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Set I
Question 1: (i) What do you understand by Business Intelligence System? What
are the different steps in order to deliver the Business Value through a BI
System?
(ii) Discuss the characteristics of a Data warehouse and analyze how the
development of a Data warehouse helps you in managing various functions in
your organizations.
The manager of a BI system has to take care of the following steps in order to
deliver the intended
business value:
Visionary
Resourceful
Reasonable
Subject Oriented: The first feature of a DW is its orientation towards the major
subjects of the organisation instead of applications. The subjects are categorized
in such a way that the subject-wise collection of information helps in decision-
making.
Integrated: The data contained within the boundaries of the warehouse are
integrated. This means that all inconsistencies regarding naming convention and
value representations need to be removed in a data warehouse.
Time Variant: The data stored in a data warehouse is not the current data. The
data is a time series data as the data warehouse is a place where the data is
accumulated periodically. This is in contrast to the data in an operational system
where the data in the databases are accurate as of the moment of access.
Marketing:
To determine real time product sales in order to make strategic pricing
and distribution decisions.
To analyze the history of products to conclude the success or failure of a
product’s attributes.
To determine the successful products and evaluate the key success
factors.
To understand the revenue impact for a specific decision item.
To identify the right customer segments based on the past records.
To understand the performance of an individual sales person.
Finance:
To compare the budget allocations and actual cost for a specific area on
weekly, monthly or annual basis.
To prepare the future estimates of profitability.
To review the past cash flow trends and forecast the same for future
periods.
To monitor a set of key financial indicators and ratios.
Human Resources:
To evaluate the trends in a specific employee benefit program.
To monitor the performance of an individual or a set of individuals.
To calculate the Return on Investment for specific resources.
To review the compliance levels for regulated activities.
Question 2: (i) What do you understand by Data Warehouse Meta Data? What is
the use of Metadata? How can you manage Metadata?
(ii) What do you understand by ETL? What are the significances of ETL
processes? What are the ETL requirements and steps?
Back room metadata that are used from Extract, Transform and Load
functions to get OLTP data into a data warehouse.
Front room metadata that are used to label screens and create reports.
We need to keep track of the entire metadata created even in the early
phases of planning and designing. It is not economical to start attaching
metadata once the production process has been completed.
Metadata must adapt if the resource it describes changes. It should be
merged when two resources are merged.
It can be useful to keep metadata even after the resource it describes has
been removed.
Metadata can be stored either internally or externally. Internal storage
allows transferring metadata together with the data it describes. This
method creates high redundancy and does not allow holding metadata
together. External storage allows bundling metadata, for example in a
database, for more efficient searching. There is no redundancy and
metadata can be transferred simultaneously when using streaming.
Storing the metadata in a human-readable format can be useful because
users can understand and edit it without specialized tools. But these
formats are not optimized for storage capacity. It may be useful to store
metadata in a binary, non-human-readable format instead to speed up
transfer and save memory.
(ii) ETL: Data extraction is the first step in the execution of the ETL
(Extraction, Transaction and Loading) functions to build a data warehouse.
This extraction can be done from an OLTP database and non-OLTP systems, such
as text files, legacy systems and spreadsheets. The data extraction process is
complex in its nature because of the tremendous diversity that exists among the
source systems in practice. It is all ETL functions that reshape the relevant data
from source systems into useful information to be stored in the data warehouse.
There would be no strategic information in a data warehouse in the absence of
these functions.
Also, the amount of time to be spent on performing the ETL functions is as much
as 50-70% of the total effort to be put for building a data warehouse. To extract
the data, we have to know the time window during each day to extract the data
from a specific source system without impacting the usage of the system. Also,
we need to determine the mechanism for capturing the changes in the data in
each of the relevant systems. Apart from the ETL functions, the building of a data
warehouse includes functions like data integration, data summarization and
metadata updating.
ETL Requirements and Steps: Ideally we’re required to undergo the following
steps for the execution of ETL functions:
Answer: (i) Data Transformation Process: The extracted data is raw data
and it cannot be directly loaded into a data warehouse. To have useful
information for strategic decision-making is an underlying principle of the data
warehouse and the data in the operational source systems cannot fulfil this
purpose. So, the transformation and loading functions play a key role in the
preparation of the data. The transformation of the data is to be done as per the
standards as the data comes from various source systems and you also need to
ensure that the combined data does not violate the business rules.
Irrespective of the complexity of the source systems and regardless of the extent
of the data warehouse, some of the basic functions performed in data
transformation function are as follows:
Selection and Splitting/Joining: This is the basic task that is performed at the
beginning of the entire data transformation process. Using this task, we may
select either whole records or parts of several records from the source systems.
The splitting/joining task includes the type of data manipulation you need to
perform on selected records of the source systems. We can either split the
selected parts further or join the parts selected from many source systems.
Summing Up: This task is used in case we find it is not required to keep data at
the lowest level of detail in our data warehouse.
To standardize the data among the data extractions from disparate source
systems.
To make the fields usable and understandable to the users.
Format Revisions: Format revisions include changes to the data types and
lengths of individual fields.
Summing Up: In this type of transformation, the summaries are created and
then loaded in the data warehouse instead of loading the most granular level of
data.
Today the application of an EIS is not only in typical corporate hierarchies, but
also at personal computers on a local area network. These systems now cross
computer hardware platforms and integrate information stored on mainframes,
personal computer systems and minicomputers. This arrangement enables all
users to customise their access to proper company’s data and provide relevant
information to both upper and lower levels in companies.
Benefits of an EIS: The advantages that an EIS brings to the organisation are:
Provides tools to select, extract, filter and track the critical information of
organisation in an organized manner.
Enables top-level executives to use the system with ease.
Provides timely delivery of the organization-wide summary of information
highlighting the major deviations of information wherever they arise.
Provides a wide range of reports including the status reports, trend
analyses, drill down investigation and ad-hoc queries.
Presents the information in graphical, tabular and/or text formats.