Data Warehouses and Data Mart

A Data Mart is a subset of a directorial information store, generally oriented to a specific purpose or primary data
subject which may be distributed to provide business needs. Data Marts are analytical record stores designed to focus
on particular business functions for a specific community within an organization. Data marts are derived from subsets
of data in a data warehouse, though in the bottom-up data warehouse design methodology, the data warehouse is
created from the union of organizational data marts.
The fundamental use of a data mart is Business Intelligence (BI) applications. BI is used to gather, store, access,
and analyze record. It can be used by smaller businesses to utilize the data they have accumulated since it is less
expensive than implementing a data warehouse.

Reasons for creating a data mart

o Creates collective data by a group of users
o Easy access to frequently needed data
o Ease of creation
o Improves end-user response time
o Lower cost than implementing a complete data warehouses
o Potential clients are more clearly defined than in a comprehensive data warehouse
o It contains only essential business data and is less cluttered.
Types of Data Marts
There are mainly two approaches to designing data marts. These approaches are
o Dependent Data Marts
o Independent Data Marts
AD Dependent Data Marts
A dependent data marts is a logical subset of a physical subset of a higher data warehouse. According to this
technique, the data marts are treated as the subsets of a data warehouse. In this technique, firstly a data warehouse is
created from which further various data marts can be created. These data mart are dependent on the data warehouse
and extract the essential record from it. In this technique, as the data warehouse creates the data mart; therefore,
there is no need for data mart integration. It is also known as a top-down approach.

Independent Data Marts

The second approach is Independent data marts (IDM) Here, firstly independent data marts are created, and then a
data warehouse is designed using these independent multiple data marts. In this approach, as all the data marts are
designed independently; therefore, the integration of data marts is required. It is also termed as a bottom-up
approach as the data marts are integrated to develop a data warehouse.
Other than these two categories, one more type exists that is called "Hybrid Data Marts."
Hybrid Data Marts
It allows us to combine input from sources other than a data warehouse. This could be helpful for many situations;
especially when Adhoc integrations are needed, such as after a new group or product is added to the organizations.
Steps in Implementing a Data Mart
The significant steps in implementing a data mart are to design the schema, construct the physical storage, populate
the data mart with data from source systems, access it to make informed decisions and manage it over time. So, the
steps are:
Designing
The design step is the first in the data mart process. This phase covers all of the functions from initiating the request
for a data mart through gathering data about the requirements and developing the logical and physical design of the
data mart.
It involves the following tasks:
1. Gathering the business and technical requirements
2. Identifying data sources
3. Selecting the appropriate subset of data
4. Designing the logical and physical architecture of the data mart.
Constructing
This step contains creating the physical database and logical structures associated with the data mart to provide fast
and efficient access to the data.
It involves the following tasks:
1. Creating the physical database and logical structures such as tablespaces associated with the data mart.
2. creating the schema objects such as tables and indexes describe in the design step.
3. Determining how best to set up the tables and access structures.
Populating
This step includes all of the tasks related to the getting data from the source, cleaning it up, modifying it to the right
format and level of detail, and moving it into the data mart.
It involves the following tasks:
1. Mapping data sources to target data sources
2. Extracting data
3. Cleansing and transforming the information.
4. Loading data into the data mart
5. Creating and storing metadata
Accessing
This step involves putting the data to use: querying the data, analyzing it, creating reports, charts and graphs and
publishing them.
It involves the following tasks:
1. Set up and intermediate layer (Meta Layer) for the front-end tool to use. This layer translates database
operations and objects names into business conditions so that the end-clients can interact with the data mart using
words which relates to the business functions.
2. Set up and manage database architectures like summarized tables which help queries agree through the front-
end tools execute rapidly and efficiently.
Managing
This step contains managing the data mart over its lifetime. In this step, management functions are performed as:
 Data Warehouse Data Mart

A Data Warehouse is a vast A data mart is an only subtype of

repository of information collected a Data Warehouses. It is
from various organizations or architecture to meet the
departments within a corporation. requirement of a specific user
group.

