ESCA | May 21, 2007, 17:15
As part of its recent focus on offering an integrated data solution for entertainment companies, Teradata has announced the release of its first Logical Data Model (LDM) for the Media & Entertainment Industry; this data "blueprint" provides studios with a single, integrated strategy for managing all market information throughout their enterprise for a single title.
"The M&E LDM is similar to logical data modes we have successfully introduced to other industries such as telecommunications," says Teradata Vice President for its Communications, Media and Entertainment (CM&E) group, Tony Samuels. "It shows studios how they can integrate their data holistically, how they can integrate their channels, their products, their rights and royalties and their supply chain around a specific title."
A Platinum Sponsor of Entertainment Supply Chain Academy, June 27-28 in Los Angeles, Teradata will participate in the panel entitled: "Orchestrating Data Synchronization in the Supply Chain," a topic they are well versed in due to their work with both leading retailers like Wal-Mart as well as most major home video studios. However, Teradata's strategy goes well beyond "the street," as Samuels explains in a recent Q&A interview:
Q. Explain the timing for Teradata's emphasis on the entertainment business.
A. A lot of this is based on the studio's growing focus on going digital. When this happens, their whole business model will be compressed, which is perfectly aligned to what we do with building an integrated data warehouse for our customers. There will be increased pressures as well as opportunities to integrate their data and look at how to take advantage of the opportunities when they see them. As those business cycles compress it is all about who best has control of their data.
Q. Any comparisons to other industries in which you have already worked?
A. I compare it to the telecom industry. As they deregulated telecommunications, the business became more competitive; they started moving from looking at the customers as individual product relationships to single, integrated customer relationships. They didn't understand the holistic role of the customer until they integrated their data so that they could take advantage of up-sell and cross-sell opportunities. On the content creator side, they currently don't have a direct pipe to the customer -- as yet. Their customer is the retailer, the theater or the broadcaster, so they don't have a full view of a title until they integrate their data across all components.
Q. What are some of the direct benefits of this holistic approach?
A. When a studio comes out with a new release, for example, they can work with retailers to take advantage of specific opportunities. From a point-of-sale perspective they can make changes on the fly. If they understand consumer demand better, they can cross sell customers to other titles; sound track CDs, games, etc. They need to understand customer behavior to maximize content opportunities; looking for affinities is all about understanding the customer's behavior and having your supply chain ready so you can take advantage of them. The point of convergence is that we need to start putting the customer first; now that they can get the content in any means they want they have more buying power than ever before,
Q. So where does Teradata fit into this process?
A. Our job is to integrate the data in a single data warehouse and to provide the tools that allow the customer to analyze the data most effectively. Teradata has the underlying technology for database and hardware and we understand the dynamics of a vertical market, providing a suite of applications that are specific to the entire industry. In entertainment, we understand how the data flows and the key performance indicators change from creator to distributor in one Logical Data Model.
Q. How are the studios reacting to your plan?
A. We are in five of the six studios at this point and there seems to be a better understanding from the studio executives of what Teradata provides. We've learned from other vertical markets in which we have worked that the realization that integrated data helps you run your business better is actually a learning curve. At this point, we are best entrenched in the home video divisions due to our existing relationships and reputation in retail. But the lights are starting to go on throughout the studios at this point. They are seeing the benefits from the home video divisions. It is a work in progress and we are quickly seeing movement.
Q. You will be discussing 'data synchronization' at ESCA, what are the issues here?
A. There is often a breakdown in communication between the retailer and their vendors when both partners aren't working well together as effectively as they could be. There needs to be more seamless distribution of data from the retailers back to the studios. I think because of our presence at both ends of the industry we can help facilitate this process and improve data synchronization between the studios and their retail partners.
Q. What will the impact of digital distribution be on the retailer and the home video division/retail relationship?
A. The retailers are also trying to get into the digital distribution business. By understanding the preferences of customers and understanding how the movies are being viewed in theatres as well as being downloaded, they will better understand the full customer interest in a title, resulting in them being able to sell them the game, merchandise, or maybe even a ring tone from the movie. With the onset of digital content, the opportunities are endless. People who can integrate the data -- whether they are retailers or studios -- and who can access the data most effectively are going to be the true winners. Entertainment is starting to become a data-driven industry. Our job is to help make that happen so that entertainment companies can take advantage of the new opportunities presented to them in this digital age.
