September 27-29, 2004 JW Marriott Desert Springs Resort Palm Desert, California The Importance of Data Warehousing and Business Intelligence in Business

September 27-29, 2004 • JW Marriott Desert Springs Resort • Palm Desert, California

The Importance of The Importance of Data Warehousing and Data Warehousing and Business Intelligence in Business Intelligence in

Business TodayBusiness Today

Wayne State University Seminar SeriesWayne State University Seminar Series

Greg McMillan – Senior Manager HR Business Intelligence and Data Warehousing

Ford Motor Company Email: [email protected]

Importance of DW & BIImportance of DW & BIWayne State University Seminar SeriesWayne State University Seminar Series

AgendaAgenda

• Student Overview

• What is Data Warehousing?

• What is Business Intelligence?

• Why are DW and BI Important to Business?

• What is Enterprise Excellence in BI/DW?

• How do you get to be Excellent?


A data warehouse is an analytically oriented, integrated,

time-variant, and nonvolatile collection of data

that supports decision making processes

What is a Data Warehouse?What is a Data Warehouse?


The act of using historical data

to gain new information.

Techniques include multidimensional analyses,

mathematical projection, modeling,

ad-hoc queries and 'canned' reporting.

What is Business Intelligence?What is Business Intelligence?


Why are BI and DW Why are BI and DW

Important to the Enterprise?Important to the Enterprise?


Gartner estimates that this year "business management in 50% of large enterprises will identify BI&DW as a strategic initiative, forging an alignment of goals, objectives, and resources to better support the enterprise with insight”

CIO Magazine – “Querying the data warehouse became an integral part of almost everyone's job routine in the late 1990’s. Some observers see this change as the cusp of a new era, in which data warehouses become the language, even the skeleton, of the enterprise itself.

Gartner also estimates that “in 2004, in enterprises where faster reaction is key to operational effectiveness, active BI&DW will be one of the top four initiatives driving IT investment and strategy”

A majority of Information technology executives surveyed by Unisys Corp said they plan to invest less money in e-business and more in basics such as data warehousing – Food Distributor Magazine

“The only constants CIOs can count on are that data warehousing will become more difficult and consume more IT resources.” – CIO Magazine

The Hurwitz Group has defined BI&DW as “an imperative for e-business”.

Gartner Inc., a consultant that specializes in business intelligence (BI) and data warehousing, predicts that data warehousing is about to take off after three "lost years" during which e-business, especially B2B, got most of the attention

“The System is the Enterprise” – John Zachman


The Bottom Line


Wal-Mart - 500-600% Growth with No Decline

Integrated Data Warehouse Becomes a Reality


Kmart

Wal-Mart

A Present Day History Lesson


The Bottom Line


3M Company - A Great 5 Year Stock Chart – 100% Gain

Integrated Data Warehouse Becomes a Reality


The Bottom Line


96 9794 95 98 99 00 01 02

Fedex – Impressive 400% Gains with No Decline

96 9794 95 98 99 00 01

Distribution Data Warehouse Becomes a Reality


“The data warehouse is the heart and soul of this company, and we wouldn't be in business without it."

The Holy GrailThe Holy Grail


What are the components of Enterprise Excellence in BI/DW?


Excellence FrameworkExcellence Framework

Pillars of SuccessPillars of Success


Information Technologists

Hardware and Software Vendors

Consultants

Business People

How do you get to be Excellent in DW and BI?


What you do not Measure you can not Manage


Incomplete, Sporadic, Non-ExistentNot

Pe

rfor

me

d0

Informally Performed, Heroic

Init

ial

1

Disciplined, Planned

Rep

eata

ble2

Institutionalized, Standards

Def

ined

3

Quantitatively Controlled, Six-SigmaM

anag

ed4

Quantum Value Add, Continuous Improvement

Opt

imiz

ing5

Level

Quantitatively Controlled, Six-SigmaM

anag

ed4

Achievement Value

Low CostQuality &Success

WasteRisk & Failure

What you do Not Communicate Well is Forgotten


What you do not Plan you cannot Achieve CMM Level 0

CMM Level 1

CMM Level 2

CMM Level 3

CMM Level 4

CMM Level 5

Capability Maturity Model Levels

KnowledgeablePeople

TechnologyThat Works

QualityData

ProvenProcesses

2003 2004 2005 2006 2007


How else do you get to be Excellent in DW and BI?

Know Your Definitions Understand what each really means:

Leverage Knowledgeable People Drive Quality Data Use Technology That Works Buy Proven Processes

Study the best of the best Carefully Study Architecture Alternatives Think big, plan big, then start small and

deliver quickly


Jan. 15, 1999 Issue of CIO Magazine The The Must Must Read Read ListList

3M: Glued to the Web Business Week November 20, 2000The 98-year-old company's online database is generating New Economy efficiencies

Corporate Information Factory, 2nd Edition by William H. Inmon, et al

The Data Warehouse Toolkit: The Complete Guide to Dimensional Modeling (Second Edition)by Ralph Kimball (Author), Margy Ross (Author)

Kmart – Code Blue December 2001By David Carr & Edward Cone

Data warehousing has become the foundation for business-intelligence efforts.Scott Leibs, CFO Magazine October 01, 2000


Documents

September 27-29, 2004 JW Marriott Desert Springs Resort Palm Desert, California The Importance of Data Warehousing and Business Intelligence in Business