Data Warehousing and Mining

Data Warehousing and Mining

1. Data Warehousing

   • Increased corporate productivity.
   • Competitive advantage.
   • Potential for high ROI.
   • Extremely high initial costs (£50k+)
   • Long development time (3 years +/-)
   • High demand for memory.
   • High maintenance costs.
   • Problems with source data (extraction, cleaning, loading).

2. Building a Data Warehouse Database (Dimensionality Modelling)

   • Fact Tables
     • Contains facts generated by events in the past.
     • Data in tables should be regarded as read only.
     • Tables are often very large.
   • Dimension Tables
     • Contains descriptive textual data.
     • Simple primary keys.
     • Gives a characteristic star scheme or star join.

3. Star Schema

   • De-normalising reference data can speed up query performance.
   • Main aim is to avoid data redundancy.
   • This achieved in part via the process of normalisation.

4. OTLP System

   • Automating business saves money.
   • Data could be useful in organisations future operations.
   • Information too detailed.
   • May require information from more than one OTLP system.
   • Difficult to extract information.

5. Snowflake Schema

   • Variant of Star Schema where dimension tables do not contain de-normalised data.
   • Dimension tables have other dimension tables linked to them via foreign keys.
   • More than one dimension table can share these "dimension of a dimension" tables.

6. Starflake Schema

   • Hybrid structure that contains a mixture of star and snowflake schema's.
   • Contains both normalised and de-normalised data.
   • Some dimension tables may be present in both normalised and de-normalised forms.

7. OLAP Analytical Operations

   • Consolitation
     • Involves the aggregation of data, such as "roll ups" e.g. branches can be rolled up to cities, cities to countries etc.
   • Drill-down
     • Reverse of consolidation.
     • Involves displaying the detailed data that compromises the consolidated data.
   • Slicing and Dicing (aka pivoting)
     • Ability to view data from different viewpoints.
     • One slice may display revenue by type of property within cities.
     • Another slice may display revenue by branch office within city.
     • Often performed along a time axis to find patterns and trends.

8. Data Mining Operations and Techniques

   • Predictive Modelling
     • Reflect human experience using observations to form a model of the important characteristics of some phenomenon.
     • Model developed using a two-phase supervised learning approach.
       • The training phase uses a large sample of historical data called a training set to build a model of the important characteristics.
       • The testing phase tests the accuracy and performance of the model on new data.
     • Used in credit approval, customer retention management, direct marketing.
   • Database Segmentation
     • Partition database into an unknown number of segments or clusters of similar records.
     • Results can be displayed on scatterplot.
     • Used in customer profiling and direct marketing.
   • Link Analysis
     • Aims to discover links (called associations) between individual records or groups of records in a database.
   • Anomaly Detection
     • Identifies outliers (expressions of deviation from previously known expectations and norms).
     • Used in detection of credit card and insurance fraud, quality control and defects tracing.

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