What can business analysts gain from having a data warehouse?


Data Warehousing is an approach that can collect and handle data from multiple sources to provide the business a significant business insight. A data warehouse is specifically created for the goals of support management decisions.

In simple terms, a data warehouse defines a database that is maintained independently from an organization’s operational databases. Data warehouse systems enable the integration of several application systems. They provide data processing by supporting a solid platform of consolidated, historical data for analysis.

A data warehouse supports an OLTP system by providing a place for the OLTP database to offload records as it accumulates, and by providing services that can complicate and degrade OLTP services if they were performed in the OLTP database.

Data warehouses generalize and centralize data in multidimensional space. The development of data warehouses includes data cleaning, data integration, and data transformation and can be viewed as a significant pre-processing step for data mining.

It supports online analytical processing (OLAP) tools for the interactive techniques of multidimensional data of different granularities, which supports efficient data generalization and data mining. There are several data mining functions, including association, classification, prediction, and clustering can be integrated with OLAP operations to build up interactive mining of knowledge at various levels of abstraction.

A data warehouse is continually a physically separate store of data transformed from the application data discovered in the operational environment. Because of this separation, a data warehouse does not need transaction processing, recovery, and concurrency control structure. It generally needed only two operations in data accessing such as original loading of data and access of data.

Firstly, a data warehouse can support a competitive benefit by presenting relevant data from which to compute performance and develop critical adjustments to support win over competitors.

Secondly, a data warehouse can improve business productivity because it can quickly and efficiently gather data that accurately defines the organization.

Third, a data warehouse supports user relationship administration because it supports a consistent view of users and items across all lines of business, all branches, and all markets.

Finally, a data warehouse may bring about cost reduction by tracking trends, patterns, and exceptions over long periods consistently and reliably. It can design an efficient data warehouse it is required to learn and analyze business requirements and generate a business analysis framework.

The construction of a large and complex information system can be viewed as the construction of a large and complex building, for which the owner, architect, and builder have different views.

Updated on: 16-Feb-2022

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