DATA WAREHOUSING AND DATA MINING

Dr.Sachin chaudhary B.Tech.(CSE), MS(S.E.), Phd(I.P.), Pdf(CBIR). Director Murala college of engg.& Tech.,Machilipatnam,AP

Course Overview
• The course: what and how • 0. Introduction • I. Data Warehousing • II. Decision Support and OLAP • III. Data Mining • IV. Looking Ahead • Demos and Labs
2

A producer wants to know….
Which are our Which are our lowest/highest margin lowest/highest margin customers ?? customers What is the most What is the most effective distribution effective distribution channel? channel? Who are my customers Who are my customers and what products and what products are they buying? are they buying?

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

Which customers Which customers are most likely to go are most likely to go to the competition ?? to the competition

3

Data, Data everywhere yet ... • I can’t find the data I need
• data is scattered over the network • many versions, subtle differences

„ I can’t get the data I need
ƒ need an expert to get the data

„ I can’t understand the data I found
ƒ available data poorly documented

„ I can’t use the data I found
ƒ results are unexpected ƒ 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.

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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

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

• 70’s: Terminal-based DSS(Decision Support System and EIS (executive information systems)
• still inflexible, not integrated with desktop tools

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Data Warehouse Structure
• base customer (1985-87)
• custid, from date, to date, name, phone, dob

• base customer (1988-90)
• custid, from date, to date, name, credit rating, employer

• customer activity (1986-89) -- monthly summary • customer activity detail (1987-89)
• custid, activity date, amount, clerk id, order no

• customer activity detail (1990-91)
• custid, activity date, amount, line item no, order no
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Definition of DSS • Decision support system is defined as a system that helps the decision makers in various levels to take decisions • This system uses data, analytical models and user friendly software for taking decision

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Definition of EIS
• Executive information system(EIS) is defined as a system that helps the high level executives to take policy decisions. • This system user higher level data, analytical models and user friendly software for taking decisions.

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Evolution
• 80’s: Desktop data access and analysis tools
• query tools, spreadsheets, GUIs • easier to use, but only access operational databases

• 90’s: Data warehousing with integrated OLAP(online analytical processing)engines and tools

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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 organization’s operational database
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Characteristics of 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.
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Subject-Oriented
• A data warehouse is organized around the major subjects of the organization such as customer, supplier, product, sales, etc..,

• Data warehouse provides a simple and concise view around a particular subject by excluding data that are not useful to the decision support process.

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Integrated
• A data warehouse is constructed by integrating multiple sources of data such as relational database, flat files and on-line transaction records. • Data cleaning and data integration techniques are applied to ensure consistency in naming conventions, encoding structures, attributes etc..,

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Time Variant
• Data warehouse maintains records of both historical and current data. • So it can provide information in a historical perspective

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Non Volatile

• Once data warehouse is loaded with data, it is not possible to perform any modifications in the stored data.
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Explorers, Farmers and Tourists
Tourists: Browse information about Tourists

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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Application-Orientation vs. Subject-Orientation
Application-Orientation Subject-Orientation

Operation al Database
Loans Credit Card Trust Savings Customer

Data Warehouse

Vendor Product Activity 20

Functioning of Data warehousing

Data Source

Cleaning

Transformatio n Data Warehouse

New Update

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Collection Data
• Data warehousing collect data from various data sources such as relational data base, flat files and on-line records • The collection of data are stored in database inside the warehouse. • The type of data collection used depends on the architecture of the ware house.

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Integration
• Each and every data source uses from different schema. • Data warehouse get data from different source with different schema and convert the data from various sources into a common integrated schema.

