Benefits and Importance of Data Warehousing - Essay Example

Data Warehousing Introduction Data warehouse can be d as a database system through which several data can be analyzed and evaluated at a time. The concept of data warehouse has been introduced to extract, filter, classify and cluster data.. The actual purpose of developing data warehouse is to perform data analysis quickly and efficiently. In modern era, unprecedented advancement can be observed in the field of science and technology. Thus, in the current era people can be identified to have little time engaging in data processing unlike in the past decades. Notably, these advancements are accompanied with technological innovation, generation of new ideas, tools and techniques. In recent times, significant transformation can be observed in the record keeping system of the businesses. Business organizations in the contemporary environment are less concerned about keeping transactional records through journals rather these organizations can be seen to prefer the use of computer and several business applications in order to perform their operations utmost accuracy. Similarly, it has been also noticed that most of the business firms prefers to use data warehouse in order to perform business operation quickly and accurately. Apart from this, it has been also observed that data warehouse is database system where integrated information needs to gather in order to perform various imperative tasks within the business domain. Furthermore, it has been observed that warehouse data can be accessed without entering the information source and inaccessible data sources can be availed through the help of warehouse data. Thus, it can be asserted that warehouse data has offered significant opportunity of performing several operations related with database management (Foshay et al., 2007). In this paper, the aim is to highlight the benefits and importance of data warehouse. Apart from this, the study will also explore the units of measurement, which are used in data storage system. Moreover, the discussion will also critically analyze the benefits of data warehouse in detail. Benefits of Data Warehouse According to Hwang & Xu (2008), data warehouse is a database system which has provided several benefits to the individuals and organizations. According to observation, it has been ascertained that data warehouse has usually offered information for its user to perform their task or fulfill requirements more efficiently and effective manner. Apart from this, it has been also perceived that data warehouse can improve the level of productivity for the individuals through saving times. Furthermore, it can be apparently asserted that through producing quick and accurate information, data warehouse can ensure better decision making for individuals (Hwang & Xu, 2008). On the contrary, proper use of data warehouse can contribute several benefits to an organization in order to accomplish strategic advantages through increasing revenues, reducing cost or improving business process. Apart from this, it has been observed that data warehouse also helps an organization through providing significant information about management and customers, which can be used by the organization to improve its performance. Furthermore, it can also facilitate an organization through proving significant information about competitive position in a business (Hwang & Xu, 2008). In accordance with Hwang & Xu (2008), data warehouse delivers mutual benefits to both individuals and organizations. According to the observation it has been reckoned that individual and organizational benefits help to measure the operational factor for an organization, which can enhance the business intelligence (Hwang & Xu, 2008). For an example, it can be asserted that data warehouse can provide reliable information about the business intelligence to the managers and executives in order to make effective business decision. Accordingly those decisions can be used by them to bring about improvement and necessary changes in the business processes through reliable financial investment, and effective sales and inventory management. Thus, it can be asserted that use of data warehouse can have the significant role to enhance the overall business processes (Rosencrance, 2011). According to Rosencrance (2011), data warehouse can store large volume of information at a time and it can also analyses those integrated information in order to project future decisions. According to market trend and time period the decisions can be made, thus it can be asserted that data warehouse can also provide historical intelligence to the organizations in order to make effective decisions (Rosencrance, 2011). Importance of Data Warehouse “Data warehousing is a methodological approach for organizing and managing enterprise data to provide a trustworthy, consistent integrated data foundation for an enterprise’s data-driven applications” (Core Mind Technology Pvt. Ltd., 2007). According to the observation, it has been identified that in recent days several business enterprises have the tendency of using data warehouse in order to increase the effectiveness and efficiency of the business operation. Moreover, it has been ascertained that organization uses data warehouse for storing data and mining those data in order to make effective decisions and to enhance its performance (Core Mind Technology Pvt. Ltd., 2007). According to the observation, it has been explored that most of the large business firms and multinationals in the past decades used to prepare hand scripted charts and graphs from the sales volume in order to understand its position in the market place. However, modern organizations are mostly relied on computer science and information technology in order to analyses its competitive position at the marketplace. In addition with that during the early days, decision making approach of the organizations was too ordinary. On the contrary, over the