DISTINCTIVES: VDDW & Traditional Data Warehouse - Side-By-Side

  • What the Traditional Data Warehouse Entails

    The VDDW Basics section describes in greater detail what a traditional Data Warehouse entails and how it fits in with the Information Supply Chain. Regardless of the design approach taken (normalized or dimensional), the traditional DW will contain data that can generally be classified into one of two categories: master data or transaction data.

    Within the traditional DW, performance analysis at a gross margin level is typically easy to achieve, owing to the fact that the accounting and operational systems from which the DW pulls do a good job of tracking the connections between financials and operational data at a COGS-level.

    In the traditional DW, all of a company’s operating expenses are typically captured by GL account, even down to individual journal entries, but these entries are not typically connected directly to operational transaction data like shipments or invoices, and therefore aren’t usually associated with products or trading partners either. They exist as as an unapportioned schmeer of overhead, categorized only by accounts or cost centers, with no ready join path to the rest of the DW.



  • How the Traditional Data Warehouse and VDDW compare

    The traditional DW rates well for scalability. Large enterprises are accustomed to managing data warehouses in the terabyte to even the petabyte range. However, as compared to the VDDW, the traditional data warehouse ultimately falls short in the integration sector, which pulls down its marks nearly everywhere else. The traditional DW simply does not (usually) link operating expenses with operational data, nor the business processes with which those expenses are associated, meaning there are limits to the depth of analysis that can be performed with ease, leading to a morass of downstream performance-related point solutions and spreadsheets employed to help understand performance at a NOP level. This impacts perceived accuracy, organizational buy-in, and ultimately the value derived from the DW.



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