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Data Warehouse 1

The document discusses data warehousing and business intelligence architecture. It defines a data warehouse as a central repository that stores current and historical data from multiple sources to enable business analysis and decision making. It describes different types of data warehouses like enterprise data warehouse, operational data store and data mart. It also discusses the benefits of data warehousing and components of BI architecture like data collection, integration, storage, analysis and distribution.

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ranjeet kumar
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30 views6 pages

Data Warehouse 1

The document discusses data warehousing and business intelligence architecture. It defines a data warehouse as a central repository that stores current and historical data from multiple sources to enable business analysis and decision making. It describes different types of data warehouses like enterprise data warehouse, operational data store and data mart. It also discusses the benefits of data warehousing and components of BI architecture like data collection, integration, storage, analysis and distribution.

Uploaded by

ranjeet kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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DBMS Training © PURSUIT SOFTWARE

DBMS TRAINING MANUAL DBMS:


DAY-8– Data Warehouse

Data Warehouse
A data warehouse is a central repository for businesses to store and analyze massive amounts of
data from multiple sources. Data warehousing is considered a key element of the business
intelligence process, providing organizations with the tools to make informed decisions.
In other words, a DWH is a system for data management where organizations store current and
historical information from sales, marketing, finance, customer service, and more. It facilitates the
BI processes by providing organizations with the means to generate queries and answer their most
pressing analytical questions. Through that, companies can optimize their performance and build
strategies based on accurate insights instead of pure intuition.

What Is BI Architecture?
Business intelligence architecture is a term used to describe standards and policies for
organizing data with the help of computer-based techniques and technologies that create business
intelligence systems used for online data visualization, reporting, and analysis.
One of the BI architecture components is data warehousing tools. Organizing, storing, cleaning,
and extracting the data must be carried out by a central repository system, namely a data
warehouse, which is considered the fundamental component of business intelligence.

Data Warehousing Types


Now that you understand the main data warehouse concepts, let’s look at some key types that
you need to know.
Types:
• Enterprise Data Warehouse (EDW): As its name suggests, an EDW provides a centralized
system for enterprises to store and manage information from a wide number of sources. It
assists decision-making from a tactical and strategic point of view.
• Operational Data Store (ODS): An ODS complements the EDW we just described above. It
is a central database that updates in real-time, and it is used for operational reporting when
the EDW doesn’t cover the business’s reporting requirements.
• Data Mart: It is a subset of a DWH designed especially for a specific business area or team,
such as sales, HR, or marketing. It is subject-oriented, meaning users can find the insights
they need very quickly.

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Benefits of a Data Warehouse


Data warehouses offer the overarching and unique benefit of allowing organizations to analyze
large amounts of variant data and extract significant value from it, as well as to keep a historical
record.
Four unique characteristics (described by computer scientist William Inmon, who is considered
the father of the data warehouse) allow data warehouses to deliver this overarching benefit.
According to this definition, data warehouses are
• Subject-oriented. They can analyze data about a particular subject or functional area (such
as sales).
• Integrated. Data warehouses create consistency among different data types from disparate
sources.
• Nonvolatile. Once data is in a data warehouse, it’s stable and doesn’t change.
• Time-variant. Data warehouse analysis looks at change over time.

BI Architecture Framework In Modern Business


There are various components and layers that business intelligence architecture consists of.
Each of those components has its own purpose that we will discuss in more detail while
concentrating on data warehousing. But first, let’s first see what exactly these components are
made of.
A solid BI architecture framework consists of:
1. Collection of data: The first step is related to the collection of relevant data from various
external and internal sources which can be databases, ERP- or CRM systems, flat files, or
APIs, just to name a few.
2. Data integration: At this stage, the data collected is integrated into a centralized system,
often with the help of ETL processes. Here the data is also cleaned and prepared for
analysis.
3. Storage of data: This is where a DWH comes into the picture. A warehouse is a place in
which structured data is stored. It makes it available for querying and analysis.
4. Data analysis: After the information is processed, stored, and cleaned it is ready to be
analyzed. With the help of the right tool, the data is visualized and used for strategic
decision-making.
5. Distribution of data: The data, now in the form of graphs and charts, is distributed in
different formats. This can be online reporting, dashboarding, or embedding solutions.
6. Reaction based on insights: The final stage of the architecture is to extract actionable
insights from the data and use them to make improved decisions to ensure company
growth.

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OLTP vs OLAP
OLTP systems (DB) OLAP systems (DWH)
Enable the real-time execution of large Usually involve querying many records
numbers of database transactions by large (even all records) in a database for
numbers of people analytical purposes
Require lightning-fast response times Require response times that are orders
of magnitude slower than those required by
OLTP
Modify small amounts of data Do not modify data at all; workloads are
frequently and usually involve a balance of usually read-intensive
reads and writes
Use indexed data to improve response Store data in columnar format to allow
times easy access to large numbers of records

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DBMS Training © PURSUIT SOFTWARE

Require frequent or concurrent Require far less frequent database


database backups backup
Require relatively little storage space Typically have significant storage space
I.e., 100MB to 1GB requirements, because they store large
amounts of historical data .i.e 100GB to 1TB
Usually run simple queries involving Run complex queries involving large
just one or a few records numbers of records.
Ex. All bank transactions made by a Ex. Bank transaction made at a
customer particular time.

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Key Terminologies

ETL (Extract Transform Load)

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DATA MART

Data warehouse

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