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‫‪Data Warehousing & Mining‬‬ ‫‪1‬‬
‫کرے واال ے‬
 Data Warehousing & Mining
(CS-411)
Credit Hours: 3 + 1

By

Engr.Shakeel Ahmed Shaikh

Lecturer
Email: shakeel.sheikh@buetk.edu.pk

Department of CSE&S
Balochistan University of Engineering and Technology
Khuzdar
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Data Warehousing & Mining 3
 Lecture-5-6
Types & Typical Applications of DWH

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Data Warehousing & Mining
 Previous Lecture Review

 What is Data
Warehousing?
 How is different?
 Comparison of SDLC &
CLDS
 Data Warehouse Vs.
OLTP
 Architectural view

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 Today’s Lecture Outlines

 Types of Data
Warehousing
 Applications of Data
warehousing
 Reading Materials

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Data Warehousing & Mining
 Types of data warehouse

• Financial
• Telecommunication
• Insurance
• Human Resource

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 Types of data warehouse
Financial
 First data warehouse that an organization builds. This
is appealing because:

 Nerve center, easy to get attention.

 In most organizations, smallest data set.

 Touches all aspects of an organization, with a common

denomination i.e. money.

 Inherent structure of data directly influenced by the day-to-

day activities of financial processing.

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Data Warehousing & Mining
 Types of data warehouse
Telecommunication
Dominated by sheer volume of data.

Many ways to accommodate call level detail:

 Only a few months of call level detail,
 Storing lots of call level detail scattered over different storage
media,

 Storing only selective call level detail, etc.

 Unfortunately, for many kinds of processing, working at an

aggregate level is simply not possible.

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 Types of data warehouse
Insurance
Insurance data warehouses are similar to other data
warehouses BUT with a few exceptions.
Stored data that is very, very old, used for actuarial
processing.
Typical business may change dramatically over last 40-
50 years, but not insurance.
In retailing or telecomm there are a few important
dates, but in the insurance environment there are many
dates of many kinds.

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 Types of data warehouse
Insurance
Insurance data warehouses are similar to other data
warehouses BUT with a few exceptions.
Long operational business cycles, in years. Processing
time in months. Thus the operating speed is different.
Transactions are not gathered and processed, but are in
kind of “frozen”.
Thus a very unique approach of design &
implementation.

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 Types of data warehouse
Human Resource
Data warehousing actually makes perfect sense for Human
Resource department.
 It stores information pertaining to its employees, their
salaries, developed products, customer information, sales and
invoices
 The massive database, typically housed on a cluster of
servers, or a mini or mainframe computer, serves as a
centralized repository of all data that is generated by all
departments and units of a large organization
 Advanced data mining software is required to extract
meaningful information from a data warehouse to a form
suitable for enterprise-wide data analysis and reporting for
predefined business needs
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Data Warehousing & Mining
 Typical Applications

• Fraud detection.
• Profitability analysis.
• Direct mail/database marketing.
• Credit risk prediction.
• Agriculture system.

Data Warehousing & Mining 13

 Typical Applications
Fraud detection

• By observing data usage patterns.

• People have typical purchase patterns.
• Deviation from patterns.
• Certain cities notorious for fraud.
• Certain items bought by stolen cards.
• Similar behavior for stolen phone cards.

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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
Direct mail marketing

• 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.

Data Warehousing & Mining 16

 Typical Applications
Credit risk prediction

• Who should get a loan?

• Customer segregation i.e. stable vs. rolling.
• Qualitative decision making NOT subjective.
• Different interest rates for different customers.
• Do not subsidize bad customer on the basis of
good.

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 Recent Application
Agriculture Systems
• Agri and related data collected for decades.
• Metrological data consists of 50+ attributes.
• Decision making based on expert judgment.
• Lack of integration results in underutilization.
• What is required, in which amount and when?

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 Reading Materials

• Data Ware Housing Fundamentals: A

Comprehensive Guide for I.T Professionals by
Paulraj Ponnjah
• W. H. Inmon, Building the Data Warehouse
(Second Edition), John Wiley & Sons Inc., NY.

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