Data warehouse and data mining

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  • A single, complete and consistent store of data obtained from a variety of different sources made available to end users in a what they can understand and use in a business context
  • Subject-Oriented: Information is presented according to specific subjects or areas of interest, not simply as computer files. Data is manipulated to provide information about a particular subject. For example, the SRDB is not simply made accessible to end-users, but is provided structure and organized according to the specific needs. Integrated: A single source of information for and about understanding multiple areas of interest. The data warehouse provides one-stop shopping and contains information about a variety of subjects. Thus the OIRAP data warehouse has information on students, faculty and staff, instructional workload, and student outcomes. Non-Volatile: Stable information that doesn’t change each time an operational process is executed. Information is consistent regardless of when the warehouse is accessed. Time-Variant: Containing a history of the subject, as well as current information. Historical information is an important component of a data warehouse. Accessible: The primary purpose of a data warehouse is to provide readily accessible information to end-users. Process-Oriented: It is important to view data warehousing as a process for delivery of information. The maintenance of a data warehouse is on-going and iterative in nature.
  • Data Mart: A data structure that is optimized for access. It is designed to facilitate end-user analysis of data. It typically supports a single, analytic application used by a distinct set of workers. Staging Area: Any data store that is designed primarily to receive data into a warehousing environment. OLAP (On-Line Analytical Processing): A method by which multidimensional analysis occurs where multidimensional analysis is the ability to manipulate information by a variety of relevant categories or “dimensions” to facilitate analysis and understanding of the underlying data. It is also sometimes referred to as “drilling-down”, “drilling-across” and “slicing and dicing”OLAP Tools: A set of software products that attempt to facilitate multidimensional analysis. Can incorporate data acquisition, data access, data manipulation, or any combination thereof.
  • Capture, Clean, Transform, TransportQuery, Report, Analyze, Mine, Deliver
  • Data warehouse and data mining

