Concept
A data warehouse is an electronic repository of large amounts of information about a business or organization. This is an important component of business analytics, using analytical techniques on business data.
The concept was introduced in 1988 by two IBM researchers, Barry Devlin and Paul Murphy. The need for data storage grows as computer systems become more complex and must handle increasing amounts of data. An important book on data storage is WH Inmon’s “Building a Data Warehouse,” first published in 1990 and has been reprinted many times since.
It is used to provide insight into a company’s performance by comparing consolidated data from multiple heterogeneous sources and is designed to run questionnaires and analysis on historical data. history is derived from transactional sources.
How does Data Warehouse work?
Once the data has been loaded into the warehouse, it is immutable and cannot be modified as the data warehouse operates analytics on what happened by focusing on changes in the data over time. Stored data must be stored in a way that is secure, reliable, easy to retrieve and manage.
There are certain steps to be taken to create a data warehouse. The first step is data extraction, which involves collecting large amounts of data from multiple source points. After the data is compiled, it goes through data cleaning, a process of data processing to find errors and correct, or eliminate any errors found.
The cleaned up data is then converted from the database format to the repository format. When stored in the warehouse, the data will be sorted, consolidated, and summarized, etc., so that it is coordinated and easier to use. Over time, more data is added to the warehouse as more data sources are updated.
Businesses can store data for use in data exploration and mining, finding patterns of information that will help them improve their business processes. A good data storage system can also make it easier for different departments in the company to access each other’s data.
For example, it can allow a company to easily evaluate sales team data and help make decisions about how to improve sales or streamline departments. Businesses can choose to focus on customers’ spending habits to better position their products and increase sales.
Data warehouses and databases
Capital is two different concepts, but many people still confuse these two concepts. Here are some basic differences between a database and a data warehouse:
Understandably, a data warehouse is much larger in size than a database, it may even include a database in it, in other words, a data warehouse is a type of huge database. designed to optimize analysis and reporting workflows.
A database is usually an application, program or system that holds information in a resource.
A data warehouse is a collection of different sources and information systems to organize, analyze, and output reports according to user queries. It is important to note that the data warehouse may be pulled from many different databases (or may not be).