Data warehousing is the process of combining and optimizing a large amount of data from a variety of sources to make it possible to analyze the data. To increase business efficiency, make better decisions, and discover competitive advantages.
Keep in mind that a database is not the same as a data warehouse.
While both are relational data systems, a database stores current transactions and provides quick access. To specific transactions for ongoing business processes by utilizing online transaction processing (OLTP).
On the other hand, data warehouses store a lot of historical data and use online analytical processing (OLAP) to support complex, fast queries across all data.
This article will discuss the top six advantages of a data warehouse and provide examples of how it could benefit your company.
1. Consistency
Converting data from multiple formats and sources into a single standard format is typically the first step in data warehousing. This makes it easier for users to analyze and share insights about the entire collection of data.
With more consistent data, marketing, sales, and finance departments. It can use the same data resource for queries and reports to produce results that are consistent with those departments.
2. Access
End-user access to a wide range of enterprise data is enhanced through data warehousing.
To obtain the data they require, business users and decision-makers frequently have to log into each department system individually, manually consolidate data, or request reports through IT personnel. Business users can independently create reports and queries with the help of a data warehouse.
Instead of having to log into multiple systems, users can access all of the organization’s data from a single interface. Having easier access to data means spending less time retrieving it and more time analyzing it.
3. Auditability
In addition to the objective of the auditing procedure, the objective of a data warehouse is to guarantee that data is accurate, up-to-date, and easily accessible.
Implementing controls for roles and responsibilities associated with data migration from source systems to the data warehouse can guarantee data integrity.
The data warehouse has security measures in place to make sure that users can only read the data.
4. Data sanitization
Incomplete, duplicate, or redundant data can cause data integration from multiple systems to become inconsistent. These errors may show up in queries and reports if the data is not cleansed or corrected, resulting in inaccurate insights.
To get rid of information that isn’t of high quality from the data repository, data warehouses use a sanitization process. To guarantee data consistency and integrity, the method replaces, modifies, or deletes records after identifying duplicate, corrupt, or inaccurate data sets.
5. High Return on Investment
Data warehousing is expensive but produces high-quality results over time in terms of revenue generation. In its early stages, data warehousing costs a lot of money, but over time, it can help the company grow exponentially.
In 1996, the International Data Corporation reported that the return on investment for data warehousing was 401%, with an average of three years.
6. BI from Heterogeneous Sources
An organization has numerous subsystems that differ physically and are based on various platforms. Data from various sources must be combined in Business Intelligence. These data are integrated and made accessible in a single location in a data warehouse. A data warehouse provides a single view of a story rather than multiple stories. With multiple meanings by consolidating all of an organization’s data into a single container. Need to know about the advantages of a data warehouse, just check this site, World Informs!