    1. 1. DATA WAREHOUSE AND DATA MINING
    2. 2. OVER 1.13 TRILLION LIKES
    3. 3. Which are our lowest/highest margin customers ? Who are my customers and what products are they buying? Which customers are most likely to go to the competition ? What impact will new products/services have on revenue and margins? What product prom- -otions have the biggest impact on revenue? What is the most effective distribution channel? A PRODUCER WANTS TO KNOW….
    4. 4. DATA, DATA EVERYWHERE YET ...  I can’t get the data I need  need an expert to get the data  I can’t understand the data I found  available data poorly documented  I can’t use the data I found  results are unexpected  data needs to be transformed from one form to other  I can’t find the data I need  data is scattered over the network  many versions, subtle differences
    5. 5.  1960s:  Data collection, database creation, IMS and network DBMS  1970s:  Relational data model, relational DBMS implementation  1980s:  RDBMS, advanced data models (extended- relational, OO, deductive, etc.) and application-oriented DBMS (spatial, scientific, engineering, etc.)  1990s—2000s:  Data mining and data warehousing, multimedia databases, and Web databases 7
    6. 6. DATA WAREHOUSE The data warehouse is that portion of an overall Architected Data Environment that serves as the single integrated source of data for processing information.
    7. 7. CHARACTERISTICS DATA WAREHOUSE Subject Oriented Integrated Non Volatile Time variant Accessible Process Oriented
    8. 8. TERMS RELATED TO DATA WAREHOUSE DATA MART STAGING AREA OLAP OLAP TOOLS
    9. 9. Data Acquisition Warehouse Design Analytical Data Store Enterprise Warehouse Data Marts Metadata Directory Metadata Repository DATA MANAGEMENT METADATA MANAGEMENT Data Analysis Web Information Systems Operational, External & other Databases COMPONENTS OF DATAWAREHOUSE SYSTEM
    10. 10. HOW IS THE WAREHOUSE DIFFERENT? The data warehouse is distinctly different from the operational data used and maintained by day- to-day operational systems. Data warehousing is not simply an “access wrapper” for operational data, where data is simply “dumped” into tables for direct access.
    11. 11. OPERATIONAL DATA Application oriented Detailed Accurate, as of the moment of access Serves the clerical community Performance sensitive (immediate response required when entering a transaction) Flexible structure; variable contents Small amount of data used in a process DATA WAREHOUSE Subject oriented Summarized Represents values over time Serves the managerial community Performance relaxed (immediacy not required) Static structure large amount of data used in a process
    12. 12. 14
    13. 13.  Data explosion problem  Automated data collection tools and mature database technology lead to tremendous amounts of data stored in databases, data warehouses and other information repositories  We are drowning in data, but starving for knowledge!  Solution: Data warehousing and data mining  Extraction of interesting knowledge (rules, regularities, patterns, constraints) from data in large databases 15
    14. 14.  Data mining (knowledge discovery in databases):  Extraction of interesting (non-trivial, implicit, previously unknown and potentially useful) information or patterns from data in large databases  Alternative names:  Data mining: a misnomer?  Knowledge discovery(mining) in databases (KDD), knowledge extraction, data/pattern analysis, data archeology, data dredging, information harvesting, business intelligence, etc.  What is not data mining?  (Deductive) query processing.  Expert systems or small ML/statistical programs 16
    15. 15.  Database analysis and decision support  Market analysis and management  target marketing, customer relation management, market basket analysis, cross selling, market segmentation  Risk analysis and management  Forecasting, customer retention, improved underwriting, quality control, competitive analysis  Fraud detection and management  Other Applications  Text mining (news group, email, documents)  Stream data mining  Web mining.  DNA data analysis 17
    16. 16.  Where are the data sources for analysis?  Credit card transactions, loyalty cards, discount coupons, customer complaint calls, plus (public) lifestyle studies  Target marketing  Find clusters of “model” customers who share the same characteristics: interest, income level, spending habits, etc.  Determine customer purchasing patterns over time  Conversion of single to a joint bank account: marriage, etc.  Cross-market analysis  Associations/co-relations between product sales  Prediction based on the association information 18
    17. 17. 19  Customer profiling  data mining can tell you what types of customers buy what products (clustering or classification)  Identifying customer requirements  identifying the best products for different customers  use prediction to find what factors will attract new customers  Provides summary information  various multidimensional summary reports  statistical summary information (data central tendency and variation)
    18. 18.  Finance planning and asset evaluation  cash flow analysis and prediction  contingent claim analysis to evaluate assets  cross-sectional and time series analysis (financial-ratio, trend analysis, etc.)  Resource planning:  summarize and compare the resources and spending  Competition:  monitor competitors and market directions  group customers into classes and a class-based pricing procedure  set pricing strategy in a highly competitive market 20
    19. 19.  Applications  widely used in health care, retail, credit card services, telecommunications (phone card fraud), etc.  Approach  use historical data to build models of fraudulent behavior and use data mining to help identify similar instances  Examples  auto insurance: detect a group of people who stage accidents to collect on insurance  money laundering: detect suspicious money transactions (US Treasury's Financial Crimes Enforcement Network)  medical insurance: detect professional patients and ring of doctors and ring of references 21
    20. 20. 22  Detecting inappropriate medical treatment  Australian Health Insurance Commission identifies that in many cases blanket screening tests were requested (save Australian $1m/yr.).  Detecting telephone fraud  Telephone call model: destination of the call, duration, time of day or week. Analyze patterns that deviate from an expected norm.  British Telecom identified discrete groups of callers with frequent intra-group calls, especially mobile phones, and broke a multimillion dollar fraud.  Retail  Analysts estimate that 38% of retail shrink is due to dishonest employees.
    21. 21.  Sports  IBM Advanced Scout analyzed NBA game statistics (shots blocked, assists, and fouls) to gain competitive advantage for New York Knicks and Miami Heat  Astronomy  JPL and the Palomar Observatory discovered 22 quasars with the help of data mining  Internet Web Surf-Aid  IBM Surf-Aid applies data mining algorithms to Web access logs for market-related pages to discover customer preference and behavior pages, analyzing effectiveness of Web marketing, improving Web site organization, etc. 23

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