Data mining & data warehousing (ppt)

Presented by:
Harish Chand
Data Mining and Data
Warehousing

Data Mining
• Data mining, the extraction of hidden predictive information from large databases,
• The overall goal of the data mining process is to extract information from a data
set and transform it into an understandable structure for further use
• Often Not to be confused with analytics, information extraction, or data analysis
• But its goal is the extraction of patterns and knowledge from large amount of
data, not the extraction of data itself

DATA MINIING TECHIQUES
• It extract interesting patterns such as groups of data records(cluster analysis ),
unusual records(anamoly detection)
• These patterns can then be seen as a kind of summary of the input data, and may
be used in further analysis or, for example, in machine learning and predictive
analytics
• For example, the data mining step might identify multiple groups in the data,
which can then be used to obtain more accurate prediction results by a decision
support system

Data Warehousing
• also known as an enterprise data warehouse (EDW), is a system used
for reporting and data analysis. DWs are central repositories of integrated data
from one or more disparate sources
• Storing company data in a secondary location which is typically away from
production systems.
• Location= where information can be proactively reported and queried against
• Goal =creation of single logical view of data that may reside in many different
physical database

• it exists to help users understand and enhance their organization's performance
• It is designed for query and analysis rather than for transaction processing,
• and usually contains historical data derived from transaction data, but can include
data from other sources

TYPES OF DATA WAREHOUSING
• Data Mart
• Online Transaction Processing
• Online Analytical Processing.

Data Mart
• A data mart is a simple form of a data warehouse that is focused on functional
area such as sales, finance or marketing
.
• Data marts are often built and controlled by a single department within an
organization.
• Given their single-subject focus, data marts usually draw data from only a few
sources.
• The sources could be internal operational systems, a central data warehouse, or
external data.

Online Analytical
Processing(OLAP)
• Is characterized by a relatively low volume of transactions. Queries are often very
complex and involve aggregations.
• For OLAP systems, response time is an effectiveness measure.
• OLAP databases store aggregated, historical data in multi-dimensional schemas
(usually star schemas).
• OLAP systems typically have data latency of a few hours, as opposed to data
marts, where latency is expected to be closer to one day.

Online Transaction
Processing(OTLP)
• Is characterized by a large number of short on-line transactions (INSERT,
UPDATE, DELETE).
• OLTP systems emphasize very fast query processing and maintaining data
integrity in multi-access environments.
• For OLTP systems, effectiveness is measured by the number of transactions per
second.

• OLTP databases contain detailed and current data.
• The schema used to store transactional databases is the entity model
(usually 3NF).

Data mining VS Data
warehousing
Data warehouse Data mining
Process of storing data in order in given
dataset
Process of finding pattern in given
dataset.
Data warehousing is the process of
extracting and storing data to allow easier
reporting.
Data mining is the use of pattern
recognition logic to identity trends within
a sample data set and extrapolate this
information against the larger data pool
The tools in data warehousing are
designed to extract data and store it in a
method designed to provide enhanced
system performance
A typical use of data mining is to create
targeted marketing programs, identify
financial fraud,
Helps in identifing the certain data in a
collection of data
Helps in figuring out a certain pattern of a
data or a cluster of data

Benefits of Data Warehouse
• A Data Warehouse Delivers Enhanced Business Intelligence
By providing data from various sources, managers and executives will
no longer need to make business decisions based on limited data
• A Data Warehouse Saves Time
Since business users can quickly access critical data from a number of
sources—all in one place—they can rapidly make informed decisions
on key initiatives

Benefits of Data Warehouse
• A Data Warehouse Enhances Data Quality and Consistency
Individual business units and departments including sales,
marketing, finance, and operations, will start to utilize the same data
repository as the source system for their individual queries and
reports.
Thus each of these individual business units and departments will
produce results that are consistent with the other business units
within the organization.

Benefits of Data Warehousing
• A Data Warehouse Provides Historical Intelligence
 A data warehouse stores large amounts of historical data so we can
analyze different time periods and trends in order to make future
predictions
 can enable advanced business intelligence including time-period
analysis, trend analysis, and trend prediction.

Benefits of Data Warehousing
• A Data Warehouse Generates a High ROI
 Return on Investment(ROI)
 Past references shows that companies that have implemented data
warehouses have generated more revenue and saved more money
than companies that haven’t invested on data warehouses.

Challenges faced on Data Warehousing
• User expectation
 end-user demands and expects more accurate and refined results in
return of processing,
 however the performance decreases with exploding data and so the
efficiency of the system reduces.
• Systems optimization
 business intelligence tools require frequent maintenance and fine
tuning of whole system in order to meet users' expectations.

