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Education
former credit card guys doing this,
Most cost reduction companies are non-credit so they know what they are talking
card processing entities that perform about [vs.] the company in the
previous example."
independent audits of merchant accounts. 3. Data storage
As the network of intelligent
company's back-office systems (e.g., consultant and made some minor machines continues to grow, there
that customer's purchase history) to reductions in our rates and also will be an increased need for data
give you a dynamic and robust un- helped [the merchant] uncover some storage. In The CEO's Perfect Storm:
derstanding of how to sell, service, additional cost savings related to Demographics, Data, and Devices
and market to that customer." interchange qualification in a new Change Everything, Oracle Corp.
e-commerce venture they had just
2. Cost reduction analysis launched. President Mark V. Hurd wrote, "As
big as today's data-storage numbers
Cost reduction consulting is a are, just wait until this phenomenon
growing segment of merchant "[The merchant] first met with me called the Internet of Things starts
services. Most cost reduction and then called the consultant in. to kick in, and we go from 8 billion
companies are non-credit card I went over our analysis with the or 9 billion devices connected to the
processing entities that perform consultant, and the consultant on Internet today, to 40 billion or 50
independent audits of merchant the spot agreed to waive their fee billion Internet-connected devices a
accounts. While fee structures vary, 100 percent and walk away from few years from now.
most are compensated on the savings the account. Since that time, the
they generate. consultant has contacted us a few "Everything from warehouse pal-
times with referrals for clients of lets to medical devices to pets and
Anand Goel of Atlanta-based theirs whose incumbent provider household appliances – not to men-
Optimized Payments Consulting was not willing to negotiate." tion clothing and tools and plants
summarized the objectives of and swimming pools – will be tied
applying analytics to payments: Forum member Steve Norell admired into the Internet, streaming huge vol-
the cost reduction model. "I have had umes of data about all sorts of things.
personal experience with a major
• Proactively identify prob- company that has been doing this for "Here's why all of this is so important:
lems/trends and apply cor- a long time," he wrote. "The first and companies that can deploy new data-
rective measures before they smartest thing they do is only go after storage technologies will be able
become issues. large and major volume accounts to transform this data and device
• Monitor primary cost such as Colleges/Universities. They explosion from runaway expenses
drivers. then put the [merchant] out to bid to to sources of enormously valuable
• Understand costs that can be companies like [ChasePaymentech, insights and raw materials for new
FDR, Elavon,] all direct. The bids
controlled and managed. start at 5 [basis points] over cost and products and services, new and
• Understand effective costs. [go] lower still. This allows them to
• Drive/influence customers to get the greatest savings and earns What is the IOT?
lower cost options. them a much larger payday for their Michael Kassner wrote in
50 percent [residual, which they take
• Identify best practices in for 36 months]. "Why experts are nervous
areas that can be applied about the Internet of Things,"
throughout. "I think they are genius [so much posted at www.techrepublic.
so] that I am considering doing this com, that many experts agree
Unlike competitor merchant state- myself. Look at the benefits. 1. No with the SAP AG definition
ment analysis, the aim of most cost more having to take service calls of the Internet of Things: "A
reduction companies is not to get the from [merchants] that want you to world where physical objects
merchant to change processors. Stud- jump to their every need. 2. No [need are seamlessly integrated into
ies have shown that most merchants to change] processors, provided the the information network, and
remain with incumbent processors current one meets the pricing you where physical objects can
after these firms have completed are requesting. 3. You get to enjoy become active participants in
their due diligence and made specific listening to the utter BS that most business processes. Services
cost-savings recommendations. uneducated MLSs try to spew and are available to interact with
then poke holes in it. The list goes on. these 'smart objects' over
In a recent MLS Forum discussion the Internet, query, and
www.paymentlogistics.com wrote, "It sure beats where [we've all been change their state and any
"We did our own review prior to ever headed] in the last several years. And information associated with
speaking with the [cost reduction] for the record, there are quite a few them."
