V4

Build an Extensible Data Warehouse

Foundation
Establish a well-architected core model with just enough oversight and
governance.

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ANALYST PERSPECTIVE
Don’t just build a data warehouse, build it smartly.

Data warehouse projects are some of the most challenging projects for
IT because of their complexity. That being said, the data warehouse is
still a technology that can help you gain a significant competitive
advantage.
Start by architecting a data warehouse correctly and build it one
subject area at a time.
Similar to building a house, the key to success is creating manageable
pieces and integrating those pieces based on a well-architected plan
and foundation with just enough oversight and governance. With this
approach, you are able to develop a program around the data
warehouse that will be able to empower your business over time.

Daniel Ko,
Manager, Information Management
Info-Tech Research Group
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Our understanding of the problem

This Research Is
is Designed For: This Research Will Help You:
 CIOs who want to build a data warehouse  Establish an overall vision and identify key
(DW) that helps business users make business processes for data warehousing.
informed decisions.  Create the minimal level of data warehouse
 Business executives who want to work with IT governance to maintain your data warehouse.
to leverage a data warehouse to improve  Understand business needs to pick the most
business processes and access to correct suitable technological option for the data
data. warehouse.

This Research Will Also

Assist:
Assist: This Research Will Help You:
Them:
 Project managers and business analysts in  Identify which architectural components suit
accelerating a data warehousing project by your needs.
following a best-practice data warehousing  Populate source data into the data warehouse
approach that leverages emerging data using the Rosetta Stone approach.
modeling patterns and data technologies.
 Detail the essential data elements that will
 Architects who want to make the most logical feed tables in the core of the data warehouse.
data warehouse decisions.

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Executive summary

Situation Info-Tech Insight

• Organizations are fully aware that data is a critical asset and an 1. A data warehouse is a project; but
indispensable element in successful decision making. successful data warehousing is a
• The data and information landscapes have drastically expanded and program. An effective data warehouse
diversified; combined with the increase in the speed of business, requires planning beyond the initial
decision makers are in need of a system that provides the right technology implementation.
information at the right time.
2. Governance, not technology needs to
Complication be the core support system for enabling
a data warehouse program.
• Data warehouse implementation is a costly and complex undertaking,
and can end up not serving the business needs appropriately. 3. Understand business processes at the
• Too heavy a focus on technology creates a data warehouse that isn’t operational, tactical, and ad hoc
sustainable and ends up with poor adoption. levels to ensure a fit-for-purpose data
• Emerging data sources and technologies add complexity to how the warehouse is built.
appropriate data is made available to business users.

Resolution
• Leverage an approach that focuses on constructing a data warehouse foundation that is able to address a combination of
operational, tactical, and ad hoc business needs.
• Invest time and effort to put together pre-project governance to inform and provide guidance to your data warehouse
implementation with minimal ongoing operations requirements to keep the data warehouse healthy.
• Develop the “Rosetta Stone” views of your data assets to facilitate data modeling and the order of building your data
warehouse environment.
• Select the most suitable architecture pattern to ensure the data warehouse is “built right” at the very beginning.

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The speed of business is showing no signs of slowing down

Globalization of commerce and the shift towards

creating customer experiences are significant
drivers in the quickening of business users’
information needs.

Of business users are

57% unsatisfied with the speed

66%
of information delivery

and
yet
Don’t feel they have access
Sixty-six percent of business
users reported a “shortening of 55% to data relevant to decision
making
their decision-making window”
Source: Aberdeen Group, 2014 Source: Aberdeen Group, 2014

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 Enterprise-wide views of data drive more holistic insights

Leading Barriers to Analytics Use Application-level reporting is ideal for short-

term, operational decision making, and
No centralized approach to capturing and analyzing data for our company's use 32%
time-based reporting for in-application
Our company lacks proper technology and infrastructure to capture the data 23%
data. However, this same data becomes
Leadership does not understand or support the use of analytics 12% difficult to access and costly to leverage
We lack the correct talent to use our data 10%
when trying to combine with other datasets
to make enterprise strategic decisions if
Our industry hasn't really employed analytics in a significant way 8%
there is no data warehouse that has
Privacy issues 3% already defined the true sources of data for
Source: Deloitte, 2013 Other 12% just such purposes.

