Why Every Business Needs an Enterprise Data Warehouse
Data storage is an important element of any business because it enhances daily business operations. Enterprise data warehouses provide companies with better storage solutions for their data. A data warehouse is a centralized information repository where data from different external systems, transactional agencies, or applications is integrated. The warehouse offers a safe haven for data storage separate from the operational systems. Data warehouses are designed for data mining, decision support, ad-hoc queries, and analytical reporting. The separation allows queries to be done without affecting the system that handles the primary transactions of the business. Data warehouses help businesses to efficiently extract data from transactional systems and convert the data into workable information. Processing large and complex queries is easy when a data warehouse is involved. There are many benefits of having an enterprise data warehouse.
- Improves Query and System Performance
A data warehouse provides businesses with easy and effective data access and retrieval. Enterprise data warehouses store large amounts of data and provides quick results for queries. Operational systems focus on creation and modification of data, which is different from analytical systems. Although data warehouses are designed for data retrieval and analysis, they also ensure efficient management of individual records. Data warehouses enable business owners or decision makers to make better decisions based on their needs.
- Enhances Business Intelligence
Data warehouses helps to improve access to data, which makes it easy for business owners to gain insights into their businesses. This eliminates the need for business executives and directors to make decisions based on limited data or personal instincts. All decisions that have an impact on the strategy and operations of a firm depend on credible fact that should be backed up by the information in the data warehouse. An enterprise data warehouse contains statistics and facts that can be retrieved prior to making a decision. In addition, data warehouses enable business owners and executives to combine business intelligence and data warehousing directly to help them make decisions regarding financial management, inventory management, sales, and market segmentation.
- Easy and Quick Access to Data
Ability to make quick decisions is one of the factors that give companies a competitive edge. When a business owner can access data across multiple sources quickly, it means that he/she will not waste valuable time trying to retrieve the data from various sources individually. Enterprise data warehouses enable business owners to make fast and informed decisions with or without the support of the IT department. In addition, a data warehouse can have internally controlled scheduled data integration routines known as ETL. The routines gather data from various company systems and convert the data into usable format. Business owners can access the data on a single interface while other users can query the data directly with minimal information technology support. In addition, ETL eliminates delays associated with IT professionals creating queries and reports because users can generate the reports on their own. Enterprise data warehouses enable business owners to spend more time doing data analysis instead of data collection.
- Promoting Business Intelligence across Multiple Platforms
The information systems of many organizations consist of multiple subsystems in different platforms. However, conducting business intelligence is only possible when data from the multiple systems can be merged into one. Data warehouses solve this problem by integrating available data sources and making them accessible in one place. This eliminates the possibility of having duplicate data and allows for easy extraction of information. A data warehouse provide a single interface where all company data can be accessed simultaneously.
- Data Consistency and Quality
Because data warehouses gather information from multiple sources and transform it to a single format, it provides businesses with more consistent and accurate data. Standardized data tends to be accurate, which enables business owners to make informed decisions. Individual departments including operations, finance, marketing, and sales can use data warehouses to make their own report and queries. Each unit will therefore produce results that are consistent with other units in the organization. This fosters teamwork and confidence in the organization’s data.
- High Returns on Investments
The increase in revenue that a business experiences as a result of an investment is referred to as return on investment. ROI or return on investment also refers to the decrease in expenses that a business experiences as a result of an investment or a project. Data warehouses enable businesses to use their data to increase profits or cut costs. Research indicates that business intelligence can have a substantial impact on the financial status of a business.
- Historical Intelligence
A data warehouse can contain data collected and stored within the transactional system over many years. Many businesses use transactional systems to create reports without including historical data. In comparison, data warehouses with large amounts of historical data can undertake advanced business intelligence using trend analysis, time-period analysis, and trend prediction. Enterprise data warehouses enable business owners to conduct advanced analysis of their businesses and create reports for multiple periods.
Enterprise data warehouses enable businesses to undertake online business analytical processing and allow users to gain insights into business operations. This is made possible through access to data stored in various business systems. Business owners can use the data provided by data warehouses to make better business decisions and come up with effective business strategies.
Kalyan Banga222 Posts
I am Kalyan Banga, a Post Graduate in Business Analytics from Indian Institute of Management (IIM) Calcutta, a premier management institute, ranked best B-School in Asia in FT Masters management global rankings. I have spent 14 years in field of Research & Analytics.