What is Data Warehousing?

Data Warehousing is a procedure where data is collected and managed from various sources with the aim to attain meaningful business insights. A data warehouse is mostly used to connect and analyze business data through heterogeneous sources. We can say the data warehouse is in fact the core of the Business Intelligence system that is built for data analysis and reporting.

Most importantly, it aids the strategic use of data and is considered to be a blend of technologies and components. It stores a large amount of information through electronic storage and is designed for query and analysis instead of just transaction processing. Thus it is a procedure where you get to transform data into information and make it readily available to users in a timely manner to help them make a difference.

Why is Data Warehousing needed?

As per the importance of data warehousing is concerned then one should know data warehousing plays a vital part in storing data. With the help of data warehousing, the speed and efficiency with which the different data sets are accessed is greatly improved. Thereby, making it very convenient for corporate decision-makers to derive such insights that can guide the business. With that, it also offers such marketing strategies that make them stand out from their competitors. Here is a comparison between Tableau and Looker, that you might be interested in.

Different names of data warehousing:

Data warehousing is called out of many different names which are mentioned below.

• It is known by the name Decision Support System (DSS).

• It is also called Business Intelligence Solution.

• Another name of data warehousing is Executive Information System.

• Similarly, it is also known by the name Management Information System.

• Another name of data warehousing is Analytic Application.

Thus there isn’t just one name to it as it comes in many forms.

Advantages of data warehousing:

Data warehousing comes with many advantages and some of them are mentioned below.

Retrieve your data instantly:

With data warehousing, you get the option to retrieve your data in an instant. As soon as you put information into your DW, it is guaranteed you’ll never lose track of this data again. Through quick search, you can find the statistics and then analyze it further.

Identifies errors:

When you are about to load your data, the data warehouse will show you all the inconsistencies and errors if any and then correct them. This is very helpful for all those people who are quite careless in gathering data. You might also be interested in Tableau and Data Science.

Offers easy integration:

Data warehouse can easily add value to operational business applications when integrated successfully. Meaning, it allows to translate the information in a more simple and digestible manner and enables your team members to understand it easily.

Disadvantages:

With some advantages comes disadvantages as well.

Consistent updates:

Even though consistent updates can be great for business owners who are always looking for best and updated features but it can get very costly. With that, regular maintenance of the system is also required and together this all can become very costly.

Limits use because of sensitive information:

If you have such data that has to be only viewed by certain staff members then you DW’s use will get quite limited. For the purpose of maintaining the security of the current system, less usage can decrease the overall value of your data warehouse.

Types of Data Warehouse:

Following are the types of data warehouse.

Enterprise Data Warehouse (EDW):

Enterprise Data Warehouse as the name depicts is known to be a centralized warehouse that provides various decision support services across the enterprise. It is usually a collection of databases that offer nothing but a unified approach for organizing and classifying data according to subject. Check out the big data tools for data visualization.

Operational Data Store (ODS):

An Operational Data Store also known as ODS is a type of data warehouse that can be used for the purpose of operational reporting just like the data source for the enterprise data warehouse. It is known to be a complementary element to EDW and is widely used for the purpose of operational reporting, controls, and decision making.

Data Mart:

A Data Mart is considered to be the subset of a data warehouse. It is most likely oriented to a specific team or a business line which can be relevant to sales and finance. Data mart is subject-oriented and makes specific data available to a defined group of users at a faster rate. With that, it also provides with critical insights and making sure specific and relevant data is available in order to not waste time searching through an entire data warehouse.

Conclusion:

Data warehousing is a very convenient way to collect and store data and enterprises need data warehousing no matter what. So, if you want to know what data warehousing is, its importance and other details then read this article now and never stop learning.