Information Systems Program
Module 2
Introduction to Databases and DBMSs
Lesson 6: Overview of Data Warehouse
Processing
Lesson Objectives
• List three levels of decision making and at least
one decision on each level
• Define data warehouse
• Explain at least one characteristic different for
transaction processing versus business
intelligence processing
Information Systems Program
Decision Making Hierarchy
Decision making hierarchy Typical decisions
Identify new markets,
Top
(strategic) choose store locations
Middle
Choose suppliers,
(tactical) forecast sales
Lower Resolve order delays,
(operational)
schedule employees
Information Systems Program
Database Support
Decision making hierarchy Database support
External data sources and
summarized, tactical databases
Top
Integrated operational
(strategic)
databases
Middle
(tactical) Individual operational
databases
Lower
(operational)
Operational databases
Information Systems Program
Data Warehouse Characteristics
• Essential part of infrastructure for business
intelligence
• Logically centralized repository for decision
making
– Populated from operational databases and external
data sources
– Integrated and transformed data
– Optimized for reporting
Information Systems Program
Comparison of Environments
• Transaction processing
– Primary data in operational databases
– Large volumes of transactions with relatively small
amounts of data per transaction
– Some reporting requirements for operations
• Business intelligence processing
– Secondary data from operational databases
– Substantial processing for transformations and
integration
– Large volumes of data for reporting
Information Systems Program
Summary
• Data warehouse processing supports tactical and
strategic decision making
• Business intelligence processing evolution since
mid 1990s
• Different DBMS features for business intelligence
support
Information Systems Program