Difference between Data Warehouse and Data Mining?

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• Data Warehousing
• OLAP
• Data Mining
• Further Reading

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Data Warehousing

• OLTP (online transaction processing) systems
• range in size from megabytes to terabytes
• high transaction throughput
• Decision makers require access to all data
• Historical and current
• 'A data warehouse is a subject-oriented,
  integrated, time-variant and non-volatile
  collection of data in support of managements
  decision-making process' (Inmon 1993)

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Benefits

• Potential high returns on investment
• 90 of companies in 1996 reported return of
  investment (over 3 years) of gt 40
• Competitive advantage
• Data can reveal previously unknown, unavailable
  and untapped information
• Increased productivity of corporate
  decision-makers
• Integration allows more substantive, accurate and
  consistent analysis

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Typical Architecture
Mainframe operational n/w,h/w data
Warehouse mgr
Reporting query, app development,EIS tools
Meta-data
Highly summarized data
Departmental RDBMS data
Load mgr
Query manager
OLAP tools
Lightly summarized data
Private data
DBMS
Detailed data
Warehouse mgr
Data-mining tools
External data
Archive/backup
Source Connolly and Begg p1157
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Data Warehouses

• Types of Data
• Detailed
• Summarised
• Meta-data
• Archive/Back-up

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Information Flows
Operational data source 1
Warehouse Mgr
Meta-flow
Reporting query, app development,EIS tools
Meta- data
Highly summ. data
Inflow
Outflow
Load mgr
Query manager
OLAP tools
Lightly summ.
Upflow
DBMS
Detailed data
Warehouse mgr
Data-mining tools
Downflow
Archive/backup
Operational data source n
Source Connolly and Begg p1162
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Information Flow Processes

• Five primary information flows
• Inflow - extraction, cleansing and loading of
  data from source systems into warehouse
• Upflow - adding value to data in warehouse
  through summarizing, packaging and distributing
  data
• Downflow - archiving and backing up data in
  warehouse
• Outflow - making data available to end users
• Metaflow - managing the metadata

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Problems of Data Warehousing

1. Underestimation of resources for data loading
2. Hidden problems with source systems
3. Required data not captured
4. Increased end-user demands
5. Data homogenization
6. High demand for resources
7. Data ownership
8. High maintenance
9. Long duration projects
10. Complexity of integration

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Data Warehouse Design

• Data must be designed to allow ad-hoc queries to
  be answered with acceptable performance
  constraints
• Queries usually require access to factual data
  generated by business transactions
• e.g. find the average number of properties rented
  out with a monthly rent greater than 700 at each
  branch office over the last six months
• Uses Dimensionality Modelling

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Dimensionality Modelling

• Similar to E-R modelling but with constraints
• composed of one fact table with a composite
  primary key
• dimension tables have a simple primary key which
  corresponds exactly to one foreign key in the
  fact table
• uses surrogate keys based on integer values
• Can efficiently and easily support ad-hoc
  end-user queries

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Star Schemas

• The most common dimensional model
• A fact table surrounded by dimension tables
• Fact tables
• contains FK for each dimension table
• large relative to dimension tables
• read-only
• Dimension tables
• reference data
• query performance speeded up by denormalising
  into a single dimension table

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E-R Model Example
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Star Schema Example
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Other Schemas

• Snowflake schemas
• variant of star schema
• each dimension can have its own dimensions
• Starflake schemas
• hybrid structure
• contains mixture of (denormalised) star and
  (normalised) snowflake schemas

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OLAP

• Online Analytical Processing
• dynamic synthesis, analysis and consolidation of
  large volumes of multi-dimensional data
• normally implemented using specialized
  multi-dimensional DBMS
• a method of visualising and manipulating data
  with many inter-relationships

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Codds OLAP Rules

• 1. Multi-dimensional conceptual view
• 2. Transparency
• 3. Accessibility
• 4. Consistent reporting performance
• 5. Client-server architecture
• 6. Generic dimensionality
• 7. Dynamic sparse matrix handling
• 8. Multi-user support
• 9. Unrestricted cross-dimensional operations
• 10. Intuitive data manipulation

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OLAP Tools

• Categorised according to architecture of
  underlying database
• Multi-dimensional OLAP
• data typically aggregated and stored according to
  predicted usage
• use array technology
• Relational OLAP
• use of relational meta-data layer with enhanced
  SQL
• Managed Query Environment
• deliver data direct from DBMS or MOLAP server to
  desktop in form of a datacube

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MOLAP
RDB Server
MOLAP server
Request
Result
Load
Database/Application Logic Layer
Presentation Layer
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ROLAP
ROLAP server
Request
SQL
RDB Server
Result
Result
Database Layer
Presentation Layer
Application Logic Layer
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MQE
End-user tools
RDB Server
SQL
Result
MOLAP server
Request
Load
Result
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Data Mining

• The process of extracting valid, previously
  unknown, comprehensible and actionable
  information from large databases and using it to
  make crucial business decisions
• focus is to reveal information which is hidden
  or unexpected
• patterns and relationships are identified by
  examining the underlying rules and features of
  the data
• work from data up
• require large volumes of data

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Example Data Mining Applications

• Retail/Marketing
• Identifying buying patterns of customers
• Finding associations among customer demographic
  characteristics
• Predicting response to mailing campaigns
• Market basket analysis

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Example Data Mining Applications

• Banking
• Detecting patterns of fraudulent credit card use
• Identifying loyal customers
• Predicting customers likely to change their
  credit card affiliation
• Determining credit card spending by customer
  groups

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Data Mining Techniques

• Four main techniques
• Predictive Modeling
• Database Segmentation
• Link Analysis
• Deviation Direction

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Data Mining Techniques

• Predictive Modelling
• using observations to form a model of the
  important characteristics of some phenomenon
• Techniques
• Classification
• Value Prediction

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Classification Example- Tree Induction
Customer renting property gt 2 years
No
Yes
Customer age gt 25 years?
Rent property
No
Yes
Buy property
Rent property
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Data Mining Techniques

• Database Segmentation
• to partition a database into an unknown number of
  segments (or clusters) of records which share a
  number of properties
• Techniques
• Demographic clustering
• Neural clustering

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Segmentation Scatterplot Example
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Data Mining Techniques

• Link Analysis
• establish associations between individual records
  (or sets of records) in a database
• e.g. when a customer rents property for more
  than two years and is more than 25 years old,
  then in 40 of cases, the customer will buy the
  property
• Techniques
• Association discovery
• Sequential pattern discovery
• Similar time sequence discovery

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Data Mining Techniques

• Deviation Detection
• identify outliers, something which deviates
  from some known expectation or norm
• Statistics
• Visualisation

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Deviation Detection Visualisation Example
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Mining and Warehousing

• Data mining needs single, separate, clean,
  integrated, self-consistent data source
• Data warehouse well equipped
• populated with clean, consistent data
• contains multiple sources
• utilises query capabilities
• capability to go back to data source

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Further Reading

• Connolly and Begg, chapters 31 to 34.
• W H Inmon, Building the Data Warehouse, New York,
  Wiley and Sons, 1993.
• Benyon-Davies P, Database Systems (2nd ed),
  Macmillan Press, 2000, ch 34, 35 36.

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