Business Intelligence/ Data warehousing

Lakshmi Prashad PMG

Overview
0. Introduction I. Data Warehousing II. Decision Support and OLAP III. Data Mining

A producer wants to know.

Which are our lowest/highest margin customers ? What is the most effective distribution channel? Who are my customers and what products are they buying?

What product prom-otions have the biggest impact on revenue? What impact will new products/services have on revenue and margins?

Which customers are most likely to go to the competition ?

Data, Data everywhere yet ... I cant find the data I need
data is scattered over the network many versions, subtle differences

I cant get the data I need

need an expert to get the data

I cant understand the data I found

available data poorly documented

I cant use the data I found

results are unexpected data needs to be transformed from one form to other
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What is a Data Warehouse?

A single, complete and consistent store of data obtained from a variety of different sources made available to end users in a what they can understand and use in a business context.
[Barry Devlin]
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What are the users saying...

Data should be integrated across the enterprise Summary data has a real value to the organization Historical data holds the key to understanding data over time What-if capabilities are required
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What is Data Warehousing?

Information A process of transforming data into information and making it available to users in a timely enough manner to make a difference
[Forrester Research, April 1996]
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Data

Evolution
60s: Batch reports
hard to find and analyze information inflexible and expensive, reprogram every new request

70s: Terminal-based DSS and EIS (executive information systems)

still inflexible, not integrated with desktop tools

80s: Desktop data access and analysis tools

query tools, spreadsheets, GUIs easier to use, but only access operational databases

90s: Data warehousing with integrated OLAP engines and tools 8

Very Large Data Bases

Terabytes -- 10^12 bytes:Walmart -- 24 Terabytes Petabytes -- 10^15 bytes:Geographic Information Systems Exabytes -- 10^18 bytes: National Medical Records

Zettabytes -- 10^21 bytes:

Zottabytes -- 10^24 bytes:

Weather images
Intelligence Agency Videos
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Data Warehousing -It is a process

Technique for assembling and managing data from various sources for the purpose of answering business questions. Thus making decisions that were not previous possible A decision support database maintained separately from the organizations operational database 10

Data Warehouse
A data warehouse is a
subject-oriented integrated time-varying non-volatile

collection of data that is used primarily in organizational decision making.

-- Bill Inmon, Building the Data Warehouse 1996

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Explorers, Farmers and Tourists

Tourists: Browse information harvested by farmers

Farmers: Harvest information from known access paths

Explorers: Seek out the unknown and previously unsuspected rewards hiding in the detailed data
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Data Warehouse Architecture

Relational Databases Optimized Loader ERP Systems

Extraction Cleansing Data Warehouse Engine Analyze Query

Purchased Data

Legacy Data

Metadata Repository
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Data Warehouse for Decision Support & OLAP

Putting Information technology to help the knowledge worker make faster and better decisions
Which of my customers are most likely to go to the competition?
What product promotions have the biggest impact on revenue? How did the share price of software companies correlate with profits over last 10 years?
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Decision Support
Used to manage and control business Data is historical or point-in-time Optimized for inquiry rather than update Use of the system is loosely defined and can be ad-hoc Used by managers and end-users to understand the business and make judgements
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Data Mining works with Warehouse Data

Data Warehousing provides the Enterprise with a memory

Data Mining provides the Enterprise with intelligence

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We want to know ...

Given a database of 100,000 names, which persons are the least likely to default on their credit cards?
Which types of transactions are likely to be fraudulent given the demographics and transactional history of a particular customer? If I raise the price of my product by Rs. 2, what is the effect on my ROI? If I offer only 2,500 airline miles as an incentive to purchase rather than 5,000, how many lost responses will result? If I emphasize ease-of-use of the product as opposed to its technical capabilities, what will be the net effect on my revenues? Which of my customers are likely to be the most loyal? Data Mining helps extract such information
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Application Areas
Industry Finance Insurance Telecommunication Transport Consumer goods Data Service providers Utilities Application Credit Card Analysis Claims, Fraud Analysis Call record analysis Logistics management promotion analysis Value added data Power usage analysis
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Data Mining in Use

The US Government uses Data Mining to track fraud A Supermarket becomes an information broker Basketball teams use it to track game strategy Cross Selling Warranty Claims Routing Holding on to Good Customers Weeding out Bad Customers

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What makes data mining possible?

Advances in the following areas are making data mining deployable:
data warehousing better and more data (i.e., operational, behavioral, and demographic) the emergence of easily deployed data mining tools and the advent of new data mining techniques.
-- Gartner Group
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Why Separate Data Warehouse?

