Data Mining:

Concepts and Techniques

(3rd ed.)

— Chapter 4 —

Jiawei Han, Micheline Kamber, and Jian Pei

University of Illinois at Urbana-Champaign &
Simon Fraser University
©2011 Han, Kamber & Pei. All rights reserved.
1
 Chapter 4: Data Warehousing and On-line
Analytical Processing

◼ Data Warehouse: Basic Concepts

◼ Data Warehouse Modeling: Data Cube and OLAP
◼ Data Warehouse Design and Usage
◼ Data Warehouse Implementation
◼ Data Generalization by Attribute-Oriented
Induction
◼ Summary

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 What is a Data Warehouse?
◼ Defined in many different ways, but not rigorously.
◼ A decision support database that is maintained separately from
the organization’s operational database
◼ Support information processing by providing a solid platform of
consolidated, historical data for analysis.
◼ “A data warehouse is a subject-oriented, integrated, time-variant,
and nonvolatile collection of data in support of management’s
decision-making process.”—W. H. Inmon
◼ Data warehousing:
◼ The process of constructing and using data warehouses

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 Data Warehouse—Subject-Oriented

◼ Organized around major subjects, such as customer,

product, sales
◼ Focusing on the modeling and analysis of data for
decision makers, not on daily operations or transaction
processing
◼ Provide a simple and concise view around particular
subject issues by excluding data that are not useful in
the decision support process

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 Data Warehouse—Integrated

◼ Constructed by integrating multiple, heterogeneous data

sources
◼ relational databases, flat files, on-line transaction

records
◼ Data cleaning and data integration techniques are
applied.
◼ Ensure consistency in naming conventions, encoding

structures, attribute measures, etc. among different

data sources
◼ E.g., Hotel price: currency, tax, breakfast covered, etc.
◼ When data is moved to the warehouse, it is
converted.

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 Data Warehouse—Time Variant

◼ The time horizon for the data warehouse is significantly

longer than that of operational systems
◼ Operational database: current value data
◼ Data warehouse data: provide information from a
historical perspective (e.g., past 5-10 years)
◼ Every key structure in the data warehouse
◼ Contains an element of time, explicitly or implicitly
◼ But the key of operational data may or may not
contain “time element”

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 Data Warehouse—Nonvolatile

◼ A physically separate store of data transformed from the

operational environment
◼ Operational update of data does not occur in the data
warehouse environment
◼ Does not require transaction processing, recovery,
and concurrency control mechanisms
◼ Requires only two operations in data accessing:
◼ initial loading of data and access of data

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 OLTP vs. OLAP
OLTP OLAP
users clerk, IT professional knowledge worker
function day to day operations decision support
DB design application-oriented subject-oriented
data current, up-to-date historical,
detailed, flat relational summarized, multidimensional
isolated integrated, consolidated
usage repetitive ad-hoc
access read/write lots of scans
index/hash on prim. key
unit of work short, simple transaction complex query
# records accessed tens millions
#users thousands hundreds
DB size 100MB-GB 100GB-TB
metric transaction throughput query throughput, response

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 Differences between Operational
Database Systems and Data Warehouses,
• Operational databases are used to handle the day-to-day activities of an organization. They focus on processing
transactions quickly and accurately, such as adding new records, updating existing information, or deleting data
when needed. These databases support real-time operations and help keep daily business tasks running smoothly.
Examples are purchasing, inventory, manufacturing, banking, payroll, registration, and account ing.
• A data warehouse is used to help organizations understand their data and make better decisions. It
brings together information from different systems and stores it in one place, making the data easier to
study and compare. Instead of handling daily transactions, it focuses on analyzing past and present data
to find patterns, trends, and useful insights.

April 14, 2026 Data Mining: Concepts and Techniques 9

 Differences between Operational
Database Systems and Data Warehouses,

Operational Database Data Warehouse

Operational frameworks are outlined to back high-volume Data warehousing frameworks are regularly outlined to
exchange preparing. back high-volume analytical processing (i.e., OLAP).

Operational frameworks are more often than not concerned Data warehousing frameworks are ordinarily concerned with
with current data. verifiable information.

