NJIT CIS 465 - Data Warehousing and Decision Support

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Data Warehousing Version 5.0 - 10/13/99Can your database answer questions like these?Slide 3What is a data warehouse?Why Data Warehousing?Why Data Warehousing - 2Why Data Warehousing - 3Why Data Warehousing - 4The Dilemma for Corporate ITThe Response of Corporate ITTransaction Systems vs. Analytical Support SystemsKey Difference: OLTP vs. OLAPA Multidimensional databaseData for Decision SupportSources of DataSources of Data - 2Operational Control vs. Operational StrategyComparison of Control and Strategy Data:Information Requirements by Management Level (Source: Gorry and Scott Morton)Dimensional ModelingDimensional Model of the BusinessSlide 22Transaction ProcessingSegregating Operational and Warehouse DataFundamental Obstacles With Traditional SystemsThe Data WarehousePractical Facts About the WarehouseTypical Dimensional ModelFact TableDimension TablesExampleExample QueryComponents of a Data Warehouse - 1Components of a Data Warehouse - 2Components of a Data Warehouse - 3Data Warehouse Access ToolsData Warehouse Access Tools - 2Data Warehouse Access Tools - 3Data Warehouse Access Tools - 4Developing the Data WarehouseSlide 41DW Summary: Key ConceptsDW Summary: CharacteristicsSlide 44CIS 465 - Data Warehousing 1Data WarehousingVersion 5.0 - 10/13/99CIS 465 - Data Warehousing 2Can your database answer questions like these?•What is the cost of staff to break into a new line of business?•What are the travel routes of my competition’s inventory?•At what velocity is my competitor moving toward a common goal?•How will a transaction on a certain date be affected by currency exchange rates?•Is a foreign labor source likely to produce a higher quality product?•Which 20% of the problem creates 80% of the problems?CIS 465 - Data Warehousing 3Can your database answer questions like these?•By product and location, how can we regain a lost customer base?•Which skill and staff levels are most likely to accept the voluntary layoff package?CIS 465 - Data Warehousing 4What is a data warehouse?•A data warehouse is a pool of data organized in a format that enables users to interpret data and convert it into useful information to gain knowledge from this interpretation.•It is a single place that contains complete and consistent data from multiple sources.•Data warehousing is the act of a business person extracting business value from the data stored in the data warehouse.CIS 465 - Data Warehousing 5Why Data Warehousing?•Managers do not make decisions that are “good” or “bad”, they make decisions on the basis of good or bad information.•Management information =–a. the right information–b. in the right form–c. at the right time.”•Most transaction-based information systems have difficulty delivering this information.CIS 465 - Data Warehousing 6Why Data Warehousing - 2•Not the right information:–data not easily accessible–meaning is subtly (or significantly different) from the question context.–Information is presented with too much or too little detail, covers the wrong time spans, or is in the wrong intervals.CIS 465 - Data Warehousing 7Why Data Warehousing - 3•Not the right time:–Getting this information may require the efforts of highly skilled professionals who are not generally available at the whim of business managers.–Data comes from a variety of different systems which are resident on a variety of different technology platforms.CIS 465 - Data Warehousing 8Why Data Warehousing - 4•Not the right format:–If data is extracted, merged, and converted into a meaningful information, often it is not in a usable format.–Users will want it loadable into a particular PC tool or spreadsheet with which he/she is familiar.–Printouts weighing 10 pounds are not in the right format.–a diskette with a COBOL file description is not in the right format.CIS 465 - Data Warehousing 9The Dilemma for Corporate IT•How to control scarce IT resources consumed by insatiable user demand for ad-hoc reports.•Each ad-hoc report generated by IT and analyzed by the user generates three more reports to further illuminate the insights gleamed in the first.•Often the extract programs have few reusable components.•The user is on a “voyage of discovery in a sea of data”.CIS 465 - Data Warehousing 10The Response of Corporate IT•New methodologies: Align the IT systems with the business goals and requirements.•These techniques concentrate on business process requirements, not decision support requirements.•Transaction systems must be rigorously specified in advance. The are an intersection between the organization and the customer.•These systems should not be a “voyage of discovery” for either.CIS 465 - Data Warehousing 11Transaction Systems vs. Analytical Support Systems•Transaction Systems:–Insert an order for 300 baseballs–Update this passenger’s airline reservation.–close-out accounts payable records for this vendor.–What is the current checking account balance for this customer?•Analytical Support Systems:–Did the sales promotion last quarter do better than the same promotion last year?–Is the five-day moving average for this security leading or trailing actual prices?–Which product line sells best in middle-America and how does this correlate to demographic data.CIS 465 - Data Warehousing 12Key Difference: OLTP vs. OLAP•OLTP: Processing specific functions•OLAP: providing flexibility for undetermined analysis.A Multidimensional databaseCIS 465 - Data Warehousing 14Data for Decision Support•The data must be integrated - requires data from many separate internal corporate databases.•The data must be enriched - through integration with other external data.•The data must be available - and not constrained by machine resources.CIS 465 - Data Warehousing 15Sources of Data•Internal Data:–Financial Systems–Logistics Systems–Sales Systems–Production Systems–Personnel Systems–Billing Systems–Information Systems•External Data Needs:–to recognize opportunities–to detect threats–to identify synergiesCIS 465 - Data Warehousing 16Sources of Data - 2•External Data Categories–Competitor Data–Economic Data–Industry Data–Credit Data–Commodity Data–Econometric Data–Psychometric Data–Meteorological Data–Demographic Data–Sales & Marketing DataCIS 465 - Data Warehousing 17Operational Control vs. Operational Strategy•Data is a source not just of operational control, but of


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