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To V or Not To V
Business Intelligence Gets Virtual!

by Claudia Imhoff, President and Founder, www.intelsols.comMonday, December 15, 2008

Example 6: When to use a Virtual ODS

A real-time, virtual ODS is possible through the use of virtual data federation. For this, EII technology is used to directly access data in the operational systems. There are certain conditions that should be met before a virtual ODS makes sense. These are:

  • Operational need for real-time, not near real-time, data – The business users have a mandatory and demonstrable requirement for integrated, current data. Compliance, customer satisfaction, and just-in-time inventory are just a few of the drivers behind this need for real-time data.
  • Fairly well-integrated operational data – The amount of integration and quality processing that can be done “on the fly” is limited so source data for the virtual ODS should be in good shape to begin with. An example of this characteristic would be data from multiple instances of an ERP application such as SAP’s R3. The data exists in the same format, meaning, and usage – it just resides in multiple places.
  • Narrow queries – EII’s high performance query processing works best when the federated queries are specific in nature. They should focus on a small or limited amount of data returning an equally limited amount of data. Generally the ODS is used to examine a few records – e.g., a customer’s current transactions or a product’s worldwide inventory level.
  • Unpredictable queries – Operational BI needs and data are quite varied – e.g. a customer’s last five shipments are needed, next their last ten invoices, and then, their last three returns. A virtual ODS can easily meet these diverse and unpredictable operational requirements.

The advantages of a virtual ODS can be significant:

  • Short time to solution - A virtual ODS is quite useful when there is a short fuse on the need to access of operational data. Access can be implemented in a matter of hours or, at most a day or two.
  • Frequent change – If changes in requirements are constantly requested, the ability to quickly rework the data presentation is a great way to ensure user satisfaction. The agility of the enterprise places a high premium upon this form of ODS.
  • Security or privacy issues prevent replication of data – The need to access integrated data may be mandatory but the ability to create a physical ODS may be prohibited due to security, regulatory, or other issues.

Example 7: When to use a Physical ODS

A virtual ODS not make sense when the data volumes requested are too high, the integration and quality issues cannot be resolved at run time, and the performance of the underlying operational systems becomes compromised. A physical ODS is mandatory under these circumstances:

  • Complex data integration processing – A physical ODS may be the only place where a current “360 degree view” of important enterprise entities such as customer or product can exist. Many CRM projects used the ODS as the cornerstone for understanding an enterprise’s customers. If this data requires considerable integration processing, data consolidation using traditional ETL technology is required.
  • Extensive data quality processing – Similar to the data integration situation, many corporations must perform considerable name and address matching and hygiene along with house-holding processes before the customer data is usable. If this is the case, then a permanent, physical ODS is recommended.
  • Access by high numbers of users – If the ODS is to be made available to every frontline employee in an organization, its performance must be the principal driver and this access must not impact the operational systems performing their daily tasks. In this case, IT should construct a physical ODS.

Of course, there are some drawbacks to a physical ODS as well:

  • Data latency – A physical ODS usually does not contain realtime data; the data has some latency due to the data consolidation processes performed. This latency can be from a few seconds in duration up to 24 hours depending on the state of the operational environment, business users’ requirements, and the maturity of the data integration and quality infrastructure.
  • Potential performance problems – If the ODS is used for management reporting, operational look-ups, and BI analytics, it must be closely monitored to detect potential and real performance issues. Such a mixed workload can impact response times unless the ODS is implemented with appropriate indexing schemes, partitioning, etc.

Operational BI Integration Examples

Operational BI is the newest form of BI adopted by enterprises. It is meant to support operational decision-making by combining the results from strategic analyses with real-time and low-latency sources of data. A formal definition is:

Operational BI is a set of services, applications and technologies for monitoring, reporting on, analyzing and managing the business performance of an organization’s daily business operations.

Operational BI is used by line of business managers, front line employees and even operational processes to manage and optimize daily business operations. Its goal is to compress the time latency between knowing when an important business event has occurred and taking action in response to it. To be optimal, operational BI relies on the continuous availability of operational data and analytical results.

Example 8: The Need for Multiple Data Sources for Operational BI

The need to combine multiple, disparate sources of data in support of operational BI makes a great case for virtual data federation. The sources of data for operational BI include the operational systems, operational data store, and traditional BI analytics from the
data warehouse and/or data marts. From the point of view of the applications and business users, the data should appear as if it were in a single, seamless store of data. Of course, in reality, the data hasn’t been moved at all – it still resides in its original locations.

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