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NCR Corp.
(937)
445-5000
1700
South Patterson Blvd.
Dayton, OH 45479
www.ncr.com
Sales
$5.6
billion
Business Description
NCR Corporation and its subsidiaries (NCR or the Company also referred to as
“we”, “us” or “our”) provide technology and services that help businesses
interact, connect and relate with their customers.
Businesses
Data Warehousing solutions transform information into knowledge, permitting
businesses to respond with programs designed to improve customer
acquisition, retention and profitability. Through the Company’s presence at
customer interaction points, such as automated-teller machines (ATMs),
retail point-of-sale (POS) workstations, and self-checkout systems,
Financial Self Service and Retail Store Automation solutions enable
companies to capture and process transaction-based information. Services are
an essential component of each of NCR’s complete offerings, and the Customer
Services division provides support services primarily to NCR solution
customers.
Industries Served
NCR provides specific solutions for the retail and financial industries, and
through the Data Warehousing and Customer Services businesses, the Company
provides solutions for additional industries such as telecommunications,
transportation, insurance, utilities and electronic commerce, as well as
consumer goods manufacturers and government entities. NCR’s solutions are
built on a foundation of long-established industry knowledge and consulting
expertise, value-adding software and hardware technology, global customer
support services, and a complete line of business consumables and specialty
media products.
Company History
NCR was originally incorporated in 1884 and was a publicly traded company on
the New York Stock Exchange prior to its merger with a wholly-owned
subsidiary of AT&T Corp. (AT&T) on September 19, 1991. Effective December
31, 1996, AT&T distributed to its stockholders all of its interest in NCR
(the Distribution) on the basis of one share of NCR common stock for each 16
shares of AT&T common stock. The Distribution resulted in approximately
101.4 million shares of NCR common stock outstanding as of December 31,
1996. NCR common stock is listed on the New York Stock Exchange and trades
under the symbol “NCR”.
Operating Segments
NCR operates in the information technology industry and categorizes its
operations into seven reportable segments: Data Warehousing solutions,
Financial Self Service solutions, Retail Store Automation solutions,
Customer Services, Systemedia, Payment and Imaging solutions, and Other,
each of which is described below. Each solution generally combines hardware,
software, and professional and installation-related services.
Revenue by similar classes of products and services is reported by segment
in Item 8 of Part II of this Form 10-K report as part of Note 12 of Notes to
Consolidated Financial Statements, “Segment Information and Concentrations,”
and is incorporated herein by reference.
Geographic information is reported in Item 8 of Part II of this Form 10-K
report as part of Note 12 of Notes to Consolidated Financial Statements,
“Segment Information and Concentrations,” and is incorporated herein by
reference.
Data Warehousing Segment
Products and Services
NCR provides data warehousing solutions, combining the Teradata brand name
hardware, software (i.e., Teradata database, data mining, and application
software), professional consulting services, and customer support services.
Our data warehousing solutions also include third-party products and
services from leading technology and service partners.
NCR’s Teradata Data Warehousing solutions provide our customers with a
single, accurate view of their business to drive, better faster decisions. A
single analytical view of the business helps companies gain competitive
advantage and grow, by enabling faster, deeper analysis of detailed data
from across the organization – customer, financial and operational data –
and the delivery of more accurate, insightful and timely information to
decision-makers when and where they need it.
Teradata products and services are focused on providing customers with
optimum price/performance at minimum total cost of ownership. Our
centralized approach to analytics ensures customers get greater insight with
less duplication of infrastructure. Our data warehousing technologies
provide a high level of scalability, availability and manageability for both
repetitive and ad hoc queries in a decision support environment. Our
professional service consultants combine a proven methodology with years of
hands-on experience to ensure successful delivery of customers’ data
warehousing environments. Our customer services organization provides
best-in-class maintenance and support offers, to make sure customers achieve
and sustain the availability levels they require.
Target Markets and Distribution Channels
NCR’s Data Warehousing solutions are focused around many major industries,
including retail, financial, telecommunications, travel, transportation,
insurance, and manufacturing, as well as government entities.
Teradata Data Warehousing solutions are delivered through a combination of
direct and indirect channels. In recent years, over 90% of NCR’s revenue
from the Data Warehousing segment has been generated by the Company’s direct
sales force. The remaining revenues have been generated from the indirect
channel and through alliances with value-added resellers, distributors and
original equipment manufacturers.
Competition
NCR faces competition in the industries served by Data Warehousing in all
geographic areas where it operates. NCR believes that key factors used to
evaluate competitors in these markets are: vendor data warehousing
experience and customer references; product quality; performance and
scalability; support and professional service capabilities; industry
knowledge; and total cost of ownership. NCR offers unique advantages in each
of these categories.
