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Data Warehousing

Last Updated: May 16, 2022


In today's world of new technology, data plays a critical role in improving the nature of products and their reach to customers. Information is critical in assisting with this factor. Companies have begun to rely on assessments advanced by their internal processes, business operations, and customers to explore new chances for progress and success in the ever-changing international economy. Such insights present a huge, complex set of data that must be produced, maintained, examined, and manipulated. Data warehousing is a method of gathering and analysing data from many sources in order to get useful business insights.
In this blog, we will discuss the details of Data Warehousing, its importance and its benefits.

What is Data Warehousing?

A data warehouse is a data management system created to facilitate and assist business intelligence (BI) and analytics activities. Data warehouses exist only to execute queries and analyses, and they frequently house vast amounts of historical data. A data warehouse's data is frequently derived from a variety of sources, including application log files and transaction programs.
A data warehouse collects and organises vast amounts of data from various sources. Its analytical skills enable businesses to gain valuable business insights from their data and make better decisions. It produces a historical record over time that data scientists and business analysts can use.

Architecture of Data Warehousing

The architecture is determined by the specific needs of an organisation. The following are examples of common architectures.

  • Simple
    Metadata, summary data, and raw data are all stored in the warehouse's central repository, which is common in all data warehouses. On one end, data sources feed the repository, while on the other, end-users use it for analysis, reporting, and mining.
  • Staging Area
    With a staging area, it's simple. Before being stored in the warehouse, operational data must be cleansed and processed. Despite the fact that this may be done programmatically, many data warehouses include a staging space before entering the Data Warehouse in order to make data preparation easier.
  • Communication and Hub
    An enterprise can modify its data warehouse to support diverse lines of business by the addition of data marts between the central repository and end-users. The data is moved to the relevant data mart when it is ready to be used.
  • Sandboxes
    Sandboxes are private, secure, and safe environments that allow enterprises to quickly and informally experiment with new datasets or methods of data analysis without having to conform to or follow the data warehouse's formal rules and protocol.

Stages of Data Warehousing

The following are the various stages of Data Warehousing :

  1. Identifying the company's goals and key performance metrics.
  2. Getting the correct information and assessing it.
  3. Identifying the major data contributors in the essential business processes.
  4. Creating a conceptual data model that depicts how the data is presented to the end-user.
  5. Identifying data sources and building a data-feeding procedure for the warehouse.
  6. Determine the length of time you'll be tracking. Data warehouses can quickly become cumbersome. Many are designed with several degrees of archiving, so older data is kept in less detail.
  7. Putting the plan into action.

Designing a Data Warehouse

When creating a data warehouse, a company must first define its specific business requirements, agree on the scope, and write a conceptual design. The data warehouse's logical and physical designs can then be created by the organisation. The logical design focuses on the links between things, whereas the physical design focuses on the most efficient storage and retrieval methods. Transportation, backup, and recovery mechanisms are all included in the physical design.
The following issues must be addressed in every data warehouse design:

  • Relationships inside and between data groups Specific data content
  • The data warehouse will be supported by a system environment.
  • The several sorts of data transformations that are required
  • The frequency with which data is refreshed

The needs of the end-users are a major consideration in the design. The majority of end-users want to do analysis and look at data in bulk rather than as individual transactions. End customers, on the other hand, frequently do not know what they want until a specific need emerges. As a result, sufficient inquiry should be included in the planning phase to anticipate needs. Finally, the data warehouse should be designed to allow for expansion and adaptation in order to meet the changing needs of end-users.

Benefits of Data Warehousing

Data warehouses have the broad and unique benefit of allowing businesses to analyse enormous amounts of changeable data, derive significant value, and keep a historical record. Due to four distinct properties, data warehouses can give a wide range of benefits. The major benefits are as follows:

  • Subject-oriented
    They can investigate data on a certain subject or functional area.
  • Integrated
    Data warehouses bring together heterogeneous data kinds from various sources to establish consistency.
  • Non-volatile
    Data becomes stable and does not change once it is stored in a data warehouse.
  • Time variant
    The purpose of data warehouse analysis is to look at how things have changed over time.

A well-designed data warehouse will respond rapidly to queries, deliver high data throughput, and give end-users the ability to minimise the volume of data for closer study to fulfil a range of needs—whether at a high level or a very fine, detailed level. The data warehouse is the functional underpinning for middleware BI setups that deliver reports, dashboards, and other user interfaces to end-users.

Frequently Asked Questions

  1. What is a data warehouse?
    A data warehouse is a data management system created to facilitate and assist business intelligence and analytics activities.
  2. What does the architecture of Data Warehousing include? 
    The architecture of the data warehousing must be simple and includes staging area, hubs and sandboxes.
  3. What are the major benefits of Data Warehousing?
    The major benefits of Data Warehousing are subject-oriented, Integrated, Non-volatile and Time-variant.


In this article, we have extensively discussed data warehousing. The article explains the details of data warehousing, the architecture, stages of data warehousing, designing a data warehouse and its benefits.
We hope that this blog has helped you enhance your knowledge regarding Data Warehousing and if you would like to learn more, check out our articles on Data Warehousing. Do upvote our blog to help other ninjas grow. 

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