By creating a data warehouse Analytics Is a Key Factor in Decision Making

environment layer that focuses on Better decision making based on data 49%

integrating real-time and historical Better enablement of key strategic initiatives 16%
data from multiple data sources and Better relationships with customers and business
10%
partners
can be dedicated to reporting, your Better sense of our risk and better ability to react to
9%
organization is in a better position for changes in the economic environment
Better financial performance of the organization 9%
information sharing and enterprise-
Better capability to respond to buying trends in the
wide collaborative decision making marketplace
5%

that is efficient, effective, and timely. Identification and creation of new product and
service revenue streams
1%

Source: Deloitte, 2013

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What is a data warehouse and why do you need it?

An integrated, centralized decision-support database and the related software programs used
to collect, cleanse, transform, and store data from a variety of operational sources to support
business intelligence. A data warehouse may also include dependent data marts (DAMA-
DMBOK Guide, 2009).

Business intelligence is becoming a table Data Value Chain

stakes activity; all organizations need hard
evidence to support decision making. Shared
Insight
Data warehouses (and associated architecture) bridge the
gap between mass accumulation of data in source systems Knowledge
and comprehensive views of information, en route to
creating shared insight and institutional knowledge at the
top of the data value chain. Information

Data

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 Industry Spotlight: Enterprise data warehouses are driving
new value in the US healthcare sector
As healthcare organizations today are motivated more than ever to provide better patient outcomes per dollar
spent, the use of business intelligence tools to facilitate data-driven decision making is imperative. Data
comes from multiple sources, such as electronic health records (EHRs), financial systems, patient satisfaction
surveys, and external laboratory testing databases – all may be used to improve services delivered.

At Texas Children’s Hospital,

reports sourced from
the enterprise data warehouse cost 70% Key Benefits of the
less to build than reports created directly from Healthcare Data Warehouse:
EHRs; one well-planned and flexible data
visualization was able to replace ten static reports.
Enabling a More Efficient,
Scalable Reporting Process

Using the enterprise data warehouse as a single Ensuring Consistent Data

source of truth, North Memorial Healthcare was That Everyone Can Trust
able to coordinate multiple groups of healthcare Enabling Meaningful, Targeted
professionals to reduce the number of pre-39 week Quality Improvement

deliveries by 75%.
Source: Health Catalyst, 2014

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 Industry Spotlight: Streamlining data availability to improve
reporting in government finance
Tanzanian Revenue Authority (TRA) is responsible for several Source: TechnoBrain, 2015
financial functions of the government, including the collection of
tax revenues and conducting research to advise changes to tax
policies. The Research, Policy and Planning department of the
TRA ran into significant challenges with reporting and analysis
as a result of having no centralized point of access for data
residing in multiple siloes.

TRA established an enterprise data warehouse that

served as a hub to link internal and external data
sources across departments. In addition to the storage
infrastructure, the enterprise DW was designed for easy
linkage to business intelligence tools and incorporated
strict data validation and security procedures.

DW Adoption 1 Automated Data Integration 3 Third-Party System Integration

Benefits:
2 Automation of Business Process 4 Centralized Database Management System

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 Data warehousing solutions are viewed as essential, but major
challenges remain

A data warehouse is a powerful enabler in converting

data to a usable asset, but can quickly turn into a
nightmare when issues beyond the technology arise. Successful data warehousing is reliant on
several data management enablers in Info-
Tech’s data management framework,
namely data governance and data quality
management.

