Monthly Archives: September 2007
M&A and Divestitures Need Effective Data Integration
Every experienced CIO has been through an acquisition, merger or divestiture in his/her career. The pressure cooker starts when the CEO makes promises to the street and starts the results clock ticking. Expectations set during the pre-acquisition due diligence and planning process—expectations about operational metrics, timelines, and financial results— often bear little resemblance to post-acquisition reality. In my experience with our customers using our technology during M&A, data and how it’s managed plays a central role in meeting the street-committed results.
Putting aside the due diligence process, a challenge unto itself, typical post-merger projects that put data in the center of success are usually big ticket, highly visible IT efforts. Data Fragmentation and the challenges therein are really magnified when two IT organizations are forced to come together or in some cases, wrestle together.
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An Honest View of Your EDW Assessment
Let’s assume that you’ve got an Enterprise Data Warehousing (EDW) program in place. Now take an honest look. Is your EDW program going well? Is it serving your business groups or are they constantly asking for more?
And, no matter how successful you are, have you thought about what you should do to take your EDW program to the next level to enable time- and cost-effective information access and performance management solutions?
Want to get started answering these questions? I encourage readers to take Informatica’s free online enterprise data warehousing assessment and take a look at my recent white paper, A Case for Assessing Your Enterprise Data Warehousing Readiness. Don’t worry, both are free!
Be honest
Each question’s response is ranked low, medium and high, with “next steps” listed for you to explore. You should answer based on where you are now, not where you are going to be some day, maybe, if the business would just give you the resources and money to do everything you want.
The top score is 50, but even the “best” companies I know do not really score close to that level if they are truly answering where they are now. Many can have all the latest technologies and a lot of resources but have not really implemented across their enterprise. They have developed some awesome silos of “information nirvana,” but there are still many, many data silos working loosely coupled to these best-in-class silos.
When taking the assessment it is best to validate your responses with a business perspective. Also, if you have a systems integrator or consultant who is a trusted advisor have him or her fill out the assessment for you.
Some of the folks who fill out the assessment are not self-critical enough to depict what is truly happening in their enterprise. Often, IT folks are unaware of or do not consider two key pockets of data in their assessments:
- First, many enterprise applications are developing their own reporting and analytics solutions. These applications should be components of an overall EDW program, not competing projects.
- Second, and most frequently ignored, most enterprises have numerous and often significant data shadow systems (DSS). They build these systems using Microsoft Excel, and often Microsoft Access or SAS. Companies build these systems because the data they need is not available in the EDW environment. Other reasons might be that they cannot use the EDW’s unstructured data or they need data that is updated in real-time (or at least more frequently than it is in the EDW environment.)
Being big isn’t enough
Too many people think that they have solved their enterprise’s data-integration needs because they have large-terabyte data warehouses. But if the business users are getting a lot of data out of their enterprise applications (and then have to reconcile the data with the DW) or they spend a lot of time building and using data shadow systems then their job isn’t done yet.
Rather than developing a comprehensive, enterprise-wide EDW program, they’ve forced the business groups to build out the data-integration solution through their data shadow systems. When you examine your assessment results be sure to develop a plan that takes these results into account.
Take the survey with a critical eye toward what can you add or enhance to improve business ROI from your EDW efforts. It’s probably time to be planning for next year. Don’t be blind, everyone needs to improve or expand. You might have been doing a great job, but you’ve been too conservative in implementing new EDW architecture, technology and organizational approaches.
Are You Ready for Enterprise Data Warehousing?
Take a step back for a minute and ask yourself if your organization is ready for enterprise data warehousing (EDW). Or, if you’re already doing it, how is it going – I mean, how is it really going? And no matter how successful you’ve been, what can you do next for your business?
Many of us are in the budgeting phase, planning how to spend our budgets for 2008. Traditionally, we make our personal New Year’s resolutions in December, looking back over the previous year to see what we want to improve. But in business the best time for that retrospection is NOW so that you have time to influence what you do next year. Part of that retrospection should be assessing your readiness for EDW.
EDW is a process. It is not as simple as switching on a light switch and you suddenly have EDW capability and benefits.
Your enterprise must understand and commit the people, processes and products necessary to achieving an EDW solution that establishes data as your corporate asset.
This is why my recent white paper, A Case for Assessing Your Enterprise Data Warehousing Readiness, encourages readers to take Informatica’s free online enterprise data warehousing assessment.
The EDW assessment helps you evaluate where you are and helps you start creating the blueprint to get you to EDW. And, just as with a house, you need that blueprint to successfully build the house you want.
Experience has shown that companies that are successful with EDW had a clear understanding of their requirements from the beginning. They undertook the process in phases, using checks and balances to ensure that each step met their goals.
An enterprise data warehousing assessment assists you in examining where you are, where you should be and finally recommends how to achieve an EDW solution. The assessment steps:
• Ascertain your current environment and existing business needs
• Compare above with industry best practices and benchmark your firm with other firms along the progression from management reporting to EDW
• Perform a gap analysis between where you are and where you should be
• Recommend what steps would help move you towards an EDW solution
You wouldn’t drive down the highway with your eyes shut, so why would you approach EDW without knowing where you’re going? Give the assessment a try, and let me know how you did by leaving a comment here, or sending me an email.
ICC’s Driving New Data Integration Technology Requirements
We’ve been discussing the three pillars of an ICC, organization, process and technology, for a while now. In this segment, I’ll focus on a range of technology requirements facing ICC implementations teams, whether they are starting from scratch or morphing a set of disparate solutions into a common infrastructure. It goes without saying, to meet the demand of a broader set of enterprise needs rather than those of a single line of business, the infrastructure powering an ICC needs to evolve and mature.
High Availability
One of the first aspects related to infrastructure is the need for high availability. This pertains to the overall integration infrastructure environment. “Shared Infrastructure” by its very nature increases the need for reliability. An outage of a single point solution is acceptable and explainable but when several organizations are relying on solutions delivered by an ICC, outages can significantly impact revenue and productivity.
Are You Prepared for the Q4 Push?
Now that you’re back “mentally” from the summer it’s time to focus on your fall activities to prepare you for the Q4 push. But before you get to the Q4 fire drills there is one big task ahead of you – planning for next year and getting your budget approved.
We talked last time about connecting your data projects with business initiatives and I’d like to review the process in relation to getting your budget submission completed and approved.
It’s really a simple process, of course with a lot of politics thrown in. (Sorry, but you’ll have to handle those yourself!) To play the game you have got to understand what the business is planning both strategically and tactically, as well as what programs or projects are being planned and funded to those objectives. You’ve got to have a queue of projects that you feel need to get done along with others that you keep hoping there will be time and resources for someday. The time is now.
First, learn about the business strategy and the initiatives (programs and projects) planned to support them. Second, think about your data-integration and enterprise data-management projects in that business light.
What DI or EDM projects would help various business initiatives succeed? After all, most of these business initiatives need data, data integration and some form of performance management in order to succeed. The business may not have made that connection, but it’s up to IT management to “connect the dots” and link the business initiatives with the EDM projects.
Once the business is linked to the EDM projects it is up to the business to push the EDM plan along with all the other components of their initiative. IT management becomes a partner, but it’s the business that’s driving the business initiative bus. What better way to get not only funding, but also business commitment and participation in your data-governance and ICC programs?
After that’s done and you’ve got next year’s plans in place, it’s time to get back to the Q4 fire-drills.

