What Is Data Warehousing?

What is Data Warehousing? ? In simple terms, it is the science of data storage to be used for analysis later on. Specifically, data warehousing involves the electronic storage and retrieval of data in order that data analysis may be conducted for supporting important business decisions or for calculating a business result.

When talking about what is data warehousing, it is vital to note that data warehouse techniques offer predictive, present, and historical business operation views via the evaluation of both historical and current business information. This is usually performed using relational database models to offer a visual representation of data that will be easily understood by users in order for them to make more the correct business decisions.

In order to fully comprehend the concept of what is data warehousing, the term data warehouse should also be properly defined. In general, a data warehouse is utilized for storing important data needed by users of an organization for analyzing and reporting. A successful data warehouse design model must come integrated with an efficient process capable of gathering and loading data into the database. Additionally, data contained in the warehouse should seamlessly flow from source points to target points, which means that the compiled information should be dissimilar between two points in a given time.

Further, according to experts, the classic data warehouse definition states that a data warehouse should ideally be non-volatile, subject specific, time variant, and integrated. Being subject specific means that the database must only store data categorized under a clearly defined scope, such that a sales data warehouse should only store sales related information.

Non-volatile means that when stored data are not deleted or removed by a user; it should stay where it is no questions asked. Being integrated means that all contained data makes perfect sense and that all figures and facts are connected with each other in some way to represent a point of truth. Lastly, being time variant means that data is inconstant since as new information is loaded into the database, the size of the database also grows. It is important to note however that not all data is time variant, such as data pertaining to scientific and historical facts, but may also be stored for analysis in a data warehouse.

Based on the points made above, there is a need for a more updated and accurate definition of a data warehouse as it relates to the current concept of what is data warehousing. To sum up, a data warehouse can be defined as an electronic storage of integrated, yet clearly defined data that users of an organization can use to make intelligent business analysis and decisions. To understand what is data warehousing further, as well as its benefits to users, let’s say that a business named “ClothingEtc.” has over 500 stores nationwide.

This clothing company keeps a data warehouse for storing all data they accumulate from their 500 shops across the U.S. in order to evaluate all the gathered information and address important business decisions for their stores. Once ClothingEtc. ha gathered all pertinent data related to making more informed business decisions, users of the company will then apply useful business decision methods for evaluation and making reports.

Because the clothing company can easily access all information about purchases and sales from their 500 stores in a central repository, they can use the gathered data to learn, track, and organize each store’s inventory, the status of each store, which store earns the highest and lowest, as well as the products that sell and don’t sell and make the appropriate business decisions regarding them.