Dealing with data quality and consistency issues 58%

Integrating data from disparate sources 53%

Getting funding/executive support for new projects 33%

Managing multiple data warehouses or data marts 28%

Integrating DWs with “big data” systems/ 27%

unstructured data stores
Managing growing volumes of data in data warehouse 25%

Evaluating and selecting data warehouse technology 25%

Maintaining system performance and availability 21%

Implementing additional data warehouses 15%

Scaling systems to support more users/queries 14%

Source: Tech Target, 2013

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 Big data technology might be revolutionizing data
warehousing, but the core isn’t going anywhere
With the excitement around big data and associated technologies that allow for ingestion and
processing of larger volumes and varieties of data, some have been quick to say that the current
state of data warehousing will be a thing of the past.

However,
What technologies does your organization plan to use to support its big
data environment?

Mainstream relational databases/data warehouses 55%

Analytics databases (columnar, MPP, etc.)

Data warehouse appliances 46%

52%
and…
Hadoop/MapReduce 41%
of organizations do not see
Data virtualization software

Complex event processing/real-time data

integration tools
26%
28%

96% big data taking the place of

the existing data
warehouse infrastructure.
NoSQL databases 21%

Other 3% Source: Dimensional Research, 2015

Hadoop, NoSQL, and similar platforms are attractive for providing new
capabilities for combining and storing data sets, but they do not replace a data
warehouse; they COMPLEMENT a data warehouse.

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Info-Tech emphasizes that a successful data warehouse
should be framed as a program, not a project

Due to the high implementation costs and intensive architectural planning up-
front, there is a tendency to assume that the data warehouse will simply run itself
once the “project” is completed.

Data warehousing is a long-term The biggest issue is that data

warehouses are funded as a one-time
commitment to creating an
project; they’re a living organism and
environment that facilitates data
need to have dedicated resources.
delivery and information consolidation
– Chris Debo
for business users. Senior Manager, Schneider Downs & Co., Inc.

Investing in defined processes and governance up-front

is arguably just as integral to data warehouse sustainability as
architecture or the technology platform.

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Embed extensibility within the foundation of your data
warehouse program
Industry-specific innovation will continue to change the standard for how
products and services are delivered to consumers, forcing organizations to find
new ways to accommodate these demands.

Rapid advances in technology are creating new opportunities for data-driven

insight, primarily through the harnessing of big data.

And still…
of organizations are currently unimpressed with the data

55%
warehouse’s ability to handle unstructured data (
The Information Difference, 2015).

Pre-empt user dissatisfaction by building a core

that can support a wider variety of business needs.

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Use a three-piece framework to support your foundation

Inspired by architecture, a strong data

warehouse foundation can be constructed
using a triangular structure that is made
of 1) foundational information needs, 2)
foundational data architecture, and 3)
foundational technology stack.

Future iterations will be built on top of this

triangular structure. Foundational
understanding of information needs has
to be established to provide context for the
data warehouse. High-level data
modeling has to be completed to handle
the common business entities of your
organization. The right technologies have
to be selected so that the stack is flexible
yet solid for future development.

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 Follow Info-Tech’s approach to creating a robust data
warehouse foundation
Business needs are going to constantly be evolving, with data and information needs of users following
suit. Without creating a base from which you can adapt to these changes, IT runs the risk of alienating
business users and hindering your company’s growth.

Info-Tech’s methodology will take you through the following challenges:

1 Identification of business processes 2 Standardizing data modeling guidelines

A data warehouse is destined for failure if its functions are not Neglecting to devote appropriate time and resources to ensuring
directly tied to facilitating business processes and activities. In-depth the relationships between data assets are sound will compromise
brainstorming sessions to get to the root of business opportunities reaching the end goal of an enterprise-wide view.
and frustrations will provide greater insight into how IT can construct
Solution: Info-Tech will provide your organization with a set of
the right environment.
comprehensive templates containing important considerations
Solution: Our blueprint uses in-depth brainstorming sessions as a that need to inform how data is characterized and linked within
starting point to get to the root of business opportunities and your data warehouse.
frustrations to provide greater insight into how IT can construct the
right environment.

