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STUDY SHOWS DATA WAREHOUSE GIVES MORE THAN RETURN ON INVESTMENT
The hot technology for the 1990s in information processing
is data warehouse. However, is it hype or does it offer real solutions
for business. A recent study by International Data Corporation, Ltd.,
in ((TK)) sought to answer this and other questions. It sampled 62 organizations
with data warehouse solutions.
The most surprizing result of the study was the return on investment
these companies experienced. The reported average three year ROI was
a whopping 401%; the median was 167%. Of those surveyed, a fourth cites
returns over 600%. Half the group reported over 160% while nearly all,
90% said they had an over-40% ROI. On a typical investment of $2.2 million
companies IDC surveyed cited an average payback of 2.3 years; the median
was 1.67 years.
A data warehouse physically separates an organization's operational
data systems from its decision support systems. A repository of information,
typically a redundant array of independent disks (RAID) storage subsystem
contains data from all the departments within an enterprise-wide computing
system. Special data warehouse software models and analyzes this data
at the direction of business managers.
In the IDC study, researchers found that data warehouse solutions replaced
existing decision support systems, in many cases reducing manpower in
the process. In addition, the system improved productivity by decreasing
or eliminating the chore of gathering data. The greatest benefit, the
survey found, derived from identifying process savings resulting from
data warehouse analysis.
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