Transcript 7 Myths of Common Data Warehousing Practices: An

7 Myths of Common Data Warehousing
Practices: An Examination of Consumer,
Business, and Societal Value
Joseph A. Cazier
Ryan C. LaBrie
[email protected]
[email protected]
Introduction

Motivating factors of this research
“Privacy issues have now replaced credit card security issues as the
number one impediment to building an online business”
- Judson and Kelly, 1999
“Innovations in web technologies, data warehousing and data mining
enable Internet marketers to collect, process and analyze personal
data gathered from web users browsing and online purchase
habits on a much greater scale as it is now quicker and more
economical to do so.”
- Rose, 2001

Three levels of analysis
 Consumer, Business, and Society
 Drawing upon Marketing, Economics, and KM literature

Presentation format
 Authors will alternate presenting a full myth counter-myth
argument
 Time for feedback and Questions & Answers at the end
ISOneWorld 2003
2 of 10
Consumer Value Myths

Myth 1: The merging of current customer
data with secondary sources ultimately
increases value for the consumer.



Counter-Myth 1: The merging of current
customer data with secondary sources
ultimately hurts the consumer.


ISOneWorld 2003
Collection and merging of data with secondary
sources help consumers find products and
services they desire
Grocery coupons, special offers
Loss of privacy, risk of inaccurate information
Qwest, medical insurance, employers
3 of 10
Consumer Value Myths

Myth 2: Customer profiling, leading to
more customized service, creates
consumer value.


Counter-Myth 2: Customer profiling,
leading to more customized service,
reduces consumer value.



ISOneWorld 2003
Amazon.com: Individualized front page, wishlists, what's new for you, etc.
Lack of data provides poor profiling
Grandma's Harry Potter purchase
My wife using my account at EddieBauer.com
4 of 10
Consumer Value Myth

Myth 3: Using persuasive marketing
techniques increases consumer value.




Counter-Myth 3: Using persuasive
marketing techniques reduces consumer
value.


ISOneWorld 2003
Technologies designed to change human
attitudes and behavior
www.dole5aday.com, quit smoking, pregnancy
Customers will be happier if they use this
product
Is it ethical? If it unethical to persuade without
the use of technology, is unethical to persuade
with the use of technology?
Gambling, alcohol, pornography, and debt
5 of 10
Business Value Myths

Myth 4: Data warehousing improves
organizational productivity.



Numerous Texts, Case Studies, etc.
Wal-Mart, Amazon.com, etc.
Counter-Myth 4: Data warehousing reduces
organizational productivity.
 50-66% initial project failure rates


A re-examination by Bill Inmon

ISOneWorld 2003
Wixom & Watson 2001, Boon 1997
Closer to 10% failure
6 of 10
Business Value Myths

Myth 5: Data warehousing can improve
your organizational image.



Counter-Myth 5: Data warehousing hurts
your organizational image.



ISOneWorld 2003
Technology leader, improve corporate image
Wal-Mart increased prestige through skilled use
of technology
Companies under fire for privacy concerns
Lotus Development
Amazon.com privacy change
7 of 10
Societal Value Myths

Myth 6: Data warehousing reduces waste
and helps the environment.



Counter-Myth 6: Data warehousing
increases waste and harms the
environment.

ISOneWorld 2003
Focused mailings: a 20-40-fold decrease in
junk mail
A magazine example
Technology leads to lower barriers of entry,
allowing for more players, and an increase in
junk mail
8 of 10
Societal Value Myths

Myth 7: Governmental use of data
warehousing technologies is good for
society.



Counter-Myth 7: Governmental use of data
warehousing technologies is not good for
society.


ISOneWorld 2003
Fight against terrorist
Total Information Awareness Project
Loss of privacy, profiling and targeting subclass
of the population
What would Hitler or Hussein do with a modern
data warehouse of opposing groups?
9 of 10
Conclusions

Currently we're soliciting feedback


Next steps



Are their other myths we haven't explored?
Strengthening the theoretical foundations
Developing research agendas for data collection
with a goal of a more empirical pieces
Your turn


Comments, Criticisms, Questions?
Further interaction with us email
[email protected]
ISOneWorld 2003
[email protected]
10 of 10