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Introduction To Data Warehousing

A Data Warehouse is a electronically stored data, is designed for Reporting and Analysis.

DWH Definition:
     A data warehouse is a relational database that is designed for query and analysis rather than for transaction processing. It usually contains historical data derived from transaction data, but it can include data from other sources.
        Data warehouse is Subject Oriented, Integrated, Time-Variant and Non-volatile collection of data that support management's decision making process.

In addition to a relational database, a data warehouse environment includes an extraction, transportation, transformation, and loading (ETL) solution, an Online analytical processing (OLAP) engine, client analysis tools, and other applications that manage the process of gathering data and delivering it to business users.

Data warehousing arises in an organization’s need for reliable, consolidated, unique and integrated reporting and analysis of its data, at different levels of aggregation.

       The most practical reality of most organization is that their infrastructure is made-up by a collection of heterogeneous systems. Organization system handles on customer relationship, a system that handles employees, system that handles the sales data or production data, yet another finance data and budgeting data...etc.   Dwh efficiently answers to an organization like how much time did a sales rep has interacted with the customer and what quantity of orders he has bagged from that customer within given period of time ? Daywise employees performance within the departments? To all these questions has effectively answered by dwh system. 
        The term "Data Warehouse" was first coined by Bill Inmon in 1990. He said that Data warehouse is subject Oriented, Integrated, Time-Variant and nonvolatile collection of data.This data helps in supporting decision making process by analyst in an organization

A data warehouse maintains its functions in three layers: staging, integration, and access. Staging is used to store raw data for use by developers (analysis and support). The integration layer is used to integrate data and to have a level of abstraction from users. The access layer is for getting data out for users.
1. Ralph Kimball's paradigm: Data warehouse is the conglomerate of all data marts within the enterprise. Information is always stored in the dimensional model.
Definition as Per Ralph Kimball: A data warehouse is a copy of transaction data specifically structured for query and analysis.
His Approach towards towards the Data warehouse Design is Bottom-Up.In the bottom-up approach data marts are first created to provide reporting and analytical capabilities for specific business processes
2.Bill Inmon's paradigm: Data warehouse is one part of the overall business intelligence system. An enterprise has one data warehouse, and data marts source their information from the data warehouse. In the data warehouse, information is stored in 3rd normal form.
Definition as Per Bill Inmon:
A data warehouse is a subject-oriented, integrated, time-variant and non-volatile collection of data in support of management's decision making process.
Subject-Oriented: A data warehouse can be used to analyze a particular subject area. For example, "sales" can be a particular subject.
Integrated: A data warehouse integrates data from multiple data sources. For example, source A and source B may have different ways of identifying a product, but in a data warehouse, there will be only a single way of identifying a product.
Time-Variant: Historical data is kept in a data warehouse. For example, one can retrieve data from 3 months, 6 months, 12 months, or even older data from a data warehouse. This contrasts with a transactions system, where often only the most recent data is kept. For example, a transaction system may hold the most recent address of a customer, where a data warehouse can hold all addresses associated with a customer.
Non-volatile: Once data is in the data warehouse, it will not change. So, historical data in a data warehouse should never be altered.
His Approach towards towards the Data warehouse Design is Top-Down. In top-down approach to data warehouse design, in which the data warehouse is designed using a normalized enterprise data model. "Atomic" data, that is, data at the lowest level of detail, are stored in the data warehouse.



