Data-warehouse as a dynamic capability: utility/cost foundations and implications for economically-driven design Academic Article uri icon


  • Abstract IS design today is driven primarily by technical and functional requirements, and the economic implications for design are not yet well understood. This study argues that system design and architecture must reflect assessments of economic trade-offs besides satisfying technical/functional requirements. Modeling the economic performance structure behind IS design can highlight these trade-offs and help economically assess design alternatives. This study examines economics-driven design in the context of the Data Warehouse (DW). The DW environment is treated as a dynamic capability, providing the capacity for managing data resources and turning them into useful information products. These products contribute value when used for exploitative and/or explorative business processes. Recognizing possible uncertainties in usage, DW capacities are evaluated as real-option investments …

publication date

  • December 31, 2006