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A Paper Presentation on

DATA MINING AND DATA WAREHOUSING

AUTHORS

C. Usha Tejaswi P. Parvathi

III B.Tech(C.S.E) III B.Tech(C.S.E)
usha.sanjana22@gmail.com pparu14@gmail.com
Mobile no. 9160024815 Mobile no. 9160438113

NOVA COLLEGE OF ENGINEERING AND TECHNOLOGY FOR WOMEN

Ibrahimpatnam, jupudi – 521456
Krishna District,
Andhra Pradesh.
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Abstract

Organisations are today suffering from a malaise of data overflow. The developments in the
transaction processing technology has given rise to a situation where the amount and rate of data
capture is very high, but the processing of this data into information that can be utilised for decision
making, is not developing at the same pace. Data warehousing and data mining (both data & text)
provide a technology that enables the decision-maker in the corporate sector/govt. to process this
huge amount of data in a reasonable amount of time, to extract intelligence/knowledge in a near real
time.

The data warehouse allows the storage of data in a format that facilitates its access, but if the
tools for deriving information and/or knowledge and presenting them in a format that is useful
for decision making are not provided the whole rationale for the existence of the warehouse
disappears. Various technologies for extracting new insight from the data warehouse have
come up which we classify loosely as "Data Mining Techniques".

“Our paper focuses on the need for information repositories and discovery of knowledge
and hence the overview of, the so hyped, Data Warehousing and Data Mining. “
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Introduction:

Organizations have lately realized that just processing transactions and/or information’s
faster and more efficiently, no longer provides them with a competitive advantage vis-à-vis their
competitors for achieving business excellence. Information technology (IT) tools that are
oriented towards knowledge processing can provide the edge that organizations need to survive
and thrive in the current era of fierce competition. The increasing competitive pressures and the
desire to leverage information technology techniques have led many organizations to explore the
benefits of new emerging technology – viz. "Data Warehousing and Data Mining". What is
needed today is not just the latest and updated to the nano-second information, but the cross-
functional information that can help decisions making activity as "on-line" process.

Evolution of Information Technology Tools:

The evolution of the information systems characterize the evolution of systems from data
maintenance systems, to systems that transform the data into "information" for use in the
decision making process. These systems supported the information acquisition from the
database of transactional data. The managerial knowledge acquisition function is/was not
directly supported by these systems. The evolution of new patterns in the changing
scenario could not be provided by these systems directly, the planner was supposed to do
this from experience.

Processing Processing
Data Information Knowledge

Transaction
Management Data Mining Tools &
s
Information On-Line Analytical
processi
Processing Tools
ng
Systems
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The Transformation of Data into Knowledge and associated tools.

Warehouse with a database:

One thing that remains constant, especially in corporate world, is “Change” And, these days,

change is occurring at an ever-increasing rate. A key challenge is implementing an information

infrastructure that allows your company to rapidly respond to change. One solution to this

challenge is the datawarehouse. Data warehousing is an information infrastructure based on

detail data that supports the decision-making process and provides businesses; the ability

toaccess and analyze data to increase an organization's competitive advantage. Data warehousing

is a process, not an off-the-shelf solution you buy, but hardware--database and tools integrated

into an evolving information infrastructure--that changes with the dynamics of the business.

What is Data-Warehousing?

The data warehouse makes an attempt to figure out "what we need", before we know we need it

What it actually is?

A data warehouse stores current and historical data This data is taken from various, perhaps

incompatible, sources and stored in a uniform format Several tools transform this data into

meaningful business information for the purpose of comparisons, trends and forecasting Data in

a warehouse is not updates or changed in any way, but is only loaded and accessed later on Data

is organized according to subject instead of application. In general a database is not a data

warehouse unless it has the following two features: It collects information from a number of

different disparate sources and is the place where this disparity is reconciled, and it allows

several different applications to make use of the same information.

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Conceptually, a Data Warehouse looks like this:

Information Sources always include the core operational systems which form the
backbone of day-to-day activities. It is these systems which have traditionally provided
management information to support decision making.

Decision Support Tools are used to analyze the information stored in the warehouse,
typically to identify trends and new business opportunities..

