ABSTRACT
processing of this data into information
Organisations are today suffering
from a malaise of data overflow. The
developments in the transaction
processing technology has given rise to a
situation where the amount and rate
ofdata capture is very high, but the
that can be utilised for decision making,
is not developing at the same pace. Data
warehousing and data mining (both data
& text) provide a technology that
enables the decision-maker in the
corporate sector/govt. to process this
huge amount of data in a
 The data warehouse allows the
storage of data in a format that facilitates
its access, but if the tools for deriving
information and/or knowledge and
presenting them in a format that is useful
for decision making are not provided the
whole rationale for the existence of the
warehouse disappears. Various
technologies for extracting new insight
from the data warehouse have come up
which we classify loosely as "Data
Mining Techniques".
Our paper focuses on the need
for information repositories and
reasonable amount of time, to extract discovery of knowledge and hence the
intelligence/knowledge in a near real overview of, the so hyped, Data
time. Warehousing and Data Mining.

excellence. Information technology (IT)

I N T R O D U C T I O N:- tools that are oriented towards

“Knowledge [no more knowledge processing can provide the

Information] is not only power, but edge that organizations need to survive

also has significant competitive and thrive in the current era of fierce

advantage” competition. The increasing competitive

pressures and the desire to leverage

Organizations have lately information technology techniques have

realized that just processing transactions led many organizations to explore the

and/or information’s faster and more benefits of new

efficiently, no longer provides them with

a competitive advantage vis-à-vis their
competitors for achieving business

emerging technology – viz. "Data
Warehousing and Data Mining". What is
needed today is not just the latest and
updated to the nano-second information,
but the crossfunctional information that
can help decisions making activity as
"on-line" process.
Evolution of Information Technology
Tools
The evolution of the information
systems characterize the evolution of
systems from data maintenance systems,
to systems that transform the data into
"information" for use in the decision
making process. These systems
supported the information acquisition
from the database of transactional data.
The managerial knowledge acquisition
function is/was not directly supported by
these systems . The evolution of new
patterns in the changing scenario could
not be provided by these systems
directly, the planner was supposed to do
this from experience.

Warehouse with a database

Data warehousing is an
One thing that remains information infrastructure based on
constant , especially in corporate detail data that supports the
world , is “ Change” decisionmaking process and provides
businesses the ability to access and
And, these days, change is analyze data to increase an
occurring at an ever-increasing rate. A organization's competitive advantage.
key challenge is implementing an Data warehousing is a process,
information infrastructure that allows not an off-the-shelf solution you buy, but
your company to rapidly respond to hardware--database and tools integrated
change. One solution to this challenge is into an evolving information
the data warehouse. infrastructure--that changes with the
dynamics of the business.
What is Data-Warehousing ?

The data warehouse makes an * Data in a warehouse is not

attempt to figure out "what we need", updates or changed in any way, but is
before we know we need it. only loaded and accessed later on

What it actually is?

* A data warehouse stores
current and historical data
* This data is taken from various, * Data is organized according to
perhaps incompatible, sources and stored subject instead of application. In general
in a uniform format a database is not a data warehouse unless
* Several tools transform this it has the following two features:
data into meaningful business It
 collects information from a
information for the purpose of number of different disparate sources
comparisons, trends and forecasting 5 and is the place where this disparity is
reconciled, and information.
Conceptually, a Data Warehouse looks like this:
Information Sources
Always include the
operational systems which form the
backbone of day-to-day activities. It is
these systems which have traditionally
provided management information to
support decision making.
Decision Support Tools
Are used to analyze
information stored in the warehouse,
typically to identify trends and new
business opportunities..
The Data Warehouse
core Itself is the bridge between the
operational systems and the decision
support tools. It holds a copy of much of
the operational system data in a logical
structure which is more conducive to
analysis. The Data Warehouse, which
will be refreshed in scheduled bursts
from operational systems and from
the relevant external data sources, provides a
single, consistent view of corporate data,
leaving operational systems
Data – Warehouse Functions
The main function behind a data
warehouse is to get the enterprise-wide
data in a format that is most useful to
end-users, regardless of their locations. in the figure below), but all are
Data warehousing is used for: characterised by a handful of the
• Increasing the speed and following key components:
flexibility of analysis. A
 data model to define the
• Providing a foundation for warehouse contents.
enterprise-wide integration and A
 carefully designed
access. warehouse database, whether

• Improving or re-inventing hierarchical, relational, or

business processes. multidimensional. While choosing a

• Gaining a clear understanding of DBMS it must be kept in view that the

customer behavior. database management system should be

powerful enough to handle huge amount

Data Warehouse Architecture of data running up to terabytes.

