THE SUBMISSION

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THE SUBMISSION

What we have to do next is to present our findings to management in a way that shows how we plan to implement the data warehouse. We will present an incremental approach that shows the costs and the expected benefits of each increment.

The submission process might be predetermined in that there are a package of prescribed forms already in existence and all we have to do is simply plug our numbers into the forms and, presto, the submission pops out of the end of the process. In the case of the data warehouse, there are several things that we want to say:

  1. The fact that, in developing the warehouse, we are supporting the business in the pursuit of its goals.

  2. Show how the information will affect revenue and profit over two, three, or even five years . Also the return on investment to show how quickly each increment will pay for itself.

  3. Describe the incremental approach and how the value of each increment has been calculated.

Table 8.6 is a real-life example of a part of a submission made by a major cellular telephone company.

We should attach the ROI table as part of the submission. The submission should show what would happen to the business if the data warehouse solution is not implemented and, subsequently, what would happen if it were.

It is also useful to show a roadmap. This is just a simple illustrative abstraction of the incremental delivery. An example is shown in Figure 8.1.

Figure 8.1. Development abstraction shown as a roadmap.
graphics/08fig01.gif

The roadmap in Figure 8.1 makes for a good presentational slide because you can explain how the different pieces of the puzzle fit together. If you want, you can put something on the Y axis such as the cost, or the projected increased revenue, or the ROI.

Table  8.6. Supporting Material for a Submission
Business Objective Deliverables of Data Warehouse Estimation of Impact
To increase net connections from 130,000 to 150,000 and by 12,000 each subsequent year 1. Segmentation of market according to value segments 20 percent contribution to goal in a full year
2. Recognition of profitability of customers (revenue, cost, margin)  
3. Derived market intelligence leading to marketing initiatives for acquisition and cross-selling /up-selling  
4. Customer usage (number, type, when)  
5. Understanding of customer behavior  
To reduce churn from 21 percent to 16 percent by April 2002 and to 13 percent by April 2003 1. Understanding the underlying reasons for churn 11 percent contribution to goal in a full year
2. Increased visibility of profitability by customer/segment/channel  
3. Greater understanding of the customer base  
4. Greater understanding of competitive market (product/service/ price)  
5. Understanding of market share and position  
To increase the revenue from value added services to 2 percent of total revenue by April 2000 and to 5 percent by April 2001 1. Product and service offerings that meet customer needs by segment 18 percent contribution to goal in a full year
2. Product feature optimization based on buyers ' values and elasticity  
3. Knowledge based sales and service strategies  
To reduce churn through targeting campaigns more effectively To identify customers who churn after they receive a marketing offer. Identifying common characteristics of those people. De-dupe these people for future mailings . 150,000 written to per annum; 1 to 2 percent churn when they receive mailings, therefore, 1,500 x $200.00 (cost of new customer) = $300,000 per annum.
To encourage channels that produce high-value customers. A report detailing the source by customer type, number of handsets and profitability. Increased connections through profitable channels.
Reduction in churn from nonprofitable channels.
Raise new connection revenue potential by 5 percent.
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Designing a Data Warehouse . Supporting Customer Relationship Management
Designing A Data Warehouse: Supporting Customer Relationship Management
ISBN: 0130897124
EAN: 2147483647
Year: 2000
Pages: 96
Authors: Chris Todman

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