Strategic Data Warehousing: Achieving Alignment with Business

200 Pages·2009·3.91 MB·English

by  Neera Bhansali

STRATEGIC DATA
WAREHOUSING
Achieving Alignment with Business
© 2010 by Taylor and Francis Group, LLC
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© 2010 by Taylor and Francis Group, LLC
STRATEGIC DATA
WAREHOUSING
Achieving Alignment with Business
Neera Bhansali
Boca Raton London New York
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Library of Congress Cataloging-in-Publication Data
Bhansali, Neera.
Strategic data warehousing : achieving alignment with business / Neera Bhansali.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4200-8394-1 (hardcover : alk. paper)
1. Data warehousing. 2. Business--Data processing. I. Title.
QA76.9.D37B53 2010
651.8--dc22 2009021246
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Dedication
To Shrenik and Divya
© 2010 by Taylor and Francis Group, LLC
Contents
Preface .........................................................................................................xiii
Acknowledgments .........................................................................................xv
About the Author ........................................................................................xvii
1 Introduction ...........................................................................................1
Data Warehouse...........................................................................................2
Challenges in Data Warehousing .................................................................3
Goal .............................................................................................................4
Strategic Alignment .....................................................................................5
Current Status of Strategic Alignment Research ..........................................6
The Gap .......................................................................................................7
Case Studies .................................................................................................8
Organization of Remaining Chapters ..........................................................8
2 Benefits of a Data Warehouse .................................................................9
Evolution of Information Technology ..........................................................9
Evolution of Information Systems ..............................................................10
Benefits of a Data Warehouse ....................................................................12
Decision Support ..............................................................................12
Data Analysis ....................................................................................13
Data Mining .....................................................................................15
Enhanced Integrated Data ................................................................16
Efficiency Improvements ...................................................................17
Customer Management ....................................................................17
Conclusion .................................................................................................18
3 Difference Between Data Warehouses and Traditional
Operational Systems .............................................................................19
Features of a Data Warehouse ....................................................................19
Subject Oriented ...............................................................................19
Integrated .........................................................................................20
vii
© 2010 by Taylor and Francis Group, LLC
viii  Contents
Nonvolatile .......................................................................................20
Time Variant ....................................................................................21
Historical ..........................................................................................21
Difference Between Data Warehouses and Traditional Operational
Systems ......................................................................................................21
Used by Management .......................................................................22
Strategic Value ..................................................................................22
Strategic Direction ............................................................................23
Online Analytical Processing ............................................................23
Subject Oriented ...............................................................................24
Historical Data .................................................................................24
Unpredictable Query Pattern ............................................................25
Other Important Differences ............................................................25
4 Data Warehouse Development Process ................................................29
Data Sourcing ............................................................................................30
Data Modeling ..........................................................................................30
Transforming Enterprise Data Model to Data Warehouse Model ....34
Remove Operational Data ................................................................35
Add an Element of Time to the Key Structure ..................................35
Add Appropriate Derived Data .........................................................35
Transform Data Relationships into Data Artifacts ............................36
Accommodate Different Levels of Granularity .................................37
Merge Like Data from Different Tables ............................................39
Create Arrays of Data ......................................................................40
Separate Data Attributes by Stability Characteristics ........................41
Data Extraction and Conversion ...............................................................42
Data Extraction ................................................................................43
Data Cleaning ..................................................................................43
Loading the Data Warehouse ..........................................................44
Refresh .............................................................................................45
Data Warehouse Database Management System .......................................46
Differences between Relational and Multidimensional Designs........47
Data Warehouse Administration ...............................................................48
Access and Business Intelligence Tools .......................................................49
Metadata ....................................................................................................50
5 Data Warehouse Architectures .............................................................53
6 Factors Influencing the Success of a Data Warehouse ..........................57
Organization Factors that Influence Success of a Data Warehouse ............58
User Factors that Influence Success of a Data Warehouse .........................64
