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With in-memory technology, all data and applications are kept in the computer’s main memory to avoid expensive mechanical hard-drive I/O access, reduce latency times, and increase the ability to process large volumes of data or complex data. In this “innovation and novel concepts” article, we discuss how in-memory technology may create business value. Based on our experiences in collaborating with the Hilti Corporation, one of the first adopters of SAP’s in-memory technology appliance (SAP HANA), we describe and discuss illustrative application scenarios that are made possible through the increased computing power offered by in-memory technology. Based on these scenarios, we identify principles of value creation through in-memory technology: the first-order effects of reduced latency times and increased ability to process large volumes of complex data (big data processing) that lead to the second-order effects of advanced business analytics and the convergence of OLTP and OLAP that themselves lead to business value through improved organizational performance.
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© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
HOW IN-MEMORY TECHNOLOGY CAN CREATE BUSINESS VALUE. INSIGHTS
FROM THE HILTI CASE
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
About This Work
This work is based on academic research published as:
vom Brocke, J., Debortoli, S., Müller, O., & Reuter, N. (2014). How In-Memory Technology Can Create Business Value: Insights from the Hilti Case. Communications of the Association for Information Systems (CAIS), 34(1), 151-167.
You can access the full study via:http://my.uni.li/i3v/publikationen/00065700/03966167.PDF
Please feel free to use any of the material in these slides with reference to the original source.
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Management Summary
▪ This work shows how to create business value through in-memory technology
▪ It is based on a project with the Hilti Corporation
▪ Principles of value creation through in-memory technology
◦ First-order effects of reduced latency times and big data processing lead to
◦ Second-order effects of advances business analytics and the convergence of online transaction processing (OLTP) and online analytical processing (OLAP) that lead to
◦ Business value through improved organizational performance
Keywords: In-memory technology, Process Innovation, Big Data, IT business value
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Main Result (1/2)
Fig. 1 Generating business value through in-memory technology (vom Brocke et al., 2014, p. 160)
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Main Result (2/2)
▪ General principles of value creation through in-memory technology:
◦ Principle (1): The technical characteristics of in-memory technology provide first-order and second-order effects.
◦ Principle (2): The second-order effects of in-memory technology manifest in advanced business analytics and the convergence of online transaction processing (OLTP) and online analytical processing (OLAP).
◦ Principle (3): The second-order effects of in-memory technology are driven by reduced latency times and the ability to process large volumes of complex data.
◦ Principle (4): The value creation through in-memory technology is restricted by the capabilities of the overall sociotechnical structures and processes.
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Important Concepts (1/2)
▪ In-memory technology
◦ Innovative database system
◦ Data is stored in the computer‘s main memory
◦ Multiple CPUs allow for processing parallel requests
◦ Application of a mixed row- and column-oriented storage approach
◦ Offers compression techniques to significantly reduce data size
◦ Insert-only approach (no updates ore deletions on physically stored tuples of data)
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Important Concepts (2/2)
▪ Business value
◦ Improved business performance
◦ Productivity enhancements
◦ Profitability improvement
◦ Cost reduction
◦ Competitive advantage
◦ Inventory reduction
◦ Etc.
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Research Method
▪ Research project with Hilti Corporation
▪ Creativity research with students: two iterations, each consisting of the following phases*
◦ Preparation
◦ Incubation
◦ Illumination
◦ Verification
▪ Results: Application scenarios on how in-memory technology could generate business value for Hilti
* Lubart, T. I. (2001). Models of the Creative Process: Past, Present and Future, Creativity Research Journal, (13)3, 295–308.
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Related Publications
Main publication of these slides
▪ vom Brocke, J., Debortoli, S., Müller, O., & Reuter, N. (2014). How In-Memory Technology Can Create Business Value: Insights from the Hilti Case. Communications of the Association for Information Systems (CAIS), 34(1), 151-167 (Download).
Further publications on the topic
▪ vom Brocke, J. (2013). In-Memory Value Creation, or now that we found love, what are we gonna do with it? BPTrends, 10, 1-8 (Download).
▪ vom Brocke, J., Debortoli, S., Müller, O., & Uhl, A. (2013). In-Memory Database Business Value. 360° - The Business Transformation Journal, 3(7), 16-26 (Download).
© Jan vom Brocke, Stefan Debortoli, Oliver Müller, Nadine Reuter
Contact
Feel free to contact the authors in case of any related matter
▪ Prof. Dr. Jan vom Brocke, University of Liechtenstein, Institute of Information Systems, [email protected], www.uni.li/jan.vom.brocke, Twitter: @janvombrocke, Mail: [email protected]
▪ Stefan Debortoli, University of Liechtenstein, Institute of Information Systems, [email protected], www.uni.li/stefan.debortoli
▪ Dr. Oliver Müller, University of Liechtenstein, Institute of Information Systems, [email protected], www.uni.li/oliver.mueller
▪ Nadine Reuter, University of Liechtenstein, Institute of Information Systems, [email protected], www.uni.li/nadine.reuter