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

e 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
m
date, custno, prodno, cityname, ...

e c u s t

f a c t

p r o d c i t y
r e g i 25o n

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 adhoc • Used by managers and end-users to understand the business and make judgments
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OLAP(Online analytical processing)
• A data warehouse stores data , but OLAP transform the data warehouse data into specific meaningful information. • Therefore OLAP provides a user friendly environment for interactive data analysis.
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OLAP
DATA WAREHOUSE SQL OLAP SERVER Request Result FRONT END set TOOL User
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Result

OLAP OPERATION on the Multidimensional data
• Roll-up(GROUP) • Drill down(Less) • Slice and Dice(Pice) • Pivot(rotate)
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TYPES OF OLAP

• MOLAP(MULTIDIMENSIONAL OLAP) • ROLAP(RELATIONAL ROLAP)

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Multi-dimensional Data
• “Hey…I sold $100M worth of goods”
R eg io n
Dimensions: Product, Region, Time Hierarchical summarization paths
Product Industry Region Country Time Year

W S N Juice Cola Milk Cream Toothpaste Soap 1 2 34 5 6 7

Product

Category

Region

Quarter

Product

City Office

Month Day

Week
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Month

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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Architecture of data warehousing
External data Data Acquisition Data Manager
Warehous e data

External data Data Dictionary Data Access

Information Directiory Design
Warehous e data

Middleware

Management

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Architecture of

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Design Component • The data warehouse designer design the database of the data warehouse and the warehouse administrator manages the data warehouse. • The designer and administrator use the design component to design and store data

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Types of design
• Bottom-up design Business value can be returned as quickly as the first data marts can be created • Top-down design Atomic data, that is, data at the lowest level of detail, are stored in the data warehouse. • Hybrid design
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Data Manager Component • The database in the data warehouse uses the data manager component for managing and accessing the data stored in the data warehouse.

• Rdbms • Mdbms
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Management Component
• • • • Administering data acquisition operation Managing backup copies of the data Recovering the lost data Providing security to the data stored in the data warehouse. • Authorizing access to the data stored in the data warehouse.
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Data Acquisition Component

• This component acquires data from various sources by using the data acquisition applications • The data acquisition applications are based on rules that are defined by the data warehouse developers.

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The operation performed during data clean up

• Restructuring the records and fields of the database tables. • Removing the irrelevant and redundant data • obtaining and adding missing data. • Verifying integrity and consistency of the data
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The operation performed on the data for enhancement are • Decoding and translating the values in fields. • Summarizing data • Calculating the derived values.

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Information directory Component
• This component helps the end users to know the details of the data stored in the data warehouse. • This is done with the help of the data about the data named meta data. • Technical data • Business data
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Middleware Component
• This components connect to the local databases. • Analytical server used to analyze multidimensional data. • Intelligent data warehousing middleware to control the access to the warehouse database.
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Data Mart
• Data mart is a database that contains data needed for a small group of users for their own department needs. •Dependent data mart •Independent data mart

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Different between data warehouse and data mart
Data warehouse Data Mart Data mart is therefore useful for small data warehousing is suitable to support organizations with very few departments an entire corporate environment. If you listen to some vendors, you may be left thinking that building data warehouses is a waste of time. data mart vendor that tells you this are looking out for their own best interests.

This supports the entire information requirement of an organization. This has large model, wider implementation, large data and more number of users.

This support the information requirement of a department in an organization This has small data model, shorter implementation, less data and some users.

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Advantages of data mart
• Since each department has its own data mart, the departments can summarize, sort , select structure etc their own department’s data. This will not confused with any other department. • The department can do whatever DSS processing they want. • The processing cost and storage are less that the data warehouse. • The department can select a software for their data mart. it is powerful to fit their needs.
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Data warehousing life cycle
Design

Enhance Operate deploy

prototype

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Data Modeling(Multi-dimensional Database)
• “Hey…I sold $100M worth of goods”
Dimensions: Product, Region,

R eg io n

periods

W S N Juice Cola Milk Cream Toothpaste Soap 1 2 34 5 6 7

Hierarchical summarization paths
Product Industry Region Country Period Year

Product

Category

Region

Quarter

Month

Product

City

Month

Week
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Building of data warehouse
 The builder must forecast the usage of the warehouse by the users.  The design should support accessing data with any meaningful values of the attributes.  To build a good data warehouse data acquisition process must follow the steps given flow extract the data from multiple heterogeneous sources Format the data for consistency within the warehouse. The data must be cleaned to ensure validity The data must be converted from relational ,object oriented ,hierarchy model to a multidimensional model. The data are loaded into the warehouse. Good monitoring tools are necessary to recover from incorrect load.

