Chapter 14 - Chapter 14. Warehousing Applications The...

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Chapter 14. Warehousing Applications The successful implementation of data warehousing technologies creates new possibilities for enterprises. Applications that previously were not feasible due to the lack of integrated data are now possible. In this chapter, we take a quick look at the different types of enterprises that implement data warehouses and the types of applications that they have deployed. The Early Adopters Among the early adopters of warehousing technologies were the telecommunications, banking, and retail sectors. Thus, most early warehousing applications can be found in these industries. For example: Telecommunication companies were interested in analyzing (among other things) network utilization, the calling patterns of their clients, and the profitability of their product offerings. Such information was and still is required for formulating, modifying, and offering different subscription packages with special rates and incentives to different customers. Banks were and still are interested in effectively managing the bank's asset and liability portfolios, analyzing product and customer profitability, and profiling customers and households as a means of identifying target marketing and cross-selling opportunities. The retail sector was interested in sales trends, particularly buying patterns that are influenced by changing seasons, sales promotions, holidays, and competitor activities. With the introduction of customer discount cards, the retail sector was able to attribute previously anonymous purchases to individual customers. Individual buying habits and likes are now used as inputs to formulating sales promotions and guiding direct marketing activities. Types of Warehousing Applications Although warehousing found its early use in different industries with different information requirements, it is still possible to categorize the different warehousing applications into the following types and tasks. Sales and Marketing Performance trend analysis. Since a data warehouse is designed to store historical data, it is an ideal technology for analyzing performance trends within an organization. Warehouse users can produce reports that compare current performance to historical figures. Their analysis may highlight trends that reveal a major opportunity or confirm a suspected problem. Such performance trend analysis capabilities are crucial to the success of planning activities (e.g., sales forecasting). Cross-selling.
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Chapter 14 - Chapter 14. Warehousing Applications The...

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