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8/3/2019 BillInmon - Congr BI

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tpptwhy.ppt 12001 Copyright William H. Inmon, all rights reserved.

a presentationby W. H. Inmon

Return On Investmentand the

Data Warehouse


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Consider a corporation that needs to see information ...

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The only difference between the two scenarios is a datawarehouse.


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In order to produce a report, the applications have to beaccessed.


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How much does it cost to build the report?

find the data

gather the data integrate the data stage the data build the report

2 months - 1 year$25,000 - $1,000,000


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2 months - 1 year$25,000 - $1,000,000

But when you have a data warehouse, how much does itcost to build a report?

30 minutes - 2 weeks$250 - $10,000

find the data gather the data integrate the data stage the data build the report


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find the data gather the data integrate the data

stage the data build the report

find data

gather data

integrate data

stage data

The cost of building the warehouse

is in the preparation activities.

With a data warehouse the cost of reporting is cheap.


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But nobody builds one report .


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$500,000

$1,000,000

$750,000

$250,000

$500

$10,000

$1,000

$7,500

The payback on data warehousing comes in the second,third, fourth, reports, not on the first report.


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When you understand that this is the reality of

information, how can you live without a data warehouse?

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$500,000

$1,000,000

$750,000

$250,000

$500

$10,000

$1,000

$7,500


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But there are other reasons why corporationsbuild data warehouses.

Consider the applications that the corporation

has built or acquired over time.


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Consider a basic question

from the corporate perspective;who is a customer?retail customers

North American customers

prospective customers

US commercial customers

Each application has its own interpretation of whois a customer - there is no corporate understandingof who is a customer.


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Data is lifted from the applications environment and

is integrated to provide a corporate perspective as itis moved into the data warehouse.


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For the first time the corporation has anintegrated view of its own information.


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But there is another very important reason why

corporations want a data warehouse.


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Applications have a very limited amount of

historical data.

30 days

1 week

only current data

14 days


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5 - 10 yearsworth of history

The data warehouse is agood place to storehistory - a robust mountof history.


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5 - 10 years

worth of history

History is invaluable in understanding:

your customer, trends, the larger picture, products, etc.


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The data warehouse is invaluable in understanding:

the cost and accessibility of information, integrated corporate information, and historical information.

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