What is the Data Warehouse and what is it for?

You may not be very familiar with the word Data Warehouse. However, the term database has been known since 1963, and refers to a set of data that is stored in an organized manner (Data Warehouse). Normally, those who make most use of this system are companies, but why do they do it? Their objective is to be more efficient when making a decision.

Have you ever heard of the Data Warehouse Here you will learn what it is, and how it enables the smooth running of business operations.

What is Data Warehouse and how it works?

You could say that the Data Warehouse is nothing more than a warehouse or repository of business-oriented data. But it’s something much more complex than that.

What makes data warehousing different?

As an electronic system, it is used to store, organize, integrate and debug information that will help you make decisions in the company you work for.

This database was created to complement the Business Intelligence (Business Intelligence or Business), given its speed and efficiency, is responsible for analyzing Big Data, compare from a technical point of view, in order to provide a reliable solution. It is ideal to achieve the smooth running of a company, especially when it is necessary to establish objectives, standards and even to establish risks.

Its functionality lies in the structure it offers when storing information. It manages to obtain homogeneous and reliable information, which allows the quick and organized consultation of the same. All its architecture helps you to access data, clean information according to its usefulness and find solutions in terms of inventory, purchase or sale, among others.

It should be added that the information integrated to this warehouse is protected, giving only the owners of the company access, and providing great visibility in the use and abuse of data. In addition, it is constantly being updated.

Next, I will explain to you what characterizes this enterprise database.

Data Warehouse -Data Warehouse
Data Warehouse -Data Warehouse

What characterizes the Data Warehouse

When this term was first exposed, it was known that it would be more than just a database. Keep in mind that with the Data Warehouse you can achieve the support of a wealth of decisions, whether you need to set prices or invest in productivity. But, what characterizes this sophisticated database.

  • Since time is essential to be able to perform a data analysis, the Data Warehouse takes time as a variable in order to compare different trends and business activity in the present.
  • The data stored is not volatile, in this database it cannot be modified. Hence, any information is permanent. Therefore, the values incorporated lately will be added without deleting the ones already written in it, that is, they are incremented.
  • If there is inconsistency in the ones you will store in the Data Warehouse you must delete them, since the data needs to be in an integrated structure. That is why this repository will adapt to the needs of the company.
  • Something interesting about this system is that it is organized by subject, making it easy for users to access. You can store customer data in a table, so you can respond quickly to customer requests.
  • On the other hand, as a data warehouse contains metadata, you can know the origin of the information, reliability, calculation, among others. In addition to simplify and automate the data, with the purpose of passing them to the information systems.
  • Through the Business Intelligence tools (DSS, EIS or CMI) you can perform queries, reports and analysis that allow you to know the information that exists and its meaning

Of course, you should keep in mind that each of the aforementioned features allow the Data Warehouse to offer you better business functionality, as well as being reliable.

What are the advantages and disadvantages of using a Data Warehouse

Many positive aspects of this enterprise database have been mentioned, which, if you are encouraged to use it, will give your company organization when making decisions, but take a look at the main advantages Data Warehouse offers.

  • It is an easy-to-install system.
  • It improves public relations, i.e., the relationship between suppliers and customers.
  • You can reduce operational costs and respond quickly
  • It achieves better communication between different departments.
  • Because you can store data for decision making, you get to know the good and bad results that arise in the business, and you can also consult historical data.
  • You get to have a better quality of data, once the information is structured and documented.
  • Through analysis, you can predict what situations will arise according to old data.

However, although a Data Warehouse is very useful for a company, it presents certain disadvantages, such as:

  • Its maintenance tends to be a bit costly.
  • Processing information is somewhat delayed, hence the decisions you make cannot be made in real time.
  • It has a rather complex design, hence it calls for restructuring in operational systems.
  • The biggest disadvantage is that it is not recommended applying them to small companies. This is because the effort made to create an enterprise database would be much greater than the benefits you will offer.

Any electronic system has both positive and negative aspects; however, the advantages of this database are greater, since it has been designed so that large companies have their information updated and organized. It allows you to deliver the required information in the right formats and when you need it.

The information offered becomes consistent, accessible, adaptable, and with solid foundations in decision making, that’s why this data warehouse is useful.

Of course, just like this there are many other systems that can help you meet the objectives you want, you need one that fits your company’s needs.

Remember the objective of this system, is to be able to gather data in order to obtain useful information for the company, and compare them according to different sources. Using the BI (Business Intelligence) and complementing it with this warehouse, you can obtain about processes of purchase, sales, finance, etc.

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