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The Importance of Data Warehousing

In: Business and Management

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The Importance of Data Warehousing
Brenda L Bach
The Digital Firm and Business Communications/BU 204-8A
November 15, 2014 Ron Rosalik

Kenneth and Jane Laudon state that a data warehouse is a database that stores current and historical data that can be of potential interest to decision makers throughout the corporation (Laudon, 2011. p.225). They go on to explain that the data can originate from many core operational transaction systems and could include data from Web site transactions (Laudon, 2011 p.225). Data warehouse extract current along with historical data from all operational systems within an organization. The data warehouse makes the data it collects and stores available to anyone and can be accessed and viewed as needed but cannot be altered in any manner. These data warehouses also provide a large range of ad hoc as well as analytical tools and graphical reports that represent the data. Companies often build enterprise data warehouses and either uses a central data warehouse or a smaller decentralized warehouse called a data mart to preserve the data they collect through its many sources. A data mart is a subset of a data warehouse that summarizes on a highly focused portion of the organization’s data and is placed within a separate data based for a very specific population of users. For example, a car dealer that deals with car sales as well as service may use a data mart to develop marketing and sales data that are specifically focused on the data of the customer such as what kind of car they own, how old the car is, and how many miles are on the car. By doing this the dealer can create ad campaigns that allow them to target customers based on what service they need or if they are ready to purchase a new car which raises their revenue and allows them to create a life ling customer by anticipating and catering to their needs. Interest in...

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