Strategic Alignment in Data Warehouses Two Case Studies A thesis

433 Pages·2007·4.38 MB·English

Strategic Alignment in Data Warehouses
Two Case Studies

A thesis submitted in fulfillment of the requirements for the degree of
Doctor of Philosophy

Neera Bhansali

School of Business Information Technology
Business Portfolio
RMIT University
February 2007
DECLARATION

I certify that except where due acknowledgement has been made, the work is that of the
author alone; the work has not been submitted previously, in whole or in part, to qualify for
any other academic award; the content of the thesis is the result of work which has been
carried out since the official commencement date of the approved research program; and, any
editorial work, paid or unpaid, carried out by a third party is acknowledged.

Neera Bhansali
Date: Feb 10, 2007

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ACKNOWLEDGEMENTS

I thank Prof. Brian Corbitt and Prof. Bill Martin, for their guidance, encouragement and
support during the course of this research and writing of the thesis. I also thank Dr. Hepu
Deng for his interest in this work.

Many people have helped during the course of this research. I am grateful to all of them for
their support. I thank Dr. Andrew Finegan, for facilitating the start of this research. I thank
Mr. Kim Ross, CIO, Neilsen Media Research and Mr. Tim Eitel, CIO, Raymond James
Financial for providing me with the opportunity for carrying out the case studies.

I would also like to thank Mr. Don Carlson, Ms. Katherine Thalheimer, Ms. Shannon Cobb-
Tappan, Ms. Marie Gutgesell, Ms. Lynn Peterson- Reed, Ms. Beth Terlip, Ms. Rhoda
Foxworthy, Mr. James Woble, Ms. Christine Jackola, Mr. Mark Abbott, Mr. Rushabh Mehta,
Mr. Mike Shelley, Mr. Nolan P Scott, Mr. Scott Freitas, Mr. Ed Ferrar, Mr. Jay Bentley, Ms.
Jamie Silvers, Ms. Sarah Stanton, Mr. William Krusen, Ms. Sandy Quase, Mr. Brian
Freeman, Ms. Sylvia Croft and Ms. Nancy Walter for their help in carrying out this research.
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ABSTRACT
Strategic Alignment in Data Warehouses – Two Case Studies
This research investigates the role of strategic alignment in the success of data warehouse
implementation. Data warehouse technology is inherently complex, requires significant
capital investment and development time. Many organizations fail to realize the full benefits
from it. While failure to realize benefits has been attributed to numerous causes, ranging from
technical to organizational reasons, the underlying strategic alignment issues have not been
studied.
This research confirms, through two case studies, that the successful adoption of the data
warehouse depends on its alignment to the business plans and strategy. The research found
that the factors that are critical to the alignment of data warehouses to business strategy and
plans are (a) joint responsibility between data warehouse and business managers, (b)
alignment between data warehouse plan and business plan, (c) business user satisfaction, (d)
flexibility in data warehouse planning and (e) technical integration of the data warehouse.

In the case studies, the impact of strategic alignment was visible both at implementation and
use levels. The key findings from the case studies are that
a) Senior management commitment and involvement are necessary for the initiation of
the data warehouse project. The awareness and involvement of data warehouse
managers in corporate strategies and a high level of joint responsibility between
business and data warehouse managers is critical to strategic alignment and successful
adoption of the data warehouse.
b) Communication of the strategic direction between the business and data warehouse
managers is important for the strategic alignment of the data warehouse. Significant
knowledge sharing among the stakeholders and frequent communication between the
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data warehouse managers and users facilitates better understanding of the data
warehouse and its successful adoption.
c) User participation in the data warehouse project, perceived usefulness of the data
warehouse, ease of use and data quality (accuracy, consistency, reliability and
timelines) were significant factors in strategic alignment of the data warehouse.
d) Technology selection based on its ability to address business and user requirements,
and the skills and response of the data warehousing team led to better alignment of the
data warehouse to business plans and strategies.
e) The flexibility to respond to changes in business needs and flexibility in data
warehouse planning is critical to strategic alignment and successful adoption of the
data warehouse. Alignment is seen as a process requiring continuous adaptation and
coordination of plans and goals.

