Presented by Idan Lavi, Alon Levin and Slav Podolsky.

Principles Of Information Systems (0368-3455) Instructor : Dr. Milstein Irina. Tel-Aviv University, April 20th, 2006.

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Toyota
Not Just a car manufacturer. According to Forbs, Toyota is the 10th largest company in the world. Started as a loom and sewing machine producer, added car company in 1933. In 2005 sold 8 million cars. Profits in 2005 : 1,650 billion yen (~15 billion$). Toyota is also a city in Japan. 265 thousand employees worldwide.
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Toyota Motor Sales U.S.A (TMS)

The large United States division of Japan-based Toyota Motor Corporation. Established in 1957. Is the sales, marketing, distribution, and customer services arm of Toyota in the United States. Employs approximately 6,000 employees. Last year, it sold more than 1.7 million vehicles through approximately 1,422 Toyota and Lexus dealers in the 49 continental states.
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The Event
Lexus is Toyotas high-end luxury auto. In 1998 Toyota Motor Sales USA thought it was giving Lexus owners the Gold-Plated treatment but it didnt go altogether smoothly

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The Event Cont.

In 1998 as a result of a tire defect Toyota wished to compensate Lexus owners with check by mail. Unfortunately many checks were addressed to the wrong people. This glitch was a symptom of a bigger problem massive data quality problem, which derived from the decentralized architecture of the data system.
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The Problems
Previous data system architecture - TMS had 15 regional independent databases scattered all over the US, with different mainframes, interfaces and applications. The databases had inconsistencies and discrepancies with one another due to their independency. Many databases contained data errors, which were hardly verifiable. Access to customer information was extremely inefficient.
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Weakness of Decentralized systems

No control of application development. No communication between different autonomic units. Independent databases in different locations are not synchronized with one another. Takes a long time to retrieve information in real time. Data redundancy
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TMSs Solution
TMS used Informatica for the creation of ETL processes that build the centralized data warehouse capable of storing 250GB of data (by 2001 it was 10TB). The transition began on 04/99 and it took about 6 months to get the system operational. The total cost of the project ran over $2.5 million.
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Advantages of a Centralized database

Synchronized data (extraction of data from all of the databases occurs simultaneously). Easier and cheaper to manage. No data redundancy. Uniform data formats and classification schemes for product attributes.

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Advantages of DWH
Separation of data used in daily operations from data used in the data warehouse for purposes of reporting, decision support, analysis and controlling. Better data quality assurance. Capability of an advanced business analysis

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System Architecture

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Advantages of Distributed Systems

Unified interface from the client to the server allows a simple and cheep employee training program. Faster data access as a result of fewer network traffic. Allows access to all of the information regarding a customer on one mainframe.

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Disadvantages
Server overload too many users try to connect at once to a single server. The transition is a long and expensive process. System shutdown can block the access to the data nationwide.

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Compatibility
For a big organization such as Toyota, a central data warehouse has huge advantages. For different levels in the company, it is wise to give different applications, for more efficient use.. This is to give freedom to local managers / salespersons to get the information they need.
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Results of the Transition

Improved Operational Efficiency - More than $30 million is saved annually through the reduction of actual transportation time for each vehicle from 36.5 days to 17.5 days. Value Chain Management - Toyota discovered more than $800,000 in annual savings by using VIN tracking and detailed payment reporting to uncover duplicate billings to rail carriers.

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Results of the Transition Cont.

Improved Personnel Efficiency Month end operational reports are now automatically generated saving at least $300,000 annually. Calculating the actual transportation cost for each individual vehicle (As a result of drill down capability of the DWH). Keeping dealers informed of the vehicle inventory theyve ordered and where it is in the transportation process.
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Results of the Transition Cont.

Determining the best location for new dealerships and how to increase the volume of those dealerships.

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Bonus
The Data Warehouse Institute (TDWI) Best Practices in Data Warehousing 2003 Award. Previous recipients of this prestigious award were : 3Com(1999), HP(2002) etc

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Questions?

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Annual Car Sales

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What the heck is Informatica ?!?

Informatica Corporation is a leading provider of data integration and business intelligence software. More than 1,900 companies worldwide rely on Informatica. The cost of license + service for Informatica on a single computer is $48,548.
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Example : Informatica designer

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The Transition
Datawarehouse.bmp

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