Cutter Consortium recently released a new research report, “Corporate Use of Data Warehousing and Enterprise Analytic Technologies,” which explores the trends and real-world experiences of corporations using data warehousing and business intelligence technologies.

Data warehousing and business intelligence (BI) have reached a pivotal stage; no longer are they seen as simply enabling technologies. Today, the really smart companies understand that data warehousing and BI are crucial to the long-term health of their businesses. Data warehousing and BI applications have reached strategic importance, and companies worldwide are implementing the technologies throughout their organizations in an attempt to distribute enterprise analytics to new business domains and new classes of end users.

This in-depth report, written by industry expert Curt Hall, is supported by data collected in a recent Cutter Consortium research study. The expert analysis, conclusions and insight about the role of data warehousing and BI in organizations worldwide is based on exclusive survey data from 142 companies and is illustrated with 235 full-color, useful charts and graphs, segmented and analyzed by overall, geographic, and company size responses.

"Corporate Use of Data Warehousing and Enterprise Analytic Technologies" presents an in-depth picture of how organizations are applying data warehousing and BI, where they are applying them, what issues they are encountering with application development and maintenance, and what benefits they are experiencing from their deployed applications.

Key conclusions from the report include:

  • 70 percent of companies are currently developing data warehouse and BI applications. This trend can be attributed to the fact that companies worldwide are simply being forced to integrate a variety of data sources in order to analyze customer and other data. Data warehousing and BI offer the only real solution for integrating multiple enterprise data sources at this time.
  • 41 percent of respondents say that their organizations have experienced at least one project failure, and only 15 percent of respondents claim that their data warehousing efforts to date "have been a major success." In addition, only 27 percent of companies overall indicated they feel "confident" with data warehouse technology. Much remains to be done by vendors and industry groups to make implementation easier.
  • The current use of analytical ASPs and "wireless BI" technology appear to be greatly over- hyped at this time. Although findings indicate that the use of data warehousing and BI for these application areas is projected to increase moderately over the next 6 to 18 months, current use by companies is very limited.
  • Just 43 percent of all companies surveyed indicated that they currently specify standards or guidelines for data warehouse development techniques and tools, indicating a general lack of interest by companies when it comes to implementing organizational standards for data warehouse/BI application development, maintenance and use.
  • The majority of respondents said that in order to deploy a packaged data warehouse within their organization, modification of between 25-40 percent was required to support their IT and business processes. Packaged data warehouses are very appealing, but to minimize customization, organizations should conduct a thorough project analysis to determine the major technical issues, end-user considerations, expected benefits and expected ROI.
  • The most important data sources companies are integrating to support their supply chain analytics include legacy, CRM and ERP systems followed by SCM and supplier data systems. SCI requires a data integration architecture that will support supply chain analytic applications with the ability to extract, transform, cleanse and integrate data from a variety of data sources. Many of these sources can be difficult to reach; and while everyone now knows the difficulty associated with retrieving ERP and legacy systems data, other sources can be even more difficult to access, i.e., shop floor manufacturing data.
  • Just 18 percent of organizations say they have obtained a complete or "360-degree" view of their customer data; in other words, the ability to access, integrate, and analyze pertinent data across their most important customer channels. To counter this dilemma, some companies are integrating their most important channels first, while others are using packaged applications that include prebuilt data models and analytics as well as embedded best practices (but not always the best practices for your company's needs).
  • 21 percent of organizations are using data mining tools they have developed themselves in house. However, for those organizations using commercial data mining tools, the most popular are products from Oracle, SAS Institute, SPSS and IBM.

For more information and key conclusions from this report, please visit http://www.cutter.com/itreports/RP68E.html.

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