Data Warehousing: Engr. Madeha Mushtaq Department of Computer Science Iqra National University

DATA WAREHOUSING
ENGR. MADEHA MUSHTAQ

DEPARTMENT OF COMPUTER SCIENCE
IQRA NATIONAL UNIVERSITY
DATA WAREHOUSE
• A data warehouse (DW or DWH), also known as an enterprise data warehouse

(EDW), is a system used for reporting and data analysis.
• DWH is considered a core component of business intelligence.
• DWHs are central repositories of integrated data from one or more disparate
sources.
HISTORICAL OVERVIEW
• 1960
Master Files & Reports
• 1965
Lots of Master files!
• 1970
Direct Access Memory & DBMS
• 1975
Online high performance transaction processing
HISTORICAL OVERVIEW
• 1980
PCs and 4GL Technology (MIS/DSS)
• 1985 & 1990

Extract programs, extract processing,
The legacy system’s web.
WHY DATA WAREHOUSE?
• In the 1990s, businesses grew more complex, corporations spread globally, and
competition became fiercer.
• The operational computer systems did provide information to run the day-to-
day operations, but what the executives needed were different kinds of
information that could be readily used to make strategic decisions.
• The operational systems, important as they were, could not provide strategic
information.
WHY DATA WAREHOUSE?
• Businesses, therefore, were compelled to turn to new ways of getting strategic

information.
• Data warehousing is a new paradigm specifically intended to provide vital
strategic information.
• In the 1990s, organizations began to achieve competitive advantage by
building data warehouse systems.
• Figure shows a sample of strategic areas where data warehousing is already
producing results in different industries.
ORGANIZATION’S USE OF DATA WAREHOUSING
ESCALATING NEED FOR STRATEGIC INFORMATION
• The executives and managers who are responsible for keeping the enterprise competitive need
strategic information to make proper decisions.
• Strategic information is information to formulate the business strategies, establish goals, set
objectives, and monitor results.
• Some examples of business objectives are:
• Retain the present customer base
• Increase the customer base by 15% over the next 5 years
• Improve product quality levels in the top five product groups
• Bring three new products to market in 2 years
• Increase sales by 15% in the North East Division
ESCALATING NEED FOR STRATEGIC INFORMATION
• For making decisions about these business objectives, executives and

managers need in-depth knowledge of their company’s operations, learn about
the key business factors and how these affect one another.
• Strategic information is not intended to produce an invoice, make a shipment,
settle a claim, or post a withdrawal from a bank account.
• Strategic information is far more important for the continued health and
survival of the corporation. Critical business decisions depend on the
availability of proper strategic information in an enterprise.
CHARACTERISTICS OF STRATEGIC INFORMATION
INFORMATION CRISIS
• We are faced with two startling facts:

• Organizations have lots of data;
• Information technology resources and systems are not effective at turning all that
data into useful strategic information.
• Most companies are faced with an information crisis not because of lack of sufficient
data, but because the available data is not readily usable for strategic decision making.
• The reason is the data of an enterprise is spread across many types of incompatible
structures and systems.
TECHNOLOGY TRENDS
• Size of Data Sets are going up .

• Cost of data storage is coming down .
• The amount of data average business collects and stores is doubling every year.
• Total hardware and software cost to store and manage 1 Mbyte of data
• 1990: ~ $15
• 2002: ~ ¢15 (Down 100 times)
• By 2007: < ¢1 (Down 150 times)

TECHNOLOGY TRENDS
• But size is not everything!

• Businesses demand Intelligence (BI).
• Complex questions from integrated data.
• “Intelligent Enterprise” or “Strategic Information”.
DBMS APPROACH
• List of all items that were sold last month?
• List of all items purchased by Tariq Majeed?
• The total sales of the last month grouped by branch?
• How many sales transactions occurred during the month of January?

STRATEGIC INFORMATION
• Which items sell together? Which items to stock?
• Where and how to place the items? What discounts to offer?
• How best to target customers to increase sales at a branch?
• Which customers are most likely to respond to my next promotional campaign,

and why?
OPERATIONAL VERSUS DECISION-SUPPORT SYSTEMS
• All the past attempts by IT to provide strategic information have been failures.
• This was mainly because IT has been trying to provide strategic information from
operational systems.
• These operational systems such as order processing, inventory control, claims
processing, outpatient billing, and so on are not designed or intended to provide
strategic information.
• Only specially designed decision support systems or informational systems can
provide strategic information.
Inadequate attempts by IT to provide strategic information

Figure summarizes the differences between the traditional operational systems and the newer
informational/Decision Support systems that need to be built.
BUSINESS INTELLIGENCE AT THE DATA WAREHOUSE
DATA WAREHOUSE DEFINED
• The Data warehouse is thus the decision support system that can provide strategic
information for analysis, discerning trends, and monitoring performance. The DWH
• Provides an integrated and total view of the enterprise.

