International Journal of Computer Trends and Technology (IJCTT) - volume4 Issue5May 2013 ROI Estimation of Data Warehouse with

Bottom Up Architecture and Top Down Implementation

Bikramjit Pal 1, Awanish Pati Mishra2, Mallika De 3 Assistant Professor, Department of Computer Application JIS College of Engineering, Kalyani, Nadia 741235, West Bengal, India 2 Student, MCA 3 rd Year, JIS College of Engineering, Kalyani, Nadia
1

Department of Engineering and Technological Studies University of Kalyani, Kalyani, Nadia 741235, West Bengal, India

ABSTRACT: As we all know that implentation of a data warehouse requires a huge monetary investment. In this paper we studied the ROI for a particular data warehouse. The purpose of this paper is to calculate the Return on Investment on a data warehouse which has been designed using the concept of bottom- up architecture and top -down implementation. This paper compares the said design with other designs and we have shown that the ROI is better in case of the design discussed in this paper. Keywords: Return on investment, architecture, data warehouse, bottom up, top down Introduction: A Data Warehouse (DW) is a collection of technologies whose purpose is to enabl knowledge workers (executive, manager, analyst, etc) to make better and faster decisions. Many researchers and practitioners share the understanding that a data warehouse architecture can be formally understood as layers of materialized views on top of each other. A data warehouse architecture exhibits various layers of data in which data from one layer are derived from data of the lower layer. Data sources, also called operational databases, form the lowest layer. They may consist of structured data stored in open database systems and legacy systems, or unstructured or semi-structured data stored in files. The central layer of the architecture is the global (or primary) Data Warehouse. The global data warehouse keeps a historical record of data that result from the transformation, integration, and aggregation of detailed data found in the data sources. Usually, a data store of volatile, low granularity data is used for the integration of data from the various sources: it is called Operational Data Store (ODS). The Operational Data Store, serves also as a buffer for data transformation and cleaning so that the data warehouse

is populated with clean and homogeneous data. The next layer of views are the local, or client warehouses, which contain highly aggregated data, directly derived from the global warehouse. There are various kinds of local warehouses, such as the data marts or the OLAP databases, which may use relational database systems or specific multidimensional data structures. All the data warehouse components, processes and data are -or at least should be- tracked and administered from a metadata repository. The metadata repository serves as an aid both to the administrator and the designer of a data warehouse. Indeed, the data warehouse is a very complex system, the volume of recorded data is vast and the processes employed for its extraction, transformation, cleansing, storage and aggregation are numerous, sensitive to changes and time varying. The metadata repository serves as a roadmap that provides a trace of all design choices and a history of changes performed on its architecture and components.A data warehouse architecture depicting the above concepts is shown in the Fig 1.

Fig 1

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International Journal of Computer Trends and Technology (IJCTT) - volume4 Issue5May 2013

Data warehousing has become increasingly important to modern companies as the amount of data necessary to remain competitive and make informed decisions about the future of a company has become greater and greater. A company's entire data warehouse often consists of a collection of data marts, sets of data that typically are focused on a particular department or area of the company. Combined into a data mart warehouse, these data marts help support the information system of the entire company. A data mart might be dedicated to customer data or sales information, or it could be constructed specifically to support a company's human resources department. In some cases, data marts are compiled from data from the main data warehouse. Many companies, though, take a bottom-up approach to data warehousing and instead build the overall data ware house by compiling data mart data into smaller systems, then combining them into a company-wide data warehouse. A data warehouse build with data mart is shown in Fig2. One important factor in building a data mart is usability. Because the data mart usually is aimed at supplying information to a specific department for a specific purpose, the data must be easily accessed and processed. A company's Information Technology department or Management Information Systems specialists often focus on this area, ensuring that an easy-to-use interface exists so that employees, including managers and other high-level personnel, can access the data mart data and use it within the course of their jobs.

Fig 2 Pre Study: We have studied the architectural design of Bottom up architecture and Top down implementation model [1]. The model clearly expalins the fact how users can use a data marts without the warehouse for their reperting and analysis purpose. Fig 3 explains the model.