"The M&E LDM is similar to logical data modes we have successfully introduced to other industries such as telecommunications," says Teradata Vice President for its Communications, Media and Entertainment (CM&E) group, Tony Samuels. "It shows studios how they can integrate their data holistically, how they can integrate their channels, their products, their rights and royalties and their supply chain around a specific title."
A Platinum Sponsor of Entertainment Supply Chain Academy, June 27-28 in Los Angeles, Teradata will participate in the panel entitled: "Orchestrating Data Synchronization in the Supply Chain," a topic they are well versed in due to their work with both leading retailers like Wal-Mart as well as most major home video studios. However, Teradata's strategy goes well beyond "the street," as Samuels explains in a recent Q&A interview:
Q. Explain the timing for Teradata's emphasis on the entertainment business.
A. A lot of this is based on the studio's growing focus on going digital. When this happens, their whole business model will be compressed, which is perfectly aligned to what we do with building an integrated data warehouse for our customers. There will be increased pressures as well as opportunities to integrate their data and look at how to take advantage of the opportunities when they see them. As those business cycles compress it is all about who best has control of their data.
Q. Any comparisons to other industries in which you have already worked?
A. I compare it to the telecom industry. As they deregulated telecommunications, the business became more competitive; they started moving from looking at the customers as individual product relationships to single, integrated customer relationships. They didn't understand the holistic role of the customer until they integrated their data so that they could take advantage of up-sell and cross-sell opportunities. On the content creator side, they currently don't have a direct pipe to the customer -- as yet. Their customer is the retailer, the theater or the broadcaster, so they don't have a full view of a title until they integrate their data across all components.
Q. What are some of the direct benefits of this holistic approach?
A. When a studio comes out with a new release, for example, they can work with retailers to take advantage of specific opportunities. From a point-of-sale perspective they can make changes on the fly. If they understand consumer demand better, they can cross sell customers to other titles; sound track CDs, games, etc. They need to understand customer behavior to maximize content opportunities; looking for affinities is all about understanding the customer's behavior and having your supply chain ready so you can take advantage of them. The point of convergence is that we need to start putting the customer first; now that they can get the content in any means they want they have more buying power than ever before,
Q. So where does Teradata fit into this process?
A. Our job is to integrate the data in a single data warehouse and to provide the tools that allow the customer to analyze the data most effectively. Teradata has the underlying technology for database and hardware and we understand the dynamics of a vertical market, providing a suite of applications that are specific to the entire industry. In entertainment, we understand how the data flows and the key performance indicators change from creator to distributor in one Logical Data Model.
Q. How are the studios reacting to your plan?
A. We are in five of the six studios at this point and there seems to be a better understanding from the studio executives of what Teradata provides. We've learned from other vertical markets in which we have worked that the realization that integrated data helps you run your business better is actually a learning curve. At this point, we are best entrenched in the home video divisions due to our existing relationships and reputation in retail. But the lights are starting to go on throughout the studios at this point. They are seeing the benefits from the home video divisions. It is a work in progress and we are quickly seeing movement.
Q. You will be discussing 'data synchronization' at ESCA, what are the issues here?
A. There is often a breakdown in communication between the retailer and their vendors when both partners aren't working well together as effectively as they could be. There needs to be more seamless distribution of data from the retailers back to the studios. I think because of our presence at both ends of the industry we can help facilitate this process and improve data synchronization between the studios and their retail partners.
Q. What will the impact of digital distribution be on the retailer and the home video division/retail relationship?
A. The retailers are also trying to get into the digital distribution business. By understanding the preferences of customers and understanding how the movies are being viewed in theatres as well as being downloaded, they will better understand the full customer interest in a title, resulting in them being able to sell them the game, merchandise, or maybe even a ring tone from the movie. With the onset of digital content, the opportunities are endless. People who can integrate the data -- whether they are retailers or studios -- and who can access the data most effectively are going to be the true winners. Entertainment is starting to become a data-driven industry. Our job is to help make that happen so that entertainment companies can take advantage of the new opportunities presented to them in this digital age.