Module 1: Data Warehousing Fundamentals

TE – D – DWM
Prof. Smruti Vyavahare
Assistant Professor
Dept. of Computer Engineering,
SIES Graduate School of Technology

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 Contents

• Course Structure & Syllabus

• Study Material
• Course Objectives & Course Outcomes
• Introduction to Data Warehouse
• Data warehouse architecture
• Data warehouse versus Data Marts
• E-R Modeling versus Dimensional Modeling
• Information Package Diagram
• Data Warehouse Schemas; Star Schema, Snowflake Schema, Factless Fact Table, Fact Constellation
Schema.
• Update to the dimension tables.
• Major steps in ETL process
• OLTP versus OLAP
• OLAP operations: Slice, Dice, Rollup, Drilldown and Pivot.

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Course Structure & Syllabus

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Course Structure & Syllabus

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Course Structure & Syllabus

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Course Structure & Syllabus

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Study Material

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Course Objectives & Course Outcomes

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🔹 Parameter Operational System Informational System

Archived, derived,
Data Contents Current values
summarized

Optimized for fast Optimized for complex

Data Structure
transactions analysis

High (accessed all the Medium to low (only

Access Frequency
time) when needed)

Access Type Read, update, delete Mostly read-only

Repetitive, predictable Random, ad hoc,

Usage
tasks problem-solving

Seconds to minutes
Response Time Sub-seconds (very fast)
(slower but deeper)

Large number (clerks, Small number

Users
staff) (managers, analysts)
Operational System Data Warehouse (DSS) Explanation
Operational = task-focused (like
Application-oriented Subject-oriented billing), DSS = topic-focused (like sales
performance)
One is for working, one is for
Used to run business Used to analyze business
thinking/deciding
Ops stores raw data, DW stores
Detailed data Summarized & refined
cleaned-up summaries

Ops is always current, DW is like a

Current & up to date Snapshot (at a time)
snapshot or history
Ops data is separate, DW combines
Isolated data Integrated data
everything
Ops = same task daily; DW = on-
Repetitive access Ad-hoc access
demand, custom queries

Ops used by employees; DW used by

Clerical user Manager/Knowledge user
decision-makers

Ops = speed matters; DW = accuracy

Performance sensitive Performance relaxed
& depth matter
DW handles big analysis, not just few
Few records accessed at once Millions at once
transactions
Real-time access Batch (bulk) update DW updates in batches, not instantly
DW may duplicate some data for
No redundancy Redundancy present
performance
100MB–100GB 100GB–few TB DW = huge storage (can be terabytes)
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Feature Real-Time Application Example
Amazon uses its data warehouse to
Database designed for analytical tasks analyze customer buying patterns to
recommend products.
Flipkart pulls data from orders, customer
Data from multiple applications reviews, logistics, and support systems
into one warehouse.
Marketing managers at Swiggy explore
Easy to use and supports long interactive sessions customer order trends during campaigns to
measure success.

Banks use data warehouses to analyze

Read-intensive data usage
customer transactions for fraud detection.

HR managers at Infosys use dashboards

Direct user interaction without IT help to track employee performance without
needing IT support.
Big Bazaar loads sales data every night to
Content updated periodically and stable
analyze store performance.
Netflix stores historical viewing data to
Includes current and historical data understand viewer behavior and improve
recommendations.
Zomato can quickly analyze how many
Ability to run queries and get results online orders were placed by city and time slot
during peak hours.
Sales teams at Tata Motors can generate
Users can initiate reports region-wise sales reports without waiting
for IT teams.
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1. Provides an integrated and total view of the enterprise
Combines data from different departments (sales, HR, finance, etc.) into one place.
Example: A company like Tata Consultancy Services (TCS) uses a data warehouse to see
complete data across global offices in one unified dashboard.

2. Makes the enterprise’s current and historical information easily available for strategic
decision-making
Stores both recent and past data to help leaders make informed choices.
Example: Nestlé uses historical sales data to decide which products to promote during festive
seasons.

[Link] decision-support transactions possible without hindering operational systems

Allows deep data analysis without slowing down daily operations (like order processing).
Example: While Flipkart runs millions of daily transactions, its warehouse separately analyzes
data for demand forecasting.

4. Renders the organization’s information consistent

Data from different systems is cleaned and standardized for accuracy and consistency.
Example: If the HR system uses “M” and “Male,” both are treated uniformly in the warehouse
to
maintain consistency.