Each implementation of a data A

 front end for Decision Support

warehouse is different in its detailed System (DSS) for reporting and for

design (a schematic high-level of the structured and

architecture and its components is given unstructured analysis.

Data Mining
Data base mining or Data mining invent new facts and to uncover new
(DM) (formally termed Knowledge relationships previously unknown even
Discovery in Databases – KDD) is a to experts thoroughly familiar with the
process that aims to use existing data to data. It is like extracting precious metal
(say gold etc.) and/or gems, hence the The data mining process is
term “mining”, It is based on filtration diagrammatically exemplified in Figure
and assaying of mountain of data “ore” below
in order to get “nuggets” of knowledge.

Data Mining with Data Warehousing found necessarily by merely querying or

processing data or metadata in the data
· The goal of a data warehouse is warehouse.
to support decision making with data. Data Mining as a Part of the
· Data mining can be used in Knowledge Discovery Process
conjunction with a data warehouse to
help with certain types of decisions. · Knowledge Discovery in
· Data mining can be applied to Databases, frequently abbreviated as
operational databases with individual KDD, typically encompasses more than
transactions. data mining.
· To make data mining more · The knowledge discovery
efficient, the data warehouse should process comprises six phases:
have an aggregated or summarized Data selection ,Data about specific
collection of data. items or categories of items, or from
· Data mining helps in extracting stores in a specific
meaningful new patterns that cannot be
region or area of the country, may be
selected.
Data cleansing process then may correct
invalid zip codes or eliminate records
with incorrect
phone prefixes.
Goals of Data Mining
The goals of data mining fall into
the following classes:
Prediction: Data mining can show
how certain attributes within the data
will behave in the future.
Identification: Data patterns can be
used to identify the existence of an item,
an event, or an activity.
Enrichment typically enhances the data
with additional sources of information.
Data transformation and encoding
may be done to reduce the amount of
data.
Classification: Data mining can
partition the data so that different classes
or categories can be identified
based on combinations of parameters.
Optimization: One eventual goal of
data mining may be to optimize the use
of limited resources such as time, space,
money, or materials and to maximize
output variables such as sales or profits
under a given set of constraints.
CONCLUSION
 A data warehouse takes improves worker/management
the organizational knowledge and productivity; spares the
operationaldata,historical data operational database from ad-hoc queries
and external data with the resulting performance
a) consolidates it into a degradation and clears the legacy
separately designed database (which can database system, while moving the
either be corporate system architecture forward.
relational or multi-dimensional in With the incorporation of new
nature) data delivery and presentation
b) manages it into a format that is techniques, like hypertext mark up
optimised for end users to access and language (HTML), Open Database
analyse. Connectivity (ODBC) etc. the database
When a data warehouse has been mining (Data & Text) operation has
constructed, it provides a complete gained wide spread recognition as a
picture of the enterprise. It provides an viable tool for business intelligence
unparalleled opportunity to the gathering. Advances in the document
management to learn about their mining technology (database mining of
customers. free form text/data, in contrast to the
The data warehouse technology “classical” approach to data mining of
together with online transaction fixed length records) are making the data
processing and data mining, allows the mining technology more powerful.
management to provide better customer Last but never the least, the
service, create greater customer loyalty Internet has emerged as the largest data
and activity, focus customer acquisition warehouse of unstructured and free form
and retention of the most profitable data. The new technologies are geared
customer, increase revenue, reduce towards mining this great data
operating cost; provides tools that warehouse.
facilitate sounder decision making;