Data Warehousing and Business Analysis · Data Mining

Data Warehousing Components

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Data Warehousing Components

A Data Warehouse (DW) is a subject-oriented, integrated, time-variant and non-volatile collection of data that supports management's decision-making (Inmon's definition).

Important

Inmon's four characteristics and the component diagram are asked almost every year (7-10 marks). Learn the four words with one example each.

NoteOLTP vs DW in one line

OLTP runs the day-to-day business with fast, small transactions. A data warehouse analyses the business with large, historical queries.

1. Four Key Characteristics

Property Meaning Example
Subject-oriented Organized around business subjects, not applications Customer, Sales, Product (not the billing software)
Integrated One unified format from many sources M/F, Male/Female, 0/1 all become Male/Female
Time-variant Keeps history (5-10 years), every row time-stamped Sales 2020 vs 2021 vs 2022
Non-volatile Read-only after load: no update or delete, only refresh A loaded sales record is never changed

The warehouse only grows by appending new batches, old data is never modified:

DWt+1=DWt∪ΔDtDW_{t+1} = DW_t \cup \Delta D_t

where ΔDt\Delta D_t is the new batch loaded at time tt.

2. Major Components

MermaidDiagram
Rendering diagram…

Source systems

Internal: ERP, CRM, HRM, legacy databases. External: market data, web logs, surveys.

3. Warehouse vs Operational DBMS

Feature Operational DBMS Data warehouse
Purpose Run the business Analyse the business
Data Current, detailed Historical, summarized
Updates Continuous insert, update, delete Periodic batch refresh
Queries Simple, predefined Complex, ad hoc
Users Thousands (clerks) Few (managers, analysts)
Size GB TB to PB
Exam TrapTypical questions
  • Draw and explain the data warehouse component diagram (7-10 marks, very frequent).
  • Explain Inmon's four characteristics with examples.
  • Why is a staging area needed? (2-3 marks)
  • Differentiate operational database and data warehouse (5 marks).

Frequently Asked Questions

QWhat is a data warehouse?

A subject-oriented, integrated, time-variant and non-volatile collection of data used to support management decisions (Inmon).

QExplain "subject-oriented" and "non-volatile".

Subject-oriented means the data is organized around subjects such as Customer or Sales instead of applications. Non-volatile means the data is not changed or deleted after loading; it is only refreshed by appending new data.

QWhat is a data mart?

A smaller, department-specific subset of the warehouse (for example Sales or Finance) that serves one group of users.

QWhat is the role of the metadata repository?

It stores data about data: source mappings, transformation rules, refresh schedules and ownership. ETL and query tools use it to work correctly.

QWhat is ETL?

Extract, Transform, Load: pulling data from sources, cleaning and converting it, and loading it into the warehouse.

QWhat is the difference between OLTP and a data warehouse?

OLTP handles many short, current, detailed transactions. A warehouse handles fewer, long, analytical queries over historical, summarized data.

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