What Is Data Warehousing?


The safe electronic archiving of information by a company or other organization is known as data warehousing. Data warehousing aims to produce a treasure trove of historical data that can be recovered and examined to offer helpful insight into the operations of the company.


Business intelligence must include data warehousing. This broader phrase includes the information architecture that contemporary organizations utilize to keep tabs on their previous triumphs and failures and guide their future decisions.


The Process of Data Warehousing

As companies started depending on computers to create, store, and retrieve crucial business papers, the need to warehouse data emerged. Barry Devlin and Paul Murphy, two IBM researchers, first proposed the idea of data storage in 1988. 


The study of historical data is made possible by data warehousing. A company's success can be understood by comparing data that has been combined from many heterogeneous sources. Users of a data warehouse can perform queries and analytics on historical data acquired from transactional sources.


Maintaining the Data Warehouse

A data warehouse requires specific maintenance procedures. Data extraction is a step that entails acquiring a lot of data from many sources. A set of data is cleaned after it has been compiled, which involves looking over it for faults and fixing or removing any that are discovered.


Following data cleanup, the format of the data is changed from database to warehouse. Data is sorted, consolidated, and summarized after being stored in the warehouse to make it more usable. As the various data sources are updated over time, additional data are added to the warehouse. W. H. Inmon's "Building the Data Warehouse," a helpful manual that was initially released in 1990 and has since been reprinted numerous times, is a fundamental text on data warehousing.


Companies like Microsoft, Google, Amazon, and Oracle, among others, offer cloud-based data warehouse software services that enterprises can purchase.


Data Mining

Businesses that store data do it primarily for data mining. This entails searching for informational trends that will aid in the optimization of their commercial procedures.


Access to one another's data within a corporation is made simpler by a strong data warehousing solution. For instance, a marketing team can evaluate the data from the sales team to decide how to modify their sales tactics.


Data mining: The First 5 Steps

There are five steps in the data mining process:


  • Data is gathered and loaded into a data warehouse by an organization.
  • The information is then managed and stored, either on private servers or in the cloud.
  • The data is accessed and organized by business analysts, management groups, and IT specialists.
  • The data is sorted by application software.
  • The data is presented by the end user in an approachable manner, like a graph or table.


Databases vs. Data Warehousing

A database and a data warehouse are not the same things.


In order to only have the most recent data available, databases are transactional systems that continuously track and update real-time data.

Structured data is programmed to accumulate over time in a data warehouse.

For instance, a database might only have a customer's most current address, whereas a data warehouse might contain all of the customer's addresses going back ten years.


Benefits and Drawbacks of Data Warehouses

The goal of data warehousing is to provide a business with a competitive edge. It develops a repository of essential data that can be followed through time and examined to assist a firm in making better decisions.


Additionally, it can deplete business resources and stress present employees with menial activities meant to fuel the warehousing machine.


What is a data warehouse and what are some of its applications?

A data warehouse is a method for storing historical data so it may be examined in a variety of ways. The data warehouse is used by businesses and other organizations to analyze historical performance and make operational improvements.


What Is an Example of a Data Warehouse?

Take into account a manufacturer of exercise gear. It is thinking of growing its line and starting a fresh marketing effort to boost its best-selling stationary bicycle.


To gain a deeper understanding of its existing customer, it visits its data warehouse. It can determine whether the majority of its clients are men under 35 or women over 50. It can find out more about the locations of the shops that have had the most success selling their bikes. It might be able to examine internal survey findings and learn what previous customers thought favorably and negatively about their goods.


What Steps Make Up the Data Warehousing Process?

According to an industry newsletter called ITPro Today, there are at least seven steps involved in building a data warehouse. They consist of:


identifying the key performance metrics and the business's objectives.

gathering and evaluating the required data.

figuring out which essential business operations contribute to the important data.

building a conceptual data model that illustrates how the user will be presented with the data.

locating the data's sources and creating a system for putting data into the warehouse.

Set a time frame for the tracking. Data warehouses may grow cumbersome. Many are constructed with stages of archiving, allowing for the retention of older data with less granularity.


SQL: Is it a Data Warehouse?

The computer language SQL, or Structured Query Language, is used to communicate with databases in a way that they can comprehend and reply to. There are several instructions in it, including "select," "insert," and "update." It serves as the relational database management system standard language.


Despite the fact that both are informational repositories, a database and a data warehouse are not the same. A structured collection of information is called a database. A data warehouse is a repository for information that is continually compiled from many sources.


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