drive lower costs, provide greater agility and improve quality of service.

• Moving to RTI will improve service quality, improve agility and reduce IT operations/infrastructure costs by 11 percent to 14 percent of the data centre budget, before investments are made.

Page 19: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Source: Gartner Symposium IT Expo 10/17/04, “Top 10 Strategic Technologies for 2005”

Real-Time Infrastructure: Efficient, Flexible

• Policy-based management for the distributed environment will become a reality from 2006 through 2010 (0.7 probability). The RTI will be inevitable, rolling out in phases through 2010 (0.8 probability).

Workloads / Data• Applications• Middleware• Databases

Resources• Compute• Store• Network

Identities / Security

OPTIMIZATIONP

OS

ITIO

NIN

GA

VA

ILA

BIL

ITY

Self-discover, install and integrate

Avoid, predict, react to failures

Efficient utilization of resources to service policies

PoliciesIT service definitions

Service agreements

Business priorities

ServicesThat meets business requirements

Page 20: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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Source: Gartner Symposium IT Expo 10/17/04, “Gartner Scenario for the Future of IT – Disruptions and Discontinuities”

Business Process Fusion Must Be Communications-Enabled

• By 2010, 80 percent of organizations will have integrated communications (voice, IM, messaging) into some business applications/processes (0.8 probability)

Whenever human intervention or a decision is required, the process must stop and move to a different infrastructure /process chain

Human intervention may still be required, but with communications integrated into the process – presence, messaging, real-time voice – the delays are minimal. The application will contact the appropriate person using a communications application

Each human intervention can add minutes, hours, days or weeks to the process

Real-Time Voice or Messaging

Infrastructure

Real-Time Voice or Messaging

Infrastructure

CRM ERP IIIndustry

AppBack Office

Market Event

2004: Current Reality Extended Enterprise

Trading Grid

Market Event

2008: Future Potential

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Advances in Technology Require a Service Delivery Model for Applications

• By 2006, companies must have adapted their architectures and infrastructures to aggressively begin deploying composite applications. Those lacking these capabilities will operate at a distinct competitive disadvantage.

Source: Gartner Symposium IT Expo 10/17/04, “Gartner Scenario for the Future of IT – Disruptions and Discontinuities”

2003 2005 2007 2009 2011

Business Agility: Event-Driven and Adaptive Processes

Composite Applications

Applications Maze

Service-oriented architecture development accelerates

Service software markets appear – products mainly individual services (greater than 70 %): few applications (less than 30%)

Composite development approach dominates – services enhance or extend legacy applications

Early availability of new applications that are “pure” SOA from vendors

Early fusion-capable applications appear

New applications/services broadly available to configure compound, fused processes

Traditional applications wrapped or SOBA-enabled broad availability

New application capabilities drive process availability

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Data Warehousing Key Drivers

• Pent-up demand for data warehousing services.• Growing data volumes, data complexity and intolerance for

latency (delay). • Dramatic improvements in hardware price/performance.• Innovations in database technology.• Integrated business intelligence (active data warehousing).• Data mart consolidation advances.• Service-oriented architecture (SOA) incorporates data

warehousing. • The need to get to know the customer as a system of

dispositions and behaviours. • The need to work smarter and reduce costs.• Data Quality.• Business Performance Management.

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Data Warehousing – The “Must Remember” List

• A data warehouse is a solution to a business problem not a technical problem.

• The warehouse needs to constantly overcome obstacles that are as yet undefined.

• “Mores Law”: more users wanting more applications that have more complex and varied analysis against more data with more frequent updates in a more timely manner.

• The goal behind the warehouse is consistency and agreement, not just access.

• The foundation put in place determines the speed, and duration of the business evolution.

