Insider’s Guide to Data Warehouses
When your business needs to analyze raw data from multiple sources, you want the most up-to-date information, and you want it quickly. Data warehouses make this possible.
What Are Data Warehouses?
Physical warehouses organize and store merchandise, usually on a grid. Employees catalog every item, so they know exactly how to locate it and have precise measurements of everything that’s available. Data warehouses do the same thing for your organization’s data, keeping it all in one location where it’s instantly accessible.
Logical data warehouses act as a window to show what’s actually in database storage, as well as what was there in the past. In a physical warehouse, it can be helpful to see what has already left the building and what merchandise is damaged and no longer available for use. Access multiple sets of data for a clear picture and accurate insights.
Data warehouses are separate from operational systems, but they keep data available for queries. They often include redundant data so they can supply users with multiple information views in easy-to-understand arrangements.
Data Warehouses vs. Databases
Data warehouses and databases both store large quantities of data. The difference is in how they access and analyze that data. Databases can sift through all the information they contain and provide snapshots of any given moment, but they don’t analyze that data.
A data warehouse can search multiple databases and make analytics fast and easy. They’re efficient at reading and retrieving large sets of data and aggregating them. Use complex queries to guide analysis and decision making within your organization.
How Companies Use Data Warehouses
Data warehouses support online analytical processing (OLAP) that allows businesses to do the following:
- Monitor and adjust organizational performance
- Track and improve marketing campaigns
- Search and analyze information from multiple sources
- Increase logistics and operations efficiency
- Predict future growth based on current trends
Data Warehouse Benefits
Data warehouses provide the analytical capabilities vital to staying competitive in an ever-changing market. Benefits include the following:
- The ability to quickly access data from multiple sources sets businesses apart. In addition, data warehouses quickly reconcile data irregularities, preventing time-consuming manual comparison.
- Data warehouses store historical data, so you can explore data from different time frames to pinpoint problems or extend trends into the future.
- They generate more revenue. Companies that use data warehouses and supporting business intelligence (BI) systems save more than companies that don’t.
Building a data warehouse is a sizeable project. The right partner can configure your database to the needs of your organization. Contact Indy Data Partners to find out more.