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What is Data Warehousing? Concepts, Features, and Examples?

Data Warehousing

What is Data Warehousing? Concepts, Features, and Examples?

Nowadays, the business and corporations’ data is rapidly increasing, and for that, they need reliable services for data reporting and analysis. Corporations wish to keep their information consolidated and cohesive while also providing meaningful business insights to different bodies.

Data warehouse (DWH) provides ideal data reporting and analysis services for businesses. And for this reason, companies are looking at data warehouses more than ever.

Read this article until the end if you want to learn what a data warehouse is and how it works.

What is Data Warehousing?

A data warehouse is an information management system intended to facilitate and assist market intelligence (BI) and data analysis operations. Data warehouses are designed mainly for searching and monitoring, and they frequently store vast quantities of records. A data warehouse’s data is typically gathered from various channels, including program log files and transactional programs.

A data warehouse is a system that collects and organizes enormous amounts of information from various sources. Its analytical skills enable businesses to gain significant business data-driven insights, allowing them to make better decisions. So the significance of using warehouses in organizations is undeniable.

Is Data Warehouse and Database the Same?

While looking at Data warehouse, you might think it is the same as databases since they have similarities. But that is not true. A Datahouse is designed to handle analytical operations on extensive data sets; however, a database can not effectively manage such functions.

Key Features of Data Warehouse

Some of the starring features of Data warehouse are:

Subject Oriented

The Data Warehouse provides an intelligent and efficient way to access the data since it provides information for a specific query rather than all the undergoing operations of the organization. For example, you do not need to access all the information related to sales like product details, customer details, and orders time; instead, you can get information on specific subjects like product information and supplier details.

Integrated

The data warehouse is a combination of data obtained from multiple heterogeneous sources. These sources can be anything from conventional files to relational databases and company records, making for intelligent data assessment.

Time-Variant

The data provided in DWH is labeled with a specific time frame. The reason is that DWH provides analysis information from a chronological point, i.e., from a particular moment in the past.

Non-volatile

In databases, the”non-volatile” refers to a system that does not lose its data with the addition of new information. The data warehouse is indeed non-volatile, which means that when new data is added, the existing data is not deleted. 

The data is read-only and updated regularly. This also aids in the analysis of historical data and the comprehension of its operations. Transaction processing, recovery, and concurrency control techniques are not required.

Combining Heterogeneous Databases to Function as Data Warehouses

There are two well-known methods for combining different databases:

Query-driven Technique: A query-driven framework is a classic method for building integrators and layers on top of disparate or diverse datasets in data warehousing.

Update-driven Technique: Nowadays, an update-driven method to data integration is a more popular alternative for query-driven integration. This method involves combining or integrating data from various sources and storing it in a data warehouse. Staff will be able to access and analyze this data afterward.

How does the Data Warehouse Work?

A Data Warehouse is a centralized vault in which data from one or more data sources is stored. The operating system and other database systems feed data into a data warehouse.

The data can be either:

  1. Structured
  2. Semi-structured
  3. Unstructured

Users can take advantage of the data populated in the Warehouse using different Business Intelligence tools like Tableau, Power BI, SQL Clients, and other spreadsheet software. The data warehouse is responsible for injecting data coming from various sources into one big pool of data.

With this vast amount of data placed in one place, organizations can use this data by running different analyses on consumer behaviors. This, in turn, helps companies devise new strategies that help them grow business, and they can also see why some of their initiatives have failed or otherwise. This makes companies increase their profits.

Types of Data Warehouse

Data warehouses can be categorized into three basic types that are:

1. Enterprise Data Warehouse (EDW)

The enterprise data warehouse (EDW) is a centralized or primary database that helps companies make better decisions. The best thing is that it provides a unified technique to organize and represent data. Accessibility to cross-organizational data, the capacity to perform complicated queries, and the potential to create better-off, perceptive views for data-driven choices and proactive risk evaluation are advantages of having an EDW.

2. Operational Data Store

Operational Data Store, also known as ODS. This datastore is used when the data warehouse and Online Transaction Processing systems cannot meet an institution’s reporting requirements. In ODS, the Data warehouse is refreshed in real-time. Hence, it is widely preferred for routine activities like storing records of the Employees.

3. Data Mart

The data warehouse is subdivided into data marts. It is tailored to a specific business segment, such as advertising, accounting, purchases, or financial services. Data can be collected straight from sources in an individual data warehouse.

Data Warehousing in Different Industries

Data warehouses have become the ground reality of businesses since they provide an efficient and intelligent way to store and analyze data. Below we are mentioning some of the industries which cannot run their day-to-day operation without data warehouses.

Investment and Insurance Area

Since Data warehouses provide real-time analytical reports of data and its patterns, the stock and finance market cannot survive without DWHs. The DWH is primarily used to assess client and market dynamics, as well as other statistical assets. The two critical sub-sectors of the finance market, forex, and stock exchanges, heavily rely on DWHS since a single data point discrepancy can result in huge losses across the panel. The DWH emphasis on real-time data broadcasting in these markets, which provides better insight into market trends.

Retail Chains

DWHs are utilized extensively in the retail business to track goods, examine cost structure, track advertising offers, and analyze customer purchasing behaviors. Commercial networks commonly use EDW systems to fulfill their business analytics and prediction objectives.

Healthcare

Data warehouses also are employed in the healthcare field to assess and anticipate results, produce patient treatment records, and transmit information with interlinked health insurers, medical support services, and other organizations.

Public Sector

In the government sector, data warehouses are used to gather information. It assists government entities in keeping and analyzing tax information and health information for each citizen.

The Takeaway?

Expanding past conventional databases and then into the domain of data warehousing can help organizations get more out of their analytical initiatives. Getting the appropriate warehouse solutions for businesses can make a huge difference in how well you serve your clients and expand your activities.