Massive ROI Attributed to Data Integration and Analytics

New independent research commissioned by Informatica Corporation, a leading provider of eBusiness analytic software, indicates that data integration enables rapid and dramatic return on investment (ROI) across the enterprise value chain. According to the study completed in February 2001 by Globalinkage, the substantial ROI experienced by Informatica customers is the result of enhanced business insight that drives increased revenues, improved operational performance and competitive responsiveness. The research was based on interviews with 134 Informatica customers and detailed functional value assessments.

"The cost/benefit analyses performed by a number of Informatica customers point to improved decision making as the overwhelming strategic value of data integration," said Gaye Clemson, principal of Globalinkage. "This decision making results in faster delivery of products to market, measurably improved operational efficiency and customer satisfaction. Major tactical benefits include lower development costs and identification of new revenue streams."

Measurable performance improvements were experienced across a broad range of enterprise functions -- from customer relationship management (CRM) to operational planning to supply chain management. For example, according to information gathered by Globalinkage:

• A leading distributor of surgical supplies experienced a 15 percent revenue increase and $44 million in savings through better analysis of customer pricing and sales data, as well as through higher productivity from the IT staff; credits Informatica data integration as being instrumental in attracting new customers and retaining existing ones
• A major airline generated $35 million in new revenue through better-targeted direct marketing. The company also reduced annual fuel costs by $10 to $15 million
• A major computer storage manufacturer leveraged better insight to achieve a 90 percent coverage level in its stock reserves for handling returns; rollout costs were recovered within two months
• A leading media company saw a $10 million increase in revenue, a 95 percent reduction in time and labor to generate customer intelligence reports and a 60 percent increase in data quality

"Companies face a wide range of challenges as they attempt to take their business performance to the next level," said Bart Foster, senior vice president of worldwide marketing at Informatica. "These ROI results illustrate how consistent access to information across the enterprise drive significant business value in almost any area of any company in any industry."

Globalinkage, a California-based consultancy, analyzed qualitative and quantitative information on 134 Informatica customers drawn from detailed questionnaire and Informatica database sources. All are users of Informatica PowerCenter data integration platform for integrating and analyzing huge amounts of data. Represented industries included financial services, high technology and Internet, telecommunications, manufacturing, utilities, services, and transportation. Of the projects studied, 75 percent had an enterprise focus with CRM, profitability analysis, eBusiness, customer activity and marketing effectiveness being the key functional areas.

Additional information on business ROI including a recording of a panel discussion with Informatica customers from Merrill Lynch, CNET, and Gateway is available online at www.informatica.com/roitco. The Web seminar was moderated by Gerald Horkan, vice president of Booz, Allen & Hamilton, a leading management and technology consulting firm on Tuesday, March 6, 2001.

The ROI results experienced by Informatica customers mentioned in this release may not be applicable for all Informatica customers. Actual ROI results may vary for your company.

About Informatica

Informatica provides eBusiness analytic software that enables companies to leverage business insight for competitive advantage. More than 1,100 global customers, including over half of the Fortune 100, leverage the Informatica Insight Network to integrate, analyze and personalize critical business information to improve business performance and responsiveness across the entire business value chain. Informatica products include a comprehensive family of analytic applications, the industry's most powerful data integration platform and a wide range of supporting services and partnerships. The company's list of leading customers includes 3Com, AMD, American Airlines, BMW, Boeing, Borders Group, Chevron, Cisco, CNET, Deutsche Bank, eBay, General Electric, Hewlett-Packard, Inktomi, Merck, Merrill Lynch, MetLife, Motorola, Mutual of Omaha, Philips, Polo Ralph Lauren, Sprint and UBS. For more information, call 1-800-970-1179, or visit the Informatica Web site at www.informatica.com.

Contact Darlene Perry, Informatica Corp, 650-687-6697, dperry@informatica.com.