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 iv 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.
| Identifer | oai:union.ndltd.org:ADTP/210179 |
| Date | January 2007 |
| Creators | Bhansali, Neera, nbhansali@yahoo.com |
| Publisher | RMIT University. Business Information Technology |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | http://www.rmit.edu.au/help/disclaimer, Copyright Neera Bhansali |
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