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In the late 1980s, data warehouses were created to help data move from operational systems into decision-support systems (DSSs). These early data warehouses required a tremendous amount of redundancy. Most organizations maintained numerous DSS environments for their various users. Despite the fact that the DSS environments utilized much of the same data, there was often duplication in the collection, cleaning, and integration of that information. With data warehouses becoming more and more efficient, they changed from supporting traditional BI platforms to being versatile analytics infrastructures that could support many applications, such as operational analytics and performance management. In this article, you will learn the key benefits of data warehouses for businesses.
What Are Data Warehouses?
Data warehouses are systems meant for managing data so that business intelligence querying and business data analytics can be easily done. They contain a lot of historical data, making them ideal for analysis purposes. The data you’ll find inside a data warehouse likely comes from numerous places, including application logs and transaction recording apps.
A data warehouse collects, merges, and organizes a lot of pieces of data from numerous sources. It enables businesses to extract important insights from this information to help them make better decisions. It does so by creating a historical record that can be useful for data scientists and business analysts over time.
General Benefits Of Data Warehouse In Business
Data mining is essential for any business that wants to stay competitive, and a data warehouse is an integral part of this process. Having accurate data formatted correctly is essential for making good decisions quickly. Data warehouses allow decision-makers to learn from past trends and challenges by providing a historical overview.
Furthermore, a data warehouse can adapt as a business expands; if a company is growing, it will need more and better data, and data warehouses have the ability to become increasingly stronger in their query handling with proper hardware support.
The benefits of data warehouses make them a true business asset because they allow for metric-based decisions that are Smarter and faster, from product releases to inventory levels and key sales figures. In today’s market, it’s difficult to compete without an upgraded data warehouse.
Some Key Benefits Of Data Warehouses
Here are some of the key benefits of data warehouses that businesses can take advantage of
Historical Insight
A data warehouse is critical for any business that wants to stay afloat. Not only does it give you accurate records of things like sales and inventory, but also personnel and intellectual property, but it can tell you contextual information about this data. If you need to know how a key product was selling 24 months ago, a data warehouse will not only have that information readily available but also show performance trends surrounding that time period. This kind of efficiency cannot be found in traditional databases.
Conformity And Quality Of Data
Any business generates data in a variety of shapes and forms, including structured and unstructured data, social media information, and sales campaign data. One of the benefits of a data warehouse is that it transforms this data into the consistent formats required by your analytics platforms. Furthermore, a data warehouse ensures that the data generated by various company departments is of equal quality and standard – allowing for more efficient analytics feeding.
Drive-In Revenue
In 2006, mathematician Clive Humby quoted that “data is the new oil.” He was referring to how data had become extremely valuable for that time, and true enough, the importance of data has only skyrocketed a decade and a half later. A data warehouse’s key strength is creating more standardized and better quality data, which directly translates into significant revenue gains. Here’s how it works: Better business intelligence leads to better decision-making, and subsequently, a higher return on investment for any area of your business.
But perhaps most importantly, these revenue increases compound over time as improved decisions gradually make the business stronger overall.
In short, a data warehouse that is scalable and high-quality should not be seen as a cost, but rather an investment – one which will bring immense value to the company.
Much Higher Query Performance And Insight
Business intelligence (BI) queries are a common part of today’s business. However, they can put a strain on analytic infrastructure- from the ancient databases to the new data marts. Having a specific data warehouse to handle queries removes some pressure from the system. Moreover, since a data warehouse is designed specifically to manage large amounts of data and multiple complex queries, it becomes the high-functioning center for any business’ data analytics practice.
Provides Major Competitive Advantage
The main reason to use a data warehouse is that it enables businesses to make more informed decisions about their competition. With the accurate and up-to-date information available in a data warehouse, businesses can create better sales strategies, develop new products tailored to customer needs, and respond quickly to changes in the market. In other words, a data warehouse gives businesses a competitive edge.
You could also find out about the latest in the field of data integration with Data Integration Solutions: Benefits And Key Features.
Why Choose IntoneSwift?
The data warehouse is integral for various teams across the organization, including IT, data engineering, business analytics, and data science. However, each team has its own specific needs for using the warehouse. Intone strives to take a people-first approach to assist businesses with their data analysis processes. We commit to providing them with the best service possible through IntoneSwift which is tailored to their needs and preferences. We offer:
- Knowledge graph for all data integrations done
- 600+ Data, and Application and device connectors
- A graphical no-code low-code platform.
- Distributed In-memory operations that give 10X speed in data operations.
- Attribute level lineage capturing at every data integration map
- Data encryption at every stage
- Centralized password and connection management
- Real-time, streaming & batch processing of data
- Supports unlimited heterogeneous data source combinations
- Eye-catching monitoring module that gives real-time updates
Contact us to know more about how we can help you!