This research provides a pathway for facilitating successful adoption of data warehouse. The
model developed in this research allows data warehouse professionals to ensure that their
project when implemented, achieve the strategic goals and business objectives of the
organization.
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TABLE OF CONTENTS
DECLARATION.......................................................................................................................i
ACKNOWLEDGEMENTS.....................................................................................................ii
ABSTRACT.............................................................................................................................iii
LIST OF FIGURES.................................................................................................................ix
LIST OF TABLES....................................................................................................................x
GLOSSARY...........................................................................................................................xiii

1 INTRODUCTION............................................................................................................1
1.1 Overview....................................................................................................................1
1.2 Data Warehouse..........................................................................................................2
1.3 Challenges in Data Warehousing...............................................................................4
1.4 Purpose of Study.........................................................................................................5
1.5 Strategic Alignment....................................................................................................7
1.6 Current Status of Strategic Alignment Research........................................................8
1.7 The Gap......................................................................................................................9
1.8 Contribution of this Research...................................................................................10
1.9 Research Methodology.............................................................................................11
1.10 Organization of Remaining Chapters.......................................................................12

2 LITERATURE REVIEW ON DATA WAREHOUSE...............................................15
2.1 Benefits of a Data Warehouse..................................................................................15
2.2 Features of a Data Warehouse..................................................................................18
2.3 Difference between Data Warehouse and Traditional Operational Systems...........20
2.4 Data Warehouse Development Process....................................................................23
2.5 Data Warehouse Architectures.................................................................................30
2.6 Factors Influencing the Success of a Data Warehouse.............................................33
2.6.1 Organization Factors that Influence Success of a Data Warehouse.................35
2.6.2 User Factors that Influence Success of a Data Warehouse..............................38
2.6.3 Technology Factors that Influence Success of a Data Warehouse...................39
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2.6.4 Data Factors that Influence Success of a Data Warehouse..............................43
2.7 Summary...................................................................................................................45
3 STRATEGIC ALIGNMENT........................................................................................47
3.1 Literature Review on Strategic Alignment...............................................................47
3.1.1 Need for Strategic Alignment between IT and Business..................................47
3.1.2 The Strategic Alignment Model.......................................................................50
3.1.3 Developments in Strategic Alignment Research..............................................54
3.1.4 Alternatives to the Strategic Alignment Model................................................59
3.1.5 Enablers of Business-IT Alignment.................................................................64
3.2 Research Propositions and Research Model.............................................................68
3.2.1 Joint Responsibility between Data Warehouse and Business Managers..........69
3.2.2 Alignment between Business Plan and Data Warehouse Plan.........................73
3.2.3 Business User Satisfaction...............................................................................74
3.2.4 Technical Integration........................................................................................76
3.2.5 Flexibility.........................................................................................................79
3.2.6 Conceptual Model............................................................................................81
3.3 Summary...................................................................................................................84

4 RESEARCH METHODOLOGY..................................................................................86
4.1 Introduction..................................................................................................................86
4.2 An Overview of Research Approaches........................................................................86
4.2.1 Observation.......................................................................................................87
4.2.2 Archival Research and Content Analysis.........................................................88
4.2.3 Survey Research...............................................................................................88
4.2.4 Evaluation Research.........................................................................................89
4.2.5 Experimental Research.....................................................................................89
4.2.6 Simulation.........................................................................................................89
4.3 Justification for Adopting the Case Study Methodology.............................................90
4.4 The Multiple Case Study Research Approach..............................................................93
4.5 Research Design and Strategy......................................................................................95
4.5.1 Data Analysis....................................................................................................98
4.6 Design of the Interview Instruments............................................................................99
4.7 Criteria for Case Selection .........................................................................................101
4.8 Conduct of Case Study...............................................................................................102
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4.9 Data Collection through Interview Instruments and Questionnaire...........................104
4.9.1 Field Study Details ........................................................................................104
4.9.2 Description of Case Study Participants..........................................................106
4.10 Summary....................................................................................................................107

