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Teradata Analytics for SAP Solutions

A Better Way to Build a Data Warehouse with Data Extracted from


SAP Solutions

Sponsored by:

By Neil Raden
Hired Brains Research LLC
March 2014

2014, Hired Brains Research LLC. No portion of this report may be reproduced or stored without written permission.
Table of Contents

Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Evolving Data Warehouse Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Iteration One: The Data Warehouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Iteration Two: The Customer/Product Data Warehouse. . . . . . . . . . . . . . . . . . . . 4
Iteration Three: The Big Data Data Warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SAP and Data Warehousing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Why Use an Enterprise Data Warehouse Today?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Extreme Scalability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Analytical Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Integrated Data Warehouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Self-service BI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Embedded Analytics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Reduce Complexity of BI Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Pervasive BI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Teradata has a Better Solution for SAP Data Warehousing. . . . . . . . . . . . . . . . . . . . . . 8
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
About the Author. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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Executive Summary

SAP has a vast functional reach through its suite of software SAP developed its own data warehouse product, now referred to
solutions.1 No other software company offers support for such a as SAP Business Information Warehouse (SAP BW), to satisfy the
comprehensive range of business processes and information flows. needs of their customers that werent met with SAP ERP or SAP
However, all of that capability comes with a price complexity. CRM. Most SAP customers adopted SAP BW, but many found it
SAP is the largest provider of enterprise resource planning (ERP) only satisfied a portion of their needs. A common drawback in
software, equips its clients with a massive system designed to an application vendor-supplied data warehouse solution is the
integrate practically every function within an organization. need for integration of data from other sources, such as internal
To do this, the SAP system is comprised of thousands of tables, applications from other vendors and external data from data and
complicated relationships, many levels of abstraction and a vast service providers, social networks, customers, suppliers and other
layer of application logic. Making sense of the data and under- critical participants in the operation of the organization. In fact,
standing its semantics independently of its application layers many large organizations have multiple instances of SAP data
is nearly impossible by examining only the physical database warehouse, each with their own implementation of SAP BW. SAP
instances. Many of the crucial business rules are buried in code customers typically have large investments in separate data ware-
that is invisible. Unlike simpler systems, building a data ware- houses and data. This is especially true where there is a substantial
house around data from SAP ERP solutions is a difficult task.

amount of non-SAP data involved. In those cases, organizations
are more likely to opt for analytical solutions that can access and
As a result, reporting on and drawing insight from the data captured process from multiple sources, including SAP solutions.
and managed within SAP solutions is challenging. Many organ-
izations using SAP ERP and SAP CRM, two of its major applica- Teradata Analytics for SAP Solutions is specifically designed
tions, find the process of applying this data to analytical purposes for analyzing SAP ERP data. It includes the flexibility to pres-
time-consuming and expensive. The internal data structures of ent and integrate data from multiple SAP systems and non-SAP
SAP solutions are designed for performing their direct functions, systems. It has been designed to be rapidly implemented and can
not to facilitate reporting and analytics. Devising reports from be extended to match changing business requirements. Teradata
SAP tables directly requires knowledge of four separate domains, Analytics for SAP Solutions gives business users an enterprise
all of which are very sophisticated: the underlying reference view enabling them to make insightful decisions quickly and
model of SAP ERP solutions, which is vast, and spans many gain a competitive advantage.
different modules; the ability to develop code in the proprietary
language, ABAP, understanding the function of the application Teradata provides an effective solution for organizations that
interfaces (Business Application Programming Interface (BAPI) use SAP by removing the complexity of building an integrated
in SAP parlance and there are more than 10,000 of them); and the data warehouse, directly from SAP. The purpose of this paper is to
functional knowledge of the business processes themselves. describe the current needs for data warehousing, why SAP BW is
an incomplete or even unnecessary choice today, and how Teradata
Analytics for SAP Solutions provides a superior option.