5. Presents a flexible and interactive source of strategic information

Users can query the system, generate reports, or perform data visualization easily.
Example: Marketing analysts at Zomato use dashboards to track user behavior and food trends
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A Data Warehouse is a central repository where data from multiple sources is stored, integrated, and
analyzed to support decision-making.

Processing Requirements in the New System

1. Running of simple queries and reports against current and historical data:
Users should be able to easily retrieve both recent and old data to generate insights or reports.
Example: Sales trends over the last 5 years.

2. Ability to perform “what if” analysis in many different ways:

Users can simulate different scenarios.
Example: “What if we increase product prices by 10%?”

3. Ability to query, step back, analyze, and then continue the process to any desired length:
The system supports interactive exploration of data — users can drill down, go back, and
explore further.
Useful for deep data analysis.

4. Ability to spot historical trends and apply them in future interactive processes:
The system identifies patterns over time (e.g., seasonal trends) and uses them in future
planning or decision models.

“This new environment is known as the Data Warehouse environment”

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 Definition of Data Warehouse
"A Data Warehouse is a subject oriented, integrated, nonvolatile, and time variant collection of data in
support of management’s decisions."
— Bill Inmon (Father of Data Warehousing)

Features of Data Warehouse

1. Subject-Oriented Data
Data is organized around key business subjects or areas like sales, finance, customer, product a data
warehouse focuses on analyzing specific topics for decision-making.
Example: All data related to customers — their purchases, feedback, history — is grouped for analysis.

2. Integrated Data
Data from multiple sources (like ERP, CRM, spreadsheets) is cleaned, transformed, and stored in a
unified format.
Example: Customer IDs from different departments are standardized into one format.

3. Time-Variant Data
Data is stored with a time dimension (daily, monthly, yearly) to allow analysis over a long period.
It enables trend analysis, forecasting, and comparisons.
Example: Sales reports over the past 5 years can be compared to identify seasonal trends.

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4. Non-Volatile Data
Once data enters the warehouse, it is not frequently updated or deleted.
Example: A sales transaction from 2022 remains unchanged and available for future analysis.

5. Data Granularity
It refers to the level of detail of the data — from highly detailed (transaction-level) to summarized
(monthly or yearly reports).
Data warehouses usually store data at multiple levels of granularity.
Example: You can view both individual customer purchases and total monthly revenue.

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Features of data warehouse
Term Meaning
Focused on topics like sales, customers,
Subject-oriented
profits, etc.
Combines data from many sources (like
Integrated
billing + CRM + inventory)
Stores historical data
Time-variant
(weekly/monthly/yearly)
Data doesn’t change once entered – no
Non-volatile
real-time updates
Term Meaning
A large storage system where data from
Data Warehouse (DW) many sources is collected, cleaned, and
organized.
A system that uses data (from DW +
Decision Support System (DSS) other tools) to help managers make
decisions.
Term Meaning
A general system that helps in managing,
Informational System analyzing, or displaying information, not
for daily transactions.
A type of informational system that is
specifically made to help managers take
Decision Support System (DSS)
better decisions using data analysis,
reports, trends, etc.
Feature Informational System Decision Support System

Purpose Provide useful Help in decision-making

information

Users Managers, analysts, Mostly top-level

executives managers

Data Summarized, not always Focused on analyzing and

analytical comparing data

Weekly sales report, What product to launch

Example customer feedback next based on trends?
system

Term Is it broader? Includes what?

DSS, MIS, reporting tools,
Informational System ✅ Yes (Broad)
etc.
A special type of
DSS ❌ No (Specific) informational system
focused on decisions
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1. Data Sources
It including:
Operational Systems: Databases used in day-to-day business operations like ERP, CRM, billing systems, etc
Flat Files: Data stored in spreadsheets, CSV files, logs, etc.
These systems are typically OLTP (Online Transaction Processing) systems.

2. Staging Area
This is where ETL (Extract, Transform, Load) happens:
Extract data from sources.
Transform data (cleaning, formatting, merging, etc.).
Load the processed data into the data warehouse.
This stage ensures data quality and consistency before it's stored permanently.

3. Warehouse
The central component where data is stored and managed. It includes:
Metadata: Data about the data (e.g., source, time stamp, format).
Summary Data: Aggregated or pre-calculated data (e.g., monthly sales totals).
Raw Data: Detailed data from the source systems (e.g., individual transactions).
This enables both high-level analysis and deep dives into raw data.