Data inside operational frameworks are basically overhauled Non-volatile, unused information may be included routinely.
frequently agreeing to need. Once Included once in a while changed.

It is planned for real-time commerce managing and It is outlined for investigation of commerce measures by
processes. subject range, categories, and qualities.

Relational databases are made for on-line value-based Data Warehouse planned for on-line Analytical Processing
Preparing (OLTP) (OLAP)

Operational frameworks are ordinarily optimized to perform Data warehousing frameworks are more often than not
quick embeds and overhauls of cooperatively little volumes optimized to perform quick recoveries of moderately tall
of data. volumes of information.

High data input and moderate data output Low data input but very high data output

Operational database systems are generally application-

Data warehouses are generally subject-oriented.
oriented.

April 14, 2026 Data Mining: Concepts and Techniques 10

 Why a Separate Data Warehouse?
◼ High performance for both systems
◼ DBMS— tuned for OLTP: access methods, indexing, concurrency
control, recovery
◼ Warehouse—tuned for OLAP: complex OLAP queries,
multidimensional view, consolidation
◼ Different functions and different data:
◼ missing data: Decision support requires historical data which
operational DBs do not typically maintain
◼ data consolidation: DS requires consolidation (aggregation,
summarization) of data from heterogeneous sources
◼ data quality: different sources typically use inconsistent data
representations, codes and formats which have to be reconciled
◼ Note: There are more and more systems which perform OLAP
analysis directly on relational databases
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 Datawarehouse basics
◼ A data warehouse is a data management system that stores current and historical data from multiple sources in a
business-friendly manner for insights and reporting.
◼ A data warehouse differs from a database. A data warehouse is a structured repository that provides data for
business intelligence and analytics, while a database is a collection of structured data, extending beyond text and
numbers to images, videos and more.
◼ Data warehouse architecture refers to the framework that governs how a data warehouse is organized, structured
and implemented, including components and processes.
◼ According to Bill Inmon, who wrote Building the Data Warehouse, the groundbreaking book that launched the
data warehouse industry, data warehouse architecture refers to a “subject-oriented, integrated, time-variant and
nonvolatile collection of data in support of management’s decision-making process.”
◼ Subject-oriented — Data is organized and structured around specific business topics or themes, such as sales,
marketing or distribution data
◼ Integrated — The data warehouse integrates data from multiple sources in a unified way
◼ Time-variant — Data represents a historical snapshot, capturing changes over time, allowing for trend analysis
and reporting on how data has evolved
• Subject-oriented — Data is organized and structured around specific business topics or themes, such as sales,
marketing or distribution data
• Integrated — The data warehouse integrates data from multiple sources in a unified way
• Time-variant — Data represents a historical snapshot, capturing changes over time, allowing for trend analysis
and reporting on how data has evolved
• Nonvolatile — Data in the warehouse is read-only; it will not be changed or overwritten, keeping historical data
intact and reliable for analysis
◼ — Data in the warehouse is read-only; it will not be changed or overwritten, keeping historical data intact and
 Types of data warehouse architecture

◼ Data warehouse architecture varies in complexity, depending on structure and purpose.