5 CASE STUDY - NIELSEN MEDIA RESEARCH....................................................108
5.1 Introduction............................................................................................................108
5.2 Overview of the Company......................................................................................108
5.3 Background of the Data Warehouse.......................................................................110
5.4 The Data Warehouse Development........................................................................111
5.5 Presentation of Findings from the Case Study and Analysis of Results................114
5.5.1 Assessing Joint Responsibility between Business and Data Warehouse
Managers........................................................................................................119
5.5.2 Assessing Alignment between Business and Data Warehouse Plans.............127
5.5.3 Assessing the Degree of Business User Participation and Satisfaction..........143
5.5.4 Assessing the Degree of Technical Integration..............................................155
5.5.5 Assessment of Flexibility in Data Warehouse Planning................................163
5.6 Conclusion..............................................................................................................168

6 CASE STUDY RAYMOND JAMES FINANCIAL..................................................170
6.1 Introduction............................................................................................................170
6.2 Overview of the Company......................................................................................170
6.2.1 Business Objectives........................................................................................171
6.3 Background of the Data Warehouse.......................................................................172
6.3.1 Data Warehouse Objective.............................................................................174
6.4 Data Warehouse Development...............................................................................174
6.5 Presentation of Findings from the Case Study and Analysis of Results................177
6.5.1 Assessing Joint Responsibility between Business and Data Warehouse
Managers........................................................................................................181
6.5.2 Assessing Alignment between Business and Data Warehouse Plans.............189
6.5.3 Assessing the Degree of Business User Participation and Satisfaction..........206
6.5.4 Assessing the Degree of Technical Integration..............................................220
6.5.5 Assessment of Flexibility in Data Warehouse Planning................................228
6.6 Conclusion..............................................................................................................235
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7 SUMMARY AND CONCLUSION.............................................................................237
7.1 Introduction............................................................................................................237
7.2 Case Study Analysis and Summary of Findings....................................................239
7.3 Research Model......................................................................................................258
7.4 Contribution of the Research..................................................................................262
7.5 Limitations of this Study........................................................................................265
7.6 Recommendations for Future Research..................................................................266

REFERENCES.....................................................................................................................269

APPENDIX 1 DESIGN OF RESEARCH INSTRUMENTS...........................................289
A.1 Design of Interview Instruments for Senior Business Managers 290
A.1.1 Questions for Senior Business Managers.......................................................290
A.1.2 Questions for Senior Business Managers Regrouped According to Research
Questions........................................................................................................291
A.2 Design of Interview Instruments for Data Warehouse Managers 293
A.2.1 Questions for Data Warehouse Managers......................................................294
A.2.2 Questions for Data Warehouse Managers Regrouped According to Research
Questions........................................................................................................295
A.3 Design of Interview Instruments for Business Users 297
A.3.1 Questions for Business Users.........................................................................297
A.3.2 Questions for Business Users Regrouped According to Research Questions298

APPENDIX 2 INTERVIEW SCRIPTS NIELSEN MEDIA RESEARCH CASE STUDY
........................................................................................................................................301

APPENDIX 3 INTERVIEW SCRIPTS RAYMOND JAMES FINANCIAL CASE
STUDY...................................................................................................................................343

APPENDIX 4 QUESTIONNAIRE DATA........................................................................395

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LIST OF FIGURES

Figure 2.1 Architecture of a Data Warehouse..........................................................................24
Figure 3.1 Strategic Alignment Model.....................................................................................51
Figure 3.2 Research Model ......................................................................................................82
Figure 4.1 Case Study Method ................................................................................................95
Figure 5.1 Nielsen Media Research Third Data Warehouse Architecture.............................113

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