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Assignment 3: Business Intelligence and Data Warehouses

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Assignment 3: Business Intelligence and Data Warehouses

Kevin Sloley
Professor Dammlash Gebre
CIS-111 Intro to Related Database Management Systems
Due March, 2016

Outline the main differences between the structure of a relational database optimized for online transactions versus a data warehouse optimized for processing and summarizing large amounts of data. The primary difference between your application database and a data warehouse is that while the former is designed (and optimized) to record, the latter has to be designed (and optimized) to respond to analysis questions that are critical for your business. Application databases are OLTP (On-Line Transaction Processing) systems where every transaction has to be recorded, and super-fast at that. Consider the scenario where a bank ATM has disbursed cash to a customer but was unable to record this event in the bank records. If this started happening frequently, the bank wouldn't stay in business for too long. So the banking system is designed to make sure that every trasaction gets recorded within the time you stand before the ATM machine. This system is write-optimized, and you shouldn't crib if your analysis query (read operation) takes a lot of time on such a system.

A Data Warehouse (DW) on the other end, is a database (yes, you are right, it's a database) that is designed for facilitating querying and analysis. Often designed as OLAP (On-Line Analytical Processing) systems, these databases contain read-only data that can be queried and analyzed far more efficiently as compared to your regular OLTP application databases. In this sense an OLAP system is designed to be read-optimized.
Outline the main differences between database requirements for operational data and for decision support data Stored data is used by both data-driven DSS and transaction processing systems (TPS). The data organized

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