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Questions and Answers
What is the primary purpose of strategic information in an enterprise?
Define Data Warehouse.
A physical repository where relational data (current and historical) are organized to provide enterprise-wide, cleansed data in a standardized format.
Data warehouses contain historical data only.
False
Operational data stores (ODS) are often used as an interim area for a data warehouse, especially for _______ information files.
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Match the following data warehousing terms with their definitions:
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What question does CMI want to answer?
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Why does CMI need a data warehouse?
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Transaction models are ideal for analytics purposes.
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Decision support requires consolidation and summarization of data from many __________ sources.
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Match the following components in a data warehouse to their descriptions:
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Study Notes
Data Warehousing and Data Mining
Need for Strategic Information
- Companies need strategic information to stay competitive and improve bottom line
- Executives and managers need information to make proper decisions
- Strategic information is combined essential information needed to make decisions in formulation and execution of business strategies and objectives
Characteristics of Strategic Information
- Not intended for running day-to-day operations of the business
- Far more important for continued health and survival of the corporation
- Critical business decisions depend on availability of proper strategic information
The Information Crisis
- Organizations have lots of data, but unable to turn it into useful strategic information
- Information technology resources and systems are not effective at turning data into useful strategic information
Technology Trends and Opportunities
- Explosive growth of information technology
- Opportunities for data warehousing and mining in various industries, such as healthcare and retail
Risks of Not Having Strategic Information
- Inability to make informed decisions, leading to potential failure
- Examples of companies that faced risks without strategic information, such as car rental company and utility company
Failures of Past Decision-Support Systems
- Unable to provide strategic information in a timely and effective manner
- Inability to analyze data from multiple sources
Operational vs. Decision-Support Systems
- Operational systems designed for transaction processing, not for decision-making
- Decision-support systems designed for analysis and decision-making
Data Warehousing - The Only Viable Solution
- A physical repository that provides enterprise-wide, cleansed data in a standardized format
- Characteristics of data warehousing: subject-oriented, integrated, time-variant, non-volatile, web-based, relational/multidimensional, uses client-server technology, real-time, includes metadata
Data Warehouse Defined
- A physical repository that provides enterprise-wide, cleansed data in a standardized format
- Provides an integrated and total view of the enterprise, makes information easily available for strategic decision making, and makes decision-support transactions possible without hindering operational systems
Data Mart and Operational Data Store (ODS)
- Data mart: a logical and physical subset of a data warehouse, represents data from a single business process
- Operational data store (ODS): a type of database often used as an interim area for a data warehouse, especially for customer information files
Enterprise Data Warehouse (EDW) and Metadata
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Enterprise data warehouse (EDW): a technology that provides a vehicle for pushing data from source systems into a data warehouse that is used across the enterprise for decision support
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Metadata: data about data, describes the contents of a data warehouse and the manner of its use### Decision Support Systems
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Decision support requires historical data, which operational databases do not typically maintain.
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Decision support requires consolidation (aggregation, summarization) of data from many heterogeneous sources, including operational databases and external sources.
Data Quality Issues
- Different sources typically use inconsistent data representations, codes, and formats, which must be reconciled.
Why Use a Separate System?
- Security: Need to limit visibility to sensitive data.
- Privacy: Need to de-identify personal data.
Data Warehouse Data Model
- A simple warehouse data model consists of:
- DateDim: Date, CharDate, and other date-related information.
- ProductDim: ProductNumber, SKU, BrandID, BrandName, and other product-related information.
- StoreDim: StoreNumber, StoreName, RegionNumber, and other store-related information.
- SalesFact: QuantitySold, NetPrice, and other sales-related information.
Query Example
- The query retrieves the total items sold and total sales for:
- Men Statement Shirts in the Philippines.
- Sales made on or after March 9, 2016.
- The query joins the SalesFact table with the StoreDim, ProductDim, and DateDim tables.
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Description
This quiz covers the importance of strategic information in businesses, including its characteristics and role in decision-making. Learn how data warehousing and data mining support strategic information needs.
