The Benefits Of Having A Data Warehouse

The Benefits Of Having A Data Warehouse

The Benefits Of Having A Data Warehouse

Since the advent of the Internet and the explosion of digital marketing, the potential for creating and using data has grown exponentially. In the 1990s, Bill Inmon published a book called “Building the Data Warehouse,” which introduced the modern concept of data warehouses. According to the book, “Data warehouses provided a much-needed strategy for organizations to collect, store, and analyze vast amounts of data. As businesses expand both brick-and-mortar and online activities, the field of data warehousing has become increasingly important.” Data warehouses provide an easy way to peruse vast stockpiles of information in order to discover pertinent facts about customers or products, which in turn can lead to more informed business decisions. For example, if you wanted to analyze a specific department, such as “sales” or “marketing,” you could do so with information extracted from the data warehouse.

A 2010 Forbes Insights study found that “data-related problems cost the majority of companies more than $5 million annually,” and costs 20 percent of companies more than $20 million annually. Utilizing a data warehouse can help ensure that the data being analyzed is accurate and consistent.

data-costs

Because assembling a data warehouse can be an expensive undertaking, large corporations and companies are the primary warehouse customers. However, small businesses can gain many important benefits from creating their own data warehouse as well.

First, data warehouses can save companies’ valuable time by storing important information in the same location. Rather than keeping data in several different places (such as inside CRM programs, social media accounts, and Excel spreadsheets), business owners can store data in one centralized location. As a result, they can harness this centralized data to enhance strategic decisions, without having to aggregate different sources. Data warehouses can also save money as business owners and executives can search the data without extensive assistance from the IT department.

Second, companies can benefit from storing their data in the same format. Since data from different departments is standardized, each department will create results that are in sync with other departments. This ensures data quality and uniformity. As a result, business owners and executives can feel confident that their data is accurate, which will lead to more informed business decisions.

Third, data warehouses can improve business intelligence. Because the data warehouse combines information from various parts of the business, owners and executives can feel confident that their decisions are being made based on comprehensive information. Data warehouses can provide a full picture of a company’s marketing and financial plan, inventory management, and sales history. This allows key players to make decisions that are based on facts rather than intuition.

Forbes magazine stated, “While it’s true that data warehouses have been around for years, their value keeps growing because they represent a company’s crown jewels—prized data on customers and business performance.” For example, health care providers use information gleaned from data warehouses to streamline patient care and improve service. Marketing teams can use information collected in the data warehouse to make sure they are targeting the right demographics. Executives can use the data to streamline operations or reevaluate products.

Companies who want to create a data warehouse can start by figuring out what their business objectives are and how having a data warehouse will contribute to these goals. Next, they should choose a database management system for their data warehouse. Then, they need to construct a data model and plan the data transformation. Afterwards, businesses need to begin testing the plan to see what needs to be tweaked or changed.

WIRED magazine stated that Google spent years working to successfully master sophisticated data warehouses. Writer Steven noted, “Google knows exactly what it needs inside its rigorously controlled data centers—speed, power, and good connections—and saves money by not buying unnecessary extras. No graphic cards, for instance, since these machines never power a screen.” Small businesses should consider their business objectives and needs in order to create a data warehouse that’s right for them.

Data warehouses not only save time and energy through stockpiling data in one centralized location; they also guarantee that the information provided will be more accurate and reliable than data gleaned from other sources. Businesses that are serious about utilizing technology to their advantage should consider creating their data warehouse.

By Keith Cawley

About TechnologyAdvice

TechnologyAdvice helps companies find business technology. We’ve researched and reviewed hundreds of products in a variety in order to find the best solutions in a variety of areas, including business intelligence, healthcare IT, and project management software. Users can read product reviews, find the latest industry news, or sort products based on their individual needs. We’ve advised hundreds of businesses, including multiple Fortune 500 companies.

Find out more
View All Articles

Sorry, comments are closed for this post.

Comic
The Lighter Side Of The Cloud – Data Merge

The Lighter Side Of The Cloud – Data Merge

By Christian Mirra Please feel free to share our comics via social media networks such as Twitter, Facebook, LinkedIn, Instagram, Pinterest. Clear attribution (Twitter example: via @cloudtweaks) to our original comic sources is greatly appreciated.

The Rise Of Threat Intelligence Sharing

The Rise Of Threat Intelligence Sharing

Threat Intelligence Sharing  Security has been discussed often on CloudTweaks and for good reason. It is one of the most sought after topics of information in the technology industry.  It is virtually impossible to wake up and not read a headline that involves the words “Breached, Hacked, Compromised or Extorted (Ransomware)“. Included (below) is an…

Moving Your Email To The Cloud? Beware Of Unintentional Data Spoliation!

Moving Your Email To The Cloud? Beware Of Unintentional Data Spoliation!

