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Lecture-1 Introduction to DATAWAREHOUSING

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Lecture-1 Introduction to DATAWAREHOUSING

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muneebmalik5527
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INTRODUCTION TO

DATAWAREHOUSING
Lecture # 01
Instructor: Mr. Sharjeel Ahmed
Slide Elements
• Introduction to Databases
• The Compelling Need for Data Warehousing
• Need for Data warehouse
• Data Warehouse
• Strategic Information
• Reason for the inability to provide strategic information
• Operational Vs Decision-support Systems
• Importance of Data Warehouse
INTRODUCTION TO DATABASES
Introduction to Databases
• A database is a structured collection of data that is
organized and stored in a way that allows for efficient
retrieval, management, and manipulation of data.

• Databases use tables to store data in rows and


columns, making it easy to access and query specific
pieces of information.

• They are essential for various applications, from basic


record-keeping to complex data-driven applications.
THE COMPELLING NEED FOR DATA
WAREHOUSING
Need for Data Warehouse - 01
• In the 1990s, as businesses grew more complex,
corporations spread globally, and competition
became fiercer, business executives became
desperate for information to stay competitive and
improve the bottom line.

• 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.
Need for Data Warehouse - 02
• The operational systems, important as they were,
could not provide strategic information.

• 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
Need for Data Warehouse - 03
• Organizations’ use of data warehousing.
Data Warehouse - 01
Functional Definition
• The data warehouse is an informational environment that
• Provides an integrated and total view of the enterprise
• Makes the enterprise’s current and historical information easily
available for decision making
• Makes decision-support transactions possible without hindering
operational systems
• Renders the organization’s information consistent
• Presents a flexible and interactive source of strategic information
Data Warehouse - 02
A Simple Concept for Information Delivery
• The methods of the last two decades using the operational computing
environment, were unsatisfactory. The new concept is not to generate
fresh data, but to make use of the large volumes of existing data and to
transform it into forms suitable for providing strategic information.

• The data warehouse exists to answer questions users have about the
business, the performance of the various operations, the business trends,
and about what can be done to improve the business.

• Data warehousing is really a simple concept: Take all the data you
already have in the organization, clean and transform it, and then provide
useful strategic information.
Data Warehouse - 03
An Environment, Not a Product
A data warehouse is NOT a single software or hardware product you
purchase to provide strategic information. It is, rather, a computing
environment where users can find strategic information, an
environment where users are put directly in touch with the data they
need to make better decisions. It is a user-centric environment.
The characteristics of this new computing environment:
• An ideal environment for data analysis and decision support
• Fluid, flexible, and interactive
• 100 percent user-driven
• Very responsive and conducive to the ask–answer–ask–again pattern
• Provides the ability to discover answers to complex, unpredictable
questions
Data Warehouse - 04
A Blend of Many Technologies
• The basic concept of data ware housing 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. Different technologies
are, therefore, needed to support these functions.
Data Warehouse - 04 (Cont.)
• The data warehouse: a blend of technologies.
Strategic Information - 01
• Strategic information refers to data and insights that are
specifically relevant to an organization's long-term goals,
planning, and decision-making at a higher, strategic level.

• It is the information that helps senior management and


executives make important choices about the direction of
the organization, its competitive positioning, and its overall
strategy.
Strategic Information – 02 : Reason for the
inability to provide strategic information
• The fundamental reason for the inability to provide strategic
information is that we have been trying all along to provide strategic
information from the operational systems.

• Inadequate attempts by IT to provide strategic information.


Operational Vs Decision-support Systems - 01
Operational Vs Decision-support Systems - 02
Importance of Data Warehouse - 01
• 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.

• Informational systems are different from the traditional operational


systems. Operational systems are not designed for strategic
information.

• We need a new type of computing environment to provide strategic


information.

• The data warehouse promises to be this new computing


environment.
Importance of Data Warehouse - 02
• The features of the new type of system environment are:
• Database designed for analytical tasks
• Data from multiple applications
• Easy to use and conducive to long interactive sessions by users
• Read-intensive data usage
• Direct interaction with the system by the users without IT assistance
• Content updated periodically and stable
• Content to include current and historical data
• Ability for users to run queries and get results online
• Ability for users to initiate reports

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