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Evolving Data Warehouse Requirements

Data warehousing (DW) and business intelligence (BI) progressed Iteration Two: The Customer/Product Data Warehouse
through a series of iterations from a fairly simple premise twenty- Once sales data expanded to the customer level, and the periodicity
five years ago to an essential part of enterprise information expanded to daily, a data warehouse, without expanding its sub-
technology today. Originally, DW was thought of as a collection ject area, could grow by an order of magnitude. A 50Gb database
point of data to serve the needs of programmers struggling to could easily exceed 500Gb or even reach the unimaginable level
keep up with a report backlog. In time, the data warehouse was of a terabyte.
seen as a mechanism for supporting the expanding role of users,
analysts and application builders. Today, DW/BI provide data Many data warehouses were hosted on the general purpose,
management and presentation of vast quantities of data, from merchant relational database from IBM, Oracle and Microsoft,
both internal and external sources, with support for advanced but they lacked adequate capabilities for reporting and analysis
analytics, real-time decision making and even crossover initia- needed for organizations. Load processes were slow, and queries
tives such as master data management. performance was poor. Teradata data warehouses were available
and thriving as an integrated data warehouse with the high speed
Data warehouses are, in general, in their third iteration. SAP BW analytic processing, however Teradata lacked interoperability
was designed with first and second iteration thinking. Todays with SAP data. As a result, reporting and analytic on SAP data
requirements for reporting and analytics demand platforms that was bound by data marts, non-integrated Operational Data Stores,
are far more scalable, more manageable, provide lower TCO, are query metering and restricted access.
more open and agile and are more powerful and more capable
than those of ten and even five years ago.2 A brief discussion of Iteration Three: The Big Data Data Warehouse
the iterations follows: Physical and functional requirements are expanding rapidly.
Requirements are generated from both the advance of technol-
Iteration One: The Data Warehouse ogy and the rising expectations within organizations to do more,
The original designs for data warehouses were based on data vol- faster3 to handle a great deal more data, rely on vastly superior
umes and loads and concurrency dramatically lower than those hardware platforms, routinely incorporate external data, and
we see today. This managing from scarcity approach minimized even more unstructured data, especially from the Internet. Best
physical resources by limiting function and use. Source data practices already call for the ability to not just report data, but to
was drawn only from the organization itself, aggregated at the analyze it, and even make predictions from it as well as disburs-
monthly, geographic and product level and was provided at wide ing BI in many forms to a much wider audience. While speed and
intervals, such as monthly or quarterly. Integration of external concurrency are now table stakes, flexibility, harmonization and
data was rare. The primary role was to provide source for report- dynamic performance are key features.
ing by IT.

