Chapter 3:
Data Warehousing
Business Intelligence and Analytics: Systems for Decision Support
(10th Edition)
Business Intelligence and Analytics: Systems for Decision Support
(10th Edition)
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Learning Objectives
(Continued…)
Understand the basic definitions and concepts of data warehouses
Learn different types of data warehousing architectures; their comparative advantages and disadvantages
Describe the processes used in developing and managing data warehouses
Explain data warehousing operations
…
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Learning Objectives
Explain the role of data warehouses in decision support
Explain data integration and the extraction, transformation, and load (ETL) processes
Describe real-time (a.k.a. right-time and/or active) data warehousing
Understand data warehouse administration and security issues
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Opening Vignette…
“Isle of Capri Casinos Is Winning with Enterprise Data Warehouse”
Company background
Problem description
Proposed solution
Results
Answer & discuss the case questions.
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Questions for the Opening Vignette
Why is it important for Isle to have an EDW?
What were the business challenges or opportunities that Isle was facing?
What was the process Isle followed to realize EDW? Comment on the potential challenges Isle might have had going through the process of EDW development.
What were the benefits of implementing an EDW at Isle? Can you think of other potential benefits that were not listed in the case?
Why do you think large enterprises like Isle in the gaming industry can succeed without having a capable data warehouse/business intelligence infrastructure?
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Main Data Warehousing Topics
DW definition
Characteristics of DW
Data Marts
ODS, EDW, Metadata
DW Framework
DW Architecture & ETL Process
DW Development
DW Issues
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What is a Data Warehouse?
A physical repository where relational data are specially organized to provide enterprise-wide, cleansed data in a standardized format
“The data warehouse is a collection of integrated, subject-oriented databases designed to support DSS functions, where each unit of data is non-volatile and relevant to some moment in time”
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A Historical Perspective to Data Warehousing
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Characteristics of DWs
Subject oriented
Integrated
Time-variant (time series)
Nonvolatile
Summarized
Not normalized
Metadata
Web based, relational/multi-dimensional
Client/server, real-time/right-time/active...
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Data Mart
A departmental small-scale “DW” that stores only limited/relevant data
Dependent data mart
A subset that is created directly from a data warehouse
Independent data mart
A small data warehouse designed for a strategic business unit or a department
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Other DW Components
Operational data stores (ODS)
A type of database often used as an interim area for a data warehouse
Oper marts - an operational data mart.
Enterprise data warehouse (EDW)
A data warehouse for the enterprise.
Metadata: Data about data.
In a data warehouse, metadata describe the contents of a data warehouse and the manner of its acquisition and use
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Application Case 3.1
A Better Data Plan: Well-Established TELCOs Leverage Data Warehousing and Analytics to Stay on Top in a Competitive Industry
Questions for Discussion
What are the main challenges for TELCOs?
How can data warehousing and data analytics help TELCOs in overcoming their challenges?
Why do you think TELCOs are well suited to take full advantage of data analytics?
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A Generic DW Framework
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Application Case 3.2
Data Warehousing Helps MultiCare Save More Lives
Questions for Discussion
What do you think is the role of data warehousing in healthcare systems?
How did MultiCare use data warehousing to improve health outcomes?
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DW Architecture
Three-tier architecture
Data acquisition software (back-end)
The data warehouse that contains the data & software
Client (front-end) software that allows users to access and analyze data from the warehouse
Two-tier architecture
First two tiers in three-tier architecture is combined into one
… sometimes there is only one tier?
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DW Architectures
3-tier
architecture
2-tier
architecture
1-tier
Architecture
?
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Data Warehousing Architectures
Issues to consider when deciding which architecture to use:
Which database management system (DBMS) should be used?
Will parallel processing and/or partitioning be used?
Will data migration tools be used to load the data warehouse?
What tools will be used to support data retrieval and analysis?
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A Web-Based DW Architecture
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Alternative DW Architectures
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Alternative DW Architectures
Each architecture has advantages and disadvantages!
Which architecture is the best?
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Ten factors that potentially affect the architecture selection decision
Information interdependence between organizational units
Upper management’s information needs
Urgency of need for a data warehouse
Nature of end-user tasks
Constraints on resources
Strategic view of the data warehouse prior to implementation
Compatibility with existing systems
Perceived ability of the in-house IT staff
Technical issues
Social/political factors
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Teradata Corp. DW Architecture
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Data Integration and the Extraction, Transformation, and Load Process
ETL = Extract Transform Load
Data integration
Integration that comprises three major processes: data access, data federation, and change capture.
Enterprise application integration (EAI)
A technology that provides a vehicle for pushing data from source systems into a data warehouse
Enterprise information integration (EII)
An evolving tool space that promises real-time data integration from a variety of sources, such as relational or multidimensional databases, Web services, etc.