last decade, it has been apparently observed that the decision making philosophy has been transformed in a considerable way. Now days, modern managers used to equip decisions smartly or it can be asserted managers are using intelligence in order to maintain competitive advantages (Core Mind Technology Pvt. Ltd., 2007). For an example, it can be asserted that now days most of the established organizations often use online marketing strategy through Facebook or apply market segmentation according to age or gender and even introduce a new brand as a strategy in order to enhance the performance level; whereas, these kind of intelligent business moves were largely absent in the past. Thus, it can be evidently asserted that data warehouse has enhanced business performance and historical intelligence in the modern era (Core Mind Technology Pvt. Ltd., 2007). Units of Measurement used for Data Storage Based on the further evaluation, it has been identified that in a data warehouse each and every integrated data can be stored for a longer period of time hence making it possible for individuals and organizations to analyses those data in order to make effective decision. According to the study, it has been also observed that each of those integrated data is entered by the individuals. Consequently, all those integrated data has captured a certain amount of space in data storage system. Furthermore, it can be also asserted that each and every data dose not capture same amount of space. However, according to the analysis, it has been identified that those space are specially depends of the properties of each and every individual items. In accordance with Tech Terms (2014), data can be measured in terms of bit, which is the smallest unit of measurement. According to analysis, it has been observed that one bit consist “0” or “1” value. Where “0” denotes “off” in binary values and “1” represents “on”. However, it cannot be denoted in any other ways. Apart from this, it has been also observed that summation of eight “8” bits makes up “1” byte. Similarly, one thousand and twenty four byte “1024” denotes one Kilobyte (KB). Thus, it can be apparently asserted that data are stored fundamentally in data warehouse according to the size of its bytes (Tech Terms 2014). Unit Value Description Bit (b) 0 or 1 A page of a book Byte (B) 8 bits A chapter Kilobyte (KB) 10001 bytes A book Megabyte (MB) 10002 bytes A small group of books Gigabyte (GB) 10003 bytes A large group of books Terabyte (TB) 10004 bytes A book shelf Petabyte (PB) 10005 bytes A wall holding full of books Exabyte (EB) 10006 bytes A library Figure: 1 Units of measurement are used for data storage Analyzing the Benefits of Data Warehouse and Its Uses In order to analysis, the benefits of the data warehouse, it can be apparently asserted that the use of data warehouse benefits both individuals and organizations. In this regard, data warehouse serves as a data base management system where enormous amount of data can be stored at a time. Beside it has been observed that as per-requirement both individuals and organizations can retrieve required information from the system. Furthermore, it can be asserted that sensitive data can be stored and can be kept for longer period of time. Moreover, it also helps to process, filter and extract information for making effective decisions(Rosencrance, 2011). According to the observation, it has be found that individuals or organizations usually used data warehouse in order to calculate revenue, sales volume, financial reports and for personal uses. Similarly, it has been also used by the government in order to keep records of several events. For an example, it has been asserted that government uses data warehouse for various purposes such as storing and retrieving data related to tax collection and payment (Rosencrance, 2011). From the different stand point, it can be asserted that data warehouse has been used in order to make effective decisions. According to the observation, it has also explored that time can be saved by using data warehouse as it can summarize larger integrated data with a short span of time. On the other hand, it has been observed that data warehouse can deliver more effective information which can enhance the business intelligence for business organizations. Moreover, it has been reckoned that through analyzing integrated data, data warehouse can also provide historical intelligence to the organizations in order to make effective decisions (Rosencrance, 2011). Conclusion From the above analysis, it has been comprehended that due the advancement of computer science and information technology, individuals and organizations are relied on data warehouse in order to save times. Apart from that through using data warehouse individuals and enterprises have enhance the business intelligence. Moreover, it has become the historical transition of modern civilization. According to the observation, it has explored that due to quick and effective decision making purpose modern civilization has relied on centralized collection of digital data. Thus, in order to conclude the topic, it can be evidently asserted that the effect of digital data has been enormous in real world. It has also raised the ability, efficiency and effectiveness of individuals along with organizations. It can be thus asserted as data warehouse is the brain of the computer and without this computers have minimum utility. References Core Mind Technology Pvt. Ltd. (2007). Data warehousing. Retrieved from http://www.coremindtechnologies.in/datawarehousing.html Foshay, N., Mukherjee, A., & Taylor, A. (2007). Does data warehouse end-user metadata add value?. Communications of the ACM, 50(11), 70-77. Hwang, M. I., & Hongjiang, Xu. (2008). A structural model of data warehousing success. Journal of Computer Information Systems, 49(1), 48-56. Rosencrance, L. (2011). Top five benefits of a data warehouse. Retrieved from http://spotfire.tibco.com/blog/?p=7597 Read More