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You're the chief information officer (CIO) and you are asked to lead an initiative to merge the data infrastructures of two insurance companies into a single consolidated data warehouse. You're asked to submit a data warehouse pros and cons analysis. Using the scenario, develop a pros and cons analysis of implementing a data warehouse. Include the following elements: 1) cost and return on investment (ROI), 2) required resources, 3) informational value, and 4) limitations.
Pros and Cons:
a) Cost and Return on Investment: How is the cost of a data warehouse worth the investment? What type of information can a data warehouse provide that would make the cost more acceptable? How will the organization benefit from a data warehouse? Are there any negative consequences of having a data warehouse? Which specific operational areas will feel the benefits?
b) Required Resources: What are the costs associated with a data warehouse? Will any additional staff be required to maintain and support the data warehouse? Be sure to explain the importance of each resource you identify.
c) Informational Value: How can the information in a data warehouse add value to the organization? What specific business opportunities could be illuminated and how would the use of a DBMS help solve business problems?
d) Limitations: What are some functions that a data warehouse cannot perform? How scalable is a data warehouse? How can the organization overcome these obstacles to ensure data quality? Support your conclusions.
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