◼ Single tier
In this simple form, the data warehouse acts as a centralized repository for all data and as the platform for
analysis and querying. Single-tier data warehouse architecture is suited for small organizations with a limited
number of data sources, simple reporting needs and smaller budgets.
◼ Two tier
This model separates source systems from the data warehouse, creating two layers. The data warehouse is the
platform for both storage and querying. Two-tier architecture offers greater scalability and improved
performance and allows for more complex transformations than single-tier architecture.
◼ Three tier
In three-tier data warehousing architecture, the bottom tier comprises data sources and data storage, data
access methods and data ingestion or extraction. The middle tier is an online analytical processing (OLAP)
server. The top tier includes the front-end clients for querying, BI, dashboarding, reporting and analysis. This
is the most complex type of data warehouse architecture and provides high performance and scalability,
integrates with analytics tools and supports complex querying and analytics.
1. Source Layer
The source layer is the foundational layer that stores data in multiple databases and operational systems.
You cannot usually access your data directly from here since it is a storage unit for further processing.
Some common sources are NoSQL DBs, APIs, relational DBs, etc.
2. Staging Layer
The staging layer temporarily holds your collected data to clean, validate, and transform it. Different ETL
tools come together to carry out data preparation tasks.
3. Modeling Layer
Structured data is stored here in an organized manner for analytical querying and reporting. Star schemas
and Snowflake schemas are common data models for this layer.
4. Presentation Layer
Also known as the consumption layer, it offers a user-friendly interface for easy data access and analysis.
You can use visualization tools, such as reports and dashboards, to interact with this information.
1. Data Warehouse Database
The database (DB) is at the center of the warehouse and stores the data to make it reporting-ready. There are four main
types of databases, including typical relational DBs, cloud-based DBs, analytics DBs, and data warehouse applications.
Your organizational requirements will determine which database is right for you.
2. Data Integration
Different integration approaches transform the information for swift analytical consumption. The two common approaches
are ETL (extract, transform, load) and ELT (extract, load, transform).
However, other approaches include data transformation and bulk-load processing. Choosing the right tool is important to
determine extraction approaches, fill incorrect data, time consumption, etc.
3. Metadata
Metadata is data about your data, which is also stored in the repository. It includes all the information about the structure,
use, source, content, and other DWH features. Business metadata has information about data related to storage point,
structure, and accessibility. 4. Data Warehouse 4. Access Tools
As DWHs are made of databases, they require access tools to tap into the stored data. While not all business units need
these tools, they are still fundamental to the architecture. Some key access tools are data mining, query and reporting,
OLAP, and app development.
Types of Data Warehouse Architecture
Single tier
In this simple form, the data warehouse acts as a centralized repository for all data and as the platform for analysis and querying. Single-tier data warehouse
architecture is suited for small organizations with a limited number of data sources, simple reporting needs and smaller budgets.

Two tier
This model separates source systems from the data warehouse, creating two layers. The data warehouse is the platform for both storage and querying. Two-tier
architecture offers greater scalability and improved performance and allows for more complex transformations than single-tier architecture.

Three tier
In three-tier data warehousing architecture, the bottom tier comprises data sources and data storage, data access methods and data ingestion or extraction. The
middle tier is an online analytical processing (OLAP) server. The top tier includes the front-end clients for querying, BI, dashboarding, reporting and analysis.
This is the most complex type of data warehouse architecture and provides high performance and scalability, integrates with analytics tools and supports
complex querying and analytics.

