CHAPTER 1: INTRODUCTION TO DATA WAREHOUSING
5. Describe five differences between operational systems and informational systems.
1. Operational systems maintain records of daily business transactions whereas an
informational system is a special database that serves as the integrated repository of
company data, for reporting and decision support purpose.
2. Access types of Operational systems are read, update and delete while we can only vie
wdata in informational systems.
3. In other words operational systems are where the data is put in, and the informational
system is where we get the data out.
4. In an operational system users takes orders, sign up new customers, and log complaints.
They almost always deal with one record at a time in an operational system. They repeatedly
perform the same operational tasks over and over. On the other hand, the users of an
informational system watch the wheels of the organization turn. They count the new orders and
compare them with last week's orders and ask why the new customers signed up and what the
customers complained about. Users of an informational system almost never deal with one row
at a time.
6. Why are operational systems not suitable for providing strategic information? Give three
specific reasons and explain.
The fundamental reason for the inability to provide strategic information is that we have been
trying all along to provide strategic information from the operational systems. These operational
systems such as order processing, inventory control, claims processing, outpatient billing, and so
on are not designed or intended to provide strategic information. If we need the ability to provide
strategic information, we must get the information from altogether different types of systems.
Only specially designed decision support systems or information systems can provide strategic
information.
7. Name six characteristics of the computing environment needed to provide strategic
information.
Integrated – Different modules or interfaces integrated in one portal
Data Integrity- Data representation s real time integrated
Accessible- For predictions
Credible- Provides authenticity and credibility
Timely- Time stamping of all variables
Predictive Analysis
8. What types of processing take place in a data warehouse? Describe.
A data warehouses provides us generalized and consolidated data in multidimensional view.
Along with generalized and consolidated view of data, a data warehouses also provides us
Online Analytical Processing (OLAP) tools. These tools help us in interactive and effective
analysis of data in a multidimensional space. This analysis results in data generalization and data
mining.
Data mining functions such as association, clustering, classification, prediction can be integrated
with OLAP operations to enhance the interactive mining of knowledge at multiple level of
abstraction. That's why data warehouse has now become an important platform for data analysis
and online analytical processing
9. A data warehouse is an environment, not a product. Discuss.
A data warehouse is not a single software or hardware product that provide the strategic
information.
It is a computing environment where the users can find strategic information, an environment
where the users are put directly in touch with the data to make better decisions. It is a user centric
environment.
The characteristics of this computing environment are,
An ideal environment for data analysis and decision support.
Fluid, flexible and interactive
It is hundreds percent user-driven
Provide the ability to discover answer to complex and unpredictable questions
Exercises
2. The current trends in hardware/software technology make data warehousing feasible.
Explain with some examples how exactly technology trends do help.
4. For an airline company, how can strategic information increase the number of frequent
flyers? Discuss giving specific details.