Technology Factors that Influence Success of a Data Warehouse ...............65
© 2010 by Taylor and Francis Group, LLC
Contents  ix
Data Factors that Influence Success of a Data Warehouse ..........................67
Data Quality ....................................................................................68
Intrinsic Data Quality ......................................................................69
Contextual Data Quality ..................................................................70
Accessibility ......................................................................................71
Representational Data Quality .........................................................71
7 Strategic Alignment ..............................................................................75
Need for Strategic Alignment Between IT and Business ............................76
The Strategic Alignment Model .................................................................78
Developments in Strategic Alignment Research .........................................80
Alternatives to the Strategic Alignment Model .........................................84
Enablers of Business–IT Alignment ...........................................................86
Culture .............................................................................................87
Customer Focus ................................................................................87
Organization ....................................................................................87
Joint Responsibility ...........................................................................88
Rewards ............................................................................................89
Conclusion .................................................................................................89
8 Strategic Alignment of Data Warehouses .............................................91
Conceptual Model .....................................................................................91
Joint Responsibility between Data Warehouse and Business Managers ......93
Alignment between Business Plan and Data Warehouse Plan ..................100
Business User Satisfaction ........................................................................104
Technical Integration ...............................................................................109
Flexibility .................................................................................................112
9 Case Study: Strategic Alignment at Nielsen Media Research .............115
Introduction ............................................................................................115
Overview of the Company .......................................................................115
Business Objective ..........................................................................116
Background of the Data Warehouse ...............................................116
The Data Warehouse Development ..........................................................117
Project Initiation .............................................................................117
Data Warehouse Architecture Selection ..........................................118
Physical Implementation .................................................................118
Strategic Alignment of the Data Warehouse at Nielsen Media
Research ..................................................................................................119
Joint Responsibility between Business and Data Warehouse
Managers ........................................................................................120
Commitment and Involvement of Senior Management .........120
Involvement of Data Warehouse Managers in Corporate
Strategy .................................................................................121
© 2010 by Taylor and Francis Group, LLC
x  Contents
Alignment between Business and Data Warehouse Plans ...............122
Architectural Alignment of the Data Warehouse ...................122
Knowledge Sharing ...............................................................123
Integration of Business and Data Warehouse Planning ..........124
Communication between the Business and Data
Warehouse Managers .............................................................125
User Participation and Satisfaction, and Data Warehouse Success ..126
User Participation ..................................................................126
Perceived Usefulness ..............................................................127
Ease of Use ............................................................................128
Data Quality .........................................................................128
Technical Integration and Data Warehouse Alignment and
Success ............................................................................................129
Value Management ................................................................129
Technological Capability .......................................................130
Organizational Capability .....................................................131
Flexibility in Data Warehouse Planning .........................................131
Conclusion ...............................................................................................133
10 Case Study: Strategic Alignment at Raymond James Financial .........135
Introduction ............................................................................................135
Overview of the Company .......................................................................135
Company Subsidiaries ....................................................................136
Business Objectives .........................................................................136
Corporate Structure ........................................................................137
Background of the Data Warehouse ........................................................137
Data Warehouse Objective .............................................................138
Data Warehouse Development .......................................................138
Conceptual Model .................................................................138
Physical Implementation .......................................................139
Project Initiation....................................................................139
Current Data Warehouse .......................................................139
Strategic Alignment of the Data Warehouse at Raymond James
Financial ..................................................................................................140
Joint Responsibility Between Business and Data Warehouse
Managers ........................................................................................140
Commitment and Involvement of Senior Management in
Data Warehouse Project ........................................................140
Involvement of Data Warehouse Managers in Corporate
Strategy .................................................................................141
Alignment between Business and Data Warehouse Plans ...............142
Architectural Alignment of the Data Warehouse ...................143
Knowledge Sharing ...............................................................144
© 2010 by Taylor and Francis Group, LLC