Understanding the Case for Investment

Filed under: General — admin at 11:59 pm on Monday, August 4, 2008

In a data warehousing project, it is critical that the warehouse manager understands the business case for investment. This is necessary to understand the level of investment that can be justified, as hard choices will have to be made regarding the scope and size of the solution. The purpose of the business case is to identify the projected business benefits that should be derived from using the data warehouse. These benefits mayor may not be quantifiable (for example, a $5000000 saving per annum), but the projected benefits should be clearly stated. Data warehouses that do not have a clear business case tend to suffer from credibility problems at some stage during the delivery process.

Many organizations justify building data warehouses as “an act of faith.” Without exception, these projects have foundered or have been subject to very searching questions within six months of project inception.

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