3 Right-sizing the architecture 4 Creating sustainable governance

Data warehouses can be a central part of a data architecture or data
Without a robust governance plan for how the data warehouse will be
delivery model, but it needs to be supported by other components to
continually used and expanded upon, even the most sophisticated
provide some flexibility.
platform will become a data management nightmare.
Solution: By having a thorough understanding of the business
Solution: By discussing a wide variety of processes to consider
objectives, selecting the right pieces to your data warehousing puzzle
before jumping into the technology, your project team will have a set
is much more straightforward. Thorough descriptions of the different
of flexible guidelines to ensure the integrity of the data warehouse as
architectural pieces will help your data warehouse project team pick
the program grows.
the best technologies for your business environment.
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Keep track of your data warehouse success as your program
develops

Data Hoarder Data Organizer Data Facilitator

Data Source 1
Report Analytics

Data Source 2 Build an Data

Iteration 2
Iteration 1
Report Extensible Data Warehouse Self-Service
BI
Data Source 3 Warehouse Program
Data Source 4 Query Foundation Data Mining

Your current environment is too This blueprint focuses on building By establishing a program that
heavily reliant on point-to-point a foundation that allows for later places emphasis on governance as
sourcing of data that produces iterations to be layered on top by well as technology, your
inconsistent reporting. Without a detailing business processes that organization’s data warehouse
proper understanding of what your will inform data model and environment becomes more
users want and what the underlying architecture design. Combined sustainable, extensible, and capable
data model should be, business with creating governance bodies of providing critical value to your
intelligence capabilities are impaired and policies, this is the beginning business users.
and business satisfaction decreases. of your data warehouse program.

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 Blueprint overview – Build an Extensible Data Warehouse
Foundation
Prepare for the Data Warehouse Establish the Business Drivers and Data Plan for Data Warehouse
Foundation Project Warehouse Strategy Governance

Structure the Data Identify Essential Business Plan for the Data Warehouse
Warehouse Project Processes to Support Explore Technology Options Centre of Excellence
Inputs: Inputs: Inputs: Inputs:
• Current state and business • Detailed business • Architecture model • Data warehouse foundation
context objectives and processes scope

Outputs: Outputs: Outputs Outputs:

• Understanding of relevant • Prioritized list of processes • Understanding of current • Plan for establishing a data
roles and responsibilities to guide data warehouse vendor offerings for data warehouse center of
• Detailed project risks design warehouse solutions excellence
• Roadmap for data
Data Warehouse Technology
warehouse foundation
Foundation Project Capability Map
activities
Plan
Position Descriptions

Data Warehouse
Foundation Work
Breakdown Structure Create the Core Data Model
Inputs:
Data Warehouse Define Operating Procedures
• Identified data elements
Steering Committee Inputs:
that support business
Charter • Data warehouse foundation
processes
Data Warehouse Create an Architectural scope
Program Charter Outputs: Strategy
• Core “Rosetta Stone” Inputs: Outputs:
documents that will inform • Key processes • Documented procedures
Review Data Management core data warehouse for data
Impacts tables Outputs: handling/manipulation
Inputs: • High-level data warehouse • Service-level agreements
• Current state of data architecture model
Business Data Glossary Data Warehouse
management practices
Data Warehouse SOP Workbook
Data Classification Architecture Planning
Outputs:
Tool Data Warehouse
• Identified data management Inventory Tool
SLA
initiatives that will support
Master Data Mapping
data warehouse success
Tool

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Use these icons to help direct you as you navigate this
research
Use these icons to help guide you through each step of the blueprint and direct you to content related to
the recommended activities.

This icon denotes a slide where a supporting Info-Tech tool or template will help you perform
the activity or step associated with the slide. Refer to the supporting tool or template to get
the best results and proceed to the next step of the project.

This icon denotes a slide with an associated activity. The activity can be performed either as
part of your project or with the support of Info-Tech team members, who will come onsite to
facilitate a workshop for your organization.

