Data Warehouse and Its Benefits

A data warehouse is a database used for reporting and its subject oriented, integrated, nonvolatile, time variant collection of data helps management in decision making. A data warehouse maintains its functions in three layers which includes staging, integration and access. Along with providing cleaned, transformed, cataloged data to the management it also helps to retrieve and analyze data, to extract and transform the load data and to manage the data dictionary, which are also considered as essential components of a data warehousing system.

Benefits of Data Warehouse:

• One of the major benefit of using the data warehouse in the organization is its ability to analyze and execute business decisions based on data from multiple sources.
• A data warehouse provides a common data model for all data and this makes it easier to report, analyze and retrieve information such as sales invoices, order receipts etc.
• Inconsistencies are identified and resolved before the loading data into the data warehouse which simplifies reporting and analysis.
• Information in the data warehouse is under the control of data warehouse users and if the source system data are removed, the information in the warehouse can be stored safely for extended periods of time.
• A data warehouse can provide savings in billing processes, reduce fraud losses, and reduce the cost of reporting when used efficiently by the management.
• The data warehouses can provide analysts with pre calculated reports and graphs and this increases the productivity of business analysts.
• They provide the data without slowing down operational systems as they are independent of operation systems.
• Data warehouses can record historical information for data source tables that are not set up to save an update history.
• Data warehouses can work in conjunction with other business applications like customer relationship management and can enhance their performance.

Data ware houses have much more benefits than the multiple data storage systems. These solve all the problems associated with data management.