| > | | | | to manually create a huge number of spreadsheets to |
| How OLAP helps you. | | | | house and analyze data for only a fraction of this |
| One of the highest priorities for companies in the | | | | information. |
| financial industry and in other markets is the ability to | | | | |
| accurately predict revenue. Alternatively, one of the | | | | Transparency and Flexibility |
| major pitfalls for these companies is the lack of an | | | | Another attractive feature of using an OLAP system |
| adequate method to budget and make financial | | | | for business intelligence is the level of transparency |
| predictions. Most companies use ERP systems to | | | | and flexibility. Companies can see the relationships |
| collect data for budgeting and forecasting and | | | | between their dimensions instantly and can manipulate |
| spreadsheets for the reporting functions of these | | | | the dimensions to get the information they need |
| activities. Unfortunately, spreadsheets are limited in | | | | quickly. If changes are made in the real world that |
| how much information they can provide in a timely | | | | affect the dimensions, changes can be made to the |
| manner and involve a great deal of upkeep. Because | | | | dimensions within the OLAP system as well, without |
| of the spreadsheet structure, changes need to be | | | | the need to manually change every single report that |
| manually repeated across all sheets or workbooks to | | | | the dimension is relevant to. Companies also have |
| ensure accuracy. Because their formulas are hidden, | | | | the ability to see at a glance the different way the |
| spreadsheets need to be painstakingly checked make | | | | relationships between dimensions can be represented |
| sure that the information displayed by the sheets is | | | | or how the relationships can be recombined to extract |
| correct. | | | | more information that is pertinent. To get the same |
| | | | | information, an entirely new spreadsheet workbook |
| The Alternative | | | | would have to be created manually for each new |
| On-Line Analytical Processing, or OLAP, is an umbrella | | | | relationship, which would require significant time and |
| term for the technologies that include decision support, | | | | resources. |
| business intelligence, executive information systems, | | | | |
| and more. An OLAP system uses specific | | | | Companies that use an OLAP system have ability to |
| dimensions to map and categorize data according to | | | | get reliable business intelligence quickly. OLAP can be |
| the specific fundamentals of a company’s | | | | distributed to a variety of users using a variety of |
| business. For example, using the idea of products, | | | | platforms, as well, giving managers the power to |
| OLAP could map a variety of product offerings from | | | | answer their own data analysis questions without |
| brands to color. A very large and complex | | | | having to go through the Finance Department |
| spreadsheet would be needed to keep track of the | | | | repeatedly. With drillable reporting and real-time data |
| same information. OLAP could also use other | | | | analysis as additional features, OLAP is clearly the |
| dimensions such as business units, geography, | | | | direction any company should take for competitive |
| customer information, or time periods to create a | | | | business intelligence. |
| variety of different reports. A company would need | | | | |