The Data Warehouse itself is the bridge between the operational systems and the
decision support tools. It holds a copy of much of the operational system data in a logical
structure which is more conducive to analysis. The Data Warehouse, which will be
refreshed in scheduled bursts from operational systems and from relevant external data
sources, provides a single, consistent view of corporate data, leaving operational systems
unaffected.
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Data – Warehouse Functions:

The main function behind a data warehouse is to get the enterprise-wide data in a format
that is most useful to end-users, regardless of their locations. Data warehousing is used
for:

• Increasing the speed and flexibility of analysis.

• Providing a foundation for enterprise-wide integration and access.
• Improving or re-inventing business processes.
• Gaining a clear understanding of customer behavior.

Data Warehouse Architecture

Each implementation of a data warehouse is different in its detailed design (a schematic

high-level of the architecture and its components is given in the figure below), but all are
characterized by a handful of the following key components:

A data model to define the warehouse contents. A carefully designed warehouse

database, whether hierarchical, relational, or multidimensional. While choosing a DBMS
it must be kept in view that the database management system should be powerful enough
to handle huge amount of data running up to terabytes. A front end for Decision Support
System (DSS) for reporting and for structured and unstructured analysis.

• Query and
Legacy Database reporting
• Multi-
Metadata
dimensional
Extract
Operational Database Transform Data analysis
Maintain Warehous tools
e • Other OLAP
External Data Source tools
• Data mining
tools

Schematic view of the Data Warehouse Architecture.

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Data Mining
Data base mining or Data mining (DM) (formally termed Knowledge Discovery in
Databases – KDD) is a process that aims to use existing data to invent new facts and to uncover
new relationships previously unknown even to experts thoroughly familiar with the data. It is
like extracting precious metal (say gold etc.) and/or gems, hence the term “mining”, It is based
on filtration and assaying of mountain of data “ore” in order to get “nuggets” of knowledge. The
data mining process is diagrammatically exemplified in Figure below

Transformed Data

Data Sources

1 Extracted

Assimilated Information
Information

2 Data Selected
Warehouse Data

N
Select Transform Mine Assimilate

The Data Mining Process.

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Data Mining and Data Warehousing

 The goal of a data warehouse is to support decision making with data.

 Data mining can be used in conjunction with a data warehouse to help
with certain types of decisions.
 Data mining can be applied to operational databases with individual
transactions.
 To make data mining more efficient, the data warehouse should have an
aggregated or summarized collection of data.
 Data mining helps in extracting meaningful new patterns that cannot be
found necessarily by merely querying or processing data or metadata in
the data warehouse.

Data Mining as a Part of the Knowledge Discovery Process

 Knowledge Discovery in Databases, frequently abbreviated as KDD, typically

encompasses more than data mining.
 The knowledge discovery process comprises six phases.
 Data selection, Data about specific items or categories of items, or from stores in
a specific region or area of the country, may be selected.
 Data cleansing process then may correct invalid zip codes or eliminate records
with incorrect phone prefixes.
 Enrichment typically enhances the data with additional sources of information.
 Data transformation and encoding may be done to reduce the amount of data.
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Goals of Data Mining and Knowledge Discovery

The goals of data mining fall into the following classes:

Prediction: Data mining can show how certain attributes within the data will behave in
the future.

Identification: Data patterns can be used to identify the existence of an item, an event, or
an activity.

Classification: Data mining can partition the data so that different classes or categories
can be identified based on combinations of parameters.

Optimization: One eventual goal of data mining may be to optimize the use of limited
resources such as time, space, money, or materials and to maximize output variables such
as sales or profits under a given set of constraints.
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CONCLUSION

A data warehouse takes the organisations operational data, historical data and external data
consolidates it into a separately designed database (which can either be relational or multi-
dimensional in nature) manages it into a format that is optimised for end users to access and
analyse. When a data warehouse has been constructed, it provides a complete picture of the
enterprise. It provides an unparalleled opportunity to the management to learn about their
customers. The data warehouse technology together with online transaction processing and data
mining, allows the management to provide better customer service, create greater customer
loyalty and activity, focus customer acquisition and retention of the most profitable customer,
increase revenue, reduce operating cost; provides tools that facilitate sounder decision making;
improves worker/management knowledge and productivity; spares the operational database from
ad-hoc queries with the resulting performance degradation and clears the legacy database system,
while moving the corporate system architecture forward.
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Bibliography

Computers Today – Smart Facts about Data Warehousing by Atanu Roy

Data Base System Concepts by Silberschatz, Korth and Sudharshan
http://www.infogoal.com/
http://www.datawarehousingonline.com/