Oracle Customer Success—Teraoka System Co., Ltd.

Teraoka System Processes Batches in 30 Minutes Instead of Overnight, Enhances User Satisfaction, and Achieves ROI in One Year with Engineered System

Thanks to Oracle Exadata and Oracle Advanced Compression, we gained a high performing, scalable, and cost- effective cloud-based store management system that could support our business expansion and improve user satisfaction. With Oracle, we processed batches in 30 minutes, generated faster analysis reports, ensured non-stop business operations, and achieved return on investment in just one year.

— Satoru Sugiyama, Director, Application Service Provider Division, Teraoka System Co., Ltd.

Established in 1965, Teraoka System Co., Ltd. sells and maintains point of sale (POS) systems for Teraoka Seiko Co., Ltd., a global manufacturer of measuring devices. In 2003, Teraoka System launched a cloud-based store management system that includes POS features for food-related specialty stores and enables users to generate real-time ordering and sales analysis. With more than 12,000 POS terminals installed across the country and users from 1,000 companies and 4,000 affiliated stores, Teraoka System looks toward expansion as the company is the only cloud service provider for comprehensive store management in Japan.

Business Challenge

Improve the performance and scalability of store management system to enable food retailers to generate faster analysis reports, such as sales revenue and food inventory, and support business growth
Ensure high system availability for the POS system and eliminate the need to suspend service even during maintenance period to improve user convenience and increase sales opportunities for food retailers

Increase storage capacity to support exponential growth of POS transactions and minimize impact to store management system performance
Enable IT staff to easily detect and resolve system errors and reduce operation workload

Processed batches for updating and calculating consumption tax for POS transactions in approximately 30 minutes instead of overnight, enabling retail stores to rapidly analyze sales reports and increase business opportunities thanks to Oracle Exadata Database Machine’s InfiniBand technology
Enhanced user satisfaction by using Oracle Exadata’s architecture for database servers and storage servers to reduce CPU utilization rate from 90% during peak hours to less than 10% at all times, allowing users to generate faster month-end food inventory reports

Achieved ROI in one year by providing a high-performing, reliable and scalable Oracle Exadata to support massive volume of sales transactions for up to 30,000 POS systems without additional hardware costs over the next four years
Ensured 24/7 business operations by using Oracle Exadata’s completely redundant hardware, including InfiniBand networking, power supplies, and database and storage servers, to enable high system availability and protect against database failure and site disasters
Supported future growth by using Oracle Advanced Compression option to compress transmitted data, such as sales transactions, by 3x compared to the legacy system, reducing network traffic and ensuring stable system operation
Improved IT staff efficiency by using Oracle Enterprise Manager to provide a unified view of hardware and software components, and enable administrators to receive automatic alerts and reduce resolution time for system issues

Why They Chose Oracle

After researching and examining various vendors and solutions, Teraoka System chose Oracle Exadata because it offers a high-performing, cost-effective, and scalable database platform that could support a massive volume of POS transactions and users for up to 30,000 POS systems.

We already considered Oracle Exadata earlier, but the minimal configuration at the time was quarter rack. When Oracle announced the release of Oracle Exadata eighth rack, we decided that Oracle Exadata was a perfect choice as it met our business requirements to support growth and achieve faster ROI.

— Akito Sakurai, system manager, Application Service Provider Division, Teraoka System Co., Ltd.

Execution

Following the release of Oracle Exadata eighth rack, Teraoka System implemented two Oracle Exadata Database Machines for the cloud-based store management system. The company also worked with Oracle’s technical consultant for technical support, including system design and testing, to ensure a smooth implementation. After Teraoka System went live with Oracle Exadata, the company started to provide its cloud service via the new platform.