Professional Documents
Culture Documents
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Types & Typical Applications of DWH
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Types of data warehouse
• Financial
• Telecommunication
• Insurance
• Human Resource
• Global
• Exploratory
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Types of data warehouse
Financial
First data warehouse that an organization
builds. This is appealing because:
• Fraud detection.
• Profitability analysis.
• Direct mail/database marketing.
• Credit risk prediction.
• Customer retention modeling.
• Yield management.
• Inventory management.
ROI on any one of these applications can justify HW/SW
& consultancy costs in most organizations. 8
Typical Applications
Fraud detection
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Typical Applications
Profitability Analysis
• Banks know if they are profitable or not.
• Don’t know which customers are profitable.
• Typically more than 50% are NOT profitable.
• Don’t know which one?
• Balance is not enough, transactional behavior is the key.
• Restructure products and pricing strategies.
• Life-time profitability models (next 3-5 years).
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Typical Applications
• Targeted marketing.
• Offering high bandwidth package NOT to all users.
• Know from call detail records of web surfing.
• Saves marketing expense, saving pennies.
• Knowing your customers better.
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Typical Applications
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Typical Applications
Yield Management
• Works for fixed inventory businesses.
• The price of item suddenly goes to zero.
• Item prices vary for varying customers.
• Example: Air Lines, Hotels etc.
• Price of (say) Air Ticket depends on:
• How much in advance ticket was bought?
• How many vacant seats were present?
• How profitable is the customer?
• Ticket is one-way or return?
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Recent Application
Agriculture Systems
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