Reinventing Business: Enterprise Data Warehouse Business Opportunities for Manufacturing, Part 9
Originally published November 4, 2010
Part 1 of this series defined the EDW and summarized its data contents. Parts 2, 3, 4, 5 and 6 described and quantified 30 major benefit opportunities. Part 7 contained 10 business analysis examples for enabling benefits and summarized the benefit potentials as a percent of annual revenues. Part 8 continued with a description of 30 best practices to ensure success. This installment briefly describes the governance process and provides a recommended organizational structure for a manufacturing EDW.
GovernanceAn EDW is a strategic business decision, with governance starting at the top. It should be supported and approved by senior business executives. The Executive Committee should approve the vision, long-term plan, and funding for Phase 1. After Phase 1 has been successfully completed, subsequent phases should be approved at the same level. The entire EDW project should entail about four or five financial phases, each capitalized and amortized over three or four years. The Executive Committee should be updated at least twice per year on EDW progress and should provide high-level direction on new corporate needs or objectives.
The second level of governance should include appropriate business leaders, or IT Directors, from each functional area and business unit participating in a Steering Committee, meeting monthly with the Enterprise Information Management VP or Director. This EDW steering committee should review and approve more specific EDW priorities and deliverables.
Subject area owners (SAOs), who report to the EIM Data Management Director (see below), should maintain and conduct subject area user forums representing EDW subject area data content. The “product” of the EDW is data or information, so this is a data-centric governance process. The SAOs are responsible for working closely with businesspeople in all areas who use the subject area data, understanding data requirements, determining priorities, and scheduling EDW data enhancements (releases). SAOs assure that data meets the needs of all business units and functional areas without redundancy. Note, though, that they are not responsible for BI applications. Subject area owners and the user forums are the critical governance level assuring EDW success.
OrganizationThe EDW represents a significantly different approach than traditional IT systems and application organizations, where transaction processing and reporting have been aligned with respective business functional areas (finance, sales, marketing, supply chain, etc.). The traditional IT alignment evolved over time because reporting was typically done from transaction databases or databases aligned with functional areas, and this may still be needed. However, the EDW support organization becomes a separate entity supporting all functional areas, thus requiring an independent support organization. This section defines an EDW support organization, roles and responsibilities.
A. Enterprise Information Management
The title enterprise information management (EIM) perhaps best defines the responsibilities of the organization supporting the EDW. It is appropriate to distinguish between the EDW itself and the supporting organization. EIM is logically a component of IT but is distinct from the operational functional areas and infrastructure, and therefore should report directly to the CIO. It integrates people with technical skills and business experience. It is important that the EIM VP or Director controls the resources critical to success of the EDW. He or she must have strong leadership skills.
The following areas of responsibility within EIM are recommended, with roles and responsibilities defined within each area. A Director or Senior Manager should lead each group.
1. Data Management Director
This group is responsible for the integration, standardization, and organization of the data in the EDW. Responsibilities include:
2. Data Transport, Load, and Operations Director
This group is responsible for the operational aspects of getting data to the EDW, loading it and meeting performance requirements. Responsibilities include:
3. Quality Assurance Director
4. Business Intelligence Support and Training Director
5. Shared Applications Development Director
[In large enterprises, this function is typically distributed into support areas aligned with each major business unit or staff function. These people need to be fully committed to the EDW and not supporting competing business intelligence activities.]
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