• Data structuring
Proper processing of data requires structuring it in a desired format
so that further operations can be executed
As the volume of data increases the task of structuring the
unstructured data add-on, slowing down the processing capabilities of
system and eventually becomes hectic for the system manager to
qualify the data for analytic purpose.

• Prefabricated vs. Custom warehouse
The varieties of warehouses available in market create ambiguity
about which type to choose or go for.
Custom warehouse saves the time of building the warehouses from
various operational
Prefabricated warehouses saves the time of initial configuration and
installation.

• Resource Balancing
Many departments inside an organization tend to access the
processing capabilities of the warehouse which eventually reduces the
performance of the system and decreases the efficiency as the stress
on the system increases.
 Access control and security are some techniques which can be used
to maintain a balance between the utilization and performance of
warehouse systems.

Decision support systems (DSS)
Decision support systems (DSS) are a specific class of computerized
information system that supports business and organizational
decision-making activities.
DSS is a well integrated ,user friendly, computer based tools that
combine data with various decision making models to solve semi
structure and unstructured problems.

Characteristics
Provide decision support for several interdependent decision.
Assist the decision maker to make decision under dynamic business
conditions.
Supports a wide variety of decision making processes and style.

Database management system
Model management system
Support tools
Components of DSS
23

In database management ,the problem necessary to solve may come
from internal and external database.
Within the organization, internal data are generated by systems such
as TPS and MIS; external data come from variety of sources such as
periodicals, databases, newspapers and online data services.
Database Management
24

It stores and access models that managers use to make decisions.
Models are integral part of most decision making and are used for
many tasks, such as designing a manufacturing facility, analysing the
financial health of an organization, forecasting demand for a product
or service, and determining the quality of a particular batch of
products.
Model Management Component
25

It consist of tools such as pull down menus, on-line help, users
interface, graphical analysis and error-correction mechanisms all of
which facilitate users interactions with the system.
Interfaces are an important support tools. This is because middle and
top managers have neither the time nor the inclination to learn
difficult and complicated procedures in order to run a system. For
better the interface, the greater the chances that users will accept the
system.
Support Tools
26

Cost saving
Improve managerial effectiveness
Flexible and adaptive
Improve the effectiveness of the decision
Reduces the time and efforts in collecting and analysis of data for different
sources, a large no of alternatives can be evaluated.
Advantages of DSS
27

It is also termed as Executive Support System[ESS].
It is a specialized decision support system used to assist senior
executives in the decision-making process.
It includes various hardware, software, data, procedures and the
people.
It is very user friendly in the nature.
Executive Information
System[EIS]
28

1. Informational characteristics
2. User interface/orientation characteristics
3. Managerial / executive characteristics
Characteristics of Executive
Information System
30

i. Flexibility and ease of use.
i. Provides the timely information with the short response time and also
with the quick retrieval.
i. Produces the correct information.
i. Produces the relevant information.
ii. Produces the validated information.
1. Informational characteristics
31

• Consists of the sophisticated self help.
• Contains the user friendly interfaces consisting of the graphic user.
• Can be used from many places.
2. User interface/orientation
characteristics
32

• Offers secure reliable, confidential access along with the access
procedure.
• Is very much customized. Suites the management style of the
individual executives.

i. Supports the over all vision, mission and the strategy.
ii. Provides the support for the strategic management.
iii. Sometimes helps to deal with the situations that have a high degree of risk.
iv. Is linked to the value added business processes.
v. Supports the access to database.
vi. Is very much result oriented in the nature.
3. Managerial / executive
characteristics
34

• Achievement of the various organizational objectives.
Facilitates access to the information by integrating many sources of the
data.
• Facilitates broad, aggregated perspective and the context.
• Offers broad highly aggregated information.
• User’s productivity is also improved to a large extent.
• Communication capability and the quality are increased.
Advantages of EIS
35

• Internal factors- accurate & reliable information, improve
communications, use of historical data
• External factors- increasing global competition, changing the
business environment, government regulations.
Factors affecting EIS

DSS EIS
• Used by professionals
• Required for day to day operations
• Deals both with semi & unstructured
data
• Consists only of internal information
• Used by executives
• Required for strategic plans and procedures
• Deals only with unstructured data (which
cannot be described in detail)
• Consists of both internal & external
information
37
Differences between DSS and
EIS

Data mining & data warehousing (ppt)

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