Specifically, Teradata Performance tuning involves identifying all bottlenecks in the database and resolving them. The bottleneck does not cause errors, but it certainly causes DELAYS in data retrieval from the database. A company without performance tuning for its database COULD suffer from imperfect responses to queries, causing unnecessary difficulties in accessing its data and other issues. 

The reasons for consistent performance tuning are as follows:  

• Increasing the speed of data retrieval: A database that isn't optimized can cause retrieval of data to be slower if you have a lot of data. Performance tuning allows you to build indexes and fix problems that could delay the retrieval of your data.
• Avoiding CODING loops: Coding loops (repeating a certain block of code repeatedly until a certain condition is met) can increase the load on your database. SQL queries are executed multiple times if PRESENT in a loop, however if you move them out of the loop, performance can be improved since they are executed once instead of many times.
• Optimize SQL query performance: In order to enhance query performance, it is best to avoid correlated subqueries, to avoid overusing select (and instead declare each column individually), and to avoid TEMPORARY tables if possible. The purpose of performance tuning is generally to reduce the response time for the end user or the latency.