In the markets in which NCR’s Teradata Data Warehousing competes, customers
require complete solutions including applications, database software, system
software, hardware, professional services, systems integration skills and
ongoing solution support. Many competitors offer one or two of these
components, but NCR believes it is one of few companies that can provide
complete, integrated, and optimized data warehousing solutions that address
all of these customer requirements. NCR’s primary competitors include
companies such as International Business Machines (IBM) and Oracle
Corporation.
Financial Self Service Segment
Products and Services
Financial Self Service provides self service devices, which include ATMs,
cash dispensers, and services and software solutions, including the APTRA™
application suite, to financial institutions and retailers. Financial Self
Service solutions are designed to quickly and reliably process high volumes
of consumer transactions and incorporate advanced features such as web
enablement, automated check cashing/deposit, automated cash deposit, bill
payment and the dispensing of non-cash items. Financial Self Service
solutions enable businesses to reduce costs and generate new revenue
streams, as well as enhance customer loyalty.
Target Markets and Distribution Channels
NCR’s Financial Self Service solutions primarily serve the financial
services industry with particular focus on retail banking which includes
traditional providers of consumer banking and financial services. Financial
Self Service solutions also serve the retail markets through convenience
banking products for retailers designed to complement their core businesses.
Financial Self Service solutions’ customers are located throughout the world
in both established and emerging markets.
NCR has historically distributed most of its Financial Self Service products
and services through NCR’s direct sales channel, although certain revenues
are derived through sales by distributors. Approximately 75% of the
traditional Financial Self Service product and service sales were sold by
the direct sales force; the remainder was sold through indirect channels.
Competition
Financial Self Service faces competition in the financial services industry
in all geographic areas where it operates. The primary factors of
competition can vary, but typically include: quality of the solutions or
products; total cost of ownership; industry knowledge of the vendor; the
vendor’s ability to provide and support a total end-to-end solution; the
vendor’s ability to integrate new and existing systems; the fit of the
vendor’s strategic vision with the customer’s strategic direction; and the
quality of the vendor’s support and consulting services. NCR’s primary
competitors are Diebold, Inc. and Wincor Nixdorf Gmbh & Co. (Wincor
Nixdorf), but other competitors exist and vary by product and service
offering, as well as geographic area.
Retail Store Automation Segment
Products and Services
Retail Store Automation provides retail-oriented technologies such as POS
terminals, bar-code scanners, and software, as well as innovative products
such as our self-checkout systems, to retailers worldwide. Combining our
retail industry expertise, software and hardware technologies, and
implementation and store performance consulting services, our Retail Store
Automation solutions are designed to enable cost reductions and improve
retailer operational efficiency while increasing customer satisfaction for
retail customers.
Target Markets and Distribution Channels
Primarily serving the retail industry, NCR delivers Retail Store Automation
solutions for the general merchandise, food and drug, and hospitality
segments. The general merchandise segment includes department stores,
specialty retailers, mass merchandisers and catalog stores. The food and
drug segment includes supermarkets, hypermarkets, grocery, drug, wholesalers
and convenience stores. The hospitality segment includes fast food/quick
service, other restaurants, and lodging.
NCR’s Retail Store Automation solutions are offered through a combination of
direct and indirect channels. The majority (about 90% in recent years) of
solutions are sold by NCR’s direct sales force, with the remainder sold
through alliances with value-added resellers, distributors and dealers. NCR
provides supporting services, including collateral sales materials, sales
leads, porting facilities and marketing programs to the sales channel.
Competition
NCR faces strong competition in the retail industry in all geographic areas
where it operates. The Company believes that key competitive factors can
vary by geographic area but typically include quality of the solutions or
products, total cost of ownership, industry knowledge of the vendor, and
knowledge, experience and quality of the vendor’s consulting, deployment and
support services. NCR’s competitors vary by market segment, product, service
offering and geographic area, and include IBM, Dell Computer Corporation,
Wincor Nixdorf, Fujitsu, and Optimal Robotics Corp., among others.
Customer Services
Services
Customer Services are an essential component of NCR’s complete solution
offerings. NCR’s Customer Services division provides maintenance and support
services for NCR’s solutions as well as several third party companies. The
Customer Services segment provides other services including consulting, site
design, staging and implementation, and complete systems management.
