Net Present Value of Investments in Data Warehousing and Differences Across Firm Sizes

Sammanfattning: The continuous advent of data management technologies has enabled small and medium-sized enterprises (SME)s like Transalb Kühl- und Express-GmbH, a small German trucking company, to explore the strategic and financial benefits of data warehousing. This case study evaluates the data warehouse investment at Transalb by employing a Net Present Value (NPV) analysis to determine its financial viability. By collecting qualitative and quantitative data, engaging extensively with a data warehousing service provider, and incorporating management consultations, the study presents an unambiguous financial forecast for the project. With a focus on cloud-based solutions and leveraging outsourcing, the NPV calculation balances tangible benefits against implementation and ongoing costs. Despite a cautious risk adjustment to benefits, the investment emerges as profitable. Improvements encompass better pricing accuracy, time savings, and fuel efficiencies, among others, that contribute to the firm's competitive edge and growth potential. Through this empirical examination, the study underscores the accessibility of data warehousing for SMEs and potentially significant returns, emphasizing the strategic importance of data-driven decision-making.