Performance
Op dbs designed & tuned for known txs & workloads. Complex OLAP queries would degrade perf. for op txs. Special data organization, access & implementation methods needed for multidimensional views & queries.

Function
Missing data: Decision support requires historical data, which op dbs do not typically maintain. Data consolidation: Decision support requires consolidation (aggregation, summarization) of data from many heterogeneous sources: op dbs, external sources. Data quality: Different sources typically use inconsistent data representations, codes, and formats which have to be 21 reconciled.

What are Operational Systems?

They are OLTP systems Run mission critical applications Need to work with stringent performance requirements for routine tasks Used to run a business!
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RDBMS used for OLTP

Database Systems have been used traditionally for OLTP
clerical data processing tasks detailed, up to date data structured repetitive tasks read/update a few records isolation, recovery and integrity are critical
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Operational Systems
Run the business in real time Based on up-to-the-second data Optimized to handle large numbers of simple read/write transactions Optimized for fast response to predefined transactions Used by people who deal with customers, products -- clerks, salespeople etc. They are increasingly used by customers
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Examples of Operational Data

Data Industry Usage
Track Customer Details Finance Control account activities Retail Generate bills, manage stock Telecomm- Billing unications Control Production

Technology

Volumes

Customer All File Account Balance Point-ofSale data Call Record

Legacy application, flat Small-medium files, main frames Legacy applications, Large hierarchical databases, mainframe ERP, Client/Server, Very Large relational databases Legacy application, Very Large hierarchical database, mainframe ERP, Medium relational databases, AS/400
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Production ManufactRecord uring

So, whats different?

Application-Orientation vs. Subject-Orientation

Application-Orientation Subject-Orientation

Operational Database
Loans Credit Card Trust Savings Customer

Data Warehouse

Vendor

Product
Activity
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OLTP vs. Data Warehouse

OLTP systems are tuned for known transactions and workloads while workload is not known a priori in a data warehouse Special data organization, access methods and implementation methods are needed to support data warehouse queries (typically multidimensional queries)
e.g., average amount spent on phone calls between 9AM-5PM in Pune during the month of December
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OLTP vs Data Warehouse

OLTP
Application Oriented Used to run business Detailed data Current up to date Isolated Data Repetitive access Clerical User

Warehouse (DSS)
Subject Oriented Used to analyze business Summarized and refined Snapshot data Integrated Data Ad-hoc access Knowledge User (Manager)
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OLTP vs Data Warehouse

OLTP
Performance Sensitive Few Records accessed at a time (tens) Read/Update Access No data redundancy Database Size 100MB -100 GB

Data Warehouse
Performance relaxed Large volumes accessed at a time(millions) Mostly Read (Batch Update) Redundancy present Database Size 100 GB - few terabytes

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OLTP vs Data Warehouse

OLTP
Transaction throughput is the performance metric Thousands of users Managed in entirety

Data Warehouse
Query throughput is the performance metric Hundreds of users Managed by subsets

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To summarize ...
OLTP Systems are used to run a business

The Data Warehouse helps to optimize the business

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Why Now?
Data is being produced ERP provides clean data The computing power is available The computing power is affordable The competitive pressures are strong Commercial products are available
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Myths surrounding OLAP Servers and Data Marts

Data marts and OLAP servers are departmental solutions supporting a handful of users

Million dollar massively parallel hardware is needed to deliver fast time for complex queries
OLAP servers require massive and unwieldy indices Complex OLAP queries clog the network with data Data warehouses must be at least 100 GB to be effective
Source -- Arbor Software Home Page
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I. Data Warehouses: Architecture, Design & Construction

DW Architecture Loading, refreshing Structuring/Modeling DWs and Data Marts

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Data Warehouse Architecture

Relational Databases
Optimized Loader

ERP Systems

Extraction Cleansing Data Warehouse Engine Analyze Query

Purchased Data

Legacy Data

Metadata Repository
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Components of the Warehouse

Data Extraction and Loading The Warehouse Analyze and Query -- OLAP Tools Metadata Data Mining tools

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Loading the Warehouse

Cleaning the data before it is loaded

Source Data
Operational/ Source Data Sequential Legacy Relational External

Typically host based, legacy applications

Customized applications, COBOL, 3GL, 4GL

Point of Contact Devices

POS, ATM, Call switches

External Sources
Nielsens, Acxiom, CMIE, Vendors, Partners
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Data Quality - The Reality

