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Lecture 5

This document discusses types and applications of data warehouses. It describes several common types of data warehouses including financial, telecommunications, insurance, human resources, and exploratory. It then provides more details on financial, telecommunications, and insurance data warehouses. The document concludes by listing some typical applications of data warehouses like fraud detection, profitability analysis, direct marketing, credit risk prediction, and yield management.

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Saadia Mobeen
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
102 views

Lecture 5

This document discusses types and applications of data warehouses. It describes several common types of data warehouses including financial, telecommunications, insurance, human resources, and exploratory. It then provides more details on financial, telecommunications, and insurance data warehouses. The document concludes by listing some typical applications of data warehouses like fraud detection, profitability analysis, direct marketing, credit risk prediction, and yield management.

Uploaded by

Saadia Mobeen
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Virtual University of Pakistan

Data Warehousing
Lecture-5
Types & Typical Applications of DWH

Ahsan Abdullah
Assoc. Prof. & Head
Center for Agro-Informatics Research
www.nu.edu.pk/cairindex.asp
FAST National University of Computers & Emerging Sciences, Islamabad

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DWH-Ahsan Abdullah
Types & Typical Applications of
DWH

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DWH-Ahsan Abdullah
Types of data warehouse

 Financial
 Telecommunication
 Insurance
 Human Resource
 Global
 Exploratory

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DWH-Ahsan Abdullah
Types of data warehouse
Financial
 First data warehouse that an organization
builds. This is appealing because:

 Nerve center, easy to get attention.

 In most organizations, smallest data set.

 Touches all aspects of an organization, with a


common denomination i.e. money.

 Inherent structure of data directly influenced by the


day-to-day activities of financial processing.

Word of caution, will discuss, if and when time permits. 4


DWH-Ahsan Abdullah
Types of data warehouse
Telecommunication
Dominated by sheer volume of data.

Many ways to accommodate call level detail:


 Only a few months of call level detail,
 Storing lots of call level detail scattered over different
storage media,

 Storing only selective call level detail, etc.

 Unfortunately, for many kinds of processing, working at


an aggregate level is simply not possible.
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DWH-Ahsan Abdullah
Types of data warehouse
Insurance
Insurance data warehouses are similar to other
data warehouses BUT with a few exceptions.
Stored data that is very, very old, used for actuarial
processing.
Typical business may change dramatically over
last 40-50 years, but not insurance.
In retailing or telecomm there are a few important
dates, but in the insurance environment there are
many dates of many kinds.
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DWH-Ahsan Abdullah
Types of data warehouse
Insurance
Insurance data warehouses are similar to other
data warehouses BUT with a few exceptions.
Long operational business cycles, in years.
Processing time in months. Thus the operating
speed is different.
Transactions are not gathered and processed, but
are in kind of “frozen”.
Thus a very unique approach of design &
implementation.
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DWH-Ahsan Abdullah
Typical Applications
Impact on organization’s core business is to
streamline and maximize profitability.

 Fraud detection.
 Profitability analysis.
 Direct mail/database marketing.
 Credit risk prediction.
 Customer retention modeling.
 Yield management.
 Inventory management.

ROI on any one of these applications can justify


HW/SW & consultancy costs in most organizations.
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DWH-Ahsan Abdullah
Typical Applications
Fraud detection

 By observing data usage patterns.


 People have typical purchase patterns.
 Deviation from patterns.
 Certain cities notorious for fraud.
 Certain items bought by stolen cards.
 Similar behavior for stolen phone cards.

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DWH-Ahsan Abdullah
Typical Applications
Profitability Analysis
 Banks know if they are profitable or not.
 Don’t know which customers are profitable.
 Typically more than 50% are NOT profitable.
 Don’t know which one?
 Balance is not enough, transactional
behavior is the key.
 Restructure products and pricing strategies.
 Life-time profitability models (next 3-5 years).
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DWH-Ahsan Abdullah
Typical Applications
Direct mail marketing

 Targeted marketing.
 Offering high bandwidth package NOT to all
users.
 Know from call detail records of web surfing.
 Saves marketing expense, saving pennies.
 Knowing your customers better.
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DWH-Ahsan Abdullah
Typical Applications
Credit risk prediction

 Who should get a loan?


 Customer segregation i.e. stable vs. rolling.
 Qualitative decision making NOT subjective.
 Different interest rates for different
customers.
 Do not subsidize bad customer on the basis
of good.

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DWH-Ahsan Abdullah
Typical Applications
Yield Management
 Works for fixed inventory businesses.
 The price of item suddenly goes to zero.
 Item prices vary for varying customers.
 Example: Air Lines, Hotels etc.
 Price of (say) Air Ticket depends on:
 How much in advance ticket was bought?
 How many vacant seats were present?
 How profitable is the customer?
 Ticket is one-way or return?
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DWH-Ahsan Abdullah
Recent Application
Agriculture Systems
 Agri and related data collected for decades.
 Metrological data consists of 50+ attributes.
 Decision making based on expert judgment.
 Lack of integration results in underutilization.
 What is required, in which amount and
when?

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DWH-Ahsan Abdullah

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