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Lecture 3

The document discusses what a data warehouse is and how it differs from operational systems. A data warehouse integrates data from different sources into a single location for analysis. It stores historical data to support decision making, while operational systems focus on current transactions and may not retain old data. The amount of historical data retained depends on factors like industry and the economic value of past data.

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12 views12 pages

Lecture 3

The document discusses what a data warehouse is and how it differs from operational systems. A data warehouse integrates data from different sources into a single location for analysis. It stores historical data to support decision making, while operational systems focus on current transactions and may not retain old data. The amount of historical data retained depends on factors like industry and the economic value of past data.

Uploaded by

Sadiholic
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Data Warehousing

Lecture-3
Introduction and Background

1
Introduction and Background

2
What is a Data Warehouse ?
It is a blend of many technologies, the basic
concept being:

 Take all data from different operational systems.


 If necessary, add relevant data from industry.

 Transform all data and bring into a uniform

format.
 Integrate all data as a single entity.

3
What is a Data Warehouse ? (Cont…)
It is a blend of many technologies, the basic
concept being:

Store data in a format supporting easy access for


decision support.
 Create performance enhancing indices.

 Run ad-hoc queries.

4
How is it Different?
 Fundamentally different
Business user
needs info

Answers result
User requests
in more questions
IT people

?
Business user
may get answers
 IT people do
system analysis
and design

IT people
send reports to IT people
business user create reports

5
Data warehouse
Data warehouse is a subject oriented,
integrated, non volatile, time variant
collection of data in support of management
decision.

6
DWH-Ahsan Abdullah
How is it Different?
 Different patterns of hardware utilization

100%

0%

Operational DWH

Bus Service vs. Train


7
How is it Different?
 Combines operational and historical data.
 Don’t do data entry into a DWH, OLTP or ERP are the
source systems.
 OLTP systems don’t keep history, cant get balance
statement more than a year old.
 DWH keep historical data, even of bygone customers. Why?
 In the context of bank, want to know why the customer left?

 What were the events that led to his/her leaving?

8
How much history?

 Depends on:
 Industry.
 Cost of storing historical data.
 Economic value of historical data.

9
How much history?
 Industries and history
 Telecomm calls are much much more as compared to
bank transactions- 18 months.
 Retailers interested in analyzing yearly seasonal
patterns- 65 weeks.
 Insurance companies want to do actuary analysis, use
the historical data in order to predict risk- 7 years.

10
How is it Different?
 Usually (but not always) periodic or batch
updates rather than real-time.

 DWH is for strategic decision making based on historical


data. Wont hurt if transactions of last one hour/day are
absent.

11
How is it Different?

 Rate of update depends on:


 volume of data,
 nature of business,
 cost of keeping historical data,
 benefit of keeping historical data.

12

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