In: Accounting
150 WORDS REQUIREMENT!!!
Discussion how data warehouses are created and used. Please state your reasons in detail.
Data Warehouses:-
A data warehouse is a database designed to enable business intelligence activities: it exists to help users understand and enhance their organization's performance. It is designed for query and analysis rather than for transaction processing, and usually contains historical data derived from transaction data, but can include data from other sources. Data warehouses separate analysis workload from transaction workload and enable an organization to consolidate data from several sources. This helps in:
Maintaining historical records
Analyzing the data to gain a better understanding of the business and to improve the business
The information gathered in a warehouse can be used in any of the following domains −
Tuning Production Strategies − The product strategies can be well tuned by repositioning the products and managing the product portfolios by comparing the sales quarterly or yearly.
Customer Analysis − Customer analysis is done by analyzing the customer's buying preferences, buying time, budget cycles, etc.
Operations Analysis − Data warehousing also helps in customer relationship management, and making environmental corrections. The information also allows us to analyze business operations.
The following are the functions of data warehouse tools and utilities −
Data Extraction − Involves gathering data from multiple heterogeneous sources.
Data Cleaning − Involves finding and correcting the errors in data.
Data Transformation − Involves converting the data from legacy format to warehouse format.
Data Loading − Involves sorting, summarizing, consolidating, checking integrity, and building indices and partitions.
Refreshing − Involves updating from data sources to warehouse.