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SAP and Data Warehousing

To deal with the need for more reporting and analytics demanded As a first iteration data warehouse, its concept was sound, but
by the SAP customer base, SAP initially released SAP Business it exhibited signs of performance problems from the outset,
Information Warehouse (SAP BW) (BIW, later shortened to particularly in the time it took to load the data and refresh all
BW) as an extension to the SAP solution. As SAP BW evolved the structures and especially when clients wished to modify
over time, its functionality expanded rapidly, only as a tool their analytical models. Though the data was physically housed
for data from SAP solutions, not as a data warehouse to fulfill in relational tables, it appeared, through the various layers of
their needs. abstraction, as a series of multi-dimensional cubes, lacking
the flexibility of a true enterprise data warehouse built with a
The initial release of SAP BW was based on an early iteration of relational database.
DW thinking, and those initial design decisions still prevail; the
current SAP data warehousing suffers from performance, usability In subsequent releases, SAP expanded the functionality and took
and scalability problems. aim at the performance problems, but as their customers moved
into third iteration needs, it became clear that the underlying
Performance, usability and scalability are critical components of databases used were not up to the task. Current relational
a data warehouse, but not exclusively. SAP BW does not address database platforms for the SAP system from IBM, Oracle and
the underlying problem of data harmonization: the content of Microsoft are architecturally matched to the load and perfor-
SAP BW is typically limited to data from the SAP system and mance characteristics of operational systems such as SAP R/3
the numerous data cubes are independent, not harmonized where there are millions of transactions to handle while main-
with each other. In addition, SAP data is not harmonized with taining coherency between different modules. But in data
non-SAP data sources. Many organizations are forced to build a warehousing, where there are large batch data loads and unpre-
separate data warehouse to integrate all of the other needed data dictable query loads, not every relational database system is
not part of SAP, leaving two choices. Moving SAP BW data into capable of meeting the requirements.
the DW, which has been difficult and generally too slow, or mov-
ing all of the enterprise data into SAP BW, which has proven to The current SAP approach to data warehousing is to port SAP BW
be an unpopular choice. to SAP HANAs in-memory computing platform. While it can
speed up some processes, it is an expensive proposition and does
Clients of SAP became a growing chorus for improvements in not deal with the many shortcomings of SAP BW. Re-platforming
the reporting process, both operational and analytical. SAP a solution on faster hardware rarely solves the problems of scale,
responded with the first release of SAP NetWeaver Business concurrency, inflexibility and lack of transparency. Access to SAP
Warehouse as a first iteration data warehouse, but with some BW would still require all of the proprietary tools SAP provides
twists. Instead of an open data warehouse that could be accessed for SAP BW on conventional relational databases, some of which
by third-party tools, SAP created a whole BI application suite are not yet certified for SAP HANA.
with analytical templates, ETL routines to load and refresh them,
reporting and analytical tools, as well as the complement of main- Teradata now provides a better alternative by moving SAP and
tenance and administration capabilities. non-SAP data directly into a Teradata Database, alleviating all
of the challenges of dealing with SAP BW, and resolving perfor-
mance, scalability and harmonization issues.

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Why Use an Enterprise Data Warehouse Today?

Iteration three of data warehousing allows for a broad range of Integrated Data Warehouse
options, from a single enterprise data warehouse, to an ecosystem Organizations employing SAP software, despite its broad reach
of platforms performing specialized functions, provided they and functionality, still use other applications to complement it or
operate in harmony to minimize duplication, provide extra- surround it. Because the subject areas of SAP BW do not com-
ordinary service and are economically manageable over a long prise an entire enterprise data warehouse, many businesses rely
period of time. on SAP IT experts to manually extract data from SAP solutions
and integrate into the data warehouse. The data warehouse must
This requires extreme scalability, analytical performance, logical be designed to simplify the entire process from data extraction,
location of processing and minimized data movement and most integration and loading with the goal of creating a single business
importantly, the ability to handle the loads of data and use that layer for analytics and reporting. Ideally, this process is driven
todays businesses demand. In particular: from a graphical user interface promoting self-service data access
Extreme Scalability and analysis by business users.
The amount of data (such as historical data or expanding pro-
duct portfolio data) and its sources (additional SAP and non-SAP Self-service BI
systems) are changing continuously so your data warehouse needs One of the significant costs of running SAP BW comes from the
to keep up. None of the currently supported databases of SAP requirement for expert consultants to design, implement and
BW are able to scale to the volumes that third iteration operations maintain nearly every aspect of the SAP BW implementation. In
demand. SAP BW only scales out to tens of terabytes in a clustered contrast, best practices recommends a self-service BI environment,
symmetric multiprocessing (SMP) environment, while a growing where once established by IT, business users are empowered to
range of rivals scale into the hundreds or thousands of terabytes, easily access and refresh data from their SAP solutions and quickly
to support mixed workloads with high user concurrency. generate and run their own reports without day-to-day IT support.