4. Users
These are the end-users who consume the data using different tools for various
purposes:
Analytics: Advanced analysis, dashboards, data visualization.
Reporting: Standardized reports for business operations.
These outputs
Mining: support techniques
Data mining decision-making at tactical
to discover and trends,
patterns, strategicand
levels.
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1. Bottom Tier: Data Source Layer
This is where the data originates from.
• Operational Databases: These are the existing databases used for day-to-day business operations
(e.g., ERP, CRM).
• External Sources: These can be flat files, cloud data, or third-party data providers.
• ETL Process (Extract, Clean, Transform, Load, Refresh):
Extract: Pulls raw data from operational and external sources.
Clean: Removes errors and inconsistencies.
Transform: Converts data into a usable format.
Load: Transfers the transformed data into the data warehouse.
Refresh: Updates the data periodically.

2. Middle Tier: OLAP Server

This tier acts as an interface between stored data and end-user tools.
• Data Warehouse: The central repository where cleaned and transformed data is stored.
• Data Marts: Subsets of the data warehouse, created for specific departments (e.g., sales, finance)
• OLAP Servers (Online Analytical Processing): Used for fast querying, multidimensional analysis,
and
summarizing large datasets.
• Metadata Repository: Stores information about data (such as source, structure, transformation rules)
and is used for monitoring and administration.

[Link] Tier: Front-End Tools

This tier allows users to access and analyze the data.
• Query/Report Tools: For generating reports and querying the database.
• Analysis Tools: Visual dashboards and data visualization tools.
• Data Mining Tools: For discovering hidden patterns and insights from large datasets.
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 Data Mart

A Data Mart is essentially a smaller, more focused version of a data warehouse. It’s tailored to meet the
needs of a specific group within an organization.
Key Characteristics:
Subset of a Data Warehouse: It contains a portion of the data warehouse, usually relevant to a specific
business area.
Department-Specific: Designed for use by a particular department like Marketing, Sales, HR, or
Finance.
Department-Controlled: Typically managed and maintained by the department that uses it.
Fewer Data Sources: Pulls data from a limited number of sources, unlike a full data warehouse which
integrates data from across the organization.
Smaller and More Agile: Because of its limited scope, it’s easier to manage and adapt to changes.

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Data warehousing design strategies or Approaches for building data warehouse

Top-Down Approach
The Top-Down Approach, introduced by Bill Inmon, is a method for designing data warehouses that starts
by building a centralized, company-wide data warehouse. It ensures data consistency and provides a strong
foundation for decision-making.
Working of Top-Down Approach
Central Data Warehouse: The process begins with creating a comprehensive data warehouse where data
from various sources is collected, integrated, and stored. This involves the ETL (Extract, Transform, Load)
process to clean and transform the data.
Specialized Data Marts: Once the central warehouse is established, smaller, department-specific data
marts (e.g., for finance or marketing) are built. These data marts pull information from the main data
warehouse, ensuring consistency across departments.

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Bottom-Up Approach
The Bottom-Up Approach, popularized by Ralph Kimball, takes a more flexible and incremental path to
designing data warehouses. Instead of starting with a central data warehouse, it begins by building small,
department-specific data marts that cater to the immediate needs of individual teams, such as sales or finance.
These data marts are later integrated to form a larger, unified data warehouse.

Working of Bottom-Up Approach

• Department-Specific Data Marts: The process starts with creating data marts for individual
departments or specific business functions. These data marts are designed to meet immediate data analysis and
reporting needs, allowing departments to gain quick insights.

• Integration into a Data Warehouse: Over time, these data marts are connected and consolidated
to create a unified data warehouse. The integration ensures consistency and provides a comprehensive view of
the organization’s data.

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Difference between Top-Down Approach & Bottom-Up Approach

Feature Top-Down (Inmon) Bottom-Up (Kimball)

First Step Build EDW Build Data Marts

Time to Implement Longer Faster

Integration Level High Medium

Initial Cost High Low

Suitable For Strategic enterprise Departmental focus

vision

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 Metadata
Metadata is "data about the data". In the context of a data warehouse, it provides descriptive information
about the warehouse's data contents, structure, source, and processes.
1. Metadata means "data about the data“:
Metadata gives context to raw data. It explains things like:
• What each column means (e.g., “DOB” = Date of Birth)
• Where the data comes from
• What format it is in (e.g., date, number, text)
• How often it is updated

2. Yellow Pages Analogy:

• Yellow Pages tells what business is where and what it does. Similarly, metadata tells you what
data is where in the data warehouse and what it means.

3. Directory Function
• Metadata helps navigate, access, and manage the contents of a data warehouse, especially
useful when data volume is large and complex.

4. Architectural Role:
• Metadata is a core architectural component of a data warehouse—it supports data integration, access,
governance, and quality control.

