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Free Research Paper on Data Warehousing

Data Warehousing and data mining are two important technologies that are becoming more established in society today due to the September 11th attacks on the World Trade Centers. Data warehouses have been used in the private sector for years, predominantly to analyze customer-buying trends. The value of the data warehousing in both government and private industry comes from capturing an assortment of information across the enterprise, most commonly known as data mining. Data mining is the compilation of information in the form of stored data that is used to assist law enforcement agencies in tracking the activities of terrorists, and other illegal activities in this country and throughout the world. Similarly, some states are using this technology in a more encouraging manner by analyzing their departmental budgets and functions. One state that is currently using this technology is the state of Iowa.

In order to use data warehousing and data mining resourcefully, Iowa has determined that a logical structure must first be created. The reason why it was created is to give the state a better ability to deliver services, such as child welfare, veteran affairs, criminal justice and tax revenue, or to track the government and educational services provided to a child as he or she grows up to try to find out why one child ends up in jail and the other does not.

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Some of its other uses are to deal with fraud and abuse in its Medicaid program, which nationwide has grown to over $8 billion. By reducing the fraud in the state’s Medicaid program, Iowa can better allocate the savings from their data warehousing labors to other state programs. The Iowa State Department of Finance has determined that their data warehouse is projected to generate a return on investment (ROI) of 673 percent, or nearly $16.8 million, annually. With any luck, according to state officials, one central warehouse will eventually serve the entire state.

Some states may not be equipped to use data warehousing on such a scale as Iowa. In New York City for instance, the development of a massive data warehouse is under way. New York has designed their own data warehouse and have extracted and organized data into a database for use by analytical, query and decision support applications to assist with state programs.

The design and introduction of New York’s enterprise data warehouse started with a strategy for integrating data from various state agency systems that resulted in the consolidation of descriptive information into a system that is accessible to each state department. Identification of the data that had the most immediate interest for all state agencies turned out to be finance, payroll and personnel data that each agency can access and analyze readily. Before the warehouse can operate on such a scale, the state has had to come up with a logical data model and framework that meant that state agencies had to provide information that is reliable, dependable, consistent and accurate, whether it includes people, places, or organizations.
The New York Police Department is using data warehouses to analyze crime patterns. This analysis resulted in one of the most significant drops in crime ever seen by any city in decades. Furthermore, the Department of Criminal and Juvenile Planning in New York City was able to reduce its analytical query costs from $215,000 a year to just $2,690 by using data warehouses. In addition to those cost savings, the Department of Revenue and Finance used the warehouse to identify noncompliant taxpayers for audits and ended up increasing tax revenue by $3.5 million in less than one year. Quite a savings! Obviously, New York’s payoff has been incredible.

The same has been true of the City of Baltimore Police Department. They are currently using data warehouses to analyze and highlight crime patterns. Their efforts and rewards have not been as spectacular as New York City, but nevertheless, have resulted in a small decrease in crime. This decrease in the crime statistics is believed will start encouraging more families to move back into the city.

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