Republic of the Philippines

ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY

La Paz, Iloilo City
• Trunkline: (033)320-7190 • Telefax: (033)329-4274
• Website: www.isatu.edu.ph

Name: Queen Anne Poliapoy Program, Yr. & Sect: BSIT 3-A

Case 1: Complicated Systems

The scope that can be considered that their data warehousing is a failure is that they
take a small group of people from Complicated’s main office, who have no knowledge of and
experience with data warehousing, and those people who have no experience with selected
OLAP tools lead to data warehousing failure. There are two main reasons: The first is that there
is no user involvement in determining information requirements even though they are the
targeted beneficiaries. Information was immediately accessible to sales, service, marketing, and
finance divisions around the world, but it was not the right information. It is important to
consider the usefulness of a data warehouse unit to the end user. They can provide feedback
on general issues that are causing them problems, as well as useful feedback on any missing
features that would be extremely useful in implementing the product. No data warehouse can
be considered a complete success unless the end user is satisfied with its usefulness. Second is
the poor data warehousing tool selection process, which is their arbitrary selection of OLAP
tools even though they didn't know what the function was, therefore it didn't suit the needs,
leading again to data warehousing failure.

The organization let people with no prior experience with data warehousing decide
which data would be appropriate and which data access tools would be utilized. There is no
user involvement and an inadequate data warehousing tool selection process.

The most interesting part is how the project manager handled the situation to overcome
the failure. The project manager handled the situation by taking an initial decision to web-
enable the database and taking independent initiatives from marketing and top management at
headquarters and more vocal end users.

They provide insights about how failure might be avoided in the following ways:
continuing need for a data warehouse capability; fortuitous early decision to web-enable the
warehouse; informing management must have a lack of practical application of the warehouse;
by obtaining adequate input from the end users to build a more useful system; and by
translating all the input from marketing and central management into a technical solution.

To prevent this kind of failure, I will involve the user in determining information
requirements. When end users are more involved in the process, then you are more likely to
satisfy the end user, and the data warehouse can then be a complete success. Another is to
select a more appropriate data warehousing tool.
 Republic of the Philippines
ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY
La Paz, Iloilo City
• Trunkline: (033)320-7190 • Telefax: (033)329-4274
• Website: www.isatu.edu.ph

Case 2: High Tech Company

The first warehouse project failed due to inappropriate software. They failed to
determine the overall function of the warehouse they bought because they focused on the idea
of being able to purchase it at a lower cost. As stated, the bought warehouse only contained
transactional data, therefore it was not a data warehouse but an operational data store, which
provides no useful to the company because it doesn't suit what the marketing and finance
departments needed. On their second project, they didn't mind the cost anymore because the
first data warehouse project ended up failing because of that. Here, they focused on the
rationale that once the first phase of the project was up and running, they would feel more
comfortable with the endeavor and want to commit additional resources to it, which is another
mistake. Another is that there is a lack of formal commitment from management and
organizational turnover, causing the problem of budget because the second project has already
started but it ended up being replaced by a newer project and the third project warehouse
never came to fruition due to inappropriate data sources and, again, organizational turnover.

They didn't consider all the factors and focused only on the easiest solution, even
though it was not appropriate. They missed the step of budgeting, which includes staffing and
expenditures for the project. They lack the following things to be considered: inappropriate
software, lack of formal commitment, organizational turnover, and inappropriate data sources
lead them to consecutive failures.

I find it interesting that, despite the setbacks, this company is reviving the initial in-
house warehouse project when the newest vice president hired a director to oversee decision
support and warehousing, so resources from IT have been formally committed and, with
hindsight, the project should have been proposed when the company was performing its
budgeting. That increased management commitment by formally budgeting resources for the
project.

Moreover, they provide insights about how failure might be avoided. As to their
experience and to the case, they lack so many things and miss important things to consider, and
their actions and decisions speak of how a failure might be avoided. Suggesting a warehouse
solution at a lower cost, therefore, inappropriate software, missing the planning stage that
includes budgeting and staffing, and unsuitable data sources are the things that need to be
improved.

To prevent this kind of situation again, we need to consider the first step, which is
planning. Consider what the company wants in terms of budgeting, staffing, and expenditures
for the project. There should be a step-by-step approach, appropriate data sources, and there
must be a formal commitment from management to easily pull resources from management to
assist the project and updates or discussion for organizational turnover beforehand in order for
 Republic of the Philippines
ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY
La Paz, Iloilo City
• Trunkline: (033)320-7190 • Telefax: (033)329-4274
• Website: www.isatu.edu.ph

the ongoing project and the newest project to not have complications, and the data warehouse
project will be successful.