Page 151 - DCAP402_DCAO204_DATABASE MANAGEMENT SYSTEM_MANAGING DATABASE

Database Management Systems/Managing Database

Notes
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Case Study Data Warehousing: A Strategic Tool

ata warehouse is a massive independent business database system that is
populated with data that has been extracted from a range of sources. The data is
Dheld separately from its origin and is used to help to improve the decision-
making process.
Many traditional Databases are involved in recording day to day operational activities of
the business, called online transaction processing (OLTP), commonly implemented in
Airline Bookings & Banking Systems, for fasters response and better control over data.
After establishment of OLTP Systems, reports and summaries can be drawn for giving
inputs to decision-making process and this process is called online analytical processing
(OLAP).
For better customer relationships management strategy, the call centres and data
warehouses must be fully integrated. Data warehouse works as a strategic tool for decision-
support which requires lot of time for establishment, and needs to be updated with
operational information on daily weekly or monthly basis.
Data warehouse is used for proactive strategies formulation in critical & complex situations.
A number of CRM vendors are advocating for single integrated customer database which
includes call centre, web sites, branches and direct mail, but it lacks in analytical functioning
of data warehouse. This Database can’t be expanded also, and carry decision support
operations on call centre Database becomes slow & the query processing and inquiries
handling operations also become slow & inefficient for agents dealing with customers.

Data warehouse is must for identifying most profitable & loyal customers and those
customers can be offered better customized services which increases the chances of
additional profits.
Although call centre systems & data warehouses are altogether different systems yet
dependant on each other to fully exploit their potential respectively.
Questions
1. Explain OLTP & OLAP processes with their respective advantages.
2. How the response time in performing OLAP queries can be improved?
3. Explain the importance of regular updation of data in a data warehouse.

4. Explain the role of data warehousing in the functioning of a call centre.
5. “Data warehouse works as a strategic tool for decision support”. Comment.

Source: Dharmenda and Sangeeta Gupta, Management Information System

8.8 Summary

 The rules are provided by the normalisation where we decompose the databases to the
minimum level so that there should not be any problems such as concurrency within the
database.
 You can normalise the databases using various forms of normalisation such as 1st NF, 2nd
NF, 3rd NF BCNF and 4NF, 5NF.

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