Tempting to think creating a data warehouse is simply extracting operational data and entering into a data warehouse

Nothing could be farther from the truth Warehouse data comes from disparate questionable sources

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Data Quality - The Reality

Legacy systems no longer documented
Outside sources with questionable quality procedures Production systems with no built in integrity checks and no integration
Operational systems are usually designed to solve a specific business problem and are rarely developed to a a corporate plan
And get it done quickly, we do not have time to worry about corporate standards...
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Data Integration Across Sources

Savings Loans Trust Credit card

Same data different name

Different data Same name

Data found here nowhere else

Different keys same data

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Data Transformation Example

Data Warehouse
appl appl appl appl appl appl appl appl appl appl appl appl A - m,f B - 1,0 C - x,y D - male, female A - pipeline - cm B - pipeline - in C - pipeline - feet D - pipeline - yds A - balance B - bal C - currbal D - balcurr
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Data Integrity Problems

Same person, different spellings Agarwal, Agrawal, Aggarwal etc... Multiple ways to denote company name Persistent Systems, PSPL, Persistent Pvt. LTD. Use of different names mumbai, bombay Different account numbers generated by different applications for the same customer Required fields left blank Invalid product codes collected at point of sale manual entry leads to mistakes in case of a problem use 9999999

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Data Transformation Terms

Extracting Conditioning Scrubbing Merging Householding
Enrichment Scoring Loading Validating Delta Updating

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Data Transformation Terms

Extracting
Capture of data from operational source in as is status

Sources for data generally in legacy mainframes in VSAM, IMS, IDMS, DB2; more data today in relational databases on Unix

Conditioning
The conversion of data types from the source to the target data store (warehouse) -always a relational database
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Data Transformation Terms

Householding
Identifying all members of a household (living at the same address) Ensures only one mail is sent to a household Can result in substantial savings: 1 lakh catalogues at Rs. 50 each costs Rs. 50 lakhs. A 2% savings would save Rs. 1 lakh.
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Data Transformation Terms

Enrichment
Bring data from external sources to augment/enrich operational data. Data sources include Dunn and Bradstreet, A. C. Nielsen, CMIE, IMRA etc...

Scoring
computation of a probability of an event. e.g..., chance that a customer will defect to AT&T from MCI, chance that a customer is likely to buy a new product
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Loads
After extracting, scrubbing, cleaning, validating etc. need to load the data into the warehouse Issues
huge volumes of data to be loaded small time window available when warehouse can be taken off line (usually nights) when to build index and summary tables allow system administrators to monitor, cancel, resume, change load rates Recover gracefully -- restart after failure from where you were and without loss of data integrity
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Refresh
Propagate updates on source data to the warehouse Issues:
when to refresh how to refresh -- refresh techniques

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When to Refresh?
periodically (e.g., every night, every week) or after significant events
on every update: not warranted unless warehouse data require current data (up to the minute stock quotes) refresh policy set by administrator based on user needs and traffic possibly different policies for different sources
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Refresh Techniques
Full Extract from base tables
read entire source table: too expensive maybe the only choice for legacy systems

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Data -- Heart of the Data Warehouse

Heart of the data warehouse is the data itself! Single version of the truth Corporate memory Data is organized in a way that represents business -- subject orientation

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Data Warehouse Structure

Subject Orientation -- customer, product, policy, account etc... A subject may be implemented as a set of related tables. E.g., customer may be five tables

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Data Warehouse Structure

base customer (1985-87)
custid, from date, to date, name, phone, dob Time is base customer (1988-90) part of custid, from date, to date, name, credit rating, key of employer each table

customer activity (1986-89) -- monthly summary customer activity detail (1987-89) customer activity detail (1990-91)

custid, activity date, amount, clerk id, order no custid, activity date, amount, line item no, order no
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Data Granularity in Warehouse

Summarized data stored
reduce storage costs reduce cpu usage increases performance since smaller number of records to be processed design around traditional high level reporting needs tradeoff with volume of data to be stored and detailed usage of data
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Granularity in Warehouse
Can not answer some questions with summarized data
Did Anand call Seshadri last month? Not possible to answer if total duration of calls by Anand over a month is only maintained and individual call details are not.