It may hold multiple subject areas. It holds only one subject area. For
example, Finance or Sales.

It holds very detailed information. It may hold more summarized

data.

Works to integrate all data sources It concentrates on integrating

data from a given subject area or
set of source systems.

In data warehousing, Fact In Data Mart, Star Schema and

constellation is used. Snowflake Schema are used.

knowledge management (KM)

Knowledge management is the process by which an enterprise gathers, organizes, shares and analyzes its knowledge in a way

that is easily accessible to employees. This knowledge includes technical resources, frequently asked questions, training

documents and people [Link] management involves data mining and some method of operation to push information

to users to make it easily accessible. A knowledge management plan involves a survey of corporate goals and a close

examination of the tools -- both traditional and technical -- to address the needs of a company. The challenge of selecting a

knowledge management system is to purchase or build software that fits the context of the overall plan and encourages

employees to u the system and share information.

What is the goal of knowledge management?

 Improving organizational efficiency and saving knowledge in an easily accessible form are the main goals of knowledge

management. Knowledge management aims to put the right information in front of someone at the right time.

This is done by:

 capturing and organizing knowledge in a knowledge management system to address specific business tasks and projects;

 sharing knowledge with others who can benefit from it;

 improving processes and technology to provide easy access to knowledge; and

 promoting the generation of new knowledge for continual learning.

Knowledge management enables businesses to break down siloes by putting information in a place easily accessible to all

employees. It provides a place for people to put knowledge they have acquired over time, preventing a business from losing that

information when individuals leave the company.

Types of knowledge

Knowledge is an understanding of information that an organization or individual acquires through education and experience.

That information comes from data -- raw facts and figures that have been contextualized.

There are three types of knowledge -- explicit, tacit and embedded. However, the two most important distinctions are explicit and

tacit.

 Explicit knowledge. This type of knowledge is codified -- meaning it is found in books, files, folders, documents, databases

and how-to videos -- and is most easily extracted and handled by a knowledge management system.
 Tacit knowledge. This form of knowledge is intuitive in nature. It is based on experience and practice and often helps in

achieving long-term goals. This type of knowledge transfer is difficult, as it lies with a single person. There is no easy way to

extract it as with explicit knowledge, leaving the knowledge-holder with the task of writing it down or creating a video. Some

examples of tacit knowledge include identifying the right moment to launch into a sales pitch or developing leadership skills.

 Embedded knowledge. This knowledge is found in systemic processes, routines, manuals, structures and organizational

cultures. It is embedded formally through management initiatives or informally as organizations use and apply the other two

knowledge types. While embedded knowledge can be found in explicit sources, it is not always immediately apparent why

doing something a certain way is important for a business.

The knowledge management process

There are four key knowledge management processes. These include:

 Knowledge gathering. This includes entering data, optical character recognition and scanning, pulling information from

various sources and searching for other information to include.

 Knowledge storage and organization. This step in the process includes cataloging and indexing content in a knowledge

management system to find it, and placing links within this content to provide further related information for users to digest.

 Knowledge distribution. This provides a way for users to access the information, including FAQs, training videos, white

papers and manuals.

 Knowledge use. Once information is distributed to users, they need to put it into action.

Types of Decisions

Business analytics involves a diverse range of decisions, classified into various categories based on their
frequency, impact, and level within the organization. Understanding these types helps businesses select
appropriate analytical tools and approaches for each situation.

1. Decision Types based on Frequency and Impact:

Strategic Decisions: These are infrequent, high-impact decisions that define the long-term direction of the
organization. Examples include entering new markets, launching major product lines, or making significant
acquisitions. Analyzing historical trends, market forecasts, and competitor data play a crucial role in supporting
strategic decisions.

Strategic Decisions are usually infrequent e.g. annually but can have a huge impact on the organisation. For
example

 Select a Market
 Acquire a Company
 Recruit additional staff
The data used to drive these types of decision is usually found external to the organisation. e.g. market research
reports, press releases
Tactical Decisions: These are more frequent and have a medium-level impact on daily operations and resource
allocation. Examples include setting product prices, allocating marketing budgets, or adjusting production
schedules. Data analytics help optimize tactical decisions by identifying trends, analyzing costs, and evaluating
different options.
Tactical Decisions are more frequent e.g. weekly, monthly. Examples would be:

 Change product pricing

 Reschedule work
 Reorganise a department

The impact of these types of decision is of a medium nature in terms of risk to the organisation and impact on
profitability.

