IM S5028. Data Warehouse for CRM. Presentation structure. Ilona Jagielska 1
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1 Data Warehouse for CRM Introduction to data warehousing Data Warehouse for CRM Topics Introduction to data warehousing (today) Data warehouse modelling What works for CRM? Modelling data for Customer Data Warehouse. 2 Presentation structure Data warehouse definitions Data warehouse architectures Data warehousing process Data warehouse and analytical CRM 3 Ilona Jagielska 1
2 Technologies for Analytical CRM Data warehouse Analysis and delivery systems: OLAP, query and reporting Data Mining 4 Architecture for Analytical CRM customer contact points Retrospective analysis tools OLAP Query Reporting Customer Data Warehouse Operational systems and external info Prediction and discovery Data Mining 5 Data warehouse: definitions Definition1 Data Warehouse is an integrated and consistent store of subject-oriented data that is obtained from a variety of sources and formatted into a meaningful context to support decision-making in an organization 6 Ilona Jagielska 2
3 Need for Data Warehousing Information gap : data -- information most systems are developed to support operational (transaction) processing not decision making 7 Operational vs. Informational Systems Operational systems support transaction processing, example: order processing, reservation system Transaction processing captures, stores and manipulates data to support daily operations of business Informational systems support decision making, example: sales trend analysis, customer profile, customer segmentation analytical Information processing is the analysis of data to support decision making Data warehouse is a database designed specifically to facilitate analytical information processing 8 Definitions Definition 2 a subject-oriented, integrated, timevariant, and non-volatile collection of data* used in support of management s decisions Inmon and Hackathorn (1994) * (high quality data) 9 Ilona Jagielska 3
4 Data warehouse - subject oriented The data warehouse is organised around key subjects (high level entities) of the enterprise Eg.customers, students, products This may be contrasted with the process orientation of many OLTP systems 10 Data warehouse - integrated DW integrates data collected from disparate sources: Operational systems Internal documents External data the data must relate specifically to the area of knowledge to be attained For example, data for CRM DW can be collected from customer touch-points operational systems: sales, order processing, marketing application forms, reports credit agencies, marketing agencies Data in DW is integrated - consistent names, formats, encoding structures etc. 11 Data warehouse - time variant Data in the data warehouse is periodic (time dimension) The data consists of a series of snapshots which are time-stamped and record values at a moment in time This supports trend analysis of the data Operational data is transient 12 Ilona Jagielska 4
5 Example of periodic data in a data warehouse (McFadden et al 1999) 13 Data warehouse non-volatile Data in OLTP system databases is continuously updated (inserts, deletes and changes) by end-users Data in a data warehouse is periodically up-loaded from operational systems, but cannot be updated by end-users 14 Motivations for data warehousing Demands on OLTP data bases for query processing is too great Data warehousing is designed for efficient retrieval Data in legacy systems is frequently inconsistent, of poor quality and stored in different formats Data warehouses are motivated by the need to view the entire enterprise from a single point 15 Ilona Jagielska 5
6 (McFadden et al 1999) An enterprise data warehouse (motivated by the need to view the entire enterprise from a single point) 16 Purposes of Data Warehouses Data warehouses, utilized correctly, can provide business insight Product performance campaign performance, profitability, cost structures, trend in sales customer behavior etc.. 17 Warehouse architecture Major options: Enterprise data warehouse Dependent data mart Independent data mart 18 Ilona Jagielska 6
7 Enterprise data warehouse Enterprise data warehouse Data sources Clients 19 Enterprise Data Warehouse (McFadden et al 1999) 20 Enterprise data warehouse Single central data source Large in scope and often size Maximises the benefits of integration User views Difficult to meet the requirements of different user groups Projects often fail 21 Ilona Jagielska 7
8 Data Marts Sometimes seen as departmental or even workgroup level operation of the warehouse Geared to anticipated queries and operations [reports, projections, specific analyses] Data marts customise decision support for different groups 22 Types of Data Marts Dependent - Populated from the EDW Independent - Data taken directly from the operational databases. 23 Dependant data mart Enterprise data warehouse Data marts Data sources Clients 24 Ilona Jagielska 8
