Data Warehouse in MIS

Need for
ing
Data warehous
 Need Of
Data Warehousing In MIS
A Presentation by: Group 5

Nikunj Parmar (Roll no. 19)

Mohsin patel ( Roll No. 21)
Devang Tanna ( Roll No. 31)
Rajesh Sharma ( Roll No. 32)
Binay Tiwari ( Roll No. 34)
 Introduction
► Data warehouse is a main repository
of corporate data
► Multiple databases are employed per
specific purpose
► Contains raw events and unprocessed
data, although separate tables might
exist for processed information
displaying meaningful data
 What is a Data
Warehouse?
A Practitioners Viewpoint
“A data warehouse is simply a single,
complete, and consistent store of data
obtained from a variety of sources and
made available to end users in a way
they can understand and use it in a
business context.”
-- Barry Devlin, IBM Consultant
Inmons’s definition

A data warehouse is
-subject-oriented,
-integrated,
-time-variant,
-nonvolatile
collection of data in support of management’s
decision making process.
Subject-oriented
► Data warehouse is organized around
subjects such as
sales,product,customer.
► It focuses on modeling and analysis of
data for decision makers.
► Excludes data not useful in decision
support process.
Integration
► Data Warehouse is constructed by
integrating multiple heterogeneous
sources.
► Data Preprocessing are applied to
RDBMS
ensure consistency.

Data
Legacy Warehouse
System

Flat File Data Processing

Data Transformation
Integration
► In terms of data.
 encoding structures.

 Measurement of
attributes.

 physical attribute.
of data remarks

 naming conventions.

 Data type format

Time-variant

► Provides information from historical

perspective e.g. past 5-10 years
► Every key structure contains either
implicitly or explicitly an element of
time
Nonvolatile

► Data once recorded cannot be updated.

► Data warehouse requires two operations
in data accessing
 Initial loading of data
 Access of data

load

access
 What is it used for?
► Data analysis
► Data mining
► Complex queries with multiple table join
► Forecasting
► Historical reporting
► OLAP (Online Analytical Processing)
 Data Warehousing – An
Industry perspective

► Industry has huge amount of operational

data
► Knowledge worker wants to turn this data
into useful information.
► This information is used by them to
support strategic decision making .
Data Warehousing – An Industry
perspective

► It is a platform for consolidated historical

data for analysis.
► It stores data of good quality so that
knowledge worker can make correct
decisions.
Data Warehousing – An Industry
perspective
► From business perspective
-it is latest marketing weapon
-helps to keep customers by learning more
about their needs .
-valuable tool in today’s competitive fast
evolving world.
 Data Warehouse Evolution
Relational Company “Building the Data Replication
Databases DWs DW” Tools
Inmon (1992)
1960 1975 1980 1985 1990 1995 2000

Information-
“Middle Data

TIME
“Prehistoric Based
Times” Ages” Revolution
Management

PC’s and End-user 1st DW DW Vendor DW

Spreadsheets Interfaces Article Confs. Frameworks
 Escalating Need For Strategic
Information
Organizations need information to formulate the
business strategies,establish Goals,set
Objectives
e.g.
► Increase the customer by 10% over the next 5 years
► Gain market share by 15% in the next 2 years
► Increase product quality levels in the top five product
groups
 The Information Crisis
► Information is said to be doubled
every 18 months
► Organizations have tons of data
available
Then why information Crisis?
Why cant organizations convert the
data into useful information for
strategic decision making?
 Problem: Heterogeneous
Information Sources
“Heterogeneities are
everywhere” Personal
Databases

World
Scientific Databases
Wide
Web
Digital Libraries
 Different interfaces
 Different data representations
 Diverse structure of databases
 Duplicate and inconsistent information
 Why data warehousing?

► They need multidimensional support of information.

► The decision makers now need information for strategic
decision and not for routine operational decision decisions,
which are automated now.
► The character of their needs have changed from data to
information and how to knowledge. The decision maker is a
specialist and needs information urgently from internal end
external databases which gives larger view of the problem
scenario.
 Why data warehousing? Cont..

► The feature of such needs are fundamental database

which gives larger view of the problem scenario.

► The features of such needs are fundamental in nature

calling across functional analysis of the business.

► It is not atomic in nature but looks for patterns and trends

and also requires enterprise view as against functional
localised view of the subject.

► The data warehouse designed to meet these needs

delivers the same effectively.
 Why data warehousing? Cont..

► The need for Data warehouse is felt due to quality

and content requirement of different kinds of end
users in an organization.
► There are three kinds of end users of information
 The Management,

 Knowledge workers

 and operations staff.