Detailed data too voluminous

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Granularity in Warehouse
Tradeoff is to have dual level of granularity
Store summary data on disks
95% of DSS processing done against this data

Store detail on tapes

5% of DSS processing against this data

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Vertical Partitioning
Acct. No Name Balance Date Opened Interest Rate Address

Frequently accessed
Acct. Balance No Acct. No Name Date Opened Interest Rate

Rarely accessed
Address

Smaller table and so less I/O

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Derived Data
Introduction of derived (calculated data) may often help Have seen this in the context of dual levels of granularity Can keep auxiliary views and indexes to speed up query processing

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Schema Design
Database organization
must look like business must be recognizable by business user approachable by business user Must be simple

Schema Types
Star Schema Fact Constellation Schema Snowflake schema
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Dimension Tables
Dimension tables
Define business in terms already familiar to users Wide rows with lots of descriptive text Small tables (about a million rows) Joined to fact table by a foreign key heavily indexed typical dimensions
time periods, geographic region (markets, cities), products, customers, salesperson, etc.
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Fact Table
Central table
mostly raw numeric items narrow rows, a few columns at most large number of rows (millions to a billion) Access via dimensions

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Star Schema
A single fact table and for each dimension one dimension table Does not capture hierarchies directly
T i
date, custno, prodno, cityname, ...

c u s t

f a c t

p r o d c i t y

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Snowflake schema
Represent dimensional hierarchy directly by normalizing tables. Easy to maintain and saves storage
T i e
date, custno, prodno, cityname, ...

c u s t

f a c t

p r o d
c i t y
r e g i o 65 n

Fact Constellation
Fact Constellation
Multiple fact tables that share many dimension tables Booking and Checkout may share many dimension tables in the hotel industry
Hotels

Booking Checkout
Customer

Promotion

Travel Agents

Room Type
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De-normalization
Normalization in a data warehouse may lead to lots of small tables Can lead to excessive I/Os since many tables have to be accessed De-normalization is the answer especially since updates are rare

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Data Warehouse vs. Data Marts

What comes first

From the Data Warehouse to Data Marts

Information
Individually Structured
Departmentally Structured

Less History Normalized Detailed More

Organizationally Structured

Data Warehouse

Data
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Data Warehouse and Data Marts

OLAP Data Mart Lightly summarized Departmentally structured

Organizationally structured Atomic Detailed Data Warehouse Data

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Characteristics of the Departmental Data Mart

OLAP Small Flexible Customized by Department Source is departmentally structured data warehouse
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Techniques for Creating Departmental Data Mart

OLAP
Sales Finance Mktg.

Subset Summarized Superset Indexed Arrayed

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Data Mart Centric

Data Sources

Data Marts

Data Warehouse

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Problems with Data Mart Centric Solution

If you end up creating multiple warehouses, integrating them is a problem

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True Warehouse
Data Sources

Data Warehouse

Data Marts

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II. On-Line Analytical Processing (OLAP)

Making Decision Support Possible

Limitations of SQL A Freshman in Business needs a Ph.D. in SQL

-- Ralph Kimball
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Typical OLAP Queries

Write a multi-table join to compare sales for each product line YTD this year vs. last year.

Repeat the above process to find the top 5

product contributors to margin. Repeat the above process to find the sales of a product line to new vs. existing customers. Repeat the above process to find the customers that have had negative sales growth.

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What Is OLAP?
Online Analytical Processing - coined by EF Codd in 1994 paper contracted by Arbor Software* Generally synonymous with earlier terms such as Decisions Support, Business Intelligence, Executive Information System OLAP = Multidimensional Database MOLAP: Multidimensional OLAP (Arbor Essbase, Oracle Express) ROLAP: Relational OLAP (Informix MetaCube, Microstrategy DSS Agent)
* Reference: http://www.arborsoft.com/essbase/wht_ppr/coddTOC.html 79

The OLAP Market

Rapid growth in the enterprise market
1995: $700 Million 1997: $2.1 Billion

Significant consolidation activity among major DBMS vendors

10/94: Sybase acquires ExpressWay 7/95: Oracle acquires Express 11/95: Informix acquires Metacube 1/97: Arbor partners up with IBM 10/96: Microsoft acquires Panorama

Result: OLAP shifted from small vertical niche to mainstream DBMS category
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Strengths of OLAP
It is a powerful visualization paradigm It provides fast, interactive response times It is good for analyzing time series

It can be useful to find some clusters and

outliers Many vendors offer OLAP tools
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OLAP Is FASMI
Fast Analysis Shared Multidimensional Information

Nigel Pendse, Richard Creath - The OLAP Report

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Multi-dimensional Data
HeyI sold $100M worth of goods
Dimensions: Product, Region, Time Hierarchical summarization paths
W S N Juice Cola Milk Cream Toothpaste Soap 1 2 34 5 6 7

