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An in-depth look at data warehousing, with examples of its business applications.

  • arnut0
  • 5 days ago
  • 6 min read
The staff is retrieving data from the data warehouse.

In an era where data is a vital resource for organizations, a "data warehouse" has become a core element of business management, requiring accuracy and strategic decision-making. This article will introduce you to what a data warehouse is and the reasons why businesses should start investing seriously in a data management warehouse.


What is a Data Warehouse?

A data warehouse is a data storage facility designed to support analytical processing by collecting data from various sources within an organization, including ERP, CRM, POS systems, and online channels.

Simply put, a data warehouse is a collection of data across all dimensions of a business, used for analysis, report generation, or to support critical organizational decision-making.


Characteristics of a Data Warehouse

Data warehouses have unique characteristics that differentiate them from typical databases, as follows:

  • Subject-Oriented: Data is organized by type or topic, such as customers, sales, or products, rather than by workflow.

  • Integrated: Data from multiple sources, such as ERP, CRM, or POS systems, will be integrated into a single format for easy analysis.

  • Time-Variant: Data in the repository is stored according to time periods, such as monthly or annually, to allow for retrospective analysis and long-term data comparison.

  • Non-Volatile: Data stored in the repository is not deleted or overwritten like typical databases, allowing it to be used for analysis at any time.


Basic principles of data warehousing.

Data warehouse systems operate through a process called ETL (Extract-Transform-Load).

  • Extract : Extracts data from various sources, such as relevant ERP, CRM, or POS systems.

  • Transform: Converts the retrieved data into a standardized format for easy use.

  • Load: Load the transformed data into the data warehouse for storage and preparation for later analysis.

Once the data is stored in the repository, it can be immediately used with various analytics tools such as Power BI, Tableau, or Looker to create reports or perform in-depth analysis.


The benefits that organizations will receive from using a data warehouse.

A data warehouse can improve efficiency in several areas, including data analysis, decision-making, and reducing the workload for the IT department.


It helps you get a comprehensive view of the business in one place.

A data warehouse helps consolidate data from multiple sources, such as ERP, CRM, and POS systems within an organization, into a single location. This allows executives to gain a clear overview of the business without having to spend time searching for information from multiple sources.


It helps you make faster and more accurate decisions.

With the ability to update data in real-time, executives can make quick decisions based on up-to-date information, without having to wait for reports or data from multiple sources.


Reduce the burden on the IT department.

Once the Data Warehouse system is fully installed and configured, management and relevant departments can directly access data and reports through analytics tools such as Power BI or Tableau. This eliminates the need to rely on the IT team for data retrieval and report generation, allowing the IT department to focus on more complex and critical tasks such as server maintenance or improving organizational technology.


It is the foundation of BI and AI.

A data warehouse is a structured and systematically stored collection of data, making it easier to conduct in-depth analysis. This is a crucial foundation for Business Intelligence (BI) and Artificial Intelligence (AI), which help predict trends and improve organizational performance, such as developing Machine Learning models that can predict customer demand and production efficiency.


Who should use a data warehouse?

  • Organizations that use multiple systems in their operations, such as ERP, CRM, or POS, and want to consolidate data in a single location for easier analysis and decision-making.

  • For businesses that need daily data or to compare data over a period of time, such as daily sales figures or tracking performance results.

  • Companies that are growing rapidly and require a flexible data storage system to support future expansion.


Enhance your business efficiency with a data warehouse.

Examples of using a data warehouse in an organization.


Retail business

For retail businesses, a data warehouse allows you to analyze daily sales and track customer behavior in detail. This includes monitoring daily best-selling products, identifying purchase trends over time, and comparing purchases between new and returning customers. This data can be used to plan marketing strategies, promotions, or improve the efficiency of on-time delivery.


Manufacturing business

Manufacturing businesses can use warehouse data to control raw materials and stock in real-time, allowing them to track material usage, detect shortages, and accurately adjust production to match market demand. This helps reduce costs and increase production efficiency effectively. For example, when a customer's order changes, the system can immediately calculate the required raw materials and recalculate the production time.


financial business

In the financial industry, data warehouses enable efficient analysis of investment portfolio risk and return. For example, historical data can be used to assess stock market risk, analyze investment performance in response to economic fluctuations, and calculate long-term returns. Integrating data from multiple sources, such as capital markets, stock portfolios, and economic data, within a data warehouse further enhances the accuracy of investment decision-making.


Service business

Using a data warehouse in the service industry simplifies tracking customer satisfaction and employee performance by collecting data from customer surveys or online rating forms. This data can be analyzed immediately, and dashboards can be used to display analyses such as customer satisfaction levels over different periods or employee performance tracking. This allows relevant departments to plan targeted improvements to services or employee skills development.


Why do we need expert help designing a data warehouse?

Despite the abundance of ready-made tools, designing a data warehouse tailored to each business still requires hands-on knowledge and experience, for the following reasons:

  • If the data structure is unsuitable, it may lead to inaccurate analysis.

  • Obstacles may arise from choosing technology that doesn't match the size and needs of the business.

  • There is a risk of data leakage if data rights and security are not managed adequately.


Eclipse Computing has a team of Data & Analytics experts ready to help you deploy your data warehouse, from requirements assessment and system design to actual implementation. This ensures you get a high-performance data warehouse that can support future data growth.


Consulting and Data Warehouse development services using Eclipse Computing.

  • Evaluate the organization's data storage systems and processes.

  • Design the data warehouse structure to suit each organization.

  • Connects to ERP, CRM, and other data sources.

  • Develop a dashboard to provide executives with real-time data.

  • Training on usage is provided, along with ongoing support and consultation.

Whether you're just starting out or looking to improve your existing data architecture, Eclipse Computing is your trusted advisor.


If you want to drive your business with data-driven decision-making, starting with a data warehouse is a crucial step you shouldn't overlook. Choosing experts who truly understand your business will help your data investment yield a more worthwhile return.

Interested in consulting with experts about data warehousing systems? Contact Eclipse Computing.


References:


Frequently Asked Questions (FAQ)


How does a data warehouse differ from a database?

A data warehouse focuses on in-depth data analysis and strategic decision-making, while a database is used for storing daily operational data and transactional processing.

Why should businesses use a data warehouse even if they already have an ERP or CRM?

Because ERP and CRM systems collect specific data, but a Data Warehouse combines data from all sources, it allows for a more complete and accurate overall business analysis.

How is the ETL process important to a data warehouse?

ETL helps extract, transform, and load data into a consistent standard, making the data ready for analysis and reporting.

What size organization is suitable for a data warehouse?

Suitable for both medium and large organizations, especially those that use multiple systems and need to integrate data for strategic analysis.

How does having a data warehouse benefit management?

It provides real-time data, allows for accurate analysis of business trends, and enables faster decision-making based on centralized and structured data.

When should a growing business start a data warehouse?

You should start when you have multiple data sources, continuously growing data, or when you begin to need in-depth analytical reports that your existing system cannot provide.

Why do we need a data warehouse design expert?

Faulty design can lead to inaccurate data analysis, performance bottlenecks, and data security risks.


 
 
 

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