9 Dependent Data Mart (three-layer architecture) 25 Dependent data marts Three-level architecture Operational data Enterprise data warehouse (EDW)- single source of data for decision making Data marts - limited scope; data selected from EDW 26 Dependant data mart Subsets of data are taken from enterprise data warehouse and organised to fit requirements of a business unit or application 27 Ilona Jagielska 9
10 Independent data mart Data sources Independent data marts Clients 28 Independent data marts Many small data warehouses Integration is a problem Duplication and inconsistency 29 The Data Warehousing process Data warehousing is an evolutionary process involving: sourcing ETL (extract, transform, load) storing delivering data to support decision makers 30 Ilona Jagielska 10
11 Data warehousing Source ETL Engines Metadata 31 Data warehouse development Requirements identification Logical design, data modelling Warehouse architecture, technology and tools Data extract, transform and load (ETL) Physical database design Delivery systems Operational policies 32 Requirements identification Users needs Data availability Once a system exists it becomes the major source of requirements Feedback mechanics are critical Evolutionary approach 33 Ilona Jagielska 11
12 Logical design, Data modelling Designing the database of the data warehouse is a key issue There are two main approaches entity relationship modelling and normalisation dimensional modelling Data modelling will be covered in next lecture 34 Data extract transform and load(etl) Data has to be extracted from data sources and then cleaned and integrated before it enters the data warehouse Data staging is a set of processes that clean, transform, combine and prepare data for use in DW 35 Data quality Data quality is a critical issue in data warehousing Data sourcing and cleansing is the largest task in most data warehousing projects 36 Ilona Jagielska 12
13 Examples of heterogeneous data data in operational systems are typically of poor quality, distributed on variety of incompatible hardware and software platforms 37 DW and Data Quality data quality is a key factor in the success of data warehousing and CRM systems data quality problems are widespread data in operational systems is typically of poor quality(duplication, missing data etc.) distributed on variety of incompatible hardware and software platforms transient poor quality data may lead to misguided decisions data sourcing and cleansing is the largest task in most data warehousing projects 38 ETL On its way to into the warehouse, data from the operational systems is cleaned and transformed (McFadden et al 1999) 39 Ilona Jagielska 13
14 Extract, Transform, Load (ETL) Processes (data reconciliation) Extract - capture data from operational DBs and other data sources Data scrubbing (cleansing) and transformation Load Most effort, time and cost goes into ETL ETL tools 40 Data transformation Transform Convert the data format from the source to the target system Data structures need to be made alike Data may need to be aggregated Fields can be split or merged Data may need to be changed from one format to another [e.g. o F to o C ] 41 Data extract transform and load Load and Index When the warehouse is first created. Static data capture. Update Mode Ongoing update of the warehouse. Incremental data capture. 42 Ilona Jagielska 14
15 Tools for data quality Various tools are available to support data sourcing and cleansing These typically support transformation from various file formats and some data validation But they can t do lots of things, Know where somebody lives, what their name is etc Data Quality two levels data (content) metadata (structure) 45 Ilona Jagielska 15
16 Meta-data Meta-data is data about data In traditional information systems, metadata recorded details of data elements, their formats and validation constraints In a data warehouse, richer metadata is required 46 Meta-data in a Data Warehouse Meta-data in a data warehouse should include Definitions of data elements Validation constraints Details of source systems and transformations required Comments about data quality Date at which data was sourced details of who is responsible for the data 47 Data and metadata Integration Data integration: combines data from multiple sources into a coherent store Schema integration integrate metadata from different sources Entity identification problem: How do you know that the customer ID field from two DBs are coded the same? 48 Ilona Jagielska 16
17 Data warehouse and Analytical CRM Analytical CRM consolidates customer data across the enterprise and provides unified view of the customer Data warehouse provides data infrastructure for analytical CRM 49 References Zikmund R., McLeod R., Gilbert F. Customer Relationship Management, Integrating Marketing Strategy and Information Technology The Groth text, chapter on data warehouse Modern Data Base Management, by Hoffer, et al, Chapter on Data Warehouse 50 Ilona Jagielska 17
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