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Data warehouse and views
• Data warehouse is a permanent storage of data in multidimensional tables. • View are temporarily created when needed using data warehouse. • This is used for decision support system.
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Different between Data warehouse and views
Data warehouse Views

Data warehouse is a permanent storage Views are created from warehouse data data. when needed and it is not permanent Data warehouse are multidimensional Data warehouse can be indexed to maximize performance. Data warehouse provides specific support to a functionality Views are relational Views cannot be indexed. Views cannot give specific support to a functionality.

Data warehouse provide large amount of Views are created by extracting data. minimum data from data warehouse.
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Data warehouse Future
• New techniques must be introduced in data cleaning ,indexing and partitioning. • The manual operation involved in data acquisition ,management data quality and performance maximization must be automated. • Proper business rules must be developed and incorporated in warehouse creation and maintenance process.
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Data Mining
• Data mining is sorting through data to identify patterns and establish relationships.

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Data Mining (cont.)

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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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Data Mining Motivation
“The key in business is to know something that nobody else knows.” — Aristotle Onassis

PHOTO: LUCINDA DOUGLAS-MENZIES

PHOTO: HULTON-DEUTSCH COLL

“To understand is to perceive patterns.” — Sir Isaiah Berlin

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Application Areas
Industry Application Finance Credit Card Analysis Insurance Claims, Fraud Analysis Telecommunication Call record analysis Consumer goods promotion analysis Data Service providers Value added data Utilities 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 is data mining technology
The process of extracting or finding hidden knowledge from large database is called data mining. Ex: Age 21------ we can understand he is major

data

information
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Data Mining Technology Pattern s
Data Mining Knowledge

Selection and transformation

Data Warehouse

Cleaning and Integration

Database s

Flat Files

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Data Mining Technology various step
• Data cleaning To remove noise and inconsistent data • Data integration Data from multiple sources are combined • Data selection relevant data are retrieved from the database for analysis • Data transformation The selected data are made for mining by performing aggregation operations • Data mining Intelligent methods are applied to extract data patterns • Pattern evaluation Identify the needed patterns • Knowledge presentation present the mined knowledge to the user
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Loading the Warehouse
Cleaning the data before it is loaded

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
encoding
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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field

unit

Structuring/Modeling Issues

Data Warehouse vs. Data Marts

From the Data Warehouse to Data Marts
Information
Individually Structured Departmentally Structured

Less History Normalized Detailed More
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Organizationally Data Warehouse Structured

Data

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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True Warehouse
Data Sources

Data Warehouse

Data Marts
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II. On-Line Analytical Processing (OLAP)

Making Decision Support Possible

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)
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• • •

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

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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 J un J ul Aug Sep Oct Nov Dec J an Feb Mar 2 3 4 5 6 7 8
Month Apr Apr Apr Apr Apr Apr Apr Apr May May May May May May May May J un J un Store 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 Sales

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A Visual Operation: Pivot (Rotate)
NY NY LA LA
h nt Mo

Juice Cola Milk

30

Cream 12

Region Product

SF SF

10 47

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

Date

81

“Slicing and Dicing”
Product The Telecomm Slice

Household Telecomm Video Audio

ns io eg Europe R
Far East India Retail Direct Special

Sales Channel
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Roll-up and Drill Down
Higher Level of Aggregation

• • • • • •

Sales Channel Region Country State Location Address Sales Representative

Drill-Down

Roll Up

Low-level Details

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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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OLAP Operations

Roll Up

Drill Down

Single Cell

Multiple Cells

Slice

Dice

© Prentice Hall

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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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MSPVL Polytechnic College Pavoorchatram

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