Components of Commercial Value Chain
April 3, 2025
Introduction The concept of the value chain was introduced by Michael Porter. The concept helps categories’ activities undertaken by enterprise to deliver a successful product to a customer. The concept since its introduction in 1980s has become a forefront in developing strategies around customer delight and commercial success. The value chain is series of activities…
Introduction Information systems can be defined as set of co-ordinated network of components, which act together towards producing, distributing and or processing information. Information systems in conjunction with information technology have various applications in today’s business environment. Communication System The process of transmitting information from one place to another is called communication. The transfer of…
Introduction The last decade has shown rapid development in the information technology and its application. This has helped changed the way we look at the world as well as the way business is conducted. Both business and trade have gained under the wave of information technology with improvement in efficiency, productivity and bottom line. Productivity…
One of the critical components in the information technology age is the data. Data is the source of all the information and information is valuable for decision making process.
Decision support systems are developed to support executive management and relevant decision makers. In the modern era, there is large volume of information is available. Data warehouse is required to store huge volume of data.
Since the data warehouse is supporting decision support system, therefore, it should be subject oriented, integrated, collected over a period of time and static.
Data warehouse has subject oriented data. This subject oriented data could be information such as sales, customer name, etc. Data warehouse excludes information, which is not useful for decision-making process.
Data warehouse is developed as an integration of multiple heterogeneous data sources. As the data source have their own data protocol, data processing is required while data warehousing.
Data warehouse provides information with time as function. This gives historical perspective to the information.
Once data is captured into the data warehouse, it cannot be changed.
Data within the data warehouse is maintained in form of star schema, snowflake schema and galaxy schema.
The data mart is that portion of the access layer of the data warehouse which is utilized by the end user. Therefore, data mart is a subset of the data warehouse. Data mart is usually assigned to a specific business unit within the enterprise. Data mart is used to slice data warehouse into a different business unit. Typically, ownership of the data mart is given to that particular business unit or department.
The primary utility of data mart is business intelligence. A data mart requires very less investment compared to data warehouse and therefore it is apt for smaller business. Set up time for data mart is very less again making it practical for smaller business.
The main advantages of data mart are as follows:
OLAP or Online Analytical Processing is a concept in which data is analyzed through multiple dimensions with help of structure called cube. OLAP helps in converting data into information.
The main objective of OLAP is to summarize information for decision making process from large data base. The report generated through OLAP can be presented in a format as per the requirement of end user.
The advantages of OLAP are as follows:
There are three types of OLAP multi-dimensional OLAP, relational OLAP and Hybrid OLAP. In multi-dimensional OLAP data is usually stored in proprietary structure suitable for multi-dimensional analysis. In relational OLAP data base is structure through standard database in star or snowflake schema. A combination of multi-dimensional OLAP and relational OLAP is the hybrid OLAP.
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