• Makes the enterprise’s current and historical information easily available for
decision making.
• Renders the organization’s information consistent.
• Presents a flexible and interactive source of strategic information.
PROCESSING REQUIREMENTS IN DATA WAREHOUSE
Most of the processing in DWH for strategic information will have to be

analytical. There are four levels of analytical processing requirements:
• Running of simple queries and reports against current and historical data
• Ability to perform “what if” analysis in many different ways.
• Ability to query, step back, analyze, and then continue the process to any
desired length.
• Spot historical trends and apply them for future results.
A BLEND OF MANY TECHNOLOGIES
Let us re-examine the basic concept of data warehousing. The basic concept of data
warehousing is:
• Take all the data from the operational systems
• Where necessary, include relevant data from outside, such as industry benchmark
indicators
• Integrate all the data from the various sources
• Remove inconsistencies and transform the data
• Store the data in formats suitable for easy access for decision making
• Although a simple concept, it involves different functions: data extraction, the
function of loading the data, transforming the data, storing the data, and providing
user interfaces.
DEFINING FEATURES OF DATA WAREHOUSE
• Subject-Oriented Data
• Integrated Data
• Time-variant Data
• Nonvolatile Data
• Data Granularity
SUBJECT-ORIENTED DATA
• In operational systems, data is stored by individual applications.

• In the data warehouse, data is stored by business subjects, not by applications.
• Business subjects differ from enterprise to enterprise.
• These are the subjects critical for the enterprise.
• For a manufacturing company, sales, shipments, and inventory are critical business
subjects.
• For a retail store, sales at the check-out counter is a critical subject.
• Figure distinguishes between how data is stored in operational systems and in the data
warehouse.
SUBJECT-ORIENTED DATA
INTEGRATED DATA
• The data in the data warehouse comes from several operational systems.
• Source data are in different databases, so the file layouts, character code
representations could be different, naming conventions could be different,
attributes for data items could be different.
• Before the data from various disparate sources can be usefully stored in a data
warehouse, data inconsistencies are removed; data from diverse operational
applications is integrated.
INTEGRATED DATA
TIME-VARIANT DATA
• For an operational system, the stored data contains the current values.
• we might store some past transactions in operational systems, but, essentially,
operational systems reflect current information because these systems support day-
to-day current operations.
• A data warehouse, because of the very nature of its purpose, has to contain
historical data, not just current values.
• For example, if a user wants to find out the reason for the drop in sales in the North
East division, the user needs all the sales data for that division over a period
extending back in time.
TIME-VARIANT DATA
• When an analyst in a grocery chain wants to promote two or more products

together, that analyst wants sales of the selected products over a number of
past quarters.
• The time-variant nature of the data in a data warehouse:
• Allows for analysis of the past
• Relates information to the present
• Enables forecasts for the future
NONVOLATILE DATA
• Data extracted from the various operational systems and pertinent data obtained from
outside sources are transformed, integrated, and stored in the data warehouse.
• The data in the data warehouse is not intended to run the day-to-day business.
• Data from the operational systems are moved into the data warehouse at specific
intervals. We do not update the data warehouse every time we process a single order.
• Depending on the requirements of the business, these data movements take place twice a
day, once a day, once a week, or once in two weeks.
NONVOLATILE DATA
As illustrated in Figure, every business transaction does not update the data in the data warehouse. The
business transactions update the operational system databases in real time.
DATA GRANULARITY
• In an operational system, data is usually kept at the lowest level of detail.

• We do not usually keep summary data in an operational system.
• Frequently, the analysis begins at a high level and moves down to lower levels
of detail.
• Data granularity refers to the level of detail. Depending on the requirements,
multiple levels of detail may be present. Many data warehouses have at least
dual levels of granularity.
DATA GRANULARITY
THREE DATA LEVELS IN A BANKING DATA WAREHOUSE

REFERENCE BOOKS
• Data Warehousing Fundamentals, 2nd Edition, Paulraj Ponniah, 2010, John

Wiley & Sons Inc., NY.
• Building the Data Warehouse, 4th Edition, W. H. Inmon, 2005, John Wiley &
Sons Inc., NY.
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DATA WAREHOUSING

ENGR. MADEHA MUSHTAQ

• A data warehouse (DW or DWH), also known as an enterprise data warehouse

• 1985 & 1990

• Businesses, therefore, were compelled to turn to new ways of getting strategic

• For making decisions about these business objectives, executives and

• We are faced with two startling facts:

• Size of Data Sets are going up .

• 2002: ~ ¢15 (Down 100 times)

• By 2007: < ¢1 (Down 150 times)

• But size is not everything!

• List of all items that were sold last month?

• List of all items purchased by Tariq Majeed?

• The total sales of the last month grouped by branch?

• How many sales transactions occurred during the month of January?

• Which items sell together? Which items to stock?

• Where and how to place the items? What discounts to offer?

• How best to target customers to increase sales at a branch?

• Which customers are most likely to respond to my next promotional campaign,

Inadequate attempts by IT to provide strategic information

• Provides an integrated and total view of the enterprise.

Most of the processing in DWH for strategic information will have to be

• In operational systems, data is stored by individual applications.

• When an analyst in a grocery chain wants to promote two or more products

• In an operational system, data is usually kept at the lowest level of detail.

THREE DATA LEVELS IN A BANKING DATA WAREHOUSE

• Data Warehousing Fundamentals, 2nd Edition, Paulraj Ponniah, 2010, John

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