Article

The new NCR open for business

Separation of NCR and Teradata allows companies to focus.

October 16, 2007

The name is the same, but the attitude at NCR Corp. is one of renewed excitement, say company executives at NCR headquarters in Dayton, Ohio.

 

Thanks in part to the company's spin-off of its data-warehousing business, Teradata, "the new NCR" is poised to focus squarely on self-service. In the process, the 123-year-old company that got its start in the cash register business says it expects to leave its self-service competitors in the proverbial dust.

 

"We're embarking on a journey with a bright future," said Brian Pilla, director of marketing and deployment for NCR's Financial Solutions Division. "We are going to be the dominant self-service company."

 

NCR completed its separation from Teradata on Oct. 1 through the distribution of a tax-free stock dividend to its stockholders. Because of that distribution, NCR no longer owns shares of Teradata, and Teradata now operates as an independent company. 

 

As of the first day of trading, shareholder value increased based on the combined stock value of the two companies, said NCR spokeswoman Lorraine Russell.

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"We are very pleased with the results so far and are working diligently to continue to deliver on our commitments to shareholder value," she said.

 

 The move allows both companies to succeed on their own, NCR says.

 

"By separating NCR and Teradata, we are giving birth to two high-tech companies that are focused on their specific areas," said Mel Walter, NCR's vice president of business development.

 

The move ties well with NCR's overall plans for global growth, building a more NCR-centric brand and a strong commitment to self-service, NCR executives say.

 

"Our research indicates a confirmation from our customers that the NCR brand name is very healthy and reflects our heritage of innovation and reliability," Russell said. "As we move into adjacent segments, by leveraging the knowledge and expertise that NCR has in our existing portfolio, it makes sense to also leverage the recognized NCR brand wherever appropriate."

 

The focus on self-service will bring together, NCR says, the self-service aspects of mobile devices, the Internet and automated machines, like ATMs — a strategy chief executive Bill Nuti talked about earlier this year at NCR's Self-Service Universe in Washington, D.C.

 

Consumer use of the Internet and mobile devices has forced those in the self-service industry to pay closer attention to its customers, Nuti says.  

 

"Any business, any government, any healthcare provider that does not have self-service as one of its primary delivery channels will not be competitive in the future," Nuti said at the conference. "Self-service is well on its way to becoming the consumers' channel of choice."

 

Looking at the integration of self-service channels, NCR's Walter says Internet self-service is at its height, while mobile interactions are steadily creeping upward.

 

"There has been an explosion in the number of (self-service) interactions, particularly in the retail and hospitality spaces, as consumers get online to make the purchase of their choice," Walter said. "If you track the consumers, I think you will see the intersection of (Internet, mobile and automation)."

 

The goal, Walter said, is to pull together those service channels so customers do not have to go back and forth between them, but, rather, use them seamlessly.

 

The "new self-service movement," as CEO Nuti has coined it, has been facilitated by technological advances and fueled by fundamental and lasting changes in human behavior. For consumers, self-service is all about convenience control and saving time, he said.

 

"All of these allow you to redefine the consumer experience," Nuti said.

 

And with NCR's extensive experience, the company says it expects to be at the top of customers' lists.

 

"The beauty is, we are not starting out as a new entrant with no experience, but rather leveraging our existing strengths and simply applying those in new ways to offer enhanced consumer experiences within other market segments," Russell said.