The Benefit of Data Warehouse in Business

If you run a corporate business, you'll require a secure data storage place. Implementing a data warehouse is one way you may use. So, what exactly is a data warehouse? What impact does it have on your company's performance and quality?
April 6, 2022

What is a Data Warehouse?

Data warehousing (DW) is a method of gathering and analyzing data from many sources in order to get useful business insights. Typically, a data warehouse is used to integrate and analyze corporate data from many sources. The data warehouse is the heart of the business intelligence (BI) system, which is designed to analyze and report on data.

It's a collection of technology and components that helps with data strategy. It refers to a company's electronic storage of a huge volume of data that is intended for inquiry and analysis rather than transaction processing. It is a method of converting data into information and making it available to people in a timely manner so that it can be used to make a difference.

By analyzing a set of data in a structured manner, you can extract more accurate information for use in determining a company's stance on a certain issue. It's for this reason that gudang data is one of the most important parameters in business intelligence.

How Does a Data Warehouse Work?

A Data Warehouse is a central repository where data from one or more data sources is stored. The transactional system and other relational databases feed data into a data warehouse. The examples of data sources, such as Structured Data, Semi-Structured Data, and Unstructured Data. 

Users can access the processed data in the Data Warehouse using Business Intelligence tools, SQL clients, and spreadsheets after the data has been processed, transformed, and ingested. A data warehouse combines data from various sources into a single, comprehensive database.

An organization may examine its consumers more holistically by combining all of this information in one place. This ensures that it has taken into account all of the accessible data. Data mining is made possible by data warehousing. Data mining is the process of looking for patterns in data that could lead to new insights.

Types of Data Warehouse

The following are the three primary types of Data Warehouses (DWH):

  • Enterprise Data Warehouse (EDW): An EDW is a data warehouse that stores information from multiple sources. A centralized warehouse is an Enterprise Data Warehouse (EDW). It offers decision-making assistance to the entire company. It provides a uniform approach to data organization and representation. It also has the capability of classifying data by subject and granting access based on such divisions.
  • Data Store for Operational Purposes: Operational Data Stores, or ODS, are simply data stores that are required when neither a data warehouse nor an OLTP system can meet an organization's reporting needs. The data warehouse in ODS is updated in real time. As a result, it is extensively used for mundane tasks such as keeping employee details.
  • Data Mart: The data warehouse is subdivided into data marts. It is tailored to a specific business line, such as sales, finance, sales, or finance. Data can be collected directly from sources in an independent data mart.

The Benefit of Using Data Warehouse

Improved data analytics, more revenue, and the capacity to compete more strategically in the marketplace are all advantages of a data warehouse. A data warehouse drives a more effective data strategy by efficiently supplying standardized, contextual data to an organization's business intelligence software. The following are some of the benefits that can be obtained by implementing a data warehouse.

  • Data Analytics Can Be Made More Powerful And Faster

Business intelligence and data analytics are the reverse of instinct and intuition. High-quality, consistent data is required for BI and analytics, and it must be delivered on time and be available for data mining quickly. This strength and speed are enabled by a data warehouse, which provides a competitive advantage in important business sectors such as CRM, HR, sales success, and quarterly reporting.

  • Increases Revenue

A data warehouse's primary strength is creating more standardized and higher-quality data, and this critical strength correlates to large income advantages. The data warehouse formula is as follows: better business intelligence leads to better judgments, and better decisions lead to a higher return on investment in every sector of your company.

Most importantly, these income increases compound over time as the firm improves as a result of better decisions. In other words, a high-quality, fully scalable data warehouse is more of an investment than an expense – one that adds exponential value like few others.

  • Interacts with both on-premise and cloud-based systems

Today's data warehouses, unlike traditional databases of the past, are designed with multi cloud and hybrid cloud in mind. Many data warehouses are now completely cloud-based, and even those that were designed for on-premise will often work well with a company's cloud-based infrastructure. As a side note, this cloud-based approach also implies that mobile users will have easier access to the data warehouse, which will benefit sales reps in particular.

  • Enhances Data Consistency And Quality

Usually a business creates data in a variety of formats, including structured and unstructured data, social media data, and sales campaign data. A data warehouse translates this information into the formats that your analytics tools require. Furthermore, a data warehouse ensures that data provided by multiple business divisions is of the same quality and standard, allowing for a more efficient analytics feed.

  • Enhances Productivity

Gathering data from numerous sources takes a long time for a business user or a data scientist. It's significantly more convenient to have all of this information in one location, which is why a data warehouse is so useful.

Furthermore, if your data scientist requires data to run a quick report, they do not require assistance from tech support to complete this activity. A data warehouse makes this information easily available — in the correct format – boosting the overall efficiency of the process.

  • Query Performance And Insights Have Significantly Improved

Constant business intelligence queries, from traditional databases to data marts, can impose a burden on an analytics infrastructure. The usage of a data warehouse to better handle queries relieves some of the strain on the system.

Furthermore, because a data warehouse is designed to handle large amounts of data and a variety of complex queries, it is the backbone of every company's data analytics strategy.

  • Data Protection

A number of significant advancements in data warehouse security have improved the overall security of enterprise data. Techniques like a "slave read only" setup, which prohibits dangerous SQL code, and encrypted columns, which secure personal data, are examples of these advancements.

On their data warehouses, some companies create unique user groups that can include or exclude specific data pools and even grant permission row by row.

  • Offers a Significant Competitive Advantage

The bottom line benefit of a data warehouse is that it allows a company to strategize and execute more effectively against competitors in its industry. Greater insight in data mining can drive decisions that result in higher sales, better focused products, and faster response times, thanks to the quality, speed, and historical context supplied by a data warehouse. In short, a data warehouse helps businesses make better decisions, which offers them a competitive advantage.


A data warehouse is a key component of effective and efficient data mining, which is at the core of any modern business's competitive strategy.

To make excellent decisions, you need to be able to swiftly look back at early trends and have accurate data that is appropriately formatted. A data warehouse allows decision makers to learn from past trends and issues by providing this historical insight. The benefit of a data warehouse is, in essence, continuous improvement.

A data warehouse can also scale with a business; as a company grows, it requires more and better data, and data warehouses can (with the right technology) become increasingly robust in their ability to handle queries.

The true business benefit of having a data warehouse is that it enables smarter, metric-based decisions on everything from product releases to inventory levels to key sales levels, resulting in a significant increase in competitive strategy. Without an advanced data warehouse, it's impossible that any company can compete in today's market.

Written by Denny Fardian
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