Types of Systems

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1st Level Reporting 
(Relational Database - Simple Query)

A simple query is asking the question what happened? It is relatively static and tells us only what has occurred.  It has no ability, by itself, of telling us what may happen or why. It cannot influence our decisions. Examples of simple queries are surveys, questionnaires, and simple accounting data.

Many reports that we think of today as “research” are nothing more than simple queries.

The results obtain from a simple query gives us no information in which to manage, UNLESS, that data is compared against some other data.

2nd Level Reporting 
(On Line Analytical Processing - OLAP)

OLAP provides that ability to make comparison and provides for the ability to analysis what is happening and why. It provides the ability to analysis data across multi-dimensions.

  • Spread-sheet Analysis

  • Trending

  • With time can provide trending analysis

  • Drill Down

  • The biggest advantage of OLAP is the ability to “drill down data”

  • Drill Through

3rd Level Reporting 
(Data Mining)

Data mining is the use of advanced statistical techniques and modeling to tell us what may happen. Examples of answers that come from data mining are what may happen if the trends continues, what are the relationships between variables that cause this to happen, and what may happen if we change the variables.

“Traditional Research” generally follows the following procedures

  • Develop a hypothesis

  • Develop a test to either prove or disprove the hypothesis

  • Gather data and Run the test

  • Analysis the results

Data mining, on the other hand, analysis data just to see what comes up interesting. It gives us information even if we do not know what questions to ask.

Example: vitamin B and prostate cancer

Requirements:

  • Large amount of data

  • Large computer processing ability

Important concepts:

  • AI

  • Multidimensional Analysis

  • Clustering

  • Factoring

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