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Chapter 12
The Data Warehouse
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In this chapter, you will learn:

How operational data and decision support data differ What a data warehouse is and how data for it are prepared What star schemas are and how they are constructed What steps are required to successfully implement a data warehouse What data mining is and what role it plays in decision support
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The Need for Data Analysis

Managers must be able to track daily transactions to evaluate how the business is performing By tapping into the operational database, management can develop strategies to meet organizational goals Data analysis can provide information about short-term tactical evaluations and strategies
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Solving Business Problems and Adding Value with Data Warehouse-Based Solutions

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Solving Business Problems and Adding Value with Data Warehouse-Based Solutions (continued)

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Decision Support Systems

Methodology (or series of methodologies) designed to extract information from data and to use such information as a basis for decision making Decision support system (DSS):
Arrangement of computerized tools used to assist managerial decision making within a business Usually requires extensive data massaging to produce information Used at all levels within an organization Often tailored to focus on specific business areas Provides ad hoc query tools to retrieve data and to display data in different formats
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Decision Support Systems (continued)

Composed of four main components:
Data store component
Basically a DSS database

Data extraction and filtering component

Used to extract and validate data taken from operational database and external data sources

End-user query tool

Used to create queries that access database

End-user presentation tool

Used to organize and present data
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Main Components of a Decision Support System (DSS)

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Transforming Operational Data Into Decision Support Data

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Contrasting Operational and DSS Data Characteristics

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Ten-Year Sales History for a Single Department, in Millions of Dollars

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12 Yearly Sales Summaries, Two Stores and Two Departments per Store, in Millions of Dollars

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The Data Warehouse

Integrated, subject-oriented, time-variant, nonvolatile database that provides support for decision making

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A Comparison of Data Warehouse and Operational Database Characteristics

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Creating a Data Warehouse

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DSS Architectural Styles

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Online Analytical Processing

Advanced data analysis environment that supports decision making, business modeling, and operations research OLAP systems share four main characteristics:
Use multidimensional data analysis techniques Provide advanced database support Provide easy-to-use end-user interfaces Support client/server architecture
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Operational vs. Multidimensional View of Sales

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Integration of OLAP with a Spreadsheet Program

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OLAP Client/Server Architecture

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OLAP Server Arrangement

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OLAP Server with Multidimensional Data Store Arrangement

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OLAP Server With Local Mini Data Marts

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Bitmap Representation of REGION Values

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Typical ROLAP Client/Server Architecture

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MOLAP Client/Server Architecture

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Relational vs. Multidimensional OLAP

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Star Schemas
Data modeling technique used to map multidimensional decision support data into a relational database Creates the near equivalent of a multidimensional database schema from the existing relational database Yield an easily implemented model for multidimensional data analysis, while still preserving the relational structures on which the operational database is built Has four components: facts, dimensions, attributes, and attribute hierarchies
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Simple Star Schema

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Possible Attributes for Sales Dimensions

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Three-Dimensional View of Sales

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Slice and Dice View of Sales

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Location Attribute Hierarchy

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Attribute Hierarchies In Multidimensional Analysis

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Star Schema for Sales

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Orders Star Schema

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Normalized Dimension tables

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Multiple Fact Tables

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Implementing a Data Warehouse

Numerous constraints:
Available funding
Managements view of the role played by an IS department and of the extent and depth of the information requirements Corporate culture

No single formula can describe perfect data warehouse development

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Factors Common to Data Warehousing

Data warehouse is not a static database Dynamic framework for decision support that is always a work in progress Data warehouse data cross departmental lines and geographical boundaries Must satisfy:
Data integration and loading criteria Data analysis capabilities with acceptable query performance End-user data analysis needs

Apply database design procedures

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Data Warehouse Implementation Road Map

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Data Mining
Tools that:
analyze data
uncover problems or opportunities hidden in data relationships, form computer models based on their findings, and then use the models to predict business behavior

Require minimal end-user intervention

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Extraction of Knowledge From Data

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Data-Mining Phases

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A Sample of Current Data Warehousing and Data-Mining Vendors

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Summary
Data analysis is used to derive and interpret information from data Decision support is a methodology designed to extract information from data and to use such information as a basis for decision making Decision support system is an arrangement of computerized tools used to assist managerial decision making within a business Data warehouse is an integrated, subjectoriented, time-variant, nonvolatile database that provides support for decision making
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Summary (continued)
Online analytical processing is an advanced data analysis environment that supports decision making, business modeling, and operations research

Star schema is a data-modeling technique used to map multidimensional decision support data into a relational database
The implementation of any company-wide information system is subject to conflicting organizational and behavioral factors
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Summary (continued)
Data mining automates analysis of operational data with the intention of finding previously unknown data characteristics, relationships, dependencies, and/or trends

Data warehouse is storage location for decision support data

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