Rethinking Data Warehousing
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- Maurice Chase
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1 Rethinking Data Warehousing
2 Good decisions start with organized data It s a fact: Better data analysis results in better decisions. And, good decisions have a direct impact on improved business results. According to the Atre Group, 80% of the costs associated with data analytics is spent on organizing the data before any meaningful analysis can be done. The high cost of organizing data can seem excessive. If your organization has captured and stored the data, how can it cost so much to organize it? The short answer is: garbage in, garbage out. There are many essential tasks involved in organizing and preparing data for analysis that companies often overlook. The higher the potential value derived from the analysis, the more sophisticated the work required to structure and organize the data. Complex analytics, such as customer profitability, require more insight into current and historic data, and data from multiple functional areas within the company. The more global the analysis, such as, consolidated general ledgers, the greater the need for access to homogenized data from a variety of different systems. 80% of the cost of analytics is spent on organizing data 2
3 5 tasks to organizing your data Research shows that the effort and costs associated with organizing the data for analysis do not always align with the potential analytical value. In other words, you can spend a lot of time and effort organizing data without achieving better results from your analysis. What s more important are the capabilities designed into the data warehouse that constructs and organizes the data. Simply put, the more intelligent the data warehouse the less effort and cost required to do high value analytics. To better understand the relationship between cost and the design of a data warehouse solution it s important to examine the necessary tasks in more detail. Task #1: Identifying the source data The source data comes in many different forms and is often stored in cryptic fields and tables deep within ERP systems. For example, the JD Edwards Business Unit table is named F0006 with the Business Unit Field named MCMCU a less than intuitive abbreviation. Also problematic are seemingly easy queries for things like customer ship to or customer sold to. These commonly used queries need to deal with data fragmentation and can require 50 or so joins of various data elements. 3
4 Task #2: Exporting data into a common model Data may exist on one system or multiple disparate systems across the company. The systems may all be the same ERP (type and version) but more likely the data exists on a myriad of different ERP or other systems. Exporting source data from an ERP system to a data warehouse is conceptually simple. But someone needs to first find the data, put the data into a form that is more easily understood, then consolidate the data from multiple sources into a common data model. This can be left to the analysts, or done by building deep knowledge and experience into the data warehouse. This knowledge will be unique for each source system. Task #3: Keeping data current and updated Moving the data once is not sufficient since the data is only current for an instant. Periodically updates must be scheduled, or a technique must be developed to continuously update the data. Task #4: Identifying how data sets are related Data is often structured by functional area, such as sales data, inventory data, or financial data. However, high value analysis, like customer or product profitability, requires analysis across functional data sets. Proper customer analysis requires both detailed current and historic information. An analyst can take these data sets into consideration, but this can create bottlenecks and introduces the potential for error. Alternatively, this capability to understand data relationships and associations can be integrated into a data warehouse design. 4
5 Task #5: Standardize reporting Finally, a single analyst may believe the analytics they are performing are new and novel when, in fact, their analysis has been done many times before. A well- designed system should pre- calculate a host of values and produce a standard set of reports and dashboards to make incremental analysis more efficient across the enterprise. What level of analytics do you need? Different analytics systems take different approaches in how to address the above needs. Some BI tools, e.g. Tableau or QlikView, are designed for agility and flexibility and allow for quick analysis. These solutions are most appropriate in department settings where data relationships, comprehensive data sets, data currency, and data governance are not the highest priority. However, these tools quickly run out of steam when dealing with broader company analytics. Most ERP vendors offer tools, e.g. OBIA, that focus on providing a subset of the data housed on their system. These offerings do not address the need for the higher value analytics because of the limited data and data source. In addition, it is not easy to provide real time updates or cross- dimensional capabilities when using these tools. 5
6 Trade offs between BI Toolsets BI Tool [1] OBIA [2] RD [3] Multi- source data No No Yes Cross dimensional Analysis No No Yes Reports & Dashboards Yes Yes Yes Continuous Data Update No No Yes Transform Data Yes No Yes Complete Data Set No No Yes BI Toolsets examples 1. BI tools, e.g. QlikView 2. Vendor specific tools, e.g. OBIA 3. Purpose build data warehouse, e.g. RapidDecision EDW Finally, there are custom data warehouses that ensure a holistic approach to the organizing the data and data governance. Clearly any of the above tasks can be dealt with, since it is only a matter of software, but the world is littered with companies that have tried to take on this seemingly simple task and later understood the experience and sophistication required to successfully build a holistic data warehouse. 6
7 RapidDecision: A Holistic Approach to Data Organization & Governance RapidDecision s innovative design addresses the need for agility, flexibility and the requirement of integrating data from multiple, disparate sources. RapidDecision represents a fundamental breakthrough that addresses the underlying challenges of previous generations of data warehouses. At the core is a unified data model designed with a deep understanding of the data structures used by Oracle in their JD Edwards, PeopleSoft and EBS ERP systems. RapidDecision extracts data from obscure locations within the Oracle ERP, transforms the data into more easily understood formats and populates the proprietary data model. While RapidDecision was purpose built for Oracle ERP systems it can also support data from other ERP vendors and non- ERP sources. RapidDecision ensures data is continuously updated with a patent pending technique that mitigates impacts to system performance. The result is a data warehouse that has the most comprehensive data set, 100% of all historic and operational transaction data, and is continuously updated. The system pre- calculates a vast number of items to reduce the time and effort for the analyst, and creates a portfolio of reports by subject area, such as sales or general ledger, or cross functional department. The results also include metadata. 7
8 In the past, it was believed that systems must either optimize flexibility and agility by providing limited subsets of data or maximize data consistency with large structured data warehouses. An innovative alternative exists that provides the best of both worlds and offers new levels of intelligence and analytic capabilities. 8
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