Data Warehousing & Business Intelligence FundamentalsAgendaEvolution of Decision Support SystemsOverviewEvolution of Information ProcessingFile Transaction ProcessingProblems With Traditional File Processing:Traditional File ProcessingSlide 9Data Base Management System a single source for all processingSlide 11PCs, 4GLs, MISSlide 13Extract ProgramsProblems with Natural Evolution of Data ExtractionSlide 16Decision Support SystemsComponents of DSSA producer wants to know….Data, Data everywhere yet ...Problem: Heterogeneous Information SourcesProblem: Data Management in Large EnterprisesWhat are the users saying...Dilemma: Most of the business analysts’ time is not spent in true data analysisSlide 25What is Data Warehousing?Data Warehousing -- It is a processWhat is a Data Warehouse? A practitioners viewWhat is a Data Warehouse?Data Warehouse ArchitectureWarehousing data outside the operational systemsSlide 32What Is OLAP?OLTP vs. OLAPSlide 35Data MiningData Mining works with Warehouse DataWe want to know ...Data Mining Application AreasData Mining in UseWhat makes data mining possible?Business IntelligenceObjectivesBusiness Case StudyBusiness Case StudySlide 46Questions about Business ProcessesBuilding a Data WarehouseKnowledge as Intellectual CapitalGuidelines for Building a Data WarehouseThe Data Warehouse as Structural CapitalDistributing Business IntelligenceSample LAN-based DistributionSample Web-based DistributionMeasuring SuccessReturn on Investment (ROI)Sterling Airlines: ROIQuality of UseSlide 59Sterling Airlines: Quality of UseAcknowledgementsData Warehousing & Business Intelligence FundamentalsAgendaEvolution of DSSBusiness IntelligenceEvolution of Decision Support SystemsOverviewMost organizations began information processing on a small scale, automating one application at a time. Systems tended to grow independently to support defined functional areas. Each functional area tended to plan and develop systems in isolation from other areas.Evolution of Information ProcessingFile Transaction ProcessingData Based Management Systems (DBMS)4GLs & MISExtract ProcessingDecision Support Systems (DSS) Data WarehousesOLAPData MiningFile Transaction ProcessingThe traditional approach to file processing encouraged each functional area to develop and maintain specialized applications.Individual applications ran on unique master files housed on magnetic tapes.Problems With Traditional File Processing:Data redundancyLack of data integrityProgram-data dependencyLack of flexibilityPoor securityLack of data sharing and availabilityTraditional File Processing Data redundancy and inconsistency across files:File AStudent IDNameAddressZIP CodePhone NumberRegistration ApplicationLibrary ApplicationFinancial aidsApplication Credit RecordsApplicationFile BStudent IDFirst NameLast NameAddress & ZIPPhone NumberFile CStudent IDFirst & Last NameAddressZIP CodePhone NumberFile DSocial SecurityNameAddressZIP CodePhone NumberEvolution of Information ProcessingFile Transaction ProcessingData Based Management Systems (DBMS)4GLs & MIS Extract ProcessingDecision Support Systems (DSS) Data WarehousesOLAPData MiningData Base Management Systema single source for all processingRegistration IS applicationLibrary IS applicationFinancialaids applicationCredit RecordsIS applicationDBMS- database management systemINTEGRATED STUDENTS DATABASEStudents:NameAddressCredit Records:Number of creditsCourse numberBooks:TitleAuthorData DefinitionLanguageData ManipulationLanguageCommonData DictionaryEvolution of Information ProcessingFile Transaction ProcessingData Based Management Systems (DBMS)4GLs & MIS Extract ProcessingDecision Support Systems (DSS) Data WarehousesOLAPData MiningPCs, 4GLs, MISPCs and Fourth-Generation Languages brought access to data and users at the level of the end-user.MIS – focus on providing pre-specified reports to drive management decisionsEvolution of Information ProcessingFile Transaction ProcessingData Based Management Systems (DBMS)4GLs & MIS Extract ProcessingDecision Support Systems (DSS) Data WarehousesOLAPData MiningExtract ProgramsProgram extracting data from files and databases based on criteria.Reasons for Extract Programs Accessibilitymove data out of online processing systemsPerformance perform analytical functions separate from online processing functionsControlshift in control of the data the end-user ends up “owing” itProblems with Natural Evolution of Data Extraction Credibility of dataInconsistent conclusions as a result of extracting data at different times, using different criteria, using data from different unsynchronized data sourcesLow ProductivityLocating data, multiple storage technologies, multiple communication technologies, different data definitions Inability to transform data into informationDifficult to integrate extracted data, lack of historical dataEvolution of Information ProcessingFile Transaction ProcessingData Based Management Systems (DBMS)4GLs & MIS Extract ProcessingDecision Support Systems (DSS) Data WarehousesOLAPData MiningDecision Support SystemsComputer system at the management level of an organization that combines data, sophisticated analytical models, and user-friendly software to support semi-structured and unstructured decision making.DSS often tend to be stand-alone systems, developed by end-user groups not under central IS controlComponents of DSSDSS Data baseA collection of current and historical, internal & external dataDSS Model baseA collection of analytical (math, statistical) models that can easily be made accessible to the DSS user.DSS software systemUser interface and development environment that permits easy interaction between the users of the system and the DSS data & model base.Which are our lowest/highest margin customers ?Which are our lowest/highest margin customers ?Who are my customers and what products are they buying?Who are my customers and what products are they buying?Which customers are most likely to go to the competition ? Which customers are most likely to go to the competition ? What impact will new products/services have on revenue and margins?What impact will new products/services have on revenue and margins?What product promo-tions have the biggest impact on revenue?What product