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OR Topics - Data Warehousing & Business Intelligence
BUILDING A DATA WAREHOUSE
Components

The main architectural components needed to build & exploit a data warehouse are as follows:

Source systems

Most data will be captured by existing operational systems, but external data may also need to be included.

ETL procedures

The warehouse will need regular updates from source systems. Feed programs can be coded manually, but, except for small-scale developments, it is usually better to use an ETL tool to extract, transform and load the data. These generate code and documentation automatically, reducing both development and maintenance timescales.

Data staging area (optional)

If a complex series of transformations is required, it may be necessary to perform these in stages, using one or more interim data stores. A common approach is to minimise the burden on operational systems by taking straight copies of all relevant tables. Another is to create an operational data store.

Using a staging area also helps to insulate the warehouse from source system changes, reducing maintenance.

Data warehouse

A separate, physical database will need to be designed and built, with a structure suited to running queries rather than on line transaction processing (OLTP). The choice of software platform, schema and indexing need careful consideration (see design issues), but most warehouses are implemented as relational databases.

Functional data marts (optional)

To obtain the best possible performance, it is usually necessary to create a number of data marts, fed from the main warehouse, which thus acts as a central hub. Each of these will focus on a specific application e.g. market segmentation, financial analysis.

Data marts are often populated using SQL queries, but could also be maintained by the ETL tool. The type of database chosen is even more critical, but could be either relational or multi-dimensional (see design issues).

Reporting & analysis tools

There are a number of generic business intelligence tools on the market. It is therefore unusual to build bespoke components to handle these processes (stage 3 & 4 above). Many of these tools have tightly integrated modules for querying, aggregation, analysis and presentation, so that users may not even perceive these as separate stages.

Vendors do, however, take very different approaches, and a clear understanding of requirements is needed before selecting reporting and analysis tools. Some tools, for example, access the warehouse directly, whilst others only access data stored in proprietary format data marts.

Analytic applications (optional)

Where information derived from the data warehouse is used to make routine decisions, it may be worth building a customised application to support this process. Such decision support systems are often referred to as analytic applications.

Many analytic applications need to write back data to the data warehouse (or, more often, to an associated data mart) e.g. forecasting, target setting and budgeting. Some may even write back to operational systems e.g. pricing, campaign management or cross-selling. These are sometimes referred to as decision processing, or as closed loop applications.

Usually, such applications are only added after critical reporting systems are in place. However, because relatively few business intelligence tools allow write-back, the intention to implement an analytic application can have a major bearing on both architecture and tool selection.

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