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

September 27-29, 2004 • JW Marriott Desert Springs Resort • Palm Desert, California. The Importance of Data Warehousing and Business Intelligence in Business Today. Wayne State University Seminar Series. Greg McMillan – Senior Manager HR Business Intelligence and Data Warehousing

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

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  1. September 27-29, 2004 • JW Marriott Desert Springs Resort • Palm Desert, California The Importance of Data Warehousing and Business Intelligence in Business Today Wayne State University Seminar Series Greg McMillan – Senior Manager HR Business Intelligence and Data Warehousing Ford Motor Company Email: gmcmilla@ford.com

  2. Agenda • 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?

  3. What is a Data Warehouse? A data warehouse is an analytically oriented, integrated, time-variant, and nonvolatile collection of data that supports decision making processes

  4. What is Business Intelligence? The act of using historical data to gain new information. Techniques include multidimensional analyses, mathematical projection, modeling, ad-hoc queries and 'canned' reporting.

  5. Why are BI and DW Important to the Enterprise?

  6. 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

  7. The Bottom Line

  8. Integrated Data Warehouse Becomes a Reality Wal-Mart - 500-600% Growth with No Decline

  9. A Present Day History Lesson Wal-Mart Kmart

  10. The Bottom Line

  11. Integrated Data Warehouse Becomes a Reality 3M Company - A Great 5 Year Stock Chart – 100% Gain

  12. The Bottom Line

  13. 94 95 96 97 98 99 00 01 02 Distribution Data Warehouse Becomes a Reality Fedex – Impressive 400% Gains with No Decline 94 95 96 97 98 99 00 01

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

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

  16. Excellence Framework Pillars of Success

  17. How do you get to be Excellent in DW and BI? • Information Technologists • Hardware and Software Vendors • Consultants • Business People

  18. What you do not Measureyou can notManage

  19. Level Achievement Value Low Cost Quality & Success Optimizing 5 Quantum Value Add, Continuous Improvement Managed 4 Quantitatively Controlled, Six-Sigma Managed 4 Quantitatively Controlled, Six-Sigma Defined 3 Institutionalized, Standards 2 Repeatable Disciplined, Planned Initial 1 Informally Performed, Heroic Waste Risk & Failure Not Performed 0 Incomplete, Sporadic, Non-Existent What you do Not Communicate Well is Forgotten

  20. Capability Maturity Model Levels CMM Level 0 CMM Level 3 CMM Level 1 CMM Level 4 CMM Level 2 CMM Level 5 Knowledgeable People Technology That Works Quality Data Proven Processes What you do not Plan you cannot Achieve 2003 2004 2005 2006 2007

  21. 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

  22. The Must Read List Jan. 15, 1999 Issue of CIO Magazine Kmart – Code Blue December 2001 By David Carr & Edward Cone 3M: Glued to the Web Business Week November 20, 2000The 98-year-old company's online database is generating New Economy efficiencies Data warehousing has become the foundation for business-intelligence efforts. Scott Leibs, CFO Magazine October 01, 2000 Corporate Information Factory, 2nd Editionby William H. Inmon, et al The Data Warehouse Toolkit: The Complete Guide to Dimensional Modeling (Second Edition)by Ralph Kimball (Author), Margy Ross (Author)

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