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Data Warehousing

Data warehousing is the process of collecting and storing large volumes of data from multiple sources into a centralized repository to support business intelligence and analytics. It addresses challenges in data management by consolidating data, improving quality, and enhancing query performance, thereby facilitating informed decision-making. Key components include data sources, ETL processes, data warehouse databases, OLAP engines, and BI tools, all of which contribute to effective data governance and security.

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33 views8 pages

Data Warehousing

Data warehousing is the process of collecting and storing large volumes of data from multiple sources into a centralized repository to support business intelligence and analytics. It addresses challenges in data management by consolidating data, improving quality, and enhancing query performance, thereby facilitating informed decision-making. Key components include data sources, ETL processes, data warehouse databases, OLAP engines, and BI tools, all of which contribute to effective data governance and security.

Uploaded by

tokova4610
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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DATA WAREHOUSING

UNIT-3
Definition

Data warehousing is the process of collecting, organizing,


and storing large volumes of data from multiple sources
into a centralized repository, known as a data warehouse.
• This repository is designed to support business
intelligence (BI), analytics, and reporting by enabling
efficient querying and analysis of the data.
• A data warehouse consolidates both historical and
current data, ensuring data consistency and quality, and
facilitates decision-making by providing users with easy
access to structured and reliable information.
Need for Data Warehousing

Data warehousing addresses the challenges faced by organizations in


managing and analyzing vast amounts of data. The following are key reasons
why data warehousing is essential:
1. Consolidation of Data:
Organizations generate data from multiple sources, such as transaction systems,
customer databases, and external feeds. A data warehouse consolidates this
disparate data into a single, unified repository, making it easier to manage and
analyze.
2. Historical Data Storage:
Operational systems typically store only recent data. A data warehouse stores
historical data over time, enabling long-term trend analysis and decision-making
based on historical trends and patterns.
3. Improved Data Quality and Consistency:
In a data warehouse, data is cleansed, transformed, and standardized to ensure
consistency. This results in more accurate and reliable data for reporting and analysis.
4. Enhanced Query Performance:
Querying data from transactional systems (OLTP) can be slow due to high volumes of
read/write operations. A data warehouse, designed for analytics (OLAP), provides faster and
more efficient querying for large datasets, enabling real-time reporting and analysis.
5 . Support for Decision-Making:
Data warehouses provide decision-makers with easy access to data, enabling them to make
informed, data-driven decisions. It supports business intelligence tools like dashboards,
reporting, and predictive analytics.
6. Business Intelligence and Analytics:
Data warehouses are a foundational component of business intelligence (BI) systems. They
provide a centralized platform for advanced data analysis, including data mining, OLAP, and
predictive analytics, empowering businesses to discover insights, patterns, and
opportunities.
7. Data Integration:
A data warehouse integrates data from various departments (e.g., sales, finance,
marketing), allowing for comprehensive cross-functional analysis, thus giving a more holistic
view of the organization.
8. Support for Compliance:
Many industries require organizations to retain data for compliance and regulatory reasons.
Data warehousing helps ensure the organization meets such data retention policies and can
retrieve data when needed.
Key Components of Data Warehousing

1. Data Sources:
Data warehouses collect data from multiple internal and external sources. These
sources may include databases (like transactional systems), flat files, spreadsheets,
CRM systems, ERP systems, and other third-party data feeds.
Examples: Sales records, customer data, financial data, market data.
2. ETL (Extract, Transform, Load) Process:
Extract: Data is extracted from various source systems (e.g., databases, files) and
collected for processing.
Transform: The data is cleaned, standardized, and transformed into a consistent format
suitable for storage in the data warehouse. This step involves processes like data
filtering, removing duplicates, and resolving inconsistencies.
Load: The transformed data is loaded into the data warehouse for storage and future
analysis.
ETL tools ensure that data is accurate, relevant, and timely.
Examples of ETL Tools: Informatica, Talend, Microsoft SQL Server Integration Services
(SSIS).
4. Data Warehouse Database:
This is the central repository where data is stored. It is optimized for querying and analysis,
often using relational database management systems (RDBMS) or specialized platforms like
columnar databases.
Data is usually organized into fact and dimension tables following a star or snowflake
schema.
Popular Databases: Amazon Redshift, Google BigQuery, Microsoft Azure Synapse, Teradata.
5. Metadata:
Metadata is "data about data." It provides information about the data in the warehouse,
such as the data's source, structure, definitions, and how it has been transformed.
It helps users understand the contents and organization of the data warehouse and
facilitates better data governance.
Types of Metadata:
• Technical metadata: Information about data storage, schemas, tables, and
relationships.
• Business metadata: Descriptions of what the data represents, e.g., sales figures,
customer demographics.
6. OLAP (Online Analytical Processing) Engine:
OLAP engines allow users to perform complex queries and multidimensional analysis on
the data stored in the warehouse.
OLAP systems organize data into cubes that allow users to explore data from different
perspectives (dimensions) such as time, geography, or product type.
Examples of OLAP Operations:
• Drill-down: Breaking data down into finer details.
• Roll-up: Aggregating data into higher-level summaries.
• Slice and dice: Viewing the data from different angles.
• Pivoting: Reorganizing data to look at it from a new dimension.
7. Data Warehouse Access Tools (BI Tools):
These tools provide users with interfaces to access and analyze data stored in the
warehouse. They include reporting tools, dashboards, query tools, and data mining tools.
Common BI Tools:
• Tableau
• Power BI
• Looker
• QlikView
8. Data Marts:
Data marts are smaller, focused subsets of the data warehouse, typically
designed for specific departments or business units (e.g., finance,
marketing, sales).
They contain data relevant to a particular function or team, providing
more targeted and faster access to the data needed for specific analyses.
9. Data Governance and Security:
A data warehouse must have governance policies and security controls to
ensure data accuracy, privacy, and regulatory compliance.
This includes user authentication, access control, encryption, audit
logging, and data lineage tracking to ensure only authorized users can
access the data warehouse.

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