Data
Warehouse: A Business Intelligence Tool
Group 5
Kacie
Johnson, Summer Bird,
Key Words: Data Warehouse, database, subject oriented, integrated, nonvolatile
A data warehouse is a relation database that is designed for query and analytical processing rather than for transaction processing. It usually contains data that is taken from transaction data. Moreover, it can include data from other sources also. A data warehouse has an extraction, transportation, transformation, a loading solution, an online analytical processing engine, client analysis tools, and other applications that aid the process of gathering data and getting it to business users (Oracle Corporation, 1996, 2002). The data warehouse of today is a user-accessible database of historical and functional company information directed by a mainframe. Rather than being set up according to computer logic, it is set up according to business. It allows users to move through large amounts of important consumer data, looking for relationships and making queries. However, a company must maintain their data warehouse and make sure that all their information is accurate (Darwinmag.com, March 21, 2001). A data warehouse collects, organizes, and makes data available for the purpose of analysis, which gives management the ability to access and analyze information about its business (SDG Computing, 1995-2005).
The data warehouse came about during the early 90's. Traditional information systems did not provide relevant data quickly and efficiently. Therefore, the idea of the data warehouse was formulated. The world saw increased numbers and types of databases over the course of the latter half of the 20th century (Wikipedia, 2006).
A data warehouse is significant because it is a subject oriented, integrated, and nonvolatile collection of data in support of management’s decision making process. Subject oriented means that the data gives information about a specific subject rather than about a company’s on-going operations. Integrated data means that the data is collected up into one data warehouse from a variety of sources and merged into a whole. Time variant means that all the data in the data warehouse is identified within a particular time period. Non-volatile means that data is added, but never deleted (SDG Computing, 1995-2005).
Data warehouses hold large amounts of information majority of the time. These are sometimes divided into data marts, or smaller logical units. Data marts allow for easier reporting by keeping important data together in one area. Integration and separation are the two basic ideas that guide the creation of a data warehouse. Integration of data from distributed and differently structured databases, which facilitates a global overview and comprehensive analysis of the data warehouse. Separation of data is used in daily operations from data used in the data warehouse for purposes of reporting, decision support, and analysis and controlling. The basic building blocks of data warehouses are source data, data staging, data storage, information delivery, metadata, and management and control (Wikipedia, 2006).
Data warehouses can prove very valuable to a company when they are implemented and maintained properly to organize information. Data warehouses track information to find trends that can aid a company in making strategic business decisions. These decisions can help cut costs and give a company relevant information that is not available to competitors. A data warehouse can provide up to date and accurate information which can lead to strategic decision making when tracking a product or service (Dwinfocenter.org, 1995, 2005). For example, telecommunication companies use data warehouses to track customers’ calls and see where those calls are going. Instead of sending out mass e-mails, solicitation calls, or surveys, these telecommunication companies use data warehouses to find out what kind of plans and services the customers’ are interested in (Darwinmag.com, March 21, 2001). This cuts costs by not having to do mass research to find out what customers want from their telecommunication company.
The main reason companies use data warehouses are to cut costs and boost revenues. Data warehouses save time by organizing information and giving accurate, up to date information. This allows companies to offer better customer service. If a competing company is offering better customer service, then a customer most likely is going to switch over to the company with better customer service. This superior customer service is a competitive advantage (Darwinmag.com, March 21, 2001). Also, data warehouses help clean up old data that is no longer useful. Data warehouses allow a company to avoid old data and focus on the pertinent current data. This clean up allows a company employees to save time by not having to query old information. Therefore, an employee is able to focus on new information and is able to work more efficiently only dealing with current data (Dwinfocenter.org, 1995, 2005). This employee efficiency gives the company a competitive advantage over a competing company that does not use data warehouses to rid old data out of its systems.
In conclusion, data warehouses are used to query information into a logical structure to be used for business analysis. Data warehouses enable companies to be more efficient in finding out what products and services to offer customers. These data warehouses organize, update, and clear irrelevant old data. Therefore, companies are able to make wise business decision by measuring trends and needs of customers. Finally, data warehouses will keep evolving into the future, thus allowing companies to organize information efficiently to meet the ever changing wants and needs of customers.
References
Wikipedia.org. (2006). Data Warehouse.
Retrieved April 23, 2006, from < http://www.en.wikipedia.org/wiki/Data_warehouse>
Webopedia.com. (January 29, 2004). Data Warehouse.
Retrieved April 23, 2006, from <http://www.webopedia.com/TERM/D/data_warehouse.html>
SDGComputing.com. (1995-2005). Data Warehouse.
Retrieved April 23, 2006, from < http://www.sdgcomputing.com/glossaary.htm>
Oracle Corporation Inc. (1996, 2002). What is a Data Warehouse?
Retrieved April 23, 2006, from
<http://www.lc.leidenuniv.nl/awcourse/oracle/server.920/a96520/concept.htm#50413>
Darwinmag.com. (March 21, 2001). What is a Data Warehouse?
Retrieved April 23, 2006, from
<http://www.darwinmag.com/learn/curve/column.html?ArticleID=50>
Dwinfocenter.org/. (1995, 2005).
The Data Warehousing
Retrieved April 23, 2006, from <http://www.dwinfocenter.org/>