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 Types of Metadata
1. Operational Metadata
It contains information about the operational data sources, the systems that provide data to the
warehouse.
• File names
The examples are: and formats (CSV, Excel,
etc.)
• Data refresh schedules
•Helps
Load
in times and
tracking history
and logs the source data and its movement into the
managing
warehouse.
2. Extraction and Transformation Metadata
• Data
It includes : extraction from source systems: how, when, and how often data is pulled.
• Business rules applied during extraction.
• Data transformations performed before storing in the warehouse.
The examples are:
• Extraction methods (API, ETL tools)
• Frequency (daily, hourly, real-time)
• Rules like converting formats, removing duplicates, or merging tables
It helps in documenting the entire ETL (Extract, Transform, Load) process for auditing,
debugging, and ensuring data accuracy.
3. End-user Metadata
This is the user-friendly metadata that acts like a "navigational map" of the data warehouse for
business users.
The examples are:
• Data dictionary (table/column names with business descriptions)
• Report labels and definitions
• Tooltips in dashboards
It enables end users (like analysts or managers) to easily find, understand, and use data for
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 ER-Modelling VS Dimensional-Modelling
1. Usage
• E-R Modelling:
1. Supports OLTP – used for daily transactions like banking, bookings, etc.
2. It focuses on data integrity and efficiency in updating data.
3. Focus = data integrity (accuracy) and efficiency in updates.
• Dimensional Modelling:
1. Supports OLAP – used for data analysis, business intelligence, reporting.
2. Optimized for data retrieval and queries.
3. Focus = fast data retrieval and queries

2. Structure
• E-R Modelling:
1. Entities (tables) are connected using multiple joins (often normalized).
• Dimensional Modelling:
Still uses joins, but mostly between fact table(numerical data like sales amount) and dimension
tables(descriptive data like time, location, customer) in a simpler way (star/snowflake schema).

3. Data Organization
• E-R Modelling:
Normalized: Data is split into smaller tables to reduce redundancy.
• Dimensional Modelling:
Denormalized: Data is often repeated to simplify queries and improve performance.

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4. Redundancy
• E-R Modelling:
Removes redundancy for consistency
• Dimensional Modelling:
Allows redundancy for speed

5. Modification Impact
• E-R Modelling:
If change the model -> Application may break
• Dimensional Modelling:
More flexible and extensible->can add new data elements easily without breaking
existing designs.

6. Adaptability
• E-R Modelling:
Fragile(easily broken, damaged, or destroyed) if query patterns change(structure is
complex).
• Dimensional Modelling:
More robust(means strong, reliable, and able to handle changes or problems
without breaking)—design is stable even if reporting/query needs evolve.

7. Complexity for Users

• E-R Modelling:
Complex for business users (too technical lots of joins).
• Dimensional Modelling:
Easy and user-friendly, especially for analysts and decision-makers.
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Feature ER Modeling Dimensional Modeling

Used for designing analytical

Used for designing operational
Purpose databases (OLAP / Data
databases (OLTP)
Warehouse)

Captures entities, attributes, and Organizes data into facts and

Focus
relationships dimensions for analysis

Current, real-time transactional

Data Type Historical + summarized data
data
De-normalized (Star / Snowflake
Structure Normalized (reduces redundancy)
schema)

Main Components Entities, Attributes, Relationships Fact tables, Dimension tables

Banking system, college database, Business Intelligence, sales analysis,

Use Case
inventory system trend reporting

“Student” entity linked to “Course” “Sales Fact” table linked to “Time,

Example
entity Product, Region” dimensions

Simple, short transactions (Insert, Complex queries for reporting and

Query Type
Update, Delete) analysis
Data consistency and efficiency for Fast query performance for
Performance Goal
transactions reporting
 Dimensional-Modelling
Dimensional modelling is a data structure technique used to design databases that support efficient
querying and reporting. It’s especially used in data warehouses.

1. Optimized for Data Warehousing

• Data structure technique optimized for data storage in a Data Warehouse.
• It is designed to store historical and analytical data that supports decision-making, not real-time
updates.

2. Faster Data Retrieval

• Optimizes the database for faster retrieval of data.
• It organizes data in a denormalized structure (fewer joins), making it faster to query, especially for
large datasets.
• Beneficial for dashboards, and data analysis.

3. Designed for Analytical Use

• A dimensional model in data warehouse is designed to read, summarize, analyze numeric information.
• It’s suitable for:
1. Reading and aggregating data (e.g., total sales by month)
2. Summarizing across dimensions (e.g., sales by region, by product)
3. Analyzing trends (e.g., monthly performance)

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4. Developed by Ralph Kimball
• Developed by Ralph Kimball and it consists of 'fact' and 'dimension' tables.
• Fact Tables: Store measurable data (e.g., sales, profit, quantity).
• Dimension Tables: Store context about facts (e.g., customer, time, product, region).

