DATA WAREHOUSE

DATA
WAREHOUS
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 Outline
Introduction
 Needs of data warehouse

Components of data warehouse architecture

Real World Application
Challenges and
considerations
What is DataWarehouse
 Data warehouses serve as a central repository for storing and
analyzing information to make better informed decisions. An
organization's data warehouse receives data from a variety of sources,
typically on a regular basis, including transactional systems, relational
databases, and other sources.
 A data warehouse is a centralized storage system that allows for the
storing, analyzing, and interpreting of data in order to facilitate better
decision-making. Transactional systems, relational databases, and
other sources provide data into data warehouses on a regular basis.
 A data warehouse, also called an enterprise data warehouse (EDW), is
an enterprise data platform used for the analysis and reporting of
structured and semi-structured data from multiple data sources, such
as point-of-sale transactions, marketing automation, customer
relationship management, and more.
Needs of Datawarehouse
 The first question that arises is, what is the need for Data Warehouse and spending
lots of money and time on it when you can feed the transaction system direct to it.
But there are many limitations to this approach, and gradually enterprises came to
understand the need for Data Warehouse. Let’s see some of the points that make
using a Data Warehouse so important for Business Analytics.
 It serves as a Single Source of Truth for all the data within the company. Using a
Data Warehouse eliminates the following issues:
 Data quality issues
 Unstable data in reports
 Data Inconsistency
 Low query performance
 Data Warehouse gives the ability to quickly run analysis on huge volumes of
datasets.
 If there is any change in the structure of the data available in the operational or
transactional Databases. It will not break the business reports running on top of it
because they are not directly connected to BI tools or Reporting tools.

 When companies want to make the data available for all, they will understand the
need for Data Warehouse. You can expose the data within the company for analysis.
While you do so you can hide certain sensitive information (such as PII – Personally
Identifiable Information about your customers, or Partners).
 There is always the need for Data Warehouse as the complexity of queries increases
and users need faster query processing. Because the transactional Databases are
built to store a store in a normalized form whereas fast query processing can be
Components
 A data warehouseof DWH Architecture
architecture typically consists of several key
components that work together to facilitate the storage, management, and
analysis of data. These components include:
 Data Sources: These are the origin points of data, which can include
various databases, applications, flat files, APIs, and other sources where
data is generated or stored.
 ETL (Extract, Transform, Load) Process: ETL is a critical component
that involves extracting data from the source systems, transforming it into
a consistent format suitable for analysis, and loading it into the data
warehouse. This process often involves cleansing, aggregating, and
structuring data to make it suitable for querying and analysis.
 Staging Area: The staging area is an intermediate storage area where
data is temporarily held during the ETL process. It allows for data
validation, cleansing, and transformation before loading it into the data
warehouse.
 Data Warehouse Database: This is the core component of the data
warehouse architecture where structured, cleaned, and transformed data
is stored. It typically utilizes a relational database management system
(RDBMS) optimized for querying and reporting.
 Data Mart: Data marts are subsets of the data warehouse that are
tailored to specific business functions, departments, or user groups. They
contain a subset of data relevant to the particular needs of a specific group
Architecture of DataWarehouse
Real World Application Of DWH
 Retail industry: Retailers use data warehousing to analyze sales trends, customer
behavior, inventory management, and supply chain optimization. By analyzing data from point-of-
sale systems, online transactions, and customer interactions, retailers can make informed decisions
regarding product assortment, pricing strategies, and marketing campaigns.
 Financial Services: Banks and financial institutions utilize data warehousing for risk
management, fraud detection, compliance reporting, and customer relationship management. Data
warehouses enable them to consolidate data from multiple sources such as transaction records,
customer accounts, and market data to gain insights into market trends, customer preferences, and
investment opportunities.
 Healthcare: In the healthcare industry, data warehouses are used for clinical decision
support, population health management, and healthcare analytics. By integrating data from
electronic health records (EHRs), medical devices, billing systems, and patient demographics,
healthcare organizations can identify patterns, predict disease outbreaks, and improve patient
outcomes.
 Telecommunications: Telecommunication companies leverage data warehousing for
network performance monitoring, customer churn analysis, and personalized marketing. By
analyzing call detail records (CDRs), network logs, and customer interactions, telecom providers
can optimize network resources, identify service issues, and offer targeted promotions to retain
customers.
 Manufacturing: Manufacturers use data warehousing for supply chain optimization,
production planning, and quality control. By integrating data from manufacturing systems, ERP
systems, and sensor data from production equipment, manufacturers can streamline operations,
reduce production costs, and ensure product quality.
 Education: Educational institutions use data warehousing for student performance analysis,
Challenges and consideration of
DataWarehouse
 Data Quality: Ensuring data quality is a significant challenge in data warehousing.
Inaccurate, incomplete, or inconsistent data can lead to erroneous insights and decisions.
Data cleansing, validation, and standardization processes are essential to maintain high-
quality data.
 Data Integration: Integrating data from disparate sources with different formats, schemas,
and data quality levels can be complex and time-consuming. Data integration challenges
include data mapping, transformation, and synchronization to ensure consistency and
coherence across the data warehouse.
 Scalability: Data warehouses need to accommodate growing volumes of data and increasing
user demands over time. Scalability challenges include handling large datasets, optimizing
query performance, and scaling infrastructure resources to meet evolving business needs.
 Cost Management: Building and maintaining a data warehouse can be expensive, involving
costs for hardware, software licenses, infrastructure maintenance, and skilled personnel.
Cost management considerations include optimizing resource utilization, evaluating cloud vs.
on-premises options, and aligning investments with business priorities.
 Data Governance and Compliance: Establishing data governance policies and ensuring
regulatory compliance are essential for managing data assets effectively. Data governance
challenges include defining data ownership, enforcing data quality standards.
 Change Management: Implementing changes to the data warehouse architecture, data
models, or business processes requires careful planning and coordination. Change
management challenges include managing schema changes, version control, and ensuring
backward compatibility to minimize disruption to operations.
Thankyou