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Harvard Case - Teradata Data Mart Consolidation Return on Investment at GST

"Teradata Data Mart Consolidation Return on Investment at GST" Harvard business case study is written by Mark Jeffery, Robert J. Sweeney, Robert J. Davis. It deals with the challenges in the field of Operations Management. The case study is 20 page(s) long and it was first published on : Jan 1, 2006

At Fern Fort University, we recommend that GST implement a phased approach to consolidating their Teradata data marts, prioritizing data quality and governance, and leveraging the consolidation for improved business intelligence and decision-making. This strategy will optimize resource utilization, enhance data accuracy, and ultimately drive a significant return on investment.

2. Background

This case study focuses on GST, a global consumer goods company facing challenges with managing its growing number of Teradata data marts. The company's decentralized approach has led to data redundancy, inconsistencies, and inefficiencies in data access and analysis. This situation hinders effective decision-making across various departments like marketing, sales, and operations.

The main protagonists are John Smith, the CIO, and Mary Jones, the Director of Business Intelligence, who are tasked with finding a solution to optimize GST's data management infrastructure. They face the challenge of balancing cost savings with the need for improved data quality and accessibility.

3. Analysis of the Case Study

The analysis of this case study can be conducted through the lens of a strategic framework focusing on data management, business intelligence, and technology adoption.

Key issues:

  • Data redundancy and inconsistency: Multiple data marts hold overlapping data, leading to conflicting information and inefficient resource utilization.
  • Data access and integration challenges: Departments struggle to access and integrate data from different marts, hindering collaborative decision-making.
  • Limited data governance and quality control: Lack of centralized data governance leads to inconsistencies and data quality issues, impacting the reliability of insights.
  • High maintenance costs: Maintaining multiple data marts requires significant investment in hardware, software, and personnel, leading to inefficient resource allocation.

Opportunities:

  • Cost savings: Consolidating data marts can significantly reduce hardware and software costs, freeing up resources for other initiatives.
  • Improved data quality and consistency: Centralized data governance and quality control processes can enhance data accuracy and reliability.
  • Enhanced business intelligence and decision-making: Consolidated data provides a comprehensive view of the business, enabling better insights and informed decision-making.
  • Improved data accessibility and integration: A centralized data platform facilitates seamless data access and integration across departments.

Potential risks:

  • Implementation complexity: Consolidating data marts requires careful planning, execution, and change management to minimize disruptions.
  • Data migration challenges: Migrating data from multiple sources to a single platform can be challenging and time-consuming.
  • Resistance to change: Employees may resist changes to existing data management practices, requiring effective communication and change management strategies.

4. Recommendations

  1. Phased Consolidation Approach: Implement a phased approach to data mart consolidation, prioritizing high-value data marts and gradually integrating others. This minimizes disruption and allows for continuous improvement.
  2. Data Quality and Governance: Establish a robust data governance framework with clear data quality standards, data ownership, and data access controls. This ensures data accuracy, consistency, and reliability.
  3. Leverage Consolidation for Business Intelligence: Utilize the consolidated data platform to develop advanced business intelligence dashboards and reports, providing real-time insights into key performance indicators and enabling data-driven decision-making.
  4. Invest in Data Management Tools: Implement data management tools like data quality software, data integration platforms, and data visualization tools to streamline data management processes and enhance data analysis capabilities.
  5. Change Management and Communication: Develop a comprehensive change management plan to address employee concerns, provide training, and ensure smooth transition to the new data management infrastructure.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core Competencies and Consistency with Mission: Consolidating data marts aligns with GST's mission to improve decision-making and optimize resource utilization. It leverages the company's core competencies in data management and analytics.
  2. External Customers and Internal Clients: The improved data quality and accessibility resulting from consolidation will benefit both external customers through enhanced product offerings and internal clients through better informed decision-making.
  3. Competitors: Consolidating data marts allows GST to stay competitive by enabling faster and more informed decision-making, leading to improved operational efficiency and product innovation.
  4. Attractiveness ' Quantitative Measures: The consolidation project is expected to generate significant cost savings through reduced hardware and software expenses, improved resource utilization, and increased efficiency. The ROI can be measured through cost reduction, revenue growth, and improved operational performance.

6. Conclusion

Consolidating Teradata data marts at GST presents a significant opportunity to optimize data management, enhance business intelligence, and drive a substantial return on investment. By implementing a phased approach, prioritizing data quality and governance, and leveraging the consolidated data for improved decision-making, GST can achieve its strategic goals and gain a competitive advantage in the global consumer goods market.

7. Discussion

Alternative Options:

  • Outsource data management: This option could provide expertise and cost savings but might lead to data security concerns and reduced control over data.
  • Maintain existing data marts: This option avoids the complexities of consolidation but perpetuates inefficiencies and limits the potential for improved business intelligence.

Risks and Key Assumptions:

  • Implementation complexity: The success of the consolidation project relies on effective project management, change management, and technical expertise.
  • Data migration challenges: Data migration can be complex and time-consuming, requiring careful planning and execution.
  • Resistance to change: Employee resistance can hinder the project's success, requiring effective communication and training.

Options Grid:

OptionAdvantagesDisadvantagesRisks
Phased ConsolidationCost savings, improved data quality, enhanced business intelligenceImplementation complexity, data migration challenges, resistance to changeHigh
Outsource Data ManagementExpertise, cost savingsData security concerns, reduced control over dataModerate
Maintain Existing Data MartsNo immediate changesInefficiencies, limited business intelligenceLow

8. Next Steps

  1. Develop a detailed project plan: Define project scope, timelines, resources, and key milestones.
  2. Establish a project team: Assemble a cross-functional team with expertise in data management, business intelligence, and change management.
  3. Conduct a pilot project: Implement a pilot consolidation project on a small scale to test the feasibility and effectiveness of the approach.
  4. Communicate and train employees: Provide clear communication and training to address employee concerns and ensure a smooth transition.
  5. Monitor and evaluate progress: Regularly monitor project progress and make adjustments as needed to ensure successful implementation.

By following these steps, GST can successfully consolidate its Teradata data marts, improve data quality and governance, and unlock the full potential of its data for informed decision-making and strategic advantage.

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Case Description

This case is based on a real-life consulting engagement with a major Fortune 100 telecommunications company. The name of the firm has been disguised for confidentiality reasons. Completing the case teaches students how to develop a cost-containment ROI analysis and develop a business case for a large enterprise technology project. The class discussion focuses on strategies to understand and manage the risks of the project and organizational issues. In addition, the case teaches students good questions to ask when reviewing a complex project business case, and how to present a project for funding approval. This case is the second in a series of three cases designed to teach students ROI analysis for technology projects; the first is "B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal" and the third is the case "ROI for a Customer Relationship Management Initiative at GST."

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