When information technology (IT) laid the foundations for organizational efficiency, at the same time, the increase in computing power and the growth of analytical tools and methods led to the appearance of a product called data warehouse. Data warehousing refers to a set of new concepts and tools that combine to become technology. Where or when is it important? Well, the data warehouse becomes useful when you want information on all methods of design, maintenance, creation, and data recovery!
In other words, a data warehouse is an organized and ingenious method for managing and reporting data scattered throughout the organization. It is created to support the decision-making process in the organization. As Bill Inmon, who coined the term, defines: “Warehousing is a non-volatile, subject-oriented data collection, integrated and variable over time to support the administration’s decision-making process.”
Over the past two decades, organizations have relied on supporting data warehousing.
Why not? Organizations have good reason to consider data warehousing, as it is an important tool to maximize your investment in the information that is collected and stored over a long period. A distinctive feature of the data warehouse is that it records, gathers, filters and provides necessary information to several systems at higher levels. The main advantage of having a data warehouse is that thanks to the data warehouse, an organization can efficiently deal with all the problems encountered by providing essential information to an interested party without interfering with the existing production system. This is a time-saving! Let’s see some other benefits of having a data warehouse in an organizational environment:
- When using a data warehouse, an organization can provide a standard data model for different areas of interest, regardless of the source of the data. It becomes easier for organizations to communicate and analyze information.
- With the data warehouse, you can find a series of inconsistencies. These inconsistencies can be eliminated before downloading the information, which makes the reporting process much more comfortable and more comfortable.
- The presence of data warehousing means that the information is under the control of the user or organization.
“Since data warehousing is different from operating systems, it helps to obtain data without slowing down the operating system.”
- Data warehousing contributes to the value of operational business applications and customer relationship management systems.
Data warehousing has evolved due to the need to help organizations with their administration and business analysis to meet various requirements that their operating systems cannot reach. However, this does not mean that all projects will succeed with data warehousing. Sometimes, multiple methods and erroneous data used in the process can cause errors and failures.
The data warehouses entered the image of the conditions of the organization in the late ’80s and early ’90s, and since then this type of computer database has helped organizations to maintain information for the decision making of the administration or the departments.