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Enterprise Analytics Topologies

Sources

Users

DW

Sources

Users

DW

Marts

Sources

Users

Marts

Sources

Users

Middleware

Data Mart Centric

Virtual,Distributed,Federated

Hub-and-Spoke DataWarehouse

EnterpriseData

Warehouse

Independent Data Marts

Leave Data Where it Lies

Dependent Data Marts

Centralized Integrated Data

With Direct Access

Pros

• Easy to Build Organizationally

• Easy to Build Technically

• No need for ETL• No need for separate

platform

• Allows easier customization of user interfaces & reports

• Business Enterprise view

• Design consistency & data quality

• Data reusability

Cons

• Business Enterprise view unavailable

• Redundant data costs• High ETL costs• High App costs• High DBA and

operational costs

• Only viable for low volume

• Meta data issues• Network bandwidth and

join complexity issues• Workload typically placed

on workstation

• Business Enterprise view challenging

• Redundant data costs• High DBA and

operational costs• Data latency

• Requires corporate leadership and vision

Page 25: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

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TXAPPL

NW

DA-MW

TXAPPL

MSG-MW

DA-MW

TXAPPL

MSG-MW

DA-MW

TXAPPL

MSG-MW

DA-MW

BIAPPL

MSG-MW

DA-MW

DSSAPPL

MSG-MW

DA-MW

DSSAPPL

MSG-MW

DA-MW

Real-Time-Enterprise Reference Architecture

Business Process Automation

Decision Support Repositories

Analytic & Decision Making Services

Transactional Repositories

Batch

Streaming

Data Acquisition

Transactional Services

Enterprise Users — (Browsers and/or Portal) Legacy EnvironmentLegacy Environment

Service Brokers

Business Rules

MSG-MWEvent

Notification

MSG-MW MSG-MW

Event Detection

WAN / VAN

RS

EDW — BEDW — A

Internet / Intranet WAN / VAN

OLTP1 OLTP2 OLTPi OLTPn

DA-MWDA-MWDA-MW

RDBMS basedEvent

Processing

BIAPPL

NW

DA-MW

QDQD

C/S EDI Consumers Suppliers Internal Partners EDI C/S

ASP / JSP

Intranet / Message Bus

Page 26: Government’s New Frontier: Leveraging data for more insight,  greater efficiency

Government & Health Case Studies

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What Teradata Brings to the Table

• The leading, most mature, stable and scalable data consolidation and analysis solution.> Current clients reflect industry leaders in a variety of government

and commercial areas:– La Régie de l'assurance maladie du Québec (RAMQ), US Air Force and

US Navy, Army/Air Force Exchange Service (AAFES), Defense Threat Reduction Agency (DTRA), as well as FedEx, Bank of America, 3M, SBC – an Enterprise Data Warehouse that grows linearly as your information needs grow

• Superior domain expertise in data warehousing, data analysis, and data mining.> Hardware, software, and the professional services needed to bring

together enterprise knowledge discovery solutions.> Any question, of any data, at any time.

• Rapid Solution Implementation:> Teradata solutions available in weeks or months, NOT years

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Province of Quebec - RAMQ

Regie de l’Assurance Maladie du Québec (RAMQ)An Agency of the Québec Ministry of Health and Social Services

(MSSS)

• Set up by the Québec Government in 1969 to provide a payment vehicle to Health Care Practitioners for MSSS in the delivery of Medical, Drug, Dental, Home Care, Eye Care & Medical Device Services to Québec Citizens.

• Mission Statement – To Maintain and Enhance the Health and Well Being of Québec citizens.

• 1,677 employees (349 I.T.)

• Funding is provided mostly (80%) by the Provincial Government to RAMQ – 20% paid by Health Card subscribers.

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Province of Quebec - RAMQ

• Issued and Manages 8M Health Cards in the Province of Québec.

• Currently has over 6 years of historical customer data available on-line on Teradata EDW.

• RAMQ is beginning to assume a greater role within Ministere de la Sante et Services Sociaux (MSSS) as custodian of extended provincial Health Care data and information.

• Teradata installed and in production since early1996.

• Teradata is a key and core Enterprise Data Warehouse (EDW) infrastructure for RAMQ in the support of MSSS strategic initiatives for Province of Québec.