Analytical Performance Embedded Analytics


High speed analytical performance is a requirement for data-driven Studies have shown that advanced analytics, including statistical
businesses that are proven to be more financially successful4 than modeling, predictive modeling, data mining and optimization are
their competitors. The data warehouse must be designed to man- closely correlated with competitiveness. Unfortunately, delivering
age and perform mixed analytic workloads, not just transactional advanced analytics is still a time-consuming, largely manual job
processing. Every part of its architecture should align to support performed by highly skilled (and highly compensated) profession-
data warehouse processing. It has been a well-known fact that it is als. Data warehousing and advanced analytics have never been
impossible for a single database kernel to excel at both transaction very closely tied, thus modelers use a data warehouse as a data
and analytical processing. Oracle, IBM and Microsoft databases source for creating their own separate databases for analysis.
are primarily transaction processing tools that require constant
tuning to deliver even barely adequate performance at analytical
tasks, especially at large scale and low latency requirements.

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Advanced analytics best practices leverage in-database analytic Pervasive BI
capabilities, where the data warehouse vendor along with BI today goes far beyond data and reporting. BI is becoming pro-
third-party analytic tool provider engineers solutions enabling active, real time, operational, integrated with business processes,
analytic methods to execute within the data warehouse. This and is extending beyond the boundaries of the organization. It
immediately eliminates work and makes more efficient use of was able to do this by providing simple, personal analytical tools
resources, both human and machine, but in the longer term, will on an as-needed basis with a minimal footprint and cost. The key
enable statistical models to operate seamlessly with the data element of pervasive BI, where BI is used both openly and hidden
warehouse, facilitating a whole new set of hybrid operational/ in other processes in many operations of a business, is seamless
analytical/predictive processes. and almost effortless integration between operational systems and
reporting/analytical views of the business. Seamless implies,
Reduce Complexity of BI Architecture very low latency update and enhancement powered by metadata-
While it is already possible to move non-SAP data into SAP BW driven semantics (to its credit, one of SAP BWs early innovations
and SAP BW data into other external structures to provide a was to provide a data warehouses with pre-built connectors).
more complete view of enterprise performance and analytics, it is
currently tedious and slow. Best-in-class solutions bring all of the The real benefits of the enterprise data warehouse is to provide
data into a single platform and simplify the design and the effort the means to mobilize the data resources from the SAP systems to
to maintain the implementation. The integrated data warehouse meet the service level agreements (SLAs) without the complexity
is the foundation of your BI architecture, so it makes sense to and cost of SAP solution implementations.
bring in SAP data into your existing BI architecture than to try to
recreate a new BI foundation.

Teradata Analytics for SAP Solutions is


specifically designed for analyzing SAP ERP
data. It includes the flexibility to present and
integrate data from multiple SAP systems
and non-SAP systems.

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Teradata has a Better Solution for SAP Data Warehousing

Teradatas approach to data warehousing with SAP ERP data In fact SAP solutions are so complex that the average SAP solution
leverages the Teradata Integrated Data Warehouse, proven tech- has more than 25,000 tables of data. The ability to identify the
nology designed for high-speed analytics on massive volumes of business rules and relevant data for analytical purposes is one way
data as the core analytic infrastructure. Teradata Analytics for Teradata Analytics for SAP Solutions reduces complexity.
SAP Solutions employs an architecture to simplify the process of
creating a data warehouse using ANY data from SAP solutions In addition Teradata Analytics for SAP Solutions builds the core
such as SAP ERP, SAP BW or others SAP modules. Not only does enterprise model and virtual presentation layer, commonly referred
Teradata provide the massive scalability to grow with your busi- to as the business semantic layer giving the extracted data mean-
ness, but Teradata Intelligence Memory also delivers the speed of ingful names. This empowers business users to create their own
in-memory processing. reports and dashboards without IT support structures. Simply
dragging and dropping the clearly named data into their reports.
This is a simplified model of the Teradata Analytics for SAP
Solutions architecture. SAP data (principally ERP data, as SAP Teradata Analytic for SAP Solutions offers organizations an
BW data is derived from this source, but it is possible to extract integrated, end-to-end, Teradata IDW based solution for extract-
the data from SAP BW as well, particularly those elements that ing data from SAP ERP/ECC systems. Building an integrated data
serve reporting and are not present in the ERP data). The data warehouse for reporting, business intelligence and analytics. This
extractors of Teradata Analytics for SAP Solutions are able to cut software solution is extremely flexible, easy and rapidly imple-
through the layers of abstraction and indirection in the SAP model mented because it is built on an open framework. It can be used
and bring data into a staging area where data can be harmonized with leading ETL and BI tools and is proven to reduce Total cost
and merged from multiple SAP instances and other non-SAP data, of Ownership (TCO).
including your existing data warehouses and data marts.

