Background:
The chief output of a data warehouse is the business decisions that are made using the warehouse. Presumably, a valuable warehouse allows a business to make decisions that are more profitable than it could have made without the warehouse.
Context:
Say, for example, you're trying to pitch your own company on the merits of a more comprehensive data management and analysis strategy, i.e. a data warehouse. Or, you're an ASP or consultant trying to market to businesses to build a new system or expand upon their current system. You're trying to sell decision makers - either your managers or a potential clients' - that it's worth it to invest in a data warehouse and all of the analytical and reporting tools and skillsets that come along with it.
Question:
What are accepted methods of quantifying this increased profitability?
Jai :
Good question, It is the biggest bogeyman for BI solutions I have faced. \n\nThe basic focus of BI/DW is on the KPIs (Key Performance Indicators) of an industry and how measuring/monitoring/analysis of the same can lead to better management decisions that 'optimize' these KPIs. (KPIs - eg Turn around Time, number of sales etc etc etc)\n\nSad part is, till you haven't implemented these, you dont know the average %ROI on these KPIs. The solutions we have used in start is to quote industry reports for DW/BI (the industry specific) implementations when you pitch in for the first time. Hopefully if you then launch your product, the DW tool itself measures its ROI over time by tracking the improvements over these KPIs. \n\nDo keep that in mind when you design the DW, you need to get those measurements for the next time! For your next sale, nothing sells like ROIs measured from your previous DW implementations :)\n\nps -\n\nThere are other soft sells too - the pointers listed by @openingbrace.",
2011-05-19T10:06:46
closebrace :
You must define these params during the 1st phase prior Blueprinting.... \n\n\nHow often is the data loaded? Are the\nloads full upload or delta enabled.\nArchive Strategy How many users?\nHours of operational Vs historic data? \nMostly reporting on Detailed or summarized data? \nInformation requirements?\n\n\nFew more questions are like below,\n\n\nGoals of organization, unit? \nTop KPIs - What views on the KPIs do you need? \nHow often do you need them? \nWhat sequence of drill-downs do you need? \nHow are information displayed; distributed, sold \nCan everyone see everything? \nWhat success factors should a change in the information systems have?\n\n\nThanks.",
2011-05-19T09:50:01