Fig - 3

Return on Investment Calculation(ROI): What is ROI? Why its calculation is important? Many companies had invested heavily in Internet, e-business, and information technology. As the technology bubble burst in 2000 many executives were asking Where is the return on investment? When capital to invest is scarce new e-business and information technology (IT) projects must show a good return on investment (ROI) in order to be funded. ROI is defined as the calculation of various parameters to know that the money one has invested in his or her business is worthwhile or not. Its calculation shows us where we will be after a certain period of time. One conceptual definition is that ROI is a projects net output (cost savings and/or new revenue that results from a project less the total project costs), divide by the projects total inputs (total costs), and expressed as a percentage. The inputs are all of the project costs such

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International Journal of Computer Trends and Technology (IJCTT) - volume4 Issue5May 2013
as hardware, software, programmers time, external consultants, and training. Therefore if a project has an ROI of 100%, from this definition the cash benefits out of the project will be twice as great as the original investment. Should a manager invest a companys money in an e-business project if it has a projected ROI of 100%? There are many factors one should consider when making an investment decision. These factors include, but are not limited to those listed below: Total Cost =Hardware + License + Support We have made some assumptions to calucated the ROI for a particular data warehouse. The assumptions are: size of the warehouse is 100 Gb, implementation is using B+ tree ( order is 3 and no. of nodes is 3000), No. of users is 200 and Latency time is 10 ns. Now, Data Return=100GB * 2logbn* 200/10ns=100*(2*7.09)*200/10=316,000/10*(1/10^9)= 316,000/(1/10^8)= 316,000*10^8 =3.16*10^13 Total Cost =H/w + License + Support =576000 + 2500000 + 1100000 (All Assumptions) =4,176,000 Therefore, ROI for DW=DR/TC =3.16*10^13/4,176,000 =INR 7,567,049.808 For ROI of Data Mart only. 5.The IT context of the project: that is, does the project align with the IT objectives of the firm, and how does it fit within the portfolio of all IT investments made by the firm? Let the DW is divided into 10 Data mart each have 10 employ. Data Return=32GB*(2*7.09)*70/10*10^-9 =3.5392*10^12 TC=576000 +2500000 +100000 [In data mart, data warehouse support charge is not effective] =3,176,000 Therefore, ROI for Data Mart=DR/TC =3.5392*10^12/3,176,000 =INR 1,114,357.683 This calculated ROI is for a single data mart. Thus if we have 10 data marts the ROI would be 10 times. Data Return =(Data volume *Depth of Analysis*No of Users)/Latency and

1.The assumptions underlying the costs of the project.

2.The

assumptions

underlying

the

potential

benefits.The ability to measure and quantify the costs and benefits. 3.The risk that the project will not be completed on time and on budget and will not deliver the expected benefits. 4.The strategic context of the firm; that is, does the project fit with the corporate strategy?

We have calculated two values of ROI one for the design with data warehouse and the other for the design without data warehouse. ROI is calculated by usuing the following formula:

ROI for data warehouse= Data Return / Total Cost, where

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International Journal of Computer Trends and Technology (IJCTT) - volume4 Issue5May 2013
Conclusion: Here we conclude that the Return on Investment coming from the design which has been implemented using bottom up approach and top down implementation gives a high ROI in comparison with an implementation using a simple data warehouse. In future the implementation data models can be modified to achieve a high ROI.
Reference: [1] B.Pal, Comparison of Data Warehouse Architecture Based on Data Model, IJITKM, July-December 2010, 2, Number 2, pp. 303304. [2] Data Warehousing and OLAP: A Research-oriented Bibliography by A.Mendelzon, C.Hurtado and D.Lemire. [3] Golfarelli, M., Rizzi, S., Designing the Data Warehouse: Key Steps and Crucial Issues, Journal of Computer Science and Information Management, Volume2, Number3, 1999. [4] Inmon, W.H., Building the Data Warehouse, Second Edition, 1996. [5] Chowdhury, R., Pal, B.,Proposed Hybrid Data Warehouse Architecture Based on Data Model, International Journal of Computer Science and Communication, Vol. 1, No. 2, 2010, pp. 211 213. [6] Blaschka, M., Sapia, C., Hofling, G., On Schema Evolution in Multidimensional Databases, Proceedings of DaWaK, (1999), pp. 153164. [7] Patel, A., Patel, J., M., Data Modeling Techniques for Data Warehouse, International Journal of Multidisciplinary Research, 2 (2), (2012), pp. 240246.

Communicating Author

Mr. Bikramjit Pal is currently working as Assistant Prof. (AGP 8000) in the Department of Computer Application, JIS College of Engineering, Kalyani, Nadia, West Bengal from October 2006. He has an overall experience of 15 years of teaching post graduate and under graduate students. He is an MCA from Berhampur University, Berhampur, Orissa of 1998 batch and has obtained B. Sc. (Hons.) degree in Statistics from B. H. U., Varanasi in 1995. Mr. Pal has been involved in active research for the last four years and presently pursuing Ph. D. from Department of Engineering and Technological Studies, University of Kalyani, West Bengal.

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