State of Michigan Realizing ROI of $1Million a Day with Teradata

Published on January 9, 2012 in Computer Software, Internet, Technology


Michigan relies on Teradata to manage and analyze its data – with benefits to state, taxpayers, employees and the state’s vulnerable population

LANSING, Mich. (January 09, 2012) –  The State of Michigan is setting an example for all state governments on the benefits of sharing data across agencies. Today, 10,000 users across 21 agencies are delivering better service to citizens and reducing costs traditionally borne by taxpayers by drawing new insights from a single Integrated Data Warehouse (IDW). By integrating its data, Michigan is also realizing one of the highest returns on any investment in a Teradata data warehouse in recent history – thanks to the innovative approach of its Data Operations team. The announcement made today by Teradata Corporation (NYSE: TDC), the world’s leading analytic data solutions company, is supported by a new video posted to YouTube.

The state’s Director of Data Center Operations, Carol Sherman, first reported the ROI in a session at a Teradata PARTNERS User Group conference in October. The ROI figure, one million dollars a day, translates to $41,667 dollars an hour or about $700 a minute. That’s how much and how fast the state of Michigan has benefited by integrating and centralizing much of its data in a Teradata integrated data warehouse (IDW).

“While we estimate that we are saving a million dollars a day using our data warehouse, this reflects return from across just two departments, the Department of Community Health and the Department of Human Services.  The other agencies using the IDW are also gaining many intangible and unmeasured benefits,” said Sherman. “We’ve created an innovative solution for state government.  Our employees have the information they need to deliver true government technology value, and Michigan’s data warehouse is a critical resource that has been, and will continue to be, a benefit to the state’s government and its citizens.”

Previously, the state IT team and users in Michigan were trying to manage and use data stored in hundreds of separate locations, with no centralized view across agencies – resulting in added costs, limited visibility, duplication of efforts, and missed opportunities. But this quickly changed when Michigan’s data center managers centralized the data used to support multiple state programs. IDW insights include: detecting Medicaid fraud as it is happening and stopping it, improving personal healthcare outcomes such as dramatically reducing lead poisoning among small children, connecting individual crimes committed across jurisdictions, better matching of foster children with the ‘best fit’ families, allocating food and family benefits with more accuracy, and a long, detailed list of other benefits from collaboration between agencies driven by Michigan’s shared view of integrated data.

Looking to the future, Michigan’s IDW will serve as a critical component of the State’s Health Information Exchange, with development already underway.  Further opportunities exist to reinvigorate the State’s economy through the IDW by using value-based decision making across additional agencies and departments including treasury, the court system, corrections, state police, licensing, plus state and natural resources among others.

“If every state government would develop a big data analytics strategy and implement it as the state of Michigan has, just imagine how much money could be saved – and used to more effectively and quickly improve the quality of government for its citizens,” said David Scott, vice president of Teradata Government Systems. “In addition to this great example in Michigan, Teradata systems are doing much more to help state governments work through the many fiscal challenges they face. For example, seven states, led by the State of Texas, have used Teradata’s Tax Compliance Solution to collectively recover more than $1.6 billion dollars in additional tax revenue.”

Relevant news links

  • State of Michigan saving a million a day: new YouTube video
  • State tax recovery driven by Teradata – article from the WSJ
  • Teradata Government industry information web page
  • Report to the President: Every federal agency needs a big data strategy

About Teradata

Teradata Corporation (NYSE: TDC) is the world’s leading analytic data solutions company focused on integrated data warehousing, big data analytics, and business applications. Teradata’s innovative products and services deliver integration and insight to empower organizations to make the best decisions possible and achieve competitive advantage.  Visit for details.

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Source: Teradata

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