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Data Warehousing and Its Role in BI

Data warehousing is a centralized system for storing and managing large volumes of structured data, crucial for Business Intelligence (BI) by providing a unified view for efficient reporting and decision-making. It involves processes like data integration, transformation, and accessibility, ensuring data accuracy and performance while supporting scalability and security. Future trends in data warehousing include cloud-based solutions, AI integration, and data virtualization, enhancing data management and analysis capabilities.

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7 views10 pages

Data Warehousing and Its Role in BI

Data warehousing is a centralized system for storing and managing large volumes of structured data, crucial for Business Intelligence (BI) by providing a unified view for efficient reporting and decision-making. It involves processes like data integration, transformation, and accessibility, ensuring data accuracy and performance while supporting scalability and security. Future trends in data warehousing include cloud-based solutions, AI integration, and data virtualization, enhancing data management and analysis capabilities.

Uploaded by

kapoorbusiness2021
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Data Warehousing

and its role in BI


Introduction
Data warehousing is a specialized system designed for the storage,
management, and retrieval of large volumes of structured data.
It acts as a central repository where an organization can consolidate data from
multiple sources, making it easier to access and analyze for business purposes.
The primary objective of data warehousing is to provide a unified view of an
organization's data, enabling efficient reporting, analysis, and decision-making.
The data warehouse has a pretty important role because, by 2025, its
approximate humanity will have produced 175 zettabytes of data. Where does all
this information go? Well, the majority of this information goes into the data
warehouses.
Companies use the data warehouse to keep it all organized via managing
transactions and understanding their data. The duty of the data warehouse can
be described as it makes huge amounts of information more usable for all large
scale and small scale organizations.
What is the contribution of data
warehousing in BI
Well, in BI, data warehouses act as a backbone of data storage. Business Intelligence
depends on complex queries and comparing multiple sets of data to inform everything
from everyday decisions to the organization. In order to facilitate this, BI contains 3
broad activities:

Data storage – Use of recording media to keep data using computers or other devices

Data wrangling – The process of collecting, selecting, and converting data in order to
answer an analytical question

Data analysis – The process of cleaning, transforming, and modeling data to find useful
information for business decision-making

The Data Warehouse and Business Intelligence wouldn’t function without another. Even
though data warehouses serve as the backbone of data storage, they’re not the single
technology involved in data storage.
How Business Intelligence and Data
Warehouse work together?
When data warehouses store data, business intelligence platforms
analyze data. When you function these two systems together you
will be able to unlock the ultimate benefits of business intelligence.

The data analysis in Business Intelligence is carried out using


business intelligence tools. These tools provide an easy way to
query the data to analyze data for insights and trends. The
dashboards and reports make it easy to visualize and share data.
The Role Of Data Warehousing In Business
Intelligence
Data warehousing is the cornerstone of Business Intelligence. Its role can
be broken down into several crucial aspects:
Data Integration And Storage
One of the primary functions of a data warehouse is to integrate data
from diverse sources into a unified format. Organizations generate data
from various departments, applications, and systems. A data warehouse
collects, cleans, and transforms this data, making it consistent and
accessible for BI tools.
Data Transformation And Cleansing
Data in its raw form is often inconsistent and contains errors. Data
warehousing involves a process called Extract, Transform, Load (ETL) to
clean and reshape data. ETL processes help ensure data accuracy and
reliability. Cleansed and transformed data is essential for accurate
analysis and reporting.
Data Accessibility And Performance
Data warehousing systems are optimized for querying and reporting,
making data readily accessible to end-users. By using techniques like
indexing, partitioning, and caching, data warehouses offer impressive
query performance, even when dealing with vast datasets. This ensures
that BI tools can quickly retrieve information and provide insights in real
time.
Scalability
As organizations grow, so does their data. A well-designed data
warehouse can scale to accommodate increasing data volumes without
compromising performance. This scalability is critical for businesses
experiencing rapid expansion or fluctuations in data demands.
Security And Compliance
Data warehousing solutions typically provide robust security features to
protect sensitive information. They offer role-based access control,
encryption, and auditing capabilities. This is particularly important for
industries with strict regulatory requirements, such as healthcare and
finance.
Types of Data Warehouses
Several types of data warehousing solutions are used by organizations, depending on their
specific needs and the scale of their operations. The main types are:

Enterprise Data Warehouse (EDW)


An Enterprise Data Warehouse is a centralized repository that stores data from various
sources across an entire organization. It offers a comprehensive view of an organization's data
and is suitable for large enterprises with diverse data needs.

Data Mart
A Data Mart is a smaller, more focused data warehouse that serves a particular department or
business unit. Data Marts are often built on top of an Enterprise Data Warehouse and are
designed to meet the specific requirements of a particular group within an organization.

Operational Data Store (ODS)


An Operational Data Store is a type of data warehouse that focuses on near-real-time data
integration and storage. ODS systems are optimized for transactional data and are used to
support operational activities such as customer service or order processing.

Each of these types serves different purposes, but they can also work together as part of a
comprehensive data warehousing strategy, offering flexibility and scalability.
Components of A Data
Warehouse
A data warehouse comprises several key components that work together to ensure data is properly
managed and accessible:

Data Sources: Data sources can include internal databases, external data providers, cloud services, and
more. These sources feed data into the data warehousing system.

ETL (Extract, Transform, Load) Processes: ETL processes are responsible for extracting data from
source systems, transforming it into the desired format, and loading it into the data warehouse. This
transformation step is essential for data quality.

Data Warehouse Database: The data warehouse database is where the cleaned and transformed data is
stored. It's typically structured for efficient querying and reporting.
Metadata Repository: Metadata is essential for managing the data within the warehouse. It describes the
structure and meaning of the data, making it easier for users to understand and use the data effectively.

Business Intelligence Tools: BI tools are front-end applications that allow users to interact with the data
warehouse. These tools provide reporting, analytics, and visualization capabilities, enabling end-users to
derive insights and make data-driven decisions.
Future Trends In Data Warehousing
and BI
The world of data warehousing and BI is continually evolving. Here are some future
trends to watch for:
Cloud-Based Data Warehousing
Many organizations are moving their data warehousing to the cloud. Cloud-based solutions
offer scalability, cost-efficiency, and ease of management, allowing organizations to focus on
data analysis rather than infrastructure.
AI And Machine Learning Integration
AI and machine learning are becoming integral to data warehousing and BI. These
technologies can automate data analysis, generate predictive insights, and provide
recommendations for decision-making.
Data Virtualization
Data virtualization allows organizations to access and analyze data from various sources
without the need for extensive data movement. This trend simplifies data integration and
improves agility in data access.

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