Benefits of Data Warehousing
Data warehousing simple involves merging data from varied sources or departments into one database. Since data warehousing forms one comprehensive database, you can use several sources but the final outcome must be homogenous. Companies today spend vast resources implementing data warehouses as they help present data in a transparent manner to help in decision making.
1. Facilitates strategic planning
Large Corporations now use data warehousing to analyze developments over time. Data warehousing is the backbone of the company’s operations, but most executives use it to facilitate strategic planning. As a result, business forecast, models and trends can be made. If the executive wants to modify the data, new queries have to be made upon completion.
2. Better data analysis
Another benefit of data warehousing is reliable data analysis. Today, large corporations and enterprises rely on data warehousing for data analysis. On the other hand, smaller companies that wish to analyze one subject are more specific in their reporting and storage. In other words, data warehousing groups data from different sources into data marts.
Data warehousing also offers a great deal of flexibility in operation systems. Since they operate separately from other operation processes, data retrieval can be done with ease without affecting other operation requirements.
4. Resolves inconsistent data
Before the data is grouped into one database, all the inconsistent/dirty data is resolved. As a result, the processes of reporting and data analysis are simplified. Additionally, data warehousing has a positive impact on operational business applications, popularly known as CRM systems.
5. Improves decision making
By compiling data from several sources for reporting and analysis, data warehousing improves decision making. This technology is invaluable in business processes as it allows executives to merge data into one database.
The major drawback of data warehousing is cost, which means that only wealthy corporations can implement them.