Example (Retail Data Warehouse):

Sales_Fact –> sale_id, product_id,

Fact Table
date_id, total_amount

Product_Dim, Date_Dim,
Dimension Table
Customer_Dim

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 Information Package Diagram (IPD)

1. An Information Package Diagram (IPD) is a logical design tool used in dimensional modeling
to:
•Identify business dimensions (descriptive data)
•Identify facts or metrics (numerical data)
It is the foundation step in designing a data warehouse schema like star schema or snowflake
schema.

2. It helps structure the dimensions (e.g., time, customer, product) and the metrics/facts (e.g., sales,
quantity, profit) that are to be analyzed.

3. Before designing database tables, use an IPD to plan out.

4. IPD defines the structure of a dimensional model.

5. Every IPD includes measurable metrics (facts) alongside their corresponding dimensions.

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1. Star Schema
•Central fact table connects directly to several dimension tables.
•Dimension tables are denormalized (flat, no sub-tables).
•Simple and fast to query.
Mainly used for: Quick report generation.
Example are:
•Fact table: Sales_Fact (sale_id, date_id, product_id, amount)
•Dimensions: Product_Dim, Customer_Dim, Date_Dim

2. Snowflake Schema
•Extension of the star schema.
• Dimension tables are normalized (split into sub-tables).
• Uses less storage but is slower to query.
Mainly used for: Saving space and reducing redundancy.
Example are:
• Product_Dim might link to Category_Dim and Supplier_Dim.

3. Fact Constellation Schema (Galaxy Schema)

• Contains multiple fact tables that share common dimension tables.
• Useful for complex systems with more than one business process.
Mainly used for: Large enterprises with varied operations.
Example are:
• Fact tables: Sales_Fact, Returns_Fact
• Shared dimensions: Customer_Dim, Date_Dim

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Major Steps in ETL Process

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Major Steps in ETL Process

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 OLTP (Online Transaction OLAP (Online Analytical
Feature
Processing) Processing)

Handles day-to-day Handles analysis, reporting,

Purpose
transactions decision making

Users Cashiers, clerks, front-line staff Managers, analysts, executives

High volume of small

Data Volume High volume of historical data
transactions
Very fast processing Relatively slow (because it
Speed
(milliseconds) scans large data)

Denormalized (fewer tables,

Normalized (many tables,
Data Storage allows redundancy for faster
avoids redundancy)
reporting)

Insert, Update, Delete Complex queries, aggregations,

Operations
(transactional) summaries

“How many people bought

Examples of Questions “Who bought product X?”
product X last month?”

ATM, Online shopping, Railway Business reports, Sales trends,

Example System
booking Data warehouse
 OLAP Operations
OLAP stands for Online Analytical Processing Server. It is a software technology that allows users to
analyze information from multiple database systems at the same time. It is based on multidimensional
data model and allows the user to query on multi-dimensional data (eg. Delhi -> 2018 -> Sales data).
OLAP databases are divided into one or more cubes and these cubes are known as Hyper-cubes.

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1. Drill down: In drill-down operation, the less detailed data is converted into highly detailed data. It can
be done by:

• Moving down in the concept hierarchy

• Adding a new dimension

In the cube given in overview section, the drill down operation is performed by moving down in the
concept hierarchy of Time dimension (Quarter -> Month).

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 [Link] up: It is just opposite of the drill-down operation. It performs aggregation on the OLAP cube.
It can be done by:

•Climbing up in the concept hierarchy

•Reducing the dimensions

In the cube given in the overview section, the roll-up operation is performed by climbing up in the concept
hierarchy of Location dimension (City -> Country).

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 [Link]: It selects a sub-cube from the OLAP cube by selecting two or more dimensions. In the
cube given in the overview section, a sub-cube is selected by selecting following dimensions with
criteria: Location = "Delhi" or "Kolkata"

•Time = "Q1" or "Q2"

•Item = "Car" or "Bus"

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4. Slice: It selects a single dimension from the OLAP cube which results in a new sub-cube creation. In
the cube given in the overview section, Slice is performed on the dimension Time = "Q1".

5. Pivot: It is also known as rotation operation as it rotates the current view to get a new view of the
representation. In the sub-cube obtained after the slice operation, performing pivot operation gives a new
view of it.

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Thank You!
(smrutiv@[Link])

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