Figure 1. This diagram illustrates the Teradata Analytics for SAP Solutions end-to-end, from data extraction, loading, transformation, integration and analysis.

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Teradata Analytics for SAP Solutions delivers benefits:

Optimizes end-to-end processing within the Teradata data


warehouse delivering extreme scalability.

Integrates multiple SAP and non-SAP data sources to provide


single business layer for cross-functional analysis.

Leverages Teradata Databases in-database analytics to provide


deep data mining and predictive analytics.

Delivers results in days, not months because integration is


prebuilt and driven by an easy-to-use interface.

Includes prebuilt extract, transform, and load (ETL) data flows


implemented in data integration software for self-service data
to customer revenue to accounts receivable data, so business users
access.
Figure 3. Integrated view of top 10 customers by Revenue and Payment History
Provides prebuilt SAP data mappings, change data capture provides more insights of the customer value.

logic, and data models to extract data from SAP financial,


logistics, manufacturing, human resources and sales software
modules. can see patterns of behavior, such as top customer who persistently
pays late or not at all (see Figure 3). Analysis on integrated data
The Teradata Analytics for SAP Solutions breaks down the silos gives business users useful insights which could be used to iden-
that SAP solutions can create, allowing business users to view data tify and resolve issues. Teradata Analytics for SAP Solution also
from across business modules. For example, a common report is a enables SAP data to be integrated with other company data on the
list of top 10 customers by revenue (see Figure 2). Alone this report EDW, facilitating the ability to run predictive analytics so business
does not provide the business with a great deal of insight. Teradata strategies and tactics can be changed to make the company more
Analytics for SAP Solutions integrates modules and directly link efficient. Ultimately Teradata Analytics for SAP Solutions provides
a holistic view of the company which is vital to drive knowledge
and competitive advantage.

Teradata has a professional services organization numbering in


the thousands, worldwide, who are trained in and focused on data
warehousing, big data analytics and BI. They have deep experi-
ence in many vertical industry applications and their ability to
deploy gives Teradata Analytic for SAP Solutions a large boost in
ability to deliver expertise to the SAP customer base. Organiza-
tions can leverage Teradata PS expertise to realize results in a
matter of days.
Figure 2. Report of the top 10 customer by Revenue based on silod data provides
a limited view.

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Manufacturing Plant Maintenance Control
Plant, property, and equipment are an organizations tangible separate ERP systems to manage each facility. Although the
assets with long-term commitments. These assets are usually process and bill of materials are the same, total cost of good
funded with long-term cash sources, either long-term loans or manufactured can be different due to a number of local factors
by shareholder investment. While information on these assets is such as labor cost, logistical conditions and machinery. Since
relatively straightforward, the operational maintenance data is managed from different SAP ERP systems, data must be
schedules are often complex, stored in external systems and manually extracted and integrated from the different systems
managed by multiple resources. Dedicated technical managers to answer the simple question: How do cost of manufactured
must organize multiple maintenance schedules for each asset. goods from one facility compare to another? Teradata Analytics
Teradata Analytics for SAP Solutions provides these technical for SAP Solutions simplifies data integration to answer questions
managers with the analytic capabilities to maximize the from an enterprise view.
production availability and minimize the maintenance costs for
Integrating SAP and non-SAP data
each asset.
An integrated data warehouse provides a holistic view of your
Integrating data across multiple SAP ERP modules within a business beyond functional operational segments. Following
single system
the manufacturing examples, an analyst may ask, What is the
Analyst may ask, What is the correlation between number of relationship between physical condition in a plant and the
breakdown events and produced output for a given period? number of breakdown and cost? To answer this question, the
To answer this question, you need breakdown event count from analyst must extract breakdown and cost information from the
the SAP ERP Production Maintenance (PM) module and SAP ERP modules and integrate this data with geographic,
aggregate production volume SAP ERP Production Planning (PP) temperature variance, and plant maintenance data that directly
module. By combining the data from multiple SAP ERP modules impacts the physical conditions of equipment in the plant.
into a single business view, organizations can better understand
how process breakdown events impact production volumes to The real value of an IDW environment is the ability to combine
optimize maintenance budgets. the production schedules, the actual production output with
planned maintenance events and any other external
Integrating data across multiple SAP ERP systems information to get a 360 degree view of the entire operations in
Teradata Analytics for SAP Solutions also integrates data from order to better manage the asset. Combining this data gives the
multiple SAP systems across the organization to answer a ability to impact the sales organizations and external third
broader set of questions. For example a business that parties who would use this data to move additional products
manufactures the same product in separate facilities will use and services of the organization.

