Developing Crisis in Executive Decision-Making
23 September, 2003
Survey of Senior Executives Shows Developing Crisis in Decision-Making
Second annual Teradata report on enterprise decision-making reveals trend of executives making more complex decisions in less time, flooded by data
SEATTLE, Washington – A crisis in decision-making is developing, according to a survey of senior executives at large corporations queried by Teradata, a division of NCR Corporation (NYSE:NCR).
Over half of top-tier executives at top U.S. companies – three-quarters with annual revenues exceeding $1 billion – said that decisions they make are more complex this year than last, and 73 percent reported that the number of daily decisions has increased. At the same time, 59 percent say that available data has doubled or tripled in the past year, and 53 percent say there is less time to make decisions. The findings of the second annual decision-making survey by Teradata were released in Seattle today at the 17th annual Teradata PARTNERS User Group Conference and Expo, the world’s largest conference on data warehousing and analytics.
According to Julian Beavis, Teradata vice president for New Zealand, Australia and South East Asia, “Our 2002 and 2003 surveys of senior executives show worsening trends. Executives are deluged with data and decision-making is deteriorating as a result. They know that the cost of poor decision-making is high, with over 80 percent saying that the top three casualties of poor decision-making are profits, revenue and company reputation.
“The overwhelming majority, over 80 percent, recognise the benefits of enterprise data warehousing (EDW) to make long-term growth, company productivity and customer service,” he continued.
Eighty-six percent in both studies said they typically reference three or more sources for decisions they make. Only six percent say they always get answers to their questions in a timely manner.
Thirty-four percent said they’re working harder and longer to deal with the increase in data. "Working harder is not the answer," said Mr Beavis. “According to the survey, the top three factors for avoiding poor decision-making are clear corporate vision, integration and sharing of information across the enterprise and speed of accessing necessary information.”
“Our respondents also said that key decisions are increasingly being made at all levels of the organisation – important decisions that can affect corporate profits, customer loyalty, and even supply chain efficiency," said Mr Beavis. "Getting the right tools in the hands of all decision-makers empowers the entire organisation. Companies need solutions that deliver the right information at the right time to make the right decisions. An Enterprise Data Warehouse is the tool to empowerment, but it takes strong executive leadership to the cut through corporate politics and other barriers to build a more equitable and democratic decision-making environment.”
About The Teradata 2003-2004 Report on
The Teradata study was fielded by BuzzBack online market research between July 21 and August 5, 2003, querying 158 executives. Fifty-nine percent are vice presidents or hold higher titles including chief executive officer, chief operating officer, chief information or technology officer and chief marketing officer. Seventy-four percent respondents work at companies with annual revenues of exceeding $1 billion.
About Teradata Division
Teradata, a division of NCR Corporation
(NYSE: NCR), is the global leader in enterprise data
warehousing and enterprise analytic technologies and
services. New Zealand customers include The Warehouse, BNZ,
Progressive Enterprises and Westpac. For more information,
About NCR Corporation
NCR Corporation (NYSE: NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR’s ATMs, retail systems, Teradata® data warehouses and IT services provide Relationship Technology™ solutions that maximise the value of customer interactions. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 29,600 people worldwide.
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