What is a Data Warehouse?
What is a Data Warehouse?
Have you ever thought about where all the information
generated across industries is kept? Every day, the world produces billions of
megabytes of data, and that number continues to rise. In this lesson, we’ll
explore how data warehouses store this information in a centralized location
and allow organizations to use it effectively.
Let’s dive straight in.
What is a Data Warehouse?
A Data Warehouse (DWH) is a key element of a business
intelligence ecosystem, designed to help users carry out analytical tasks and
examine large datasets. It brings together information from a variety of
sources—including transactional systems, application logs, and more. A DWH
often acts as the organization’s authoritative source of data.
You can think of it as a dedicated environment that supports
management by holding vast amounts of historical information. By evaluating
this data, a DWH enables companies to make more informed and strategic choices.
Characteristics Of a Data Warehouse:
Data warehouses are defined by four major characteristics,
each of which supports effective analysis and decision-making.
1. Subject-oriented
This means the data warehouse is organised around a
particular theme or area of interest, rather than day-to-day business
operations. It concentrates on a specific subject and provides a clear, focused
summary by filtering out irrelevant details that do not contribute to analysis.
2. Time-variant
A DWH stores data in relation to specific time periods.
Information is added at fixed intervals—such as hourly, weekly, or monthly—and
remains unchanged for the duration of that time slice. This allows analysts to
observe trends and track changes over time.
3. Non-volatile
Once data is written to the warehouse, it is not removed or
altered. Because the DWH is separate from operational systems, frequent updates
happening in day-to-day databases do not overwrite historical records. This
stability helps analysts understand past events clearly.
4. Integrated
Integration means that the warehouse brings together data
from multiple independent systems and standardizes it. Naming conventions,
formats, and measurements are aligned so that information appears consistent
and reduces duplication. For example, if the same item is labeled differently
in separate systems, the DWH unifies it under one consistent term.
Key Functions of a Data Warehouse:
A DWH acts as a central storage hub, managed by an
organization or service provider that maintains and safeguards the stored data.
It helps reduce storage and backup costs and preserves detailed transactional
information at varying levels of granularity. This supports different data
warehousing and analytical strategies.
Key functions include:
Data consolidations
Collecting information from all relevant sources, cleansing
it, and storing it in one place.
Data cleaning
Ensuring the accuracy and consistency of data by validating
and correcting issues.
Data integration
Merging data from multiple systems and presenting it as a
unified view to users.
Data extraction
Retrieving data from organizational sources so it can be
processed or analyzed.
Data transformation
Converting data into a format that is meaningful and ready
for analysis.
Data loading
Placing processed data into the warehouse or another storage
platform.
Refreshing
Updating existing data so the warehouse remains current.
Important: Data cleaning and transformation are
essential steps for delivering high-quality information and improving the
outcomes of data mining and analytical activities.
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