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Province of Quebec - RAMQ

• Teradata infrastructure is currently made up of a Development/Test Single Node 4475 system and Dual Node 4950 Production Systems. Have 1TB of raw storage on system.

• Initial use of Teradata EDW system was for Compliance and Fraud detection of Provincial Drug Claims ($1.2B in 2003).

• Currently evaluating adoption of Teradata Warehouse Miner (TWM) utility software for specific RAMQ Data Mining applications. Completed successful TWM Proof of Concept in October, 2004.

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Teradata Customer Since 1993

Medco Health Solutions, Inc.

Business Solutions

•Over 47 applications were built using the Data Warehouse with 10 major applications

• Integration of claims, eligibility, pharmacy, prescription provider, drug and formulary data from 15 systems

• Integrated view of plan members, scalable platform and ability to communicate across multiple channels

•Website fulfills over 165,000 prescriptions each week

Customer ProfileMedco is a leading Pharmacy Benefits Manager (PBM) in the United States, and has the country’s largest mail order pharmacy operations. Medco assists its customers (health plans, large employer groups, Medicaid and now Medicare) in moderating the cost and enhancing the quality of prescription drug benefits to over 60 million Americans. Their data warehouse enables them to be a leader in their industry -- in knowledge, innovation, technology, and in pioneering new products and services. Medco services more than 1,650 health plan sponsors, almost 60,000 retail pharmacies and 2 mail service pharmacies for its members.

Implementation Summary•2 billion prescription claims on the data warehouse

•Load approximately 3 million prescription claims daily along side complex analytical queries and processes

•Manage more than 688 million prescriptions annually

•Maintain 3, 4, or 5 years of history per customer

•Over 2000 active users

•Over 50,000 queries per day

Realizations and ROI•Saved $40 million in one 6-month period thru lower priced generic

drugs

•Ranked #1 in Customer Satisfaction by J.D.Powers & Associates – 4th year in a row

•2004 Codman winner from JACHO – reduction of medical errors in mail-order fulfillment of drugs

•2002 Realware Award winner for Best Customer Intelligence and Interaction Application

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Implementation Summary• Integrated data from nine separate health-related agencies

•Managed and used by agency subject matter/programmatic experts, not by the IT department

•Over 200 users in Medicaid and 8,000 state-wide

Realizations and ROI• Estimated annual savings of $75 million–$100 million due to

advanced health care analysis

• Medicaid administrative costs have been reduced by 25 percent

• Recoveries for Medicaid Fraud has doubled

• Maximized Medicaid program savings while sustaining quality care

• Warehouse helped Michigan go from “last to first” in child immunization rates

• Track and substantiate savings in Medicaid pharmacy costs

• 2004 TDWI Best Practice Award Winner – Government and Non-Profit Category

Teradata Customer Since 1991

Business Solutions

• Data warehouse integrates claims/encounters; beneficiary eligibility data; provider data; birth records; death records; long-term care assessments; WIC data; immunizations; lead screening; newborn screening; & notifiable diseases.

•Fraud & abuse

•Contract management with health plans

•Healthcare cost & quality assessment

•Overpayment & COB analysis

•Program effectiveness

•Predict State’s healthcare needs

•Prioritize health initiatives for future

Customer ProfileAs the largest department in the State of Michigan, DCH is responsible for managing delivery of health care services to more than 1.2 million clients and overseeing an annual budget of $9.5 billion. DCH administers many of the State’s most critical programs, including Medicaid, WIC, and child immunizations.

State of Michigan, Department of Community Health (DCH)

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Implementation Summary•More than five years of history

•1.3 Billion claims

•650 users from 47 counties that is expected to grow to thousands

Realizations and ROI • First year in operation paid for entire implementation of

the DW!

• Better analysis of integrated data resulted in recoveries in the millions!

• $16m - Coordination of Benefits, $5m - duplicate payments, $1 million - overpayments

• $187 million saved due to better policy decisions based on medical and pharmaceutical analysis

• Millions saved due to efficiency of analysis such as Audit process reduced to 2 hours from 8 weeks

• 2004 NASCIO Award – Best Information Architecture Category

Teradata Customer Since 1999

Business SolutionsNew York is making more rapid, informeddecisions about programs, policies, and people across its vast Medicaid system.

