The Value of Data Warehousing

Data warehousing, also known as DM in information technology circles, is the process of combining multiple databases across an organization. The actual number of database sources will vary based on organizational needs. These databases and information sources feed into one central database that is easy to manipulate and customize by users to generate reports.

Data warehousing is used in many organizations for querying, analysis, reporting, and to track trends over a specific timeframe. The ability to track data from various sources allows companies to consistently refine:

• strategic planning initiatives
• business protocol
• forecasts and projections
• long term plans

In most cases, the data that is stored in data warehouses is read only. It cannot be manipulated without the creation of a new query. Therefore, data warehousing is efficient at providing organizations with a broad overview of current happenings, events, new, and data.

Reporting is the main function of data warehouse databases. This reporting function occurs in three main steps:

 

1. Staging: The staging step utilizes raw data from multiple sources and stores it for use by end users.

 

 

2. Integration: Data is integrated into the central database or data warehouse and a record is developed that is accessible for users.

 

 

3. Access: Users extract data from the data warehouse database.

 

Having current data is an integral part of decision making for any company. Data warehousing is a key part of ensuring top decision makers have all the information they need to make the best possible decision for their organization. There are a number of applications that data warehousing can be applied to in organizations:

• Trend Analysis: Decision makers must have up to date information to examine trends and predict future behavior in the market.
• Retail inventory management: Having current data regarding inventory levels and replenishment needs will help decision makers with managing new and existing inventory levels.
• Decision support: Every decision has to be backed with the latest data
• Forecasting: Forecasting future sales, financial ventures, and movement in the market requires diverse data sets from multiple sources.

There is no debating the value that timely data can provide an organization. Data warehouses streamline the data collection process by drawing on multiple sources and create a common data model regardless of where the data derives.

The streamline approach to data collection provides a number of key benefits to organizations:

 

• Information analysis is less complicated as data is viewed from one source rather than a number of data models.

 

 

• Data warehouses can work in conjunction with existing application such as CRM’s to enhance current functionality and improve business practices.

 

 

• Data warehouses eliminate inconsistencies. Information is formatted, organized, and duplicate information is removed to ensure users receive only the highest quality of data in a format that is easy to read and interpret.

 

 

• Data warehouses can generate effective reports that compare actual performance against forecasts, and trends.

 

 

• All data from the warehouse can be stored and retrieved without having to worry about it being purged from its original source.

 

Data warehousing helps support upper management and organization decision making. It provides key stakeholders with diverse data sets from many different sources in order to create a broad view of an organizations business practices, market position, and strategy at a point in time. Access to this data is plays a vital role in organizations and is often the competitive edge that separate competitors.