What Are The Benefits of Data Warehouse?

 

Most decision-makers fail to make any correct decisions because they have insufficient data and lack the proper tools required to gain insight into the data they have. They need help with data fluency and the necessary knowledge to understand and use data to make effective decisions. In today’s data-driven world, obtaining data is no longer a big issue. Most businesses are sinking into it. Thus, companies need easy access to organized, superior-quality data to make effective decisions.

To store data in multiple databases on unique platforms is no longer an adequate solution, as it makes maintaining data accuracy and accessibility a huge challenge. Data warehouses enable organizations to store, manage, and analyze data to make intelligent business decisions.

What do you know about Data Warehouse?

A data warehouse is a unified system that combines data from several sources within an organization and stores it in structured and semi-structured formats. It provides a unified view of all kinds of data about customers, business transactions, income, expenses, and more. The data warehouse is used for market analytics and business reporting. It can be stored in cloud and on-premise storage systems.

Types of data warehouses

Data warehouses are used for numerous purposes and are structured in one of the following formats:.

• Virtual data warehouse: It is a separate database that forms a virtual data warehouse but can be queried together.
• Enterprise data warehouse: Enterprise data warehouses consist of data from various sources spread within an organization.
• Data mart: A data mart is a small data warehouse used to analyze and report on specific aspects of a business.

Benefits of a Data Warehouse

More than sixty percent of the decision-makers worldwide said they could not make any decisions regarding their business due to various issues they face with data. The benefits of using a data warehouse resolve most of these issues. While the benefits of using a data warehouse depend on the business, let’s take a look at it.

1. Improve business intelligence and efficiency.

Many businesses across the world generate massive amounts of data from various sources. The sheer amount of information can sometimes appear overwhelming and render it unusable. Storing this data on multiple platforms is very costly. The data warehouse solves this problem by resolving chaos. It stores data in a centralized repository so businesses can identify and extract potential benefits through appropriate business intelligence solutions. Data warehouses also enable enterprises to reduce the cost of data management by consolidating data into one location rather than maintaining it across numerous platforms and paying multiple vendors.

2. Improved data quality management

Modern businesses generate data at a rapid speed. Therefore, data must be maintained to ensure that it’s current, accurate, and in the format required by the analytics platform. Thus, managing data can sometimes appear time-consuming, if the data is spread across different platforms. However, combining data into a data warehouse solution makes data cleansing cost-effective. To make a particular data set cost-effective, one should cleanse and sanitize the data, automating the process and eliminating the need for costly data quality management programs.

3. Increase ROI

Customers who use data warehouses achieve an ROI of 97 percent within a five-year tenure. This happens because of several benefits, and they are discussed as follows:.

• The enhanced quality and reliability of data aid organizations in making profitable business decisions.
• Easier data security helps businesses reduce the cost of their data security efforts.
• Increase in revenue from more effective and efficient business operations.

Data warehouses provide organizations with a centralized location to store and protect sensitive data. Companies use data warehouses for the following reasons:.

• It aids in improving decision-making speed and efficiency.
• It aids you in maintaining the accuracy and reliability of your data.
• Track long-term trends for better forecasting.

To make your business fiercely competitive in this fast-paced digital era, it is very clear that the company must take advantage of the features and benefits of a data warehousing system.