Optimal Process- Data Warehousing

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Data Warehousing

A Data Warehouse empowers managers with easily accessible and well defined data for business analysis. The Data Warehouse takes the raw data from operational systems and provides a simple method to view current and historical reports on that data. This information can be extracted directly into spreadsheets (or other tools) for further analysis and formatting.

The raw data, which may come from multiple applications and external sources is cleaned up and formatted into common understandable business terms. Data Mining is simply the process of using a Data Warehouse to analyze the data and making useful business decisions.

The value of a Data Warehouse is easily many times the cost of implementing it. A manager does not have to interact with the complexities of an operational system. The Data Warehouse is a stand alone system which makes a secure and efficient report delivery. Managers do not have to request data from different departments or spend time qualifying and or interpreting data. The data is well defined and ready to use.

For example, let’s say that we are managing a group of convenience stores. These stores each have their own in-store Operations and Point of Sale System. Every day all the “sales” and “time and attendance” data from each store is delivered to a central database. Categories and general ledger accounts are mapped so that every store has similar, well understood data. We can go to a web site and make selections to filter the data (by store, location, date range, etc), choose a particular report type (daily flash, payroll, monthly detail, consolidated, etc) and produce a viewable / printable report or download it into a spreadsheet.

Creating a Data Warehouse is like hiring a new employee. We must do it correctly to get the most benefit out of it. This new “employee” starts with certain knowledge and ability and we must continue to train it in order to evolve to be more productive. We should evaluate our target users (managers) and their typical methods of analysis. The more involved every user is in defining and creating the Data Warehouse, the more effective it will be in terms of delivering what we need. Plus the users will take ownership and continue to enhance it. To build a Data Warehouse we must identify all the data fields, Determine the format of each element, Determine the method of delivery (Web Reports, Crystal Reports, SQL Queries, Export to spreadsheets, etc) and build the software. The life cycle is much the same as any software which is to define the scope, write the code, test it, implement it, get user feedback and continue with a new scope. The creation and use of the Data Warehouse will spawn the users to reach out and learn more about the business through analysis. This will increase the capacity of the users, redefine the Data Warehouse and make it an even more effective tool.

Data is only valuable when it is used ! It must be placed in the hands of those who can analyze it and make business decisions based on that analysis. A Data Warehouse provides a method to deliver effective data to those who need it most, when they need it.

Optimal Process is a software development group in Memphis TN which builds and implements Data Warehouses. Please direct any questions or feedback to Steve Cantor cantors@optimalprocess.com .

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