Glimpse of Data Warehousing

What Is Data Warehousing?

Data warehousing is the secure electronic storage of information by a business or other organisation.

• New data is periodically added by people in various key departments such as marketing and sales.
• The warehouse becomes a library of historical data that can be retrieved and analysed in order to inform decision-making in the business.
• The key factors in building an effective data warehouse include defining the information that is critical to the organisation and identifying the sources of the information.
• A database is designed to supply real-time information. A data warehouse is designed as an archive of historical information.
• New data is periodically added by people in various key departments such as marketing and sales.

How does a data warehouse work?

A data warehouse may contain multiple databases. Within each database, data is organised into tables and columns. Within each column, you can define a description of the data, such as integer, data field, or string. Tables can be organised inside of schemas, which you can think of as folders. When data is ingested, it is stored in various tables described by the schema. Query tools use the schema to determine which data tables to access and analyse.

Architecture of data warehouse:

Data Warehouses usually have a three-level (tier) architecture which include: Bottom Tier (Data Warehouse Server) Middle Tier (Online Analytical Processing Server (OLAP)Server) Top Tier (Front end Tools).

1. Bottom Tier: The database of the Data warehouse serves as the bottom tier. It is usually a relational database system. Data is cleansed, transformed, and loaded into this layer using back-end tools.
2. Middle Tier: The middle tier in Data warehouse is an OLAP server which is implemented using either ROLAP or MOLAP model. For a user, this application tier presents an abstracted view of the database. This layer also acts as a mediator between the end-user and the database.
3. Top-Tier: The top tier is a front-end client layer. Top tier is the tools and API that you connect and get data out from the data warehouse. It could be Query tools, reporting tools, managed query tools, Analysis tools and Data mining tools.

What are the advantages of data warehousing?

• Provides fact-based analysis on past company performance to inform decision-making.
• Serves as a historical archive of relevant data.
• Can be shared across key departments for maximum usefulness.

Database vs. Data Warehouse:

The Bottom Line

The data warehouse is a company’s repository of information about its business and how it has performed over time. Created with input from employees in each of its key departments, it is the source for analysis that reveals the company’s past successes and failures and informs its decision-making.

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