Business Thursday November 18, 2021

Benefits of data warehouses for business

In today’s world of development, companies have operations all around the globe. Companies create massive amounts of data daily, and this data has to be managed properly to run the operations smoothly. However, data warehouses can help do that. 

One of the most important business intelligence tools a firm may have is a data warehouse. It converts enormous amounts of data from several sources into a readable manner.

This article will explore you with the meaning of data warehousing, advantages of data warehousing followed by the types of data warehousing. 

Let us dive into the meaning of data warehousing. 

What is data warehousing?

“Data warehousing is the process of collecting, organizing, and managing data from various data sources to provide users with useful business information and projections. ” 

Types of data warehouses (DWH)

Data warehouses (DWH) are classified into three categories that are often utilized in corporate systems. They are as follows:

  • Enterprise Data Warehouse (EDW): An EDW is a centralized data warehouse that offers a comprehensive way to organize and present data.
  • A data mart is a repository for departmental data, such as sales, finance, and supply chain.
  • Operational Data Store (ODS): An ODS is a data store that is used when neither an OLTP nor a DWH can meet a company reporting needs.

Benefits of data warehouses

Here are some of the significant benefits of data warehousing. 

  • Improves Business Intelligence: With a data warehouse, you can collect, process, and infer data from any source across your enterprise, so that your BI can improve with the effortless data consolidation from various sources.
  • Better decision making: Data warehouses play a major role in making decisions as they are stored with credible facts and statistics that help decision-makers retrieve the information easily. 
  • Saves time: A data warehouse helps to access all the information in a matter of minutes. This does not let employees drag till a deadline. However, the use of a data warehouse can save a lot of time.
  • Better data security: Data warehouses give companies with additional data security features. It supports keeping all the information secure and protected that significantly decreases the threat of data breach.
  • Stores historical data: Another importance of data warehousing is that it stores large amounts of historical data that help examine different phases and timelines that can be innovative for the business. 
  • Data quality and consistency: Data standardization is another advantage of data warehouses. It helps store data from multiple sources in a consistent way, where each source generates results with other sources ensuring better data quality and consistency.

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