As a result of supporting NCR’s solutions around the world, Customer
Services has established a competitive service delivery capability, and has
leveraged this global presence and experience to develop and deliver a
comprehensive portfolio of information technology (IT) infrastructure
services to businesses in other industries. These high availability services
focus on the vital systems, networks, software and security that comprise
the IT infrastructure of today’s businesses, and include operations
management, consulting, deployment and maintenance. Customer Services
provides these services directly to global businesses as well as through
partnerships with leading technology, network and systems suppliers
including Cisco Systems, Dell Computer Corporation, Sun Microsystems and
others.
Target Markets and Distribution Channels
Customer Services provides service on NCR solutions, as well as multi-vendor
technologies used in these segments – for example, IBM retail technologies
and Diebold self-service products. Customer Services also provides services
for third-party technology manufacturers and large multi-national companies
who value and leverage NCR’s global multi-vendor service capability.
The primary sales channel for Customer Services is NCR’s solution sales
teams, which exist in all NCR divisions. Customer Services provides these
services directly to end customers. NCR also provides networking services to
a wide range of customers through partnerships with leading technology
suppliers including Cisco Systems, Sun Microsystems, and others.
Competition
NCR faces competition for services from other technology providers, as well
as from service-only firms, in all geographies where it operates. The
primary competitive factors are the same that impact NCR’s other business
segments. In addition, delays and declines in technology spending are
causing intense competition for services and support contracts. Also, global
technology providers are becoming more focused on services as a core
business strategy. Risks include continued price erosion and service
commoditization. To counter these issues, Customer Services is aggressively
pursuing managed service relationships with its key customers. Longer term
managed service arrangements serve to improve the efficiency and performance
of the customer’s business, and increase the strategic and financial
importance of its relationship with NCR.
The primary Customer Service competitors are the companies identified in
NCR’s other solutions. Key competitors encountered across all NCR solutions
include IBM and Electronic Data Systems (EDS). NCR also competes with a
range of smaller regional and local service companies that differ by
geography.
Systemedia
Products
Systemedia develops, produces and markets a complete line of printer
consumables including paper rolls for ATMs and POS workstations, inkjet and
laser printer supplies, thermal transfer ribbons, labels, ink ribbons, laser
documents, business forms and retail office products. Systemedia products
are designed to reduce paper-related failures and enable businesses to
improve transaction accuracy while reducing overall costs.
Target Markets and Distribution Channels
The major industry segments targeted by Systemedia include general
merchandise, food and drug, hospitality, financial services and consumer
goods manufacturing. Systemedia has a direct sales force in 26 countries
focused on providing solutions to major accounts. In addition, Systemedia
products are sold through office product resellers, value-added resellers,
telemarketing and the Internet.
Competition
Competition in the consumable and media solutions business is significant
and varies by geographic area and product group. The primary areas of
competitive differentiation are typically quality, logistics and supply
chain management expertise, and total cost of ownership. While price is
always a factor, Systemedia focuses on total cost of ownership for all of
its products. Total cost of ownership takes into account not only the per
unit cost of the media, but also service, usage and support costs over the
life of the system.
Payment and Imaging Segment
Products and Services
Payment and Imaging provides end-to-end solutions for both traditional
paper-based and image-based check and item processing. Payment and Imaging
solutions utilize advanced image recognition and workflow technologies to
automate item processing, helping financial institutions increase efficiency
and reduce operating costs. Consisting of hardware, software, and consulting
and support services, our comprehensive Payment and Imaging solutions enable
check and item-based transactions to be digitally captured, processed and
retained within a flexible, scalable environment.
Target Markets and Distribution Channels
NCR’s Payment and Imaging solutions primarily serve the financial services
industry worldwide with a major focus on banks. NCR has historically
distributed most of its Payment and Imaging products and services through
NCR’s direct sales channel, although certain revenues are derived through
sales by value-added resellers, and distributors. Approximately two-thirds
of the traditional Payment and Imaging product sales in recent years were
sold by the direct sales force; the remainder was sold through indirect
channels.
Competition
NCR faces competition in the financial services industry in all geographic
areas where it operates. The primary areas of competition can vary, but
typically include: quality of the solutions or products; total cost of
ownership; industry knowledge; the vendor’s ability to provide and support a
total end-to-end solution; the vendor’s ability to integrate new and
existing systems; the fit of the vendor’s strategic vision with the
customer’s strategic direction; and the quality of the vendor’s support and
consulting services. NCR’s competitors vary by product, service offering and
geographic area, and include IBM and Unisys Corporation, among others.
Data Processing Companies in the Directory
Affiliated Computer Services
Bank of New York
BISYS
Ceridian
DST Systems
EquiServe
Fiserv
NCR
Metavante
SunGard Data Systems
WebMD
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