About OR
OR Topics - Data Warehousing & Business Intelligence
RELATIONSHIP WITH OR
OR contribution to data warehousing

People with OR backgrounds are likely to have a number of skills that are pertinent to data warehousing, including:

  • extracting and interpreting data;
  • understanding quantitative analysis;
  • working in and managing multi-disciplinary project teams;
  • taking an enterprise viewpoint;
  • managing change;
  • designing and implementing effective decision support systems;
  • modelling business processes.

More specifically, OR people are well-placed to contribute to data warehousing initiatives by helping the project team to:

  • take a rational approach (e.g. cost/benefit analysis) to project justification;
  • identify and prioritise the deliverables;
  • probe and document the meaning and quality of available data;
  • decide when data are clean enough for their intended purpose;
  • choose useful and appropriate performance measures;
  • make effective use of prototyping;

and by:

  • facilitating cross-functional collaboration and compromise;
  • bridging the gaps between business and technical staff;
  • championing the use of analytic tools and thinking to improve decision making;
  • proposing and evaluating process changes that make better use of information;
  • developing models to populate parts of the data warehouse with calculated data e.g. forecasts or allocated costs;
  • pioneering the integration of new data sources with existing databases;
  • designing decision support systems and analytic applications based on data in the warehouse e.g. demand forecasting.

Clearly OR has much to offer in making a data warehouse successful.

How can a data warehouse help OR?

Once a data warehouse is available, OR stands to gain in at least three ways:

1) Availability of useful data

Detailed data, in greater volumes and from many different sources, should be much more readily available. This should:

  • allow greater accuracy;
  • support the use of more sophisticated techniques, including statistical analysis and data mining;
  • increase the range of problems that can be addressed.

2) Data preparation effort

Substantially less time is likely to be needed to collect, understand, clean and check data used for modelling and analysis. Furthermore, data from more different sources are likely to have been linked on a consistent basis already, leading to even greater time savings. Also, if large volumes of operational data have been captured automatically, sampling may no longer be needed.

3) Organisational climate

The construction of a data warehouse is likely to reflect increased management interest in quantitative analysis, and may lead to wider use of basic analysis techniques by non-OR staff and greater acceptance of more "rational" approaches to decision making.

The proliferation of data warehouses is creating opportunities in many different organisations to apply more sophisticated techniques such as statistical analysis and data mining, and to develop analytic applications in new areas such as supply chain integration, customer relationship management and e-business. For more information on the relevance of data warehousing to these areas, see other disciplines.

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