A data warehouse refers to a data management system designed to support and enable BI (business intelligence) activities, including analytics.
It is designed to carry out analysis and queries and often has a lot of historical data. Usually, the data in data warehouses is derived from different sources, like transaction applications and application log files.
Data warehouses consolidate and centralize data from several sources. Its analytical abilities allow business organizations to derive business insights from data to decision-making.
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How It Works
A data warehouse often works as a repository where data comes from several sources. The data flowing in can be unstructured, semi-structured, or structured. And it might be from external systems, customer-facing applications, and internal applications.
Once in a data warehouse, data gets processed, transformed, and ingested to enable users to access processed data when it comes to decision-making.
By merging a lot of information in a data warehouse, organizations may form a holistic analysis to ascertain it considers the available data before making any decision.
Where It Can Be Used
Many industries consider Snowflake implementation service and other data warehouses to manage their data. A good example is the airline industry. In airline systems, data warehouses are used for operation purposes, such as program promotions, route profitability analysis, and crew assignment.
Banking is another industry that implements data warehouses to manage the available resources effectively. Some banks also use them to carry out analysis of operations/products and for market research. Other industries using data warehouses may include the following:
- Insurance and investment sector
- Retain chain
- Public sector
- Hospitality industry
Features of a Good Data Warehouse
A good data warehouse is basically subject-oriented because it offers topic-wise data instead of overall processes. Such subjects can be inventory, promotion, and sales.
For instance, if you are looking to analyze the sales data of your business, you will have to build a good data warehouse, which focuses on sales. Such warehouses can provide helpful information, including what your best clients were last year and who will be your loyal customers next year.
A good data warehouse also integrates different heterogeneous sources of data. These may include online transaction records, flat files, and RDBMS. It needs performing integration and data cleaning to ascertain consistency when it comes to types of attributes and naming conventions, to name a few.
What Data Warehouses Can Do
Well-designed data warehouses are the foundation for successful analytics programs and BI. Its main work is to power analytical tools, dashboards, and reports, which are indispensable to a business nowadays.
Data warehouses provide data for decision-making and allow you to make the right call on inventory levels and product development.
Some data warehouses are also specifically built for fast data analysis and retrieval. With such, you may handle a lot of consolidated data with minimal or without support from IT. Other benefits may include the following:
- Better analytics of a business
- Enhanced data quality
- Historical insight
Business organizations may gain a lot from their analytical efforts by moving beyond a simple database to the world of a data warehouse.