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When Data Warehouse Projects are Successful

In the Data Warehousing industry, we are continuing to see the maturation of the value proposition and the management of risk. In the early days, the technology was experimental. Data Warehouse projects consumed $millions on nothing more than the promise of “if we build it, I’m sure it will pay for itself. After all, XYZ company found out something that caused their warehouse project to pay for itself in only six months!” Vendors were great at sending the message that “all of your competitors are building these systems in secret, because they consider it to be a competitive advantage. We would share more information, but we are under non-disclosure.”

The promise of striking gold in them thar hills of data was the subject of serious boardroom conversations. And those that failed to achieve the promise, either because the system was never built, or because it was delivered late and way over budget, or because they didn’t find the nuggets of gold they had hoped for, kept quiet. They didn’t want their colleagues or competitors to know.

Now it is generally known that Data Warehouse projects can fail, and have failed, and as a result, less of them actually do fail. We understand the risks and how to manage them.

Here are several of the factors that have contributed to our ever-increasing success:

• Adoption of an iterative deliverable methodology, where large projects are divided into 90-day deliverables and the projects with the greatest ROI and highest probability of success are done first. Scalable technology has contributed significantly to minimizing the risk in up-front capital investments.
• Dealing with the understanding that data quality is a major and must be evaluated up front, often times as part of an assessment. You can’t make a gourmet dinner out of garbage.
• An understanding that organizations must cooperate in order to integrate data, that project teams must be organized and executive sponsors identified accordingly.
• The technology to build, maintain, manage, and mine the systems is much better, and there are many more experienced technologists available.

  Posted by William McKnight on July 25, 2007 3:38 PM |

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