Data Warehouse

A Data Warehouse (DW) is a centralized repository that stores integrated, historical, and
current data from multiple sources for business intelligence (BI), reporting, and analysis.
Unlike traditional databases, data warehouses are optimized for analytical processing (OLAP)
rather than transactional operations (OLTP).

Architecture of Data Warehouse

1. Data Source Layer
 Collects raw data from multiple sources such as:
o Operational databases (OLTP systems like MySQL, PostgreSQL)

o External sources (APIs, IoT devices, social media, logs)

o Cloud storage and flat files (CSV, JSON, XML)

2. ETL (Extract, Transform, Load) Layer

 Extract: Data is retrieved from different sources.
 Transform: Data is cleaned, filtered, formatted, and structured.
 Load: The transformed data is stored in the warehouse.
 Ensures data consistency, accuracy, and integrity.
 Uses tools like Apache Nifi, Talend, Informatica, and SQL scripts.
3. Data Storage Layer
 Stores processed data in a structured format for analysis.
 Can be implemented using:
o Relational databases (e.g., Oracle, SQL Server, PostgreSQL)

o Cloud data warehouses (e.g., Amazon Redshift, Snowflake, Google BigQuery)

 Supports star schema, snowflake schema, or hybrid models for efficient querying.
4. Metadata & Management Layer
 Stores metadata about:
o Data sources, relationships, and transformations.

o Indexing, partitioning, and query optimization.

 Ensures security, access control, and versioning of data.

5. Query & Analysis Layer
 Uses OLAP (Online Analytical Processing) tools to analyze data.
 Supports complex queries, aggregations, and data mining.
 Examples of tools used:
o SQL queries

o Business Intelligence (BI) tools like Tableau, Power BI, Looker

o AI & ML integration for predictive analytics

6. Presentation Layer (User Interface)

 Allows business users and analysts to access insights.
 Provides dashboards, reports, and data visualization.
 Interfaces:
o Web-based dashboards

o Mobile applications

o Custom reporting tools

Data Integration and Transformation
1. Data Integration
Definition:
Data integration is the process of combining data from multiple sources into a unified view
for analysis and decision-making. It ensures that data from various databases, files, and
applications are consolidated, cleaned, and structured in a way that allows seamless access
and usage.
Key Steps in Data Integration:
1. Data Extraction:
o Collecting data from different sources (databases, APIs, spreadsheets, cloud
storage).
2. Data Cleaning:
o Removing duplicates, handling missing values, and correcting errors.

3. Data Transformation:
o Converting data formats, standardizing units, and applying business rules.

4. Data Loading:
o Storing the processed data in a data warehouse, data lake, or database.

Example:
A retail company integrates sales data from online and offline stores into a single data
warehouse to analyze total revenue.
Tools for Data Integration:
✔ Apache Nifi
✔ Talend
✔ Informatica
✔ Microsoft SSIS
✔ AWS Glue

2. Data Transformation
Definition:
Data transformation is the process of converting raw data into a meaningful and usable
format. It includes data cleansing, standardization, filtering, aggregation, and
enrichment before storing it in a target system.
Key Types of Data Transformation:
1. Format Conversion:
o Changing data types (e.g., String → Integer, JSON → CSV).

2. Data Normalization:
o Standardizing values (e.g., converting all dates to YYYY-MM-DD format).

3. Data Aggregation:
o Summarizing data (e.g., calculating total sales per month).

4. Data Deduplication:
o Removing redundant records to avoid inconsistencies.

5. Data Filtering:
o Removing irrelevant or incomplete data.

6. Data Enrichment:
o Adding missing information by merging external data sources.

Example:
A banking system transforms customer transaction data by converting all currency values
into USD, filtering invalid transactions, and aggregating total spending per customer.
Tools for Data Transformation:
✔ Apache Spark
✔ Pandas (Python)
✔ SQL-based transformations
✔ DBT (Data Build Tool)