Data warehouse layers

Data warehouse architecture is built on a layered structure facilitating the efficient flow, transformation and consumption of data for analytics and decision-
making. Each layer plays a role in ensuring data meets business needs.
Source layer
The source layer is the foundation of data warehouse architecture and the entry point for data. It contains raw data from various data sources, such as point-of-
sale, marketing automation, CRM or ERP systems, third-party sources and more.
Staging layer
The staging layer temporarily stores data as it’s consolidated, cleaned and transformed, preparing the data for efficient loading into the warehouse. The staging
layer acts as a buffer between the source layer and the warehouse layer, ensuring that errors in source data are addressed before further processing.
Warehouse layer
The warehouse layer is where all processed, cleaned and structured data is stored for long-term use. Data in this layer is often organized into schemas that are
optimized for querying and analysis. This layer also enforces governance policies, such as data lineage and access controls, to maintain data integrity and
security.
Consumption layer
The consumption layer ensures that data is accessible and relevant to business users. This layer includes BI tools, dashboards, data visualization platforms and
APIs that provide user-friendly interfaces. Data in this layer is often aggregated or preprocessed into summary tables or cubes for faster query performance.
 Data warehouse components
Data warehouse architecture is composed of key components that work together to ensure seamless data management and analytics. Core components include
the data lakehouse architecture, data integration tools, metadata and data access tools, but organizations may use additional
components as needed.
Data lakehouse architecture
The data lakehouse serves as the unified platform for storing and processing all types of data, combining the flexibility of data lakes with the management
features of traditional warehouses. It handles both structured and unstructured data, supporting everything from SQL analytics to machine learning
workloads, while maintaining data quality and performance.
Data integration tools
Data integration tools support two main approaches to data management: direct integration and data virtualization. Direct integration tools pull data into the
central database and transform it into a unified format for analysis by using methods like ETL (extract, transform, load), ELT (extract, load, transform)
and real-time and bulk-load processing. Data virtualization enables querying data where it resides through federation, creating a unified view across
distributed data sources without moving the data. These approaches can be used together, supported by automation, orchestration, data quality and
enrichment. Increasingly, customers are reporting directly in their data warehouse to avoid moving the data.
Metadata
Metadata is data about data, essential for data governance and management. It provides context and details about the data such as origins,
transformations, structure, relationships and usage. Technical metadata details schemas, data types and lineage, while business metadata describes data
for nontechnical users.
Data access tools
Data access tools allow users to query, analyze and visualize data stored in the data warehouse, bridging the gap between raw data and decision-makers.
These tools include reporting software, BI platforms, OLAP tools, data mining tools, application development tools and APIs that make data accessible to
both technical and nontechnical users.
Embedded AI and ML capabilities
Modern data warehouses often include built-in AI and ML capabilities that enable automatic data processing, pattern detection, anomaly detection and
predictive analytics directly within the warehouse environment, eliminating the need for separate AI/ML systems.
Interactive dashboards
Visual analytics dashboards provide real-time access to data insights through interactive charts, graphs and reports. These
self-service interfaces allow both technical and nontechnical users to explore data, create visualizations and generate
insights without writing complex queries.
Governance framework
A comprehensive governance framework manages data access controls, security policies, compliance requirements and
data quality standards. This includes tools for data lineage tracking, audit logging, privacy protection and regulatory
compliance management across the entire data warehouse environment.

Structuring the data warehouse

Organizations use schemas to describe different logical arrangements of data, represented by objects such as indexes and
tables, within a data warehouse. These schemas act as a blueprint for how data will be stored and managed, including
definitions of terms and relationships and their arrangement. Enterprises use three types of schema to structure a data
warehouse.
Data Warehouse: A Multi-Tiered Architecture

Monitor
& OLAP Server
Other Metadata
sources Integrator

Analysis
Operational Extract Query
DBs Transform Data Serve Reports
Load
Refresh
Warehouse Data mining

Data Marts

Data Sources Data Storage OLAP Engine Front-End Tools

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April 14, 2026 Data Mining: Concepts and Techniques 22
 Three Data Warehouse Models
◼ Enterprise warehouse
◼ collects all of the information about subjects spanning

the entire organization

◼ Data Mart
◼ a subset of corporate-wide data that is of value to a

specific groups of users. Its scope is confined to

specific, selected groups, such as marketing data mart
◼ Independent vs. dependent (directly from warehouse) data mart
◼ Virtual warehouse
◼ A set of views over operational databases

◼ Only some of the possible summary views may be

materialized
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 Real-time
Type Best For Scalability Cost Complexity
Capability

EDW Large enterprises High High High Limited

Operational
ODS Medium Medium Medium High
reporting

Department-
Data Mart Low Low Low Medium
specific needs

Flexible, scalable
Cloud DW Very High Pay-as-you-go Medium High
needs

Large, varied
Big Data DW Very High High High High
datasets

Distributed data
Virtual DW Medium Low Medium High
sources

Balancing security
Hybrid DW High Medium High Medium
and scalability

Immediate
Real-time DW High High High Very High
insights

April 14, 2026 Data Mining: Concepts and Techniques 24

Extraction, Transformation, and Loading (ETL)
◼ Data extraction
◼ get data from multiple, heterogeneous, and external
sources
◼ Data cleaning
◼ detect errors in the data and rectify them when possible