• Fraud & abuse• Tracking bio-terrorism indicators daily by

pharmaceutical purchases with acute illness data from hospital emergency rooms

• Determining disease patterns and trends and the best possible treatment

• Tracking drug pattern usage to prevent abuse

• Program effectiveness• Service delivery effectiveness• Enhanced audit control• Forecasting the cost and utilization of

expensive prescription drugs• Identification of overpayments• Responding quickly to legislative

inquiries

Customer Profile The State of New York’s Medicaid program provides critical health care services to more than 3.7 million participants – 2.4 million in New York City alone. To serve this constituency, the State processes and analyzes more than 300 million claims totaling more than $38 billion annually. It is the largest Medicaid program in the US.

The New York State Department of

Health (DoH)

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Implementation Summary• Integrated data from BCBS plans of several states into

regional Data warehouses

•Business Objects is primary data access tool

•2000 users mostly spread over several organizations (5000 + queries daily)

Realizations and ROI• Fraud detection strategies aimed at members and providers provides

highest ROI

• Increased productivity of analysts (80% analysis vs. 80% data gathering)

• Reduced mortality rates of heart surgery members

• Never was denied a premium increase request since implementation

• Complex utilization & reporting analysis enables winning new accounts over competition

• 2004 TDWI Best Practice Award Winner for Data Quality & Management

Teradata Customer Since 1991

Business Solutions

Regional Solutions – Integrates datafrom merged plans: membership, medical encounters, medical management, financial, and specialtydata from a variety of internal operational systems and external business partners into a consistent format

• Medical Trend & Utilization Analysis

•Risk Management

•Provider Profiling & Management

•Agent/Broker Commissions

•Fraud & Abuse

•Client Reporting

•Litigation Support

Customer Profile Anthem Inc. provides health benefits under the Blue Cross & Blue Shield license in 13 states. The company currently provides medical benefits to more than 28 million members, as well as dental, pharmacy benefit management and life insurance benefits.

WellPoint (formerly Anthem)

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Australian Tax Office

Support for Government policy makers…allows modeling of effect of proposed changeWhat is the revenue impact of a proposed change to the tax law?

Inheritance tax changes? Deductions per child? Hardship due to SARS?What constituents are most affected by a proposed change to the tax law? By Region/Industry/Age Group/income Group

Sophisticated analytics for compliance management.Identify purposeful evasion, innocent evasion, common mistakes.Random tax audits shown to be very ineffective in catching purposeful evasion (still

necessary, but far fewer). Scoring returns on compliance more effective to select files for audit.

Optimization of collections activity.Able to score filers over several years, identify compliance patterns.Developed a tax collection strategy that addressed individual cases consistently.

Proactive CRM (Citizen Relationship Management)Want citizens to understand value of paying taxes.Focussed messaging e.g.when an airport was improved, the local community

was mailed on how their tax dollars were used.

The ROI of this project was realized many times

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Australian Government

CentreLink Social Services Mission for advanced data warehousing…• Dramatically reduce resource leakage:

> Only pay those eligible• Lower the cost of service delivery;

> Limited case managers> Refine case selection for more targeted activities.

• Improve effectiveness of existing programs.• Back to work program:

> What skills development training or support needs to be given e.g. language skills, daycare, resume?

• Improve the convenience, quality and effectiveness of client interactions.> How do you choose which citizens have priority

Critical to measure effectiveness

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Australian Government

Cooperation across departments:

On a periodic basis, under very tight regulatory controls, the ATO and CentreLink are allowed to temporarily share (match) information across their data warehouse platforms to identify issues of non-compliance.

Who is receiving Social Assistance but also pays Income tax from employment?

Who is receiving Social Assistance but not filing taxes?