Relationship Between Data Integration and Transformation

 Data Integration collects and merges data from multiple sources.
 Data Transformation refines and converts this data into a structured format.
 Together, they ensure clean, accurate, and usable data for analysis and reporting.
🚀 Use Case:
A healthcare company integrates patient data from different hospitals and transforms it into a
common format for medical analysis.
This process is critical for data warehousing, analytics, AI, and business intelligence. ✅

Data Cleaning
Definition:
Data cleaning (also known as data cleansing or data scrubbing) is the process of detecting,
correcting, and removing errors, inconsistencies, and inaccuracies in a dataset. The goal
is to ensure that the data is accurate, complete, reliable, and ready for analysis.

Techniques of Data Cleaning

1. Removing Duplicates
 Issue: Duplicate records can occur due to multiple data sources or repeated data entry.
 Solution: Identify and remove duplicate rows using unique identifiers (e.g., customer
ID, order number).
 Tools: SQL (DISTINCT, GROUP BY), Pandas (drop_duplicates()), Excel (Remove
Duplicates).

2. Handling Missing Data

 Issue: Some fields may have empty or null values, leading to incomplete data.
 Solutions:
o Remove missing values (if they are not significant).

o Fill with mean/median/mode (for numerical data).

o Use forward or backward filling (for time-series data).

o Predict missing values using machine learning models.

 Tools: Pandas (fillna(), dropna()), SQL (COALESCE()), Excel functions.

3. Correcting Inconsistent Data

 Issue: Different formats or spellings can cause inconsistencies (e.g., "NY", "New
York", "N.Y.").
 Solution: Standardize data formats using predefined rules.
 Example: Convert all dates to YYYY-MM-DD format.
 Tools: Python (datetime module), SQL (CAST(), CONVERT()), data cleaning
software.

4. Removing Outliers
  Issue: Extreme values can distort analysis (e.g., salary dataset with a value of
$1,000,000,000).
 Solutions:
o Use statistical methods (e.g., Z-score, IQR method) to detect outliers.

o Replace outliers with mean/median or remove them if they are incorrect.

 Tools: Pandas (describe(), zscore() from SciPy), Box plots in Excel/Tableau.

5. Data Type Conversion

 Issue: Incorrect data types can cause errors in calculations and queries.
 Solution: Convert data to the correct type (e.g., converting "1000" from text to
integer).
 Tools: Pandas (astype()), SQL (CAST(), CONVERT()).

6. Resolving Syntax Errors & Typos

 Issue: Misspelled words or incorrect capitalization can cause inconsistencies (e.g.,
"john doe" vs. "John Doe").
 Solution: Apply text standardization using string functions or spell-checking tools.
 Tools: Python (lower(), strip()), NLP libraries (FuzzyWuzzy for spell checking).

7. Data Validation
 Issue: Invalid or incorrect data entries (e.g., negative age values).
 Solution: Apply validation rules and constraints (e.g., age should be between 0-120).
 Tools: SQL (CHECK constraints), Pandas validation functions.

Why is Data Cleaning Important?

✔ Improves Data Accuracy – Ensures reliable insights.
✔ Enhances Efficiency – Reduces errors in decision-making.
✔ Prepares Data for Machine Learning – Improves model performance.
✔ Prevents Costly Mistakes – Avoids incorrect business conclusions.

Multidimensional Data Model in Data Mining

Definition
The Multidimensional Data Model is used in data warehousing and data mining to represent
data in multiple dimensions for efficient analysis. It is the foundation of Online Analytical
Processing (OLAP), allowing users to perform complex queries like slicing, dicing, drilling
down, and pivoting on large datasets.

Key Concepts of the Multidimensional Data Model

1. Facts
 Facts are quantifiable data stored in the fact table.
 Example: Sales amount, profit, total revenue.
2. Dimensions
 Dimensions define the perspectives from which data can be analyzed.
 Example: Time, Product, Location, Customer.
3. Measures
 Numerical values associated with facts.
 Example: Sales (sum), Quantity (count).
4. Hierarchies
 Levels within a dimension (e.g., Time → Year → Quarter → Month → Day).
5. Schema Types
 Star Schema – Single fact table linked to multiple dimension tables.
 Snowflake Schema – Dimension tables are normalized, reducing redundancy.
 Galaxy Schema – Multiple fact tables sharing dimension tables.