◼ Data transformation
◼ convert data from legacy or host format to warehouse
format
◼ Load
◼ sort, summarize, consolidate, compute views, check
integrity, and build indicies and partitions
◼ Refresh
◼ propagate the updates from the data sources to the
warehouse
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 Metadata Repository
◼ Meta data is the data defining warehouse objects. It stores:
◼ Description of the structure of the data warehouse
◼ schema, view, dimensions, hierarchies, derived data defn, data
mart locations and contents
◼ Operational meta-data
◼ data lineage (history of migrated data and transformation path),
currency of data (active, archived, or purged), monitoring
information (warehouse usage statistics, error reports, audit trails)
◼ The algorithms used for summarization
◼ The mapping from operational environment to the data warehouse
◼ Data related to system performance
◼ warehouse schema, view and derived data definitions

◼ Business data
◼ business terms and definitions, ownership of data, charging policies
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 From Tables and Spreadsheets to
Data Cubes
◼ A data warehouse is based on a multidimensional data model
which views data in the form of a data cube
◼ A data cube, such as sales, allows data to be modeled and viewed in
multiple dimensions
◼ Dimension tables, such as item (item_name, brand, type), or
time(day, week, month, quarter, year)
◼ Fact table contains measures (such as dollars_sold) and keys
to each of the related dimension tables
◼ In data warehousing literature, an n-D base cube is called a base
cuboid. The top most 0-D cuboid, which holds the highest-level of
summarization, is called the apex cuboid. The lattice of cuboids
forms a data cube.
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 Conceptual Modeling of Data Warehouses

◼ Modeling data warehouses: dimensions & measures

◼ Star schema: A fact table in the middle connected to a
set of dimension tables
◼ Snowflake schema: A refinement of star schema
where some dimensional hierarchy is normalized into a
set of smaller dimension tables, forming a shape
similar to snowflake
◼ Fact constellations: Multiple fact tables share
dimension tables, viewed as a collection of stars,
therefore called galaxy schema or fact constellation

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 Example of Star Schema
time
time_key item
day item_key
day_of_the_week Sales Fact Table item_name
month brand
quarter time_key type
year supplier_type
item_key
branch_key
branch location
location_key
branch_key location_key
branch_name units_sold street
branch_type city
dollars_sold state_or_province
country
avg_sales
Measures

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 Example of Snowflake Schema
time
time_key item
day item_key supplier
day_of_the_week Sales Fact Table item_name supplier_key
month brand supplier_type
quarter time_key type
year item_key supplier_key

branch_key
branch location
location_key
location_key
branch_key
units_sold street
branch_name
city_key
branch_type
dollars_sold city
city_key
avg_sales city
state_or_province
Measures country

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 Example of Fact Constellation
time
time_key item Shipping Fact Table
day item_key
day_of_the_week Sales Fact Table item_name time_key
month brand
quarter time_key type item_key
year supplier_type shipper_key
item_key
branch_key from_location

branch location_key location to_location

branch_key location_key dollars_cost
branch_name
units_sold
street
branch_type dollars_sold city units_shipped
province_or_state
avg_sales country shipper
Measures shipper_key
shipper_name
location_key
shipper_type 31
 Multidimensional Data

◼ Sales volume as a function of product, month,

and region
Dimensions: Product, Location, Time
Hierarchical summarization paths

Industry Region Year

Category Country Quarter

Product

Product City Month Week

Office Day

Month
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 A Sample Data Cube

Total annual sales

Date of TVs in U.S.A.
1Qtr 2Qtr 3Qtr 4Qtr sum
TV
PC U.S.A
VCR

Country
sum
Canada

Mexico

sum

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 Typical OLAP Operations
◼ Roll up (drill-up): summarize data
◼ by climbing up hierarchy or by dimension reduction
◼ Drill down (roll down): reverse of roll-up
◼ from higher level summary to lower level summary or
detailed data, or introducing new dimensions
◼ Slice and dice: project and select
◼ Pivot (rotate):
◼ reorient the cube, visualization, 3D to series of 2D planes
◼ Other operations
◼ drill across: involving (across) more than one fact table
◼ drill through: through the bottom level of the cube to its
back-end relational tables (using SQL)

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Fig. 3.10 Typical OLAP
Operations

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 Data Warehouse Usage
◼ Three kinds of data warehouse applications
◼ Information processing
◼ supports querying, basic statistical analysis, and reporting
using crosstabs, tables, charts and graphs
◼ Analytical processing
◼ multidimensional analysis of data warehouse data
◼ supports basic OLAP operations, slice-dice, drilling, pivoting
◼ Data mining
◼ knowledge discovery from hidden patterns
◼ supports associations, constructing analytical models,
performing classification and prediction, and presenting the
mining results using visualization tools

