Advantages of Data Warehousing
- Intelligent Decision-Making: With centralized data in warehouses, decisions may be made more quickly and intelligently.
- Business Intelligence: Provides strong operational insights through business intelligence.
- Historical Analysis: Predictions and trend analysis are made easier by storing past data.
- Data Quality: Guarantees data quality and consistency for trustworthy reporting.
- Scalability: Capable of managing massive data volumes and expanding to meet changing requirements.
- Effective Queries: Fast and effective data retrieval is made possible by an optimized structure.
- Cost reductions: Data warehousing can result in cost savings over time by reducing data management procedures and increasing overall efficiency, even when there are setup costs initially.
- Data security: Data warehouses employ security protocols to safeguard confidential information, guaranteeing that only authorized personnel are granted access to certain data.
Data Warehousing
A Database Management System (DBMS) stores data in the form of tables and uses an ER model and the goal is ACID properties. For example, a DBMS of a college has tables for students, faculty, etc.
A Data Warehouse is separate from DBMS, it stores a huge amount of data, which is typically collected from multiple heterogeneous sources like files, DBMS, etc. The goal is to produce statistical results that may help in decision-making. For example, a college might want to see quick different results, like how the placement of CS students has improved over the last 10 years, in terms of salaries, counts, etc.