a presentation by W H Inmon

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RETURN ON INVESTMENT ANDTHE DATA WAREHOUSE

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consider a corporation that needs to see information ...

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the only difference between the two scenarios is a data warehouse...

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in order to produce a report, the appls have to be accessed... S

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how much does it cost to build the report?

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

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

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

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

but when you have a data warehouse, how much does itcost to build a report?

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

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

find datagather data

integrate data

stage data

the cost of building the warehouseis in the preparation activities

with a data warehouse the cost of reporting is cheap ... S

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but nobody builds one report …. S

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$500,000

$1,000,000

$750,000

$250,000

$500

$10,000

$1,000

$7,500

the payback on data warehousing comes in the second,third, fourth,… reports, not on the first report

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$500,000

$1,000,000

$750,000

$250,000

$500

$10,000

$1,000

$7,500

when you understand that this is the reality of information, howcan you live without a data warehouse?

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but there are other reasons why corporationsbuild data warehouses.

consider the applications that the corporationhas built or acquired over time

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consider a basic question -from the corporate perspective,who is a customer?retail customers

North American customers

prospective customers

US commercial customers

each application has its own interpretation of whoa customer is - there is no corporate understandingof who a customer is…...

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data is lifted from the applicationsenvironment and is integrated toprovide a corporate perspectiveas it is moved into the datawarehouse

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for the first time the corporation has anintegrated view of its own information

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but there is another very importantreason why corporations want adata warehouse...

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applications have a very limitedamount of historical data….

30 days

1 week

only current data

14 days

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5 - 10 yearsworth of history

the data warehouse is a good placeto store history - a robust amount ofhistory

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5 - 10 yearsworth of history

history is invaluable in understanding -- your customer- trends- the larger picture- products, etc.

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the data warehouse is invaluable -- the cost and accessibility of information- integrated corporate information- historical information

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