Data Warehousing: What the Future Holds

DataWarehousingHorizons JohnOnder DMReviewMagazine,November2001

Withina year, the overall informationtechnologyindustryhas gonethrougha major upheaval.Howhas this affectedour marketplace,and what doesthe future bring for thosethat specializein the data warehouse (DW)and businessintelligence(BI) space?This article is a series of observationsand thoughtsbasedon the experienceswith Headstrong'scustomerbasein our Digital IntelligencePractice. Manychangesare loomingon the horizonfor our industry. First is a focuson the returnto basics drive revenue,cut costs, and acquireand retain customers.C-level and boardapplicationsare movingto displacedepartmentalapplicationsas the startingpoint for data warehousedevelopment.The reasonsare manyand variedand includethe maturingof departmentalapplications,the overall return to sound businessbasicsafter the dot-comboom/bustand the ever-importantfocuson the customerand on shareholdervalue. Other trendsindicatethat the futurewill bring a level of complexityand businessimportancethat will raise the bar for all of us. The real-time implementationof a businessaction, decisionor changeof directionthat is basedon the results of strategicdata analysisis nowthe reality. The data issuessurroundingthis trend aren't gettingany easier or smaller. Combinethe needfor real-timedata warehousingand increaseddata size and complexity, and we set the stagefor a newtype of warehouse the "virtual" enterprisedata warehouse.This virtual DWor privatehub for both operationaland informationalneedswill beginto drive newdemandson the ability of organizationsto assimilatevast data assetsstoredin merged/acquired companiesor divisionalenterpriseresourceplanning(ERP)and legacyenvironments.The time and/or dollarsneededto integrateall the operationalsystemswill makethe traditionalmethodof data integration impractical. This intersectionof Webchannelsand data warehousinghas the potential to becomethe standardarchitecturefor large, complexorganizations. Next, it is withouta doubt that the entire customerrelationshipmanagement(CRM)explosionis drivinga largeportionof the current data warehouseprojectsin the industry. But is this really new?I've always statedthat thoseof us whoare veteransin the DWworld werebuildingand runningCRMenvironments beforetherewas an acronymfor CRM.Furthermore,we are definitelyseeinga reverseevolutionin the CRMspace, whichaccentuatesthe importanceof analyzingand measuringthe effectivenessand efficiencyof operationalCRMcapabilities. Continuingon the themeof measurement,rememberthe executiveinformationsystem(EIS)?The EIS was the easy-to-use, showme-the-numbersapplication directedat the senior businessmanagementof a company.The intent of an EIS was to makethe key performanceindicatorsessential to runninga businessavailableat the touchof a button. These applicationswerethe ragein the mid-'80s. The EIS lives againas the digital dashboard.All the leading onlineanalytical processing(OLAP)softwarevendorshavedevelopedor are in the processof developing

key performanceindicatormodules;and manydashboardspecific vendorsare startingup and/or growing rapidly. Lastly, the completescopeof the organization,structureand processesneededfor a successfulcustomer deploymentof a large, complexdata warehousecontinuesto be a major problemfor most organizations. Makingit happensuccessfully takesa uniquefocusand teamof people. Mainly, the ability of an organizationto changeor disposeof the conventionalwisdomregardingthe correct mix and role of staff is important.Regardingthis topic, I havethe followingobservations.Your customerdeploymentteam structuremust mimicyour desiredbusinessgoals; and the teamshouldresidewithin the samespace businessoperations,businessanalystsand IT professionalsneedto learn to cohabitate. Trainingmust go beyondbasic tool trainingto includepure businesssolutionanalysistied to the desiredoutcome.Tight trackingand measurementof the expectedbusinessreturnhas to be easily understoodand continually revisitedagainst expectations.Includein your engineeringof the customerdeploymentshopnot just what the teammemberswill do, but howthey will do it. Whatprocesscan be maderepeatable,scalableand flexibleenoughto changewith the business?

John Onder, a partner in Chicago Business Intelligence Group (CBIG), has extensive experience in all facets of providing information technology services, business reengineering, system assessment and planning services. He has in-depth expertise in business planning and practical implementation of business intelligence and data warehouse applications across many industries. CBIG is a full service, vendorindependent DW/BI consultancy staffed by senior level professionals. Onder can be reached at john.onder@chicagobigroup.com or (773) 477-8783.