What is OLAP?
Online Analytical Processing (OLAP) is a technology that allows users to perform complex
analytical queries on large datasets efficiently. It is used for business intelligence,
reporting, and decision-making by organizing data into a multidimensional format for
faster analysis.
Key Features of OLAP:
✔ Stores historical data for trend analysis.
✔ Supports multi-dimensional data models.
✔ Enables fast query performance using pre-aggregated data.
✔ Used in data warehousing and business intelligence.

OLAP vs OLTP (5 Key Differences)

Feature OLAP (Analytical) OLTP (Transactional)

Purpose Data analysis & decision-making Real-time transaction processing

Data Type Historical & aggregated data Current operational data

Query Type Complex queries (JOINs, GROUP BY) Simple read/write queries

Performance Optimized for read-heavy workloads Optimized for fast inserts/updates

Use Case Business Intelligence, Reporting Banking, E-commerce transactions

OLAP Operations with Examples

1. Slice
 Extracts a single dimension from a cube.
 Example: "Show sales data for the year 2023."
2. Dice
 Extracts a subcube by selecting multiple dimensions.
 Example: "Show sales data for ‘Laptops’ in ‘USA’ during 2023."
3. Drill Down
 Moves from higher-level summary to detailed data.
 Example: "Show sales per month instead of per year."
4. Roll Up
 Aggregates data to a higher level.
 Example: "Summarize sales per region instead of per city."
5. Pivot (Rotate)
 Changes the viewing perspective of data.
 Example: "Switch from 'Product-wise Sales' to 'Region-wise Sales'."

How to Write an OLAP Query?

SQL Example (Using GROUP BY & Aggregation)
SELECT Region, Product, SUM(Sales) AS Total_Sales
FROM Sales_Data
WHERE Year = 2023
GROUP BY Region, Product
ORDER BY Total_Sales DESC;
Explanation:
 Filters data for the year 2023.
 Groups sales by region and product.
 Aggregates total sales for each group.
 Sorts results in descending order.

Key Differences: OLAP vs OLTP

Feature OLAP (Analytical Processing) OLTP (Transactional Processing)

Used for daily transaction

Used for data analysis, decision
Purpose processing
support, and reporting
Real-time, operational, and
Historical, aggregated, and current data
Data Type
summarized data
 Feature OLAP (Analytical Processing) OLTP (Transactional Processing)

Complex queries (JOINs, GROUP Simple, fast queries (INSERT,

Query Type
BY, aggregations) UPDATE, DELETE, SELECT)
Optimized for read-heavy
Optimized for write-heavy
Performance workloads (high query
workloads (fast transactions)
performance)
Denormalized data (reduces Highly normalized data (avoids
Normalization
complexity, increases performance) redundancy, maintains consistency)
High transactions per second
Transactions per Low transactions per second
(TPS) for real-time processing
Second (TPS) as it handles complex queries
Stores current transactional data
Stores large volumes of historical
Data Storage in databases
data in data warehouses
Uses many indexes (ensures quick
Uses few indexes (optimized for
Indexes data retrieval for transactions)
fast queries on large data sets)
Frequent backups are required for
Backup and Regular backups are performed but
ensuring data consistency
Recovery are not as frequent as OLTP
High concurrency (many users
Low concurrency (fewer users run perform transactions
Concurrency
analytical queries) simultaneously)

Banking Systems, E-commerce

Business Intelligence, Data
Example Use Orders, ATM Transactions,
Warehousing, Financial
Cases Inventory Management
Forecasting, Customer Analytics
Amazon Redshift, Google
MySQL, PostgreSQL, Oracle
Examples BigQuery, SAP BW, Microsoft
Database, SQL Server
Analysis Services