Cloud Email Migration In today’s litigious society, preserving your company’s data is a must if you (and your legal team) want to avoid hefty fines for data spoliation. But what about when you move to the cloud? Of course, you’ve probably thought of this already. You’ll have a migration strategy in place and you’ll carefully…

Higher Education Institutions Increasing Cloud Use In Next 5 Years

Higher Education Institutions Increasing Cloud Use In Next 5 Years

Cloud Computing Advancing Edtech In a new research study by ResearchMoz it’s predicted that the global cloud computing market in higher education will grow steadily at a CAGR of 24.57% over the period 2016 to 2020. Making use of computing resources connected by either public or private networks provides the benefits of scalable infrastructure, greater…

Big Data and AI Hold Greatest Promise For Healthcare Technologies

Big Data and AI Hold Greatest Promise For Healthcare Technologies

Digital Healthcare Executives and Investors Addressed Opportunities and Challenges Facing the Industry New York City – September 21, 2016 – According to a survey of 122 founders, executives and investors in health-tech companies released today by Silicon Valley Bank, big data and artificial intelligence will have the greatest impact on the industry in the year ahead. Healthcare…

The Rise Of BI Data And How To Use It Effectively

The Rise Of BI Data And How To Use It Effectively

The Rise of BI Data Every few years, a new concept or technological development is introduced that drastically improves the business world as a whole. In 1983, the first commercially handheld mobile phone debuted and provided workers with an unprecedented amount of availability, leading to more productivity and profits. More recently, the Cloud has taken…

Adopting A Cohesive GRC Mindset For Cloud Security

Adopting A Cohesive GRC Mindset For Cloud Security

Cloud Security Mindset Businesses are becoming wise to the compelling benefits of cloud computing. When adopting cloud, they need a high level of confidence in how it will be risk-managed and controlled, to preserve the security of their information and integrity of their operations. Cloud implementation is sometimes built up over time in a business,…

HOW THE CFAA RULING AFFECTS INDIVIDUALS AND PASSWORD-SHARING

HOW THE CFAA RULING AFFECTS INDIVIDUALS AND PASSWORD-SHARING

Individuals and Password-Sharing With the 1980s came the explosion of computing. In 1980, the Commodore ushered in the advent of home computing. Time magazine declared 1982 was “The Year of the Computer.” By 1983, there were an estimated 10 million personal computers in the United States alone. As soon as computers became popular, the federal government…

5 Ways To Ensure Your Cloud Solution Is Always Operational

5 Ways To Ensure Your Cloud Solution Is Always Operational

Ensure Your Cloud Is Always Operational We have become so accustomed to being online that we take for granted the technological advances that enable us to have instant access to everything and anything on the internet, wherever we are. In fact, it would likely be a little disconcerting if we really mapped out all that…

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Infrastructure-as-a-Service Security It’s no secret many organizations rely on popular cloud providers like Amazon and Microsoft for access to computing infrastructure. The many perks of cloud services, such as the ability to quickly scale resources without the upfront cost of buying physical servers, have helped build a multibillion-dollar cloud industry that continues to grow each…

Cloud Computing Then & Now

Cloud Computing Then & Now

The Evolving Cloud  From as early as the onset of modern computing, the possibility of resource distribution has been explored. Today’s cloud computing environment goes well beyond what most could even have imagined at the birth of modern computing and innovation in the field isn’t slowing. A Brief History Matillion’s interactive timeline of cloud begins…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

Cloud Infographic – Guide To Small Business Cloud Computing

Cloud Infographic – Guide To Small Business Cloud Computing

Small Business Cloud Computing Trepidation is inherently attached to anything that involves change and especially if it involves new technologies. SMBs are incredibly vulnerable to this fear and rightfully so. The wrong security breach can incapacitate a small startup for good whereas larger enterprises can reboot their operations due to the financial stability of shareholders. Gordon Tan contributed an…

Cloud Computing Offers Key Benefits For Small, Medium Businesses

Cloud Computing Offers Key Benefits For Small, Medium Businesses

Cloud Computing Benefits A growing number of small and medium businesses in the United States rely on as a means of deploying mission-critical software products. Prior to the advent of cloud-based products — software solutions delivered over the Internet – companies were often forced to invest in servers and other products to run software and…

Containerization: The Bold Face Of The Cloud In 2016

Containerization: The Bold Face Of The Cloud In 2016

Containerization And The Cloud “Right now, the biggest technology shift in the cloud is a rapid evolution from simple virtual machine (VM) hosting toward containerization’’ says the CTO of Microsoft Azure, Mark Russinovitch, a man who deals with the evolving cloud infrastructure every day. In his words, containerization is “an incredibly efficient, portable, and lightweight…

Five Cloud Questions Every CIO Needs To Know How To Answer

Five Cloud Questions Every CIO Needs To Know How To Answer

The Hot Seat Five cloud questions every CIO needs to know how to answer The cloud is a powerful thing, but here in the CloudTweaks community, we already know that. The challenge we have is validating the value it brings to today’s enterprise. Below, let’s review five questions we need to be ready to address…