Moving Toward Business Value in .NET framework

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Success can mean a wide variety of things to many different people Only you can determine whether the nancial investment and all the hard work was worth it What return is the organization actually seeing This is not usually easy to answer Someone needs to follow up with the business groups to determine what types of progress and success they are seeing from use of the data warehouse
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Although this may have been done as part of a post-implementation project review, it is still valuable to go back to the information you captured when the project was initiated and see what was learned during the requirements gathering process The project objectives were captured in the project charter Look at the pre-data warehouse baseline results Collect feedback on what is happening now that the data warehouse is in place It is also important to collect details about all the ways in which the data warehouse is being used Sometimes, the biggest bene ts were part of the original objectives What types of results do people see One organization determined that increasing customer retention by 05% would result in $4 million of additional revenue annually Another organization was able to improve response rates from promotions by 1%, resulting in an average increase in sales of $13 million per promotion A third organization was able to streamline and increase the accuracy of their inventory replenishment process resulting in more consistent national distribution of products This helped eliminate overstocks in some stores while others were out of stock This reduced the post-holiday inventory that had to be discounted Overall, this added an average of $3 million dollars in revenue for each major holiday season Many big successes like these are not widely publicized organizations with these kinds of results are often unwilling to reveal anything to the general public It is much more common to see a decision that resulted in $25,000 of new revenue, another decision that saves $10,000, and yet another that results in
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$5,000 a month in add-on customer sales For some companies, these are each rather small amounts, but when accumulated over time the nancial results can be signi cant How can these results be identi ed and measured It can be challenging for the data warehouse team to capture information about these bene ts This is much better done through the business management chain It may be dif cult for business people to attribute their successes to the data warehouse A report or results of an analysis may contribute to making a decision, but someone s experience and insight from non-data-warehouse input also are used to make decisions Link the collection of business value to public recognition Business managers need to work with their staff to determine when and how the data warehouse is used While this can happen informally, the best results come from a concerted effort to capture and document business results Ask everyone to submit the decision of the week, the best new report, or results that made a difference each month Provide incentives to the best submissions These do not need to be costly rewards, but something that would be valued perhaps being allowed to leave two hours early on Friday or getting to park in a favorable location Purchase a goofy trophy that is awarded to the person who made the best use of BI in the current month This can become a badge of honor as it gets passed around the group Create an environment where people can brag about what they have been able to accomplish If you do not have success stories, even small ones, then you need to jump in to gure out why There may be challenges in getting the business to use the data warehouse Another tactic that can help quantify value is to compare current business results with the baseline results articulated at the beginning of a data warehouse project If the organization s goal was to improve market penetration by 05%, what was the original penetration What is it now Every goal may not have been reached yet, but some progress is usually observed
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