The data used to drive this type of decision is usually found in summaries of routine transactions e.g. sales orders
from the next level or classification.

Operational Decisions: These are highly frequent, low-impact decisions related to daily tasks and routine
operations. Examples include inventory management, scheduling employee shifts, or handling customer service
inquiries. Business rules and automated systems often support operational decisions, leveraging historical data
to guide routine actions.

Operational or Routine Decisions are usually very frequent e.g. hourly, daily but can have a lesser impact on the
organisation. For example

 How to answer a sales enquiry

 Approve a quotation
 Approve an Invoice

The data used to drive this decision type is usually prescribed or defined in the procedures and rules of the
organisation.

2. Decision Types based on Organizational Level:

Strategic Management: Decisions made at the highest level of the organization, setting the overall direction and
goals.
Tactical Management: Decisions made by middle-level managers to translate strategic goals into actionable
plans and allocate resources.
Operational Management: Decisions made by supervisors and front-line employees regarding daily operations
and routine tasks.
3. Decision Types based on Certainty:

Structured Decisions: Repetitive decisions with clear procedures and well-defined outcomes. These decisions
can be automated using business rules and historical data analysis.
Semi-structured Decisions: Involve some level of uncertainty and require human judgment alongside data
analysis and insights. These decisions are often supported by model-driven DSS.
Unstructured Decisions: Highly uncertain situations with limited data and no clear-cut solutions. These decisions
rely heavily on experience, intuition, and creative thinking alongside any available data insights.
By understanding these various types of decisions, businesses can effectively leverage business analytics tools
and techniques to make informed choices at different levels, leading to greater efficiency, profitability, and
overall success.

Decision Making Process

The decision-making process in business analytics is a structured approach for turning data into actionable
insights and informed choices. This process involves several key steps:

1. Define the Problem:

Clearly articulate the business issue or challenge that needs to be addressed.

Identify the stakeholders involved and their information needs.
Determine the desired outcomes and success metrics.
2. Gather Data:

Identify relevant internal and external data sources (sales figures, customer surveys, market trends).
Ensure data accuracy, completeness, and relevance to the problem at hand.
Consider ethical considerations and data privacy regulations.
3. Clean and Prepare Data:

Cleanse, format, and organize the data to ensure its validity and usefulness.
Handle missing values, outliers, and inconsistencies in the data.
Prepare the data for specific analytical techniques.
4. Analyze Data:

Utilize various data analysis techniques such as:

Descriptive statistics: Summarize key characteristics of the data.
Predictive modeling: Forecast future outcomes and identify trends.
Prescriptive analytics: Recommend optimal courses of action.
Choose the appropriate toolset based on the data type, complexity, and desired outcomes.
5. Visualize Insights:
Create clear and concise data visualizations such as charts, graphs, and dashboards.
Communicate complex data effectively to stakeholders with varying levels of technical expertise.
Highlight key findings and insights that support decision-making.
6. Develop Recommendations:

Based on the analysis and insights, formulate recommendations and solutions to address the identified
problem.
Consider feasibility, resource constraints, and potential risks associated with different options.
Tailor recommendations to different stakeholder groups.
7. Make Decisions and Take Action:

Stakeholders review recommendations, address questions, and make informed decisions.

Implement the chosen course of action, monitoring progress and measuring outcomes.
Communicate the decision and its rationale to relevant stakeholders.
8. Evaluate and Iterate:

Monitor the effectiveness of the implemented solution based on defined success metrics.
Evaluate the decision-making process itself, identifying areas for improvement.
Refine the approach and data used based on ongoing feedback and new information.
This iterative process ensures that data-driven insights are continuously integrated into decision-making,
leading to improved business performance in the long run.
Decision Support Systems