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Data Integration and the Extraction, Transformation, and Load Process
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ETL (Extract, Transform, Load)
Issues affecting the purchase of an ETL tool
Data transformation tools are expensive
Data transformation tools may have a long learning curve
Important criteria in selecting an ETL tool
Ability to read from and write to an unlimited number of data sources/architectures
Automatic capturing and delivery of metadata
A history of conforming to open standards
An easy-to-use interface for the developer and the functional user
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Data Warehouse Development
Data warehouse development approaches
Inmon Model: EDW approach (top-down)
Kimball Model: Data mart approach (bottom-up)
Which model is best?
Table 3.3 provides a comparative analysis between EDW and Data Mart approach
One alternative is the hosted warehouse
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Application Case 3.5
Starwood Hotels & Resorts Manages Hotel Profitability with Data Warehousing
Questions for Discussion
How big and complex are the business operations of Starwood Hotels & Resorts?
How did Starwood Hotels & Resorts use data warehousing for better profitability?
What were the challenges, the proposed solution, and the obtained results?
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Additional DW Considerations Hosted Data Warehouses
Benefits:
Requires minimal investment in infrastructure
Frees up capacity on in-house systems
Frees up cash flow
Makes powerful solutions affordable
Enables solutions that provide for growth
Offers better quality equipment and software
Provides faster connections
… more in the book
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Representation of Data in DW
Dimensional Modeling
A retrieval-based system that supports high-volume query access
Star schema
The most commonly used and the simplest style of dimensional modeling
Contain a fact table surrounded by and connected to several dimension tables
Snowflakes schema
An extension of star schema where the diagram resembles a snowflake in shape
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The ability to organize, present, and analyze data by several dimensions, such as sales by region, by product, by salesperson, and by time (four dimensions)
Multidimensional presentation
Dimensions: products, salespeople, market segments, business units, geographical locations, distribution channels, country, or industry
Measures: money, sales volume, head count, inventory profit, actual versus forecast
Time: daily, weekly, monthly, quarterly, or yearly
Multidimensionality
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Star versus Snowflake Schema
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Analysis of Data in DW
OLTP vs. OLAP…
OLTP (online transaction processing)
Capturing and storing data from ERP, CRM, POS, …
The main focus is on efficiency of routine tasks
OLAP (Online analytical processing)
Converting data into information for decision support
Data cubes, drill-down / rollup, slice & dice, …
Requesting ad hoc reports
Conducting statistical and other analyses
Developing multimedia-based applications
…more in the book
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OLAP vs. OLTP
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OLAP Operations
Slice - a subset of a multidimensional array
Dice - a slice on more than two dimensions
Drill Down/Up - navigating among levels of data ranging from the most summarized (up) to the most detailed (down)
Roll Up - computing all of the data relationships for one or more dimensions
Pivot - used to change the dimensional orientation of a report or an ad hoc query-page display
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OLAP
Slicing Operations on a Simple Tree-Dimensional
Data Cube
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Variations of OLAP
Multidimensional OLAP (MOLAP)
OLAP implemented via a specialized multidimensional database (or data store) that summarizes transactions into multidimensional views ahead of time
Relational OLAP (ROLAP)
The implementation of an OLAP database on top of an existing relational database
Database OLAP and Web OLAP (DOLAP and WOLAP); Desktop OLAP,…
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Technology Insights 3.2 Hands-On DW with MicroStrategy
A wealth of teaching and learning resources can be found at TUN portal
www.teradatauniversitynetwork.com
The available resource includes scripted demonstrations, assignments, white papers, etc…
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DW Implementation Issues
Identification of data sources and governance
Data quality planning, data model design
ETL tool selection
Establishment of service-level agreements
Data transport, data conversion
Reconciliation process
End-user support
Political issues
… more in the book
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Successful DW Implementation Things to Avoid
Starting with the wrong sponsorship chain
Setting expectations that you cannot meet
Engaging in politically naive behavior
Loading the data warehouse with information just because it is available
Believing that data warehousing database design is the same as transactional database design
Choosing a data warehouse manager who is technology oriented rather than user oriented
… more in the book
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Failure Factors in DW Projects
Lack of executive sponsorship
Unclear business objectives
Cultural issues being ignored
Change management
Unrealistic expectations
Inappropriate architecture
Low data quality / missing information
Loading data just because it is available
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Massive DW and Scalability
Scalability
The main issues pertaining to scalability:
The amount of data in the warehouse
How quickly the warehouse is expected to grow
The number of concurrent users
The complexity of user queries
Good scalability means that queries and other data-access functions will grow linearly with the size of the warehouse
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Real-Time/Active DW/BI
Enabling real-time data updates for real-time analysis and real-time decision making is growing rapidly
Push vs. Pull (of data)
Concerns about real-time BI
Not all data should be updated continuously
Mismatch of reports generated minutes apart
May be cost prohibitive
May also be infeasible
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Enterprise Decision Evolution and Data Warehousing
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Real-Time/Active DW at Teradata
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Traditional versus Active DW
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DW Administration and Security
Data warehouse administrator (DWA)
DWA should…
have the knowledge of high-performance software, hardware and networking technologies
possess solid business knowledge and insight
be familiar with the decision-making processes so as to suitably design/maintain the data warehouse structure
possess excellent communications skills
Security and privacy is a pressing issue in DW
Safeguarding the most valuable assets
Government regulations (HIPAA, etc.)