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Info-Tech offers various levels of support to best suit your
needs

Guided
DIY Toolkit Implementation Workshop Consulting

“Our team has already “Our team knows that “We need to hit the “Our team does not
made this critical we need to fix a ground running and have the time or the
project a priority, and process, but we need get this project kicked knowledge to take this
we have the time and assistance to off immediately. Our project on. We need
capability, but some determine where to team has the ability to assistance through the
guidance along the focus. Some check-ins take this over once we entirety of this project.”
way would be helpful.” along the way would get a framework and
help keep us on track.” strategy in place.”

Diagnostics and consistent frameworks used throughout all four options

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 Build an Extensible Data Warehouse Foundation – project
overview
Prepare for the Data Warehouse Establish the Business Drivers Plan for Data Warehouse
Foundation Project and Data Warehouse Strategy Governance
1.1 Structure the data warehouse 2.1 Identify essential business 3.1 Plan for the data warehouse centre
project processes to support of excellence
1.2 Review data management impacts 2.2 Create the core data model 3.2 Refine operating procedures
2.3 Create an architectural strategy
2.4 Explore technology options
Best-Practice
Toolkit
Discuss structuring your project team, Walk through how to characterize Plan for the formation of a data
defining success metrics and risks, operational, tactical, and ad hoc warehouse center of excellence.
and organizing a steering committee. business processes that will guide the
Discuss defining standard operating
data warehouse.
Discuss the impacts of other data procedures and service-level
management practices on your data Discuss the four “Rosetta Stones” for agreements for the data warehouse.
warehouse foundation project. data modeling.
Develop an architecture strategy
based on business and data needs,
and review the data warehouse
Guided vendor landscape.
Implementations
Module 1: Module 2: Module 3:
Prepare for the Data Warehouse Establish the Business Drivers and Data Plan for Data Warehouse Operations
Foundation Project Warehouse Strategy
Onsite
Workshop

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 Workshop overview
Contact your account representative or email [email protected] for more information.
Preparation Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4
Pre-Workshop Structure the Foundation Identify the Business Develop the Data and Review Technology and
Project Processes Architecture Models Plan for Governance
• Finalize workshop
itinerary and scope. 1.1 Identify foundation project 2.1 Understand the most 3.1 Walk through the four- 4.1 Develop a technology
• Identify workshop team and create a RACI fundamental needs of column model and capability map to
participants. chart. the business. business entity visualize your desired
• Gather strategic 1.2 Develop timelines for 2.2 Define the data modeling as a starting state.
documentation. foundation project warehouse vision, point for data modeling. 4.2 Establish a data
• Engage necessary completion. mission, purpose, and 3.2 Create data models warehouse center of
stakeholders. 1.3 Define critical success goals. using the business data excellence.
Activities

factors, key performance 2.3 Detail the most glossary and data 4.3 Create a data
metrics, and project risks. important operational, classification. warehouse foundation
1.4 Define the current and tactical, and ad hoc 3.3 Identify master data roadmap.
future states for key data activities the data elements to define 4.4 Define data warehouse
management practices. warehouse should dimensions. service-level
support. 3.4 Design lookup tables agreements.
2.4 Link the processes based on reference 4.5 Create standard
that will be central to data. operating procedures.
the data warehouse 3.5 Create a fit-for-purpose
foundation. data warehousing
model.

1. Workshop Itinerary 1. Job Descriptions and RACI 1. Data Warehouse Vision 1. Business Entity Map 1. Technology Capability
2. Workshop Participant 2. Data Warehouse and Mission 2. Business Data Glossary Map
List Foundation Project Plan 2. Documentation of 3. Data Classification 2. Project Roadmap
Deliverables

3. Work Breakdown Structure Business Processes Scheme 3. Service-Level Agreement

4. Data Warehouse Steering 3. Data Warehouse 4. Data Warehouse 4. Data Warehouse
Committee Charter Program Charter Architecture Model Standard Operating
Procedure Workbook

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