Product

Product Industry

Region Country

Time Year

Category

Region

Quarter

Product

City

Month

Week
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Month
Office Day

Data Cube Lattice

Cube lattice ABC AB AC BC A B C none Can materialize some groupbys, compute others on demand Question: which groupbys to materialze? Question: what indices to create Question: how to organize data (chunks, etc)
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Visualizing Neighbors is simpler

1 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2 3 4 5 6 7 8
M o n th Apr Apr Apr Apr Apr Apr Apr Apr M ay M ay M ay M ay M ay M ay M ay M ay Ju n Ju n S to re 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 S a le s

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A Visual Operation: Pivot (Rotate)

Juice
Cola Milk

10 Region Product 47 30

Cream 12

3/1 3/2 3/3 3/4

Date

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Slicing and Dicing

Product The Telecomm Slice

Household Telecomm Video Europe Far East India Retail Direct Special

Audio

Sales Channel
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Roll-up and Drill Down

Higher Level of Aggregation

Sales Channel Region Country State Location Address Sales Representative

Low-level Details
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Drill-Down

Nature of OLAP Analysis

Aggregation -- (total sales, percent-to-total) Comparison -- Budget vs. Expenses Ranking -- Top 10, quartile analysis Access to detailed and aggregate data Complex criteria specification Visualization

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Organizationally Structured Data

Different Departments look at the same detailed data in different ways. Without the detailed, organizationally structured data as a foundation, there is no reconcilability of data
marketing sales finance manufacturing

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Multidimensional Spreadsheets
Analysts need spreadsheets that support
pivot tables (cross-tabs) drill-down and roll-up slice and dice sort selections derived attributes

Popular in retail domain

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Relational OLAP: 3 Tier DSS

Data Warehouse ROLAP Engine Decision Support Client

Database Layer

Application Logic Layer

Presentation Layer

Store atomic data in industry standard RDBMS.

Generate SQL execution plans in the ROLAP engine to obtain OLAP functionality.

Obtain multidimensional reports from the DSS Client.

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MD-OLAP: 2 Tier DSS

MDDB Engine MDDB Engine Decision Support Client

Database Layer

Application Logic Layer

Presentation Layer

Store atomic data in a proprietary data structure (MDDB), pre-calculate as many outcomes as possible, obtain OLAP functionality via proprietary algorithms running against this data.

Obtain multidimensional reports from the DSS Client.

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Recipe for a Successful Warehouse

For a Successful Warehouse

From Larry Greenfield, http://pwp.starnetinc.com/larryg/index.html

From day one establish that warehousing is a joint user/builder project Establish that maintaining data quality will be an ONGOING joint user/builder responsibility Train the users one step at a time Consider doing a high level corporate data model in no more than three weeks
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For a Successful Warehouse

Look closely at the data extracting, cleaning, and loading tools

Implement a user accessible automated directory to information stored in the warehouse Determine a plan to test the integrity of the data in the warehouse
From the start get warehouse users in the habit of 'testing' complex queries
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For a Successful Warehouse

Coordinate system roll-out with network administration personnel

When in a bind, ask others who have done the same thing for advice
Be on the lookout for small, but strategic, projects Market and sell your data warehousing systems

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Data Warehouse Pitfalls

You are going to spend much time extracting, cleaning, and loading data Despite best efforts at project management, data warehousing project scope will increase You are going to find problems with systems feeding the data warehouse

You will find the need to store data not being captured by any existing system
You will need to validate data not being validated by transaction processing systems
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Data Warehouse Pitfalls

Some transaction processing systems feeding the warehousing system will not contain detail Many warehouse end users will be trained and never or seldom apply their training After end users receive query and report tools, requests for IS written reports may increase

Your warehouse users will develop conflicting business rules

Large scale data warehousing can become an exercise in data homogenizing
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Data Warehouse Pitfalls

'Overhead' can eat up great amounts of disk space The time it takes to load the warehouse will expand to the amount of the time in the available window... and then some Assigning security cannot be done with a transaction processing system mindset You are building a HIGH maintenance system You will fail if you concentrate on resource optimization to the neglect of project, data, and customer management issues and an understanding of what adds value to the customer 100

Useful URLs
Ralph Kimballs home page
http://www.rkimball.com

Larry Greenfields Data Warehouse Information Center

http://pwp.starnetinc.com/larryg/

Data Warehousing Institute

http://www.dw-institute.com/

OLAP Council
http://www.olapcouncil.com/
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