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 Data warehouse platforms
Platform Architecture Key Features Use Cases

Large-scale analytics,
MPP architecture, AWS Scalable, fast queries,
Amazon Redshift cloud-native
ecosystem AWS integration
applications

Serverless, decoupled Real-time analytics, low Fast analytics, real-time

Google BigQuery
storage and compute infrastructure data processing

Multi-cluster, shared-
Compute-storage Flexible scaling, cross-
data architecture, cross-
Snowflake separation, dynamic cloud platform
cloud (AWS, Azure,
scaling workloads
GCP)

Hybrid data
Hybrid, big data Unified analytics, Spark management,
Azure Synapse
integration integration integration with
Microsoft tools
[Link]
April 14, 2026 Data Mining: Concepts and Techniques 37
 Summary
◼ Data warehousing: A multi-dimensional model of a data warehouse
◼ A data cube consists of dimensions & measures
◼ Star schema, snowflake schema, fact constellations
◼ OLAP operations: drilling, rolling, slicing, dicing and pivoting
◼ Data Warehouse Architecture, Design, and Usage
◼ Multi-tiered architecture
◼ Business analysis design framework
◼ Information processing, analytical processing, data mining, OLAM (Online
Analytical Mining)
◼ Implementation: Efficient computation of data cubes
◼ Partial vs. full vs. no materialization
◼ Indexing OALP data: Bitmap index and join index
◼ OLAP query processing
◼ OLAP servers: ROLAP, MOLAP, HOLAP
◼ Data generalization: Attribute-oriented induction
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 References (I)
◼ S. Agarwal, R. Agrawal, P. M. Deshpande, A. Gupta, J. F. Naughton, R. Ramakrishnan, and S.
Sarawagi. On the computation of multidimensional aggregates. VLDB’96
◼ D. Agrawal, A. E. Abbadi, A. Singh, and T. Yurek. Efficient view maintenance in data
warehouses. SIGMOD’97
◼ R. Agrawal, A. Gupta, and S. Sarawagi. Modeling multidimensional databases. ICDE’97
◼ S. Chaudhuri and U. Dayal. An overview of data warehousing and OLAP technology. ACM
SIGMOD Record, 26:65-74, 1997
◼ E. F. Codd, S. B. Codd, and C. T. Salley. Beyond decision support. Computer World, 27, July
1993.
◼ J. Gray, et al. Data cube: A relational aggregation operator generalizing group-by, cross-tab
and sub-totals. Data Mining and Knowledge Discovery, 1:29-54, 1997.
◼ A. Gupta and I. S. Mumick. Materialized Views: Techniques, Implementations, and
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1998.
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SIGMOD’96
◼ J. Hellerstein, P. Haas, and H. Wang. Online aggregation. SIGMOD'97
39
 References (II)
◼ C. Imhoff, N. Galemmo, and J. G. Geiger. Mastering Data Warehouse Design: Relational and
Dimensional Techniques. John Wiley, 2003
◼ W. H. Inmon. Building the Data Warehouse. John Wiley, 1996
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Modeling. 2ed. John Wiley, 2002
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11, Sept. 1995.
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[Link] 1998
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◼ A. Shoshani. OLAP and statistical databases: Similarities and differences. PODS’00.
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views. VLDB'96
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on Database Systems (TODS), 31(1): 1-38, 2006

40
Surplus Slides

41
 Compression of Bitmap Indices
◼ Bitmap indexes must be compressed to reduce I/O costs
and minimize CPU usage—majority of the bits are 0’s
◼ Two compression schemes:
◼ Byte-aligned Bitmap Code (BBC)
◼ Word-Aligned Hybrid (WAH) code
◼ Time and space required to operate on compressed
bitmap is proportional to the total size of the bitmap
◼ Optimal on attributes of low cardinality as well as those of
high cardinality.
◼ WAH out performs BBC by about a factor of two
42