billinmon.

com

Return On Investment and the Data Warehouse

a presentation by W. H. Inmon

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

billinmon.com Consider a corporation that needs to see information ...

appls

appls

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

billinmon.com The only difference between the two scenarios is a data warehouse.

appls

appls
2001 Copyright William H. Inmon, all rights reserved. tpptwhy.ppt

billinmon.com In order to produce a report, the applications have to be accessed.

appls

appls
2001 Copyright William H. Inmon, all rights reserved. tpptwhy.ppt

billinmon.com How much does it cost to build the report?

appls

2 months - 1 year $25,000 - $1,000,000

find the data gather the data integrate the data stage the data build the report

appls
2001 Copyright William H. Inmon, all rights reserved. tpptwhy.ppt

billinmon.com But when you have a data warehouse, how much does it cost to build a report?

appls

2 months - 1 year $25,000 - $1,000,000

find the data gather the data integrate the data stage the data build the report

appls
2001 Copyright William H. Inmon, all rights reserved.

30 minutes - 2 weeks $250 - $10,000

tpptwhy.ppt

billinmon.com With a data warehouse the cost of reporting is cheap.

appls
find data gather data integrate data stage data

find the data gather the data integrate the data stage the data build the report

appls The cost of building the warehouse is in the preparation activities.

2001 Copyright William H. Inmon, all rights reserved. tpptwhy.ppt

billinmon.com But nobody builds one report .

appls

appls

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

billinmon.com The payback on data warehousing comes in the second, third, fourth, reports, not on the first report.
$1,000,000 $500,000 $250,000

appls

$750,000

$500 $7,500

appls
2001 Copyright William H. Inmon, all rights reserved.

$10,000 $1,000
tpptwhy.ppt

billinmon.com

When you understand that this is the reality of information, how can you live without a data warehouse?
$1,000,000 $500,000 $250,000

appls

$750,000

$500 $7,500

appls
2001 Copyright William H. Inmon, all rights reserved.

$10,000 $1,000
tpptwhy.ppt

10

billinmon.com

But there are other reasons why corporations build data warehouses.
Consider the applications that the corporation has built or acquired over time.

appls

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

11

billinmon.com Consider a basic question from the corporate perspective; who is a customer?

retail customers North American customers

prospective customers US commercial customers

appls Each application has its own interpretation of who is a customer - there is no corporate understanding of who is a customer.
2001 Copyright William H. Inmon, all rights reserved. tpptwhy.ppt

12

billinmon.com Data is lifted from the applications environment and is integrated to provide a corporate perspective as it is moved into the data warehouse.

appls

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

13

billinmon.com

appls For the first time the corporation has an integrated view of its own information.

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

14

billinmon.com But there is another very important reason why corporations want a data warehouse.

appls

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

15

billinmon.com Applications have a very limited amount of historical data.

30 days

1 week

only current data 14 days

appls

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

16

billinmon.com

5 - 10 years worth of history

appls

The data warehouse is a good place to store history - a robust mount of history.

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

17

billinmon.com History is invaluable in understanding: your customer, trends, the larger picture, products, etc.

5 - 10 years worth of history

appls
2001 Copyright William H. Inmon, all rights reserved. tpptwhy.ppt

18

billinmon.com The data warehouse is invaluable in understanding: the cost and accessibility of information, integrated corporate information, and historical information.

appls

2001 Copyright William H. Inmon, all rights reserved.

tpptwhy.ppt

19