 Why data warehousing? Cont..
► The management needs holistic view of the situation
expected predicting in the future.
► It helps to know weather a critical changes has taken place in
the business, is the change showing any pattern an which
factors are affecting the change and its pattern?
► In order to control the change and use it to business
advantage, the management requires analytical information
support to make strategic decisions.
► The Data warehouse designed to meet these needs would
satisfy such requirements.
 Why data warehousing? Cont..
 The knowledge workers belong to middle management level in the
organizational hierarchy.
 Their needs are multidimensional depending on their position and
role.
 Their information needs are met from different sources both
internal and external and derived from a variety of information
systems operating in the organization.
 The need cuts across the application systems in different functions.
These information needs are fulfilled by assembling different
information sets derived functional systems and presenting in a
manner which offers additional value of information to the decision
maker.
 Why data warehousing? Cont..

► The needs of operational staff are fulfilled through

transaction processing system, where decision
making process is automated by embedding the rules
in the system.
► The stored procedures and triggers built in the
system help to execute the processes.
► The operation staff’s dependence on Data warehouse
is almost insignificant.
 Why data warehousing? Cont..

► As business is becoming more competitive, the business

risk needs to be insured.
► The view of decision making situation is no longer atomic,
local and functional but it is larger in scope and content.
► The view may vary between the business functions, entire
enterprise and the global environment.
► To meet such needs, data and information is sourced from
within the organization and also from external sources.
 Why data warehousing? Cont..
► The database designed to serve the needs of transaction processing
systems and functional information systems fall short to meet this
critical need of the decision maker.
► If we rely on database stored in multiple locations to fulfil this
needs, the system designed to meet the needs is poor in response
and also lacks quality and value in critical information or various
reasons.
► To meet instantaneous fulfilment of the need cutting across internal
and external sources of data and information, it is necessary to
design a data warehouse where data and its attributes are stored
and are quickly available to bring out different view of a given
decision making situation.
 Financial Services sphere
► The pioneers of the data warehouse

► Businessintelligence has become a

business mandate as well as a
competitive weapon.

► 1999 Financial Services Modernization Act

 Requires financial service and insurance
companies to disclose how they will use data
collected from their customer
 Uses of Data Warehousing in
Financial Services
► Profitability analysis
 Cannot know the true value of a customer
without understanding how profitable that
customer is…

 Used by many banks to help dictate the

creation of new products or the expunging
of old ones
 Uses of Data Warehousing in
Financial Services
► Risk Management and Fraud Prevention
 Data Warehousing provides a banking
compnay with a scientific approach to risk
management.

►Helps pinpoint specific market or customer segment

that may be higher risk than others
►Examines historical customer behavior to verify that
no past defaults have occurred

 Ever gotten a call from you credit card

company asking about a recent purchase?
 Uses of Data Warehousing in
Financial Services
► Propensity Analysis and Event-Driven
Marketing
 Helps bank recognize whether a customer is
likely to purchase a given product and service,
and even when such a purchase might occur
► Example:
 Loan for college tuition may mean a
graduation gift or wedding in the future
 Uses of Data Warehousing in
Financial Services
► Response and Duration Modeling
 Can tell a bank which customers are likely
to respond to a given promotion and
purchase the advertised product or
service
 How long a customer might keep a credit
card and also how often the card will be
used
 Uses of Data Warehousing in
Financial Services
► Distribution Analysis and Planning
 By understanding how and where customers
perform their transactions, banks can tailor
certain locations to specific customer groups.
 Allows banks to make decisions about branch
layouts, staff increases or reductions, new
technology additions or even closing or
consolidating low-traffic branches
 Benefits of Data
Warehousing
► No need to stress operational database with
complex queries
► Separation of processing and business logic
► Very flexible, multiple distinct relations can
be defined from a set of data
► Can be customer or object specific
► Persistent – once result is computed from
the raw events, it doesn’t need to be
recomputed again, giving faster response
time on subsequent queries.
 Benefits of Data
Warehousing
Cont’d
► The potential benefits of data
warehousing are high returns on
investment..
► substantial competitive advantage..
► increased productivity of corporate
decision-makers..
 Dangers of Data
Warehousing
► Heavy processing requires physically separate
database machines for warehousing and OLTP
► Must be optimized for novice users, complex queries
might take a very long time
► Much more complex multidimensional design
compared to regular relational databases
► Errors in computational logic can cause serious
financial losses and computational recalculations.
► Data representation
► Relatively difficult to perform data migration
 Characteristics of data

warehouse
The scope of data warehouse is entire organization.

 It contains the historical record of business created from

existing application.

 It enables you to take business view, application view,

and physical view at a point in time on any aspect of
business situation.

 Data warehouse supports cross functional decision

support system to manage the business, as it provides
details, historical, consistent, normalized business data
for further manipulation by the decision makers.
 conclusion
► The data warehouse usage makes business
decisions on facts and not on intuition.
► This is applicable to both tactical and strategic
business decisions. It enables you to get insight in
key areas of business where information support for
strategic decisions is necessary.
► If viewed intelligently and with imaginative mind, it
helps you to sense early warning on some aspects
of business, calling for business review and radical
change in policy, rules and strategies.