This application alone is worth many millions of dollars per year and pays for the DW investments with ROI in the 1000’s of percents realm. As leakage was so huge, it is considered too politically sensitive to publish the actual savings.

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Data Warehousing and Tax Administration

• A Tax Agency is a very large, complex enterprise.

• Stove-piped legacy systems, and outdated technology are prevalent.

• Tax administrators know that their data holds great opportunity for improved mission delivery.

• Data warehousing holds the key to exploitation of data for compliance improvement and improved tax administration.

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From Ideas to Implementation How Iowa Turned a Data Warehouse Vision into Reality

Iowa Department of Revenue and FinanceTax Gap Compliance Project

Introduce performance based funding.

Data Warehouse InfrastructureIntegration of multiple data sources to support audit selection

and audit performanceDecision Making System

Provide framework to perform advanced ad-hoc and complex queries

Automated Audit Application Centralize and automate all audit activities

Interface ProgramsIntegrate operational systems

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•How many businesses are registered with IDRF, but not filing tax returns? $ 690,000

•How many employers are filing unemployment records with Workforce Development, but not

filing tax returns? $ 9,450,000•How many companies are doing business with

Iowa, but not filing tax returns? $ 365,000 •How many motels are registered and filing

hotel-motel tax, but not filing consumer use tax? $ 550,000

•Federal refunds received by individuals must be reported on the Iowa income tax return. $ 7,225,000

•Income tax return must be filed if you earn Iowa source income as a member of a partnership. $965,000

•You must file an Iowa return for the year in which you claim “federal tax paid”. $300,000

2000-2002 Optimized revenues $19,545,000

Iowa Department of Revenue and FinanceTax Gap Compliance Project

2004 Optimized Revenues are > $50M

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Teradata Tax Solutions: Proven Results

$ High Revenue

$Millions of Dollars to the Agency$ Low Risk

$100%+ Success in Meeting Projections

$Benefit Sharing Model$ Quickest Time to Results

$Revenue Begins within 6 Months$Experienced Team

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For Example:

Texas- $400+ Million since July 1998

Iowa- $50+ Million since July 2000

Sales/Use TaxCorporate/ Franchise Tax

Withholding Tax

Individual and Business Taxes

“By providing users with access to detail data

that was never before available, the Teradata-

based solution is delivering some substantial

results for the Comptroller’s office and the

residents of Texas.”

– Lisa McCormack, Area Manager, Audit Division

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$ Millions of dollars in recovered tax revenue$ Discovery of thousands of non-compliant

taxpayers$ Optimized use of enforcement resources$ Improved access to information to provide

better service on taxpayer contacts $ Less intrusion and reduced burden for

compliant citizens

Teradata Tax Solutions: Benefits

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Industry Recognition

TDWI Best Practices Award (2003)Sponsor: The Data Warehouse InstituteEnterprise Data Warehouse: Continental Airlines; sponsored by Teradata Government & Non-profit: State of Iowa Department of Revenue & Finance; sponsored by Teradata Integrating Data Marts & Data Warehouses: Bank of America; sponsored by Teradata Data Stewardship & Data Quality: AT&T Wireless Services

Technology ROI AwardsSponsor: Baseline Magazine and Nucleus ResearchHarrah’s - Grand Prize WinnerState of Iowa - Winner, Public Sector

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Teradata Tax Solutions

• Products:> Teradata Tax Warehouse 2.0> Teradata Tax Discovery Solution 2.0> Audit Component 2.0

• Services:> Revenue Opportunity Assessment > Teradata Revenue Capture Services

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• Best at Achieving Desired Results> Single view of the business for greatest accuracy, insight> Growth-enabling analytical applications > Empower more people with instant knowledge across the

enterprise> Drive revenue -- reduce costs

• Solutions that Work> Simplest to implement, manage and grow > Grow without boundaries> Most powerful technology> Most experienced

professional services that understand/master the process

The Teradata Difference:Giving You the Power to Grow

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Thank you! For more information…

Contact Rick Makos at Teradata Canada

E-mail: [email protected] site: www.teradata.com