48
former credit card guys doing this,
Most cost reduction companies are non-credit so they know what they are talking
card processing entities that perform about [vs.] the company in the
previous example."
independent audits of merchant accounts. 3. Data storage
As the network of intelligent
company's back-office systems (e.g., consultant and made some minor machines continues to grow, there
that customer's purchase history) to reductions in our rates and also will be an increased need for data
give you a dynamic and robust un- helped [the merchant] uncover some storage. In The CEO's Perfect Storm:
derstanding of how to sell, service, additional cost savings related to Demographics, Data, and Devices
and market to that customer." interchange qualification in a new Change Everything, Oracle Corp.
e-commerce venture they had just
2. Cost reduction analysis launched. President Mark V. Hurd wrote, "As
big as today's data-storage numbers
Cost reduction consulting is a are, just wait until this phenomenon
growing segment of merchant "[The merchant] first met with me called the Internet of Things starts
services. Most cost reduction and then called the consultant in. to kick in, and we go from 8 billion
companies are non-credit card I went over our analysis with the or 9 billion devices connected to the
processing entities that perform consultant, and the consultant on Internet today, to 40 billion or 50
independent audits of merchant the spot agreed to waive their fee billion Internet-connected devices a
accounts. While fee structures vary, 100 percent and walk away from few years from now.
most are compensated on the savings the account. Since that time, the
they generate. consultant has contacted us a few "Everything from warehouse pal-
times with referrals for clients of lets to medical devices to pets and
Anand Goel of Atlanta-based theirs whose incumbent provider household appliances – not to men-
Optimized Payments Consulting was not willing to negotiate." tion clothing and tools and plants
summarized the objectives of and swimming pools – will be tied
applying analytics to payments: Forum member Steve Norell admired into the Internet, streaming huge vol-
the cost reduction model. "I have had umes of data about all sorts of things.
personal experience with a major
• Proactively identify prob- company that has been doing this for "Here's why all of this is so important:
lems/trends and apply cor- a long time," he wrote. "The first and companies that can deploy new data-
rective measures before they smartest thing they do is only go after storage technologies will be able
become issues. large and major volume accounts to transform this data and device
• Monitor primary cost such as Colleges/Universities. They explosion from runaway expenses
drivers. then put the [merchant] out to bid to to sources of enormously valuable
• Understand costs that can be companies like [ChasePaymentech, insights and raw materials for new
FDR, Elavon,] all direct. The bids
controlled and managed. start at 5 [basis points] over cost and products and services, new and
• Understand effective costs. [go] lower still. This allows them to
• Drive/influence customers to get the greatest savings and earns What is the IOT?
lower cost options. them a much larger payday for their Michael Kassner wrote in
50 percent [residual, which they take
• Identify best practices in for 36 months]. "Why experts are nervous
areas that can be applied about the Internet of Things,"
throughout. "I think they are genius [so much posted at www.techrepublic.
so] that I am considering doing this com, that many experts agree
Unlike competitor merchant state- myself. Look at the benefits. 1. No with the SAP AG definition
ment analysis, the aim of most cost more having to take service calls of the Internet of Things: "A
reduction companies is not to get the from [merchants] that want you to world where physical objects
merchant to change processors. Stud- jump to their every need. 2. No [need are seamlessly integrated into
ies have shown that most merchants to change] processors, provided the the information network, and
remain with incumbent processors current one meets the pricing you where physical objects can
after these firms have completed are requesting. 3. You get to enjoy become active participants in
their due diligence and made specific listening to the utter BS that most business processes. Services
cost-savings recommendations. uneducated MLSs try to spew and are available to interact with
then poke holes in it. The list goes on. these 'smart objects' over
In a recent MLS Forum discussion the Internet, query, and
www.paymentlogistics.com wrote, "It sure beats where [we've all been change their state and any
"We did our own review prior to ever headed] in the last several years. And information associated with
speaking with the [cost reduction] for the record, there are quite a few them."
48