OLTP
OLAP
Source of data
Operational data; OLTPs are the original source of the data
Consolidation data; OLAP data comes from the various OLTP Databases
Purpose of data
To control and run fundamental business tasks
To help with planning, problem solving, and decision support
What the data
Reveals a snapshot of ongoing business processes
Multi-dimensional views of various kinds of business activities
Inserts and Updates
Short and fast inserts and updates initiated by end users
Periodic long-running batch jobs refresh the data
Processing Speed
Typically very fast
Depends on the amount of data involved; batch data refreshes and complex queries may take many hours; query speed can be improved by creating indexes
Queries
Relatively standardized and simple queries Returning relatively few records
Often complex queries involving aggregations
Space Requirements
Can be relatively small if historical data is archived
Larger due to the existence of aggregation structures and history data; requires more indexes than OLTP
Database Design
Highly normalized with many tables
Typically de-normalized with fewer tables; use of star and/or snowflake schemas
Backup and Recovery
Backup religiously; operational data is critical to run the business, data loss is likely to entail significant monetary loss and legal liability
Instead of regular backups, some environments may consider simply reloading the OLTP data as a recovery method.

- Data Warehouse Architecture
Below is the diagram of DWH architecture.


In general, all data warehouse systems have the following layers:
 Data Source Layer
 Data Extraction Layer
 Staging Area
 ETL Layer
 Data Storage Layer
 Data Logic Layer
 Data Presentation Layer
 Metadata Layer
 System Operations Layer

Data Source Layer
This represents the different data sources that feed data into the data warehouse. The data source can be of any format -- plain text file, relational database, other types of database, Excel file, etc., can all act as a data source.
Many different types of data can be a data source:

 Operations -- such as sales data, HR data, product data, inventory data, marketing
     Data, systems data.
 Web server logs with user browsing data.
 Internal market research data.
 Third-party data, such as census data, demographics data, or survey data.
All these data sources together form the Data Source Layer.
Data Extraction Layer
Data gets pulled from the data source into the data warehouse system. There is likely some minimal data cleansing, but there is unlikely any major data transformation.

Staging Area
This is where data sits prior to being scrubbed and transformed into a data warehouse / data mart. Having one common area makes it easier for subsequent data processing / integration.

ETL Layer
This is where data gains its "intelligence", as logic is applied to transform the data from a transactional nature to an analytical nature. This layer is also where data cleansing happens. The ETL design phase is often the most time-consuming phase in a data warehousing project, and an ETL tool is often used in this layer.

Data Storage Layer
This is where the transformed and cleansed data sit. Based on scope and functionality, 3 types of entities can be found here: data warehouse, data mart, and operational data store (ODS). In any given system, you may have just one of the three, two of the three, or all three types.

Data Logic Layer
This is where business rules are stored. Business rules stored here do not affect the underlying data transformation rules, but do affect what the report looks like.

Data Presentation Layer
This refers to the information that reaches the users. This can be in a form of a tabular / graphical report in a browser, an emailed report that gets automatically generated and sent every day, or an alert that warns users of exceptions, among others. Usually an OLAP tool and/or a reporting tool is used in this layer.

Metadata Layer
This is where information about the data stored in the data warehouse system is stored. A logical data model would be an example of something that's in the metadata layer. A metadata tool is often to use to manage metadata.

System Operations Layer
This layer includes information on how the data warehouse system operates, such as ETL job status, system performance, and user access history.


Data Warehouse Applications
As discussed before Data Warehouse helps the business executives in organize, analyze and use their data for decision making. Data Warehouse serves as a soul part of a plan-execute-assess "closed-loop" feedback system for enterprise management. Data Warehouse is widely used in the following fields:
·         financial services
·         Banking Services
·         Consumer goods
·         Retail sectors.
·         Controlled manufacturing
Data Warehouse Types
Information processing, Analytical processing and Data Mining are the three types of data warehouse applications that are discussed below:
·         Information processing - Data Warehouse allow us to process the information stored in it. The information can be processed by means of querying, basic statistical analysis, reporting using crosstabs, tables, charts, or graphs.
·         Analytical Processing - Data Warehouse supports analytical processing of the information stored in it. The data can be analyzed by means of basic OLAP operations, including slice-and-dice, drill down, drill up, and pivoting.

·         Data Mining - Data Mining supports knowledge discovery by finding the hidden patterns and associations, constructing analytical models, performing classification and prediction. These mining results can be presented using the visualization tools.

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