We all know that data plays a vital role in many things. From data, we can produce information that is useful for many things. Starting from professional or personal interests will require much information sourced from credible data. And, of course, various types of data are available around us.
If you work in the data field, you are undoubtedly familiar with the term data warehouse. With a data warehouse, a business or company can manage its information in an orderly and structured manner so that the data is stored appropriately and safely.
Collected data will also make it easier to access when needed.
What is Data Warehouse
A data warehouse or data warehouse is a computer system whose job is to archive and analyze historical data for the purposes of a particular organization or business. The information managed can be in the form of data related to sales, salaries, and other daily details.
Analyzing data in a structured manner can produce more accurate information to support a company’s decision-making. That is why the data warehouse is included in one of the supporting parameters for business intelligence activities.
The data warehouse was first used and discovered in the 1980s when many large businesses implemented DSS (Decision Support System). Until now, many companies have implemented this strategy to help improve work quality and productivity.
Data Warehouse Benefits
Why is a data warehouse so important? The following are some main factors a business must run a data warehouse.
1. Helps in Making Decisions
The first function of the data warehouse is to be able to make the right system decisions. Where the information must be credible and based on existing facts. The goal is to make the proper market segmentation, inventory management, and financial management decisions.
2. Easy and Fast in Accessing Data
The second function is easy to access, where users can interact with resources quickly and more efficiently. This effectiveness can impact making faster decisions than your business competitors.
3. Creating Data Consistency
Because a data warehouse is a system that can collect various information from different platforms, it can be converted into a single format to be used properly.
Then, in the future, your company can get maximum results and be consistent with each other. When data standardization has been established, you can place high trust in the data warehouse’s accuracy to make clear and precise business decisions.
4. Generate Optimal ROI
ROI (Return on Investment) is the level of the ratio between the amount of net profit and investment costs resulting from several investments in existing resources. It has a unique function to provide a more profitable return on investment when connected to the data warehouse.
5. Provide Historical Intelligence
The last function is to provide the majority of historical data so you can analyze each different period or trend to make future business predictions (forecasting).
Characteristics of Data Warehouse
Next, enter into a discussion of the four characteristics or characteristics of a data warehouse, which are as follows.
1. Subject Oriented
Subject-oriented data has an integrated time dimension. Where later, it can support the decision-making process carried out by managers at each level.
2. Data has been integrated
Because the data warehouse is a collection of data from various existing information systems, the information obtained can be appropriately integrated. Thus, it can help accelerate decision-making effectively and efficiently.
3. Data is Fixed
The third characteristic is that the data used is fixed. The point here is that the information used does not change and cannot be changed by force. Because this data generally contains a collection of information that already exists and a period has been used.
4. Made within a specific timeframe
The database system (database) used has a specific period according to your needs. Where this will affect the usage of every business strategy that you run. Thus, the formed database will always be followed by the time interval of its use.
Data Warehouse Components
What components are available in a data warehouse? The following are the five main components that make up the database.
1. Warehouse
The first component is the warehouse or storage area for the data. The form can also vary according to your needs, including data warehouse appliances, analytics, cloud-hosted, and typical relational databases.
2. Data Warehouse Management
The role of data warehouse management is very complex, and there must be someone who can manage the data warehouse properly.
Things that must be considered in data warehouse management include, from a security perspective, updating data, selecting task priorities, and managing backup and recovery if there is a situation that is deemed urgent.
3. Metadata
The third component is metadata, a short description of the data. The function of the metadata itself is to provide context or explanation of information so that it appears more transparent and aligned.
4. Access Tools
You can use several tools to support your business strategy using a data warehouse. First, you can use data mining and OLAP concepts.
For more details, you can look for some references on the internet. Second, you can use query reporting or develop your own analytics tools if you have a team of developers or application developers.
5. ETL tools
ETL stands for Extract, Transform, and Load, which means retrieving data that can later be modified in its format. And in the end, the information will be entered into the data warehouse. These tools will subsequently affect the data’s time, method, and type of modification.
Data Warehouse Function
1. Company Report
For a company, the presence of a data warehouse can help those responsible for the data to make reports. The stored data must first be ensured that it is correct and not corrupted so that it will be easier in the analysis process and in making future decisions.
2. Online Analytical Processing (OLAP)
The data warehouse can help the data analysis process become more accessible because all detailed information or concise information will be stored appropriately and easily.
OLAP is a multidimensional data concept that makes it easier for users to perform detailed data analysis without using SQL.
In a multidimensional concept, data originating from the same facts can be presented using different functions.
Two other features included in OLAP are roll-up and drill-down. By using the roll-up feature, you cannot see detailed information. At the same time, drill-down allows you to view detailed information.
3. Data Mining
The process of mining or digging up knowledge and information derived from the amount of data contained in the data warehouse using AI technology, statistics, and also mathematics is known as data mining.
This data mining can analyze the target market by grouping customer models and classification according to the required characteristics.
4. Supporting Decision Making
The data stored in the warehouse can be used for making decisions without exploring all the data again.
Usually, a summary of the data contained in the report will be used by company management. They are tasked with making long-term decisions that are expected to positively impact the company.