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September 8, 2006
OLAP - Hotter Than Ever
Time flies. Its already more than 10 years ago that the term OLAP was coined. It was Arbor Software, now part of Hyperion, that was instrumental in the research of Dr. Codd. The idea of multidimensional databases is even older. Actually, its older than the relational database.
Today, OLAP has a crucial role in the governance discussions organization have when they need to weigh flexibility against control. Business users work in an agile world. Todays insight is tomorrows old news. Organizational structures become more fluid, making the company orgchart look like a dancing Octopus. Mass customization trends make there is no standard set of products anymore that organizations sell. Customers buy their own combination. And customers are less easy to define, they shop direct and also buy as part of purchasing collectives, or go for your second-hand market. Business hierarchies change on a daily basis.
Ad hoc querying seems such a beautiful solution. They offer the flexibility of making every single combination possible. But is it the right combination? Different people each creating a query to get to the same data, most likely get different answers. And who is right and who is wrong? Well never know, as the next query, again slightly different, is on its way already. This way of working, offering the ultimate flexibility, in the end does more harm than using spreadsheets. Spreadsheets we know are not reliable as a data source, all we did with ad hoc query tools is institutionalize bad results. Management theory argues for collaborative teams, yet this very collaboration grinds to a halt when the collaborators arrive at their own different answers to the same issue, while using the exact same data.
Theres nothing wrong with ad hoc query technology itself, it just asks for solid control. The control of standard, static reports, with data that has been checked, double checked and checked again. The problem is that static reports may service the needs for IT governance, creating high quality data, but it doesnt serve the need for flexibility of the business.
Competitive forces and the need for control seems to be at odds with each other. What we need in todays business world is an environment where you have freedom to roam around, knowing that whatever you do, the data is always right. End user empowerment is a beautiful thing, as long as everyone is using the same set of lenses to view the data and has a set of guardrails that prevent them from straying off the path. And thats where OLAP comes in. OLAP allows you to freely move through large sets of data, allowing you to compare data, as well as drill down into lower levels of detail. The predefined model ensures that whatever you do with the system, the outcome is guaranteed and certified correct. Now try that with a spreadsheet or a query tool. The users have the flexibility, the IT department can ensure quality. OLAP is since many years a solid, trusted technology. And hotter than ever.
Posted by Frank Buytenkijk at September 8, 2006 12:52 PM