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Conclusion

Organizations today need to leverage every bit of information


they can manage, in the forms that suit them, when they need
Teradata Analytics for SAP Solutions
it. Packaged data warehousing with SAP solutions was a success
only within the limits of how SAP defined data warehousing. employs an architecture to
Today, the term data warehouse encompasses a wide variety of simplify the process of creating
architectures, methodologies and solutions. The one problem that a data warehouse using
is never completely solved is how to capture and harmonize data.
That problem is now greater than ever.
ANY data from SAP solutions
such as SAP ERP, SAP BW
Teradata Analytics for SAP Solutions gives SAP customers high or others SAP modules.
speed, simplified and useful application. Those customers will
also be served by a very large professional services organization
from Teradata Corporation that is focused on one and only one
pursuit data warehousing and BI.

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Endnotes About the Author

1. For the sake of brevity, this paper refers primarily to the SAP Neil Raden, based in Santa Fe, NM, is an
ERP and SAP CRM applications, not its entire Business Suite industry analyst and active consultant,
and other products and services. widely published author and speaker and
2. These iterations are general in nature and meant solely to the founder of Hired Brains, Inc., http://
illustrate the evolution of data warehousing the expansion of www.hiredbrains.com. Hired Brains
its requirements. Data warehouse development, or maturity, provides consulting, systems integration
happened at different times for different organizations. and implementation services in Data
Iteration One, for example, actually began almost 30 years ago, Warehousing, Business Intelligence,
and iteration Two was first apparent about 1995. Iteration Three big data, Decision Automation and
first appeared as a trend approximately 5-10 years ago. Advanced Analytics for clients worldwide. Hired Brains Research
provides consulting, market research, product marketing and
3. Actually, external pressure from Search an E-business created
advisory services to the software industry.
demand for all sorts of new data sources now commonly
referred to as big data.
Neil was a contributing author to one of the first (1995) books
4. According to research by Economist Intelligence Unit http:// on designing data warehouses and he is more recently the
www.cio.com/article/730457/Data_Driven_Companies_ co-author with James Taylor of Smart (Enough) Systems: How to
Outperform_Competitors_Financially Deliver Competitive Advantage by Automating Hidden Decisions,
Prentice-Hall, 2007. He welcomes your comments at nraden@
hiredbrains.com or at his blog at Competing on Decisions at
hiredbrains.wordpress.com.

All rights reserved. No portion of this report may be reproduced or stored in any form without prior written permission. Teradata and the Teradata logo are registered trademarks of
Teradata Corporation and/or its affiliates in the U.S. and worldwide. SAP, R3, SAP NetWeaver, ABAP, and BAPI are the trademark(s) or registered trademark(s) of SAP AG in Germany and
in several other countries.
2014, Hired Brains, Inc. www.hiredbrains.com

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