Must be explicitly planned and executed
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The Future of DW
Sourcing…
Web, social media, and Big Data
Open source software
SaaS (software as a service)
Cloud computing
Infrastructure…
Columnar
Real-time DW
Data warehouse appliances
Data management practices/technologies
In-database & In-memory processing New DBMS
Advanced analytics
…
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Free of Charge DW Portal for Teaching & Learning
www.TeradataStudentNetwork.com
Password to signup:
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End of the Chapter
Questions, comments
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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1970s1980s1990s2000s2010s
üMainframe computers
üSimple data entry
üRoutine reporting
üPrimitive database structures
üTeradata incorporated
üMini/personal computers (PCs)
üBusiness applications for PCs
üDistributer DBMS
üRelational DBMS
üTeradata ships commercial DBs
üBusiness Data Warehousecoined
üCentralized data storage
üData warehousing was born
üInmon, Building the Data Warehouse
üKimball, The Data Warehouse Toolkit
üEDW architecture design
üExponentially growing data Web data
üConsolidation of DW/BI industry
üData warehouse appliances emerged
üBusiness intelligence popularized
üData mining and predictive modeling
üOpen source software
üSaaS, PaaS, Cloud Computing
üBig Data analytics
üSocial media analytics
üText and Web Analytics
üHadoop, MapReduce, NoSQL
üIn-memory, in-database
Data
Sources
ERP
Legacy
POS
Other
OLTP/wEB
External
data
Select
Transform
Extract
Integrate
Load
ETL
Process
Enterprise
Data warehouse
Metadata
Replication
A
P
I
/
M
i
d
d
l
e
w
a
r
e
Data/text
mining
Custom built
applications
OLAP,
Dashboard,
Web
Routine
Business
Reporting
Applications
(Visualization)
Data mart
(Engineering)
Data mart
(Marketing)
Data mart
(Finance)
Data mart
(...)
Access
No data marts option
Tier 2:
Application server
Tier 1:
Client workstation
Tier 3:
Database server
Tier 1:
Client workstation
Tier 2:
Application & database server
Web
Server
Client
(Web browser)
Application
Server
Data
warehouse
Web pages
Internet/
Intranet/
Extranet
Source
Systems
Staging
Area
Independent data marts
(atomic/summarized data)
End user
access and
applications
ETL
Source
Systems
Staging
Area
End user
access and
applications
ETL
Dimensionalized data marts
linked by conformed dimensions
(atomic/summarized data)
Source
Systems
Staging
Area
End user
access and
applications
ETL
Normalized relational
warehouse (atomic data)
Dependent data marts
(summarized/some atomic data)
(a) Independent Data Marts Architecture
(b) Data Mart Bus Architecture with Linked Dimensional Datamarts
(c) Hub and Spoke Architecture (Corporate Information Factory)
Source
Systems
Staging
Area
Normalized relational
warehouse (atomic/some
summarized data)
End user
access and
applications
End user
access and
applications
Logical/physical integration of
common data elements
Existing data warehouses
Data marts and legacy systems
ETL
Data mapping / metadata
(d) Centralized Data Warehouse Architecture
(e) Federated Architecture
Packaged
application
Legacy
system
Other internal
applications
Transient
data source
ExtractTransformCleanseLoad
Data
warehouse
Data mart
Fact Table
SALES
UnitsSold
...
Dimension
TIME
Quarter
...
Dimension
PEOPLE
Division
...
Dimension
PRODUCT
Brand
...
Dimension
GEOGRAPHY
Country
...
Fact Table
SALES
UnitsSold
...
Dimension
DATE
Date
...
Dimension
PEOPLE
Division
...
Dimension
PRODUCT
LineItem
...
Dimension
STORE
LocID
...
Dimension
BRAND
Brand
...
Dimension
CATEGORY
Category
...
Dimension
LOCATION
State
...
Dimension
MONTH
M_Name
...
Dimension
QUARTER
Q_Name
...
Star SchemaSnowflake Schema
Product
T
i
m
e
G
e
o
g
r
a
p
h
y
Sales volumes of
a specific Product
on variable Time
and Region
Sales volumes of
a specific Region
on variable Time
and Products
Sales volumes of
a specific Time on
variable Region
and Products
Cells are filled
with numbers
representing
sales volumes
A 3-dimensional
OLAP cube with
slicing
operations