German Health Insurance Leader BKK Wins 2007 Best Practice Award for Data Warehousing and Business Intelligence – Powered By Teradata

MUMBAI, India– 27 March 2007

Federal Association of Company Health Insurance Funds recognized by independent Business Application Research Center for “BKK InfoNet” excellence

BKK Bundesverband, the German Federal Association of Company Health Insurance Funds, has won the prestigious 2007 Best Practice Award for a Teradata-based business intelligence platform it calls the “BKK InfoNet,” according to Teradata, a division of NCR Corporation (NYSE: NCR). BKK is a large association of independent corporations which insures more than 14 million customers, and comprises about 20 percent of the German health care insurance market.

Each year during the world’s largest IT tradeshow, CeBIT, in Hannover, Germany, the independent Business Application Research Center (BARC) presents this award for the best German language Data Warehousing and Business Intelligence (BI) solution. The BKK prevailed against well-known competitors.
According to BARC officials, what tipped the scales for the world-class jury was the diversity and multiplicity of integrated data pools, the broad spectrum of BI functionality, and the solution’s flexible architecture. The solution was custom-designed for optimal performance in the statutory health insurance fund market. Within that context, the jury also placed key emphasis on the innovative use of Web services.

The solution is based on Teradata’s Enterprise Data Warehouse (EDW) technology. Conceived to enable a large, multiple-client system from the outset, the EDW integrates and

manages data from many statutory health insurance funds. Select information is then made available to authorized users for analysis and assessments. Currently, BKK InfoNet has around 1,500 registered users. About 20,000 additional users across 190 insurance fund facilities can also access the directories for business insight under detailed security measures which protect the individual privacy of members. The Teradata Warehouse was first implemented in 1997, followed by a number of expansion orders, with the most recent upgrade occurring in 2006.

The flexible data model and architecture allow changes to be made to data structures in order to respond quickly to emerging business needs including new requirements driven by health insurance fund mergers. BKK InfoNet integrates, to a significant extent in real time, data from a large number of heterogeneous sources, including pharmacies and hospitals. Data from as many as two billion claims per year are managed by the data warehouse.

According to BKK, Teradata’s EDW delivers exceptional performance in its complex, mixed workload data environment through extreme scalability, yet at minimal administrative expense. “Teradata’s data warehouse technology provides a 360-degree view of BKK performance and account data,” said Hartmut Scholz, chief information officer of BKK Bundesverband. “This transparency is the primary prerequisite in realizing economic efficiency while also enabling a high quality of service to our BKK-insured customers.”

The company has also reported that BKK Infonet provides a broad range of BI functionality, including standard and ad-hoc reporting, analytics and data mining. Through enterprise data analyses, company health insurance fund users gain insight into the success rates for doctors and hospitals as well as the effectiveness of specific therapies. BKK InfoNet also provides detailed accounting data as a basis for compiling accurate performance benchmarks to generate intelligence useful in negotiating contracts with health care providers.

According to BARC officials, the jury was impressed by the use of data mining in order to detect accounting fraud and cases of abuse. “The possibilities of using BKK InfoNet for analytical processes are remarkable and include a means for identifying fraud,” said jury chairman and BARC Managing Director Dr. Carsten Bange.

Access to data stored in the EDW is limited by a multilevel security model to guarantee privacy and keep competitive details secure. Each insurance fund staff has full access to its own data on customers and performance, but they can only access the data of other organizations in

an anonymous yet differentiated manner. Data on some 286,000 health care providers are available to all members on an equal basis.
BKK’s award-winning solution consists of a Teradata Enterprise Data Warehouse with a current capacity of 12 terabytes, Teradata Warehouse Miner, BI Query, SAS tools and COGNOS ReportNet 8.0.

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