1. A data warehouse is a process for storing and analyzing data.  The purpose of this system is to allow organizations to collect data from different parts of itself.  The amount of data that will be collected in this central warehouse is very large and is normalized so as to be compatible with the data from other parts of the organization.  Once in the data warehouse, this data can be processed and converted into information, capable of being used by managers to streamline the organizations main processes.
  2. Consumer cooperatives have several disadvantages when compared to traditional firms.  Traditional firms have the ability and responsibility to sell goods and services at the highest possible price that customers would be willing to pay.  This method of selling allows them to maximize profit, which in turn can lead to expansion of the business and increased profits for stakeholders.  The members of a consumer cooperative rarely benefit from the financial success of the cooperative.  Additionally, coops can sometimes suffer from management difficulties because each member can technically play some part in managing the company.
  3. The data warehouse allows REI to collect data related to each customer’s buying preferences.  They can then use this data to create information that will determine which products they should market to each individual customer, based on his or her interests.  REI can also send information to members regarding outdoor events that they might be interested in, such as biking, hiking or kayaking.  One of the more helpful aspects of this system is that it keeps track of which items people search for on the REI website and sends members sale and discount information related to their searches.
  4. When creating a data warehouse, there are definitely some risks and concerns that an organization must consider.  A company that uses a data warehouse sometimes uses the software and hardware of a vendor.  This can mean that there are some security risks when developing a data warehouse because a third party has access to the company’s data.  If an organization does not utilize all of the capabilities that its data warehouse provides it, then it may be wasting its time and money by trying to create one.  Some organizations are not culturally prepared to adjust to such a powerful information system, which may render the system unhelpful.  In general, development of a data warehouse can be difficult and requires various organizational changes.
  5. REI chose to work with IBM’s data warehouse technology because their DB2 9 Viper is an industry leading system.  Ultimately, the DB2 9 Viper technology will record every interaction that members and customers have with REI, whether this interaction occurs in the form of in-store or online purchases or if it occurs in the form of online search queries.  Most importantly, IBM is an industry leader that will allow REI to more efficiently conduct business and interact with customers and members.

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